New Delhi, Nov 21 (VOICE) Mohalla Tech, the parent company of social media platform ShareChat, saw its losses swell over 38 per cent to Rs 4,064 crore during FY23 as compared to Rs 2,941 crore in FY22.Mohalla Tech posted a 62 per cent increase in its revenue from operations to Rs 540.21 crore from Rs 332.69 crore in FY22.
Total income saw an increase of 54.9 per cent to Rs 628.85 crore, reports Inc42.
The parent entity of ShareChat as well as short video entertainment app Moj had raised $255 million from Google, Times Group and Temasek during FY23.
On a unit level, it spent Rs 7.16 to earn a rupee of operating revenue, one of the highest expense-to-revenue ratios for a unicorn in FY23.
‘ShareChat Coin’, the in-app virtual currency, overtook its advertisement income to form 52 per cent of the total revenue.
This income surged 2.3X to Rs 285 crore in FY23 from Rs 121 crore in FY22, according to Entrackr. Earlier this year, ShareChat laid off 20 per cent of its workforce due to uncertain market conditions.
Backed by Twitter, Google, Snap and Tiger Global, ShareChat had about 2,300 employees, and the layoff impacted about 500 people at the company, according to reports.
ShareChat is currently looking for a bridge round to the tune of $50 million at a 55 per cent haircut in its valuation, according to reports that surfaced in October.