Business

ShareChat Secures Nearly $49 Million from Key Investors: Report

SharingChat, a social media site, has secured $48.8 million from its current backers, Temasek and Lightspeed, through convertible debentures.

Citing ShareChat’s regulatory filings, startup news website Inc42 stated on Wednesday that the fundraising round will assist ShareChat in “navigating the path to profitability in the next 12 to 15 months.”

The report also stated that the company is supposedly in talks with investors for a larger equity investment round.

To date, ShareChat has raised more than $1 billion in investment.

It was reported in December of last year that ShareChat planned to raise as much as $65 million from current investors.

The investment round was expected to include participation from current investors like Temasek, Tiger Global, Google, Lightspeed Ventures, and others.

As part of a strategic reorganization, ShareChat let go of 200 workers in December, representing around 15% of its total employment.

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The decision, according to Mohalla Tech, the parent company of ShareChat and the short video entertainment app Moj, indicates the firm’s commitment to attaining profitability within the next four to six quarters and simplifying its cost base.

ShareChat’s sales increased by 62% to Rs 540.21 crore in FY23, but its net loss increased to Rs 4,064.3 crore from Rs 2,941.5 crore in FY22.