The mother or father firm of India’s ShareChat has raised almost $300 million in recent funding from Alphabet Inc’s Google, media big Times Group and Singapore’s Temasek Holdings, valuing the social media agency at almost $5 billion, two sources concerned within the deal discussions informed Reuters.
A deal is about to be introduced as early as subsequent week, the sources added.
ShareChat’s mother or father firm, Mohalla Tech, didn’t reply to a request for remark. Google and Temasek didn’t instantly reply to requests for remark, whereas Reuters couldn’t instantly attain the Times Group.
This is Google’s second key funding in India’s quick video area, having beforehand backed Josh, which competes with ShareChat’s sister agency Moj.
Google’s funding in a bearish marketplace for Indian start-ups reveals the urge for food for the quick video sector and the start-up’s funding thesis, one of many sources mentioned. India’s tech start-ups, which raised a file $35 billion in new funds in 2021, have been struggling to lift funds as company governance issues loom massive for traders dealing with a brand new uncertainty in international markets.
Short video apps like Moj and Josh shot up in recognition after India in 2020 banned ByteDance’s TikTok and another Chinese apps following a border conflict with China.
ShareChat at the moment has 180 million month-to-month energetic customers. Moj, together with Mohalla’s lately acquired MX TakaTak, has a mixed consumer base of 300 million, based on one of many sources.
ShareChat was final valued at $3.7 billion in a $266 million funding spherical from traders together with Alkeon Capital and Temasek. The agency additionally counts Twitter and Snap amongst its traders.
If the bid by Tesla CEO Elon Musk to purchase Twitter goes by way of, Mr. Musk could have probably a stake of between 6% and eight% in ShareChat, the supply added.