Mohalla Tech, the parent company of vernacular social media platform ShareChat and short video app Moj, has successfully expanded its latest debt round to $65 million. This increase includes a $16 million infusion from Singapore-based EDBI.
Earlier in April, ShareChat secured approximately $49 million in debt financing from existing investors such as Temasek, Lightspeed, and others. The company’s valuation, however, has significantly dropped from $5 billion in June 2022 to below $2 billion.
The new funds will be directed towards enhancing the company’s technology infrastructure and advancing monetization features for its consumer transactions.
In related news, ShareChat has recently reduced its workforce by 5% as part of a mid-year performance review, following previous layoffs of 700 employees in 2023. Despite these cutbacks, the company stated it is actively hiring for various roles.
ShareChat has raised around $1.8 billion to date from investors including Twitter (now X), Alkeon Capital, and Tencent. The company reports that while ShareChat has achieved operational profitability, Moj is nearing break-even. Both platforms serve over 325 million users collectively.
For FY23, ShareChat incurred a significant loss of Rs 3,241 crore on revenue of Rs 533 crore, largely due to a write-off related to the acquisition of competitor MxTakaTak for approximately $700 million.
