How $1.3 Million investment in Chingari creates a hope for rest of the short video content platforms
Updated: Sep 2, 2020
From the last 1 to 2 years of timeline, user involvement in short video content platform has become a tremendous success with an average spending of 50 minutes per day, which is dominantly higher than Facebook and Snap chat users who expend 30 or 40 minutes per day. These statistics clearly resonating that there is huge space for advertising and other medium of marketing in short video content platforms.
With the recent Ban of Byte Dance’s TikTok in India, demand for short video entertainment platforms has increased, leading to continuous investments in those platforms. Chingari, who recently won the Indian Government's Aatmanirbhar App Innovation Challenge with a prize money of ₹20 lakh, announced that they had received seed funding of $1.3 million from AngelList, LogX ventures, iSeed, Village Global and others. According to the company, it has 25 million downloads right now and an average of 3 million active users and is paying 30% commission on advertising to its content creators right now.
Previously, Mitron received a ₹2 crore by being an Indian short video content platform, Share chat also was in continuous talks with Microsoft to raise their funds, and InMobi’s Roposo has been looking to raise their Capital from so long. Even though these companies are constantly struggling to raise their funds, the investors are clearly looking at their user retention metrics before they are backing them up.