Exclusive: Chai Shots to raise $5 Mn from General Catalyst and InfoEdge

Hyderabad-based microdrama over the top (OTT) platform Chai Shots is raising $5 million in its maiden funding round, two sources aware of the development told Entrackr. 

“General Catalyst along with Info Edge are in advanced stages of closing a new funding round in Chai Shots,” said a source requesting anonymity. “A few angel investors may also participate.”

Chai Shots is a short-video streaming platform with episodes under two minutes, available in several Indian languages. The platform is created by the team behind Chai Bisket, a popular digital media and storytelling company. 

The Chai Bisket team has built a content ecosystem over nine years, covering reels, podcasts, films, and regional stories through platforms like First Show, Mutiny Talent, Studio Panchatantra, and Chai Shots.

The Chai Shots platform is still being developed and is expected to launch soon.

“The official launch and funding announcement might take a few weeks,” said another source. The person also mentioned that interest in this space is growing, and a few more startups are likely to raise funds soon.

Earlier this week, Flick TV, a similar startup, raised $2.3 million in seed funding led by Stellaris Venture Partners, with participation from Gemba Capital and Titan Capital. Chai Shots will also face competition from Kuku FM’s Kuku TV, ShareChat’s QuickTV, Reel Saga and Reelies.

Queries sent to Chai Shots, General Catalyst and Info Edge on Thursday did not elicit response until publication of the story. 

In June last year, General Catalyst merged with India-focused venture capital firm Venture Highway to boost early-stage investments in the country. Since then, General Catalyst has invested in the maiden funding rounds of Primus Senior Living, Mukesh Bansal’s Nurix AI, and PB Healthcare.