ShareChat
ShareChat is a social media platform founded on 8 January 2015 by Ankush Sachdeva, Bhanu Pratap Singh, and Farid Ahsan, operating under the parent company Mohalla Tech Private Limited in Bengaluru, India.[1][2] It specializes in vernacular content sharing, supporting over 15 Indian languages to enable users from non-metro areas to post videos, photos, status updates, microblogs, and engage in audio chat rooms.[3][4] The platform targets India's diverse linguistic demographics, fostering user-generated content and community interactions in native tongues rather than relying on English-dominated feeds.[5][6] ShareChat has scaled to over 180 million monthly active users and a creator community exceeding 32 million, with average daily time spent per user at 31 minutes, positioning it as a leading vernacular network amid competition from global apps.[5][7] The company has raised approximately $1.3 billion in funding, achieving unicorn status with a peak valuation near $5 billion in 2021, though a 2024 round marked its value down below $2 billion amid market pressures and operational costs.[8][9][10] Notable achievements include capitalizing on the 2020 TikTok ban through its short-video sister app Moj, driving revenue growth to $165.5 million by 2022, while recent fiscal improvements show Mohalla Tech narrowing adjusted EBITDA losses by 72% to ₹219 crore in 2025 through cost controls and strategic shifts.[11][8][12] Despite successes, ShareChat has encountered challenges, including a 2023 layoff of around 600 employees—20% of its workforce—to streamline operations post-funding, alongside persistent losses peaking at ₹5,144 crore for Mohalla Tech in fiscal 2023 due to expansion and acquisition expenses.[13][14] Controversies include a 2020 police FIR in Bengaluru for alleged copyright infringement on user-uploaded content, raising questions about platform liability and safe harbor protections under Indian law.[15] These issues underscore the operational and regulatory hurdles in moderating vast vernacular content volumes while pursuing profitability in a competitive market.[16]Founding and History
Inception and Early Years (2015–2017)
ShareChat was incorporated on January 8, 2015, in Bengaluru, India, by IIT Kanpur alumni Ankush Sachdeva, Bhanu Pratap Singh, and Farid Ahsan, who had recently graduated and met during their studies.[17] [18] The trio initially developed an online debating application called Opinio but pivoted to ShareChat after recognizing the limitations of English-dominated platforms like Facebook for India's non-metro, vernacular-speaking population, aiming to create a social network for sharing images, videos, and messages in regional languages.[19] The app was engineered to function efficiently on 2G networks, mimicking scalable public chatrooms similar to WhatsApp groups but with discoverability, targeting users in smaller cities with limited internet infrastructure.[20] The platform launched its initial version in October 2015 under Mohalla Tech Pvt. Ltd., supporting content sharing in multiple Indian languages to foster community interactions among underserved users.[17] Early development emphasized user-generated content, with the first such posts appearing in April 2016, as the app iterated on features like language-specific feeds to encourage organic sharing of memes, jokes, and local news.[5] In February 2015, prior to launch, ShareChat secured its first seed funding of approximately $100,000 from India Quotient, followed by a $1.35 million seed round led by SAIF Partners in July 2016, which supported initial scaling and vernacular content moderation.[21] [22] By 2017, ShareChat had established a foothold in regional markets, prioritizing empirical user feedback for product refinements amid competition from global apps, though specific early user metrics remain undisclosed in contemporaneous reports. The founders' focus on causal factors like linguistic diversity and low-bandwidth accessibility drove organic adoption, setting the stage for broader expansion while navigating challenges in content authenticity and platform scalability.[19][23]Growth and Challenges (2018–2020)
In 2018, ShareChat secured approximately $100 million in Series C funding led by investors including Lightbox and India Quotient, which fueled platform enhancements and user acquisition efforts focused on non-English speaking audiences in India.[24] The company reported a sevenfold growth in its user base during the 2018-2019 fiscal year, expanding its presence in tier-II and tier-III cities through support for 10+ Indian languages.[25] By mid-2019, ShareChat had reached about 60 million monthly active users (MAU), with daily average users (DAU) averaging 14 million between August 2019 and January 2020, driven by features like live streaming and community-driven content sharing.[26] [27] The platform introduced short-video capabilities to compete in emerging formats, alongside additional funding in August 2019 from Twitter and Shunwei Capital, supporting hires and infrastructure scaling.[28] User engagement surged during the early 2020 COVID-19 lockdown, with DAU rising 15% as Indians turned to vernacular social networking for entertainment and connectivity amid restrictions.[27] By July 2020, MAU approached 45 million pre-major shifts, setting the stage for accelerated expansion later that year.[5] ShareChat faced significant hurdles from dominant competitors, particularly ByteDance's TikTok, which commanded over 200 million users in India by 2020 through addictive short-video algorithms, overshadowing ShareChat's text-and-image-centric model.[29] Pre-ban, TikTok's grip on video consumption—where users spent over 50 minutes daily—limited ShareChat's market share in that segment to around 15%, forcing investments in AI for regional language processing and content recommendation to retain users.[29] [30] Content moderation challenges arose from scaling vernacular uploads, with risks of misinformation and low-quality posts straining resources amid rapid growth.[30] Financially, the company remained loss-making, posting operational revenue of just $1.26 million in 2020 despite user gains, highlighting monetization difficulties in a freemium model reliant on ads and virtual goods.[31]Post-Pandemic Expansion (2021–2023)
In April 2021, ShareChat raised $502 million in a Series E funding round led by Tiger Global Management and Lightspeed Venture Partners, achieving unicorn status with a valuation exceeding $2 billion and enabling investments in regional content ecosystems and technology infrastructure.[32] This was followed by a $145 million Series F round in July 2021 at a $2.88 billion post-money valuation, further supporting user acquisition and platform enhancements.[33] A $266 million Series G infusion in December 2021, backed by Alkeon Capital and Temasek, elevated the valuation to $3.7 billion, funding expansion into advertising tools and creator monetization features tailored for non-English speaking audiences.[34] The company's short-video arm, Moj, capitalized on the post-TikTok ban landscape, integrating with the February 2022 acquisition of MX TakaTak for approximately $700 million to consolidate market share in vernacular short-form content and merge user bases for cross-platform synergy.[35] In May 2022, ShareChat secured an additional $300 million from Google, Temasek, and others as part of a $520 million round, reaching a $5 billion valuation and allocating funds toward AI-driven content recommendations and live commerce pilots to drive engagement in tier-2 and tier-3 Indian cities.[36] These moves aligned with revenue growth to $165.5 million in 2022, primarily from targeted ads leveraging regional language targeting.[8] By February 2023, ShareChat reported 180 million monthly active users, underscoring penetration in India's non-metro demographics, though daily active users fell from 8.2 million in January 2021 to 5.3 million in January 2023 amid competition from Instagram Reels and retention pressures.[37][38] Fiscal year 2023 revenue climbed 62% to ₹540 crore (about $65 million), reflecting improved ad fill rates and e-commerce integrations, even as the company navigated a late-2023 funding round at a sub-$1.5 billion valuation due to broader market corrections in edtech and social media sectors.[39][40]Recent Developments (2024–2025)
In early 2024, ShareChat's parent company Mohalla Tech secured $49 million in venture debt funding led by Temasek, amid a down round that reduced the firm's valuation to below $2 billion from a peak of $4.9 billion in 2022.[10][41] This markdown reflected broader market pressures on Indian startups, with the funds aimed at extending runway amid cost-cutting measures. Later in August 2024, the company raised an additional $16 million in conventional debt from EDBI to support operations.[1] Financial performance showed signs of stabilization in fiscal year 2024, with revenue growing 33% year-over-year, driven by a 41% increase in livestreaming to ₹402 crore.[42] The core ShareChat app achieved EBITDA profitability by October 2024 at over 15% margins, while Moj reached operational profitability, enabling a hybrid monetization model balancing advertising and microtransactions.[42] Mohalla Tech reported a 72% reduction in adjusted EBITDA losses to ₹219 crore (US$24.9 million) in 2025, alongside cash flow positivity and plans for an IPO within two years.[12][43] Operationally, ShareChat implemented workforce reductions, including 5% layoffs in August 2024 tied to performance improvement plans and another 5% (30-40 employees) in January 2025, targeting a headcount of 500 by March 2025 from 650-700.[44][45] These moves prioritized cost efficiency over expansion. In content partnerships, ShareChat and Moj collaborated with JioCinema in July 2024 to distribute Paris Olympics highlights, enhancing vernacular engagement.[46] Expansion efforts included establishing ShareChat's first Southeast Asia AI Centre of Excellence in Singapore on January 28, 2025, to advance vernacular AI capabilities.[47] The company appointed Nitin Jain as Chief Technology Officer in December 2024, bolstering technical leadership amid AI-driven trends in regional content and monetization.[47]Funding and Financials
Investment Rounds and Valuation
ShareChat raised approximately $1.3 billion across 13 equity funding rounds from 2015 to 2024, with additional debt financing in recent years.[48] Early-stage investments were modest, including a seed round of $350,000 in December 2015 and a Series A of $11.1 million in July 2017 from investors such as India Quotient and Saama Capital, establishing initial operations in vernacular social media.[49] The company accelerated funding in 2021 amid rapid user growth, achieving unicorn status with a Series E round of $502 million on April 8, 2021, led by Tiger Global Management and Lightspeed Venture Partners, with participation from Snap Inc. and Twitter Ventures, at a post-money valuation of $2.1 billion.[9] [50] This was followed by a Series F round of $145 million on July 27, 2021, led by Temasek Holdings, valuing the company at nearly $3 billion.[33] Later that year, a Series G round raised $266 million on December 16, 2021, from Google and Temasek among others, pushing the valuation to $3.7 billion.[51] Valuations peaked in 2022 at $5 billion following a $300 million investment led by Google in May, reflecting optimism around ShareChat's expansion into short-video platform Moj and competition with global players like TikTok. However, subsequent rounds amid economic headwinds and slower growth in India's startup ecosystem reflected significant markdowns: a late-2023 infusion of about $50 million trimmed the valuation below $1.5 billion, and an April 2024 round of $49 million dropped it below $2 billion, a more than 60% decline from the 2022 peak.[40] [52] In August 2024, ShareChat secured $65 million in convertible debentures, including $16 million from EDBI, providing bridge financing without disclosing a new equity valuation.[53] As of late 2024, the company's implied valuation remained around $1.5–2 billion, influenced by persistent losses despite revenue growth to ₹718 crore ($86 million) in FY24.[49] [54]Revenue Model and Performance Metrics
ShareChat's revenue model primarily relies on a hybrid approach combining advertising and user-generated monetization through microtransactions, particularly from live streaming and virtual gifting. Advertising revenue stems from targeted promotions by brands leveraging the platform's vernacular user base, including self-serve ad tools and sponsored campaigns tailored to regional demographics.[55][56] Microtransactions, which include payments for virtual gifts during live streams and creator incentives, have increasingly dominated, contributing 56% of total operating income in FY24 at ₹403 crore compared to ₹315.4 crore from advertising.[57][58] This shift reflects a strategic pivot toward non-advertising streams amid slower ad market growth in regional India, with live-streaming revenue rising 7.7% to ₹434 crore in FY25.[59] Performance metrics indicate steady but uneven revenue growth, with total operating revenue reaching ₹718.1 crore in FY24, a 29.9% increase from ₹552.73 crore in FY23, driven by expanded live-streaming contributions.[60][42] In FY25, revenue edged up marginally to ₹723.4 crore, a 0.7% year-over-year gain, hampered by a decline in advertising amid economic pressures on brands.[61] Adjusted EBITDA losses narrowed sharply from ₹793 crore in FY24 to ₹219 crore in FY25, a 72% reduction, signaling improved cost discipline and path to profitability; the core ShareChat app achieved EBITDA positivity with over 15% margins by October 2024.[62][63] The company projects 30% revenue expansion in FY26, bolstered by emerging subscription models and micro-drama content to diversify beyond live streaming.[61][59]| Fiscal Year | Operating Revenue (₹ crore) | Adjusted EBITDA Loss (₹ crore) | Key Driver |
|---|---|---|---|
| FY23 | 552.73 | Not specified | Baseline growth |
| FY24 | 718.1 | 793 | Live streaming surge[60][57] |
| FY25 | 723.4 | 219 | Cost efficiencies[61][62] |