As a result of the TikTok ban, ShareChat is worth $ 2 billion
Indian social media company ShareChat has raised more than half a billion dollars to grow the popular short video app Moj, a few months after the Indian government banned rival TikTok-owned rival TteTance from the country.
The five-year-old company, which has raised $ 502 million among Tiger Global Management, Snap and Twitter investors, now has a valuation of $ 2.1 billion. The ShareChat app has 160 million active users per month, while Moj has gathered more than 120 million active users per month within nine months of its launch.
The Indian government has banned more than 200 Chinese After a border dispute at the end of last year, “the app was a macro event. between.
“ShareChat posted that ban. . .[and] we also took advantage of the short video gap and launched Moj, ”he added.
ShareChat, a platform in Bangalore, offers its memes and video sharing platforms in 15 Indian languages, but not English, and is very popular among Indian smartphone users in small towns and villages, as English is not the preferred language. Users of both apps spend an average of more than 30 minutes a day, according to the company.
For U.S. tech companies, India is a huge growth opportunity. Only 40% of the population had an Internet connection in 2019, according to McKinsey, and 86% of them were under 40 years old. By 2025, the number of Internet users is expected to exceed 970m, Statistician.
“As Internet access increases in urban and rural economies, ShareChat… Is ready to expand its platform tremendously by focusing on online purchases of goods and services,” said Scott Shleifer, a partner at Tiger Global Management, which has invested in the company’s latest Series E round.
“Meanwhile, Moj is well positioned to take advantage of the opportunity offered by the growth of short video in India. We are impressed with the team’s understanding of these evolving technologies and their ability to run quickly, ”he added.
In the vacuum left by TikTok, Indian users have been offered wonderful opportunities for short video entertainment. The apps created in the last year are Josh, TakaTak, Roposo, Mitron and Chingari. Google and Microsoft have recently invested in the parent company Josh, while Google has directed a $ 145 million investment in the company behind Roposo.
ShareChat claims to differentiate itself through technology to recommend its content. The applications automatically use learning algorithms to bring out content tailored to each user, according to their tastes. “Machine learning is a very big investment for us. [We are] building all that infrastructure and scaling our team around the world, ”Sachdev said.
The company has hired five directors of artificial intelligence in the US and the UK over the past six months, and has doubled its workforce in the second half of 2020, including 50 AI engineers.
Competition between U.S. and Chinese tech giants has intensified for the Indian market in recent years, boosting billions of dollars in bets on the country’s start-ups. After a bloody border clash between Indian and Chinese troops in June 2020, the Indian government’s desperation has led to Chinese investment freezing offers, Paving the way for U.S. investors who want to expand beyond India’s fertile Internet market.
In the last week alone, two other start-ups – Meesho social commerce apps and fintech Cred – have garnered more than $ 2 billion in money from U.S. investors with Facebook and Tiger Global, respectively.