Google-backed unicorn ShareChat sheds 20% of staff

ShareChat, a social media unicorn based in India, has sacked 20% of its staff in a fresh round of layoffs, a company spokesperson told Tech in Asia.

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The retrenchment will affect nearly 500 employees out of the company’s 2,100-strong workforce, Tech in Asia understands.

According to a source, ShareChat co-founder and CEO Ankush Sachdeva stated in an internal note that there will be no further layoffs for now. Tech in Asia sought to clarify this, but the company didn’t comment on the matter.

As part of a severance package, ShareChat will pay the total salary for the notice period, two weeks’ pay as ex-gratia for every year served with the company, and health insurance policy cover until June. Employee stock ownership plans will continue to vest as per schedule up till April 30, 2023, and employees will retain all vested ESOPs.

ShareChat plans to continue doubling down on boosting advertising and livestreaming revenues. “With these changes, we aim to sail through the uncertain global economic conditions over 2023 and 2024 and come out stronger,” the company said in a statement.

Mohalla Tech, the parent firm of ShareChat, shut down operations of Jeet11, its fantasy games platform in December. This round had affected nearly 115 employees.

Founded in 2015 by Sachdeva, Farid Ahsan, and Bhanu Pratap Singh, Mohalla Tech raised US$520 million at a US$5 billion valuation in June.

Apart from ShareChat, Mohalla Tech also runs short-video app Moj. Together with both apps, the Mohalla Tech ecosystem has a monthly active user base of 400 million, one of the largest for any social media platform in India.

See also: Tracking layoffs across Asia’s startup ecosystem (Updated)