Chinese investment firm Shunwei Capital and India Quotient have now invested in Bangalore-based digital media startup Clip App. The company plans to use raised capital to enhance product features video only app, said in a press statement.
Founded in March 2017 by Nav Agarwal, Clip App wants to be an alternate of social media platforms alike of Facebook, Instagram and Snapchat for non-English users. Within 3 months of its launch, the app claims to have witnessed 100K users. The app specifically caters to tier-II and III users, who would not relate to the English video content seen on Facebook, Instagram or Snapchat, and focuses on Hindi speaking users. Besides Hindi, it’s also available in Gujarati and Marathi.
“They spend over 20 minutes a day on the app. And a lot of videos that are currently on the app are the kind of videos one would find shared on WhatsApp or videos individuals take randomly, could be dance, drama, stunts.Basically, one time watch videos. These users technically represent 95% of India,” Nav Agarwal, Founder of Clip App said.
Agarwal observed that over 80% of Facebook’s newsfeeds consisted of videos while Snapchat and Instagram are also moving towards video. But the large numbers of the Non-English audience don’t understand such content. He saw the huge opportunity in building such platform and targeting a vernacular audience.
Validating the business idea and appraising to Agarwal, Anand Lunia of India Quotient said, “Lot of social media companies have started and shut down in India, it’s not a space where companies see a high success ratio. Besides this, investors are also interested in seeing innovative social media companies come out of India for Indians, so there is potential in terms of funding for this space.”
The company is focusing on enhancing the product and building upon its features before going aggressively for marketing of Clip App. Also, the startup will focus on acquiring users over the next two to three years and will only then look at forms of monetisation.