{"id":26753,"date":"2024-04-15T07:41:53","date_gmt":"2024-04-15T07:41:53","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/15\/sharechat-valuation-drops-over-60-to-under-2-billion-post-new-funding\/"},"modified":"2024-04-15T07:41:54","modified_gmt":"2024-04-15T07:41:54","slug":"sharechat-valuation-drops-over-60-to-under-2-billion-post-new-funding","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/15\/sharechat-valuation-drops-over-60-to-under-2-billion-post-new-funding\/","title":{"rendered":"Sharechat valuation drops over 60% to under $2 billion post new funding"},"content":{"rendered":"
\"Sharechat<\/div>


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Twitter and Google-backed homegrown social media firm Sharechat<\/a>\u2019s valuation has fallen by over 60% to below $2 billion from its peak of $5 billion in 2022, sources told ET. This comes as the company closed $49 million in debt financing through convertible debentures from existing investors \u2013 Lightspeed, Temasek, Alkeon Capital, Moore Strategic Ventures and HarbourVest. <\/p>\n

This is one of the steepest valuation cuts for a venture-funded startup after having raised around $1.75 billion so far. Byju\u2019s, PharmEasy and Udaan are among large startups that have seen steep valuation cuts in recent months.<\/p>\n

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A spokesperson for the company denied the development saying there is no \u2018ceiling provision made in the documentation\u2019. \u201cThe conversion will be linked to future valuation without any ceiling,\u201d the spokesperson added.<\/p>\n

For funding through convertible notes, a certain price range is determined for when the next round of cash infusion happens in a company. \u201cFor Sharechat, it\u2019s below $2 billion now. Whenever the next liquidity event happens it won’t be above this price,\u201d a participating investor in the latest funding round said.<\/p>\n

Mohalla Tech \u2013 which houses Sharechat and short-video app Moj \u2013 has been cutting operating costs over the past year in a bid to turn profitable amid intensifying competition from rivals like Instagram and YouTube\u2019s Shorts. Over the past one year, it has undertaken multiple rounds of layoffs to cut costs. Currently, it has more than 800 employees.<\/p>\n

According to the company, the new funding will help it invest further behind its Ad targeting technology as well as continuing the growth of consumer transactions business on Sharechat and Moj. It claimed Sharechat \u2013 as a standalone business \u2013 is operationally profitable, and Moj is expected to achieve operational profitability over the next few months.<\/p>\n

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\u201cTheir (investors) continued support in a challenging financial environment is a resounding vote of confidence for the path we have taken over the past years to move rapidly towards profitable growth. The new funds will be utilised to bolster our robust monetisation plans and propel us on our path to break-even and beyond,\u201d ShareChat CEO Ankush Sachdeva said in a statement.The company is estimated to have closed FY24 with a revenue of around Rs 600 crore. It is yet to file its audited FY24 earrings with the RoC.<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Twitter and Google-backed homegrown social media firm Sharechat\u2019s valuation has fallen by over 60% to below $2 billion from its peak of $5 billion in 2022, sources told ET. This comes as the company closed $49 million in debt financing through convertible debentures from existing investors \u2013 Lightspeed, Temasek, Alkeon Capital, Moore Strategic Ventures and […]<\/p>\n","protected":false},"author":2,"featured_media":26754,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/88591548.cms","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[1289,4942,2801,418,31641,31644,31643,31642,31640,3585],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/26753"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=26753"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/26753\/revisions"}],"predecessor-version":[{"id":26755,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/26753\/revisions\/26755"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/26754"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=26753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=26753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=26753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}