Homegrown social media unicorn Mohalla Tech, which operates ShareChat and the short video platform Moj, reported a 33% year-on-year revenue growth, reaching Rs 718 crore in FY24, up from Rs 540 crore in FY23. Consolidated losses before tax in FY24 stood at Rs 1,898 crore. In FY23, the social media company recorded a net loss of Rs 5,144 crore, primarily due to the write-off associated with the MX TakaTak acquisition.
The company is targeting an IPO within the next 18-24 months after achieving overall profitability, which it expects by the end of this fiscal. Commenting on the financial, Manohar Charan, chief financial officer, ShareChat, said: “Our first target is to achieve overall profitability. The usual practice is to prove at least two quarters of profitability before starting IPO preparations.”
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The app turned profitable in October, posting a 15% positive Ebitda margin, while its short video platform Moj is expected to achieve profitability by the end of the current fiscal, Manohar added. “We are now burning Rs 5 crore per month and are already at a revenue run rate of Rs 800 crore for FY25. We will head into FY26 with a fully profitable P&L statement.”
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Manohar attributed the improved financial performance to a combination of revenue growth and cost optimisation, which included a 50% reduction in server-side costs. To achieve this the company has rewritten two-thirds of the company’s code base, cleaned up accumulated technical debt, and made its server architecture more efficient.
“The cost of tech infrastructure is almost like the cost of material for any manufacturing company. If you pick an FMCG company, if the cost of manufacturing a sachet of shampoo goes down by 50%, their ability to generate profit goes up by that much.” he said. The company expects additional savings of Rs 70 crore to come from further optimisations by the end of FY25.
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