HomeStartupShareChat's valuation cut to $1.5B from $4.9B in 2022

ShareChat’s valuation cut to $1.5B from $4.9B in 2022

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ShareChat posts Rs 80 Cr revenue in FY21; losses balloon to Rs 1,460 Cr
  1. ShareChat, a social networking company, has recently laid off 200 employees due to a significant decrease in valuation from $4.9 billion to $1.5 billion.
  2. The company aims to achieve profitability within the next 4-6 quarters and has undertaken the layoffs to streamline costs.
  3. Despite being in the final stages of securing $50 million in new funding, ShareChat’s valuation has faced a reduction.
  4. Tracxn data shows that ShareChat, established eight years ago, has raised $1.4 billion to date.
  5. The company, previously valued at $1 billion in 2021, attained unicorn status that year with a cumulative funding of $913 million, the highest among all companies that became unicorns in 2021.
  6. Despite launching new initiatives like a fantasy sports app and a live audio chat service, ShareChat faced challenges in maintaining profitability, with revenue remaining below $65 million in the financial year ending March 31.
  7. Before the recent layoffs, ShareChat had a workforce of 2,200 employees, and after this round of layoffs, it is expected to reduce to around 1,500 employees.
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