ShareChat, the Google-backed short-video platform, is in pursuit of fresh investments amounting to approximately USD 50 million, aiming to value the social media company at USD 2.2 billion. This marks a significant 55 per cent drop from its valuation last year.
According to media reports, the company is panning a bridge round of primary capital. Existing investors are expected to contribute to this funding round, primarily through compulsorily convertible preference shares (CCPS). Additionally, early investors are considering selling secondary stakes, which could lead to further valuation reductions.
ShareChat, which boasts Google, Temasek and Times Group among its investors, has already secured over USD 1.43 billion in funding. Despite experiencing a 4.3 times increase in total revenue to Rs 419.2 crore in FY22, primarily driven by operating revenue, the company reported increased losses, reaching to Rs 2,988.6 crore in the same fiscal year.
The startup has faced operational challenges in recent times, conducting layoffs and shutting down various business verticals to prioritise profitability. This included the closure of its gaming division, Jeet11, and scaling down social commerce, live commerce and fact-checking efforts.
Two of ShareChat’s co-founders, CTO Bhanu Pratap Singh and COO Farid Ahsan, also stepped downed from active roles during this period.
Founded in 2015, ShareChat initially entered the short video format market after TikTok’s ban in 2020. It now claims over 325 million monthly active users across its platforms.
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