ShareChat (Mohalla Tech Pvt Ltd), India’s largest social media company, said it has increased its convertible debenture round to $65 million, to accommodate a fresh investment from EDBI, a leading global investor based in Singapore.
These additional funds will be used to further invest in the company’s advertising technology stack and expand its consumer transaction business with investments in new monetization features for the creator ecosystem.
Currently, ShareChat app has been operationally profitable for the past few months, while Moj app is close to breaking even.
In April this year, ShareChat raised $49 million via convertible debentures in a funding round led by existing investors Lightspeed, Temasek, Alkeon Capital, Moore Strategic Ventures and HarbourVest, among others.
According to media reports, Sharechat is closing a $16 million fundraise, while laying off about 5 percent of its workforce (around 30 to 40 employees) after a semi-annual performance review.
“The fact that ShareChat is able to attract new investments from a sovereign wealth fund like EDBI is a significant positive sign,” said a person familiar with the matter.
“Attracting new investors of this calibre in the current cautious private investment environment reflects that the market is taking note of the company’s progress towards building a profitable business,” the source said.
ShareChat operates India’s largest short-video platform, Moj, as well as the ShareChat app, which together serve over 325 million users. ShareChat claimed that it has democratized social media in India by offering content in over 15 Indian languages.
With its multilingual approach and diverse advertising formats, the company has worked with over 200 advertisers in the country, including HUL, Maruti, P&G, Hero and Samsung.
In recent years, ShareChat said it has rapidly increased its monetization avenues, including virtual gifting, where it ranks as the market leader by a wide margin.
First published: August 3, 2024 | 17:50 IS
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