ShareChat slashes EBITDA losses by 67%, eyes IPO within two years

New Delhi: Homegrown social media company ShareChat on Tuesday said its adjusted EBITDA losses fell by 67% year-on-year to Rs 793 crore in FY24, amid 33% growth in revenue.

The company further said it is on track for a cash breakeven by March 2025.

The company's co-founder and CEO Ankush Sachdeva, shared on LinkedIn, "And since March '24, progress has accelerated even further. We’re now on track to become cash flow positive in 6 months with an annual revenue of Rs 800+ crore."

With improved financial metrics, the company expects to start investing back into growth and is on "actively" lookout for inorganic opportunities through acquisitions. Organic growth will happen through the expansion of the user base and increasing revenue per user. 

ShareChat has social media brands such as ShareChat app and Moj under its portfolio.

While the company is sufficiently capitalised for now, it is looking at "adding more people to the cap table ahead of preparations for the IPO journey." 

It is eyeing timelines of 18-24 months for a possible IPO, depending on market conditions.

"We will try and do one more funding round before we do IPO...possibly next year... but we don't need capital, so we will time it based on interest in the market," Manohar Singh Charan, Chief Financial Officer, ShareChat and MOJ said at a briefing.

ShareChat said it has posted a 33% Y-o-Y growth in revenue to Rs 718 crore in FY24. This is up from Rs 540 crore it clocked in FY23.

"ShareChat also made significant strides in reducing losses as adjusted EBITDA losses fell by 67% from Rs 2,400 crore in FY23 to Rs 793 crore in FY24," the company said in a statement.

ShareChat is expecting EBITDA losses for FY25 to be nearly one-third of FY24 and the consolidated business to start generating positive cash flow by early FY26.

For FY24, ShareChat’s advertising revenue registered a growth of 23% Y-o-Y, touching Rs 315 crore "despite a challenging macroeconomic landscape".

The livestreaming segment recorded a 41% Y-o-Y uptick to Rs 402 crore for the fiscal year 2024.

The surge was driven by continued growth momentum in paying user count across both ShareChat and Moj platforms, the company said.

Sachdeva said, "We’re now shifting from "𝐬𝐮𝐫𝐯𝐢𝐯𝐚𝐥 𝐦𝐨𝐝𝐞" to "𝐛𝐮𝐢𝐥𝐝 𝐦𝐨𝐝𝐞", unlocking new opportunities to innovate for our communities on ShareChat and Moj."