This is to inform you that the short-video platform ShareChat which is backed by Google Llc, is planning some fresh investments. According to the reports, this new investment in ShareChat would value the social media firm at over $2 billion. Notably, the new valuation of the social media company would be 55 percent less than the valuation it secured last year, sources familiar with the development reported. Since this news surfaced on the internet, people have been keen on this development by Google-backed social media company ShareChat. If you are also scrambling to the internet regarding the same, the following sections are waiting for you. Keep going and reading this column until it completes.
ShareChat May Invest up to $50 million
Sources familiar with the investment plan of ShareChat stated, “The company is looking at a bridge round of around $40-50 million in primary capital,” As mentioned above in the article, the new valuation of ShareChat would be 55 percent less at over $2 billion, ShareChat will reportedly value at $2.2 billion. The news of ShareChat’s new investment of around $50 million came after the company announced mass layoff earlier this year to reduce the monthly expenditure of the company. Continue reading this article and take a look below.
Will ShareChat Be A Growth Equity?
Another person familiar with the company’s investment and strategies, who is also close to the founder of ShareChat, said that ShareChat would be a growth equity round as it is getting closer to breaking even. The person familiar with the development said ShareChat cut down the monthly expenditure from $45 million last year, which is currently only $5 million. He further went on to say that ShareChat’s marketing costs also have been almost reduced as the company is only investing 2 percent of it was burning earlier on marketing. Therefore, the revenues are now close to meeting the burn.
“The company has brought down the monthly burn from $45 million in 2022 to around $5 million now. The marketing costs are down by 98%. The revenues are now close to meeting the burn” said a third person close to the founder of ShareChat. In January this year, the social media company announced a mass layoff of its employees that affected nearly 20 percent of its employees. In addition, ShareChat also stopped spending money on its gaming division in 2022 to scale down its live-commerce and social commerce vertical to contain the burn. Stay tuned to this website for more details and updates.