Tech giant Google is in talks with ShareChat to invest in the social media platform, according to ET. The investment is likely to be in the region of $150 million to $200 million.
Bengaluru headquartered ShareChat also owns Moj, a short video app like TikTok. ShareChat is trying to raise this money to compete with various other competitors in this space after the ban of Chinese apps in India. The report also suggests that JPMorgan is advising the company is raising funds.
The ban on TikTok has seen various other similar apps launched in this space. Apps like Roposo, Dubsmash, Josh, Smule, TakaTak, Triller, Mitron and a lot more are vying for the maximum market share. ShareChat claimed to have seen a growth rate of 500,000 new users per hour after the ban on TikTok.
According to a report by Mint, Microsoft is also looking to invest in ShareChat. The deal could see ShareChat become the latest entrant into the unicorn club. Even though ShareChat is a Made in India app, it had raised funds from Shunwei Capital, a Chinese VC fund, in previous rounds.
Founded by IIT-Kanpur alumni Ankush Sachdeva, Farid Ahsan and Bhanu Singh in 2015, ShareChat is a social media platform with its focus on regional languages. The app has 100mn+ downloads on Google Play Store. Its short video app Moj has 50mn+ downloads.
The short video apps have seen a huge rise in downloads after government’s ban on Chinese apps in India. Chinese firm ByteDance, the creator of TikTok is looking to sell its Indian business to Microsoft or an Indian firm to stay in the Indian market. It will most likely share the revenue with its partner.