ShareChat’s FY25 Adjusted EBITDA Loss Declines 72%, Bets Big On Microdrama

Social media unicorn ShareChat’s parent Mohalla Tech Pvt Ltd said it trimmed its adjusted EBITDA loss by 72% to INR 219 Cr in FY25 from INR 793 Cr in the previous fiscal on the back of cost-cutting measures.

Meanwhile, the startup’s operating revenue grew marginally to INR 723 Cr in FY25 from INR 718 Cr in FY24. 

“On the revenue front, this was the last leg of our profitability journey and we focussed on getting the unit economics to positivity first. So we traded off revenue growth for FY25,” ShareChat cofounder and CFO Manohar Charan said in a media briefing.

Charan said that the startup expects its revenue to grow 30% YoY in the ongoing financial year. He said that its ARR stood at INR 1,000 Cr at the end of the first half of FY26 (H1 FY26).  

Besides ShareChat, Mohalla Tech also operates short video platform Moj and entered the microdrama segment with the launch of QuickTV in May this year. The startup primarily earns revenue from three segments – advertisement income, live streaming, and subscription income from QuickTV. 

Charan said that the startup’s advertisement revenue “witnessed pressure” due to GST increase on real-money gaming platforms, resulting in them spending less on advertisements in FY25. Meanwhile, its live streaming revenue continued to grow 7-8%.

With the Centre banning real-money gaming platforms earlier this year, the startup’s advertisement revenue is expected to see further pressure in the ongoing fiscal year. 

ShareChat’s Microdrama Bet 

The startup said that amid the microdrama boom, QuickTV is seeing strong traction. The app has crossed more than 15 Mn downloads to become the second most popular microdrama app  in the country.

QuickTV operates on a subscription-based model. Besides QuickTV, Mohalla Tech also distributes microdrama on ShareChat and Moj for free. It earns revenue from these platforms via advertisements. 

“If we leave QuickTV out, ShareChat and Moj together have 3.5 Cr monthly consuming users of microdrama. We see nearly 20 Cr episodes being played per day. We believe that the revenue per microdrama consumer that you can make from ads will be 1/4th or 1/5th of what you can make, or maybe even lesser of what you can make, per user from subscription. But the number of users who are willing to consume microdrama for free is much higher,” Charan added. 

Talking about the production of microdramas, Charan said that the startup partners with third-party production houses to produce the content. Mohalla Tech is majorly focussed on distribution 

“As per a Chinese study, if $100 is to be generated in this industry, nearly  80-85% of that money gets captured by those into distribution. Around 12% goes to those who do the shooting, actual production, post production, and editing of the content,” Charan said. 

This comes at a time when India’s microdrama market is booming. Several Indian startups including Reelies, Kuku and ReelSaga are thriving in the market. Post the ban on real-money gaming, Zupee and WinZO also entered the microdrama segment.

The global microdrama market, built on ultra-short, mobile-first fiction, stood at $6.54 Bn in 2024 and is projected to become a $12 Bn opportunity by 2030, clocking a CAGR of 10.5%.