Mohalla Tech, which owns vernacular social media platforms ShareChat and Moj, reduced its consolidated loss to Rs 1,897.6 crore in FY24, from Rs 5,143.4 crore a year ago, when its bottom line was primarily hit by the write-off associated with its MX TakaTak acquisition.
Revenue from operations rose 19% to Rs 748 crore, while its total expenses fell around 33% to Rs 2,512 crore in FY24, according to financial data accessed via Tofler. The reduction in expenses was largely due to optimised server costs, a sharp drop in depreciation costs, and lower employee-related costs.
The company recently said that its primary Sharechat app has become profitable as of October with more than a 15% Ebitda margin. The company is targeting an IPO within the next 18-24 months after achieving overall profitability, which it expects by the end of FY25.
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Besides earning through advertisements, ShareChat uses microtransactions to allow users to pay content creators directly, through a virtual gifting feature where they can send digital gifts to creators. While a portion of these earnings goes to the company, the rest is given to the creator as a financial incentive to be on the platform.
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