Highlights
Vernacular social media platform ShareChat is reportedly reducing its workforce by approximately 5%, marking the second instance of layoffs within a six-month period. In August 2024, the company also laid off 5% of its staff as part of its mid-year performance evaluation.
In 2023, ShareChat implemented various cost-reduction strategies, resulting in the termination of 700 employees across two distinct phases. According to Moneycontrol, which was the first to report this development, the current employee count at ShareChat ranges from 530 to 550, with the upcoming layoffs being part of an annual review process expected to conclude later this month.
Startup Superb has reached out to ShareChat for further comments.
Funding and Financial Growth
In 2024, the firm, led by Ankush Sachdeva, secured $65 million in debt through two funding tranches. To date, ShareChat has successfully raised approximately $1.3 billion from various investors, including Twitter (now X), Alkeon Capital, Moore Strategic Ventures, and Tencent, among others.
Operational Performance
During the last fiscal year, ShareChat witnessed a 29.9% increase in operational revenue, rising to Rs 718.1 crore from Rs 552.73 crore in FY23. Alongside a reduction in expenses and measured growth, the company’s losses decreased by 41.4%, amounting to Rs 1,898.94 crore in FY24.
Trends in Layoffs
In 2024, the number of layoffs significantly diminished to 4,700, a notable reduction from the 24,000 layoffs recorded in 2023 and 20,000 in 2022. With funding recovery in progress, further reductions in layoffs are anticipated for the current calendar year.