Sharechat fetches $49 million debt financing led by Tencent and Lightspeed

The debt capital was also financed by HarbourVest, Moore Strategic Ventures, Rimco, and Alkeon, according to regulatory papers obtained from the startup data portal Kredible. Inc42 broke the news of the development first.

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In the midst of a tech startup investment freeze, Tencent and current backer Lightspeed led the $48.89 million loan round for social media unicorn ShareChat.

The debt capital was also financed by HarbourVest, Moore Strategic Ventures, Rimco, and Alkeon, according to regulatory papers obtained from the startup data portal Kredible. Inc42 broke the news of the development first.

The valuations of its global contemporaries in the social media arena, such X (previously Twitter) and Snap, have significantly decreased since the pandemic’s height.

In its most recent funding round, Sharechat was valued at about $5 billion.The action followed the resignations of co-founders Bhanu Pratap Singh and Farid Ahsan and the firing of some 600 workers in a similar cost-cutting measure earlier this year.

The two recently raised $3 million in seed money for their robots startup, General Autonomy, from venture capital firms Elevation Capital and India Quotient, as well as a few well-known angel investors.

ShareChat’s sales climbed by 59 percent to Rs 553 crore in FY23 from the previous year, according to the company’s annual financial report, which was obtained from Tofler. ShareChat is supported by investors including X (previously Twitter), Google, Lightspeed, and Temasek.

The company laid off 200 workers in December 2023, or around 15% of its total staff. This was the company’s second layoff of the year.

However, due to increased server rentals, finance costs, foreign exchange losses, and other factors, the social media company’s net losses increased by 72% to Rs 5,144 crore in FY23.

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