ShareChat reduces FY25 losses by 42%, records marginal increase in revenue
The social media firm has managed to cut down its operational losses by 72% in FY25 and is targeting a 30% revenue growth in FY26.
Google-backed ShareChat on Friday reported a 42% decline in loss before taxes to Rs 1,105 crore for the financial year ended March 31 2025, reflecting the firm's measures to reduce expenses.
The social networking firm reported a marginal 0.7% growth in FY25 revenue to Rs 723.4 crore, compared with Rs 718.1 crore last year. According to the company, the deep reduction in losses acted as a trade-off for revenue growth.
“We prioritised break-even or profitability or cash generation over revenue growth. Once that was achieved by February 25th, which was towards the end of FY25, we started looking into revenue growth areas,” said Manohar Singh Charan, Chief Financial Officer at ShareChat and Moj.
ShareChat is now targeting a 30% rise in revenue growth in FY26 and has already surpassed Rs 1,000 crore in annual recurring revenue due to rising subscription revenues amidst a slowdown in advertising revenue.
During the period, the company managed to reduce its expenses across the board, resulting in a 30% decline in costs to Rs 1,862.1 crore.
Additionally, the firm also reported an 72% decline in adjusted EBITDA loss to Rs 219 crore during this period, compared to Rs 800 crore in FY24, moving closer to operational breakeven. Adjusted EBITDA reflects how much the company earns (or loses) from its core operations.
Singh said that the company hopes to achieve net profitability in FY27; however, achieving EBITDA profitability remains a trade-off currently. This is because the company is continuing to invest in growth areas, having launched QuickTV earlier this year.
ShareChat is investing 75% of its investments into growing its micro drama offerings. In terms of when the company hopes for its micro drama offerings to attain profitability, Singh said, “Till the time the business is in growth phase, you will continue to see losses because every month you are investing more and more in marketing, and you're investing a fair bit in content production….The subscription business should actually start becoming profitable by mid of FY27.”
Founded in 2015, ShareChat houses social media brands such as the ShareChat app, short video app Moj App, and micro-drama app QuickTV.
Edited by Kanishk Singh