Clip, a seven-month old video sharing startup, has announced that it has raised an undisclosed amount of funding in a new round led by Matrix Partners.
The company also witnessed participation from its existing investor Shunwei Capital and India Quotient. While the company has not revealed the raised amount, a person aware of the matter said that Clip raised around ₹38.4 crore ($6 million).
The newly infused capital will now be used by the Bangalore-based startup to further improve its technology platform and to hire people to its team.
Tarun Davda, managing director of Matrix Partners India, said in a statement:
Video consumption post (Reliance) Jio has grown sharply, especially among the non-English speaking audience. This section of internet users is growing the fastest and has thus far been starved of relevant content. Clip plays at the cusp of these macro trends and allows users to create, share and consume bite-sized video content that they can relate to.
Nav Agrawal, co-founder of the company, said:
In India there are more than 200 million consumers on the internet who are non-English speakers. Clip’s main target are these vernacular users. But we are targeting the market not only with a social-sharing feature, but also using a video-creation angle. Unlike other vernacular platforms, we are providing tools to create and edit videos within the app itself.
Founded in March 2017 by Nav Agarwal, the Clip App allows users to create, edit and share short 60-second video clips on the platform. Users can create selfie videos and watch free Indian videos.
Currently, the application is available in Hindi, Gujarati, Marathi, Bengali, Tamil, Telugu, Kannada, Urdu, Malayalam, Punjabi and English.
Earlier, the Bengaluru-based digital media sharing startup had raised around $1 million in Seed funding from India Quotient and Chinese investment firm Shunwei Capital in July this year.
According to a report by Nielsen, smartphone penetration is highest among millennials aged 18-24, 98% of whom own smartphones. Millennials aged 25-34 are right on their heels, with a 97% ownership rate, followed by Gen Xers aged 35-44 at 96%.