Mohalla Tech, the parent company behind the vernacular social media platform ShareChat and the short video app Moj, has expanded its debt funding round to $65 million with a recent $16 million contribution from Singapore-based EDBI.
In April, ShareChat secured around $49 million in debt from existing investors, including Temasek, Lightspeed, HarbourVest, Moore Strategic, Rimco, and Alkeon. The company’s valuation has dropped significantly, falling from $5 billion during its last funding round in June 2022 to under $2 billion.
The additional funding will be directed towards enhancing the company’s technology infrastructure and expanding consumer transaction services with new monetization features, according to a press release from ShareChat.
A report by also mentioned that ShareChat has reduced its workforce by 5% as part of its mid-year performance review. In 2023, the company implemented several cost-cutting measures and laid off 700 employees in two phases.
According to data, ShareChat has raised approximately $1.8 billion from investors, including Twitter (now X), Alkeon Capital, Moore Strategic Ventures, and Tencent, among others.
ShareChat claims that its platform has been operationally profitable for several months, while the Moj app is nearing operational break-even. Together, the apps serve over 325 million users.
The company, led by Ankush Sachdeva, has not yet filed its financial statements for FY24. However, in FY23, it spent nearly Rs 4,000 crore to generate Rs 533 crore in revenue, resulting in a loss of Rs 3,241 crore. The increase in losses was mainly due to a write-off from acquiring Moj’s competitor MxTakaTak. ShareChat acquired the Times Internet-backed company for nearly $700 million in cash and stock.
