ShareChat Targets to Raise US$400 Mn in New Funding Round

Published By : 07 May 2018 | Published By : QYRESEARCH

In what is expected to be the most aggressively contested investment deal in a startup, over about six leading financial and strategic investors, including Naspers, a South African media firm, Tencent, the owner of WeChat, DST Global, a leading investment firm, Toutiao and Kwai, China-based online media players, Amazon, and Hillhouse Capital and Morningside Ventures, are in the stage of discussion to invest into ShareChat, a regional language social platform, sources close to this matter stated.

The arrangement is likely to raise the valuation of the startup 4-5 times to US$400 mn in the next 6 months after it generated funds from Xiaomi, the Chinese telecom giant and Shunwei, a China-based venture capital, late last year, further added by the sources. The three-year-old startup had raised around US$75 mn valuation from investments. The high interest of investors in ShareChat highlights how social networks and digital media, focused towards new Internet users, is turning into the next big topic as the funding environment is gearing up again.

"ShareChat is in talks to generate nearly US$100 mn up in capital investments and existing investors, such as Shunwei and Xiaomi are also anticipated to take part in this round," said one of the sources. The startup has still not declared, which of the investors will participate in the round, said the source, adding that the agreement will take some time to finalize. Two new investors are likely to be onboard in the near future.

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