Indian Startup DealShare Raises $21 Million in Series C Funding Round
DealShare, an Indian e-commerce startup, has raised $21 million in a Series C funding round led by WestBridge Capital. The funding round also saw participation from Alpha Wave Incubation, Z3Partners, and existing investors Omidyar Network India and Matrix Partners India.
Founded in 2018, DealShare operates a group-buying platform that offers discounts on groceries and other household items to consumers in smaller Indian cities and towns. The company claims to have over 1 million users and has been growing rapidly in recent months.
This latest funding round brings DealShare’s total funding to date to $34 million. The company plans to use the funds to expand its operations across India and to invest in technology and talent.
DealShare’s Unique Business Model
DealShare’s business model is unique in that it focuses on serving consumers in smaller Indian cities and towns, rather than in the larger metropolitan areas where most e-commerce companies operate. The company’s platform offers discounts on a wide range of products, including groceries, personal care items, and household goods.
One of the key features of DealShare’s platform is its group-buying model. Users can form groups with friends and family members to purchase products together, which allows them to access even deeper discounts. The company also offers a referral program that rewards users for inviting their friends to join the platform.
DealShare’s focus on smaller cities and towns has allowed it to tap into a largely untapped market in India. According to a report by RedSeer Consulting, the e-commerce market in smaller Indian cities and towns is expected to grow at a CAGR of 41% between 2019 and 2023, compared to just 25% for the overall e-commerce market in India.
The Impact of COVID-19 on DealShare’s Business
Like many e-commerce companies, DealShare has seen a surge in demand since the outbreak of COVID-19 in India. With many consumers reluctant to leave their homes, online shopping has become increasingly popular.
DealShare has been able to capitalize on this trend by offering a wide range of essential products at discounted prices. The company has also implemented a number of safety measures to protect its employees and customers, including contactless delivery and regular sanitization of its warehouses.
According to DealShare CEO Vineet Rao, the company has seen a 3x increase in sales since the start of the pandemic. Rao also noted that the company has been able to maintain its high levels of customer satisfaction despite the increase in demand.
DealShare’s Plans for the Future
With its latest funding round, DealShare plans to expand its operations across India and to invest in technology and talent. The company aims to reach 100 million users over the next few years and to become a leading player in the e-commerce market in smaller Indian cities and towns.
To achieve this goal, DealShare will need to continue to innovate and adapt to changing market conditions. The company will also need to compete with other e-commerce players that are looking to tap into the same market, such as JioMart, which is backed by Reliance Industries.
Despite these challenges, DealShare’s unique business model and focus on customer satisfaction give it a strong foundation for future growth. As the e-commerce market in India continues to evolve, DealShare is well-positioned to capture a significant share of this rapidly growing market.
DealShare’s latest funding round is a testament to the company’s unique business model and its ability to serve the needs of consumers in smaller Indian cities and towns. With its focus on group-buying and deep discounts, DealShare has tapped into a largely untapped market in India and has seen strong growth in recent months.
The company’s plans to expand its operations and invest in technology and talent will help it to continue to grow and to compete with other players in the e-commerce market. As the e-commerce market in India continues to evolve, DealShare is well-positioned to capture a significant share of this rapidly growing market.