The Rise of Digital Titans: ShareChat and OneCard's Financial Surge
November 27, 2024, 4:47 am
In the bustling landscape of Indian tech, two companies are carving their names in bold letters: ShareChat and OneCard. Both are backed by formidable investors and are navigating the turbulent waters of the digital economy with remarkable agility. Their recent financial reports reveal a story of growth, resilience, and ambition.
ShareChat, a social media platform that has become a household name, reported a staggering 33% year-on-year growth in consolidated revenue. The numbers soared to Rs 718 crore, up from Rs 540 crore the previous fiscal year. This growth is not just a number; it’s a testament to the company’s strategic pivot towards livestreaming. The livestreaming segment alone surged by 41%, contributing Rs 402 crore to the revenue. This is a clear signal that the digital audience is hungry for real-time engagement.
The company’s advertising revenue also saw a healthy increase of 23%, reaching Rs 315 crore. This growth is attributed to a diversified client base, particularly in the fast-moving consumer goods (FMCG) sector. ShareChat has smartly tapped into mid-market advertisers, expanding its reach and influence. It’s a classic case of adapting to the market’s pulse.
On the profitability front, ShareChat has made significant strides. The adjusted EBITDA loss narrowed dramatically by 67%, dropping from Rs 2,400 crore to Rs 793 crore in FY24. This shift is not just about cutting costs; it’s about smart investments in product development and a robust recommendation engine. The company claims to be on the fast track to profitability, with an EBITDA margin exceeding 15%. The Moj app, a short video platform under ShareChat, is already operationally profitable, covering all costs except employee salaries. The goal? Full profitability by the end of FY25.
User retention is another feather in ShareChat’s cap. Improved feed ranking has reduced user acquisition costs to nearly zero. This is a game-changer in the competitive social media landscape. With over 325 million monthly active users, ShareChat is not just surviving; it’s thriving.
Meanwhile, OneCard, the fintech unicorn, is also making waves. The company, known for its innovative credit card platform, is raising $28.5 million in a bridge funding round. This latest round sees the entry of Better Tomorrow Ventures, alongside existing investors like Peak XV Partners and Z47. With this funding, OneCard’s valuation has climbed to $1.4 billion. It’s a remarkable feat for a company that only achieved unicorn status in 2022.
OneCard’s journey began in 2019 as a digital credit score platform. It quickly evolved, launching a mobile-first metal credit card that comes with no joining or annual fees. This strategic move has resonated with consumers, allowing OneCard to partner with major lenders like Bank of Baroda and IDFC First Bank. The company’s revenue from operations skyrocketed to Rs 541 crore in FY23, a significant leap from Rs 84 crore the previous year. However, the path hasn’t been without challenges. Net losses expanded to Rs 406 crore, driven by increased spending on employees and marketing.
Both ShareChat and OneCard are navigating the complexities of the digital economy with finesse. They are not just reacting to market trends; they are shaping them. ShareChat’s focus on livestreaming and user engagement is a clear indication of its commitment to innovation. OneCard’s foray into the credit card space demonstrates its understanding of consumer needs and market gaps.
The backing of prominent investors like Temasek and Tiger Global provides these companies with the resources to scale and innovate. This financial support is crucial in a landscape where competition is fierce and consumer preferences are ever-changing.
As these companies continue to grow, they are setting benchmarks for others in the industry. Their stories are not just about numbers; they are about vision, strategy, and the relentless pursuit of excellence.
In conclusion, ShareChat and OneCard are not just players in the digital arena; they are pioneers. Their financial successes reflect a broader trend in the Indian tech ecosystem, where innovation meets opportunity. As they continue to evolve, the world will be watching closely. The future is bright for these digital titans, and their journey is just beginning.
ShareChat, a social media platform that has become a household name, reported a staggering 33% year-on-year growth in consolidated revenue. The numbers soared to Rs 718 crore, up from Rs 540 crore the previous fiscal year. This growth is not just a number; it’s a testament to the company’s strategic pivot towards livestreaming. The livestreaming segment alone surged by 41%, contributing Rs 402 crore to the revenue. This is a clear signal that the digital audience is hungry for real-time engagement.
The company’s advertising revenue also saw a healthy increase of 23%, reaching Rs 315 crore. This growth is attributed to a diversified client base, particularly in the fast-moving consumer goods (FMCG) sector. ShareChat has smartly tapped into mid-market advertisers, expanding its reach and influence. It’s a classic case of adapting to the market’s pulse.
On the profitability front, ShareChat has made significant strides. The adjusted EBITDA loss narrowed dramatically by 67%, dropping from Rs 2,400 crore to Rs 793 crore in FY24. This shift is not just about cutting costs; it’s about smart investments in product development and a robust recommendation engine. The company claims to be on the fast track to profitability, with an EBITDA margin exceeding 15%. The Moj app, a short video platform under ShareChat, is already operationally profitable, covering all costs except employee salaries. The goal? Full profitability by the end of FY25.
User retention is another feather in ShareChat’s cap. Improved feed ranking has reduced user acquisition costs to nearly zero. This is a game-changer in the competitive social media landscape. With over 325 million monthly active users, ShareChat is not just surviving; it’s thriving.
Meanwhile, OneCard, the fintech unicorn, is also making waves. The company, known for its innovative credit card platform, is raising $28.5 million in a bridge funding round. This latest round sees the entry of Better Tomorrow Ventures, alongside existing investors like Peak XV Partners and Z47. With this funding, OneCard’s valuation has climbed to $1.4 billion. It’s a remarkable feat for a company that only achieved unicorn status in 2022.
OneCard’s journey began in 2019 as a digital credit score platform. It quickly evolved, launching a mobile-first metal credit card that comes with no joining or annual fees. This strategic move has resonated with consumers, allowing OneCard to partner with major lenders like Bank of Baroda and IDFC First Bank. The company’s revenue from operations skyrocketed to Rs 541 crore in FY23, a significant leap from Rs 84 crore the previous year. However, the path hasn’t been without challenges. Net losses expanded to Rs 406 crore, driven by increased spending on employees and marketing.
Both ShareChat and OneCard are navigating the complexities of the digital economy with finesse. They are not just reacting to market trends; they are shaping them. ShareChat’s focus on livestreaming and user engagement is a clear indication of its commitment to innovation. OneCard’s foray into the credit card space demonstrates its understanding of consumer needs and market gaps.
The backing of prominent investors like Temasek and Tiger Global provides these companies with the resources to scale and innovate. This financial support is crucial in a landscape where competition is fierce and consumer preferences are ever-changing.
As these companies continue to grow, they are setting benchmarks for others in the industry. Their stories are not just about numbers; they are about vision, strategy, and the relentless pursuit of excellence.
In conclusion, ShareChat and OneCard are not just players in the digital arena; they are pioneers. Their financial successes reflect a broader trend in the Indian tech ecosystem, where innovation meets opportunity. As they continue to evolve, the world will be watching closely. The future is bright for these digital titans, and their journey is just beginning.