YouTube has acquired Indian video ecommerce start-up Simsim in a deal thought to be worth $70 million in the platforms latest push into retail.
The Google-video streaming giant announced today that it had acquired the two-year-old ecommerce platform for an undisclosed sum.
According to TechCrunch, sources with knowledge of the matter believe the startup, which raised around $17 million prior to the acquisition, was valued at over $70 million.
Simsim is a platform designed to help bring India’s millions of local businesses online with the help of “micro influencers”.
Businesses use the app to connect with video creators who post reviews and information about their businesses, allowing shoppers to buy their goods directly through the app.
“Being a part of the YouTube and Google ecosystem furthers Simsim in its mission,” Simsim’s co-founders Kunal Suri and Saurabh Vashishtha said in a joint statement.
“We cannot think of a better ecosystem in which to build Simsim, in terms of technology, reach, creator networks and culture.
“Every day, people come to YouTube to compare products, watch reviews and find recommendations from their favorite creators… Simsim is helping small businesses in India transition to e-commerce by using the power of video and creators”.
Tech and retail giants like Amazon and Walmart have struggled to establish a foothold in the rapidly expanding Indian ecommerce market as legislation is weighted heavily in favour of the country’s independent retailer.
Google may have managed to establish a significant foothold in the market with this acquisition, where it has already committed to investing $10 billion over the next 2 years.