YouTube announced yesterday that it has signed an agreement to acquire a local video-sharing app named Simsim, thus enabling Indian retailers and consumers to discover and purchase products through video, according to Economic Times.
Why?
Google predicts that online videos will continue to grow as the primary source of information, entertainment, and connections in India.
**Background of the App - **
Simsim is a company based in New Delhi that helps small businesses transition to e-commerce with videos. The reviews are posted in Hindi, Tamil, and Bangla, and they cover a wide variety of products from local businesses. The apps allows users to directly purchase those products.
What will change now?
Simsim will remain unchanged, and Google intends to find ways to showcase Simsim’s offers to Youtube viewers while the company works on “ways to showcase Simsim offers to Youtube viewers”.
The acquisition is part of Google’s ongoing investment in India, which includes the India Digitization Fund.
**Past Funding- **
According to TechCrunch, Simsim has raised around $17 million so far, and its 2020 Series B funding was valued at $50.1 million.
This is not new for Youtube.
The platform is already establishing itself as a source of social (and live) commerce. A shoppable ad feature was launched in 2019 and Shopify integration was tested last year. Creators were also encouraged to tag objects in their videos. There was a recent SMB summit hosted by the company in the US, featuring “live shopping experiences.”.
What other competitors are doing by the way?
Other companies are also catching on to this trend in order to avoid missing out on social commerce, as Amazon is doubling its efforts and Flipkart is experimenting with its Flipkart Videos by rewarding its users with Super Coins and other exciting prizes. Meesho has managed to secure funding not just from Facebook, but also from Softbank. Instagram is still experimenting with its short video feature.
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Originally posted on Cash Nut. Hive blog powered by ENGRAVE.