ShareChat is no longer trying to be India’s answer to Meta. Its parent, Mohalla Tech, is rebuilding the company around short-form, serialised video—especially micro-dramas—and using that shift to make the case for a possible $400 million IPO.
The question for public investors is whether this is a durable turnaround or simply a smaller, cheaper version of a business that once raised more than $1.2 billion.
The IPO plan
Mohalla Tech’s co-founder and CFO Manohar Charan told Bloomberg in July that the company was targeting a listing within four to five quarters. It was considering an IPO of up to $400 million, though the plan was not final. Bloomberg reported the IPO plan.
The company said it became operationally profitable in Q1 FY27. It also said it crossed ₹1,000 crore in revenue in FY26 and was running at an annualised pace of up to ₹1,400 crore, growing more than 30%. Inc42 reported the revenue figures. That is a major improvement from FY25, when operating revenue was ₹723 crore and adjusted EBITDA loss was ₹219 crore. Entrackr reported the FY25 numbers.
But the turnaround is not complete. “Operationally profitable” does not mean net profitable, and the company still needs to prove that its new revenue engine can cover content, marketing, depreciation, and debt costs.
What changed
ShareChat’s original model was social networking and short video. It operated ShareChat, a vernacular social platform, and Moj, a short-video app.
That business was expensive. User acquisition, content moderation, cloud costs, and creator incentives consumed cash faster than advertising revenue could grow.
The company cut staff, shut unprofitable ventures and focused on improving unit economics. Charan told Bloomberg that the company’s unit economics had turned positive. Bloomberg reported his comments.
The result was a sharp reduction in losses. Adjusted EBITDA loss fell 72% to ₹219 crore in FY25 from ₹793 crore in FY24. ShareChat’s announcement confirmed the reduction. But revenue barely moved. FY25 revenue rose only marginally from ₹718 crore to ₹723 crore. Entrackr reported the flat revenue trend. So the first phase of the turnaround was cost control. The second phase is growth—and that depends on micro-drama.
The micro-drama bet
Micro-dramas are short, episodic shows, usually lasting one to two minutes. They use cliffhangers to keep viewers watching and often monetise through subscriptions or paid episode unlocks.
ShareChat operates two routes:
- Free micro-dramas on ShareChat and Moj, monetised through advertising.
- QuickTV, a subscription app launched in May 2025.
QuickTV crossed 15 million downloads within four months of launch, with users spending nearly an hour a day on the app. Business Standard reported the launch and engagement figures. ShareChat says it has about 70 million monthly micro-drama users across its apps, consuming about 850 million episodes daily. Inc42 reported the engagement figures.
That makes micro-drama the company’s main growth story. ShareChat is no longer merely a social-media platform with an advertising business. It is becoming a content and subscription business.
Why subscriptions matter
Advertising can expand reach, but subscriptions are more valuable.
Micro-drama platforms typically monetise free viewers through advertising and paying viewers through subscriptions or paid unlocks. The latter is more likely to improve revenue per user and reduce dependence on advertising budgets.
Inc42 reported that ShareChat’s advertising business carries an approximately 90% margin, while effective subscription margins are 0–40% after marketing costs. About 2% of its users are paying subscribers, contributing about ₹200 per month, while free users generate about ₹100 per user per year from advertising. Inc42 reported the monetisation model.
That explains why QuickTV matters. Free micro-drama can expand reach, but subscriptions are more likely to improve revenue per user.
India’s micro-drama market is still small but growing. Lumikai estimated the category at $300 million in 2025, with 100 million monthly active users and 17 million paying users. Business Today reported the market estimate.
The challenge is monetisation. Micro-drama users spent about 60 minutes a day on such apps, close to OTT users’ 78 minutes. But average revenue per paying user was about $15, compared with $35 for OTT services. Business Today reported the monetisation gap.
The content-cost problem
Micro-drama is not a social network. It needs a continuous supply of new shows. That means ShareChat must pay for scripts, production, actors, editing, dubbing, localisation and marketing. If it does not keep releasing engaging content, users will stop watching.
ShareChat is investing 75% of its investments into growing its micro-drama offerings. YourStory reported co-founder Bhanu Pratap Singh’s comment. Mohalla Tech has also said it will invest up to ₹100 crore through 2026 to scale AI-generated micro-drama production. PTI reported the investment.
The company expects AI-assisted production to reduce overall production costs by about 70%, up from the roughly 40% reduction already achieved through existing AI workflows. Business Standard reported the cost-reduction target. Charan has said the company’s in-house generative-AI studio could expand margins by 5–7% over the next two years. Kotak Neo reported his comment.
That is a management expectation, not a verified outcome. AI can reduce scripting, dubbing, editing and localisation costs. But it cannot guarantee better stories, stronger retention or lower marketing costs. If content quality falls, subscription growth may suffer.
Kuku Technologies shows both the opportunity and the challenge. Its FY26 revenue rose more than six times to ₹1,484 crore, and the company turned profitable, but growth required heavy marketing investment. Inc42 reported Kuku’s results.
That is the micro-drama dilemma: growth can be bought, but retention and profitability are harder to earn.
The private-market problem
ShareChat’s IPO plan also has to overcome its private-market history.
The company raised $1.2 billion cumulatively and was valued at $5 billion in 2022. Its investors included Google, Temasek, Lightspeed, Tiger Global, Snap and Twitter. ShareChat announced the $5-billion valuation.
In April 2024, Mohalla Tech raised $49 million through convertible debentures. The round came as the company’s valuation fell from $5 billion in 2022 to below $2 billion; contemporaneous reporting put the proposed down-round valuation at about $1.5 billion. ShareChat announced the convertible-debenture round; Entrackr reported the valuation context. A $400-million IPO would be significant, but it would not erase the valuation gap. Public investors will focus on whether the company can grow without returning to heavy cash burn.
What the competition shows
ShareChat is entering a crowded content market.
Pocket FM reported FY25 revenue of ₹1,768 crore, up 68% year on year. The Economic Times reported the revenue.
But Pocket FM shut its micro-drama vertical, Pocket TV, in June 2026 to focus on its core audio business and overseas expansion. Inc42 reported the shutdown.
That is a warning. Getting users to watch micro-dramas is not the same as retaining and monetising them.
Kuku Technologies is doubling down on content-led growth. Its FY26 revenue rose to ₹1,484 crore, driven mainly by subscriptions, and the company turned profitable despite heavy marketing investment. Inc42 reported the results.
Conclusion
ShareChat has changed. It has cut losses, improved unit economics, and shifted from social networking to micro-drama.
But the IPO case rests on whether micro-drama can create durable revenue. The company’s FY25 loss reduction came alongside flat revenue. Its FY26 growth depends heavily on QuickTV, subscriptions, and content investment. Mohalla Tech is no longer only a social-media company. It is becoming a micro-drama and attention business. The DRHP will show whether that business can support a $400-million public-market debut.
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