Indian unicorn ShareChat hits $5b valuation after closing $520m round

Mohalla Tech, the parent firm of India-based social media unicorn ShareChat, has hit a valuation of US$5 billion after raising US$520 million in a multi-tranche funding round.

ShareChat co-founder and CEO Ankush Sachdeva / Photo credit: Mohalla Tech

In the final tranche of the round, ShareChat raised US$255 million from US-based tech giant Google, India-based media conglomerate Times Group, and Singapore-based investor Temasek.

In the first part of the round, which was held in December 2021, ShareChat secured US$266 million from Alkeon Capital, Temasek, HarbourVest, Moore Strategic Ventures, and India Quotient.

ShareChat entered unicorn territory in 2021, collectively raising US$913 million that year – the highest funding amount among all companies that became unicorns last year. Ankush Sachdeva, the company’s co-founder and CEO, said that the coming year will be about scaling and building robust revenue models.

Mohalla Tech, which also owns short video app Moj, acquired competitor MX TakaTak for an undisclosed sum in February. Sources recently estimated the size of the cash and stock deal at about US$700 million.

With the acquisition, ShareChat now runs India’s largest short-video ecosystem, catering to over 400 million users. It has focused on monetizing its various platforms, going beyond advertising into areas like virtual gifting and video commerce.

See also: Can India recreate China’s live commerce magic?

Separately, Google also invested in VerSe Innovation, which runs short-video app Josh. The company is valued at US$5 billion.

A flurry of homegrown short-video apps has captured the Indian market after the government banned China’s TikTok last year. India’s short-video sector is expected to grow 2x to reach 650 million monthly active users by 2025.