ShareChat’s parent company closes fantasy gaming platform and terminates 5% of workforce
- ByStartupStory | March 11, 2023
According to the company, Mohalla Tech Private Limited, which is based in Bangalore and owns social media platform ShareChat and video-sharing social networking service Moj, has closed down its Jeet11 fantasy gaming platform and terminated approximately 5% of its employees.
According to reports, Jeet11 had a total of 2,300 employees, and the majority of the workers who lost their jobs were in non-tech positions. The report also stated that ShareChat and Moj would absorb the tech workers.
A ShareChat spokesperson stated that “the company regularly reviews its strategies and has decided to discontinue Jeet11 while reorganizing some of its functions. As a result, a few employees had to leave, and some of the talent was transferred to other teams. The spokesperson also confirmed that this process affected less than 5% of the company’s total workforce”.
He added that “the company remains committed to its plans of strong growth and recruitment across diverse roles and functions. To become India’s fastest-growing social media enterprise, they continually evaluate their strategy and make essential adjustments to accomplish their goals”.
Mohalla Tech introduced Jeet11 in early 2020 to venture into the world of fantasy gaming and potentially compete against bigger players like Dream11 and Mobile Premier League (MPL). However, as per the reports, Mohalla Tech chose to close down Jeet11 after deciding not to invest more funds into it.
ShareChat, based in Bengaluru, secured a $520 million funding round in June, with new investors Google and Times Group joining the fold. This investment round resulted in a $5 billion valuation for the social media platform. Its current investors are New York’s Alkeon Capital, Singapore’s Temasek, Moore Strategic Ventures, and India Quotient.
Amidst a challenging macro environment, VerSe Innovation, the parent company of Dailyhunt, a news aggregator, and Josh, a short video platform, has recently laid off nearly 5% of its workforce while also reducing the wages of employees earning more than Rs 10 lakh per annum by up to 11%. This development has occurred just a few days before the shutdown of Mohalla Tech’s Jeet11.
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