ShareChat's parent company reports maiden revenue of Rs 9.38 cr in FY20
The company earned Rs 8.92 crore from advertisements and Rs 45 lakh from e-commerce related services
Bengaluru-headquartered Mohalla Tech, the parent company of Indian language social media platform ShareChat and short video platform Moj, has reported maiden revenue from operations of Rs 9.38 crore in FY20. The company had reported nil revenue from operations in FY19 and FY18.
The company earned Rs 8.92 crore from advertisements and Rs 45 lakh from e-commerce related services, according to regulatory filings accessed by VCCircle. As part of its e-commerce push, the company had acquired social commerce platform Elanic in February 2020.
The company’s total income in FY20 grew to Rs 38.12 crore from Rs 25.63 crore in the previous fiscal. The company's FY20 loss has ballooned to Rs 676 crore, a 22% increase over the previous fiscal, due to a sharp jump in finance and employee benefit expenses.
In its FY20 filing, the company didn't mention its marketing expenses while stating that it was incurring significant marketing expenses to acquire market share and engage more users on its platform. In FY19, the sales and marketing expenses stood at Rs 306 crore, as per media reports.
The report also mentioned that the company has received a term loan of $60 million from existing investor Twitter Ventures, the venture capital arm of the social media platform. Twitter Ventures can convert the term loan to preference shares at a later date.
In September 2020, ShareChat had raised $40 million funding from investors including Twitter Inc and Lightspeed Ventures in its Pre Series E round. The round also saw participation from SAIF Partners and India Quotient. The Pre Series E round took the company's total funding to $264 million.
The funding will be used to grow its new short video app Moj besides product development, bringing more creators to the app, and establishing partnerships with music labels to allow users to add more tracks.
In August 2019, the company had raised $100 million in a Series D round led by Twitter. Existing investors Shunwei Capital, Lightspeed Venture Partners, SAIF Capital, India Quotient, and Morningside Venture Capital had also participated in the round.
ShareChat claims to have more than 160 million monthly active users (MAUs) while Moj has garnered over 80 million MAUs with users spending an average of about 34 minutes on the platform. Moj has also surpassed 100 million downloads on Google Play Store.
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