ShareChat’s parent company shuts down its fantasy gaming platform and fires 5% of its employees
- ByStartupStory | December 3, 2022
According to the firm, Bangalore-based Mohalla Tech Private Limited, the parent company of social media platform ShareChat and video-sharing social networking site Moj, has shut down its fantasy game platform Jeet11, laying off roughly 5% of its workers. Jeet11 employs a total of 2,300 people. According to an Inc42 analysis, the majority of the laid-off employees were from non-tech roles. It discovered that tech staff would be absorbed into Sharechat and Moj.
“As a standard business practice, we periodically evaluate our strategies. We can confirm that we are ceasing operations of Jeet11 and have reorganized some of our functions, which meant the movement of this talent within teams and a few employee exits. This process has impacted less than 5% of our employees,” a ShareChat spokesperson stated.
“We continue to focus on robust growth and hiring across various functions and roles as per our plans. To succeed as India’s fastest-growing social media company, we assess our strategy regularly and make necessary changes to achieve our vision,” the spokesperson added.
Mohalla Tech launched Jeet11 in early 2020 to investigate the fantasy game space. It was founded with the intention of competing with major players such as Dream11 and the Mobile Premier League (MPL). According to the Inc42 article, the shutdown of Jeet11 was caused by Mohalla Tech’s choice not to burn any more funds on it.
ShareChat finished a $520 million investment round in June, with Google and Times Group joining as new investors. The valuation of the Bengaluru-based social networking platform has risen to $5 billion as a result of this round. Existing investors include Alkeon Capital in New York, Temasek in Singapore, Moore Strategic Ventures, and India Quotient.
This news comes just a few days after VerSe Innovation, the parent company of short video platform Josh and news aggregator Dailyhunt, laid off nearly 5% of its workforce and cut wages by up to 11% for employees earning more than Rs 10 lakh per year, citing a difficult macroeconomic environment.
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