ShareChat, an Indian startup and social media platform, has been having trouble since this fiscal year when its valuation was slashed by more than half. The Bengaluru-based company has now dismissed a total of 200 workers.

According to an Economic Times report, ShareChat reportedly announced the dismissal of 200 workers on Wednesday after releasing an official statement regarding the company’s “strategic restructuring” and “streamlining cost base” following a significant decline in its total valuation.

On December 20, the business released a statement saying, “ShareChat today completed a strategic reorganization as a part of its yearly planning for 2024. The choice is in line with the business’s objective to achieve profitability in the next four-six quarters by simplifying its cost base.”

Following ShareChat’s decision to terminate 600 employees earlier this year in order to reduce expenses, the company is now experiencing another round of layoffs. On the other hand, the corporation has not yet disclosed any details regarding the employees’ severance pay.

ShareChat’s $3.4 billion valuation was lowered:

The Bengaluru-based business ShareChat’s valuation was reportedly reduced from $4.9 billion to $1.5 billion this year, according to The Economic Times. This indicates that the company’s valuation has decreased by around ₹28,300 crore.

According to TechCrunch, ShareChat, which is supported by Google and Tamasek, is close to obtaining $50 million in fresh capital to make up for its reduced valuation. The business has raised $1.4 billion in total so far.

By 2023, ShareChat had let go of about 25% of its whole staff. Before this, 100 workers of ShareChat’s parent business Mohalla Tech lost their employment when Jeet11, a fantasy gaming company, was shut down.

Co-founders of ShareChat, Bhanu Pratap Singh and Farid Ahsan, left the social media platform in January 2023, which caused investors to lose interest in the business as it struggled to attract capital.

At $5 billion, ShareChat’s valuation peaked in March, but after layoffs and an increase in net loss percentage, the number gradually decreased.