Exclusive : LocalOye Lays Off Most Of Its Employees; On The Verge Of Shutdown? [Updated]

The company is currently running with a staff of only 10-20 people. According to an ex employee, the fall for this startup is mainly because of its work culture which is built on “work hard and party harder”. LocalOye had raised $5 million in series A funding from Tiger Global and Lightspeed Ventures.

LocalOye has laid off majority of its employees and the startup is almost on the verge of shutting down, according to sources.

The company is currently running  with a staff of only 10-20 people.

A mobile marketplace for hiring local service professionals, LocalOye in November had shifted to Bangalore from Mumbai. They had announced a restructuring plan and laid off 60 employees mainly from its call servicing unit.

According to an ex employee, the fall for this startup is mainly because of its work culture which is built on “work hard and party harder.”

An employee on Quora explained the perks of working at LocalOye and said, “You get to drink with the founder, you get to learn multitasking as you have lots of work.”

Our parties don’t end even if the evening does or the night or the day”. “The Poker nights, the Hangover nights, the T-shirt tearing nights, the ass on fire tradition, singing bollywood songs in a hilarious english accent. Working 12 hours a day & partying the next 12 hours.

The Reality Check

The only problem with localoye was they had money, they just did not know how to make the best of it.
we all make mistakes right? Arent we all immature before we make mistakes? Happens, isn’t it?
Just that this one costed 31 crores

We all have lost our jobs, Someone lost a whole fucking company, and may be a dream too.
So lets stop complaining Locos, Its no end of the world and neither of our careers. And definitely Localoye have not “RUINED” our lives, I mean come on!
So lets get into a startup again and build it!

The Honeymoon …and..

The very first few days of funding was just about partying. The entire tech, marketing and hr team used to sleep in the ceo’s house. They would drink and smoke the whole day and were just blowing away investor’s money. The servicing and the onboarding team was the only team working to achieve the company goals, but we were never treated well.

All recruitment of the company was done at Prost with the CEO smoking on our face, and abusing us. Since this was a Tiger company, we thought that the ceo must be a cool person for his attitude.

.We know that the company has run out of cash. But we have no idea where we are headed or what our future is. We haven’t seen the CEO in the past 3 months except 1 day when he came (on that day also, when we asked what our future was. He replied saying that there is alcohol in life because of which nobody needn’t worry about anything). We have nobody we can speak with. Jobs aren’t available in the market. Because of being in office, we are not able to spend time looking for jobs either. Though we never see most people in office, we are shouted at for not coming to work even for a single day. We need clarity. No ceo, no hr is available in office.

It is a sincere appeal to the investors to help us. You have left us helpless. Please show some care. You are responsible for funding this fucker Aditya who has no mercy for us. We need help. And we don’t know where to go. Don’t make us lose trust in startups or tiger. [source]

No responses were received when NextBigWhat team sent email queries to LocalOye.

LocalOye had raised $5 million in series A funding from Tiger Global and Lightspeed Ventures. The raised capital has clearly been well spent on team building and may be little too much, than on building a valuable product.

Founder: How about spending some on customer acquisition and technology?

Update from LocalOye

WE ARE not shutting down, not even close to it 🙂 These are tough times for us, definitely. But we will continue ploughing forward. We have been at it for 2.5 years now and this is not the first time we have faced a crunch situation.

As per our previous announcement, we are in a restructuring phase. We continue to focus on automation, monetization and are now working on increasing our overall leads through our B2B alliances, instead of direct customer acquisition.  We will share more details once our restructuring process is over. [Aditya, cofounder and CEO of LocalOye.]

1 comment
  1. Dear Readers, I am pained to read about LocalOye’s current plight. However such incidents affect newer startups like ours, which is founded by mature and experienced individuals who think twice before spending even a dime. I remember having interviewed few LocalOye employees, just before they got the hint about imminent closure. Since they got a taste of luxurious lifestyle and extravagant pay at LocalOye they were not interested in low key startups like VYDIK.com. Reason being no luxurious office; office not located in the so called “posh IT locality”; our pay is fixed + outcome based to ensure better results and productivity whereas they wanted a higher fixed pay only. In short the pampering given to employees by these neo age startups funded by VCs has spoilt the recruitment market. People want luxurious lifestyle more than quality of work. Such incidents will only make us believe that the start up bubble is going to burst very soon. Hope better sense prevails among the Founders and VCs of these neo age “luxurious” startups going the “Kingfisher Airlines” way !!

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