Hyderabad-based micro-drama OTT startup enters pre-launch phase with robust investor support
Seed Funding Nears Closure
Hyderabad-based short-video OTT platform Chai Shots is finalizing its $5 million maiden funding round, according to two informed sources. The round is being led by established investors General Catalyst and Info Edge, with possible participation from several angel investors. A deal announcement is anticipated within weeks.
Innovating Micro-Dramas for Mobile Viewers
Chai Shots is positioning itself as an over-the-top (OTT) service offering under-two-minute episodic micro-dramas, available in multiple Indian languages. Tailored to the mobile-first audience, it draws upon the nine-year pedigree of digital media brand Chai Bisket, which has built a diverse ecosystem spanning short films, podcasts, branded content, and creator management via entities such as First Show, Mutiny Talent, and Studio Panchatantra.
Meet the Founders Behind Chai Shots
Chai Shots was founded by Sharath Chandra and Anurag Reddy Mayreddy, the visionary team behind Chai Bisket, a Telugu digital media powerhouse known for its hyperlocal storytelling and viral content. With a decade-long background in building regional content ecosystems through First Show, Studio Panchatantra, and Mutiny Talent, the duo is now venturing into short-form OTT with Chai Shots. Their proven expertise in regional audience engagement and creative production places them in a strong position to scale this micro-drama platform for India’s mobile-first generation.
Platform Development and Launch Ambitions
The platforms’s public launch is yet to be announced, although insiders believe Chai Shots is due for an imminent public launch, and is well into development and testing. It comes as part of a wider interest of investors in this short form OTT wave in India over the past few months.
Funding Fervor in Short-Form OTT Space
Investor enthusiasm for bite-sized video is rising in India. Just days ago, Flick TV, a Bengaluru-based micro-drama startup, raised $2.3 million in seed funding, led by Stellaris Venture Partners with investments from Gemba Capital and Titan Capital, aiming to scale content across multiple South Indian languages .
Flick TV, founded earlier this year by ex-ShareChat and Pocket FM leads, offers vertically shot drama episodes under five minutes. It plans to launch over 100 original titles and deploy generative AI tools in its production pipeline, reinforcing the viability of mobile-first storytelling.
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Market Opportunity and Competitive Stack
With over 900 million internet users in India and growing regional language demand, the micro-drama OTT segment is becoming a burgeoning space of innovation and capital deployment. Analysts estimate India’s micro-drama market could grow to $5 billion within five years, mirroring China’s earlier success in this format.
Chai Shots will face competition from incumbents and newer entrants, such as:
- Flick TV – early market mover,
- Kuku TV (from Kuku FM),
- ShareChat’s QuickTV,
- Reel Saga, and Reelies.
Investor Profiles: Why This Round Matters
General Catalyst, a major U.S. VC firm, formalized its India presence by merging with Venture Highway in June 2024. Post-merger, it has committed to investing $500 million to $1 billion in India over three years. It recently backed Nurix AI, founded by Myntra’s Mukesh Bansal, raising $27.5 million in Sept 2024.
Info Edge, known for digital classifieds like Naukri.com, 99acres, and Jeevansathi.com, is a veteran investor in India’s tech-first ventures.
Their involvement in Chai Shots validates belief in regional short-form narratives and consumer readiness for snackable entertainment.
Enhanced Market Insight
India’s short-video boom shows no signs of slowing. As per reports, over 80% of internet users are now mobile-first content consumers, with consumption time for short videos increasing by nearly 30% year-over-year across regional language segments. In the last quarter alone, bite-sized video platforms have grown user engagement by 25%, underscoring this genre’s potential.
What Lies Ahead for Chai Shots
Once the $5 million round closes, Chai Shots will likely channel the funds into:
- Scaling regional content production
- Enhancing app UI/UX
- Building a creator and storyteller community
- Exploring monetisation through micropayments, ad-revenue sharing, and subscriptions
A synchronized platform launch and funding announcement in the coming weeks could help Chai Shots gain an early foothold in this dynamic landscape.
Conclusion
The emergence of Chai Shots and Flick TV is simply the next stage in the evolution of the the digital entertainment ecosystem since India is already embracing short-form and mobile-first content.With the financial backing of affluent VC firms willing to invest in regional content playbooks and mobile-native, platform-specific storytelling formats, we may be on the edge of the next significant wave in India’s OTT narrative adventure.
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