What’s going on with Kumu?

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Hello reader,

Livestreaming is a pretty big phenomenon around the world. I’m fond of watching livestreams from my favorite creators and brands, whether it’s a K-pop idol chatting about their day or a fashion label talking about their latest collection.

There’s something about that real-time connection and interaction that you can’t get through any other medium. As a result, competition in the livestreaming world can get pretty stiff – not just between creators, but also between the platforms they stream on.

You’ve got livestreaming functionalities on popular social media apps – Facebook Live, Instagram Live, and TikTok Live, just to name a few – and then you’ve got dedicated livestreaming platforms like Bigo and Kumu.

Today, we’re taking a look at Kumu. The Philippines-based livestreaming app is going through some hard times, having seen three rounds of layoffs and a spate of resignations. We go deeper with these premium stories.

Today we look at:

• The struggles that Kumu’s faced
• The latest fundraise of Atome’s parent company
• Other newsy highlights such as Crypto.com’s AI-powered chatbot and BharatPe’s latest acquisition

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Premium summary

The struggles of a livestreaming app

Kumu is facing some difficult times. It has seen its headcount reduced by nearly half and it’s dealing with changes in user behavior and pressure from competitors. Here’s a look at what’s going on at the firm.

• The question of money: Kumu made a lot of big bets that didn’t turn out well for the company. It sought to create premium intellectual properties through content partnerships and it recruited top livestreaming influencers for its user acquisition efforts.The firm also allegedly spent lavishly on events and gifts for employees even in the wake of layoffs, which the company denies.
• Silos and separation: Ex-employees also allege that the company struggled with a lack of transparency. Sources point to poor communication between executives and employees about business plans and teams working in silos. Moreover, there were allegations of confusion among staff about Kumu’s direction, especially after it decided to pivot to a more sustainable business model.
• Battle of the livestream apps: The firm has seen its downloads and consumer spend decline since the start of 2022 amid stiff competition from the likes of TikTok. However, Kumu says it is working toward profitability and is reworking its growth strategy in line with this.

Read more: Kumu’s struggles: Layoffs, departures slash workforce by almost half

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