Social media giant Twitter reportedly held talks to acquire India-based social media startup ShareChat to create a global TikTok rival and expand in the Indian market, three sources who wanted to remain anonymous shared with TechCrunch.
The sources said that Twitter offered to acquire the social media startup, which it is already an investor of, for $1.1 billion and an additional investment $900 million.
However, the talks didn’t end up with a deal and it is unknown why the companies ended the talks.
The sources said that Twitter shared intentions to build a TikTok-rival by taking the ShareChat-owned short video app Moj to the global market.
UPDATE (08.04.2021): ShareChat raises $502 million at a $2.1 billion valuation
In June 2020, the Indian government banned TikTok and 58 other mobile apps due to national security concerns. The removal of TikTok in its biggest overseas market created a great opportunity for other tech companies to offer similar products in the country.
Shortly after the ban, Instagram launched its short video feature Reels in India which was later launched globally. In the meantime, Instagram also offered money to high-profile TikTok creators to lure them to its new service.
Moj is a highly popular short-from video app with over 80 million active users already. In the beginning of this month, Snapchat-owner Snap Inc. has agreed to partner with ShareChat to integrate its Camera Kit into its Moj app.
The sources also said that ShareChat is in talks with other investors including Google and Snap to raise over $200 million in its new financial round.
According to AppAnnie, via TechCrunch), Twitter has surpassed 75 million users in India in the first month of 2021.
Also Read: Twitter Usage and Revenue Statistics
Last month, the company announced that it has partnered with social app Dailyhunt to bring Moments to the Indian market.