Google investment has an interest to sponsor the India short video sector App which have over 180 million users currently.
The parent company of India’s ShareChat has raised nearly $300 million (roughly Rs. 2,325 crore) in fresh funding from Alphabet’s Google, media giant Times Group and Singapore’s Temasek Holdings, valuing the social media firm at nearly $5 billion (roughly Rs. 38,763 crore), two sources involved in the deal discussions told Reuters.
A deal is set to be announced as early as next week, the sources added.
ShareChat’s parent company, Mohalla Tech, did not respond to a request for comment Google Temasek did not immediately respond to requests for comment, while Reuters could not immediately reach the Times Group.
This is Google’s second key investment in India’s short video space, having previously backed Josh which competes with ShareChat’s sister firm Moj.
Google’s investment in a bearish market for Indian start-ups shows the appetite for the short video sector and the start-up’s investment thesis, one of the sources said. India’s tech startups, which raised a record $35 billion (roughly Rs. 2,71,337 crore) in new funds in 2021, have been struggling to raise funds as corporate governance concerns loom large for investors facing a new uncertainty in global markets.