Mobile Internet

ShareChat acquires Clip to increase its user base and compete with TikTok

Sharechat application in Google Playstore

Indian internet space has been transformed since the disruptions brought in by Reliance’s Jio. The dirt cheap internet rates and affordable smartphones have made the country an internet frenzy. The internet users especially the youth is stuck on to their smartphones for the major portion of their time and this has led to opening up of new businesses.

Content creation space is a huge business in India now. Since the internet is cheap and easily available even in the rural areas and tier 2 and tier 3 cities, users have been gobbling up data like never before. This has attracted entrepreneurs to start new businesses in the content space.

Mohalla Tech owned ShareChat is a platform, which allows the users to download contents such as WhatsApp status, cards and entertaining videos. Users then use these contents to either post on their Whatsapp or share with near and dear ones.

Clip is another smaller player in the same space. It is owned by Transversal Tech. Some of the popular investors have invested in the platform such as Matrix partners, Shunwei capital and India quotient.

Both the applications rank among some of the most innovative startups in India in 2018 as mentioned by Inc42. They have catered to a large number of Indian users recently. However, their growth has been affected after the advent of Chinese giants in the market. ByteDance is the largest startup in the world and they have entered the Indian content space with their application TikTok. This is currently the most popular app in its category in India.

Considering the rapid growth of the Chinese applications in India, the local players had to think of ways to counter them. However, we have to consider the ill impacts of these applications on the youth. The crucial question is a value addition. Smartphones are one of the most important innovations in human history. However, these applications do not add any value to the smartphone users. In fact, these applications just cater to the need of fun in a much degraded manner. These applications are facing a backlash from the government also due to the quality of content offered.

The companies that have these applications are now giving stress on good quality content and not just a short useless video. It has to be understood that most of the users of these platforms are from tier 3 and 4 cities or rural areas where the level of education is very low.

The Indian internet ecosystem needs applications that can offer something valuable for today’s youth. Something that can help the youth to learn a new skill or gain some knowledge will be more beneficial instead of such useless content sharing applications.

-Soumya De

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  1. […] the latest capital infusion in ShareChat, The company’s current valuation is $600-$650 million. ShareChat is India’s largest regional social network allowing users to share their opinions, record their […]

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