Social media app Sharechat lets go of 5% of its employees | The Financial Express

Social media app Sharechat lets go of 5% of its employees

Jeet11 which offers fantasy cricket and a few other online games was launched in February 2020 to compete with other larger online fantasy platforms like MPL, Dream11 and others.

Social media app Sharechat lets go of 5% of its employees
The startup has also built diversified monetisation models beyond advertising in areas like virtual gifting and video commerce. 

Mohalla Tech, which owns homegrown social media company ShareChat has laid 100 employees and shuttered down fantasy gaming app Jeet11, said a source close to the company. 


Confirming the development, a spokeswoman from Sharechat said in a statement that the retrenching affected around 5% of its 2,300-strong workforce. Jeet11 which offers fantasy cricket and a few other online games was launched in February 2020 to compete with other larger online fantasy platforms like MPL, Dream11 and others.

“As a standard business practice, we periodically evaluate our strategies. We can confirm that we are ceasing operations of Jeet11 and have reorganized some of our functions, which meant movement of this talent within teams and a few employee exits. This process has impacted less than 5% of our employees,” the statement added. 

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The social media startup, however, claimed that it will continue to focus on growth and hiring across various functions and roles. Job cuts at Sharechat come almost six months after it raised a large round of funding worth $520 million at a $5 billion valuation. Some of its investors include names such as Temasek, HarbourVest, Moore Strategic Ventures, and India Quotient.

ShareChat, which achieved the unicorn status last year, has collectively raised $913 million in 2021, which also makes it one of the most-funded unicorn start-ups in the country alongside other names such as Byjus, Swiggy, OYO and Ola, among others. 

ShareChat (Mohalla Tech) runs short video platforms — Moj and TakaTak — besides the ShareChat app, which together cater to over 400 million users. The startup has also built diversified monetisation models beyond advertising in areas like virtual gifting and video commerce. 

Founded in 2015 by Ankush Sachdeva, Bhanu Pratap Singh and Farid Ahsan, ShareChat has several social media brands under its portfolio. Today, ShareChat claims to have more than 180 million monthly active users spread across the country. 

Layoffs in the startup industry have affected more than 16,000 employees this year alone, but most of the retrenching affected consumer Internet firms. In the content space, Dailyhunt which operates a news aggregation product and shart video app Josh also fired 150 employees or about 5% of its workforce last month citing changes in economic conditions..

While companies across sectors have cut jobs, edtech firms have been particularly hit as demand for online education wanes. However, the rising number of layoffs by startups and digital platforms is expected to slow down by mid-2023, hiring experts told FE recently. By the middle of next year, companies in the digital space may go back to hiring to fuel their growth plans, they said.

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First published on: 02-12-2022 at 18:19 IST