How Is Snapchat Building Its India Growth Story?

In the world of social media where platforms thrive on their users’ craving to fetch more likes and comments on their profiles, photos or videos, US-based social media networking and messaging platform Snap Inc. claims to be an antidote. 

The managing director of Snap’s India arm, Pulkit Trivedi, on Wednesday (March 20) said that unlike “its rival platforms, Snapchat frees its users from the constant chase of likes, comments and trolls and gives a more personalised experience to its users.

Currently, the US social media giant claims to have a monthly active user base of 200 Mn in the country versus its rival Instagram which has an MAU of 362 Mn, as per Statista. 

Speaking at Snapchat’s debut event in Bengaluru, Trivedi said that the social media platform’s business strategy in India is getting the brands to sell to young Indians by advertising on the social media platform. It hopes to achieve this by giving a distinctive AR-based virtual experience to both advertisers and users.

Speaking with Inc42, on the sidelines of the event, Trivedi said that for the last four months, Snapchat is focussed on expanding the team size in Mumbai, Delhi and Bengaluru and has doubled the workforce strength this year.

Notably, the past 2 to 2.5 years have been all about aggressive growth for Snapchat in India. During this time, the company also roped in former Meta India head Ajit Mohan to head its Asia-Pacific business. Trivedi joined the social media firm as India head in August 2023. He was earlier working with Google as the director, Google Play, India business team.

The Indian unit of Snapchat, Snap Camera India, reported a 20% increase in revenue to INR 79 Cr for FY23 compared to INR 65.7 Cr in FY22. 

Snapchat Has GenZ In Focus

During his surprise visit to India in November last year, Snap Inc.’s global CEO Evan Spiegel said that the company was bullish on the younger Indian population and would attract a higher user base through the app’s face filters and location-based features.

Much like other markets, Snapchat in India is sharply focussed on building a GenZ userbase (13 to 25 years) with offerings like its high-tech augmented reality (AR) enabled camera filters, which differ it from its rivals. Trivedi, too, believes that the company’s AR-enabled camera has been the USP of the social media platform. 

“Our commitment is to deepen our connection with Young India, making Snapchat their go-to platform for authentic self-expression, real connections, and innovative brand interactions,” Trivedi said in a statement. 

“India is home to 20% of GenZ [population] worldwide, presenting an unmatched opportunity for brands and businesses to tap into the priorities and technological engagements of this influential demographic. Snapchat offers a unique platform for engaging these young audiences in creative ways, standing out as a vibrant hub for dynamic users who are not readily accessible on other platforms,” the Snapchat India head added. 

Snapchat’s advanced AI-based virtual messaging, AR lenses, location-based feeds (timelines), and short video content (Spotlight) are particularly meant to engage young users.

Trivedi said that the company is uniquely positioned, as it distinguishes itself with a predominantly young audience that holds considerable influence over buying or purchase decisions, not only for themselves but within the household. 

“With India accounting for 20% of the global Gen Z population, the potential for businesses to engage with this demographic is substantial. This becomes particularly pivotal as the youth, born into the digital era, transition into adulthood and the workforce, wielding considerable purchasing power and influencing household decisions. Brands and businesses are looking for ways to engage with the young audience to drive sustained growth for their businesses,” Trivedi told in response to Inc42’s question.

Eyeing India’s Rising Digital Ad Market

India’s corporates and startups are not shying away from spending on digital-first platforms to draw revenues through direct advertising, influencer marketing and other strategic tie-ups. 

The Snapchat India head told Inc42 that the Indian digital advertising space was a $10 Bn market opportunity in 2023, which is projected to more than double by 2028, driven by growth in online commerce, online video consumption, and the rise of influencer marketing led by content creators. 

“Brands and businesses are looking for ways to engage with the young audience to drive sustained growth for their businesses. Additionally, the design of our app contributes to a positive user experience, reflected in heightened receptivity to ads compared to other platforms,” he added. 

The Snapchat India head said that one of the company’s key objectives and plans is to lead the shift in the advertising industry towards pioneering visual commerce and enabling brands to create engaging experiences and drive brand preference and purchase intent among users.

For this, the social media platform engages with young influencers and creators, providing monetisation opportunities through brand partnerships and promotions.

With the digital advertising revenues of both companies increasing at an impressive rate, it will be interesting to see how Snap captures a juicy pie of 900 Mn+ smartphone user base in India.

[Edited by Shishir Parasher]

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