Tiger International-backed ShareChat and Occasions web video-on-demand streaming service MX Participant have agreed to “strategically merge” short-form video app Moj and MX TakaTak, the 2 corporations mentioned on Thursday, creating India’s largest short-form video platform. . – video platform.
The deal is structured like this: MX Media, the mother or father firm of MX Participant and MX TakaTak, and its shareholders have gotten strategic homeowners of Mohalla Tech, the mother or father agency of ShareChat. The deal is price about $900 million, which incorporates money and fairness, based on TechCrunch.
“This strategic partnership will enable MX Media and ShareChat to leverage the advantages of long- and short-form collaboration on a broader scale and at an accelerated tempo,” the 2 corporations mentioned in a joint assertion. They didn’t disclose the phrases of the deal.
Their merger is the strongest signal but of the broader consolidation to return within the Indian quick video app market.
After New Delhi banned TikTok in mid-2020, numerous native startups got here up with their very own choices to money in on the vacuum left by the Chinese language app on this planet’s second-largest web market. Earlier than the ban, TikTok reached greater than 200 million customers in India, making the South Asian nation its largest abroad market when it comes to customers.
Information aggregator DailyHunt and promoting large InMobi are two different huge gamers at present working within the short-form video house in India.
“We’re delighted to announce the strategic integration of two of India’s hottest social media platforms. MX all the time strives to supply world-class merchandise and Takatak isn’t any exception,” mentioned Karan Bedi, CEO, MX Participant.
“This, mixed with Moj’s AI and execution capabilities, makes the enterprise a really international short-form video platform. “MX has created two ‘unicorns’ in a single enterprise, unlocking important worth for our shareholders, and can now considerably improve our monetary assets and proceed to double down on OTT.”
MX TakaTak will function as a separate platform for now, however the two apps’ generator bases, content material supply and advice algorithms could ultimately be mixed, the corporations mentioned. No choice has been made on whether or not one of many apps will take in the opposite or proceed to work collectively of their present avatars, a supply aware of the matter mentioned, which might take a number of months.
The short-form video app has greater than 100 million creators and reaches greater than 300 million month-to-month energetic customers, the corporations mentioned, with out saying whether or not there was any overlap.
“At Mohalla Tech, we’re constructing India’s largest AI-powered content material ecosystem, which is on an unprecedented progress trajectory,” mentioned Ankush Sachdeva, Founder and CEO, ShareChat.
“MX TakaTak is a well-liked platform and this merger additional strengthens our place within the quick video ecosystem. With this growth, we’re constructing the biggest content material platform on Moj with the biggest person neighborhood throughout India, with over 300 million MAUs by the top of 2022. aiming to realize.