New Delhi: Social media platform ShareChat has laid off 200 employees or about 15 per cent of its workforce as part of a strategic restructuring.
Mohalla Tech, parent company of sharechat and short video entertainment app Moj, said the decision reflects the company’s commitment to streamline its cost base and achieve profitability within the next 4-6 quarters.
“ShareChat today announced a strategic restructuring as part of its annual plan for 2024,” a company spokesperson said in a statement.
“In line with our strategic vision, the company conducted a comprehensive restructuring effort to streamline operations, enhance productivity and position the company for sustainable growth,” the company said.
As a result, “the organization has moved toward a flat organization structure and prioritized product initiatives resulting in a reduction in team size by approximately 15 percent”, the spokesperson said.
Meanwhile, ShareChat is reportedly in the final stages of raising about $50 million, bringing its valuation below $1.5 billion, TechCrunch reports.
Existing investors including Temasek and Tencent are reportedly among the investors in advanced stages of talks for the new round, according to the report citing sources.
Mohalla Tech’s losses widened by over 38 per cent to Rs 4,064 crore during FY2013, compared to Rs 2,941 crore in FY2012. Its revenue from operations grew 62 percent to Rs 540.21 crore in FY2012 from Rs 332.69 crore.
