ShareChat Eyes $400 Mn IPO After Turning Operationally Profitable

Mohalla Tech, the parent of social networking platform ShareChat, short-video app Moj and micro-drama platform QuickTV, is planning to raise up to $400 million (around ₹3,815 crore) through an initial public offering (IPO) targeted over the next four to five quarters, according to a Bloomberg report.

The proposed IPO comes after the company turned operationally profitable in the first quarter of FY27, marking a turnaround following years of cost-cutting, restructuring and layoffs undertaken after venture funding slowed post-pandemic.

"Our unit economics has now turned positive. We will aim to list over the next four or five quarters," Chief Financial Officer Manohar Charan told Bloomberg News in an interview. He added that the IPO plans remain subject to change.

Operational Turnaround Strengthens IPO Plans

The company said it has achieved operational profitability after streamlining its business, exiting unprofitable initiatives and ensuring revenue exceeds the cost of serving users.

According to Bloomberg, ShareChat's annual revenue has crossed ₹1,000 crore (about $105 million) and is currently running at an annualised pace of nearly ₹1,336 crore ($140 million), with revenue growing by more than 30%.

Backed by investors including Lightspeed and Tiger Global, the company operates ShareChat and Moj, which together have around 150 million monthly active users. Its subscription-based micro-drama platform QuickTV has around 3 million subscribers.

Micro-Dramas Become Key Growth Driver

A major contributor to the company's recovery has been its focus on micro-dramas, short episodic stories often lasting around a minute that have emerged as one of India's fastest-growing digital entertainment formats.

Citing venture capital firm Lumikai, Bloomberg reported that India's micro-drama market is expected to grow at a compound annual growth rate of 31% to reach $4.5 billion by 2030.

ShareChat estimates that around 65 million users watch micro-dramas across its platforms every month, representing nearly two-thirds of India's audience for the format. According to the company, users consume more than 700 million micro-drama episodes every day.

The company has positioned its platforms as regional-language alternatives to Meta-owned Facebook and Instagram, with a strong presence across smaller towns and cities.

AI To Improve Margins

Artificial intelligence has become central to ShareChat's business strategy, powering content recommendations, moderation, advertising and personalised user experiences.

The company is also using generative AI to reduce the cost of producing micro-dramas and plans to expand its in-house AI studio.

Charan told Bloomberg that AI-led efficiencies could improve the company's margins by 5% to 7% over the next two years, supporting its profitability ahead of the planned public listing.