Facebook parent company Meta, which India considers the largest market by users, is gearing up to make its third startup investment in the South Asian market.
The American social media group, which invested in social commerce Meesho in 2019 and online learning platform Unacademy in 2020, is in talks to support the startup Better Opinions at an early stage, three sources familiar with the case tell londonbusinessblog.com.
Deliberations are ongoing and the deal has yet to be closed, sources warned and asked for anonymity as the details are private. Meta did not respond to a request for comment Tuesday night.
Meta is proposing to invest in Better Opinions’ seed funding round of up to $3 million, valuing the startup at less than $25 million, two sources said. If the talks culminate in a deal, it will be the first time Meta has taken a stake in an Indian startup in the start-up phase.
Samay Jain, co-founder of Better Opinions, told londonbusinessblog.com in an emailed response that the startup has raised $2.5 million in seed funding from a number of investors, including Metaplanet VC, YCombinator, Taurus VC, Original Capital, Tremis Capital. , Goodwater Capital and Super Capital . He declined to comment on the startup’s deliberations with Meta.
Better Opinions, founded last year by GoJek alumni Jain and Soumyajit Das, is building what it has described to investors as “the prediction market” for India. The app of the same name allows individuals to exchange their views on everyday topics and win real money based on how well those predictions turned out.
These mundane topics include predicting the price of a cryptocurrency token at a specific time in the future, collecting new titles at the box office, and the number of views YouTube can accumulate over a period of time.
The app also allows users to make predictions about the results of cricket matches and specific outcomes of certain events in the game, such as runs in an over, according to an analysis of the app.
“You can set your price, hedge and trade with Better Opinions. With our insights and your skills, you can trade and profit. We want to make trading an exciting exercise,” the startup says on its website.
Commenting on numbers obtained from an investor deck, Jain said the startup has amassed 600,000 users who have traded more than $1.25 million on the platform. The startup plans to generate revenue by charging brokerage fees, selling subscriptions and market making, it revealed in the investor deck.
Better Opinions is trying to open up the world of investing to people who understand specific topics but can’t tap into the stock markets, one of its investors describes in a memo.
The prediction market is starting to enter several markets. Startups like Kalshi and Dream11 are also active in the space and have amassed millions of users.
Meta’s colleagues Google and Amazon have also made several investments in India in recent years, seeking opportunities that often complement and broaden their approaches to serve the world’s second-largest internet market.