Chinese tech behemoth ByteDance, TikTok’s parent company, is in taking with Reliance Industries Limited for investing in TikTok’s Indian operation. This move could save TikTok from its current situation in India. As per the report by the Techcrunch, the companies started early discussions in late July. Although they have not arrived at a deal as of now.
TikTok is banned by Indian government from June 29th. TikTok current also facing difficultly in USA too. India is the largetest market for TikTok overseas. At time of the ban it has almost 200 million active users in India. Although ByteDance is in talks with Indian government to solve the security releated issue. But given the current geo political relation between India and China, it won’t be an easy job.
Accroding to Techcrush, one of their source said that the TikTok’s business in India is being valued at more than $3 billion. This deal will decide the fate of 2000 ByteDance employees in India.
A deal between ByteDance and Reliance is mitually benifical for both. If this deal happens TikTok will able to start their bussness again in their biggest overseas market. On the other hand Reliance will be able to expand its presence in the country more. At time when Reliance Jio’s consumer-facing apps have struggle to appeal users, so rather than creating another TikTok clone like other companies, it is wise to join hand with TikTok (ByteDance).
