ShareChat, an Indian social media, and networking app’s parent company Mohalla Tech are in advanced discussions with Google, Media Moghuls Times Group, and Singapore’s Temasek Holdings to close a $300 million funding with a valuation of $5 billion.
When asked to comment about the deal, Mohalla Tech, and Google, Temasek have not revealed anything, while Reuters could not immediately get in touch with Times Group. If insider sources are to be believed, we can expect a deal to be announced next week.
Google’s investment in a bearish market for Indian start-ups demonstrates the desire for the short video industry as well as the start-investment up’s thesis, according to an inside individual. The tech startups in India had a great year in 2021 as they managed to raise a record $35 billion in new funds, but since then they have been struggling to raise funds as global markets have become unpredictable because of the corporate governance concerns which hang over the investors like a sword.
Google’s investment in a bearish market for Indian start-ups demonstrates the desire for the short video industry as well as the start-investment up’s thesis, according to an inside individual. The tech startups in India had a great year in 2021 as they managed to raise a record $35 billion in new funds, but since then they have been struggling to raise funds as global markets have become unpredictable because of the corporate governance concerns which hang over the investors like a sword.
Ever since Tik-Tok came into existence and became more and more popular by the day, it was clear that the majority was moving towards these short-video platforms. Short-video platforms such as Moj, MxTakatak, and Josh took over in India after the ban of Tik-Tok in 2020. Google has already backed Josh which is in direct competition with ShareChat’s sister company Moj. Such is the pull of these short-content apps that even platforms like Instagram, Facebook, and Youtube adapted this with their own spin to it.
A company like Google knows what these markets are capable of hence their investment comes in at the right time. As said above, ShareChat has a 180 million monthly userbase, and on the other hand, Mohalla Tech’s Moj and recently acquired MxTakaTak has a combined userbase of 300 million. ShareChat was previously valued at $3.7 billion dollars in a $266 million funding round from investors like Alkeon Capital and now coming back on board, Temasek. The company also counts Twitter and Snapchat among its investors.
If the deal between Elon Musk and Twitter sees the light of the day, Mr. Musk will have a potential stake of 6% and 8% in ShareChat, a source revealed.
