Bangalore-based regional social networking platform ShareChat is planning to secure around $100 million fresh funding from new investors. There are reports claiming that microblogging site Twitter and Hong Kong-based investment management firm Hillhouse Capital will infuse the funds in the firm with the existing backers' support. The said funds will value the company around $600 million to $650 million.
The last investment for the firm came from Chinese VC firm Shunwei Capital in September as Series C financing which was worth $99.2 million. Xiaomi, Morningside Venture Capital, India Quotient, Lightspeed Venture Partners, Kesmond Holdings, and Venture Highway are few of the other backers of the company.
ShareChat was launched in 2015 by Ankush Sachdeva, Bhanu Singh, and Farid Ahsan. Using the platform, users can share contents like e videos, jokes, GIFs, audio songs and funny images from India in various languages like regional Hindi, Telugu, Marathi, and Malayalam. The founders of the company are IIT-Kanpur alumni. The other notable features of the firm are anonymous chat, direct messaging, and original video content in the form of ShareChat Talkies.
The firm competes with big names like Chinese social media company ByteDance’s apps, TikTok and Helo. Notably, with the data cost going down, the masses are connecting through the internet and utilizing such platforms. TikTok which has a massive audience in the country says that nearly 49% of its user base is from India.
It will be interesting to see how ShareChat utilizes the fresh funds once it arrives and what impact Twitter and other new backers will have on the platform.
Image Courtesy : socialsamosa