Google-backed short video platform ShareChat said Monday said it has $49 million (about Rs 409 crore) by issuing convertible debentures to some of its existing investors.
Lightspeed Venture Partners, Singapore state investment firm Temasek, Alkeon Capital, Moore Strategic Ventures and HarbourVest were among those who took part in the round, ShareChat said in a statement.
The social media platform said it will use the funds in its advertising targeting technology and growing its consumer transactions business on ShareChat Live and Moj Live.
“The new funds will be utilised to bolster our robust monetisation plans and propel us on our path to break-even and beyond,” said chief executive Ankush Sachdeva.
The startup, operated by Mohalla Tech Pvt. Ltd, was founded by Sachdeva, Bhanu Pratap Singh and Farid Ahsan. Singh and Ahsan left the company last year.
The company ventured into short-video format after the Indian government banned Chinese app TikTok in 2020. It subsequently acquired Times Internet-backed MX Taka Tak in 2021.
The latest capital raise comes almost two years after the startup secured $300 million in a funding round that valued it about $5 billion. The company, which counts Google and the Times Group as its other investors, has raised more than $1.43 billion from investors across various funding rounds.
The company also claimed that ShareChat app has achieved operational profitability, while the short video app Moj is expected to achieve operational profitability over the next few months, as it aims for further reduction in losses.
To cut losses, the startup last year shut down its fantasy gaming platform Jeet11 and laid off about 20% of its workforce.
The company also said that, to retain its top talent, it will implement an employee stock option bonus programme that will double the ESOP ownership for its current employees.
“We are setting aside an ESOP pool equal to 3.5% of the cap table to be disbursed as bonus grants,” said Sachdeva. “We wanted to recognize their efforts and incentivize our teams to continue this momentum and push the company to profitability in the next four-five quarters and then to IPO.”