Just like Meesho, another social e-commerce startup DealShare is set to shift towards becoming a unicorn with a new cycle of funding that will value the business at $1.7 billion, as per reports. DealShare is raising around $150 Million at a valuation of $1.7 Billion, and the series is assumed to finish soon, the sources told.
With this, Dealshare’s valuation will more than treble and will propel the firm into the unicorn club. The business was last evaluated at under $500 million in July when it had raised $144 million in its Series D round. It includes among its investors, Tiger Global, WestBridge Capital, Alpha Wave Incubation, & Z3Partners, partners of DST Global, Matrix Partners India & Alteria Capital. It is not clear yet who the new investors in the latest round will be.
Founders of DealShare and the company denied commenting on this.
Another social e-Commerce startup Meesho, which has recently turned unicorn earlier this year, has seen its valuation more than doubled to $4.9 billion in under five months after it raised $570 Million in its Series F series of investments driven by B Capital Group & Fidelity Management & Research Company beginning this month.
DealShare provides a community buying model in the grocery and essentials category and has developed a micro-entrepreneur-driven low-cost delivery mechanism.
As of July 2021, DealShare catered to over 3 million customers and was recording about 1 lakh orders daily.
In August this year, this second-tier cities-oriented grocery-focused social commerce firm raised $144 million in a new funding round led by Tiger Global, a New York-based investor.
The E-commerce industry has got further push due to the covid-19 emergency. Online retail giants like Amazon, Flipkart, and others recorded exponential growth in their user base during the pandemic era. But, do you know the major drawback of such platforms? They target metro cities people as the targeted audience.
DealShare, a social commerce startup from Rajasthan, targeted the second-tier cities and middle-income Indians via its WhatsApp based platform. Now, the startup has transformed itself into a technology-oriented e-commerce firm.
Vineet Rao, Sankar Bora, Sourjyendu Medda, and Rajat Shikhar co-founded DealShare in September 2018. Most of the startups start their journey from metro cities like Bengaluru, Mumbai, Delhi etc. But, DealShare broke that barrier and began its operations from Jaipur, Rajasthan.
DealShare began its journey through WhatsApp to sell mass-market products to tier-II and tier-III residents. Soon, the startup developed its app to sell products. The app was very simple, with a buy button and address. The app was available in Hindi and English as the firm was targeting North Indian people.
As per DealShare claim, it made the app ready within two weeks without external support. The app became an instant hit among DealShare WhatsApp customers. As per the DealShare report, the online platform attracted 30,000 customers within 20 days. And, DealShare spent no penny on app marketing.