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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