In September 2020, the firm introduced the in-app virtual giving option as one of the several income methods it hoped to monetize.
According to a senior official who spoke to ET, ShareChat’s virtual giving feature has reached $50 million in annual recurring income and is expected to more than double by year’s end.
Mohalla Tech owns the regional social media platform, which has more than 180 million monthly active users nationwide. In September 2020, the firm introduced the in-app virtual giving option as one of the several income methods it hoped to monetize. Users can make the hosts or developers of live audio chat rooms feel appreciated by sending them virtual gifts in the form of digital tokens using this tool.
Amit Zunjarwad, chief product officer at ShareChat, told ET that users spend on the platform “approximately 30 minutes on average” and that there are 30 million artists there.
Over the past year, ShareChat has developed a variety of revenue streams outside of advertising.
For instance, a “crown” might be worth 50 coins, a “rose” might be worth 25 coins, and a “wah wah” sticker—which means “well done” in Hindi—might be worth 10 coins.
For instance, a Shayari (Urdu for poetry) performance can bring in actual money from followers.
After ShareChat deducts a platform fee, creators can cash out these virtual gifts and deposit the proceeds into their bank accounts.
Users who enjoy the music they’re listening to may show their appreciation for the artists by giving them virtual gifts, which are quite participatory and engaging. These are micro transactions from a technological standpoint. Users can purchase virtual gifts using our own virtual currency on the network, according to Zunjarwad.
With two billion minutes of audio streaming each month and more than 16 million active users, Audio Chatrooms has grown to be one of the most popular voice-based live hangouts.
Since the website supports 15 Indic languages, the chatroom function was created to give regional audiences a place to connect and converse in their own tongue.
Virtual gifting acts as a feedback loop and a significant source of income. It acts as a vehicle for developing close relationships with customers. We discover significant levels of engagement in this special construct. It is natural and has grown into a sizable business for us. Users get a sense of intimacy with the makers, said Zunjarwad.
Across all of its platforms, ShareChat has more than 400 million active monthly users.
It is presently valued at $5 billion and includes the short-video app Moj in its portfolio. Moj has a monthly active user base of close to 300 million.
“We take a percentage of the transaction as a platform, but the majority of the money (in the form of virtual gifts) goes to producers. For the past 18 months, we have given it our whole attention, and the business has scaled well. In the upcoming six months, we are on schedule to double this business, he stated.
