ShareChat may be the avenue that Twitter needs to help its business grow.
Twitter is one of the tech companies that has been turning its attention to India. The majority of the population here log onto the Internet. Unlike Europe, China and Japan, India is still growing digitally.
The pandemic also hastens the nation’s transition to a digital economy. Recognizing the country’s potential, Twitter expressed its interest in buying ShareChat, an Indian social media startup.
India, after all, is the second-largest Internet market.
What is ShareChat?
ShareChat is regarded as the rival of TikTok. Twitter is already an investor of this Indian-based social media.
The Indian social network serves non-English languages. It aggregated millions of new users in 2020 resulting in the social network raising $40 million.
And one of those investors is Twitter.
Its capital will allow the app to support creators on its platform. In early July, it has launched Moj, a short-video app.
It happened days after India banned Tiktok. At that time, TikTok had 200 million users in the said country.
While TikTok was banned in India, many startups launched short-video apps. Among the many short-form video apps, Moj dominated the scene.
The users here spend half an hour on the platform every day. The app is available in 15 Indian languages and it has grown exponentially.
Its growth is a rare success.
The country didn’t expect an Indian-based social media platform to flourish this way. It allowed the country to hope for another success in this ecosystem. It also motivated investors to take bets on it.
Deal Between Twitter and ShareChat
With its growth, it’s not surprising that Twitter and other US tech companies would be interested.
The company offered $1.1 billion to buy ShareChat. However, the talks stopped and no deal was reached.
Twitter wanted to make Moj, ShareChat’s short-form video app, a rival to TikTok, a Chinese app. But both companies didn’t elaborate on it.
Now that the buyout is over, ShareChat is in talks with other investors, including Google and Snap.
It used to be the dominant player in the social media game. But it failed to keep up with its competitors.
Its user base in the US is declining. Twitter’s stock also plunged. Investors are concerned that this once popular social media has run out of ideas to grow.
For many years now, Twitter has struggled to attract people to sign up and use it. Many people think and feel that it’s confusing and it’s a venue for harassment. They see no reason to use it.
It introduced new tools to combat online harassment. But it can still be improved.
In the first quarter of 2020, it saw a usage spike. People used it to stay updated with the news about the coronavirus. But it wasn’t enough to compensate for the ad decline as a result of the pandemic.
In the past year, the social network is facing pressure from its investors to boost its growth.