ShareChat is shifting its strategy toward ad-supported microdrama content, aiming to capture a market projected to reach Rs 25,500 crore by FY32. The platform is leveraging recommendation algorithms and lower acquisition costs to compete, while planning future e-commerce integration within its video content.
ShareChat is refocusing its strategy on the emerging microdrama market, prioritizing recommendation algorithms and an ad-supported model to drive future revenue. The company, which operates the ShareChat and Moj platforms, aims to tap into a sector that is projected to grow from Rs 2,300 crore in FY26 to Rs 25,500 crore by FY32, according to data from research firm Redseer.
ShareChat CFO Manohar Singh Charan stated that as the cost of producing serialized content drops, the ability of recommendation algorithms to personalize and push content has become the primary driver of success. The platform currently reports that it serves 100 crore episodes daily, suggesting that its existing user base provides a strong foundation for this new content category.
The business model is transitioning from subscription-focused to ad-driven. ShareChat reports that its ad revenue per user is now higher than the cost of hosting and serving the content, which the company indicates is a step toward stable cash flow. Furthermore, ShareChat claims a competitive advantage in customer acquisition, stating it spends less than Rs 10 per download, compared to the Rs 40 or more typically spent by new market entrants.
Looking ahead, ShareChat plans to integrate e-commerce features into its microdrama content, a model that has seen success in international markets like China, effectively turning video streams into shopping channels. The platform projects that the daily active user base for its ad-supported microdramas will reach 140 million by FY32.
For investors and market analysts, the key monitorables will be the company’s ability to sustain this ad-based monetization, manage competition in the short-video space, and successfully scale its planned e-commerce features without significantly increasing operational costs. Historically, companies in the short-form content sector have faced challenges regarding high cash burn and the difficulty of converting massive user growth into stable, long-term profit. The company's future performance will depend on its ability to maintain these low acquisition costs while effectively monetizing its audience through advertising and integrated shopping.