ShareChat raises funds from Google, Temasek; co-founders hold less than 10% stake
Summary
Update: ShareChats parent Mohalla Tech announced that it has raised $255 million fresh funds from Google, Times Group and Temasek at a valuation of $5 billion.Mohalla Tech, operator of vernacular social media ShareChat and short video entertainment platform Moj, has raised Rs 607 crore in a Series H round led by Google. According to Fintrackrs estimate, ShareChat has been valued in the range of $4.85 to $5 billion (post-money).The Series H appears to be an ongoing one and the company is likely to raise more money in this round. According to a Reuters report, the company will raise nearly $300 million in this round at a valuation of $5 billion.After the allotment of this tranche, Google will hold 1.07% stake in ShareChat while co-founders Farid Ahsan, Ankush Sachdeva, and Bhanu Pratap Singh have together diluted their shareholding to 9.68%. Since 2021, ShareChat has raised six rounds of funding across equity and debt.FY21 was the first fiscal year of meaningful revenue from operations in which its collection surged by 754.3% to Rs 80.3 crore. For the seven-year-old company which controls vernacular social media platform Sharechat and short video entertainment app Moj, advertising sales remained the major revenue driver (over 95%).Meanwhile, its annual losses jumped 115.8% YoY to Rs 1,460 crore during fiscal year ending March 2021.