Good morning, it's Tuesday and I hope y'all had a good weekend. Today I learnt how to make Gulab Jamun from a Midas List VC (2020 am I right?). Coming to something more normal, let's talk about the news today- Google is enabling lending on top of GooglePay & ShareChat has apparently raised more money (though the founder says it's not true)
➡️ Seems like Google is really beefing up their Spot platform, and have now partnered with digital lending co ZestMoney to power loans directly on GooglePay. To me it seems like the UPI apps seem to be vying to be the single place users go to do things related to finance, so having micro-loans on GooglePay makes sense.
➡️ Google also plans to onboard other loan providers so ZestMoney's first mover advantage might not hold too much weight. Users can register on Google Pay, complete KYC & check their eligibility for a credit line.
➡️ I have somewhat felt that by skipping the credit card revolution, a majority of India has not been able to access credit as a payment means for day-to-day purchases. I like the idea of these buy now, pay later services but it's not super easy to scale and access users.
➡️ But using GooglePay as a distribution layer to gain access to users might make sense (GooglePay has over 75M monthly transacting users), and ZestMoney has already received several thousands of new applications.
➡️ Users who are eligible for a credit line on ZestMoney would be able to use it across over 3000 merchants online & offline. But I think the holy grail of credit over GooglePay might look something like using some application to get a line of credit, and then use GooglePay to purchase any item from any merchant using that line of credit.
2. https://bit.ly/3hBpEY2: ShareChat raises $40M from existing investors
➡️ Indian social media platform ShareChat has allegedly raised $35 - $40M in an internal financing round from existing investors including Lightspeed India.
➡️ The investment comes at a very opportune time for the homegrown social platform which has seen an increase in usage on it's core app & newly launched short-video app (Moj) with the recent ban on Chinese apps in the country.
➡️ There have also been previous reports that ShareChat is in talks to raise up to $200M in a new financing round, and potentially would raise more than just the $40M to step on the growth pedal and take advantage of the whitespace created by the absence of TikTok, Helo & the others.
➡️ The space has seen a frenzy of both new platforms popping up as well as investment activity but ShareChat has remained one of the first & biggest social platforms for Indians which users can access in several Indian languages.
➡️ It's also important to note that both Farid Ahsan (Cofounder) & a ShareChat spokesperson have denied the reports of investment. I think we will get a lot more clarity on the situation in a couple of weeks about if & how much ShareChat has raised and how it plans to use the capital.
Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/ankitkr0/status/1287700643742793728
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