Snap CEO blasted for allegedly calling India ‘poor’
Snapchat’s Evan Spiegel faced backlash Monday after the plaintiff in a lawsuit claimed the CEO did not want to expand his popular Snapchat app into “poor countries” such as India.
The comments were detailed in a lawsuit by former employee Anthony Pompliano, who claims he was fired — three weeks after joining the company — for raising concerns the company was misleading investors ahead of Snap’s IPO launch. The original filing was heavily redacted when filed in Los Angeles Superior Court in January, but Pompliano’s claims about Spiegel’s statements were among portions unsealed.
According to the complaint, Pompliano — who left Facebook to help with growth and engagement at Snapchat — describes a tense meeting involving Spiegel to discuss how to grow audience.
Pompliano claims he told Spiegel Snapchat’s international user metrics were “very low,” and ad- vised on ways to bolster growth in those areas. The complaint alleges Spiegel cut him off, saying “this app is only for rich people. I don’t want to expand into poor countries like India and Spain.”
Snap Inc. said the claims were made by a disgruntled former employee. “We are grateful for our Snapchat community in India and around the world,” a statement from Snap reads.
The alleged comments sparked anger from users in India, prompting the launch of the hashtag #boycottsnapchat on Twitter. It also generated a string of one-star reviews on Apple’s App Store and Google Play.
Snap Inc. last month launched its initial public offering, the biggest for a U.S.-based tech company since Facebook. Shares opened at $24 and peaked at $29.44 in the first days of trading on the New York Stock Exchange. Monday, Snap shares closed at $19.94.
Snap says more than 150 million people use Snapchat daily, and watch more than 10 billion videos. Research firm eMarketer projects Snapchat will make $770 million in advertising revenue in the U.S. this year.