Sharechat is primarily a content sharing tool for WhatsApp, which was reportedly getting deeper integration to the messaging giant. And now the word on the street is that Google is planning to buy out the growing social media platform. As per people privy to the matter, both parties have signed a term sheet or non-binding proposal, and due-diligence is in progress.
“The founders (of ShareChat) may retain a small stake post the deal”, enunciates a source to ET. It is further revealed that all the prevailing investors will be exiting the company, once the deal goes through. Well, if it does, the American company will earn a big piece of the Indian social media pie. ShareChat was last estimated to be valued at about $650 million. It had raised funds worth $264 million in a recent investor round.
The Bengaluru-based company has clocked a 166% surge in its monthly active users (MAUs) from 60 million during the pandemic to 160 million in August of this year. The average daily time spent by the users on the app is around 31 minutes. Moreover, ShareChat has succeeded in expanding to Tier 1 or metropolitan cities during the past few months.
“More funds will be required if the company expands globally taking the platform to countries in the Middle East. It is a good time to sell since this is a money intensive business. There is a lot of capital required to get music licenses, influencers, etc. Moreover, it is a very competitive market to be in with the launch of so many players,” the source adds.
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The ban of TikTok has left a big void in the Indian social media space. And every local and global actor is trying to capture it. We’ll see whether the speculated Google ShareChat deal bears any fruit soon.