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Decoding ShareChat’s financial performance in FY24

Entrackr · 15d

Fintrackr All Stories Decoding ShareChat’s financial performance in FY24 ShareChat’s revenue from operations grew 29.9% to Rs 718.1 crore during the fiscal year ending March 2024 as compared to Rs 552.73 crore in FY23. Mohalla Tech, the parent entity of ShareChat and Moj, claimed 33% year-on-year growth in FY24, but didn’t disclose net losses, showing adjusted EBITDA instead. Entrackr reviewed financials to provide details. Revenue from operations was Rs 718.1 crore in FY24 versus Rs 552.73 crore in FY23. Live streaming or chatroom revenue contributed 56.1% of total operating revenue, growing 41.4% to Rs 403 crore. Advertising revenue increased 23.5% to Rs 315.37 crore. The company generated Rs 12.52 crore via Jeet 11 before it shut down in December 2022. Additionally, Rs 28.98 crore came from interest and gains on financial assets, bringing total revenue to Rs 747.08 crore in FY24. Employee benefits, the largest cost, accounted for 21.9% of expenses, falling 16.8% to Rs 580.39 crore from Rs 697.96 crore. Cost-cutting measures included laying off 700 employees and reducing server rent by 45.3% to Rs 559.57 crore. Finance costs rose 50% to Rs 510.57 crore due to debt. Provision for doubtful assets and loans increased 102% to Rs 402.56 crore. Overall, expenses declined 33.2% to Rs 2,644.71 crore from Rs 3,958.75 crore. ShareChat’s losses decreased 41.4% to Rs 1,898.94 crore in FY24 from Rs 3,240.83 crore in FY23. Adjusted EBITDA loss was Rs 777.84 crore versus Rs 2,342.11 crore. Outstanding losses were Rs 12,438 crore. Operating cash outflows improved 68.3% to Rs 964.96 crore. The EBITDA margin improved to -183.50%. The company spent Rs 3.68 for each rupee of operating revenue earned. By the end of FY24, cash and bank balances were Rs 36.2 crore, with total current assets at Rs 128.96 crore. In 2024, $65 million was raised in debt across two tranches. ShareChat has secured around $1.3 billion from investors, including Twitter (now X), Alkeon Capital, Moore Strategic Ventures, and Tencent. Non-current liabilities rose from Rs 4,810.17 crore to Rs 5,401.44 crore. The company had Rs 357.78 crore in dues to creditors and micro-enterprises and small enterprises. Reliance on external funding for working capital is necessary due to losses, debt, and limited cash. Disclaimer: Bareback Media has recently raised funding from investors possibly involved in competing businesses or associated with companies covered in our reporting. This does not influence our coverage in any manner.