YouTube set to acquire video e-com app simsim
Video streaming major YouTube has forayed into India’s booming social commerce sector with the signing of a definitive agreement to acquire video shopping app simsim, the company said on Tuesday. According to blog post on its site, Youtube’s goal is to help small businesses and retailers reach new customers in even more powerful ways. There will be no immediate change to the simsim app, as it continues to operate independently, while YouTube will showcase simsim offers to its viewers.
“As more and more shopping happens online, video has an important role in helping viewers discover new products and find expert advice they trust. Every day, people come to YouTube to compare products, watch reviews and find recommendations from their favorite creators. Today, we are taking another step to help viewers discover and buy products from local businesses,” said Gautam Anand, vice president, YouTube, Asia-Pacific region.
Rational of the acquisition
Youtube: Larger access of creators, especially in simsim’s core markets of Tier-2 and -3 cities in India
simsim: Targeting a bigger base of potential buyers through YouTube's network
"By bringing simsim and YouTube together, our goal is to help small businesses and retailers in India reach new customers in more powerful ways...the app will continue operating independently while we work on ways to showcase simsim offers to YouTube viewers," Gautam Anand, VP, YouTube APAC, wrote in the blog announcing the acquisition.
The acquisition by Google owned YouTube signals an important change in the startup eco-system in India. A signal that Google was beginning to look beyond Reliance Jio Infocomm Limited, where the company last year invested $4.5 billion of the $10 billion it had earmarked to help increase tech adoption in its key overseas markets.
Google's next target would be an interesting one given the traction that Fintech along with heathtech, deeptech and AI companies have boomed in India.
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