Social media app learnt that 95% of its users don’t exist

IRL, a messaging app, recently conducted an internal investigation and found an unpleasant surprise – it turns out that approximately 95% of the app’s reported 20 million users didn’t even exist. As a response, even despite having raised more than $200 million from VCs, the company decided to cease its operations.

IRL had the potential to resonate among Gen Z users, as they gradually reduce their usage of Facebook. That being said, the app faced internal challenges that became more evident following the successful completion of its Series C.

In the previous year, IRL downsized its 25-person team by approximately 25%. These reductions were unexpected, especially considering that IRL had significantly increased its team size in the preceding year.

In last year’s message addressed to the employees, the former CEO and founder Abraham Shafi urged the team to embrace adaptation and maintain discipline, drawing attention to the fact that WhatsApp managed to reach 450 million users with a team consisting of only 55 individuals.

Doubts arose among IRL employees regarding Shafi’s claims that the app had 20 million monthly active users. Soon after, the Securities and Exchange Commission (SEC) initiated an investigation into potential violations of securities laws by IRL. In response to these developments, IRL’s board of directors took action by suspending Shafi and installing an interim CEO to assume the leadership role.