How Microcompanionship is Secretly Shaping Your Online Life—And You’ll Never Guess Who’s Behind It!

The expansion of India’s creator economy is making waves, particularly among young individuals in smaller towns, and it is increasingly women who are harnessing this potential. The focus is shifting from traditional content creation—like reels and livestreams—to more interactive, voice-led social discovery platforms. Creators, often referred to as hosts or listeners, are finding ways to earn steady incomes through paid conversations and virtual gifts, paving the way for what is being termed a “micro companionship” economy.

Platforms such as **Frnd**, supported by **Elevation Capital**, **Vibely** from **Sharechat**, and **Dostt** are central to this growth, facilitating voice-led social interactions primarily in non-metro regions. Another player, **Eloelo**, has launched an online friendship app called **Connecto**. On these platforms, creators can earn between **Re 1 and Rs 15 per minute**, depending on the specific app and the level of engagement. This model is notably different from that of mainstream influencers or livestreamers, with industry executives pointing out that it is rapidly gaining traction in areas outside India’s major cities.

“Social platforms today are largely content-focused. The whole aspect of connection with people has taken a backseat,”

said **Bhanu Pratap Singh Tanwar**, cofounder and CEO of **Frnd**. The shift toward voice-led interactions has not gone unnoticed by investors.

“In the Indian context, thanks to the rise of reels and short videos, there is a greater emphasis on having audio and video conversations rather than just texting,”

noted **Siddarth Pai**, founding partner of **3one4 Capital**, which has invested in **Dostt**’s parent company **Lokal**. He described these micro companionship platforms as a potential “Version 2” of social media, evolving from the first iteration that was largely messaging-focused. This interest from investors is largely driven by the straightforward monetization opportunities presented by these platforms.

In 2021, **Frnd** raised **$6.5 million** in a funding round led by **Krafton**, and is currently in discussions to raise an additional **$25 million**. **Dostt**’s parent company **Lokal** has raised about **$31 million** from investors including **3one4 Capital**, **India Quotient**, **Y Combinator**, and **Tencent**. The online dating and social interaction market in India is projected to grow significantly, expected to reach **$1.4 billion by 2030**, up from **$788 million in 2024**, according to **MarkNtel**.

Understanding Monetization

Monetization on **Frnd** operates on a pay-as-you-go model, powered by microtransactions via the **Unified Payments Interface (UPI)**. Users purchase points that can be utilized for one-on-one conversations or virtual gifts, while creators earn money based on their engagement and the time spent on the platform. Approximately **25-30%** of **Frnd**’s active creators generate income through paid interactions and convertible virtual gifts. One host reported earning between **Rs 200–300 a day** by spending only a few hours on the app, treating it as supplementary income.

<pSharechat’s Vibely boasts around one million users, with creators typically earning between Rs 5 and Rs 15 per minute based on ratings, user retention, availability, and online activity. According to internal metrics, several thousand hosts on Vibely earn between Rs 30,000 and Rs 40,000 a month, with top performers raking in up to Rs 50,000. However, Vibely contributes only 4-5% to Sharechat’s total group revenue, with about 80% of activities coming from non-metro markets, predominantly male users, while hosts feature a more balanced gender distribution, with women comprising a majority.

The surge in internet and smartphone adoption across tier 2 and tier 3 cities in India has fundamentally changed how people seek emotional support and companionship. According to **Jani Pasha**, cofounder and CEO of **Lokal**, “A large part of the population, especially in tier 2 and 3 cities, still lives in tightly knit, conservative communities.” He notes that these environments often hinder open discussions about personal challenges, such as relationship issues or career stress. A **Redseer** report from November indicated that about **60%** of middle-aged Indians in tier 2 cities are using online dating apps to seek companionship.

Challenges Ahead

As monetization scales, concerns about safety and moderation have emerged. A host from **Frnd** mentioned encountering instances of inappropriate comments from users. Fortunately, hosts can exit conversations and block users if necessary. **Dostt** has measures in place to warn creators with poor ratings or community guideline violations, leading to possible removal for repeat offenders. **Frnd** utilizes voice sampling to prevent impersonation, along with AI-led video moderation requiring users to keep their faces visible and real-time flagging of potential violations.

Experts in trust and safety express concerns regarding the economics of real-time moderation, stating that maintaining safety measures can become financially unfeasible. **Amitabh Kumar**, cofounder of **Contrails AI**, highlights that reliable age assurance would necessitate live detection combined with identity and payment verification, pushing per-user costs beyond **$10**. “It’s a paid model from day zero,” he states, emphasizing the challenges in ensuring safety during real-time interactions.

**Madhukar Sinha**, founding partner of **India Quotient**, an early investor in **Frnd**, believes regulation should prioritize enforcement over intent. “The real issue isn’t whether people can talk, but how platforms are moderated,” he argues. As the micro companionship economy continues to grow, balancing monetization with user safety will be crucial for its sustainability.