The parent company of the ShareChat IPO is to come to the market soon. This parent company is Mohalla Tech Private Limited. The firm wants to raise up to 400 million dollars through an initial public offering. A report from Bloomberg stated that the company targets this share sale for next year.
The firm achieved a major financial milestone recently – Chief Financial Officer Manohar Charan stated that the company became operationally profitable. This profit happened in the first quarter of the financial year 2027 that began in April 2026. Further, the financial officer noted that the unit economics of the business are now positive.
The company wants to launch the public issue within the next four to five quarters. However, these share sale plans are not final yet. The management can change the details later.
This current profit marks a big shift for the company. The firm spent the last few years under a major business restructuring, and a long slowdown in venture capital funding forced the business to cut costs. The firm laid off workers during that time. The management also stopped expensive product experiments. Further, they changed the business model so that income stays higher than user service costs.
Revenue Sources and Growth Rates – The annual revenue of the company crossed ₹10 billion. This amount is equal to ₹1,000 crore or 105 million dollars. The annual revenue run rate touches nearly ₹14 billion or 1,400 crore now. This pace shows a growth rate of more than 30%.
The company earns money through multiple channels. These channels include advertisements and creator monetisation. The firm also makes money from digital content sales. Big venture capital firms back this company. LightSpeed and Tiger Global are among the main investors.
Furthermore, the company runs a group of different applications. It operates the social network app ShareChat and runs a short-video app named Moj. The two apps together have about 15 crore monthly active users and focus on regional language content that attracts users from small towns and cities in India. This aspect separates the apps from competitors like Meta Platforms.
The firm also runs a subscription platform for short videos called QuickTV that currently has 30 lakh subscribers.
Well, short serialized stories called micro-dramas are a major reason for the recovery of the firm. Each episode lasts for about 60 seconds. Venture fund Lumikai estimated that this format will grow at a compound annual rate of 31%. The format can become a 4.5 billion dollar market by the end of 2030.
The platforms of this company serve around 6.5 crore monthly micro-drama viewers. This number represents 2/3 of the total audience for this format in India. Users watch more than 70 crore micro-drama episodes daily on these apps.
Artificial Intelligence Investment – The company uses artificial intelligence for many regular tasks. AI helps the firm with content recommendations and moderation. It also helps with advertisements and content personalization.
Now the firm wants to use generative AI to decrease the cost of video production. The company will expand its internal generative AI studio. The financial officer stated that AI production can increase operating margins by 5 percent to 7 percent over the next two years.
Disclaimer: This article provides general news information about upcoming ShareChat IPO. Investors must not treat this content as financial advice for stock market investments.