Tiger Global-backed DealShare, a social e-commerce unicorn, plans to invest Rs 500 crore over the next two-three years to launch its own private labels.
DealShare has introduced 52 categories under Chemko (home cleaning), Swaccha (personal hygiene), Sampoorti (Pantry staples) and X One (Male grooming brands) in its first phase. The company also plans to foray into skin and haircare, beauty and apparel products over the next two years.
DealShare’s products compete with existing heavyweights in the industry.
“While this segment is extremely crowded with big players, however, the mass market customer is still left with limited choices and is predominantly under-serviced. We have been successfully bringing national presence to local brands and believe that our own private brands will only add value and offer wider choices to our value based customers,” said Vineet Rao, founder and chief executive officer, DealShare.
The penetration of unbranded goods is in the high double digits in most categories. Local & hyper-local brands do a good job of servicing small segments of this large market with varying degrees of success, the company added in its statement.
DealShare Private Label brands plans to reach over 3,000 towns in India. Currently, DealShare is present in over 150 cities across eight states. According to the Indian brand equity forum (IBEF), the consumer packaged goods (CPG) market in India is expected to grow at a compound annual growth rate (CAGR) of 14.9% to reach $220 billion in size by 2025, from $110 billion in 2020.