Indian Social Media Is Dying : ShareChat losses INR 3241 Cr In FY23

 Indian social media platforms are dying, and if we talk specifically about them, Mohalla Tech, which runs social media platforms like ShareChat and Moj, Both of these Indian social media platforms serve 325 million active users every month, but now they are on the verge of death. 

ShareChat had raised $225 million from Google and Times Group, and its valuation was $20 billion. ShareChat has raised a total of $1.7 billion so far in a total of 15 rounds, but this amount may not be sufficient for the company. 

Despite raising so much funding and having such a large user base, ShareChat failed to monetize its platform. They are no longer able to generate enough revenue to cover their expenses. In FY23, ShareChat made a total profit of Rs 533 crore, and their total expense was Rs 3959 crore, due to which they incurred a loss of Rs 3241 crore. This company is spending Rs. 7 to generate revenue of Rs. 1, which is why their cash burn is very high. 

ShareChat has not been able to raise any major funding after FY22. Recently, the company raised $50 million in a bridge round, and due to this, its valuation fell by 55%, which is now $2.2 billion. The CapTable, a YourStory product, has stated that ShareChat only has money to last for 6 months and they want funding at any valuation. 

ShareChat acquired Bengaluru-based online fashion marketplace Elanic in FY20, but this platform could only generate a revenue of Rs 5 crore. And because of this, the platform was closed by ShareChat in January 2023. ShareChat had also acquired Jeet11, which was a fantasy gaming platform, but this platform was shut down in December last year and generated a revenue of only Rs 27 crore.

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