India: User-retention is key for VC firms looking to bet on TikTok rivals

India: User-retention is key for VC firms looking to bet on TikTok rivals

The logo of TikTok application is seen on a screen in this picture illustration taken February 21, 2019. REUTERS/Danish Siddiqui/Illustration

Home-grown firms are scampering to raise capital, scale up, and fill the void following India’s decision to ban popular Chinese short-video platform TikTok. However, big institutional investors are cautious about committing large sums to Indian firms, with most platforms failing to meet the engagement metrics required to ensure long-term success.