ShareChat Slashes Losses by 72% as Micro-Drama Strategy Fuels Growth
Mohalla Tech, ShareChat's parent company, has significantly reduced its losses while shifting focus to micro-dramas for growth. The company's adjusted EBITDA loss decreased by 72% to ₹219.00 crore, with revenue marginally growing to ₹723.00 crore. Net loss reduced by 40% to ₹1,105.00 crore. ShareChat's main platforms achieved operational breakeven with annualized revenue exceeding ₹1,000.00 crore. The company is allocating 70-75% of growth investments to micro-dramas, with QuickTV already surpassing 15 million downloads. ShareChat is also diversifying its revenue model from ad-dependent to a mix of advertising and subscriptions. For FY26, the company projects 30% revenue growth and potential EBITDA breakeven.
*this image is generated using AI for illustrative purposes only.
ShareChat's parent company, Mohalla Tech, has made significant strides in reducing its losses while pivoting towards a micro-drama-focused growth strategy, according to recent financial reports.
Financial Performance
The company has shown remarkable improvement in its financial health:
| Metric | FY25 | Change |
|---|---|---|
| Adjusted EBITDA Loss | ₹219.00 crore | ↓72% from ₹793.00 crore |
| Revenue | ₹723.00 crore | Marginal growth |
| Net Loss | ₹1,105.00 crore | ↓40% |
| Employee Costs | Not specified | ↓20% |
ShareChat's main social media and short-video platforms achieved operational breakeven in FY25, with annualized revenue crossing ₹1,000.00 crore, representing a 30% year-on-year growth.
Strategic Shift to Micro-Dramas
ShareChat is prioritizing micro-dramas as its key growth driver:
- Allocating 70-75% of growth investments to the micro-drama vertical
- Setting Return on Investment (ROI) targets for FY27
- QuickTV, ShareChat's micro-drama app launched this year, has already crossed 15 million downloads
Revenue Model Transformation
The platform is transitioning from an ad-dependent revenue model to a mix of advertising and subscription models. This shift comes in response to:
- Reduced real-money gaming ads due to government bans
- GST hikes affecting advertising revenue
Future Outlook
For FY26, ShareChat projects:
- 30% revenue growth
- Potential EBITDA breakeven
This strategic pivot and financial discipline demonstrate ShareChat's adaptability in a challenging market environment. The focus on micro-dramas and diversification of revenue streams may position the company for growth in the coming years.
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