ShareChat Raises Additional $16 Million From EDBI, Cuts 5% Workforce
The company claimed that the ShareChat app is operationally profitable for the past several months, while the Moj app is close to operating breakeven.
Mohalla Tech Pvt., the unicorn owner and operator of social network ShareChat and short video app Moj, has raised another $16 million from a new Singapore-based investor and cut workforce further, as the company seeks to stabilise its financials.
The company has extended its convertible debentures round to accommodate new investment from EDBI, a Singapore-based global investor.
The round being referred to is the $49-million round ShareChat raised in April this year led by existing investors Lightspeed, Temasek, Alkeon Capital, Moore Strategic Ventures and HarbourVest, among others.
"These additional funds will be utilised to invest further in the company's advertising tech stack and expand the consumer transactions businesses, with investment in newer monetisation features for the creator ecosystem," it said in a statement.
Further, the company claimed that the ShareChat app is operationally profitable for the past several months, while the Moj app is close to operating breakeven.
Additionally, the company, as part of its mid-year review, has cut workforce further. "This accounts for less than 5% of our workforce. We have a number of open positions and we continue looking for high quality talent across functions," it said.
In December last year, the company underwent restructuring and laid off about 15% of its workforce. The Bengaluru-based firm had a tough FY23, posting a consolidated revenue from operations of Rs 552.7 crore in FY23, on a loss that widened to Rs 5,144.2 crore in fiscal 2023 from Rs 2,988.6 crore in FY22, according to data accessed via Tofler.
In January 2023, the company's troubles came to the fore with two of its co-founders, Bhanu Pratap Singh and Farid Ahsan, stepping down and the elimination of 20% of its workforce, equating to about 500 employees.
