Google backs India's ShareChat in $300 Million

ShareChat's parent company in India, Mohalla Tech has raised nearly $300 million in new funding from Alphabet Inc's Google, media giant Times Group and Singapore's Temasek Holdings, valuing the social media company at a premium close to $5 billion.

This is Google's second significant investment in the short-form video space in India, after backing Josh, which competes with ShareChat's sister company Moj. Google's investment in the declining market of Indian start-ups shows the willingness to invest in the short video sector and start-ups investment thesis, one source said. Indian tech startup raising record $35 billion in 2021.

Short video apps like Moj and Josh became popular after India banned ByteDance's TikTok and other Chinese apps in 2020 following a border dispute with China. ShareChat currently has 180 million monthly active users. According to one source, Moj and Mohalla recently acquired MX TakaTak with a total user base of 300 million.

ShareChat was recently valued at $3.7 billion in a $266 million round of funding from investors such as Alkeon Capital and Temasek. The company also counts Twitter and Snap as investors.