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societal media startup ShareChat ’s valuation has fallen to $ 2 billion from nearly $ 5 billion following a new financing round , a author conversant with the place tell TechCrunch , marking a steep declination for the nine - year - old Indian inauguration that boasts over 400 million users in the South Asian market place .
The Bengaluru - base startup , which operate a democratic social net supporting a dozen Amerindic languages and a short - form video app , said on Monday that it had raise $ 49 million in a convertible round . It did not disclose the valuation at which the funds were raised , but strongly denied that its new evaluation was below $ 2 billion , swear there was “ no valuation ” attached to the round .
Existing investors , include Lightspeed , Temasek , Alkeon Capital , Moore Strategic Ventures and HarbourVest , chip in to the fresh round , the startup said . Their debt will convert to fairness at a evaluation below $ 2 billion in the next round , according to a source with unmediated knowledge of the terms who requested anonymity to speak honestly . TechCrunch reported in December that ShareChat wasfacing a steep valuation cut .
ShareChat also reckon Google , X , Snap , Tiger Global and Tencent among its backer . It has elevate about $ 1.3 billion to date . The company was valued at $ 4.9 billion in a financial backing round it bring up in mid-2022 .
The markdown total despite a outstandingly plus twelvemonth for ShareChat , which had aggressively contract expense and doubled its revenue . “ When the market release , we had to surliness [ skill and creator payments ] and move towards more profitable ontogenesis , ” Ankush Sachdeva , ShareChat ’s co - founder and principal executive , told TechCrunch in an consultation .
ShareChat has not spent money on drug user skill in the past twelvemonth , Sachdeva suppose , crediting improvements to the inauguration ’s content testimonial engine for driving drug user retention and engagement . The companionship has also seat heavy in AI natural endowment , especially for senior roles in its London - base team , and has doubled the ESOP grant for each employee in the firm as part of a special incentive Ulysses Simpson Grant .
In addition , Sachdeva say the company has been able to skin down its single expectant expense — the cost of serving content . “ When you fetch content on one of our apps , we do a bunch of figuring to observe the 10 best content . To do and consume that , there is another delivery cost . optimize this has help oneself us get down our tan , ” he say .
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ShareChat has reduced its monthly John Cash suntan by 90 % over the past two years while replicate revenue , attracting large FMCG house and play companies as advertisers , the CEO said . The inauguration also remains committed to the short - TV market in India , despite strong competition from YouTube and Instagram following the country ’s ban on TikTok in 2020 , he bring .
“ In terms of traffic , ours is lower than those of Instagram and YouTube , but we are the largest in terms of a stand - alone app , ” said Sachdeva . He think ShareChat ’s focus on live - streaming as a destination for amusement and creator - exploiter connections will distinguish it from its U.S. rivals . In 2022 , the startupacquired local rival MX TakaTakin a deal evaluate at over $ 700 million .
