ShareChat’s US$100 million fundraise led by Chinese Shunwei Capital Partners and mobile phone maker Xiaomi had to be carefully structured to avoid the possibility of control coming into the hands of one set of investors.
The fundraise by the Indian regional language chat application also posed the additional challenges of dealing with multiple investors from various jurisdictions with different sets of lawyers and the burden of the previous round’s positions, said Manish Gupta, a partner at Link Legal India Law Services, the advisers to the company and its founders.
Morningside, DST, Lightspeed, SAIF Partners, India Quotient and Venture Highway also were part of the investment.
Owned by Bengaluru-based Mohalla Tech, ShareChat allows users to share videos, jokes, audio songs, and images in Hindi, Malayalam, Marathi and Telugu. The funding will be used to grow the brand and develop new technology.
A team from the Singapore office of Gunderson Dettmer advised Shunwei, Xiaomi and Lightspeed with support from ARA Law. Morningside, SAIF, VH, IQ and DST were represented by their in-house legal teams.
Link Legal’s team included partner Gupta, principal associate Vinu Peter and associate Rashi Singh.