YouTube acquires Indian social commerce startup Simsim

YouTube has acquired Simsim, an India-based social commerce startup, for an undisclosed sum.

Launched in 2019, Simsim connects local businesses, influencers, and customers using videos. Creators post video reviews on products from local businesses, which customers can watch before making purchases directly through the app.

The videos are available in three Indian languages: Hindi, Tamil, and Bengali. The multilingual feature helps the platform better reach customers who may not be proficient in English and prefer videos to text.

YouTube said the Simsim app will continue to operate independently for now.

Photo credit: Max Pixel

According to TechCrunch, two-year-old Simsim had raised about US$17 million before the acquisition. The startup was valued at US$50.1 million in a series B round last year.

Google-owned YouTube said that the acquisition was part of a series of ongoing investments in India through initiatives such as the India Digitization Fund. In April 2020, Google CEO Sundar Pichai announced that the fund would plow in US$10 billion into equity stakes, partnership agreements, and other investments in the country over the next five to seven years.

YouTube said that it was looking to grow its large creator community in India and make it even easier for mobile-first creators to get started on its platform following the success of its short-form video product, YouTube Shorts.

The latest investment also highlights the potential of the social commerce industry in India, which is estimated to reach up to US$20 billion by 2025 and US$70 billion by 2030, according to a Bain & Company report.

Already, Facebook-backed Meesho has emerged as a big player in the red-hot space. While startups such as Citymall and DealShare have also drawn investors’ attention, Walmart-backed Flipkart has also joined the social commerce bandwagon with the launch of Shopsy.

Earlier this month, lifestyle-focused and video-driven social commerce platform Trell raised US$45 million in a series B round led by Mirae Asset, H&M Group, and LB Investments.