ShareChat clocks revenue of INR 347 Cr in FY22; Spent INR 9.82 for INR 1 earned

ShareChat’s holding company “Mohalla Tech Pvt Ltd” was founded in Jan 2015 by three friends in Bangalore. The company was established as a content-sharing application and then developed into a content-creation platform. In Feb 2020, the company launched its own gaming platform Jeet11, a fantasy sports and skill-based games platform for real money. 

As per the audited financial statements of the company, the total revenue of the company was at INR 347 crores by the end of FY22.

The company receives most of its revenue from advertising on its platform, the revenue from such advertisements was INR 212.2 crores during FY22. Its operating revenue also includes an amount of INR 120.5 crores the company earned from the in-app purchases of ShareChat coins for its chat rooms.

And, the company also earns revenue from its gaming platform, interests, and a few other sources of non-operating revenue. They earn INR 14.24 crores from the gaming platform. They also earned INR 72.3 crores from interest on their investments and from other non-operating revenue sources. The total revenue of the company stood at INR 419 crores by the end of FY22.

On the expenses sheet, the expenditure on business development like customer acquisition and technology-related costs is the major cost incurred by the company, which was around INR 1143 crores at the end of FY22.

With the rise in its scale, the company had to bear more expenses in areas like employee expenses, content development, and all. The company has spent INR 845 crores on employee benefits which also includes INR 73.8 crores of ESOP.

During the same period, the company also spent INR 422 crores on its content development and INR 70 crores on legal fees. ShareChat has also incurred a cost of INR 78.67 crores on platform service fees, communication, distributor support, analytics, and a few other costs.

All these expenses took the total expenditure to INR 3407 crores in FY22. 

With the rise in total expenditure and revenue, the company ended its business operations with a loss of INR 2988 crores in FY22. As per financial analysis, the financial ratios of the company’s EBITDA margin and ROCE improved to -685.82% and -69.35% in FY22. The company’s cost-revenue ratio is 9.82:1, which means the company has spent INR 9.82 for every INR 1 it earned.

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