ShareChat raises $49 million at 60% valuation cut

ShareChat knows that this is the company’s last attempt at a turnaround. It is unlikely that investors will buy ShareChat’s story after this and the company will receive more funding; so the business needs to start sustaining itself soon.

Social media startup ShareChat announced that it has raised $49 million through debt financing. In such financing, capital is raised by selling debt instruments—convertible debentures in this case. Existing investors Lightspeed, Temasek, Alkeon Capital, Moore Strategic Ventures and HarbourVest participated in the round. 

According to a TechCrunch report, citing an insider, the debt will convert to equity at a valuation below $2 billion in the next round. While the firm—popular for its vernacular social media platforms—said there was “no valuation” attached, it denied that the new valuation was below $2 billion.

Now, this is a steep markdown for the …

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Diti Pujara

Diti is a copy editor at The Morning Context. She joins us from Deccan Herald where she oversaw the daily news coverage in the digital vertical as a chief sub-editor. She also managed social media and contributed to data stories and film analysis. Before DH, she was with Reuters as an online producer.

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diti@mailtmc.com