Twitter-backed social media startup ShareChat has laid off 101 employees, or 25 per cent of its staff, amidst the COVID-19 pandemic that has hampered its advertising business severely, according to a report by The Economic Times.
The company, headquartered in Bengaluru, had started monetizing through advertisements only last year, the report added.
ShareChat is understood to have sent an email to its staff on Wednesday morning indicating that the advertisement market would remain unpredictable going forward this year and that it is accordingly adopting cost-cutting measures.
“… today with the market uncertainties due to COVID-19, we are compelled to take a relook at our business. We have had to make a few decisions that would allow us to become leaner and position the company better for the future,” Ankush Sachdeva, co-founder & CEO, ShareChat in the email.
ShareChat, founded in 2015 by three IIT Kanpur alumni, competes with Facebook and TikTok and allows users to share their opinions and record their lives in regional languages. It made headlines last month when it bought Bengaluru-based Memer, marking its second acquisition this year.
In February, ShareChat acquired online fashion marketplace Elanic, signaling its interest to foray into e-commerce.
The company, backed by investors such as Shunwei Capital, Lightspeed Venture Partners, and SAIF Capital, raised $100 million in a fresh round of funding from Twitter and private equity firm TrustBridge Partners.