ShareChat, an Indian social media startup powered by Twitter, Google, Tiger Global, and Temasek, laid off 20% of its workforce, equivalent to more than 400 employees.
The platform informed its employees about the decision on Monday morning. This came just a month after eliminating over 100 roles.
Last December, ShareChat laid off around 5% of its workforce after shutting down its fantasy sports platform Jeet11.
CEO of ShareChat Ankush Sachdeva indicated that the move was to “ensure the financial health and longevity” of the startup, adding that it “overestimated the market growth in the highs of 2021 and underestimated the duration and intensity of the global liquidity squeeze.”
In a statement shared with TechCrunch, a ShareChat spokesperson pointed out that the decision was taken “after much deliberation and in light of the growing market consensus that investment sentiments will remain very cautious throughout this year.”
“Since our launch eight years ago, ShareChat and our short video app Moj have seen incredible growth. However, even as we continue to keep growing, there have been several external macro factors that impact the cost and availability of capital,” the spokesperson mentioned.
“Keeping these factors in mind, we need to prepare the company to sustain through these headwinds. Therefore, we’ve had to take some of the most difficult and painful decisions in our history as a company and had to let go of around 20% of our incredibly talented employees who have been with us in this start-up journey.”