Social media platform ShareChat recently secured $48.8 million through convertible debentures from its existing investors, which notably include Temasek and Lightspeed.
According to a report by startup news outlet Inc42, referencing the company's regulatory filings, this infusion of capital is aimed at aiding ShareChat in its journey towards profitability within the next 12 to 15 months.
Moreover, ShareChat is reportedly engaged in discussions with investors regarding a larger equity funding round, indicating its ongoing efforts to bolster its financial standing.
Cumulatively, ShareChat has amassed over $1 billion in funding thus far, showcasing significant investor confidence in its prospects.
Notably, reports from December had hinted at ShareChat's plans to secure up to $65 million from its existing investors, including heavyweights like Temasek, Tiger Global, Google, and Lightspeed Ventures.
December also saw ShareChat undertake strategic restructuring, resulting in the reduction of 200 employees, equivalent to about 15% of its workforce. This move, as emphasized by Mohalla Tech, the parent company of ShareChat and short video app Moj, underscores the firm's commitment to optimizing its cost structure and attaining profitability within the next 4-6 quarters.
Despite facing losses, ShareChat witnessed a notable increase in revenue, which surged by 62% to Rs 540.21 crore in FY23 from Rs 2,941.5 crore in FY22, reflecting its resilience and growth trajectory amidst evolving market dynamics.
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