Short-video sharing platform Chingari CEO and cofounder Sumit Ghosh said that the company has turned operationally profitable.
In a tweet, he said that the company will now continue its business from its monthly revenues and said that it has some money left in its account which it has kept aside for ‘rainy days.’
“ Not burning VC cash anymore or need to raise to sustain the business. We still have a few million USD left in the bank, which we have kept aside for the rainy days,” Ghosh said on Twitter.
This comes when Chingari has laid off more than 50% of its workforce., impacting employees from product, customer support, design and marketing teams.
Read more: Short video app Chingari lays off 20% of workforce
He said that in the early stages, he said that the objective was rapid growth, regardless of cost. Chingari invested heavily in acquiring users through inorganic means without giving much thought to revenue generation or a sustainable business model.
“In 2022 Markets turned, mid of 2022 even though we were growing at 500K downloads a day, no VC would take a bite as there was no clear monetisation plan. I realised this won’t lead us anywhere, reduced all inorganic media buys, focused on quality user acquisition, users who can be monetised,” Ghosh added.
Currently, it is allocating less than ₹1 crore per month for user acquisition, with a customer lifetime value (LTV) to customer acquisition cost (CAC) ratio of 4:1.
Chingari has raised a total of $88.4 million. In October 2021, Chingari raised over $19 million for its token round across more than 30 venture funds and individual investors.
Published on August 29, 2023
