ShareChat raises $502 million at $2 billion valuation

PUBLISHED BY
Anna Domanska



TAGS:


4 months ago




ShareChat, the Indian owner of short video app Moj, has raised $502 million in the series E round of funding, pushing its value at $2.1 billion in the market.

The five-year-old company has raised $502m from investors, including Tiger Global Management, Snap and Twitter. Moj, the video app, gained immense popularity after the Indian government banned the Byte-owned Chines app TikTok. The ShareChat app has 160m monthly active users, while Moj has garnered more than 120m monthly active users within nine months of its launch.

The Indian government banned more than 200 Chinese apps last year following a border dispute with China.

The chief executive of ShareChat, Ankush Sachdeva admitted that for the company its was a “macro event . . . and we did benefit from that.”
Interestingly, Shunwei Capital, launched by the founders of Chinese mobile phone maker Xiaomi, is among its investors. “ShareChat grew multifold post that ban . . .[and] we also took advantage of the short-video vacuum and launched Moj,” Sachdeva added.

ShareChat, based in Bangalore, is available in 15 regional Indian languages, though not in English. It has become extremely popular in the hinterlands and small towns and cities of India, which has a burgeoning population of smartphone users. The average time spent on the app is more than 30 minutes, according to the company.

Only 40 percent of the Indian population had internet connections in 2019, according to McKinsey, and 86 percent of those were under the age of 40. By 2025, the number of internet users is expected to exceed 970m, according to Statista.

Samsung refurbished smartphones

“As internet penetration increases in semiurban and rural economies, ShareChat’s . . . platform is poised to expand dramatically by bridging into online purchases of goods and services,” said Scott Shleifer, partner at Tiger Global Management, which invested in the company’s latest Series E round. “Meanwhile, Moj is well-positioned to seize the opportunity presented by the growth of short video in India. We are impressed with the team’s understanding of these rapidly evolving technologies and its ability to execute quickly,” he added.

TikTok revolutionized the viewing habits of the Indian population, with many users becoming video influencers on the platform. It had 200 million users and was downloaded 600 million times in India.
In the vacuum left by TikTok, many new apps have sprung up, including Josh, TakaTak, Roposo, Mitron, and Chingari.
Josh got investments from both Google and Microsoft.

ShareChat says it has advanced content recommendation technology which delivers tailored content for individual users based on their tastes. “Machine learning is a very big investment area for us. [We are] building that whole infrastructure and scaling our team across the world,” Sachdeva said.

The company has grown big in the past few months and expanded accordingly. It has doubled its workforce and hired 50 more AI engineers.

India’s increasing Internet penetration and a ready market of smartphone users have made it an attractive market for both the US and China who are readily investing in tech companies and startups here.
With the border dispute putting China into deep freeze, the US has gained the upper hand. In the past week alone, two startups— retail app Meesho and Finch Cred—haves raised investments from the US, pushing their valuation to $2 billion each. Investors included Facebook and Tiger Global, respectively. With the latest round of funding, ShareChat has raised $766 million in total.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Citizens Financial to acquire Investors Bancorp in $3.5 billion NYC push

Citizens Financial to acquire Investors Bancorp in $3.5 billion NYC push

Citizens Financial Group, Inc. and Investors Bancorp announced today that they have entered into a definitive agreement and plan of merger in a cash-and-stock deal worth $3.5 billi
19 hours ago
Apple Q3 Earnings Break Records Again!

Apple Q3 Earnings Break Records Again!

Apple Q3 earnings prove the Cupertino giant remains unaffected by the Covid-19 pandemic as sales rise across all product lines.
21 hours ago
Strong iPhone 12 sales could boost Apple’s Q3 2021 earnings

Strong iPhone 12 sales could boost Apple’s Q3 2021 earnings

Will Apple manage to post solid earnings in Q3 2021? Here’s what Wall Street’s top analysts have to say ahead of Apple’s Q3 2021 earnings report today.
2 days ago
Tesla earnings top $1 billion for the first time

Tesla earnings top $1 billion for the first time

Tesla earnings not only blew past analyst expectations but also marked the first time the automaker’s quarterly profit joined the three-comma club.
2 days ago
Elon Musk tweet pushes Dogecoin prices up again

Elon Musk tweet pushes Dogecoin prices up again

Dogecoin was launched as a joke in 2013. The cryptocurrency is up a staggering 6,000% compared to last year’s prices due to wild speculations.
2 days ago
Amazon to hire a crypto lead, may soon accept payments in cryptocurrency

Amazon to hire a crypto lead, may soon accept payments in cryptocurrency

The product lead will develop the full marketing strategy from customer experience to technical development to launching it.
3 days ago