The Indian Social Media Platform Sharechat has reached an agreement to buy Times MX Talatak owned by the Internet, a short video platform, in a $ 600 million agreement, a combination of cash and stock, in accordance with the source of development.

The source also added that the value of the agreement might change towards the close of the agreement.

Mohalla Tech has more than 2000 employees, and with acquisitions, 180 employees of MX Tahatak will join the company. MX will be replaced with a loss in about six months and the target for the close of the agreement is the end of the month, the source added.

This step is expected to strengthen Sharechat short video games through the platform, MOJ. With the acquisition, MOJ (160 million monthly active users (Maus)), and MX Tahatak (150 million Maus), together will have a combined active user base of more than 300 million. Local competitor Josh has more than 115 million maus.

This development was first reported by Mint in 2021. MoneyControl has been written to Sharechat and MX Talatak on the same thing. The story will be updated with their response.

This acquisition comes when the short video industry gets traction with instagram rolls lead packages. According to the Rejser report, while Facebook short and Instagram rolls continued to dominate in the top 50 cities, Indian colleagues such as Dailyhunt’s Josh, MOJ, and MX Talatak had a significant user base in Tier-2 and Tier-3 cities.

It also arrives when many short platforms video struggles through growth. Chingari, another short platform, recently played to Crypto. Another Mitron TV platform has put several employees.

The short video platform of houses planted has become popular after the Indian government forbade Tiktok in June 2020. While the MOJ was launched around the time of the ban, MX Jahatak was launched in July 2020 and Josh in September 2020. All of these companies have seen significant growth above. two years ago.

According to industry sources, the combined user base will provide MOJs that give them access to more users.

Sharechat Mohalla-Tech’s parent has raised a total of $ 913 million in 2021 behind the strong growth of the MOJ platform witnessed since the Tiktok ban in June 2020. In the previous round, it raised $ 145 million in July, and $ 502 million in April, was led by Tiger, Snapchat and Twitter.

So far the company has collected $ 1.177 billion in eight rounds of fundraising. Sharechat and MOJ have a 340 million user base.

According to sources, the company has an annual income of $ 35 million. “With the initiative of social and direct trade, the company hopes to achieve an annual creator’s revenue target of US $ 100 million at the end of 2023,” said the company in a previous statement.

Established in 2015 by three IIT Kanpur alumni-sachdeva, Farid Ahsan and Bhanu Singh, Sharechat is one of the early players in regional language content.

What’s in it for Sharechat?

Company executives, who do not want to be named, said, userbase, steps where we can make that progress and network effects that come faster with the acquisition of MX Tetatak.

But others show that in addition to consolidation of Userbase, there is not much can be obtained by Sharechat.

Industrial executives, in anonymous conditions, shows that advertising models in India are damaged and this industry struggles to monetise, even when the Instagram rolls have meta wins in short video rooms. In that case, the source said, it doesn’t make sense to buy other companies that are similar to what you do.