ShareChat plans IPO in late 2027 driven by profitability growth from microdramas

Mohalla Tech, the parent company of social media platforms ShareChat, Moj, and QuickTV, has reported significant revenue growth in the 2026 fiscal year. Revenue reached 1016 crore rupees, representing a 40% increase compared to 723 crore rupees recorded in the 2025 fiscal year.

The company's growth is driven by diversification into the micro-drama segment. These dramas are monetized through both advertising and subscriptions. This has created a third major source of income, supplementing existing streams of advertising and live streaming.

During the first full year, subscription revenue amounted to 293 crore rupees thanks to the QuickTV and Moj+ applications. Mohalla Tech also stated that its Annual Recurring Revenue (ARR) reached 1500 crore rupees in the first half of the 2027 fiscal year. The company forecasts that in the 2027 fiscal year, it will record net profit at EBITDA levels for the first time, amounting to nearly 25 crore rupees.

In the 2026 fiscal year, EBITDA losses decreased by 58%, totaling 91 crore rupees, compared to 219 crore rupees in the 2025 fiscal year. Furthermore, by the end of the first half of the 2027 fiscal year, the company noted four consecutive quarters of positive cash flow and two quarters of positive EBITDA.

Ankush Sachdeva, co-founder and CEO of Mohalla Tech, noted that after several years of strategic discipline, the company has entered a path to profitability. He added that the goal of establishing a sustainable core business was achieved a year ago, and the company is now generating cash and funding the next stage of growth solely from its own earnings.

Although the growth in the 2026 fiscal year was supported by subscription revenue, the advertising business is also regaining momentum. Ad revenue increased by 40% year-over-year in the second quarter of the 2027 fiscal year and is expected to grow even faster during the festive season.

According to company data, daily consumption of micro-dramas has grown 6.5 times over 12 months, exceeding one billion units daily. Manohar Charan, co-founder and CFO of Mohalla Tech, emphasized that the advertising business has received a significant boost in the last two quarters, with further growth anticipated in the upcoming festive months. He also noted continuous improvement in profit margins while maintaining a strong revenue growth trajectory.

The company also reported that free, ad-supported micro-dramas have expanded their advertiser base on both the ShareChat and Moj platforms.

Anthropic, the developer of the Claude assistant, has begun its capital raising process, which could result in one of the largest stock offerings in history. This operation will serve as a crucial test for the artificial intelligence (AI) market, especially at a time of uncertainty regarding the sector's billion-dollar valuations.

The outcome of this IPO also has the potential to impact OpenAI's future entry onto the stock exchange and alter investor willingness to finance technology-related companies. Currently, investors value Anthropic in trillions of dollars. The company, founded five years ago, shares the spotlight in the AI market with OpenAI, a competitor that, although it has submitted confidential documents for its own offering, does not plan to debut before 2027.

However, the current financial landscape presents challenges. Cloud computing companies focused on AI and data center operators have seen their stocks decline. Australian firm Firmus suspended its IPO plans, as did SK Hynix's American unit, Solidigm.

Despite reaching the stock market with notable results, Anthropic has also faced significant losses. In the first half, the company accumulated over US$ 80 billion (R$ 420 billion) in losses, as reported by CNBC. Concurrently, revenue showed accelerated growth, driven by the use of productivity and programming tools by various corporations.

In the second quarter, revenue reached US$ 11.56 billion (R$ 60.69 billion), a considerable increase compared to the US$ 787 million (R$ 4.13 billion) recorded in the same period last year. By the end of June, the company held about US$ 132 billion (R$ 693 billion) in cash, including equivalents and short-term investments. After five consecutive quarters of operating losses, Anthropic achieved an operating profit of US$ 974 million (R$ 5.11 billion) in the second quarter.

Jai Das, co-founder of Sapphire Ventures, warned that if performance falls short of expectations, the situation could be compared to a 'house of cards.' Anthropic's collaboration with major industry players transcends competition; nearly half of its revenue comes from selling Claude through cloud services offered by Microsoft, Amazon, and Alphabet, Google's parent company. These three giants are also investors in the developer.

The essential infrastructure for model development depends on chips supplied by Nvidia, AMD, Amazon, and Google. Therefore, any change in investor willingness to finance AI can have ramifications across various segments of the industry. Brad Bernstein, managing partner at FTV Capital, assesses that underperformance could lead to a broader reassessment of investments in AI startups, generating a ripple effect in venture capital.

The impact could span the entire technological chain. An additional challenge lies in open-weight models, which allow for greater customization and reduced costs, with competitors such as Moonshot AI, DeepSeek, and Zhipu. Although the IPO document mentions OpenAI and Google as rivals, Anthropic acknowledges the existence of a wider range of suppliers.

The company identifies expansion opportunities, given that in the most recent quarter, less than 0.1% of the total expenses of Fortune 500 listed companies were dedicated to its models and services. The trillion-dollar valuation also places the operation in an elite group; if it debuts with a value exceeding US$ 1 trillion (R$ 5.25 trillion), Anthropic would be the third company to reach this level in an IPO, after Saudi Aramco and SpaceX.

There are, however, risks for the market. Higher interest rates make fundraising more expensive, and a decrease in liquidity directed towards AI could pressure stocks. David Trainer, CEO of New Constructs, projects a 20% risk of decline in the S&P 500, concentrated mainly in sector-related securities.

In summary, Anthropic's debut will function as a thermometer for expectations surrounding artificial intelligence, and the response of investors may shape both the valuations of other companies and OpenAI's plans for entering the stock market.

Investors considering investing in the Jio Platforms IPO have one last chance to apply on October 23rd. This offering is the largest in Indian history. By the second day of trading, it was subscribed 5.57 times. Investors can submit their application by 5:00 PM today, and UPI payment approval is available until 7:00 PM.

According to data from the morning of October 23rd, the IPO attracted applications for 112,20,21,276 shares worth approximately 1.25 lakh crore rupees. The Qualified Institutional Buyer (QIB) category was subscribed 13.29 times. The High Net-worth Individual (HNI) category attracted 6.32 times. Meanwhile, retail investors subscribed 1.60 times, existing shareholders subscribed 4.21 times, and Reliance employees subscribed 2.15 times.

Jio Platforms aims to raise 30,213 crore rupees through this IPO. The company set the price band for shares between 1,065 and 1,119 rupees per share. 270 million new equity shares are being issued as part of this offering. Investors can apply for a minimum of 12 shares and then bid in a 12-times multiple.

Many brokerage firms have expressed a positive view on the Jio Platforms IPO, citing the company's strong market position, business growth potential, and valuation. Nevertheless, amid a sluggish market, the grey market premium (GMP) is declining, and the expected listing gain is around 21%. It is important to remember that GMP is an unofficial indicator and does not guarantee profit upon listing on the stock market. At the upper listing price of 1,119 rupees, the market capitalization of Jio Platforms is estimated at approximately 10.30 lakh crore rupees.

However, a crucial question remains for investors: should they apply for short-term listing profits, or is it better to invest for the long term, considering Jio's business and future prospects? Harsh Soni, a SEBI-registered investment consultant and founder of Nyvo Money, believes that the decision to invest in the Jio Platforms IPO should not be based solely on potential listing-day gains. In his view, a one-day surge may depend on luck and market sentiment, whereas wealth is built through investments in a continuously growing business over the long term.

Jio Platforms holds a significant share in India's digital economy. According to the company's Red Herring Prospectus (RHP), its total customer base is 533.3 million, of which 284.9 million, or about 28.49 crore customers, use 5G services. The company accounts for approximately 60% of India's wireless data traffic.

The company's financial performance also demonstrates strength: revenue and profit have increased over two fiscal years. The average monthly revenue per user (ARPU) has also improved. Furthermore, the company is expanding its services in 5G networks, home broadband, and AI-based services, which could contribute to future revenue growth. However, investors should closely monitor how much the customer base and revenue per user will increase, how much additional revenue will be generated from data consumption, and how successfully the company can reduce debt in the coming years.

Alongside the growth potential, Jio faces certain challenges. The role of tariff hikes may be important for increasing company revenue, but expensive tariffs could also prompt customers to switch to competitors. Additionally, competition in the telecom sector, regulatory changes, and significant network expansion costs could negatively affect the company's performance. Another key metric is Return on Capital (ROC). This stood at 12.83% in FY24 but decreased to 10.76% in FY26. This means investors need to assess how efficiently the company utilizes the capital invested in its business.

Jio Platforms is among the major companies benefiting from the expansion of digital services in India. Investment consultant Harsh Soni suggests that investors confident in India's economic and digital growth may consider Jio Platforms as a long-term investment option. Thus, instead of selling shares for listing gains, holding a stake in the portfolio for a long period might prove profitable if the Jio Platforms IPO is listed.

Nevertheless, he also advised reading the IPO documents, understanding the valuation, and making a decision according to one's financial needs. Those planning long-term investment should only invest funds that will not be needed for the next five to ten years. Consulting a financial advisor as needed would also be beneficial.