It was recently announced that YouTube has made a new acquisition which will increase its
capabilities in the e-commerce field.
The video streaming company acquired the social commerce
firm Simsim. While the details of the
deal were not disclosed by either party, two officials involved in the matter
advanced that the startup was valued at more than $70 million.
Founded two years ago, the company had raised approximately $17
million before the announcement and in its 2020 Series B financing round, it
was valued at $50.1 million. Based in India, it helps small businesses in the
country to transition to e-commerce by using the power of video and
creators. It acts as a platform to connect local businesses, influencers and
customers.
Why is Simsim successful? Rohan Malhotra of Good Capital
advanced that “micro-influencers are more effective at building a targeted
audience (growth), creating entertaining experiences (retention), building
trust (higher value) and personalising messaging (conversion).”
Thanks to this acquisition, YouTube will be able to help
small businesses and retailers in India reach new customers in even more
powerful ways. The video streaming service has more than 450 monthly million
users in the country. It said that it does not plan to make any immediate
startup to Simsim
and that it will keep operating independently.
Photo Credit: stux from Pixabay
YouTube ventures into the Indian e-commerce market
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