The company is targeting an IPO within the next 18-24 months after achieving overall profitability, which it expects by the end of FY25.
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.
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.
Source: www.financialexpress.com