Sharechat Is Struggling To Breakeven

Sharechat is projecting breakeven by FY25. But for that, its revenue must grow nearly 10X in just 3 years. In FY21- ShareChat posts Rs 80 Cr revenue; losses balloon to Rs 1,460 Cr

Why it matters: With powerful backers and a $5 billion valuation to boot, ShareChat wants to cement its position as the social media app for India’s masses.

Details: Social media platform - Sharechat and short video entertainment app - Moj, advertising sales remain the revenue driver, collecting 95.8% of its annual revenues.

• ShareChat wants to increase revenues by 10X and hit breakeven by March 2025. To do this, it’s building an advertising engine that can compete with Meta and Google.

• But building an ad inventory innovative enough to woo digital ad dollars away from bigger rivals is not an easy task.

• In F22, ShareChat's parent company acquired rival MX's TakaTak short-video platform in a roughly $700 million deal in a cash-and-stock deal.

• Sharechat & Moj combined monthly active users (MAUs) reached 260 Million but with MX TakaTak, we expect it to be anywhere between 400-500 million.

Catch up quick: With powerful backers such as Google, Tiger Global, and TOI - Sharechat was able to raise a total funding of $520 million. But is now struggling to gain profitability. It is now expected that users will see more ads than before.

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