Xiaomi Invests USD 18.2 million In Social Networking Platform ShareChat

Create: Fri, 01/19/2018 - 12:55
Author: Anonymous
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ShareChat, a Vernacular social networking platform has raised $18.2 million (Rs 116.31 Crore) in a Series B funding round led by Chinese smartphone manufacturer Xiaomi.

Xiomi, according to Ministry of Corporate Affairs (MCA) filings has put in Rs 36.84 crore ($5.76 million). Whereas, Shunwei Capital, a venture fund started by Xiaomi founder Lei Jun, invested Rs 18.01 crore ($2.82 million). The remaining funds came from existing investors SAIF Partners ($4.29 million), Lightspeed Partners ($2.94 million), India Quotient ($2.06 million) and Venture Highway ($264,600).

Sharechat is a networking platform which is operated by Bengaluru-headquartered Mohalla Tech Pvt. Ltd. It was founded in 2015 which allows users to create, discover and share content such as videos, jokes, songs and images. It is an Android app which has more than 10 million downloads on the Google Play Store, is available in multiple Indian languages such as Hindi, Telugu, Marathi, Gujarati, Punjabi, Malayalam, Bengali, Tamil, Kannada and Odia.

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Xiaomi and Shunwei Capital were in the advanced stages of an investment deal with ShareChat. The valuation of the three-year-old social networking platform was done at Rs 400 crore-Rs 500 crore.

In November 2016, ShareChat had raised $4 million (Rs 27.5 crore) in a Series A round led by Lightspeed India Partners. Other participants included SAIF Partners and India Quotient, as well as Delhi-headquartered early-stage venture capital firm Venture Highway and in October 2015, it had raised $1.35 million from SAIF Partners and India Quotient. ShareChat was also one amongst several startups selected by Google for its accelerator programme. As part of the programme, the firm had received $50,000 in equity-free seed funding.

ShareChat had recorded a 14-fold rise in gross revenues at Rs 78.40 lakh in the financial year 2016-17, up from Rs 5.56 lakh the previous year. Fresh investors like Xiaomi Inc made its first publicly-disclosed investment in India in April 2016. It had led a $25-million round in online entertainment company Hungama Digital Media Entertainment as part of its strategy to introduce local content on its smartphones. Whereas in Last April, Shunwei Capital and Accel Partners invested Rs 25.5 crore (around $3.8 million) as part of a Series A round in gaming startup Mech Mocha. The Chinese VC firm had closed its third fund in July 2015 with a capital commitment of $1 billion.

Image Courtesy- facebook, Entrackr

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