ShareChat Loss Tops Rs 5,100 Crore In FY23
The company's accumulated loss as such grew to Rs 10,539.2 crore.
Mohalla Tech Pvt., the unicorn owner and operator of social network ShareChat and short video app Moj, has posted a significant widening of losses in a tough FY23 for the startup.
The Bengaluru-based firm posted consolidated revenue from operations of Rs 552.7 crore in FY23, up from Rs 346.9 crore in FY22. However, its loss widened to Rs 5,144.2 crore in FY23 from Rs 2,988.6 crore in FY22, according to data accessed via Tofler. With this, the company's accumulated loss grew to Rs 10,539.2 crore.
"The group is continuing to witness growth in revenue and the number of users on both platforms, ShareChat and Moj, in the initial stages of revenue generation... The group has enough liquidity to manage operations for the year ended March 31, 2024," it said in a statement alongside the earnings.
The fiscal year for ShareChat was marked by a massive fundraise and mass layoffs. In June 2022, it closed a large, two-tranche funding round, through which it raised a total of $520 million, or around Rs 4,230 crore, bringing the valuation to $5 billion, or around Rs 40,680 crore. In the second tranche, closed in June, the company had raised $255 million, or Rs 2,000 crore, from Google, Times Group, and Temasek.
However, about seven months later, it laid off about 20% of its workforce, equating to about 500 employees. The company had said it needed to "prepare to sustain" through "several external macro factors that impact the cost and availability of capital".