DealShare raises $100M in Series D funding round led by Tiger Global
DealShare, an Indian social commerce startup, has raised $100 million in a Series D funding round led by Tiger Global. The round also saw participation from existing investors including WestBridge Capital, Alpha Wave Incubation, and Z3Partners. The latest funding brings the total amount raised by the company to $183 million.
DealShare was founded in 2018 by Vineet Rao, Sankar Bora, Sourjyendu Medda, Rishav Dev, and Rajat Shikhar. The company operates a social commerce platform that allows users to buy products at discounted prices by sharing deals with their friends and family. The platform currently has over 25 million registered users across 25 cities in India.
Expansion plans
With the latest funding, DealShare plans to expand its operations to more cities in India and hire more employees. The company aims to reach 100 million users in the next three years and become a leading player in the Indian social commerce market.
Rising demand for social commerce
The Indian social commerce market has been growing rapidly in recent years, driven by the increasing adoption of smartphones and the internet. According to a report by RedSeer Consulting, the market is expected to reach $16-$20 billion by 2025, up from $1.5-$2 billion in 2020.
Social commerce platforms like DealShare have been gaining popularity among consumers as they offer a more personalized shopping experience and better deals than traditional e-commerce platforms. These platforms also allow users to share their shopping experiences with their friends and family, which helps to build trust and increase sales.
Challenges for social commerce startups
While the social commerce market in India is growing rapidly, startups in this space face several challenges. One of the biggest challenges is the lack of trust among consumers, especially in rural areas where e-commerce adoption is still low. Social commerce startups need to build trust among consumers by offering high-quality products at affordable prices and providing excellent customer service.
Another challenge for social commerce startups is the high cost of customer acquisition. These startups need to spend a significant amount of money on marketing and advertising to attract new users, which can be a major barrier to entry for new players.
The role of WhatsApp in social commerce
One of the key drivers of the growth of social commerce in India has been the widespread adoption of WhatsApp. The messaging app has over 400 million users in India and has become a popular platform for social commerce transactions.
Many social commerce startups, including DealShare, have integrated with WhatsApp to allow users to place orders and make payments through the app. This has helped to increase the convenience and accessibility of social commerce for users, especially those in rural areas who may not have access to traditional e-commerce platforms.
Conclusion
DealShare’s latest funding round is a testament to the growing demand for social commerce in India. With the support of investors like Tiger Global, the company is well-positioned to expand its operations and reach more users across the country. However, social commerce startups in India still face several challenges, including building trust among consumers and high customer acquisition costs. By leveraging platforms like WhatsApp and offering personalized shopping experiences, these startups can overcome these challenges and tap into the huge potential of the Indian social commerce market.
