Social media platform ShareChat has laid off around 200 employees, or about 15% of its workforce, as part of strategic restructuring. In a statement to CNBC-TV18, the company said the decision reflects its commitment to streamlining its cost base and achieving profitability within the next 4-6 quarters.
“In alignment with our strategic vision, the company undertook a comprehensive restructuring effort to streamline operations, enhance productivity, and position the company for sustainable growth. As a result, the organisation has moved to a flatter org structure and prioritised product initiatives that resulted in a reduction in team sizes by roughly 15%,” Mohalla Tech, the parent company of ShareChat and short video entertainment app Moj, said in the statement.
“ShareChat remains committed to its core values and the well-being of its employees throughout this process,” it added.
The move comes after the company laid off around 600 employees in a similar cost-cutting move earlier this year, as co-founders Bhanu Pratap Singh and Farid Ahsan stepped down. The company was last valued at $5 billion after raising $255 million from Google and Temasek in June last year. The firm is also backed by the likes of X (formerly Twitter) and Lightspeed.
Meanwhile, a report by TechCrunch suggests that ShareChat is in final stages to raise about $50 million that brings down its valuation to below $1.5 billion. Existing investors including Temasek and Tencent are reportedly among the investors in advanced stages of talks in the new round, according to the report.
ShareChat’s revenue increase by 59% to ₹553 crore in FY23 from the previous year, according to data from Tofler.
The firm’s net losses jumped 72% from ₹2,989 crore in FY22 to ₹5,144 crore in FY23.
Meanwhile, it’s parent Mohalla Tech saw its losses swell over 38% to ₹4,064 crore during FY23 as compared to ₹2,941 crore in FY22. It posted a 62% increase in its revenue from operations to ₹540.21 crore from ₹332.69 crore in FY22.
(Edited by : Anand Singha)
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