Inshorts Business Model: How did it become successful?

In today’s fast-paced world, keeping up with the news can feel like chasing a moving train. Enter Inshorts, a platform that simplifies news delivery with crisp 60-word summaries. If you’ve ever wondered how Inshorts serves millions of users while making money, this article will walk you through the Inshorts Business Model in detail.

What is InShorts?

Inshorts is a news aggregation platform that condenses lengthy news articles into bite-sized summaries of just 60 words. 

Launched in 2015 by three IIT dropouts—Azhar Iqubal, Deepit Purkayastha, and Anunay Arunav—Inshorts caters to India’s growing digital audience. It operates out of Noida, Uttar Pradesh, and boasts a user-friendly mobile app available in English and Hindi.

How does the Inshorts Business Model work?

At its core, the Inshorts business model is built on three pillars: content aggregation, user engagement, and monetization through advertising. Let’s break it down further-

Content Aggregation and Summarization

Inshorts pulls news from various credible sources, including newspapers, websites, and blogs. These are then summarized into short, 60-word snippets, ensuring users get the key points without wading through lengthy articles. The summaries are curated by editors, ensuring relevance and accuracy.

User Engagement

Inshorts excels at keeping users hooked with its minimalistic design and personalized content delivery. By analyzing user preferences, the app suggests news stories tailored to individual interests. Its swipe-based interface makes scrolling through news effortless.

Inshorts Products

While Inshorts’ flagship app is its backbone, the company has diversified its offerings to widen its audience and revenue base.

• Inshorts App: This app delivers concise, personalized news updates in both English and Hindi. It ensures users stay informed without the overwhelm of traditional news formats.
• Public App: Launched in 2019, Public is a video-based platform for sharing real-time, hyper-local updates. It quickly gained popularity, particularly in Tier II and Tier III cities, offering users a platform to post and view news specific to their communities.

Key Data That Powers the Inshorts Business Model

• User Base: As of 2024, Inshorts has over 100 million active users globally.
• Engagement Metrics: Inshorts users spend an average of 10 minutes per day on the app.
• Revenue Growth: Annual advertising revenue was estimated at $15 million in 2022 and continues to grow.
• Content Output: Over 1 billion stories have been shared on the platform since its inception.

Revenue Streams: How Inshorts Makes Money?

Inshorts primarily earns through advertising. Here’s a closer look at how it monetizes its platform-

• Native Advertising: Ads are seamlessly integrated into the news feed, making them less intrusive while ensuring higher user engagement.  
• Sponsored Content: Brands pay Inshorts to feature their products or services as part of news-like content. This form of advertising often earns Inshorts almost double the revenue of regular ads.  
• Branded Content Partnerships: Collaborations with companies to create and distribute content aligned with their brand identity. 
• Annual Advertising Contracts: To maintain a steady revenue stream, Inshorts enters long-term agreements with advertisers.

Funding & Financials

Inshorts has raised $164.9 million across multiple funding rounds, with prominent investors like Vy Capital, A91 Partners, and Tiger Global Management. Here’s a quick snapshot–

Financial Highlights (FY24)

In FY24, Inshorts posted a flat revenue and its net loss fell 26% to Rs.228 Crore-

• Operating Revenue: ₹181.4 crore (2024)
• Total Expenses: ₹411.2 crore (2024), down from ₹492.1 crore (2023) 
• Net Loss: ₹227.8 crore (2024), reduced from ₹309.7 crore (2023) 

Why is the Inshorts Business Model Successful?

The success of Inshorts lies in its ability to blend simplicity with innovation. Here’s what sets it apart-

• Personalized Experience: By leveraging user data, Inshorts offers tailored news, making it more engaging.  
• Mobile First Design: With the majority of Indians accessing news via smartphones, Inshorts caters to a mobile-first audience.
• Concise Content: Its 60-word summaries respect the user’s time while delivering maximum value.  
• Monetization Strategy: Seamless advertising integration ensures consistent revenue without annoying users.

Marketing Strategies of Inshorts Business Model

Here’s an in-depth look at the marketing strategy that helped Inshorts stand out in a saturated market-

Identifying the Niche

The founders of Inshorts tapped into the growing frustration among users overwhelmed by lengthy blogs, social media posts, and constant notifications. During a time when people struggled to stay updated due to an overload of information, Inshorts introduced a unique solution: short, crisp news stories tailored to user preferences. By addressing the need for bite-sized content, Inshorts successfully positioned itself as the go-to platform for fast news consumption.

Engagement over Virality

Unlike competitors that focus on creating viral content, Inshorts prioritizes user engagement. Instead of tracking time spent on the app, they measure success by the number of screens a user swipes through. On average, users scroll through over 80 screens daily. This approach shifts the focus from quantity to quality, ensuring users remain engaged and informed.  

User-Friendly Interface

Inshorts’ minimalist design is a significant factor in its success. The app avoids intrusive prompts and external links, allowing users to navigate stories effortlessly. By creating a distraction-free environment, Inshorts has built a loyal user base that appreciates its streamlined approach to news delivery. 

Customization & Personalization

Understanding that every user has unique preferences, Inshorts incorporates customizable filters. This feature allows users to tailor their news feed to include topics of interest while excluding irrelevant information. By offering a personalized experience, Inshorts ensures users remain engaged without feeling overwhelmed by excessive content.

Data-Driven Decisions

Inshorts relies heavily on data analytics to optimize its operations. By analyzing user behavior, such as time spent on specific stories or topics, the app continuously refines its content strategy. 

For instance, insights from user engagement helped the company prioritize its editorial team, ensuring the quality of news summaries remains unmatched.

Localized Content Delivery

Inshorts recognizes that user preferences vary based on location. To cater to diverse audiences, the app tailors its content delivery for Tier 1, Tier 2, and Tier 3 cities. This localized approach ensures that the platform remains relevant across different demographic groups. 

Additionally, the launch of a separate app for video content addresses the growing demand for visual news, without disrupting users who prefer text-based summaries.

Limited Notifications for Balance

One of the standout aspects of Inshorts’ strategy is its controlled notification system. Instead of bombarding users with constant updates, the app sends a fixed number of notifications based on user preferences. This thoughtful approach keeps users informed without causing annoyance, striking the perfect balance between engagement and convenience. 

By doing things differently, Inshorts proved that simplicity and focus can lead to exceptional success in a competitive digital landscape!

Challenges Faced by Inshorts

Despite its success, the road hasn’t been without bumps. Some key challenges include-

• Competition from Vertical Video Platforms: Apps like Instagram and Snapchat, which focus on short-form videos, have attracted younger audiences, forcing Inshorts to innovate continuously.  
• Balancing Innovation and Market Demand:  Early on, Inshorts spent significant time developing features that didn’t align with user needs, resulting in lost time and resources.
• Monetization Hurdles: Striking the right balance between user experience and advertising revenue remains a tightrope walk.

Future Prospects

With India’s digital media industry projected to grow to $1,290 million by 2029, Inshorts is poised for significant growth. Its focus on hyper-local content through the Public app and personalized news delivery positions it well to capture a larger audience.

Note: We have also explained “Brushing Scam in India: How Fraudsters are Misleading Online Shoppers?” Go through the article for detailed information. 

Why Should You Care About the Inshorts Business Model?

The Inshorts Business Model isn’t just a success story; it’s a blueprint for businesses looking to cater to a mobile-first, time-crunched audience. It highlights the importance of innovation, personalization, and seamless monetization in today’s digital economy.

If you’ve ever felt overwhelmed by traditional news formats, Inshorts offers a refreshing alternative. And from a business perspective, it’s a masterclass in how to turn a simple idea into a thriving enterprise. 

So, next time you swipe through its crisp news updates, you’ll know the genius behind the app!