Chai Shots: The Emerging Microdrama OTT Platform Raising $5 Million

Chai Shots, a microdrama over the top (OTT) platform hailing from Hyderabad, is in the process of securing $5 million during its initial funding round, as reported by two sources familiar with the situation.

A source, who preferred to remain anonymous, stated that General Catalyst, along with Info Edge, is in advanced negotiations to conclude a new funding round for Chai Shots. Additionally, a few angel investors are expected to join this funding initiative.

Overview of Chai Shots

Chai Shots operates as a short-video streaming platform, offering episodes that are less than two minutes long and expanding across multiple Indian languages. The platform is developed by the team behind Chai Bisket, a well-known digital media and storytelling company.

Content Ecosystem

The Chai Bisket team has cultivated a diverse content ecosystem over the past nine years, producing reels, podcasts, films, and regional narratives through various platforms, such as First Show, Mutiny Talent, Studio Panchatantra, and Chai Shots.

Upcoming Launch

Currently, the Chai Shots platform is under development and is anticipated to be launched soon.

Another source mentioned that the official launch and funding announcement might take several weeks. They highlighted that interest in this sector is rising, and additional startups are likely to secure funding shortly.

Industry Competition

Earlier this week, Flick TV, a comparable startup, successfully raised $2.3 million in seed funding, spearheaded by Stellaris Venture Partners, alongside participation from Gemba Capital and Titan Capital. Chai Shots is expected to encounter competition from platforms like Kuku FM’s Kuku TV, ShareChat’s QuickTV, Reel Saga, and Reelies.

Investment Trends

Queries directed to Chai Shots, General Catalyst, and Info Edge on Thursday did not receive a response before this report was published.

In June of last year, General Catalyst merged with the India-focused venture capital firm Venture Highway to enhance early-stage investments in the country. Since that merger, General Catalyst has partaken in the initial funding rounds for Primus Senior Living, Mukesh Bansal’s Nurix AI, and PB Healthcare.