ShareChat Reports Strong Growth with 33% Revenue Increase and Reduced Losses in FY24
ShareChat, the Bengaluru-based social media platform, has reported a strong financial performance for the financial year ending March 2024 (FY24), marking a 33% year-on-year (YoY) growth in operating revenue. The company achieved INR 718 Cr in operating revenue, up from INR 540 Cr in the previous fiscal year. This growth signals the company’s ability to scale effectively, diversify its revenue streams, and strengthen its position in the competitive social media landscape in India.
The company also reported a significant reduction in its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) losses. The loss for FY24 stood at INR 793 Cr, which is a 67% improvement compared to the INR 2,400 Cr loss reported in FY23. This sharp decline in losses reflects ShareChat’s ongoing efforts to control costs, optimize operations, and build sustainable revenue sources.
Diversified Revenue Streams Drive Growth
ShareChat operates with two main revenue-generating streams: advertising and livestreaming. Both segments have seen positive growth, contributing significantly to the overall performance in FY24.
Advertising Revenue Growth
ShareChat’s advertising revenue saw a 23% YoY increase, reaching INR 315 Cr in FY24, up from INR 257 Cr in FY23. The growth in advertising revenue was primarily driven by diversification across sectors, particularly Fast-Moving Consumer Goods (FMCG) brands and mid-market advertisers. This diversification has helped ShareChat increase its appeal to a wider range of advertisers, expanding its ad base beyond the traditional large-scale brands.
The advertising growth was also aided by ShareChat’s ability to leverage its massive user base, particularly in India’s tier-2 and tier-3 cities. As internet penetration increases in these regions, more brands are investing in digital platforms to reach potential customers. ShareChat’s localized content and user-centric approach have made it a compelling choice for advertisers looking to tap into the diverse Indian market.
Livestreaming Revenue Surge
The livestreaming segment emerged as another strong performer for ShareChat in FY24, seeing a 41% YoY growth and reaching INR 402 Cr in revenue. This growth was fueled by an increase in paying users on both the ShareChat platform and its short video app, Moj.
Livestreaming, an increasingly popular feature among social media users, is gaining traction in India. The rise of live commerce, where users can buy products during live sessions, has contributed to the revenue growth in this segment. ShareChat’s Moj platform, in particular, has seen significant growth in user engagement and monetization, bolstered by an increase in interactive content and real-time engagement between influencers and their audiences.
Key Drivers Behind the Success
The company’s performance can be attributed to a combination of factors, including:
- User Growth and Engagement: ShareChat continues to expand its user base, particularly in smaller towns and rural areas, where internet penetration is growing rapidly. The platform has increasingly focused on regional language content, which resonates deeply with a wider audience.
- Strategic Investments: ShareChat has invested heavily in technology, data analytics, and content creation to keep users engaged. The company has also made strategic moves to enhance its monetization capabilities through targeted advertising and livestreaming features.
- Localized Content: ShareChat has focused on regional language content, making it a unique offering in a market where many social media platforms are yet to cater to local languages at scale. This approach has resonated with Indian users, who appreciate content in their native languages.
- Partnerships and Diversification: ShareChat has diversified its revenue sources by forging partnerships with brands, influencers, and media agencies. Its ability to tap into multiple advertiser segments, including mid-market players, has helped fuel advertising revenue growth.
Looking Ahead
As ShareChat continues to expand its reach in India’s growing digital ecosystem, the company is positioning itself for long-term success. While it is still working towards profitability, the significant reduction in losses and robust revenue growth are promising signs of its path toward financial sustainability. ShareChat’s dual focus on content creation and monetization through advertising and livestreaming offers a balanced approach to scaling its business.
With advertising and livestreaming as key drivers, ShareChat is well-positioned to capitalize on the growing Indian digital advertising market. The increasing number of paying users on its platforms, along with its deepening penetration into rural markets, will likely continue to fuel growth in the coming years. If the company can maintain its momentum and continue to innovate, ShareChat is poised to become a dominant player in India’s digital ecosystem.
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