Mohalla Tech, the parent company of ShareChat and Moj, is emerging from a difficult two-year stretch that tested its resilience and operational maturity. Backed by investors like Google, Temasek, Lightspeed, and Tiger Global, the company has now transitioned from a phase of high cash burn to sustainable revenue growth, with cash-flow positivity achieved in February 2025—a significant milestone in its 10-year journey.

From $30 Million Monthly Burn to Profitability

Back in late 2022, ShareChat was burning $30 million every month, and its future seemed uncertain. The social media startup, which once aggressively expanded using cheap capital, faced intense pressure due to rising costs, monetisation struggles, and top-level exits. However, under the leadership of CEO and Co-Founder Ankush Sachdeva, the company made tough decisions such as multiple rounds of layoffs, a revised monetisation strategy, and cost rationalisation to stabilise its financial position.

The results have been promising. As per FY24 data from Tracxn:

• Revenue rose to ₹718.1 crore, up 30% from ₹552.7 crore in FY23

• Net losses narrowed by 63% from ₹5,144.3 crore to ₹1,898.9 crore

• The company is no longer reliant on VC funds and operates entirely on its own revenue stream

IPO Plans and Strategic Focus on Growth

Having become cash-flow positive, Mohalla Tech is now aiming for an IPO in the next two years, according to Sachdeva. The goal is to transition from “survival mode to build mode,” with a stronger focus on sustainable revenue and operational scalability. The shift comes at a time when many Indian social media startups have faded due to poor monetisation and user retention issues.

Rebuilding on a Leaner, Smarter Business Model

The company's journey over the past two years included layoffs and leadership churn:

• ShareChat’s employee base was reduced from around 2,800 to just over 500

• It executed 3 to 4 rounds of layoffs, mostly due to performance metrics and financial stress

• Co-Founders Bhanu Pratap Singh and Farid Ahsan exited in 2023, although they still hold stakes

• CFO Manohar Charan was recently elevated to Co-Founder, and former TikTok executive Nitin Jain was appointed CTO in December 2024

Sachdeva confirmed no further mass layoffs are planned, with the company maintaining a steady leadership team and only minor performance-based exits anticipated going forward.

Monetisation: Ads, Longer Videos, and Live Streaming

To further its monetisation, ShareChat is pivoting its product formats and enhancing its ad capabilities:

• The focus is now on longer videos (around 1 minute), compared to the previous short-form 15 to 45-second formats

• Both ShareChat and Moj are investing in ad-targeting and feed personalisation engines, utilising AI and machine learning

• Live streaming is already a major revenue driver, and will be expanded further

• New formats like live community discussions and episodic content series are being tested to improve engagement and ad inventory

These innovations come in the backdrop of platforms like Koo, Chingari, and Mitron either shutting down or struggling, following the 2020 ban on TikTok which originally created a gap in the Indian short-video space.

No Fresh Funding Plans, But Open to Strategic Opportunities

While Mohalla Tech raised $49 million in venture debt in March 2024 from existing investors like Temasek, Google, Tencent, Lightspeed, and Tiger Global, the valuation was reduced to $1.5 billion, down from its 2022 peak of $5 billion.

Despite this markdown, Sachdeva is confident about the company’s future:

• “We are not actively raising funds. But if something comes that unlocks a large market opportunity, we’ll consider it,” he said.

• The company’s revenues are expected to double in the next three years, as per internal targets

With $1.2 billion raised so far in a mix of debt and equity, ShareChat is choosing frugality and focus over valuation hype.

AI and Tech to Drive the Next Phase

The next stage of ShareChat’s evolution will involve significant technology and AI deployment:

• Improvements in the feed recommendation engine for better personalisation

• Enhanced ad targeting using user behaviour data and AI models

• AI-powered content creation to support creator economy and drive engagement

These initiatives aim to build a scalable ad model, especially around videos and live formats, which are becoming the standard across platforms.

Leadership Stability and Cultural Rebuilding

A major challenge ShareChat faced was leadership instability. But that phase seems to be over:

• A steady leadership team is now in place

• CFO turned Co-Founder Manohar Charan and CTO Nitin Jain are expected to drive financial discipline and product innovation, respectively

• CEO Ankush Sachdeva remains the face of the company and is focussed on building long-term value

The company has adopted a leaner, performance-driven culture, which it believes is crucial for scalability and IPO readiness.

Final Outlook: A Comeback Story in the Making

ShareChat’s story is emblematic of India’s startup reset—from burning capital for growth to building sustainable, revenue-led businesses.

With a cash-flow positive status, AI-powered monetisation strategies, and a clear IPO roadmap, Mohalla Tech is redefining what success means for new-age internet companies in India.

If the company continues to hold course on technology upgrades, product innovation, and cultural stability, it may emerge as one of India’s few social media unicorns to go public successfully.

The Upcoming IPOs in this week and coming weeks are Wagons Learning, Srigee DLM, Manoj Jewellers.

The Current active IPO are Kenrik Industries, Arunaya Organics.

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