ShareChat cuts 200 jobs; valuation slashed to $1.5 billion: Reports

ShareChat Layoffs 2023: Social networking company Sharechat's valuation has been slashed from $4.9 billion earlier to below $1.5 billion as per Techcrunch.

Sharechat is in the midst of raising $50 million funding at this lowered valuation. Backed by Google and Tamasek, ShareChat has amassed $1.4 billion in funding over the past eight years.

ShareChat 2nd Round of Layoffs 2023

Meanwhile, in a second round of layoffs this year, the loss-making startup has let go of about 200 employees, that's 15% of its workforce. The layoffs aim to streamline expenses, targeting profitability within the next 4-6 quarters.

Earlier in January, the company downsized by 20%, affecting around 500 workers. Concurrently, co-founders Bhanu Pratap Singh and Farid Ahsan stepped down from executive roles.

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Investors include Tiger Global, Snap, Twitter, Lightspeed, SAIF Partners (now Elevation Capital), and industry leaders like Pawan Munjal and Ajay Shridhar Shriram. Previously valued at $1 billion, earning unicorn status in 2021, ShareChat raised $913 million, the highest funding among 2021's newly minted unicorns.

However, despite launching new initiatives, such as a fantasy sports app and live audio chat service, its profitability remains a challenge. In the financial year ending March 31, revenue remained below $65 million.

With a workforce of 2,200 before January's layoffs, the current round is expected to reduce employee numbers to approximately 1,500.