ShareChat FY24 revenue up 33% to Rs 718 cr on back of ads, livestreaming

ShareChat has reported a 33% year-on-year growth in consolidated revenue for the fiscal year 2024, reaching Rs 718 crore, up from Rs 540 crore in FY23. This growth trajectory is indicative of the broader surge in advertising revenues among Indian startups and tech companies, as the digital advertising market continues to expand rapidly.

ShareChat's advertising revenue specifically saw a 23% increase, climbing to Rs 315 crore. This growth was largely attributed to strategic diversification within its client base, particularly targeting sectors like FMCG and mid-market advertisers. As noted by Ankush Sachdeva, CEO and co-founder of ShareChat, “Over the past few years, we have been successful in cutting our costs significantly and ramping up our revenue. This, coupled with our strategic investment in product development and state-of-the-art recommendation engine, has charted our path to profitability.”

This performance aligns with the overall trend observed in India's digital advertising sector. Major players such as Google, Meta, Amazon, and Flipkart collectively generated over Rs 60,000 crore in ad revenues during FY24, marking a 9% increase from the previous year. Google India reported an 11% growth to reach Rs 31,221 crore, while Meta saw a 24% rise, totalling Rs 22,730 crore. Flipkart’s ad revenue surged by an impressive 50%, nearing Rs 5,000 crore, showcasing the robust demand for digital advertising across various platforms.

Moreover, ShareChat's livestreaming segment experienced a substantial 41% uptick, contributing Rs 402 crore to its revenue. This increase reflects a strong momentum in the user base across both ShareChat and its short video platform Moj. The Moj app has reportedly achieved operational profitability by covering all costs except employee salaries and is expected to reach full profitability by the end of FY25.

In terms of financial health, ShareChat has made significant strides in reducing its adjusted EBITDA losses by 67%, from Rs 2,400 crore in FY23 to Rs 793 crore in FY24. The company aims to cut these losses further by nearly one-third in FY25, with expectations of generating positive cash flow by early FY26.

Sachdeva highlighted this progress: “If you were to look at the standalone P&L of ShareChat app, that is at 15% positive. MOJ is contribution positive.” This focus on profitability comes at a time when many tech companies are reassessing their growth strategies amid economic uncertainties.

As India’s digital ecosystem matures, ShareChat’s performance exemplifies the potential for growth within the sector. With its focus on profitability and strategic investments in product development, ShareChat is well-positioned to capitalize on the expanding digital advertising market.