YouTube has acquired social commerce startup simsim. Both firms didn’t disclose the deal’s value, but two people with knowledge told that it is valued at over $70 million. Simsim had previously raised about $17 million and was valued at $50.1 million in its 2020 Series B financing round. The startup helps small businesses in India shift to e-commerce by using the power of video and creators. The startup’s app acts as a platform to connect local businesses, influencers, and customers.

According to Rohan Malhotra of Good Capital, an early investor of simsim, “micro-influencers are more capable at building a targeted audience, generating entertaining experiences, building trust, and personalising messaging. Consumer social platforms like Facebook, YouTube, Instagram, etc., cannot monetise via advertising-financed models in India; this unlocks the opportunity for more deeply integrated transactional platforms. New internet users in India need an interactive seller-led experience to replace the offline e-commerce experience this market is used to.”

“We started Simsim with the mission of helping users in India shop online with ease, enabled through small sellers and brands showcasing and selling their products using the power of content by trusted influencers. Being a part of the YouTube and Google ecosystem completes simsim in its mission,” Simsim cofounders Amit Bagaria, Kunal Suri, and Saurabh Vashishtha said in a joint statement.