ShareChat cut off staff and discontinues its fantasy sports app

The parent firm of locally developed social networking platforms ShareChat and Moj, as well as Jeet11, a platform for fantasy gaming, Mohalla Tech, has laid off around 5% of its workers.

According to the company’s statement, it states that they often assess our tactics as a matter of course in business. They can attest to the fact that they are ceasing Jeet11 operations and have rearranged some of the functions, which resulted in the transfer of certain talent across teams and the departure of a few employees. Less than 5% of their employees have been impacted by this process.

ShareChat and Jeet11

Over 2200 individuals work for the Bengaluru-based company in various verticals, therefore the layoffs likely touched far over 100 employees. To stretch their horizon as far as feasible to withstand the financial winter and combat an impending recession, start-ups are turning towards stringent cost management and operational savings, which the layoffs and operation optimization activities represent.

Notably, ShareChat’s events occur just a little more than five months after the business disclosed a $255 million fundraising round from several illustrious investors, including Google, Times Group, and Temasek. ShareChat was valued at $5 billion in a multi-tranche investment round totaling $520 million, making it one of the most valuable start-ups in the nation.

As per the company’s statement, it claims that based on its objectives, they continue to put a strong emphasis on hiring across a range of functions and roles. As the fastest-growing social media firm in India, they continually evaluate their strategy and adjust as needed to realize their goals.

Layoffs in the Tech Sector

Layoffs are becoming regular in the technology sector, especially in the start-up ecosystem, which is experiencing a financial winter as a result of rising interest rates, limited liquidity, and a slowdown in the global tech sector. The majority of startup executives believe the challenging macroeconomic situation could endure for 12 to 18 months or longer.

According to estimates from the sector, nearly 16,000 people have been let go by Indian start-ups since the year 2022 began. Dailyhunt, a company that competes with ShareChat in the same industry, let go of 5% of its 3,000 employees just this week.

Josh and Dailyhunt’s parent company, VerSe Innovation Pvt Ltd, described the departures as part of a “regular bi-annual performance management cycle.” At a $5 billion value, the company had earned $805 million as part of a Series J fundraising round in April of this year.

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