Mohalla Tech Private Ltd, the parent company of Bengaluru-based ShareChat, said a loss of Rs 415 crore had been reported in the financial year 2019, which is 12 times more than the loss amount of Rs 33.8 crore in FY 18.
There has been an increase in revenue of Rs 25.8 crore in the same financial year. A paltry revenue of Rs 1.7 crore has been posted for the year 2018.
The startup is reportedly valued at $600-$650 million and has 60 million monthly active users across the country. ShareChat incurred an expense of Rs 440.5 crore in FY19 against the total expense of Rs 35.4 crore in FY18.
It has been facing stiff competition from China’s ByteDance for market share. Over the past two years, vernacular social media space has heated up after the entry of Bytedance-owned Helo.
It was founded by IIT Kanpur alumni Ankush Sachdeva, Farid Ahsan, and Bhanu Singh in 2015. The ShareChat app allows users to share their opinion, record their lives, and make new friends. It offers its services in 14 languages.