MUMBAI: ShareChat, a homegrown social media company reported a 33% Y-o-Y growth in revenue, reaching Rs. 718 crores, up from Rs. 540 crores in FY 2023. ShareChat also made significant strides in reducing losses as adjusted EBITDA losses fell by 67% from Rs. 2,400 crores in FY 23 to Rs. 793 crores in FY 2024.
ShareChat’s ad revenue registered a growth of 23% Y-o-Y, reaching Rs. 315 crores, despite a challenging macroeconomic landscape. The company attributed this success to their strategic diversification of client base across various verticals, particularly in the FMCG sector and amongst mid-market advertisers. The livestreaming segment continued an impressive growth trajectory, recording a 41% Y-o-Y uptick, reaching Rs. 402 crores for the fiscal year 2024. The surge was driven by continued growth momentum in paying user count across both ShareChat and Moj platforms.
Subsequent to the closure of FY 2024, the company accelerated the journey to profitability. As of October 2024, ShareChat app is fully profitable at over 15% EBITDA margin. The Moj app has achieved operational profitability (effectively covering all costs except employee salaries) and is expected to be fully profitable by end of FY25. The profitability milestone has been made possible by a dual engine of revenue growth and cost optimisation, especially, the cost of server infrastructure where ShareChat has managed to optimise server cost per user by 50% since the beginning of 2024.
On the revenue front, there has been a 25% YoY uptick in Advertising revenue per user and a nearly 10 percentage point margin improvement in livestreaming business. Aggressive efforts on feed ranking improvement resulted in nearly ten percentage point uplift in long term retention of both ShareChat and Moj users, thereby allowing to cut user acquisition spends to near zero.
Ankush Sachdeva, CEO, Cofounder, ShareChat and Moj said, “Over the past few years we have been successful in cutting our costs significantly and ramping up our revenue. This, coupled with our strategic investment in product development and state of the art recommendation engine, have charted our path to profitability, with the ShareChat app achieving EBITDA profitability. We are confident that we will reach this milestone at a company level in the coming months.”
ShareChat is expecting EBITDA losses for FY 2025 to be nearly one third of FY24 and the consolidated business to start generating positive cash flow by early FY 2026.
