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Eleelo Achieves Impressive Revenue Growth

Eleelo, the microdrama and social entertainment platform, has reportedly achieved an annual revenue run rate of Rs 2,100 crore as of January this year. While verification of this claim will occur once the company submits its FY26 and FY27 financials, its recent growth pattern provides relevant insights. Eleelo commenced monetisation in May 2024 and generated Rs 69.5 crore in revenue for FY25, with losses remaining relatively stable, indicating early signs of scalability.

Building on this momentum, the company, which is supported by Play Ventures, successfully raised $13.5 million in a Series B funding round led by Play Ventures in April of last year.

About Eleelo

Founded in July 2020 by Saurabh Pandey, Eleelo empowers creators to conduct interactive video and audio live streams in various Indian languages, allowing monetisation through micropayments and virtual gifting. Revenue from in-app purchases constituted the entirety of operating revenue in FY25. Additionally, the company reported Rs 6.3 crore in non-operating income, primarily from fixed deposit interest, bringing total income for the period to Rs 75.8 crore.

Expenditure Breakdown

On the expenditure front, Eleelo reported significant outlays on advertising and promotions aimed at enhancing user acquisition and retention. These costs were the largest expense category, making up 34% of total expenses and increasing approximately 46% year-on-year to Rs 59 crore. Employee benefit expenses remained unchanged at Rs 26 crore, while spending on content creators surged more than threefold to Rs 43 crore in the last fiscal year, reflecting a heightened focus on content-driven growth. Technology costs were recorded at Rs 16.7 crore, approximately 10% of total expenses.

Further, overheads such as agency service charges, bonuses and campaigns, subscriptions, and legal/professional expenses added Rs 29.6 crore to the firm’s overall expenditure, which rose 68% year-on-year to Rs 174.3 crore in FY25 compared to Rs 103.8 crore in FY24.

Financial Performance

As for the bottom line, the WestBridge-backed firm reported operating revenue for the first time; however, expenses increased at a similar rate, resulting in losses remaining constant at Rs 98.5 crore from the previous year. On a unit level, Eleelo incurred Rs 2.51 to generate one rupee of operating revenue during FY25. Its ROCE and EBITDA were recorded at negative 188.5% and 144.35%, respectively. The firm held current assets worth Rs 82 crore in FY25, including Rs 59 crore in cash and bank balance by the close of March 2025.

Eleelo has successfully raised a total of $50 million in funding to date, with WaterBridge Ventures being its lead investors. Co-founders Saurabh Pandey and Akshay Dubey share ownership of 20% of the company. Reports from Moneycontrol indicate that Eleelo has appointed Avendus to help raise over $50 million. Its Annual Recurring Revenue (ARR) skyrocketed to $230 million (Rs 2,100 crore) in January 2026, up from $23 million (Rs 210 crore) in June 2025.

Emerging Trends in Content Consumption

With short-form content now firmly established, capturing a larger share of viewing time, microdramas represent one of several subcategories enabling segmentation in this market. However, much like the digital advertising sector, which has ballooned to overshadow all other categories, this does not ensure a profitable future. Leading players tend to capture a disproportionate share of revenues, making entry challenging. Eleelo’s high advertising expenditures are one indication of this struggle. Furthermore, top content creators often look to other platforms, whether voluntarily or through incentives. The pursuit of larger numbers also places the company at risk of breaching various regulations, especially regarding live shows.

On a positive note, TikTok is absent from this market and is unlikely to return soon, leaving ample space for other platforms to cultivate their loyal user bases, albeit at a significant cost. This trajectory will certainly be monitored closely.

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