Chatterbox Technologies claims to have established strong, long-term relationships with top-tier brands and influencers, thanks to its eight years of industry experience. The company’s skilled team, along with its deep industry knowledge, has enabled it to create tailored, authentic marketing strategies that resonate with audiences. This solid reputation for reliability and expertise has led to repeat business and strengthened customer retention.
Chatterbox Technologies claims to offer specialised services that differentiate it in the influencer marketing space. Its divisions, like ‘Youth:Ink’, target youth engagement through campus ambassador programs, while ‘BharatBox’ focuses on regional influencers to penetrate tier-2 and tier-3 cities in India. The company’s diversified service offerings allow it to cater to a broad range of sectors, from tech to beauty, demonstrating its versatility and ability to deliver impactful results across industries.
The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 39.91 crore in FY23 to Rs 54.85 crore in FY24 and Rs 59.12 crore in FY25. PAT increased from Rs 1.28 crore in FY23 to Rs 8.53 crore in FY24 and Rs 8.85 crore in FY25.
The company reported negative cash flow from operating activities amounting to Rs 2.03 crore in FY23. Additionally, negative cash flow from investing activities amounted to Rs 1.58 crore in FY25, Rs 5.58 crore in FY24, and Rs 1.94 crore in FY23. If negative cash flows persist or worsen, it could impact the company's ability to operate and implement its growth plans, adversely affecting its financial performance and future prospects.
The company derives a significant portion of its revenue from Maharashtra. It accounted for Rs 34.25 crore (57.93 percent) of the company’s revenue in FY25, Rs 32.46 crore (59.18 percent) in FY24, and Rs 20.10 crore (50.35 percent) in FY23. Any disruption in this region could negatively impact the company’s financial condition and results of operations.
Chatterbox Technologies relies heavily on external influencers, artists, and rented studio spaces and equipment for video production. Any increase in the cost of renting studio space or equipment, non-availability of influencers or required equipment, or delays caused by external factors such as weather or social unrest could disrupt video shooting schedules. If these disruptions occur, the company’s ability to deliver timely services may be impacted, potentially damaging its reputation and affecting its financial condition and profitability.
Chatterbox Technologies experiences significant seasonal fluctuations in its revenue, with approximately 60 percent of annual revenue typically generated in the second half of the financial year, particularly from October to March. This is primarily driven by customer and influencer spending during the festive and marriage seasons, as well as the timing of budget approvals and marketing campaigns. Any unexpected events, such as changes in advertising trends or delays in customer spending due to adverse economic conditions, could result in inconsistent revenue, making it difficult to rely on quarterly performance as an indicator of future results.
The company faces challenges in retaining its workforce due to increased competition and higher salary expectations, with an attrition rate of 41 percent in FY25, 41 percent in FY24, and 30 percent in FY23. High turnover rates could lead to increased recruitment costs, loss of client service quality, and diversion of management resources, adversely affecting business performance.
The company, its directors, and promoter group entities are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
The top five customers accounted for Rs 13.37 crore (22.62 percent) of the company’s revenue in FY25, Rs 26.74 crore (48.75 percent) in FY24, and Rs 14.57 crore (36.51 percent) in FY23. Any failure to retain these key customers or a loss of business from them could adversely affect the company’s business and financial standing.
Chatterbox Technologies' book-running lead manager is currently subject to a regulatory restriction imposed by the Securities and Exchange Board of India (SEBI), which prohibits the merchant banker from undertaking new assignments for six months. While this restriction does not directly affect the company or its current issue, there is a risk that any adverse media coverage or investor perception related to this action could undermine market sentiment and investor confidence. Such regulatory developments could have an indirect impact on the company’s reputation and the success of future capital-raising efforts.