ShareChat adds fresh ESOPs worth $123M: Report

Mohalla Tech, the parent company of the vernacular social media platform ShareChat and short video entertainment app Moj, has reportedly added fresh employee stock option (ESOP) options for its employees under its existing ESOP plans.

According to an Entrackr report, The startup has added 260,000 new ESOPs, increasing the total ESOP pool to 846,300 options. 

The development comes shortly after ShareChat raised $49 million in debt from existing investors.

Why did ShareChat expand Its ESOP pool?

The primary objective behind expanding the ESOP pool is to promote employee ownership and to attract, retain, and motivate talent within the company.

Ankush Sachdeva, CEO and co-founder of ShareChat and Moj emphasized the importance of their employees in driving the company’s revenue growth.

“We wanted to recognize their efforts and incentivize our teams to continue this momentum and push the company to profitability in the next 4–5 quarters and then to an IPO," Sachdeva said.

ESOPs value

According to Fintrackr's estimates, the newly added ESOPs are valued at Rs 1,017 crore or $123 million.

The total value of ShareChat’s ESOP pool now stands at Rs 3,310 crore or $400 million. The board’s approval of this special resolution indicates a strong commitment to employee engagement and long-term company growth.

What Are the Financial Implications for ShareChat?

Despite raising around $1.8 billion from investors such as Alkeon Capital, Moore Strategic Ventures, and Tencent, ShareChat has faced challenges in generating substantial revenue.

In FY23, the company spent nearly Rs 4,000 crore to earn Rs 533 crore in revenue, marking one of the highest expense-to-revenue ratios among unicorns.

The financial strain led to a steep drop in valuation, with the company’s worth falling to less than $2 billion in a recent bridge round, down from $5 billion in June 2022.