ShareChat, the video-sharing platform, has reportedly laid off approximately five per cent of its workforce, amounting to around 40 employees. These layoffs are part of a performance improvement plan (PIP) aimed at reducing costs and achieving profitability.
ShareChat, which now has around 800 employees, was previously at a peak of 2,700. A spokesperson for ShareChat commented on the layoffs, stating that this layoff accounts for less than five per cent of their workforce. They also mentioned that there are a number of open positions and that the company continues to look for high-quality talent across functions.
In addition to the layoffs, ShareChat has raised an additional $16 million in debt financing through convertible debentures, bringing the total size of its previous debt to about $65 million. The latest funding was provided by EDBI, a Singapore-based fund that also invests in home design and renovation platform Livspace.
Over the past year, Mohalla Tech, the parent company of ShareChat and short video platform Moj, has been striving to cut operating costs amid a tightening funding environment and stiff competition from global rivals such as Instagram and YouTube.
The additional funds will be used to invest further in ShareChat’s advertising technology and expand its consumer transactions business by developing new monetisation features for its creator ecosystem. The company claims that ShareChat has been operationally profitable for several months, while the Moj app is nearing break-even.