In a cash-and-stock deal, the acquisition of MX TakaTak by Sharechat intends to enhance the use of artificial intelligence tools and expand the userbase by amalgamating the active userbase of both the apps.
MX TakaTak has been reportedly acquired by the parent company of Sharechat in a cash-and-stock deal of an estimate of 600-700 Mn USD. Two sources have confirmed the deal to Reuters. The publisher was the first to report the agreement, and one of the sources cited that the deal between Sharechat and MX TakaTak may officially be announced within a few days. Sharechat's investors and MX TakaTak declined to comment on the matter.
The acquisition intends to enhance the use of artificial intelligence tools and expand the userbase by amalgamating the active userbase of both apps.
The short-video ecosystem in India went through a major transformation after the rise and fall of TikTok. In 2020, the Government Of India posed an interim ban on 59 Chinese apps including TikTok, amongst the platforms.
This resulted in the downfall of the short-video app that had penetrated India and its masses, and the lion's share was up for taking. Since then several new apps have emerged and foreign investors continue to have peaked interest in investing in this space of the Indian market.
Sharechat and Moj have been two key players in the Indian short-video ecosystem, ShareChat grew to 160+ Mn monthly active users within five years and Moj to 120+ Mn monthly active users within the span of a year. These platforms generate an estimate of 92+ Bn and 90+ Bn monthly video views, respectively. With the acquisition of MX TakaTak and a dive into an expanded userbase, Sharechat may be on its way to getting the biggest slice of the pie in the Indian terrain.