ShareChat parent Moj lays off 5% of workforce, shuts down Jeet 11

Mohalla Tech, the parent of the ShareChat platform and short-video platform Moj, has laid off about 5 per cent of its workforce and shut down the fantasy gaming platform Jeet 11.

We periodically evaluate our strategies as a business practice. We have reorganized several of our functions and moved some of this talent within teams and a few employee exits, because we are ceasing Jeet 11 operations. The process has impacted less than 5 per cent of our employees, the company said.

The layoffs have affected more than 100 employees, and the Bengaluru-based company employs over 2200 people across verticals.

The layoffs and operation optimisation initiatives reflect an industry-wide trend where start-ups are moving towards strict cost control and operational efficiency to extend their runway as far as possible to survive the winter funding and battle a looming recession.

The development at ShareChat came just a little over five months after the company announced a funding round worth of $255 million from a host of marquee investors, including Google, Times Group and Temasek. The multi-tranche funding round of $520 million valued the company at $5 billion, making it one of the most valued start-ups in the country.

We continue to focus on growth and hiring across various functions and roles as per our plans. To succeed as India's fastest-growing social media company, we assess our strategy regularly and make necessary changes to achieve our vision, the company s statement said.

There have been layoffs in the tech space, including the start-up ecosystem, which has been hit by a funding winter due to rising interest rates, tightening liquidity, and a slowdown in tech globally. Most start-up leaders think the tough macroeconomic environment could last for 12 -- 18 months or more.

Over 16,000 employees have been laid off by Indian start-ups since the beginning of 2022, according to industry estimates. In the same domain as ShareChat, Dailyhunt sacked 5 per cent of its 3,000 employees earlier this week. VerSe Innovation Pvt Ltd, the parent of Dailyhunt and short video app Josh, called it a bi-annual performance management cycle that will see exits across VerSe. The company had raised $805 million as part of a Series J funding round in April of this year, at a valuation of $5 billion.