ShareChat Plans $400 Million IPO After Achieving Profitability

Indian social media startup ShareChat is reportedly planning an initial public offering (IPO) worth approximately $400 million by next year. The company announced it surpassed ₹1,000 crore (over $1.6 billion) in operating revenue in fiscal year 2025-26 and achieved both EBITDA and net profitability in the first quarter of fiscal year 2026-27. This turnaround follows a period of significant challenges.

A few years ago, ShareChat faced slowing growth, mounting losses, and repeated layoffs, leading to questions about its long-term viability. The company's strategy has since shifted to focus on fewer, larger initiatives, tighter cost controls, increased investment in AI, and expanding its 'microdrama' content. Leadership decisions have also reshaped the organization to prioritize speed and accountability.

A key moment in the turnaround was the swift launch of its short-video platform, Moj, within 30 hours after TikTok was banned in India in June 2020. This demonstrated the company's ability to act decisively. The focus on profitability intensified as a funding slowdown prompted many startups to reassess strategies, leading ShareChat to cut costs and divest non-core ventures.

Artificial intelligence has been central to ShareChat's recent success, particularly in optimizing recommendation systems for microdramas, which has boosted user engagement. These microdramas contributed approximately ₹250 crore in revenue in FY25-26 and are projected to nearly double in FY26-27. Discovery of this content primarily occurs through social feeds, reducing customer acquisition costs.

Operating revenue reached an estimated ₹1,000 crore in FY25-26, while adjusted losses narrowed significantly from the previous year. Co-founder and CEO Ankush Sachdeva continues to lead the company, though co-founder Farid Ahsan has stepped away from daily operations.