DealShare bags fresh $144 million in funding led by Tiger Global

By: |
July 09, 2021 5:00 AM

The investment comes barely seven months after a clutch of investors infused about $21 million into the firm. The company’s total fund tally now stands at $183 million.

The firm is open to securing more capital from more marquee investors as competition in the space intensifies, Medda said.

Social commerce start-up DealShare has raised a fresh $144 million in funding led by Tiger Global at a post-money valuation of $455 million. The financial round was also backed by a slew of other investors, including WestBridge Capital, Alpha Wave Incubation, Z3 Partners, DST Global, Matrix Partners India and Alteria Capital, the company said in a statement on Thursday.

The investment comes barely seven months after a clutch of investors infused about $21 million into the firm. The company’s total fund tally now stands at $183 million.

The Bengaluru-based start-up claims that its valuation has seen a ninefold increase with the fresh funding on the back of “high growth momentum”.

The bulk of the capital will be used to fund domestic expansion. The company, which caters to the daily needs of households that typically makes about Rs 50,000 in monthly income, is firming up plans to grow its footprint to 100 cities by the end of this year from the current 40 locations that it services. A good part of the funds will also be deployed to build on its technological capabilities, AI (artificial intelligence) driven innovations besides widening its network of manufacturers to over 5,000 partners. The two-year old start-up founded by Vineet Rao, Sourjyendu Medda, Sankar Bora and Rajat Shikhar follows an inventory-led business model. The firm on-boards local manufacturers, procures items from them and provides it to consumers via their app. The app has elements of gamification and group buying built into it to drive consumption. Buyers get attractive deals on bulk purchases of products.

Founder Sourjyendu Medda told FE that the company is close to reaching break-even on a national level. In fact, the company has already reached break-even in Jaipur that drives 35% of the firm’s business.

The company said it has serviced more than 3 million consumers and over 20 million orders in the last two years. “We are confident of hitting a $1 billion GMV Run Rate by the end of the year thereby building a strong 10 million customer base,” it said in the statement.

The firm is open to securing more capital from more marquee investors as competition in the space intensifies, Medda said.

Walmart-controlled Flipkart is the latest entrant in the space with the launch of its Shopsy app for small businesses. Meesho is another prominent social commerce player. Earlier this year, Meesho turned a unicorn with a $2.1-billion valuation after bagging $300 million in funding led by SoftBank Vision Fund 2.

Social commerce, which is a $1.5-2 billion market in India today, is estimated to be worth as much as $20 billion in just five years — and will likely hit nearly $70 billion by 2030, analysts said.

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