Mohalla Tech, which owns social media platform ShareChat and short video app Moj, has raised a fresh $502 million in funding at a valuation of $2.1 billion. With this investment which was led by Lightspeed Ventures and Tiger Global, the company has joined the league of unicorns.
Other investors, including Snap, Twitter and India Quotient, also backed the financial round.
The firm will deploy the fresh capital to grow its user base, improve platform safety features besides “doubling down on tech initiatives”, it said in a statement. Moj and ShareChat jointly have about 280 million users, the company claims.
ShareChat had closed a $40-million funding round in September last year to build on the growth of Moj. With India banning several Chinese apps last year, including the popular short video app TikTok, the demand for homegrown short video platforms have increased. In 2019, the company had garnered $100 million in funding from a clutch of investors. In all, Mohalla Tech has raised close to $800 million from its backers.
“We are at a significant inflection point in our company’s journey — as the Internet penetration further deepens in India we are well-positioned to expand our ecosystem of products to over one billion MAUs (monthly active users) cumulatively,” CEO and co-founder Ankush Sachdeva said in a blog.
Dailyhunt parent VerSe Innovation has raised over $200 million from investors across two funding rounds in the recent past to scale up its short video platform Josh. As of February, Josh had a monthly active user base of 85 million.
Mohalla Tech is the ninth company to have entered the unicorn club in the current year. Earlier this week, Facebook-backed social start-up Meesho, fintech players Cred, Groww and PharmEasy turned unicorns with fresh investments.
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