Homegrown social media and content platform ShareChat has significantly narrowed its operating losses in FY25, cutting its adjusted EBITDA loss by 72% to ₹219 crore from the prior year.
The company says its core social media business turned cash-flow positive during the year.
Revenue in FY25 stood at ₹723 crore, up slightly from ₹718 crore in FY24.
What Drove the Improvement
1. Cost Discipline & Expense Cuts
ShareChat slashed total expenses by around 30% in FY25. The focus was on trimming non-core costs, especially marketing and overheads, to sharpen operational efficiency.
2. Leaner Operating Model
By concentrating on its core platforms and scaling back auxiliary spending, the business aimed for sustainable growth instead of unchecked expansion.
3. Stabilised Revenue Base
While growth has moderated, revenue held steady—with advertising and live streaming continuing to contribute meaningfully
4. Losses Still High, But Improving
Pre-tax losses in FY25 narrowed to ₹1,105 crore, compared to ₹1,898 crore in FY24. In FY24, ShareChat had reported much larger losses (adjusted EBITDA loss of ₹793 crore).
Context & Historical Trajectory
- In FY24, ShareChat saw an adjusted EBITDA loss of around ₹793 crore.
- The FY24 net pre-tax loss was about ₹1,898 crore.
- The revenue growth in FY24 was stronger: ~29–33% year-on-year, with revenue near ₹718 crore.
- ShareChat has been gradually shifting from a high cash burn model to a more sustainable financial posture.
In an earlier interview, CEO Ankush Sachdeva said the company had moved into cash flow positive territory and was targeting a future IPO within two years.
Key Takeaways for Stakeholders
- The 72% reduction in adjusted EBITDA loss is a major positive signal for investors and markets.
- Stabilising revenue while cutting costs is a necessary step before chasing aggressive growth again.
- The transition to cash-flow positivity for core operations suggests that the business model is maturing.
- Still, the road ahead involves scaling revenues, diversifying income streams, and improving margins.
- Market watchers will monitor how quickly the company can swing to a fully profitable net result and whether it can maintain this momentum.
