What ShareChat has learned too late like other startups!!

 SHARECHAT


ShareChat is a regional language social networking app that was created by Ankush Sachdeva, Bhanu Singh, and Farid Ahsan. These three people together founded ShareChat's parent company, Mohalla Tech Pvt Ltd, in January 2015. Their company is headquartered in Bengaluru. 


Being started in 2015, ShareChat allowed the development of user-generated material on its platform in 2016, enabling its users to share their own posters and original content. One of the unique features of ShareChat is its ability to share jokes, movies, GIFs, songs, and photographs in Indian regional languages including Hindi, Telugu, Malayalam, and Marathi.

They even launched the app Moj after the Indian government banned the Chinese app TikTok in 2020.


Similar to TikTok, the Moj app enables users to post videos up to 15 seconds long. In order to compete with Instagram Reels and YouTube Shorts, Mohalla Tech purchased MX Takatak from the Times Group.

According to the parent company, ShareChat has an average user time of 31 minutes daily, while Moj, the short video app, has the greatest monthly active user base. Moj receives over 4.5 billion views daily.

Owing to tight funding conditions, the company is planning to use the platform ShareChat and Moj to political advertising taking opportunity of the General Elections to be held in 2024 as well as for other state elections. This will help the company create an additional revenue stream.

The CEO Sachdeva said that they have started focusing more on how to get cash positive and profitable and he also mentioned that they have cut their monthly burn rate down by a third compared to the same time last year.

He is convinced on the narrative that it is not a good time to raise funding now and focus more on creating more revenue streams for the business. As per the latest news, ShareChat's valuation in May 2022 was $5 billion. Presently, the company's two main revenue-generating mechanisms are advertisements and micropayments for gifts.

From all of this development, we learnt that it is extremely important for startups or newly started companies to create strong revenue streams for their business and focus on profitability instead of fundings to thrive in the market.


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