Sharechat acquires MX TakaTak
MX TakaTak appears to have been acquired by Sharechat's parent company in a cash-and-stock deal estimated at 600-700 Mn USD.
Two sources have confirmed the deal to Reuters last week.
Reuters was the first to report the deal, with one of the sources citing that the deal between Sharechat and MX TakaTak would actually be announced in a few days.
In any case, Sharechat and MX TakaTak's investors did not comment on the matter.
The acquisition of MX TakaTak by Sharechat improves the use of artificial intelligence tools and expands the user base by merging the active user base of both apps.
MX TakaTak has undergone a major transformation following the rise and fall of TikTok in India.
In 2020, the Indian government has placed an interim ban on 59 Chinese apps, including TikTok, among the platforms.
This resulted in the demise of the short video app and since then several new apps have appeared and we are still seeing a growth in investments in India.
ShareChat grew to 160+ Mn monthly active users within five years and Moj to 120+ Mn monthly active users within the span of one year.
These platforms are estimated to generate 92+ billion and 90+ billion monthly video views, respectively.
With the acquisition of MX TakaTak and a dip in a vast user base, Sharechat may be on its way to getting the biggest slice of the pie in Indian territory.