Twitter lately held talks to amass Indian social media startup ShareChat as the corporate explored methods to broaden its presence on the planet’s second largest web market and construct a world rival to TikTok, three sources aware of the matter instructed TechCrunch.
The American agency, which is already an investor in Bangalore-based ShareChat, provided to purchase the five-year-old Indian startup for $1.1 billion and had dedicated a further funding of $900 million, two of the sources mentioned. ShareChat, backed by Lightspeed Companions India, Elevation Capital, and India Quotient amongst others, has raised about $260 million so far.
The talks didn’t materialize right into a deal, two sources mentioned, requesting anonymity because the matter is non-public. TechCrunch couldn’t decide the rationale the 2 corporations ended the talks.
Two sources mentioned Twitter had expressed intention to take Moj, a short-form video app that ShareChat owns, to worldwide markets and place it as a rival to Chinese language app TikTok.
Twitter declined to remark and ShareChat didn’t reply to a request for remark.
India’s ban on TikTok final 12 months prompted scores of native startups and worldwide giants to attempt their palms at short-form video format.
Moj, with over 80 million customers already, has emerged as one of many largest gamers within the class. Earlier this month, Snap inked a cope with ShareChat to combine its Digicam Equipment into the Indian brief video app. That is the primary time Snap had fashioned a partnership of this type with a agency in India.
With the buyout provide not being entertained, ShareChat has resumed talks with different traders for its new financing spherical. These traders embody Google, Snap, the sources mentioned.
TechCrunch reported in January that the Indian startup was speaking to Google and Snap in addition to some current traders together with Twitter to boost over $200 million. A possible acquisition by Twitter extended the funding talks.
ShareChat, which claims to have over 160 million customers, affords its social community app in 15 Indian languages and has a big following in small Indian cities and cities, or what enterprise capitalist Sajith Pai of Blume Ventures refer as “India 2.” Only a few gamers within the Indian startup ecosystem have a attain to this phase of this inhabitants, which due to customers from even smaller cities and villages — referred to as “India 3” — getting on-line has expanded in recent times.
In an interview with TechCrunch final 12 months, Ankush Sachdeva, co-founder and chief government of ShareChat, mentioned the startup’s marquee app was rising “exponentially” and that customers had been spending, on a mean, greater than half-hour a day on the service.
Twitter, itself, has struggled to make inroads exterior of larger cities and cities in India. Its app reached about 75 million customers within the nation within the month of January, in line with cellular perception agency AppAnnie, information of which an trade government shared with TechCrunch. It inked a cope with information and social app Dailyhunt to carry Moments — curated tweets pertaining to information and different native occasions — to the Google-backed Indian app.
The American social community has broadened its product providing prior to now 12 months amid strain from activist traders to speed up development.