The parent company of India’s ShareChat will acquire local rival MX’s short-video platform in a deal worth about $700 million, as competition heats up in a sector in which foreign investors have placed major bets.
Indian short-video apps have become popular since New Delhi
banned ByteDance’s TikTok and some other Chinese apps in 2020 following a
border clash between the armies of the two Asian giants.
After TikTok was banned, ShareChat’s parent entity, Mohalla
Tech, launched a similar short-video sharing app named Moj, which has over time
garnered 160 million users. MX has roughly 100 million.
In a cash-and-stock deal, ShareChat’s parent entity will
acquire MX’s short-video platform called TakaTak, the sources familiar with the
discussion said.
The deal could be announced within days, a source revealed.
ShareChat and MX declined comment.
ShareChat, in which Singapore’s Temasek Holdings and US app
Twitter are investors, is valued at about $4 billion.
With the MX TakaTak acquisition, ShareChat’s parent will now
have two short-video apps in its portfolio. The company has plans to deepen its
use of artificial intelligence tools and reach a much wider audience.
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