Social media company ShareChat has acquired video production startup HPF films for an undisclosed amount. Incorporated in 2018, HPF is officially known as Heri Pheri Fillms and is based out of Bengaluru.
Notably, the latest development comes barely three weeks after ShareChat had acquired hyper local information platform Circle Internet. Two back-to-back acquisitions clearly suggest that ShareChat is aggressively focusing on inorganic strategy to consolidate its position in the market.
ShareChat has said that 25-member team from HPF Films has already joined the company. It further added that the team will be contributing towards content operations, digital marketing, creative solutions and creator management for both ShareChat and Moj.
Since no financial details have been shared, there is a possibility that this might be an acquihire or stress sale. The possibility of stock and cash deal also cannot be ruled out either, in which case both companies will have to swap their shares.
The official press release clearly hints that the company will leverage its latest acquisition for strengthening its recently released video sharing app Moj. The company released the MOJ app quickly after Indian government banned the TikTok app and is now looking to fill the market void in the aftermath of the ban on popular Chinese app.
ShareChat’s Moj app has apparently managed to gain a good market share, with approximately 50 Mn or 5 crore downloads on Google play store. However, Moj still has quite a bit of catching up to do with the Snack Video app, which is actually a Chinese app that is giving tough competition to TikTok’s desi clones.
Launched barely few months ago, Snack Video now boasts more than 100 Mn downloads on Google Play store. It now clearly seems to be in the pole position to replace TikTok’s dominant market position.
Commenting on the acquisition, Manohar Charan, VP – Corporate Development and Strategic Finance, ShareChat, said, “As ShareChat continues on the aggressive growth journey, it is important for us to invest and build capabilities required to sustain growth on a large base. This acquisition will help us build a framework for our creators and nurture them to evolve as influencers on the platform. Moreover, HPF’s strength on creative side will also help us in creating innovative, high performing advertising solutions for the brands looking at engaging with our audiences”
More about HPF Films
Founded in 2018, the Bengaluru based company specializes in making digital content for emerging platforms. It has so far produced 3500+ titles across different formats including web-series, digital ads, short films, and documentaries for 20+ brands. Some of its high profile clients include Meesho, OkCredit, Ixigo and Ola,