ShareChat Raises $50 Million Debt, Says Nearing Profitability
ShareChat has cut its monthly burn by 90% and doubled revenues and expects to turn profitable in the next 12 months, CEO Ankush Sachdeva said.
Mohalla Tech Pvt., the unicorn owner and operator of social network ShareChat and short video app Moj, has raised another $50 million from existing investors, to steady its ship after two years of scaling down.
In a post on LinkedIn, Chief Executive Officer Ankush Sachdeva said the company has closed the investment round with support from Lightspeed, Temasek and other investors.
"Last two years have been transformative for us at ShareChat, as we shifted our focus from solely driving user growth to building our revenue generation capabilities and advancing towards sustainable growth," Sachdeva wrote.
ShareChat has cut its monthly burn by 90% and doubled revenues, he said. "We hit our first milestone of making the ShareChat product profitable in October 2023. We are now expecting the Moj product to be profitable by June 2024 and overall company being profitable in next 12 months."
In December last year, the company underwent restructuring and laid off about 15% of its workforce. The Bengaluru-based firm had a tough FY23, posting a consolidated revenue from operations of Rs 552.7 crore in FY23 on a loss that widened to Rs 5,144.2 crore in FY23 from Rs 2,988.6 crore in FY22, according to data accessed via Tofler.
In January 2023, the company's troubles came to the fore with two of its co-founders, Bhanu Pratap Singh and Farid Ahsan, stepping down and the elimination of 20% of its workforce, equating to about 500 employees.
