India's ShareChat raises $502 mn from Snap, Twitter, others: Details here

By Aditya Kalra

NEW DELHI (Reuters) - Indian content-sharing platform ShareChat said it has raised $502 million in fresh funding from Tiger Global, Snap Inc and some existing investors such as Twitter Inc, valuing it at more than $2 billion.

The funding was led by U.S. venture capital firm Lightspeed Venture Partners and American investment firm Tiger, ShareChat said in a statement on Thursday.

Tiger Global and Snap, owner of popular photo-messaging app Snapchat, are new investors in the Indian platform.

The funding signals growing investor interest in Indian social media apps that are looking to tap into pent-up demand after New Delhi banned dozens of Chinese apps, including ByteDance's TikTok, following an India-China border clash last year.

Moj and other similar alternatives of the popular video app TikTok have been finding favour with users in India, where smartphone use has been rapidly surging.

ShareChat is now valued at little more than $2.1 billion, it said, adding that new funds will be used to double down on technology initiatives and support user growth.

"With this infusion of capital we would continue to aggressively grow our user base," ShareChat CEO Ankush Sachdeva said.

The ShareChat app has 160 million users in India and Moj has 120 million. Moj and other similar TikTok alternatives have been finding favour with users in India, where smartphone use has been rapidly surging.

ShareChat has plans to raise more funds from investors in the coming months, a source familiar with its plans said.

The company declined to comment on future funding plans.

ShareChat's valuation makes it India's latest "unicorn", which describes tech startups valued at more than $1 billion.

Including the latest funding, ShareChat has now raised $766 million over six funding rounds.

 

(Reporting by Aditya Kalra in New Delhi; Editing by Himani Sarkar)


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel