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ShareChat raises Rs 407 crore in debt months after reporting a loss of over Rs 4,000 crore: Report

ISN Team
New Update
ShareChat ceo

Sharechat CEO Ankush Sachdeva

Mohalla Tech, the parent company of social media platform ShareChat and shot video app Moj, has reportedly raised nearly $49 million or Rs 407 crore in debt from its existing investors, Inc42 reported, citing the company regulatory filings.  

The report comes at a critical time when the social media platform was in the process of raising funds at a lower valuation than before. The company, which was previously valued at $5 billion, is navigating through a challenging phase, aiming for profitability amidst a tough funding environment for tech startups.

Who led the debt round?

The debt financing saw participation from a consortium of existing investors, including Temasek, Lightspeed, HarbourVest, Moore Strategic, Rimco, Alkeon Capital, and Tencent, the report said. 


The startup is backed by notable investors, including Google, Times Internet, The Times Group, Rimco Investments HarbourVest Partners, SAIF Partners, Shunwei Capital, and US-based Tiger Global.  So far, it has raised over $1.7 billion in a total of sixteen funding rounds, as per data available on Crunchbase.

Company's cost-cutting measures 

Needless to say, a few Indian startups, including some elite ones, are grappling with financial challenges. ShareChat is among them, having last reported a 38% increase in its losses to Rs 4,064 crore in FY23.

With a high expense-to-revenue ratio, ShareChat is in a critical phase of recalibrating its business model and strategies to ensure profitability in the foreseeable future.

It's worth mentioning that the startup had implemented several cost-cutting measures, including laying off approximately 800 employees in three separate rounds of layoffs. Additionally, it has discontinued some of its services, such as the fantasy app platform Jeet11 and its live commerce business, in an effort to reduce its burn rate and stem losses.