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Mohalla Tech in talks to raise $500-600 mn funding

The size of the fund raise might be increased to $650 million due to interest from foreign investors

e4m by exchange4media Staff
Published: Nov 23, 2021 4:54 PM  | 1 min read
MOhalla tech

Bengaluru-based Mohalla Tech, which owns Moj and ShareChat, is in early talks to raise fresh funding of $500 million to $600 million at a valuation of $5 billion, according to media reports. The size of the fund raise might be increased to $650 million due to interest from foreign investors.

Earlier, the company had raised almost $647 million in funding which included $502 million in April and $145 million in July. The July fundraise valued Mohalla Tech at $2.88 billion. The company has raised close to $1 billion till date.

Mohalla Tech had reported maiden revenue from operations of Rs 9.38 crore in FY20. The company had reported nil revenue from operations in FY19 and FY18. The company earned Rs 8.92 crore from advertisements and Rs 45 lakh from e-commerce related services. The company’s total income grew 49% to Rs 38.12 crore in FY20 from Rs 25.63 crore in the previous fiscal.

Total expenses jumped 23% to Rs 715 crore from Rs 581 crore a year ago. The company's FY20 loss rose 22% to Rs 676 crore from Rs 556 crore, due to a sharp jump in finance and employee benefit expenses.

In its FY20 filing, the company didn't mention its marketing expenses, however, it noted that it was incurring significant marketing expenses to acquire market share and engage more users on its platform. In FY19, the sales and marketing expenses stood at Rs 306 crore.

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