Sharechat, the popular social media platform, has successfully secured $49 million through convertible debentures in a funding round led by its existing investors, which include Lightspeed, Temasek, Alkeon Capital, Moore Strategic Ventures, and Harbour Vest.
Ankush Sachdeva, the co-founder and chief executive officer, expressed in a statement on Monday, “The new funds will be utilized to bolster our robust monetization plans and propel us on our path to break-even and beyond.”
The company has earmarked these funds for enhancing its ad targeting technology and amplifying the growth of its consumer transactions business on Sharechat and Moj’s live-streaming platform.
Mohalla Tech Pvt. Ltd, the parent company of Sharechat and short-video platform Moj, achieved a valuation of $5 billion during its May 2022 funding round, which saw investments from Alphabet Inc.’s Google and Singapore’s Temasek Holdings, among others.
However, Sharechat faces challenges with declining advertising revenues due to global companies reducing marketing expenses amidst macroeconomic uncertainties and geopolitical tensions.
Additionally, Sharechat has witnessed significant leadership changes, including the departure of two co-founders, and has undergone multiple rounds of layoffs due to slowing growth in advertising revenues, a primary income source.
According to the company’s latest filings sourced from Tofler, Mohalla’s loss widened by 72% to ₹5,144 crore in FY23, while total income surged by 71% to ₹718 crore.