Twitter Considered Buying ShareChat to Rival TikTok | Moj Expansion

Twitter’s Acquisition Discussions with ShareChat

Recent discussions took place between Twitter and Indian social media company ShareChat regarding a potential acquisition. These talks centered on Twitter’s strategy to increase its influence within the Indian market, the world’s second-largest internet user base, and to develop a global competitor to TikTok, as reported by three sources with knowledge of the situation.

Offer Details and Funding

Twitter, already holding an investment stake in the Bangalore-based ShareChat, reportedly proposed a $1.1 billion acquisition offer. Furthermore, a commitment of an additional $900 million in investment was included in the proposal, according to two sources familiar with the negotiations. ShareChat has previously secured approximately $260 million in funding from investors such as Lightspeed Partners India, Elevation Capital, and India Quotient.

Negotiations Breakdown

Despite initial discussions, a definitive agreement was not reached between the two companies. Two sources, who requested anonymity due to the confidential nature of the matter, confirmed that the talks ultimately stalled. The specific reasons leading to the termination of negotiations remain undisclosed.

Strategic Intentions: Moj and International Expansion

It was indicated by two sources that Twitter was particularly interested in leveraging Moj, ShareChat’s short-form video application. The intention was to expand Moj’s reach into international markets, positioning it as a direct competitor to the popular Chinese app, TikTok.

Company Responses

Twitter declined to provide any official comment regarding the reported discussions. ShareChat also did not respond to inquiries for a statement.

The Rise of Short-Form Video in India

Following India’s ban on TikTok last year, numerous local startups and established international companies began focusing on the short-form video market.

Moj’s Growth and Partnerships

Moj has quickly become a significant player in this space, currently boasting a user base exceeding 80 million. Recently, Snap integrated its Camera Kit into Moj, marking Snap’s first partnership of its kind within India.

Resumption of Funding Talks

With the acquisition offer from Twitter no longer under consideration, ShareChat has restarted discussions with other potential investors to secure new funding. Google and Snap are among the companies currently being engaged in these talks, sources indicate.

Previous Funding Rounds

Reports from January indicated that ShareChat was already in discussions with Google, Snap, and existing investors, including Twitter, to raise over $200 million. The possibility of an acquisition by Twitter temporarily paused these investment negotiations.

ShareChat’s User Base and Market Reach

ShareChat claims to have over 160 million users, offering its social network application in 15 different Indian languages. The platform has a particularly strong presence in smaller Indian cities and towns – a demographic often referred to as “India 2” by venture capitalist Sajith Pai of Blume Ventures. Reaching this segment of the population is a challenge for many Indian startups.

User Engagement on ShareChat

In a previous interview with TechCrunch, Ankush Sachdeva, co-founder and CEO of ShareChat, stated that the platform was experiencing “exponential” growth. He also noted that users were spending an average of more than 30 minutes per day on the service.

Twitter’s Challenges in India

Twitter has faced difficulties in expanding its user base beyond major Indian cities and towns. Data from App Annie, shared by an industry executive with TechCrunch, shows that Twitter had approximately 75 million users in India as of January. To address this, Twitter partnered with Dailyhunt to bring Moments – curated tweets focused on news and local events – to the Google-backed Indian application.

Twitter’s Broader Growth Strategy

Over the past year, Twitter has been actively diversifying its product offerings, responding to pressure from activist investors to accelerate its overall growth.