Mobile internet companies have seen a stellar rise in the Indian market due to cheaper data rates and affordable smartphones. Since the advent of Jio, the power of 4G has reached even to the remote parts of the country and it has also exploded the data consumption in India. One major impact of the increase in data usage is increased connectivity. People are keeping in touch with global as well as local social media platforms.
The social media platforms, entertainment and media applications have now witnessed an unprecedented growth in the vernacular language users. Capitalising on this trend, Indian social media platform ShareChat reached out to over 8 million daily active users. The Bengaluru-based social media platform has recently raised around $100 million to take the valuation to over $460 million. This is almost 7 times of the valuation from the last time when it raised $18 million at a valuation of $67 million.
According to the documents from Registrar of Companies, the recent funding was led by existing investor Shunwei Capital along with new investors Morningside Ventures of China and Jesmond Holdings, an affiliate of Russian billionaire Yuri Milner’s DST Global. Other investors include Xiaomi, SAIF Partners and Lightspeed Venture Partners.
The rise of Sharechat shows that the Indian vernacular languages apps have a huge potential. The Indian market is still largely dominated by foreign players such as Facebook, Whatsapp and so on, however, Indian startups are seeping into the social media platforms and disrupting the ecosystem.