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ShareChat raises $16 Mn additional debt; lays off 5% employees

EntrackrEntrackr · 11m ago
ShareChat raises $16 Mn additional debt; lays off 5% employees
Medial

Mohalla Tech, the parent entity of the vernacular social media platform ShareChat and short video entertainment app Moj, has expanded its debt round to $65 million with $16 million latest infusion from Singapore-based EDBI. In April, ShareChat had raised around $49 million in debt from existing investors including Temasek, Lightspeed, HarbourVest, Moore Strategic, Rimco and Alkeon. The company also saw its valuation nosedived to less than $2 billion from $5 billion during its last fundraise in June 2022. The additional funds will be utilized for advertising company’s tech stack and expand the consumer transactions businesses with investment in newer monetization features, ShareChat said in a press release. A Moneycontrol report also said that ShareChat has let go of 5% of its workforce as a part of its mid-year performance cycle. In 2023, the firm put several cost-cutting measures and sacked 700 employees across two phases. “…some employees are impacted on the basis of performance. This accounts for less than 5% of our workforce. We have a number of open positions and we continue looking for high quality talent across functions,” said a company spokesperson. According to startup data intelligence platform TheKredible, ShareChat has raised around $1.8 billion from investors including Twitter (now X), Alkeon Capital, Moore Strategic Ventures, and Tencent, among others. ShareChat claims that the app is operationally profitable for the past several months, while the Moj app is close to operating break-even. Both apps cater to over 325 million users. While the Ankush Sachdeva-led firm is yet to file its FY24 financials, it spent nearly Rs 4,000 crore in FY23 to earn Rs 533 crore in revenue. Overall, it recorded Rs 3,241 crore loss in FY23. The surge in losses was primarily due to the write-off undertaken by the company for the acquisition of Moj’s competitor MxTakaTak. ShareChat spent nearly $700 million via cash and stock to acquire the Times Internet-backed company.

Exclusive: BeepKart lays off more than 100 employees

EntrackrEntrackr · 11m ago
Exclusive: BeepKart lays off more than 100 employees
Medial

BeepKart, a Bengaluru-based full stack retailer of used two-wheelers, has laid off more than 100 employees in the past few months, sources aware of the development told Entrackr. Sources added that the company conducted the layoffs in phases, starting right after the fundraise in April this year. The move has affected more than 20% of the workforce, with employees across various verticals, including marketing, tech, product, and operations, being laid off. “A few senior roles were also impacted. The layoffs, however, came as a surprise as it happened right after the funding. The company likely made the move to focus on profitability,” a source, who did not want to disclose their identity, told Entrackr. BeepKart declined to comment on the layoffs. Founded in 2020 by Hemir Doshi and Abhishek Saraf, BeepKart helps people buy and sell used two-wheelers. The company currently operates in Bengaluru and Chennai. As per startup data intelligence platform TheKredible, the company has secured around $18.5 million to date and is currently valued at around Rs 362 crore $44 million (post-allotment of new shares). In April, BeepKart raised $6.5 million in an extended Series A round. Entrackr exclusively reported the development. The company counts Stellaris Venture Partners, Vertex Ventures, Innoven Capital, and Chiratae Ventures, among others as its backers. BeepKart directly competes with CredR and Bike Bazaar. BeepKart was a pre-revenue stage firm till FY22 but it posted decent growth during FY23. The company reported Rs 21.86 crore revenue in the fiscal year ending March 2023 while its losses stood at Rs 27.88 crore in the same period. The firm is yet to file its annual report for FY24. Layoffs right after a fundraise is rare though they do happen. Last year, e-commerce-focused packaging company Bizongo laid off employees shortly after announcing a $50 million funding round. Similarly, Coffee chain firm Third Wave Coffee fired more than 100 employees months after raising $35 million in a Series C round whereas Euler Motors trimmed 10% of its workforce within six months of a $60 million round.

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