Sharechat raises $16Mn in extended debt round. Also laid off 5% workforce.
I feel they would be raising for 4-5 months of runway at a time this way. Anybody knows?
The fundraise is an extension of its convertible debt round in which it has already raised $49 million from Tencent and existing investors s...
https://www.moneycontrol.com/news/business/sharechat-closes-16-million-fundraise-while-firing-up-to-5-of-workforce-12786137.html#google_vignette
redWiper
Student
2 months ago
How does Sharechat still work financially as an investment? FY24 estimated revenue is 750 cr, FY23 around 500cr.
FY23 losses were around 4K Cr. Server costs itself were 1k Cr in FY23. Negative grosss margins as a social network after 10 yrs being started
I don't understand how are they still able to raise money? Internet penetration has plateaued in India. Jio revolution is 5-6 yrs old now, UPI has made online spending easy. Moj did not replace TikTok. What else is there in the India story to convince investors for a turn around of Sharechat?
I don't a see potential for an IPO. Best case is acquisition, maybe by Snapchat or even by Adani or Jio
Soros
Stealth
2 months ago
Why would you assume they will keep paying 1000 cr server costs . what if revenue goes beyond 1000 cr and server cost shrinks 30%+
Soros
Stealth
2 months ago
One fifth of the country uses sharechat every month, I would say it is one of the most beautiful social assets in the country. Any big giant will pay a few billion $s for such a base
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Soros
Stealth
2 months ago
Seems more like extension of $49m +$14m which means $65m quite a lot of money. I have heard they are nearing profitability in few months and might not actually need money. Layoff of 5% is small and small raise all directing towards signs of self sustainability
I hope this gets listed over next few years as it is super unique company created once in a generation and a true sign of Indian vc ecosystem arriving
Damaru
Stealth
2 months ago
Profitability will be unsustainable, mark my words
High Time we blacklist such companies. Nothing good here. Don't even care about their losses and profitability at all now.
The founder should have crazy guts to fire people again and again even after raising funds that too even after being in market so so many years. Chances are there must be some scam also goin on theres.
5 percent employee salary would be be nothing in comparison to their losses. There should be some rules mandating the boss and senior management to reveal their salary, stocks, perks before laying of any single employee so that all can have good picture.
Many startups, specially Indian one's have taken up things for granted, making layoff as a fashion.
Soros
Stealth
a month ago
When you are running a business which is matue, every penny helps :)
I am sorry but this is so bad that it's funny. How much of an ass the CEO has to be to raise funding and fire employees. Any good engineer should call bullshit and move on.
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