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ShareChat is in final stage of deliberation to secure about $ 50 million in new funding that trims the startup ’s valuation to as low as below $ 1.5 billion , accord to two source familiar with the matter .
Existing backers include Temasek and Tencent are among the investors in advance stage of talks to put in the new circle , the sources sound out , requesting anonymity as the matter is private . ShareChat has had discussions with several possible Modern investors this year , but many have balked at the opportunity due to the inauguration ’s high valuation prospect proportional to its currently modest revenue , according to one of the possible investors with whom the inauguration plight .
The terms of the talking , which are still on-going so they may slightly exchange , currently prise ShareChat below $ 1.5 billion , the sources said , a steep drop from the $ 4.9 billion evaluation at which ShareChat raised funding too soon last year .
A unit of ammunition could finalise as early as the end of the yr . ShareChat , which arrogate to have more than 400 million users but fewer than 40 million , per Sensor Tower , said the valuation figures were “ grossly inaccurate . ” Temasek declined to gloss , cite its policy .
The loss - making Bengaluru - headquartered startup — whichoperates a social networkand counts X , Snap and Tiger Global among its backer — has raised more than $ 1.4 billion to day of the month , according to venture intelligence program Tracxn .
ShareChat ’s fail stake on the Indian short - video quad amid the TikTok ban has forced a Leigh Hunt for funds and prompt the markdown . ( In later 2020 and early 2021 , X search purchasing ShareChat in a $ 2 billion mass , TechCrunchexclusively reported in the beginning . )
ShareChat , which launched the short - video app Moj in mid-2020 , double down on the category byacquiring MX TakaTak , a video app from Times Internet ’s portfolio , for over $ 600 million ; however industry analyst say YouTube and Instagram fill the TikTok nihility as creators transmigrate to those far larger platforms .
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Eight - yr - old ShareChat , whose two co - founders left in the first place this year to set up a new startup , has been beat to find way to turn its taxation and trim expenses . It has attempted a serial of initiatives , includinga fantasy sports appand a live sound chat service . But at the fiscal yr ending March , its tax revenue remained below$65 million . It plans to reduce its workforce by another 15 % to 20 % , or 200 - 300 people , in the add up weeks , according to another person familiar with the matter . This would be the third layoff from the startup in one year . ( After the publishing of this chronicle , ShareChat confirmed the layoff , saying about 200 chore were being eliminated . )
Numerous investor are writing down the worth of their holdings in startups globally amid the protracted slowdown in economy that has also cut short the valuations of nearly every public technical school business firm . Prosus recentlymarked down the valuation of Byju ’s to below $ 3 billion , down from $ 22 billion in early 2022 . Byju ’s has raise more than $ 5 billion in equity and via debt over the years .
