ShareChat Eyes $400M IPO after Achieving Profitability Milestone, Targeting Next Year's Listing

ShareChat Eyes $400M IPO after Achieving Profitability Milestone, Targeting Next Year's Listing​

Mohalla Tech Pvt., the parent company behind social networks like ShareChat and short-video platform Moj, is planning a major public market listing seeking up to $400 million in capital. The goalpost for the planned Initial Public Offering (IPO) has been set for next year, following a period of significant operational restructuring and cost reduction by the firm.

The CFO, Manohar Charan, confirmed that ShareChat achieved operational profitability in the quarter beginning April 2026. He stated that "Our unit economics has now turned positive" and indicated the company aims to list within the next four or five quarters.

Financial Reversal After Cost-Cutting Phase​

This planned IPO and the achievement of profitability mark a sharp reversal for ShareChat. In recent years, the company focused heavily on cost mitigation and staff reduction as venture funding dried up after the Covid pandemic. By sidestepping unprofitable product bets, the firm successfully reworked its business model to ensure that revenue surpassed the cost of serving each user.

The annual revenue of ShareChat, which is backed by LightSpeed and Tiger Global, has already exceeded 10 billion rupees (or $105 million). The company's annualized pace currently stands at up to 14 billion rupees, showing a growth exceeding 30%.

Micro-Dramas Fuel Massive User Growth​

A crucial driver behind ShareChat’s rapid recovery is the rise of micro-dramas. These serialized stories, delivered in short episodes as brief as 60 seconds, have emerged as one of India's fastest-growing digital entertainment formats. The mobile-first format is projected by venture fund Lumikai to grow at a compound annual growth rate of 31% to $4.5 billion by the end of 2030.

ShareChat estimates that its platforms currently serve approximately 65 million monthly micro-drama viewers, representing about two-thirds of the Indian audience for this specific content format. Charan reported that users across ShareChat and its related applications watch over 700 million micro-drama episodes daily.

User Base and Market Differentiation​

In terms of reach, ShareChat and Moj collectively boast about 150 million monthly active users. The subscription service, QuickTV, contributes 3 million subscribers to the portfolio. While these platforms compete directly with Meta Platforms Inc.’s social apps, they have uniquely carved out a following in India’s smaller towns and cities.

This differentiation is critical because regional language content remains a key advantage over global giants like Facebook or Instagram. Artificial intelligence already powers several aspects of their service, including advertising, content moderation, personalized content delivery, and content recommendations.

AI Focuses on Efficiency and Margin Expansion​

The use of artificial intelligence within the company extends to lowering the cost associated with producing micro-dramas. Charan confirmed that ShareChat plans to ramp up its internal generative AI studio capabilities. This technological expansion is expected not only to support growth but also to expand margins by 5% to 7% over the next two years.