Sharechat’s parent Mohalla Tech has shut down its real money gaming platform Jeet11, resulting in job loss for 5 per cent of its team.
In a statement, a Sharechat spokesperson said, “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 per cent of our employees.”
She added that the company continues to focus on robust growth and hiring across various roles as per plans.
According to sources, most tech employees were absorbed by the company and the impact was majorly on the non-tech roles. The spokesperson did not comment on the severance packages offered to the laid-off employees. Inc42 was the first to report this development.
Starting two years back, Jeet11 offered real money games like rummy, ludo, and fantasy cricket. Sharechat’s competitor VerSe Innovation has also laid off 150 employees earlier this week citing market conditions.
Late-stage tech companies have seen their valuations drop by almost 40 per cent as the funding winter extends for more than six months now. This has pushed many well-funded startups to lay off employees in an attempt to reduce cash burn and justify their earlier valuations.
Indian startups raised $3 billion cumulative funding in Q3 2022 (July-September), a 57 per cent drop from the previous quarter and 80 per cent lower than the $14.9 billion funding raised in Q3 2021, according to ‘Tracxn Geo Quarterly Report: India Tech Q3 2022’.
