Online accommodation platform Roomi has laid off most of its staff after its latest funding round drew a blank.
It is reported that the company is letting 40-50 of its 63 employees go because a “round of funding it had anticipated fell through.” Roomi is based in the US but opened in London in May as it continued international expansion in an attempt to dominate the market. The company will continue to operate with its remaining staff, says founder Ajay Yadav.
Since starting up in 2015 Roomi has raised $17m in funding rounds, including $11m last November. The cash appears to have been used to buy up a number of competitors including Room Ring, Room.me, Symbi and Study Abroad Apartments – although there are also reports of some lavish spending on staff entertainment.
The developments at Roomi show just how vulnerable proptech can be when the next ‘funding round’ falls to come round. Only time will tell why investors were reluctant to provide more cash in this case.