NEW DELHI: The parent company of India’s ShareChat has acquired local rival MX’s short-video platform in a roughly $700 million deal, two sources told Reuters, as competition heats up in the sector where foreign investors have placed major bets.

The two companies confirmed the deal in a statement but did not disclose financials. Reuters was first to report earlier on Thursday that the two companies had reached a deal.

Indian short-video apps have become popular since New Delhi banned ByteDance’s TikTok and some other Chinese apps in 2020 following an India-China border clash.

After TikTok was banned, ShareChat’s parent entity, Mohalla Tech, launched a similar short-video sharing app named Moj, which counts Meta Platforms Inc’s Instagram Reels as its key rival.

In a cash-and-stock deal, ShareChat’s parent entity acquired MX’s short-video platform called TakaTak, the sources familiar with the transaction said. The deal is valued at around $700 million, said one of the sources.