Bengaluru-based digital media video startup, Clip App has raised close to $1 million in a seed round led by India Quotient and Shunwei Capital, a China-based investment firm.

The company plans to utilize freshly infused funds to enhance it’s product features for the video only app. The startup which claims have an organic growth of over 100,000 users within three months, largely from tier-II and tier-III markets plans to focus on acquiring users over the next two to three years.

Commenting on the development, Anand Lunia, partner at India Quotient told ET, “Lot of social media companies have started and shut down in India, it’s not a space where companies see a high success ratio. Besides this, investors are also interested in seeing innovative social media companies come out of India for Indians, so there is potential in terms of funding for this space. However, since the space is competitive, staying relevant is a challenge.”

Lunia believes that this space remains competitive and challenging and soon Indian entrepreneurs will learn a way to build social networks specifically for non English speaking audience in India.

Founded in March 2017 by Nav Agarwal, Clip App is presently growing organically, as the company is focusing on enhancing the product and building upon its features before aggressively marketing Clip App.

According to the Agarwal, the app specifically caters to tier-II and III user's focuses on Hindi speaking users.

Nav Agarwal, Founder, Clip App said, “They spend over 20 minutes a day on the app. And a lot of videos that are currently on the app are the kind of videos one would find shared on WhatsApp or videos individuals take randomly, could be dance, drama, stunts.Basically, one time watch videos. These users technically represent 95% of India.”

Agarwal further said that they saw the future in video when the team noticed that over 80% of Facebook’s newsfeeds consisted of videos, Instagram made a shift to taking video more seriously and Snapchat as a video medium.
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