Indian gaming unicorn MPL lays off 100 staff, exits Indonesia

Mobile Premier League (MPL), an India-based online gaming and esports unicorn, is letting go of nearly 10% of its total staff as the company gets ready to exit Indonesia, according to an internal email to employees reviewed by Tech in Asia.

MPL confirmed the layoffs to Tech in Asia.

Photo credit: Mobile Premier League

The company’s decision to cut its workforce is part of its efforts to reduce costs to maintain financial performance, sources familiar with the matter told Tech in Asia.

Nearly 30% of the total staff laid off were from Indonesia, sources added.

MPL is looking to exit the Indonesian market and shift its focus toward the US, Europe, and India, which the company calls “high-ticket” markets.

An internal email sent by MPL co-founders Sai Srinivas and Shubh Malhotra said that the estimates for returns from Indonesia were “several multiples” lower than that of India and even its nascent US business.

“The decision to wind down [in] Indonesia, while painful in the short term, is the right thing to do for the long-term success of our company,” the email said. “It is time to make the difficult decision to redeploy our resources in other parts of our business to ensure our long-term health and success as a company.”

However, MPL said it will offer complete severance packages and extended health insurance until October 2022 to all axed employees. Employee share option plan holders can also hold on to their options for another 10 years, the firm said.

See also: Indonesia’s Zenius lays off 200+ employees

In 2019, the company launched its Indonesia operations to give users in the region access to games in tournament and multiplayer formats.

While MPL forayed into the US in July 2021, it entered the European market with the acquisition of German gaming firm GameDuell this year. MPL is also making efforts to expand its presence in India. Earlier this month, it launched Mayhem Studios, a gaming studio for the development of AAA mobile games for domestic and global markets.

Launched in 2018, MPL hit unicorn status in September 2021 after raising nearly US$150 million in a series E round, which bumped the firm’s valuation to US$2.3 billion. The esports firm counts the likes of Tiger Global Management and Sequoia Capital as its investors.

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