Google, Temasek-backed ShareChat cuts 20% of workforce

BENGALURU – India’s ShareChat, a short-video sharing platform backed by Google and Temasek, said on Monday that it had let go of about 20 per cent of its staff, as start-ups face increasing pressure from investors to cut costs.

“There is a growing market consensus that the current global economic downturn would be a much more sustained one, and we thus have to, unfortunately, seek more cost savings by reducing our team size,” ShareChat chief executive Ankush Sachdeva said in an internal memo seen by Reuters.

Indian start-ups raised US$24 billion (S$31.7 billion) in 2022, a third less than in 2021, according to Venture Intelligence.

They have let go thousands of employees in recent months to become profitable, as investors have become more circumspect about high valuations in a turbulent stock market that has hammered technology shares across the globe.

ShareChat also said it had over the last six months “aggressively optimised costs” across its business, including in marketing and infrastructure.

A spokesman said: “As capital becomes expensive, companies need to prioritise their bets and invest in the highest-impact projects only... We aim to sail through the uncertain global economic conditions over 2023 and 2024.”

Valued at US$5 billion, Bengaluru-based ShareChat has more than 2,200 employees and is spreading its team globally across India, the United States and Europe, according to its website.

It was not immediately clear if ShareChat has updated its website since the decision to reduce its workforce.

ShareChat confirmed that employees would get two weeks’ pay for every year served and employee stock ownership plans will continue to vest as per schedule until April 30. REUTERS