YouTube is shutting down Simsim, the video commerce app it acquired in July 2021, as the Google-owned video-sharing site looks to focus on shopping features on its platform.
"As we discontinue the Simsim app, we'll be working with creators to introduce more monetisation opportunities for creators through an affiliate program and more shopping features across long-form videos, Shorts and livestreams on YouTube in 2023" a YouTube spokesperson told Moneycontrol on March 23.
The spokesperson said the video-sharing platform remains committed to building a "seamless" shopping experience for viewers and supporting creators' businesses. ET Prime was the first to report the development, saying Simsim would stop taking new orders after March 31, 2023.
YouTube introduced a dedicated shopping destination in India in July 2022, amid the rising adoption of live commerce and shoppable videos in the country. Available through YouTube's explore tab, it features shoppable content for viewers across formats including Shorts, livestreams, and long-form videos.
While elaborating on YouTube's priorities for 2023, newly appointed head Neal Mohan said in February they would continue to invest in shopping -related features.
Founded in July 2019 by Amit Bagaria, Kunal Suri and Saurabh Vashishtha, Simsim helped small businesses transition to e-commerce through influencer-based videos in Hindi, Tamil and Bengali. Among its backers are Shunwei Capital and Accel.
At the time of acquisition, YouTube said Simsim would continue to operate independently and it would “work on ways to showcase Simsim offers” to its viewers.
Simsim posted a loss of Rs 157.25 crore on revenues of Rs 18.21 crore in FY22, according to an Entrackr report.
Among other players who launched live commerce in India are e-commerce players such as Flipkart, Myntra, Amazon, and Nykaa, and short-form video apps such as ShareChat's Moj.
Content-to-commerce startup The Good Glamm Group also announced the acquisition of video commerce platform Bulbul on March 21.
Meta-owned Instagram discontinued its live shopping features on March 16, though the company said it would continue to "invest in shopping experiences for people and businesses across feed, stories, Reels, ads and more".
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