Mohalla Tech Pvt., the Bengaluru-based parent company behind popular Indian social media platforms ShareChat, Moj, and the micro-drama service QuickTV, is reportedly planning to raise up to $400 million through an initial public offering (IPO) next year. This move follows the company's recent achievement of operational profitability in the first quarter of the financial year beginning April 2026.
The announcement signals a notable turnaround for ShareChat, which, like many venture-backed Indian startups, faced significant financial pressures after the COVID-19 pandemic-era funding boom concluded. The company undertook extensive cost-cutting measures, including layoffs and discontinuing unprofitable products, to improve its unit economics.
ShareChat's Path to Profitability and Public Offering
Manohar Charan, ShareChat's Chief Financial Officer, confirmed to Bloomberg News that the company's unit economics have turned positive, with a listing targeted within the next four to five quarters. While the IPO plans are currently preliminary and subject to change, the company's shift to profitability is a crucial step toward its public market debut.
ShareChat's strategic recalibration focused on ensuring that revenue generated from users consistently exceeded the cost of serving them. This disciplined approach has been instrumental in reversing its financial trajectory.
Revenue Growth and Strategic Shifts
The company's annual revenue has surpassed Rs 1,000 crore, with current annualized revenue running as high as Rs 1,400 crore, demonstrating a growth rate exceeding 30%. Investors in Mohalla Tech Pvt. include prominent venture capital firms such as Lightspeed and Tiger Global.
A key factor in ShareChat's recovery and growth has been the burgeoning popularity of micro-dramas. These short, serialized stories, often consumable in episodes as brief as 60 seconds, have emerged as a rapidly expanding segment within India's digital entertainment landscape.
Micro-Dramas Fueling User Engagement
Industry projections from venture capital firm Lumikai indicate that the domestic micro-drama industry is poised for substantial growth, with a compound annual growth rate (CAGR) of 31%, potentially reaching $4.5 billion by 2030. ShareChat has strategically capitalized on this trend, estimating that its platforms reach approximately 65 million monthly micro-drama viewers, accounting for nearly two-thirds of the format's total Indian audience.
Across ShareChat and its associated applications, users collectively watch more than 700 million micro-drama episodes daily. The company's primary platforms, ShareChat and the short-video app Moj, together boast around 150 million monthly active users. Additionally, QuickTV, ShareChat's subscription-based micro-drama application, serves about 3 million subscribers, further solidifying its presence in this high-growth content area.