Israeli startup Namogoo is laying off nearly 30 of its 70 employees, who have been summoned to a hearing, sources inform "Globes." This is the Herzliya-based company's third round of layoffs since 2022 as it undergoes organizational changes ahead of setting up AI activities. Since its founding the company has raised $70 million, once reaching a valuation of $190 million.
"Globes" has also learned that Namogoo is considering spinning off activities, either inside or outside the company. In any event the new activity will be managed by the company's founders Chemi Katz and Ohad Greenshpan. It will aim to develop advanced AI technology than can assess the intentions of Internet users on shopping websites. Namogoo currently develops technology that protects e-commerce websites from unauthorized software plugins that redirect their customers to other sites. Namogoo has also developed products to increase the purchase rate of customers.
Namogoo is now considering whether to open the new activity as a spin-off or to keep it in the company, while raising a financial round that will inject millions of dollars into the new activity, but not to support the existing activity. The AI activity will be based on existing technology in Namogoo. The company continues to generate stable revenue of an estimated $20 million in 2022.
In January 2023, Namogoo laid off 20 employees and prior to that in November 2022 the company fired 25 employees. Following all these waves of layoffs, including the latest round, the company has shrunk from 140 employees to just 40. Namogoo's investors include Blumberg Capital, GreatPoint Ventures, Inimiti Capital, Hanaco and other private investors.
No response has been forthcoming from the company.
Published by Globes, Israel business news - en.globes.co.il - on January 25, 2024.
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