Microblogging site Twitter is leading a $10 million financing in India's social networking app Sharechat. Two people familiar with the matter said it would be the first such investment in Twitter worldwide. The value of Sharechat, which is facing stiff competition from China's Bytedance for market share, could take 60-65 million in this funding round. Twitter is said to be worth more than $5 million and the rest will come from existing investors of share chats like Xiaomi, Shuanwei Capital, Morningside Ventures. Another person pointed out that Hillhouse Capital can also invest in Hong Kong in this round. Let us know all the details in detail
For your information, Twitter's founder Jack Dorsey is directly linked to the deal. Twitter is trying to increase penetration in India's small towns. Sharechat was negotiating with China's legendary internet company Tencent for money. Sources, however, pointed out that this second attempt to negotiate throughout the year could not be successful either. SanFrancisco's Twitter then stepped up to Sharechat. Aggregate Sharechat has already mobilized a risk capital of around $12 million. "Twitter never does this kind of minority investment," said one investor who monitors the segment. Usually, he buys companies. For Share charts, this investment is of great significance, especially given that the Bytedance has blown away a lot of users from its platform. '
Your special place, Sharechat, is built into user-generated content-based apps. However, the aggressiveness of the Bytedance in India has brought a lot of pressure on him. When contacted, Twitter declined to comment, while Share charts and Hillhouse did not respond to the financing rounds. Bytdance's short video app is a direct hit with Tik Tok and messaging platform Halo's share charts. Sharechat was founded by Ankush Sachdev, Bhanu Singh, and Fareed Ahsan. Sources said the company could also facilitate commerce on its platform after the new funding round. The Mohallachat that owns Sharechats did not register an income in the financial year 2018. His income from other sources was Rs 1.7 crore and incurred a loss of Rs 34 crore. Sharechat had raised Rs 720 crore in September last year at a valuation of Rs 3489 crore.