ShareChat, an India-based content sharing platform has secured US$266 million in funding from Alkeon Capital (a US-based firm) and its existing investors, taking its valuation to US$3.7 billion.
This is ShareChat’s third funding round this year. The latest funding round also saw participation from Temasek Holdings Singapore and Moore Strategic Ventures.
The Bengaluru-based startup will be using the fresh capital to develop its app’s artificial intelligence-based capabilities.
Short-video and content sharing apps have gained popularity in India since last year when the government had imposed a ban on TikTok and various other Chinese apps due to the India-China border tension.
AfterTikTok was banned, ShareChat had launched its Moj app on similar lines. It is a short-video sharing app that has about 160 million users and considers Instagram Reels as its key competition.
The company boasts 180 million active users to date. ShareChat’s platform allows users to post content in 15 Indian languages. According to the company, users of its Moj app spent an average of 34 minutes per day consuming video content.
“Both our products have been leading the market … This fresh funding will further strengthen our position and help us deliver immersive social experiences,” Ankush Sachdeva, ShareChat’s CEO, said in a statement.
Video sharing and social media apps in India have been sought after by investors who want to capitalize on the country’s rapidly growing internet and smartphone user base. Consumers in both urban and rural India have been increasingly consuming digital video content through streaming platforms or apps.
ShareChat was founded by Bhanu Pratap Singh, Farid Ahsan, and Ankush Sachdeva in 2015 to offer content sharing and consumption platforms only in Indian vernacular languages.
The startup is backed by a range of investors including HarbourVest Partners, Temasek Holdings, India Quotient, Moore Strategic Ventures, Alkeon Capital, Lightspeed Venture Partners, Xiaomi among others.
ShareChat had raised US$145 million in July 2021 from Temasek and others at a valuation of about US$3 billion.