"EDITION 131"

Published: 8/10/2020

Good morning, it's Monday. Anmol here & I had a really enjoyable and lax weekend- a lot of reading and some Netflix. Coming to the news of the day, there's been a couple of rumors on new mega-deals in Indian companies.

  • https://bit.ly/3ku9p1q: ShareChat could be India's next Unicorn
  • ➡️ I don't think I've heard the words "Social Media" and "Microsoft" together before last month but seems like they might be the newest consumer social investor on the block. With the Indian TikTok ban, homegrown consumer social company ShareChat has seen an upsurge of users (and have also released Moj- a short video app).

    ➡️ The company has been in the news over the last couple of weeks about a potential new fundraise of a couple hundred million. And it seems like Microsoft might be one of the investors and might put $100M into ShareChat's next funding round.

    ➡️ Microsoft wouldn't be the first American tech co to invest in ShareChat- Twitter previously led the company's $100M Series D round last year. I'm a little intrigued about this potential Microsoft investent because of the recent Microsoft x TikTok news as well.

    ➡️ Microsoft is also in talks with ByteDance (TikTok's parent company) to acquire the global operations of TikTok, which might include the India operations. If that is the case, I'm not sure how much sense the ShareChat investment makes sense- TikTok & ShareChat's Moj would be competing directly (and if Microsoft also owns the rights to Helo, it would be competing with ShareChat head on).

    ➡️ While the Microsoft's TikTok deal is in a very early stage (Twitter is also in talks with TikTok), it will be interesting how the whole scenario plays out (of if the deals fall apart).

    2. https://bit.ly/3krePdn: Google sets sights on stake in Policybazaar

    ➡️ After investing in Reliance Jio, Google is setting it's sights on the online insurance platform PolicyBazaar in it's plan to invest $10B in India over the next 5 - 7 years (of which they've already invested $4.5B).

    ➡️ The American tech giant is looking to acquire 10% of the company and could invest $150M. Softbank currently holds a 15% stake in the company and might partially exit the company.

    ➡️ I previously talked about PolicyBazaar's plans to go public next year, and while the company plans to raise $250M in funding before they go public and this would probably go a long way in helping the company prep for their IPO.

    ➡️The only thing that doesn't make complete sense to me is around how Google can help PolicyBazaar (other than capital). With Google's other direct investments in the country, their partnerships were much more defined (Dunzo could eventually be displayed on Google Maps, Google working with Reliance to create a new OS on top of Android) or maybe I'm just missing something?

    Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/jaivardhan88/status/1292489212000784385

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