Youtube, American online video sharing and social media platform acquired a two year old Indian e-commerce startup called Simsim.
“We started simsim with the mission of helping users across India shop online with ease, enabled through small sellers and brands showcasing and selling their products using the power of content by trusted influencers,” founders Amit Bagaria, Kunal Suri and Saurabh Vashishtha said in a joint statement.
“Being a part of the YouTube and Google ecosystem furthers Simsim in its mission. We cannot think of a better ecosystem in which to build Simsim, in terms of technology, reach, creator networks and culture. We can’t wait to be part of YouTube and are excited to build Simsim within the most admired tech company in the world.”
YoTube said the key reason for this acquisition was to help small businesses to reach a wider market.
Simsim helps small businesses transition online through informative videos by creators and influencers. It provides a platform which helps connect local small businesses and customers.
Influencers post videos which give information and reviews on the products from these businesses in multiple languages.
During the pandemic year Simsim raised funds worth $16 million within seven months of its incorporation. It has amassed over one million customers already and everyday sales count goes beyond a thousand.
Majority of their users are people belonging to small cities, towns and villages. The company’s valuation stood over $50 million in 2020.
After the acquisition announcement, the founders of Simsim made it clear that as of now the application will continue to operate independently and work on methods and ways to display offers of Simsim to viewers of YouTube.
GOOGLE’S E-COMMERCE DEBUT
Google, the parent company of YouTube has plans of building a global e-commerce chain and for this it has been making strategic partnerships and investments. One such major deal being its partnership with Shopify.
YouTube has been actively trying to bring in several brick and mortar stores and other offline retailers online. The tech giant has even identified several trusted sellers. Several analysts have even said that Google’s Gmail subscriber base which is over 18 million will aid their Google Shopping adventure.
In the first few months of the pandemic year Google opened up its shopping to trusted merchants in the United States to list their products for free with them and has plans to take free listing all across the world.
“When it comes to shopping, what we’re really trying to build out and support a free and open commerce ecosystem, this is really important for consumers to have a choice, and especially for small and mid-sized businesses to be able to participate in the rise of digital commerce as well,” Bill Ready, president of commerce and payments for Google said.
YouTube’s acquisition of Simsim in India seems to be one such strategic decision that will forge its path into the Indian e-commerce space.