DealShare, a fast-growing e-commerce company, has raised $21 million in Series C funding round led by WestBridge Capital. The financing round includes participation from Alpha Wave Incubation - a venture fund managed by Falcon Edge Capital, Z3Partners and existing investors Matrix Partners India and Omidyar Network India. With the current round, the total funding raised by DealShare in the last two years stands at $34 million.
DealShare is rapidly developing into the go-to platform for value-conscious customers. It will use the capital proceeds for the next phase of its growth, which will include expanding to newer geographies, penetrating deeper into current markets and scaling operations. The other plans include expanding local sourcing networks and strengthening its technology platform across business verticals.
“This latest round of investment is a testament of our investors’ confidence in DealShare’s vision of bringing the e-commerce experience to the masses of India, especially to the low and mid-income population,” said Vineet Rao, founder and chief executive officer of DealShare. “We plan to use the funds to strengthen our technology platform and talent pool and scale our unique ‘Made-for-India’ solution. Over the last two years, we have witnessed rapid adoption of our app amongst tier-2 and tier-3 cities and will continue with this growth journey,” he said.
The company was founded by Vineet Rao, Sourjyendu Medda, Sankar Bora and Rajat Shikhar. Since its inception in 2018, DealShare has built a highly differentiated model in India’s e-commerce sector. The company has successfully targeted India’s fast-growing, mid-income demographic of 500 million new-to-internet users. DealShare said its robust model has solved for positive unit economics in an industry that has not witnessed positive unit economics despite upwards of $15 billion of invested capital.
Much of DealShare’s success is attributed to its differentiated first-principles business building that spans target audience, sourcing, customer acquisition and fulfilment including last-mile distribution. DealShare is already clocking gross revenues of over $45 million, with $7 million of capital invested.
“We are excited to partner with DealShare on their journey to tap the untouched potential of the e-commerce business into the mass population of the country,” said Sandeep Singhal, co-founder and managing director, WestBridge. “Majority of Indian population is currently residing in the non-metros and there is a huge business opportunity in these regions.”
He said the buying pattern of low- and middle-income groups is different especially in smaller markets and DealShare seems to have understood the nuances very well.
The firm aims to re-invent e-retail for the next billion internet users. Currently, DealShare is present in more than 25 cities and towns across Rajasthan, Gujarat, Maharashtra and Karnataka.
Sourjyendu Medda, founder and chief business officer, DealShare, said with this round of investment, the firm will augment its brand presence across existing and new markets. Over the next year, the company is targeting to increase its footprint to 100 cities and towns across 5 states. “Along with this, we will increase our customer base to 1 crore,” said Medda. “This investment will take us to an annual GMV (gross merchandise value) of Rs 2500 crore.”