Google-owned Pay Firm said on Tuesday that YouTube has acquired social commerce startup Simsim. No companies have disclosed the terms of the deal, but two people familiar with the matter told TechCrunch that the Indian startup is worth over Rs 70 million. The chief executive of Simsim did not respond to a question on Monday evening’s (IST) acquisition.
The two-year-old Simsim raised about 17 17 million prior to today’s announcement and was valued at 50 50.1 million in the 2020 Series B financial round.
The Gurgaon-headquartered start-up helps small businesses transition to e-commerce using the power of video and creators. The startup’s application serves as a platform to connect local businesses, influencers and customers.
According to Rohan Malhotra of Good Capital, Simsim is an early supporter: “Micro-influencers are more effective at creating a target audience (growth), creating retention, creating trust (value) and personalizing communication. (Conversion) Consumer social platforms (Facebook, YouTube, Instagram, etc.) cannot be monetized meaningfully through advertising-providing models in India; This unlocks the opportunity for a more integrated transactional platform. New internet users in India need interactive seller-led experience to use this market to mimic the fly e-commerce experience. “
He, like everyone else, declined to comment on the size of the deal.
“We started Simsim with a mission to make shop online shopping easier for users across India, able to showcase and sell their products using the power of content by trusted influencers from small sellers and brands. As part of the YouTube and Google ecosystem, Simsim is moving towards its goal, ”said Simsim’s Amar Bageria, Krunal Suri and Saurabh Vashisht in a joint statement. Bagaria and Vashishta had previously worked together on Paytm.
“We can’t think of a better ecosystem of making Simsim in terms of technology, reach, creative network and culture. We can’t wait to be a part of YouTube and excited to make Simsim one of the most acclaimed tech companies in the world.”
For YouTube, the acquisition will help video streaming giant small businesses and retailers reach new customers in a more powerful way, said YouTube APAC’s VP. Gautam Anand wrote in a blog post.
The video streaming service, which reaches 50 users0 million monthly active users in India, does not plan to make any immediate changes to Simsim and the startup’s application will continue to operate independently “while we work on ways to show Simsim offers fur to YouTube viewers.” He added.
Tuesday’s announcement is Google’s latest push in India, where it has pledged to invest 10 10 billion over the next few years. The internet giant has also supported Indian startups Glance and DeliHunt, both of which operate short-video apps.
“With the success of more than 2500 YouTube creators and YouTube shorts with over one million subscribers, we launched first in India, we are committed to bringing the best of YouTube to India and making it easier to grow the creator community. Pay generation, ”he added.