Mohalla Tech's ShareChat Secures Rs 134 crore from Singapore's EDBI Amidst Staff Layoffs

In a significant funding development, Mohalla Tech, the parent company of the popular social media platform ShareChat, announced on Sunday that it has successfully raised Rs 134 crore (approximately USD 16 million) in debt financing from the Singapore-based investment entity EDBI. This move comes as part of an expansion of its ongoing convertible debentures round, enabling the home-grown technology firm to secure additional capital to continue its growth trajectory.

Contribution of EDBI to ShareChat's Growth

EDBI's investment into ShareChat underscores a robust confidence in the future of India's social media landscape. As a major player in the investment sector, the Singapore firm brings not only capital but also a wealth of experience and strategic positioning that could benefit ShareChat as it navigates the competitive market.

Impact on ShareChat's Workforce

Concurrent with the announcement of new funding, ShareChat revealed that it had to undertake workforce optimization measures. The company trimmed its staff by 5% across various departments. This decision is indicative of the ongoing adjustments companies in the tech sector are making to balance expansion efforts with operational efficiency.

Amid the financial activities, shareholders and prospective investors of related market securities, such as Shutterstock, Inc. with the stock ticker SSTK, may observe ancillary effects as market sentiment around tech investments continue to evolve.

It is important to note that while SSTK is associated with a technology company providing content and services globally, and is headquartered in New York, it does not have a direct correlation with the funding event of ShareChat as they operate in different facets of the digital content industry.

ShareChat, EDBI, Funding