India’s ShareChat, a brief video-sharing platform backed by Google and Temasek, stated on Monday it let go of round 20% of its staff at a time when startups are dealing with growing strain from buyers to chop prices.
“There’s a rising market consensus that the present international financial downturn could be a way more sustained one, and we thus should, sadly, search extra value financial savings by lowering our staff measurement,” ShareChat Chief Government Ankush Sachdeva stated in an inner memo seen by Reuters.
Bengaluru-based ShareChat is valued at $5 billion (roughly Rs. 40,700 crore), has greater than 2,200 staff and is “spreading its staff globally throughout India, USA and Europe,” in line with its web site.
It was not instantly clear if the corporate has up to date its web site for the reason that choice to scale back its workforce.
Buyers have turn into extra circumspect of excessive valuations in a turbulent inventory market that has hammered tech shares throughout the globe.
Indian startups raised $24 billion (roughly Rs. 1,95,400 crore) final 12 months, a 3rd lesser than in 2021, and have let go 1000’s of staff in current months to chop prices and turn into worthwhile.
Final 12 months, Reuters reported that the father or mother firm of ShareChat has raised practically $300 million (roughly Rs. 2400 crore) in recent funding from Alphabet’s Google, media big Occasions Group and Singapore’s Temasek Holdings, valuing the social media agency at practically $5 billion (roughly Rs. 40,700 crore).
Based on the report, the fundraising spherical was Google’s second key funding in India’s quick video area, having beforehand backed Josh, which competes with ShareChat’s sister agency Moj.
Quick video apps like Moj and Josh shot up in reputation after India in 2020 banned ByteDance’s TikTok and another Chinese language apps following a border conflict with China.
© Thomson Reuters 2023
