Indian Social Media & content-sharing platform ShareChat is in early-stage talks with U.S.-based Sequoia Capital and some other investors to raise up to $200 million, which could value the company at over $1 billion, three sources aware of the matter told Media.
Sharechat has seen over 100 per cent growth in its downloads and active user base in India since the government blocked 59 Chinese apps, including Tiktok, in June.
ShareChat has appointed JPMorgan to advise on the new fund raising which it expects to complete before the end of the year, said the sources, who declined to be named as the talks were private.
“Sharechat is in active discussion with Sequoia Capital to raise around Rs 1,500 crore. It should take valuation of Sharechat to around Rs 7,500 crore. In normal course, the transaction should be done within a quarter,” the source told PTI.
Sharechat declined to comment on the issue.
ShareChat allows users to post content in 15 Indian languages and after TikTok was banned, it launched a similar short-video sharing app named Moj which has clocked up more than 50 million downloads so far.
The money raised by ShareChat will be used to grow its video app further, bring more content creators to its platform and raise its marketing spend, said the first source.
“Investor interest in the company (ShareChat) is strong and 2020 may end up being their best year,” the source added.
According to industry estimates, Sharechat’s monthly active user base has grown to 14 crore from around 6 crore a month ago.
Similarly, the app’s total downloads are estimated to have crossed 20 crore from around 9.8 crore a month back.