ShareChat operator Mohalla Tech is betting on micro-dramas to power its next phase of growth, after two years of cost-cutting and restructuring. Moving beyond its reliance on user-generated content, the Bengaluru-based company has rolled out short, professionally produced serials on its platforms to hook users and attract advertisers in regional markets.
“The initial user reaction has been phenomenal, and I think it’s not just a new format but a big cultural shift,” Neha Markanda, chief business officer at Mohalla Tech, told FE in an interaction. She added that users are already spending upwards of 55 minutes a day on the new content, generating close to 150 million daily views.
Micro-dramas surge in China
Micro-dramas, which are typically one-to-two minutes long, have grown in popularity in China on platforms like Douyin, Kuaishou, ReelShort and DramaBox. Industry reports suggest the format is set to overtake the country’s domestic box office in revenues this year. In India too, startups such as Flick TV, Kuku TV and Eloelo have adopted the format with backing from venture capital investors.
In May, ShareChat launched QuickTV, a subscription-based app for premium dramas, which has already crossed 10 million downloads. It is also streaming lower-budget titles on Moj, its short-video app, supported by advertising. On Moj, micro-dramas are drawing around 20 million monthly active users. Across both platforms, the company now offers more than 50 titles in four regional languages and plans to double that library in the next three-to-four months.
ShareChat aims for regional growth
Markanda, who joined as CBO recently, is positioning the push as a way to deepen ShareChat’s appeal with advertisers. “My big focus is unlocking growth for brands in regional markets because we are a very strong and formidable digital platform in these regions,” she said. Out of its 325 million users, about 200 million are currently monetisable. The pivot comes as Mohalla Tech sharpens its focus on profitability. ShareChat’s main app has turned profitable with a 15% Ebitda margin, but Moj continues to post losses due to the high costs of video streaming. The company hopes subscription income and fresh ad spending around dramas can strengthen its financials.
Beyond advertising, ShareChat earns through virtual gifting, allowing users to buy digital tokens for creators. This model contributed Rs 403 crore to operating revenue in FY24, ahead of Rs 315.4 crore from advertising. Total operating revenue grew 30% to Rs 718 crore, while losses narrowed by 41% to Rs 1,898.9 crore