ShareChat raises $100-M in debt from Tencent

Vernacular social media and short video entertainment platform ShareChat has picked up another debt round worth $100 million from existing backer Tencent. ShareChat has approved the issuance of 2147 Series D debentures at the issue price of USD 46,583.64 each to Zennis Capital B.V and Hlodyn B.V respectively. The total amount raised by these optionally convertible debentures (OCD) is $100 million and each of these debentures are convertible into 1 preference share at the option of company/investor. Following allotment, Tencent shall control 17.71% stake in the company while promoters' collective stake has been diluted to less than 11.55%. This debt round comes at a time when ShareChat is about to complete the acquisition of its rival MX TakaTak in a deal worth $700 million. After the potential acquisition, ShareChat will be the biggest player in the short video entertainment space.