ShareChat bets big on micro-dramas as losses narrow, revenue grows marginally

Micro-dramas remain the top priority for homegrown social media platform ShareChat, with the short, episodic content format emerging as the startup's key growth driver for FY26.

Parent company Mohalla Tech has sharply reduced its adjusted EBITDA loss from ₹793 crore in FY24 to ₹219 crore in FY25, even as annualised revenue grew marginally to ₹723 crore.

In a virtual briefing with CNBC-TV18, Co-Founder and CFO Manohar Charan Singh said, "Almost 70-75% of our growth investments will be dedicated to micro-dramas, with a target of achieving a substantial ROI on this vertical by FY27."

QuickTV, ShareChat's micro-drama app launched earlier this year, has already crossed 15 million downloads. Singh added that the startup will continue sourcing content from third-party creators and does not plan to include AI-generated content in the vertical for now.

ShareChat is also pivoting towards a mix of advertising and subscription as primary revenue streams—marking a shift from its earlier dependence on ad revenues. The change follows a fall in real-money gaming (RMG) ads after the government's August ban on RMG companies and the earlier GST hikes on the sector.

The subscription-led content play comes amid growing competition in the micro-drama space. ShareChat, however, believes its distribution strength is a differentiator. "India’s micro-drama space has no player offering distribution like us. Subscription will be a new revenue line item in FY27, followed by live streaming," Singh said.

The company's QuickTV push coincides with its main social media and short-video platforms achieving operational breakeven in FY25. Annualised revenue has crossed ₹1,000 crore, up 30% year-on-year, while employee costs have fallen 20%.

Audited financials show that net losses narrowed 40% to ₹1,105 crore, alongside lower overall expenses, reflecting tighter cost control.

As India's digital revenue market expands, ShareChat faces twin challenges—competing with homegrown rivals and global giants like YouTube, which dominate user time in short video. Sustaining profitability while scaling new revenue streams will be the next test. The company projects 30% revenue growth and potential EBITDA breakeven in FY26.

For now, ShareChat's FY25 turnaround places it among the few Indian internet startups on a credible path toward sustainable scale.Read about our editorial guidelines and ethics policy