Google on Tuesday announced that YouTube will acquire the Indian video commerce platform Simsim. Analysts say that this can be an indication of a possible synergy between YouTube shots and Simsim in the future. However, it did not clarify what it would entail.
It said, “There will be no immediate changes to Simsim. The app will continue operating independently while we work on ways to showcase Simsim offers to YouTube viewers,”
Simsim is headquartered in Gurugram. according to reports Simsim is valued at around 70 million dollars and is only 2 years old
Simsim helps small businesses I want to transition to e-commerce by using the power of video and creators in India Simsim acts as a platform to connect local businesses, influencers, and customers.
Rohan Malhotra of Good Capital, an early backer of Simsim, says: “micro-influencers are more effective at building a targeted audience (growth), creating entertaining experiences (retention), building trust (higher value), and personalized messaging (conversion). Consumer social platforms (Fad to.”Facebook, YouTube, Instagram, etc.) cannot meaningfully monetize via advertising-financed models in India; this unlocks the opportunity for more deeply integrated transactional platforms. New internet users in India need an interactive seller-led experience to replicate the offline e-commerce experience this market is using.
Google-owned YouTube’s acquisition of Simsim is a big positive for social commerce’s future in India, which was said to follow a trajectory like China where social commerce accounts for 11 % of total eCommerce sales.
According to industry analysts, YouTube might try to replicate the Douyin-Taobao model in India, with its acquisition of the short-video platform. Douyin is known as TikTok globally.
For YouTube, the acquisition will enable the video streaming giant to help small businesses and retailers in India reach new customers in even more powerful ways, wrote Gautam Anand, VP of YouTube APAC, in a blog post.