Swedish Startup Space

Founders Confirm That Hyped Truecaller Lays Off Employees

Written by on December 11, 2015

The fast growing phone book app are making cutbacks and fires employees.

On Friday Breakit received information about lay offs at Truecaller. The rumors have now been confirmed by Truecaller’s CEO and co-founder Alan Mamedi.

“We’ve downsized the number of consultants and a few full-time employees at the company”, he writes to Breakit in a text message.

In the same message he downplays the changes and claims that “this is a natural development in a fast growing startup like us”.

One employee, who asked to not be named, says the following to Breakit.

“It’s not a great message to receive, I got the notice earlier this week. I don’t know how many are affected but it’s a large number. I don’t know the details but it’s supposedly som kind of financial issues”, the person says.

Truecaller, which has developed a phone book app with more than 200 million users, is one of Europe’s hottest startups. Earlier this year Techcrunch reported that the company is valued at over $1 billion in the next venture capital round.

Until now the company has been fully focused on growing its user base.

Last year the Truecaller’s revenue was only $800.000 and the company made a net loss of more than $10 million.

When Breakit interviewed Alan Mamedi earlier this year he said that “growth is still a priority. Revenue isn’t our primary focus at this time”.

A year ago Truecaller rasied $60 million at a valuation of $300 million with money from the famous VC firm Kleiner Perkins Caufield & Byers and Skype-founder Niklas Zennströms VC-firm Atomico.

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