FanClash, a Delhi NCR-based fantasy esports startup backed by Sequoia, Polygon, and Info Edge, has laid off approximately 100 employees, representing about 75% of its workforce, in three rounds this year. The primary reason for these significant layoffs is the Indian government's ban on the popular battle royale game BGMI in July last year, which had been a major revenue driver, especially among users from Tier-2 cities. This disruption forced the company to restructure, deprioritize non-core streams like the fantasy Web3 platform FanGuild and fan engagement platform FanSpace, and pivot its business model. The layoffs occurred during a period of low esports tournament activity, further impacting daily active users. Affected employees received a two-month salary as severance.
