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Indian social video platform ShareChat reportedly raised $300 million from Google, Singaporean state fund Temasek and Times Internet at a valuation of nearly $5 billion last week. Now, it is being reported that Chinese investment firm Tencent is also interested in investing an additional $100 million in the startup.

According to Mint, this new source of funding will be used to power ShareChat’s short video app Moj, the Indian equivalent of TikTok.

Due to new foreign investment rules implemented in April 2020, Tencent has decided to invest via convertible notes. The new rules state that all fresh foreign direct investments (FDIs) from bordering countries must secure prior approval.

Following border clashes in June 2020, the Indian government banned Chinese apps such as ByteDance-owned TikTok and Tencent-owned WeChat in the country.

However, despite these restrictions, Tencent has been able to continue investments in India via indirect means such as convertible notes. In April 2021, it was reported that Tencent invested $225 million into ShareChat through convertible debentures via two European special purpose vehicles, Zennis Capital BV and Hlodyn BV.

Over the years, Tencent has also invested in other Indian startups such as Khatabook, Flipkart, Udaan, and Practo.