## ShareChat Secures $49 Million Funding, Announces ESOP Bonus Program
Indian social media giant ShareChat has successfully closed a $49 million funding round through convertible debentures. However, the company's valuation has reportedly dropped by 60% from its peak in 2022, currently sitting at $2 billion compared to $5 billion previously.
The latest funding round was led by existing investors including Lightspeed, Temasek, Alkeon Capital, Moore Strategic Ventures, and HarbourVest. The company plans to utilize the fresh capital to further develop its ad targeting technology and bolster the growth of its consumer transactions business on ShareChat Live and Moj Live.
Notably, the ShareChat app is already operationally profitable, and its short video platform Moj is expected to follow suit within the next few months. "The new funds will be utilized to bolster our robust monetisation plans and propel us on our path to break-even and beyond," stated Ankush Sachdeva, CEO and Cofounder of ShareChat and Moj.
He further emphasized that the investor support, particularly in the current challenging financial climate, signifies a strong vote of confidence in the company's trajectory towards profitable growth.
In line with this progress, ShareChat has announced an organization-wide ESOP (employee stock ownership plan) bonus program, doubling the ESOP ownership for all current employees. This initiative aims to retain top talent and reward them for their contributions in driving the company towards financial stability.
"Our employees were the single most important force powering 2x revenue growth and 90% reduction in our monthly losses over the past two years," Sachdeva acknowledged. "We wanted to recognise their efforts and incentivise our teams to continue this momentum and push the company to profitability in the next 4-5 quarters and then to IPO."
The special bonus grant will effectively double the total ESOP grant for every employee. Additionally, ShareChat has set aside an ESOP pool equivalent to 3.5% of the cap table for distribution as bonus grants.
ShareChat, operating under Mohalla Tech, manages India's largest short video platform, Moj, alongside the ShareChat app. Together, these platforms cater to over 325 million users. Over the past year, the company has focused on rapidly monetizing its various platforms, resulting in a significant surge in revenue. Notably, ShareChat has successfully diversified its monetization avenues beyond advertising, venturing into areas like virtual gifting.