Google is said to be in talks with India’s Mohalla Tech, which owns ShareChat.A $300 million funding over a $5 billion valuation has been agreed upon.
Google and a few others are said to be in talks with Mohalla Tech‘s ShareChat for a $300 million investment in the short video platform.It is valued at $5 billion, and the transaction is expected to close this month.
ShareChat is backed by Google, Temasek, and others
TikTok (formerly Musical.ly) has transformed the video creation process to a whole new level since its inception.Short videos were well received, and soon after, other popular apps such as YouTube and Instagram introduced their own alternatives – Shorts and Reels.
While these international behemoths expanded globally, Indian startups such as ShareChat, MX TakaTak, and Moj entered the fray.As of today, ShareChat has over 180 million users, and Alphabet Inc’s Google appears enthralled by its success, as it announces its second investment in an Indian short video platform.
According to Reuters, ShareChat’s parent company, Mohalla Tech, is in talks with Google to close a $300 million funding round at a $5 million valuation.Temasek and other investors are also backing the Indian start-up Mohalla Tech, in addition to Google.The agreement is set to expire in June.
“Mohalla Tech is in advanced discussions with Google, Temasek, and other investors to close a USD 300 million funding round.”The transaction is expected to be worth around USD 5 billion, according to an industry source.
Mohalla Tech did not respond when asked about the deal.Google and Temasek did not reveal any details about the funding.
While Google has invested in ShareChat, a popular short video sharing platform, it is worth noting that it is not the only company that Google has invested in.Google previously invested in Josh, another Indian short video platform that competes with ShareChat.
It demonstrates the enormous potential of the short video space in markets such as India.As previously stated, ShareChat has 180 million monthly active users.The numbers reveal the brilliance of the short video apps.Moj and MX TakaTak, which was recently acquired by Mohalla Tech, have a combined user base of 300 million.