Tech giant Google, which is keen to invest in Indian platforms, is said to be in negotiations to buy the Indian social media platform ShareChat.
According to news reports, ShareChat, which gained traction in the wake of the ban on Chinese apps like TikTok, is estimated to be worth around $ 1.03 billion. We predicted it would be one of the 5 apps that will make the most of the ban on Chinese apps.
If the deal goes through, Google will buy out the entire company, leaving a small share for the founders.
ShareChat was founded in 2015 by Ankush Sachdeva, the CEO of the company, Bhanu Pratap Singh is the CTO and Farid Ahsan is the COO.
Both companies have not responded to the media reports.
It should be recalled that there were market reports in August 2020 that Microsoft could invest the $ 100 million in ShareChat in a round of funding.
Why is Google interested in ShareChat?
Google had a ‘Google for India Digitization Fund’ earlier this year, promising to invest Rs 75,000 crore, or about $ 10 billion, in India over the next 5-7 years.
Sundar Pichai, CEO of Google and Alphabet, said, “We will do this through a combination of equity investments, partnerships and operational, infrastructure and ecosystem investments. This reflects our confidence in the future of India and its digital economy.”
ShareChat is usually a startup that would interest Google.
It is a company that can give Google a big social boost, especially in a huge market like India’s. More importantly, in the small towns.
Google’s move is seen as a bid by the technology giant to increase its traction in the local content space.
ShareChat registers a growth of 166%
ShareChat is in 15 languages, has a short video formal called Moj, and has 160 million active users. It is said to have won 100 minutes after India banned TikTok and other Chinese apps. That’s a 166% peak in the number of monthly active users.
During these months, the daily average usage time spent on the platform has also increased from 24 minutes to 31 minutes.
The growth of the social media platform in Tier II and Tier III areas may have been very attractive to Google.
ShareChat recently conducted a study of how Indian users in Tier II and Tier III cities have become more relevant and important as they dominate usage patterns.
It has also cleverly and strategically positioned itself as an Indian alternative to Chinese apps. Immediately after the government imposed a ban, it was one of the first companies to welcome the decision.
“This is a welcome move by the government against platforms that have faced serious privacy, cybersecurity and national security risks. We expect the government to continue its support of the Indian startup ecosystem,” said ShareChat.
ShareChat already has a number of investors such as Twitter, Lightspeed, Elevation Capital.