ShareChat (Mohalla Tech) reports 900 million daily views for its microdramas, which now account for 30% of total revenue. As the company eyes a $400 million IPO in the coming year, its pivot to AI-driven short-form content has helped it achieve operational profitability in Q1 FY27.
ShareChat, operated by Mohalla Tech, has established microdramas as a central pillar of its business model, with the short-form narrative content now contributing approximately 30% to the company's overall revenue. The platform reports 900 million daily views for its microdrama catalog, with users spending an average of 55 minutes daily on the format, according to company data.
This shift in strategy comes as the company prepares for a potential public listing. ShareChat is planning an initial public offering (IPO) of up to $400 million, which is targeted for the next four to five quarters. Having navigated a period of cost restructuring and efficiency improvements, the company achieved operational profitability in the first quarter of fiscal year 2027 and has maintained cash flow positivity since early 2025.
AI-Led Production and Cost Strategy
To scale this content vertical, ShareChat has committed an investment of ₹100 crore toward artificial intelligence. This capital is being deployed to enhance production workflows and content recommendation engines. Currently, AI-generated content accounts for 10% to 15% of the company's microdrama output, a figure management intends to grow to 30%. By adopting AI, the company reports it has already reduced production costs by approximately 40%, with a long-term goal of achieving up to 70% cost savings as its models mature.
This move toward proprietary intellectual property allows ShareChat to move beyond standard advertising. The company is collaborating with brands to develop custom microdrama series, achieving video-through rates of 80% to 85% for ads within these narratives. This strategy is designed to create a more resilient revenue stream compared to traditional ad-inventory models, which can be sensitive to sector-specific volatility.
Competitive Landscape and Risks
While the company has reached operational profitability, it continues to operate in a highly competitive digital media environment. ShareChat faces persistent pressure from global platforms like Instagram and YouTube, which command significant user attention and ad budgets. Maintaining user engagement levels will be critical to sustaining the 30% revenue contribution from microdramas.
As the company moves toward its proposed IPO, potential investors will likely track whether it can maintain its profit margins while scaling content production. The success of its AI-driven efficiency targets and its ability to defend market share against better-capitalized global competitors remain key variables for the company's financial outlook. The IPO timeline itself remains subject to broader market conditions and regulatory clearance, which will be the primary monitorable for the business in the coming quarters.