IRL users aren’t real. The Information alleged that 95% of IRL’s 20 million members were “automated or from bots” after an internal inquiry by the board. IRL closed after raising over $200 million in venture money.
IRL may organize events for Gen Z, who are using Facebook less. The company’s internal issues became increasingly apparent after financing its SoftBank-led $170 million Series C round at $1.17 billion.
IRL let 25 staff go last year. These cuts surprised IRL, which had increased its headcount the year before. According to TechCrunch, former WhatsApp CEO, and founder Abraham Shafi advised employees to “adapt” and “be disciplined” after the company reached 450 million users with 55 people.
“Becoming one of these iconic, impactful companies is like winning an Olympic gold. Shafi’s memo was filled with absurd comparisons. “Like the Olympics, most people don’t want to be Olympians. Not everyone will follow our route. This culture is for people who desire to test their limitations and discover their potential.”
Shafi said the company had “more than enough cash to last well into 2024” in the memo. IRL employees claimed to TechCrunch the company has over $100 million in the bank. IRL will restore shareholders’ capital, according to a business representative.
During these layoffs, IRL employees began doubting Shafi’s claim that the app had 20 million monthly active users, and the SEC began investigating IRL for securities violations. The IRL board suspended Shafi and named an acting CEO in April.