News aggregator app Inshorts, which also runs video-focused hyperlocal social network Public, is in talks to mop up fresh funds from A91 Partners and existing investors including SIG Global, said three people aware of the details of the transaction.
“Inshorts has been in late-stage talks with A91, SIG and other existing investors to raise up to $80 million,” said one of the people requesting anonymity as talks are private. “Addition would also participate with a sizable contribution.”
The fresh round will come within 6-7 months of its previous round. In September 2020, the Noida-based firm had scooped up a $35 million funding round led by Lee Fixel’s new venture capital firm Addition.
According to the sources, the deal is likely to be materialised in a few weeks from now.
“Inshorts has positioned its new app Public as an anchor in its potential fundraise,” said the second person who also wished not to be named. Public has amassed around 84 million downloads since its inception in January 2020, data sourced from Sensor Tower shows.
Public, which is accessible in Hindi and over a dozen vernacular languages, gives information on traffic, electricity, jobs and weather around your vicinity. It appears that an uptick in the use of Public in tier I and II cities has driven the confidence of investors in Inshorts.
“Inshorts will be valued at over $350 million in the fresh financing round,” added the above-quoted person. “The round will also have a secondary component in which early backers of the company would dilute their holdings.” The size of the secondary deal couldn’t be ascertained.
Entrackr’s queries sent to A91 Partners and SIG Global didn’t elicit any immediate response whereas Inshorts has declined to offer comment on the story. We will update the story in case they do.
It’s worth noting that Tiger Global, which is an existing investor in the company, won’t participate in the new round. We have confirmed this independently.
Inshorts competes with Google-backed Dailyhunt in the news aggregator app space. Unlike the Bengaluru-based unicorn that entered the short video entertainment space with Josh, Inshorts has been exploring opportunities in location-based social media play. While the company has been profitable for the last two fiscals, it has been left behind by its arch-rival Dailyhunt in terms of valuation.