ShareChat parent Mohalla Tech cuts losses by 72% in 2025

Mohalla Tech, the parent company of ShareChat and Moj, narrowed its adjusted Ebitda loss by 72% year-on-year to 219 crore rupee (US$24.9 million) in FY25.

Operating revenue rose slightly to 723 crore rupee (US$82.1 million), while total expenses dropped around 30% to 1,862.1 crore rupee (US$211.6 million).

The company’s core social media business turned cash-flow positive, though new investments continued to weigh on profitability.

Ad revenue declined 8.1% to 290 crore rupee (US$32.9 million) due to higher GST on online real-money gaming and broader weakness in digital ads.

Streaming revenue increased to 434 crore rupee (US$49.3 million) from 403 crore rupee (US$45.8 million) .

Mohalla Tech invested over 70% of this year’s funds into micro dramas and launched its subscription-based app QuickTV in May 2025, which has surpassed 15 million downloads.

ShareChat also saw multiple senior departures this year, including its chief business officer.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Micro-drama economics still unproven despite download hype

ShareChat reports 15 million QuickTV downloads with one hour of daily use. It leaves out paid conversion rate, average revenue per paying user (ARPPU), and production costs that decide profit.
In China, the Motion Picture Association (MPA) argues that success hinges on tight control of distribution and monetization plus careful customer acquisition. Premium micro-dramas there often cost $400,000 to $600,000 each to produce 1.
Chinese platforms include ByteDance’s Red Fruit, a dedicated micro-drama app, and Tencent’s WeChat Video Accounts, a short-video feature inside the WeChat super-app. These services tie into social networks or payment rails. They source intellectual property (IP) from web novel platforms such as COL (a Chinese online literature platform), China Literature, and Tomato Novel 2.
ShareChat’s subscription business turns profitable by mid-FY27. High content costs and customer acquisition expenses may be squeezing margins, even with rising engagement.

RMG ad shock to reshuffle digital spend

Before the ban, India’s real-money gaming platforms put about Rs 4,500 crore a year into ads. Total RMG marketing spend was $2 billion 3.
The ban wipes out an ad stream for over-the-top (OTT) platforms. Losses may reach about Rs 2,000 crore a year 3.
Media buyers plus digital marketing executives expect budgets to shift toward esports (organized competitive video gaming) or social gaming (casual multiplayer games without real-money wagering). These categories sit outside the ban 4.
Global platforms such as Google, Meta, or YouTube face revenue hits from lower gaming ad buys during marquee tournaments 3.