SUMMARY
- ShareChat’s parent company Mohalla Tech marked a 33% growth in revenue to Rs 718 crore in FY24 from Rs 540 crore in FY23.
- Total operating expenses grew to Rs 1540 crore in FY24 from Rs 3119 crore in FY23.
- The firm’s net consolidated losses dropped to Rs 1,898 crore in FY24 from Rs 5,143 crore in FY23.
Mohalla Tech, the holding company of the local social media platform ShareChat and the short video app Moj, marked a 33% growth in revenue to Rs 718 crore in FY24 from Rs 540 crore in FY23 as per the company’s press release.
56% of the income came from live streaming, which saw a 41.4% rise to Rs 403 crore in FY24. The rest of its income, 44%, was from advertising, which grew by 23.5% to Rs 315 crore in the same period.
ShareChat also earned Rs 29 crore from non-operating sources, mainly from interest and gains on financial assets, bringing its total revenue to Rs 747 crore for FY24.
The cost of servers was the biggest expense in the year under review. ShareChat’s chief financial officer, Manohar Charan, mentioned that the company was able to cut this cost by half in FY24.
ShareChat also managed to reduce its expenses on employee benefits by 17% to Rs 580 crore in FY24. This included Rs 126 crore as ESOP (non-cash). The costs for advertising, legal, travel, and other overhead expenses increased the total operating expenses to Rs 1540 crore in FY24 from Rs 3119 crore in FY23.
Notably, we have not included non-cash elements such as interest, provisions, foreign exchange (FX) losses, depreciation, and ESOP expenses in the total cost for both FY23 and FY24.
Mohalla Tech was able to lower its adjusted EBITDA losses by 67% to Rs 793 crore in FY24 from Rs 2400 crore in FY23. The firm’s net consolidated losses dropped to Rs 1,898 crore in FY24 from Rs 5,143 crore in FY23.
It counts Temasek Holdings, Google, Twitter, The Times Group, Tiger Global, Snap, Lightspeed, and Elevation Capital among its investors. ShareChat claims over 325 million monthly active users across all its platforms while Moj has a monthly active user base of around 160 million.
Recently, the company has expanded its debt round to $65 million, with a $16 million investment from Singapore-based EDBI. ShareChat has secured around $1.8 billion in funding. However, its valuation was reduced to less than $2 billion from $5 billion in its last fundraising in June 2022.
During its mid-year review, the company also laid off 5% of its workforce in August 2024. ShareChat implemented various cost-saving strategies and fired 700 positions across two phases in 2023.
