- Homegrown social media site ShareChat has acquired Circle Internet, a hyperlocal communication network. The software offers local knowledge.
Homegrown social media site ShareChat has acquired Circle Internet, a hyperlocal communication network. The software offers local knowledge to Internet users of the Indian language in Tier-II and Tier-III cities with a presence right now in Uttar Pradesh, Rajasthan and Kerala. This has a network of more than 1000 volunteers, the firm said in its announcement.
Although their existing 15-member team will join ShareChat’s team, the app will be allowed to function independently. The company says it will help create a “language-first user-generated, community-driven hyperlocal content ecosystem.”
The Twitter-backed social media site has been developing its short-video app, called Moj after Bytedance-owned TikTok and Helo were blocked by the Indian government. ShareChat itself is also a social network that targets users in Tier-II and Tier-III cities, and the company may use Circle Internet’s knowledge to enrich both platforms’ content.
“Circle App will continue to evolve independently, encouraging our users to post more important and interactive content on the app,” said Manohar Charan, ShareChat’s vice president of corporate development and strategic finance.
“To diversify the user spectrum at ShareChat, circle users can be further leveraged and drive more community-driven commitments,” he said.
Shashank Shekhar, chief executive, and co-founder of Circle Internet, also said the company could use a “robust user-generated content strategy” to scale across India and enter other states. “With their wide scope, language-first approach experience, efficient content serving algorithms, we will soon reach out to most districts across India,” he added. Shekhar was the head of business operations at ShareChat before he started operating Circle.
ShareChat currently has more than 130 million monthly active users (MAUs) and has sought to take advantage of India’s absence from TikTok despite the government’s prohibition. The firm has also recently been in negotiations with Microsoft for an investment of about $100 million. The Circle Internet is funded by companies like SAIF Capital, and Venture Highway.
Google is in talks with ShareChat to invest in the social media business headquartered in Bengaluru.
ShareChat is looking to raise $150-200 million and is engaged in talks with investors and technology firms as it is preparing to battle over a dozen rivals to fill the void left by blocked Chinese apps, including TikTok and Helo. JPMorgan advises the organization on fundraising.
