Amidst a funding downturn, Mohalla Tech, the parent company of social media platforms ShareChat and Moj, has laid off 20 per cent of its workforce, about 400 employees to “sustain through macro headwinds”.
“Even as we continue to keep growing, there have been several external macro factors that impact the cost and availability of capital. Keeping these factors in mind, we need to prepare the company to sustain through these headwinds,” a spokesperson at ShareChat said underscoring the reason.
Sharechat’s parent Mohalla Tech had shut down its real money gaming platform Jeet11, resulting in job loss for 5 per cent of its team earlier. The company was last valued at around $5 billion. It raised $520 million from Google and Temasek Holdings in June 2022. “The decision to reduce employee costs was taken after much deliberation and in light of the growing market consensus that investment sentiments will remain very cautious throughout this year,” the company said.
The company will be paying the total salary for the notice period, health insurance policy cover will remain in place until June-end this year and ESOPS will continue to vest as per schedule up till April 30, 2023, and employees will retain all vested ESOPs.
Sharechat joins a host of start-ups that have laid off employees amidst a funding winter in the ecosystem. Recently, Ola, LEAD, Cashfree, Moglix and Bounce have also laid off employees.