ShareChat is in talks with Tencent Holdings and others for funding at a valuation of $600-700 million
Tencent’s deep pockets and strategic expertise could help ShareChat counter ByteDance's Helo and TikTok
Bengaluru/Mumbai: ShareChat, a regional language video and picture sharing app, is in initial talks with Tencent Holdings Ltd and other investors to raise as much as $200 million, according to two people familiar with the matter. The Bengaluru-based social media startup, run by Mohalla Tech Pvt. Ltd, has been struggling to grow over the past few months after Chinese media giant ByteDance launched ShareChat clone Helo and short video app TikTok in India last year.
If ShareChat is successful in raising the funds, this will give the company the required firepower to take on ByteDance, the world’s most valuable startup.
ShareChat is seeking a valuation of $600-700 million in the latest round of funding, one of the people cited above said on condition anonymity. The company was valued at around $460 million when it last raised money in September.
“(ShareChat) is looking for strategic investors with social media expertise," said the same person cited above.
The Shunwei Capital-backed company would benefit from an investment by Tencent, best known for its WeChat messaging service, as well as numerous games and other content platforms.
Tencent’s deep pockets and strategic expertise could help ShareChat counter Helo, TikTok and other Chinese rivals.
In contrast, both Helo and TikTok witnessed stupendous growth trajectory—with the former at almost four million daily active users and the latter at about 20 million daily active users as of December-end.