BENGALURU : The losses of Bengaluru-based Mohalla Tech Pvt. Ltd, which owns regional language social networking platform ShareChat, have increased dramatically this fiscal over the last year on the back of higher expenses.
The startup, currently valued at $600-650 million, reported a loss of about ₹414.7 crore in fiscal 2018-19, or about 12 times more than the ₹33.8 crore loss it had incurred in FY18. ShareChat’s revenue, though, rose 15-fold to ₹25.8 crore, albeit on a smaller base of ₹1.7 crore last fiscal. This comes against the backdrop of the platform, which has 60 million monthly active users across the country, announcing plans to expand its user base.
Mohalla Tech reported total expenses of ₹440.6 crore in FY19 compared with ₹35.5 crore in 2017-18, according to the registrar of company (RoC) filings procured from business information platform Paper.vc.
BENGALURU : The losses of Bengaluru-based Mohalla Tech Pvt. Ltd, which owns regional language social networking platform ShareChat, have increased dramatically this fiscal over the last year on the back of higher expenses.
The startup, currently valued at $600-650 million, reported a loss of about ₹414.7 crore in fiscal 2018-19, or about 12 times more than the ₹33.8 crore loss it had incurred in FY18. ShareChat’s revenue, though, rose 15-fold to ₹25.8 crore, albeit on a smaller base of ₹1.7 crore last fiscal. This comes against the backdrop of the platform, which has 60 million monthly active users across the country, announcing plans to expand its user base.
Mohalla Tech reported total expenses of ₹440.6 crore in FY19 compared with ₹35.5 crore in 2017-18, according to the registrar of company (RoC) filings procured from business information platform Paper.vc.
“They could be spending a lot on Google advertisements. Google has now moved to an Indian entity. The ‘other expenses’ is most likely for online advertising. Earlier, these expenses would come under foreign currency transactions, because we’d pay overseas. Now that all these entities have started invoicing out of India, those are all domestic expenses,” he said over phone.
