IRL’s CEO Steps Down After Allegation of Inflated User Numbers

Abraham Shafi has stepped down as CEO of messaging app IRL following allegations that the company used bots to inflate the users it reported publicly and to investors, according to a person with direct knowledge.

The abrupt change happened after The Information reported a former employee alleged he was fired after expressing concern that a high percentage of IRL’s 20 million claimed users were bots. He researched the matter inside the company, which raised around $200 million from investors including SoftBank Vision Fund and Founders Fund, after The Information’s May 2022 report that other employees had expressed similar concerns. The Securities and Exchange Commission has been investigating whether the company violated securities laws, including in the way the startup described its business performance during talks with investors.