ShareChat cuts 20% of its workforce under pressure to cut costs from investors

India’s ShareChat, a short video sharing platform backed by Google and Temasek, said on Monday that it has laid off about 20% of its staff at a time when startups are facing a tough time. facing increasing cost-cutting pressure from investors.

“There is a growing market consensus that the current global recession will last much longer, and therefore, unfortunately, we have to find ways to save costs by downsizing. my group,” ShareChat CEO Ankush Sachdeva said in an internal memo seen by Reuters.

Bengaluru-based ShareChat is valued at $5 billion (approximately Rs 40,700), has more than 2,200 employees and is “expanding its team globally across India, US and Europe”, according to the site. its web.

It is unclear if the company has updated its website since deciding to cut its workforce.

Investors have become more wary of high valuations in a volatile stock market that has plagued tech stocks globally.

Startups in India raised $24 billion (approximately Rs 1,95,400) last year, a third less than in 2021, and have laid off thousands of employees in recent months to Cut costs and gain profits.

Last year, Reuters report that ShareChat’s parent company has raised nearly $300 million (approximately Rs 2400 crore) in new funding from Alphabet’s Googlemedia giant era group and Singapore Temasek Corporationvaluing the social media company at almost $5 billion (about Rs 40,700).

According to the report, the fundraising round is Google’s second major investment in the Indian short video space, having previously supported Joshcompete with ShareChat .’s sister company Moj.

Short video apps like Moj and Josh gained popularity after India banned ByteDance’s in 2020 TikTok and some other Chinese applications after the border clash with China.

© Thomson Reuters 2023

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