Sharechat’s parent firm, which also owns short-video app platform Moj, is in the process of gathering $500 million and will be estimated at $5 billion.
Mohalla Tech, the company that manages social networking platforms Moj and ShareChat, is in initial discussions to raise $500 million to $600 million as part of fresh investment, said two people conscious of the discussion.
The startup is expected to raise the capital at a valuation of $5 billion; the people responded asking anonymity. The size of the fundraise can be increased to $650 million among interest from foreign investors, one of the two people shared.
The latest investment plans come on the heels of Mohalla Tech raising almost $647 million this year. In July, it raised $145 million, continuing its $502 million Series F round driven by Singapore state investor Temasek, Moore Strategic Ventures, and Mirae-Naver Asia Growth Fund.
The July funding valued Mohalla Tech at $2.88 billion, up from the $2.1 billion valuations it was ascribed in April.
Established in October 2015, the organization has raised near to $1 billion till date over progressive funding rounds.
“There is increasing investor interest among short-video apps as they continue to get more creators and users from smaller towns and cities, unlocking newer demographics. With newer models of video-led social commerce, these companies are also now opening monetization streams. Further, it takes a large amount of capital to scale these models,” the second person spoke.
In August, Mohalla Tech’s arch-rival, VerSe Innovation, the parent firm behind local language news aggregators Dailyhunt and short-form video app Josh, also raised $450 million from marquee global investors including Siguler Guff, Baillie Gifford, affiliates of Carlyle and Asia Partners Growth II. With the funds, VerSe Innovation was valued at nearly $3 billion.
The short-video division is set to become the second-biggest section in terms of time spent on them by users, after internet titans such as Facebook and Google, according to consulting firm RedSeer.
The segment’s monthly active users are expected to more than double to 650 million by 2025, obtaining the second place after television. The growth will be primarily driven by 300 million internet users that are expected to be united by 2025.