YouTube Acquires Indian Video Commerce Startup simsim

YouTube, the video streaming platform owned by US-based search giant Google, has recently announced the acquisition of the Indian video commerce platform simsim on Tuesday, July 20. Although the financial details of the deal remain undisclosed.

About simsim

simsim, established in June 2019 by founders Amit Bagaria, Kunal Suri, and Saurabh Vashishtha, functions as an e-commerce platform facilitating small businesses’ transition into the digital economy through video content creation. The platform serves as a nexus connecting local businesses, influencers, and customers.

The co-founders of simsim expressed their mission as enabling seamless online shopping experiences for users across India. They achieve this by empowering small sellers and brands to showcase and sell their products through content created by trusted influencers. In a joint statement, they expressed their enthusiasm about becoming a part of the YouTube and Google ecosystem, emphasizing how it aligns with simsim’s mission.

Post-Acquisition Plans

Despite the acquisition, simsim will retain its autonomy as a separate entity. However, YouTube intends to explore avenues to integrate simsim offers into its platform to benefit its viewers.

Gautam Anand, Vice President of YouTube Asia Pacific, emphasized the longstanding role of YouTube in empowering small businesses to expand their online presence. By merging simsim with YouTube, the goal is to provide Indian small businesses and retailers with even more robust means to reach new customers.

Funding and Market Trends

simsim has garnered approximately $15.5 million in funding from notable investors such as Accel, Xiaomi’s Shunwei Capital, and Good Capital.

The social commerce segment in India is witnessing significant activity, particularly following Meesho’s entry into the unicorn club in April 2021. A unicorn, in startup terminology, refers to a privately held company valued at $1 billion or more.

In recent developments, DealShare secured a $144 million funding round led by Tiger Global, co-led by WestBridge Capital, Alpha Wave Incubation, and Z3Partners. Similarly, CityMall announced a $22 million funding round in June, with General Catalyst and Jungle Ventures as lead investors, along with contributions from existing investors Accel, Elevation Capital, and WaterBridge Ventures.

Meesho, a prominent player in the space, has raised a total of $515 million from investors like SoftBank and Facebook, with its latest funding round valuing the company at $2 billion.