ShareChat is in talks with Microsoft Corp. for an investment of around $100 million in the Indian content sharing platform, two people aware of the development stated.
If the deal materializes, the Microsoft funding will probably be about a third of what ShareChat is trying to raise in the newest funding round, the first person said on the condition of anonymity.
ShareChat is, nevertheless, likely to raise funds from present investors before closing deals with new ones, a second person accustomed to the development stated. The deal would possibly take a few months to close because the talks are at an early stage, this person added.
Microsoft’s curiosity in ShareChat comes at a time when the tech giant is negotiating the purchase of video-sharing app TikTok’s operations within the US and some other markets from China’s ByteDance.
Microsoft is now additionally trying to purchase TikTok’s services in India and Europe. The US firm initially said that it’s in talks to acquire TikTok’s operations within the US, Canada, Australia, and New Zealand.
If the Microsoft deal doesn’t work, then Bytedance may sell the India business to “international buyers or Indian buyers”.
Interestingly, ShareChat launched its Moj video-sharing service only a day after the Indian authorities banned TikTok. Helo, one other app owned by Bytedance, competes with ShareChat.
ShareChat had finally raised $100 million from Twitter, which pegged the valuation of the startup at $650 million.