In addition to its current employee stock option (ESOP) plans, Mohalla Tech, the parent company of the short video entertainment app Moj and the vernacular social media network ShareChat, has introduced new ESOP possibilities for its staff.

According to ShareChat's regulatory filing obtained through the Registrar of Companies (RoC), the board has adopted a special resolution to add 5,83,800 employee stock options to its current plan, increasing the total ESOP pool to 14,30,100 options.

Crucially, at a later time specified in the agreement, each 100 stock options will be converted into one (1) equity share.

The application also stated that the goal of the ESOP pool expansion is to encourage employee ownership while drawing in, keeping, and inspiring talent.

According to Fintrackr, the entire value of the ESOP pool was 5592 crore, or $665 million, while the newly added ESOPs are valued at 2,283 crore, or $271 million.

Fintrackr believes that the whole ESOP pool is worth $265 million, while the newly added ESOPs are valued at $108 million. Interestingly, these estimates are predicated on the $2 billion valuation of the business.

TheKredible, a startup data analytics platform, reports that ShareChat has raised over $1.2 billion from investors, including Tencent, Moore Strategic Ventures, Alkeon Capital, and Twitter (now X).

As of FY23, the company was unable to demonstrate significant revenue, even though it had cleaned up over $1 billion. Due to monetization difficulties, the company's valuation dropped precipitously, and in the most recent bridge round, it was worth less than $2 billion. At its most recent fundraising round in June 2022, the company was valued at $5 billion.

Nonetheless, during the fiscal year FY24, the company saw a 30% year-over-year increase to 718 crore. The Tencent-backed company's adjusted EBITDA loss for the same period was 793 crore due to the sensible cost reduction.