AZB & Partners Advised HarbourVest Partners In Acquisition Of Stake In ShareChat
AZB & Partners Advised HarbourVest Partners In Acquisition Of Stake In ShareChat
In a significant development within the tech investment landscape, AZB & Partners has played a pivotal role in advising HarbourVest Partners (Asia) Ltd. in its acquisition of a stake in ShareChat, a prominent social media unicorn based in India. The deal was signed on March 6, 2024.
ShareChat, a social media platform, recently raised USD 49 million (INR 4 billion) through convertible debentures from existing investors, including HarbourVest, Temasek, Lightspeed, Moore Strategic, Alkeon Capital, and Tencent. The debt is earmarked for conversion into equity in the subsequent funding round. The recent injection of capital underscores investors’ continued confidence in ShareChat’s trajectory and potential despite prevailing market challenges.
The fresh funding comes almost two years after ShareChat raised $255 million from Google, Temasek, Times Internet, among others.
The startup, which has been on a cost-cutting spree for the last year or so, has managed to bring down its burn rate to below $5 million per month and cut its losses. ShareChat’s net loss grew 38% year-on-year to INR 4,064.3 crore in FY23, while revenue rose 62% to INR 540.21 crore.
AZB & Partners, with Partners Divya Mundra and Shivanand Nayak at the helm, along with Senior Associate Hitesh Agrawal, steered the legal advisory aspects of the acquisition. The transaction highlights HarbourVest Partners' strategic maneuvering in the evolving social media landscape.
This acquisition not only reinforces ShareChat's market presence but also signifies HarbourVest Partners' strategic alignment with high-potential ventures in the tech domain. With AZB & Partners' guidance, this transaction stands as a testament to the firm's commitment to facilitating impactful deals in the ever-evolving landscape of technology investments.
