15 April 2024 – The X, Google, and Snap-backed Indian firm claimed to have cut its burn by more than 90% while increasing its revenue by double. After a fresh funding round, the social media startup ShareChat’s valuation plummeted to less than $2 billion from almost $5 billion, a person familiar with the matter told TechCrunch. This represents a sharp decline for the nine-year-old Indian startup, which has over 400 million users in the South Asian market.
The Bengaluru-based business said on Monday that it had secured $49 million in a convertible round. It runs a popular social network that supports twelve Indian languages in addition to a short-form video app.
Although it refuted claims that its new value was less than $2 billion and said that “no valuation” was associated with the transaction, it did not reveal the valuation at which the funds were obtained.
Conclusion
According to the business, the fresh round was funded by existing investors Lightspeed, Temasek, Alkeon Capital, Moore Strategic Ventures, and HarbourVest. According to a person with firsthand knowledge of the details, their debt will be converted to equity at a value of less than $2 billion in the next round.