Driven by Sustainability Strategy, Livestream App Kumu Sees Profitability by End-2023
Following its shift back to user-generated content in 2022, Filipino startup Kumu continues to thrive amidst the constantly evolving digital entertainment industry. The livestream app’s recent efforts to prioritize sustainability over rapid growth has put it on a path to profitability in 2023.
Kumu experienced immense growth since raising its Series A and proving the sustainability of its business model in 2020. This success led the company to invest in high-growth initiatives and large content bets, such as Pinoy Big Brother, to bring more engaged entertainment experiences to the platform—a strategic move proven successful in a time the world was still under lockdown.
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In 2021, Esquire Philippines ranked Kumu one of the top revenue-generating startups in the Philippines, based on publicly available data. At this time, the company also successfully completed its Series C funding round that brought the company into 2022 with its sights set on continued growth.
However, as the world transitioned towards a post-COVID reality in 2022, coupled with the threat of a recession and increased inflation, Kumu was met with new challenges that impacted the spending behavior of their paying users.
In a brief statement shared with Esquire Philippines on Friday (April 7), Kumu said it has since “undergone a significant restructuring aimed at prioritizing sustainability over growth-at-all-costs” in order to navigate these poor market conditions. As a result, the company prioritized business decisions to optimize operations and further develop its homegrown content creators.
Despite the difficulties brought on by the pandemic, Kumu said it remains unwavering in its commitment to providing exceptional products and user experiences to its community. In addition to its investment in user-generated content, Kumu also made significant strides in other areas of digital entertainment such as gaming, comics, and more.
"We're hopeful that our strategic shift towards sustainability will ensure that we continue to provide the high-quality product and exceptional user experience that our community has come to expect from us," Kumu founder and CEO Roland Ros said.
Although Kumu had to make the difficult decision to let go of certain business segments and departments in the process, the company implemented a thorough system to ensure its alumni had the right resources and support necessary to move on. The company provided extended healthcare coverage for employees and dependents, job placement assistance, access to mental health resources and wellness tools, and above-market retrenchment packages. Kumu remains steadfast in assisting those affected by changes while focusing on building a company equipped to outlast poor market conditions.
"We are incredibly proud of what we have accomplished at Kumu over the past year," said Kumu president Rexy Dorado. "Our renewed focus on sustainability and profitability has allowed us to invest in the areas of digital entertainment where we see the most potential, including user-generated content, gaming, and audio streaming. We are excited to continue building a formidable digital entertainment company that empowers and amplifies the voices of Filipinos around the world."
"By committing to sustainability, we are positioning ourselves to take on our long-term ambition. We embarked on this journey with a mission to amplify Filipino creators and communities–and to realize that goal in its full glory, we are ensuring we are around for the long haul." highlights Dorado.
Kumu's commitment to its employees and the community it serves is at the heart of its strategic shift towards sustainability. By prioritizing profitability and long-term growth, Kumu is well-positioned to continue its impressive growth trajectory in the coming years.
