ShareChat targets $400M IPO after turning profitable

Key Takeaways

• ShareChat plans to raise up to $400 million through an IPO in the next four to five quarters
• The company turned operationally profitable in Q1 FY27 after years of restructuring
• Revenue crossed ₹1,000 Cr in FY26 with an annualized run rate of ₹1,400 Cr

ShareChat's parent company Mohalla Tech is preparing for an IPO that could raise up to $400 million, CFO Manohar Charan told Bloomberg. The listing is targeted for the next four to five quarters, which puts it in FY28. This comes after the social media unicorn achieved operational profitability in Q1 FY27, a significant turnaround from the cost-cutting years that followed the 2021-22 funding boom.

"Our unit economics has now turned positive. We will aim to list over the next four or five quarters," Charan said. The company, which operates vernacular social platform ShareChat, short-video app Moj, and subscription-based microdrama service QuickTV, has spent the past two years restructuring aggressively to reach this point.

How did ShareChat reach profitability?

The path wasn't pretty. After raising over $1.2 billion from investors like Lightspeed, Tiger Global, Temasek, and Tencent during the boom years, ShareChat found itself burning cash at an unsustainable rate when funding dried up. The company responded with multiple rounds of layoffs, killed unviable product experiments, and overhauled its business model entirely.

The numbers show the shift. In FY25, ShareChat slashed its adjusted EBITDA loss by 72%, dropping from ₹793 Cr to ₹219 Cr. Revenue stayed flat at ₹723 Cr, but that wasn't the point. The focus was fixing unit economics first, then growing.

That strategy appears to be paying off. Revenue crossed ₹1,000 Cr in FY26, and the company now runs at an annualized pace of up to ₹1,400 Cr. Nine consecutive months of positive cash flow suggests this isn't a one-quarter anomaly.

What's driving the revenue growth?

Microdramas. The company's QuickTV platform now commands about 65 million monthly viewers who consume more than 700 million episodes daily. This short-form episodic content format, already popular across Asia, has become ShareChat's clearest growth engine.

ShareChat also made a strategic choice to stop fighting battles it couldn't win. Rather than competing head-to-head with Meta and YouTube for urban, English-speaking users, the company doubled down on India's vernacular internet. Regional language content and Tier 2-3 city users became the focus. The next 500 million Indian internet users won't primarily communicate in English, and ShareChat is positioning for that audience.

The company has also become ruthless about cutting failed experiments. Last month, Mohalla Tech shut down Vibely, its social discovery platform, just days after Apple removed it from the App Store over content moderation concerns. When something doesn't work, it goes.

Where does ShareChat fit in India's IPO pipeline?

The company joins a crowded queue. Startups like Aye Finance, Turtlemint, Shadowfax, Amagi, and Fractal have already gone public this year. OYO's parent PRISM filed its updated DRHP this week after receiving SEBI approval. Lending startup Fibe also filed draft papers for a ₹750 Cr IPO.

ShareChat's $400 million target would make it one of the larger consumer tech IPOs from the current batch. The company was valued at approximately $5 billion at its peak during the 2021 funding boom. Whether it can command that valuation in public markets remains an open question, particularly given the flat revenue growth in FY25 and the broader skepticism investors have shown toward social media businesses outside the major platforms.

What risks remain?

Revenue growth is the obvious one. The company's operating revenue was essentially flat between FY24 and FY25 at around ₹720 Cr. The jump to ₹1,000 Cr in FY26 is encouraging, but public market investors will want to see sustained growth, not a single good year after a plateau.

Content moderation is another concern. The Vibely shutdown came after Apple flagged moderation issues. For a company operating social platforms with tens of millions of users, one major content-related scandal could derail IPO plans entirely.

Competition isn't going away either. Instagram Reels and YouTube Shorts continue to dominate short-form video in India. ShareChat's vernacular focus is a defensible niche, but niche businesses often face ceiling questions from public market investors expecting large addressable markets.

Frequently Asked Questions

When is ShareChat planning its IPO?

ShareChat is targeting an IPO within the next four to five quarters, which puts the listing in FY28 (April 2027 to March 2028).

How much does ShareChat plan to raise in its IPO?

The company is targeting up to $400 million through its initial public offering.

Is ShareChat profitable?

ShareChat achieved operational profitability in Q1 FY27. The company reduced its adjusted EBITDA loss by 72% in FY25 and has reported nine consecutive months of positive cash flow.

What is ShareChat's current revenue?

ShareChat crossed ₹1,000 Cr revenue in FY26 and is currently running at an annualized revenue pace of up to ₹1,400 Cr.

Who are ShareChat's major investors?

ShareChat has raised over $1.2 billion from investors including Lightspeed, Tiger Global, Temasek, and Tencent.

Source: Inc42 Media / Shrishti Bisht