The parent company of the short video entertainment app Moj and the vernacular social media platform ShareChat, Mohalla Tech, recently reported a 33% year-over-year growth in FY24. But instead of revealing net losses, the Bengaluru-based company displayed adjusted EBITDA.

To decipher the full financial information and other significant elements, Entrackr has combed through the company's financial accounts. According to its consolidated financial accounts submitted to the Registrar of Companies, ShareChat's operating revenue increased 29.9% to Rs 718.1 crore in the fiscal year that ended in March 2024 from Rs 552.73 crore in FY23.

Operating mobile software programs under the names and styles "ShareChat" and "Moj," Mohalla Tech allows users to create, consume, and share a variety of quotes, videos, photographs, news, and other information. 56.1% of the company's total operating revenue came from live streaming or chat rooms, which increased by 41.4% to Rs 403 crore in FY24. Advertising revenue increased by 23.5% to Rs 315.37 crore.

Through the online fantasy sports website Jeet 11, which closed in December 2022, the organization made Rs 12.52 crore last year. The company's total revenue for FY24 was Rs 747.08 crore after it additionally received Rs 28.98 crore from interest and gains on financial assets.

Regarding expenses, employee benefits accounted for 21.9% of total spending, making it the largest cost center. From Rs 697.96 crore in FY23 to Rs 580.39 crore in FY24, this expense decreased 16.8%. In FY24, the cost also includes an ESOP expense of Rs 131.95 crore. The company implemented a number of cost-cutting initiatives and laid off 700 workers in two stages in 2023. Given that the company laid off 5% of its workforce in August 2024, this cost is anticipated to be substantially decreased in FY25.

Notably, in FY24, server rent expenditures decreased by 45.3% to Rs 559.57 crore. Due to its high loan interest payments and financial leverage, ShareChat's financing costs increased by 50% to Rs 510.57 crore during that time.

Additionally, in FY24, the company booked Rs 402.56 crore under the provision for doubtful assets and loans, a 102% increase over FY23. Its overall expenses decreased from Rs 3,958.75 crore in FY23 to Rs 2,644.71 crore in FY24, a 33.2% decrease.

ALLOCATION OF EXPENSE

Note: When determining the costs and losses for FY23, we did not include the Rs 1,903 crore cost of the non-cash amortization of intangible assets. This resulted from the balance being written down in MX TakaTak's optionally convertible debentures. Following a sensible cut in costs and a respectable expansion in scope, ShareChat's losses decreased 41.4% to Rs 1,898.94 crore in FY24 from Rs 3,240.83 crore in FY23.

Even though the business's adjusted EBITDA loss increased to Rs 777.84 crore inIn contrast, the company's adjusted EBITDA loss increased from Rs 2,342.11 crore in FY23 to Rs 777.84 crore in FY24. Finance costs, depreciation, amortization, ESOP costs, provision of questionable assets, and foreign exchange losses are not included in this. Furthermore, in FY24, ShareChat's outstanding losses were Rs 12,438 crore.

During that time, the company's operating cash outflows also increased by 68.3% to Rs 964.96 crore. In FY24, the company's EBITDA margin improved to -183.50%. To generate one rupee of operating revenue, it had to spend Rs 3.68 per unit. The company's total current assets were valued at Rs 128.96 crore at the end of FY24, with cash and bank balances totaling Rs 36.2 crore.

Non-current liabilities grew from Rs 4,810.17 crore in FY23 to Rs 5,401.44 crore in FY24, indicating a slight increase in borrowings and a persistent reliance on outside finance. During the fiscal year, the corporation also owed Rs 357.78 crore in unpaid debts from creditors, microbusinesses, and small businesses. The business will need to rely on finance for working capital as a result of these losses, its high debt load, and its diminished cash reserves.

A credbile startup data analytics platform reports that ShareChat has raised around $1.8 billion from investors, including Tencent, Moore Strategic Ventures, Alkeon Capital, and Twitter (now X). It raised $65 million in debt in two installments in 2024.