Indian social media company ShareChat has raised over $ 500 million to grow its popular short video app Moj. This was just a few months after the Indian government banned ByteDance-owned rival TikTok from the country.
The five-year company, which has raised $ 502 million from investors such as Tiger Global Management, Snap and Twitter, currently has a valuation of $ 2.1 billion. While the ShareChat app has 160 million monthly active users, Moj has more than 120 million monthly active users within nine months of its release.
More than 200 bans by the Indian government Chinese The app at the end of last year after the border conflict was a “macro event”. .. .. Ankush Sachdeva, CEO of ShareChat, who also counts Shunwei Capital, launched by the founder of Chinese mobile phone maker Xiaomi among investors, said:
“ShareChat has grown many times since it was banned.[and] We also used a short video vacuum cleaner to launch Moj, “he added.
Bangalore-based ShareChat offers memes and video sharing platforms in 15 regional languages of India, but not in English, so Indian smartphone users in small cities and towns that don’t like English Very popular among. According to the company, users of both apps spend an average of 30 minutes or more each day.
India represents a major growth opportunity for US tech companies.According to 2019, only 40% of the population was connected to the internet McKinsey, And 86% of them were under the age of 40. By 2025, the number of Internet users is expected to exceed 970 million. Statista..
“As the Internet becomes more prevalent in suburban and rural economies, ShareChat is ready to expand dramatically by bridging the online purchase of goods and services,” the company said. Said Scott Shleifer, a Tiger Global Management partner who invested in the latest Series E round of.
“On the other hand, Moj is in a good position to seize the opportunities offered by the growth of short videos in India. I was impressed by the team’s understanding of these rapidly evolving technologies and their ability to execute quickly. “He added.
In the void left by TikTok, Indian users have been offered a dizzying set of options for short video entertainment. Apps that have emerged over the past year include Josh, TakaTak, Roposo, Mitron, and Chingari. Google and Microsoft recently invested in Josh’s parent company, but Google also led an investment of $ 145 million in the company behind Roposo.
ShareChat claims to set itself apart through content-recommended technology. The app uses machine learning algorithms to display customized content based on individual user preferences. “Machine learning is a huge investment area for us. [We are] We will build that entire infrastructure and expand our teams around the world, “says Sachdeva.
The company has hired five artificial intelligence directors in both the United States and the United Kingdom over the past six months, doubling its workforce, including 50 AI engineers, in late 2020.
Competition between US and Chinese tech giants over the Indian market has intensified over the past few years, spurring billions of dollars bets on the country’s start-ups. Hostility from the Indian government triggered Chinese investment after a bloody border clash between Indian and Chinese soldiers in June 2020 Freezing transactionsSmooths the way for US investors to expand into the fertile Indian Internet market.
Last week alone, two social commerce apps, Meesho and fintech Cred, raised more than $ 2 billion in valuations from US investors such as Facebook and Tiger Global.
ShareChat was worth $ 2 billion following a TikTok ban
Source link ShareChat was worth $ 2 billion following a TikTok ban