Vernacular short video app ShareChat on Thursday said it has raised $40 million as part of its pre-series E round, and will utilise the funds to drive growth for Moj, it’s another short video offering which was launched in the aftermath of the TikTok ban in India. With the new round, ShareChat’s total funding now stands at $264 million. Entrackr first reported this.
Existing investors such as Lightspeed India and SAIF Partners led the round, which was also joined by Pawan Munjal, CEO of Hero Motocorp, and Ajay Shridhar Shriram, chairman of DCM Shriram who contributed an undisclosed amount of money in the round from their family offices. Twitter had previously invested in ShareChat.
Moj was among the several Indian short video apps to burst into the scene after TikTok was banned in India over national security issues, leaving a massive void in the short video industry in the country. A large part of this investment, ShareChat said, will be used for doubling down on investments made towards Moj’s product development, growing its creator ecosystem and establishing partnerships with music labels, ShareChat said in a statement. These are all important facets for the success of any short video app, and something that TikTok did really well.
Earlier this week, ShareChat announced that it was adding $14 million to its employee stock ownership plan (ESOP), taking the total to $35 million.