Mohalla Tech, the parent company of vernacular social media platform ShareChat and short video entertainment app Moj, has expanded its debt round with an additional $16 million infusion from Singapore-based EDBI, bringing the total to $65 million. This latest funding comes on top of the $49 million raised in April from existing investors including Temasek, Lightspeed, HarbourVest, Moore Strategic, Rimco, and Alkeon.
Valuation and Utilization of Funds ShareChat’s valuation has seen a significant drop, falling from $5 billion during its last fundraising in June 2022 to under $2 billion currently. The newly acquired funds will be allocated towards enhancing the company’s technology stack and expanding its consumer transactions business through investment in new monetization features, according to a company press release.
Workforce Reduction In a mid-year performance review, ShareChat has laid off 5% of its workforce. This comes after a series of cost-cutting measures implemented in 2023, which saw the termination of 700 employees across two phases. A company spokesperson commented, “…some employees are impacted based on performance. This accounts for less than 5% of our workforce. We have several open positions and we continue looking for high-quality talent across functions.”
Funding History and User Base To date, ShareChat has raised approximately $1.8 billion from investors, including Twitter (now X), Alkeon Capital, Moore Strategic Ventures, and Tencent. The platform boasts operational profitability for the past several months, while Moj is nearing operating break-even. Combined, the apps serve over 325 million users.
Financial Performance The Ankush Sachdeva-led firm has yet to file its FY24 financials. In FY23, ShareChat spent nearly Rs 4,000 crore to generate Rs 533 crore in revenue, recording a net loss of Rs 3,241 crore. The increase in losses was mainly due to the write-off following the acquisition of Moj’s competitor, MxTakaTak. ShareChat spent nearly $700 million in cash and stock to acquire the Times Internet-backed company.
As ShareChat navigates these financial and operational challenges, the company remains focused on scaling its platforms and enhancing its monetization strategies to sustain growth and profitability
