Digu.com, one of China’s largest LBS service is reducing 70% of its employees due to uncertain Series B round of funding and glimmer profitability prospects, according to people familiar with the matter.

Li Song, founder of Digu.com admitted that the company is restructuring, but denied the funding dilemma. “There’s no clear business model for mobile internet except for mobile gaming, so we’ve geared up for a long march and we’re not giving it up. What we’re doing now is to get as many users as we could.”

One alleged Digu staff disclosed that after the layoff, headcount of the Shenzhen-based company would down to about 40 from more than 110. According to her, Digu which has been been downsizing since July of this year has pivoted several times since its founding, from LBS to photo sharing and now photo printing, lacking of clear positioning leads Digu to the current funding trouble since venture capitals can’t get a clear picture of the company and are hesitating in investing.

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Ben Jiang

Listener of startups, writer on tech. Maker of things, dreamer by choice.