Mohalla Tech, the company behind popular social media platforms ShareChat and Moj, reported a consolidated loss of Rs 1,898 crore for the financial year 2024 (FY24). This marks a significant improvement from the Rs 5,143 crore loss recorded in FY23.
Expenses and EBITDA Loss
The company reported an adjusted EBITDA loss of Rs 793 crore in FY24, compared to Rs 2,400 crore in FY23. Expenses saw a sharp decline, dropping 50% from Rs 3,119 crore in FY23 to Rs 1,540 crore in FY24. These expenses excluded non-cash components like foreign exchange (FX) losses, depreciation, and employee stock option plan (ESOP) costs, as per reports.
Revenue Growth
Despite the loss, Mohalla Tech’s revenue grew by 33% on an annual basis, reaching Rs 718 crore in FY24, up from Rs 540 crore in FY23. Live-streaming emerged as a major contributor, accounting for 56% of total revenue. Income from live-streaming increased by 41.4% to Rs 403 crore. Advertising revenue also grew by 23.5%, contributing Rs 315 crore in FY24.
Including non-operating income, such as Rs 29 crore from interest and financial asset gains, the company’s total income for FY24 stood at Rs 747 crore.
Decline in Employee Costs
Employee benefit costs declined by 17% to Rs 580 crore in FY24, including Rs 126 crore attributed to non-cash ESOP expenses. This reduction reflects the company’s efforts to control expenses and streamline operations.
ShareChat claims a strong user base, with over 325 million monthly active users (MAUs) across all platforms. Moj, the short-form video app owned by Mohalla Tech, boasts around 160 million MAUs.
Funding and Valuation
Since its inception, ShareChat has raised $1.3 billion in funding from prominent investors, including Temasek Holdings, Google, Twitter, The Times Group, Tiger Global, Snap, Lightspeed, and Elevation Capital. However, the company’s valuation dropped from $5 billion to $2 billion during a fundraising round in June 2022.
Mohalla Tech’s financial performance reflects significant efforts to reduce losses and grow revenue. With a large user base and increasing contributions from live-streaming and advertising, the company remains a prominent player in India’s social media landscape. However, challenges like reduced valuation and operating losses underline the need for sustainable growth strategies.
