ShareChat, a regional language video and picture sharing app, is in initial talks with Tencent Holdings Ltd. Other investors to raise as much as $200 million, according to two people familiar with the matter.
The Bengaluru-based social media startup, run by Mohalla Tech Pvt. Ltd. It has been struggling to grow over the past few months after Chinese media giant ByteDance launched ShareChat clone Helo and short video app TikTok in India last year.
If ShareChat is successful in raising the funds, this will give the company the required firepower to take on ByteDance, the world’s most valuable startup.
ShareChat is seeking a valuation of $600-700 million in the latest round of funding. The company was valued at around $460 million when it last raised money in September.
“(ShareChat) is looking for strategic investors with social media expertise,” said the same person cited above.