Mohalla Tech, the parent entity of the vernacular social media platform ShareChat and short video entertainment app Moj, has laid off 15% of its workforce.
As per sources, around 200 employees will be impacted by the fresh round of layoffs. In January, it fired 500 employees citing external macro factors that impact the cost and availability of capital.
Confirming the development to Entrackr, a company spokesperson said,“ShareChat, today undertook a strategic restructuring as part of its annual planning for the year 2024. The decision reflects the company’s commitment to streamlining its cost base and achieving profitability within the next 4-6 quarters.”
“In alignment with our strategic vision, the company undertook a comprehensive restructuring effort to streamline operations, enhance productivity, and position the company for sustainable growth. As a result, the organization has moved to a flatter org structure and prioritized product initiatives that resulted in a reduction in team sizes by roughly 15%,” the spokesperson added.
Soon after the layoffs in January, ShareChat’s two co-founders, Bhanu Pratap Singh and Farid Ahsan stepped down from their active roles.
ShareChat is one of the most funded unicorns in India as it raised $255 million from Google, Times Group, and Temasek in June last year. The firm was valued at around $5 billion then. However, it’s looking to raise another $50 million at a lower valuation.
As per a TechCrunch report, the new money may come at a valuation of less than $1.5 billion.
ShareChat has continued to struggle to post sizable revenue in the last fiscal year but its losses are still a concern. Its revenue from operations increased 59.4% to Rs 533 crore in FY23 from Rs 347 crore in FY22 while the company’s losses grew only 8.4% to Rs 3,241 crore in FY23.