Chingari Business Report: The Shift to Live Streaming

Chingari is witnessing a contraction in its business as it transitioned to a paid, private live streaming model in June 2023, moving away from its previous focus on short videos. The platform has reported a 53% decrease in year-on-year operating revenue for FY25, while its losses decreased by 62% to Rs 8.8 crore. Historically, in FY23, Chingari had recorded an operating revenue of Rs 113 crore, with a net loss amounting to Rs 42 crore.

Revenue Decline in FY25

Chingari’s operational revenue dropped over 52% to Rs 44 crore in FY25, down from Rs 92 crore reported in FY24, based on consolidated financial statements obtained from the Registrar of Companies (RoC). Since its inception in November 2018, Chingari initially functioned as a short video platform similar to TikTok until it executed a strategic pivot in June 2023. This shift led to its current position as a private live streaming service, enabling 1-on-1 private video calls between creators and users. To engage in these personal interactions, users purchase virtual diamonds.

Content Guidelines and User Engagement

The platform has established guidelines that prohibit nudity and sexually explicit content, although an assessment of both the app and website indicated that it operates as a more subdued version of OnlyFans. According to data from the Google Play Store, Chingari has achieved over 10 crore downloads on Android.

Revenue Breakdown

In terms of revenue composition, domestic users contributed 28% of the total revenue at Rs 12.2 crore, whereas the remaining 72% stemmed from international users, accumulating Rs 31.3 crore.

Cost Structure

On the expenditure front, advertising and promotional costs represented the largest segment of expenses for the company, declining by 46% to Rs 23.75 crore in FY25 from Rs 43.65 crore in FY24. Employee-related expenses also saw a significant drop of 58% year-on-year to Rs 13.4 crore. Conversely, information technology expenses rose by 8.4% to Rs 9 crore during the last fiscal year. Altogether, other costs, which encompass rent, legal and professional fees, and travel, raised the total expenditure to Rs 52.4 crore.

Overall Financial Performance

Corresponding with the decrease in operational income, total expenditure fell by 55% to Rs 52.4 crore in FY25, down from Rs 116.3 crore in FY24. This trend allowed the company to reduce its losses to Rs 8.8 crore, a decrease from Rs 23.3 crore the previous year. On a per unit basis, Chingari spent Rs 1.2 to generate a single rupee of operating revenue in FY25. By the close of March 2025, the Bengaluru-based company reported Rs 8 crore in current assets, which includes Rs 2.2 crore in cash and bank balances.

Allegations and Challenges Ahead

During its transition, Chingari encountered allegations regarding its development of an adult entertainment application via its paid video call functionality, which may involve explicit content. Nevertheless, the company from Bengaluru has refuted these claims. Despite this denial, the numbers suggest the firm is on a concerning trajectory towards operational decline, exacerbated by a competitive landscape and an unprofitable business model. There is speculation that the company could potentially enhance revenue by developing artificial intelligence-powered creators in the future. However, it is evident that relying solely on user creativity can no longer sustain its operations.