Exclusive: ShareChat adds new ESOP options worth $108 Mn

Mohalla Tech, the parent entity of the vernacular social media platform ShareChat and short video entertainment app Moj, has added fresh employee stock option (ESOP) options for its employees as part of its existing ESOP plans.

The board at ShareChat has approved a special resolution to add 5,83,800 employee stock options to its existing plan, bringing the total ESOP pool to 14,30,100 options, its regulatory filing accessed through the Registrar of Companies (RoC) shows.

Importantly, every 100 stock options will be converted into one (1) equity share at a later date decided in the agreement.

The expansion of the ESOP pool aims to foster employee ownership while attracting, retaining, and motivating talent, the filing further added.

As per Fintrackr’s estimates, the newly added ESOPs are worth Rs 2,283 crore or $271  million while the value of the total ESOP pool stood at Rs 5592 crore or $665 million.

According to Fintrackr’s estimates, the newly added ESOPs are valued at $108 million, while the total ESOP pool is worth $265 million. Notably, these valuations are based on the company's $2 billion valuation.

According to startup data intelligence platform TheKredible, ShareChat has raised around $1.2 billion from investors including Twitter (now X), Alkeon Capital, Moore Strategic Ventures, and Tencent, among others.

Despite mopping up more than $1 billion, the company wasn’t able to show substantial revenue as of FY23. Struggle in monetization led to a steep fall in valuation which stood at less than $2 billion in the recent bridge round. The firm was valued at $5 billion during its last fundraise in June 2022.

However, the firm has recorded a 30% year-on-year growth to Rs 718 crore during the fiscal year FY24. With the sound reduction in expenses, the adjusted EBITDA loss for the Tencent-backed firm stood at Rs 793 crore in the same period.