ShareChat is in the final stages of deliberations to secure $50 million in new funding, reducing its valuation to below $1.5 billion. Existing backers Temasek and Tencent are in advanced talks.

ShareChat, a Bengaluru-based startup, raised over $1.4 billion in India, but claims valuation figures are inaccurate due to the TikTok ban.

ShareChat, which acquired MX TakaTak for over $600 million, is attempting to grow revenue and trim expenses. Despite a series of initiatives, including a fantasy sports app and live audio chat service, revenue remained below $65 million in the financial year ending March. ShareChat plans to reduce its workforce by 15% to 20%, resulting in the third layoff in one year.

Investors are reducing startup holdings amid economic slowdown, reducing public tech firm valuations. Prosus reduced Byju’s valuation to below $3 billion, down from $22 billion in early 2022.