The dad or mum firm of India’s ShareChat has raised practically $300 million (roughly Rs. 2,325 crore) in contemporary funding from Alphabet’s Google, media large Times Group and Singapore’s Temasek Holdings, valuing the social media agency at practically $5 billion (roughly Rs. 38,763 crore), two sources concerned within the deal discussions instructed Reuters.

A deal is ready to be introduced as early as subsequent week, the sources added.

ShareChat’s dad or mum firm, Mohalla Tech, didn’t reply to a request for remark. Google and Temasek didn’t instantly reply to requests for remark, whereas Reuters couldn’t instantly attain the Times Group.

This is Google’s second key funding in India’s brief video house, having beforehand backed Josh, which competes with ShareChat’s sister agency Moj.

Google’s funding in a bearish marketplace for Indian start-ups reveals the urge for food for the brief video sector and the start-up’s funding thesis, one of many sources mentioned. India’s tech startups, which raised a document $35 billion (roughly Rs. 2,71,337 crore) in new funds in 2021, have been struggling to lift funds as company governance issues loom massive for buyers dealing with a brand new uncertainty in international markets.

Short video apps like Moj and Josh shot up in recognition after India in 2020 banned ByteDance’s TikTok and another Chinese apps following a border conflict with China.

ShareChat at present has 180 million month-to-month lively customers. Moj, together with Mohalla’s lately acquired MX TakaTak, has a mixed consumer base of 300 million, in response to one of many sources.

ShareChat was final valued at $3.7 billion (roughly Rs. 28,686 crore) in a $266 million (roughly Rs. 2,062 crore) funding spherical from buyers together with Alkeon Capital and Temasek. The agency additionally counts Twitter and Snap amongst its buyers.

If the bid by Tesla CEO Elon Musk to purchase Twitter goes via, Musk could have probably a stake of between 6 p.c and eight p.c in ShareChat, the supply added.

© Thomson Reuters 2022