Social commerce player DealShare to expand operations in Delhi-NCR

Tiger Global-backed social commerce player DealShare said it is expanding its operations in Delhi-NCR after Rajasthan, Gujarat, Maharashtra and Karnataka.

In the first phase, DealShare will provide services to more than 160 pin codes across Delhi, Ghaziabad, Faridabad, Meerut, Noida, and Gurgaon.

With this expansion, DealShare will be serving more than 45 cities and five states in the country. Launched just four months ago, it has already onboarded 1 million customers with a gross merchandise value average rate of return of $60 million in the Delhi NCR region

“Right now we are in 25,000 cities across five states, and our target is to be in 100,000 cities by the end of the year, in ten States,” said Vineet Rao, founder and CEO, DealShare.

DealShare recently raised $144 million from Tiger Global, WestBridge Capital, Alpha Wave Incubation (a venture fund backed by ADQ, and managed by Falcon Edge Capital), Partners of DST Global, Matrix Partners India, and Z3Partners and Alteria Capital.

It also plans to hire 100 more people in line with its expansion plans.

DealShare provides customers with a curated assortment of products, ranging from grocery to essentials that are required for daily use at highly competitive price points.

“Despite Covid-19-induced harsh conditions, our customer base has grown significantly. We are currently at a GMV run rate of $400 million. Our customer base is growing at 50 per cent month-on-month and we are confident that expanding our market presence will help us to further scale our base to 10 million customers by the end of this year. For market expansion, we are earmarking $100 million, and we are aiming to reach 1500 pin codes by the end of 2021,” said Rao.

Given Delhi-NCR’s large low and middle-income population, Rao feels DealShare will be able to offer quality products at competitive prices.

It has a gamified, fun-filled and virality-driven local language-driven shopping experience.

At DealShare, the market expansion will also be supported by strengthening of the product portfolio, community leader network and operation efficiency.

Sourjyendu Medda, co-founder, chief business officer and chief finance officer, DealShare, said, “Since its inception, DealShare has been working with more than 1,000 indigenous brands and have helped many to register significant growth despite the pandemic. In Delhi—NCR currently we are associated with more than 200 manufacturers. The brands have started witnessing 300-500 per cent growth and in some cases even 1000 per cent growth in their sales. NCR for us has been the largest and the fastest market and we have grown at an unbelievable pace.”

According to Bain & Company’s report on social commerce, the sector in India (in terms of gross merchandise value) is projected to reach $16-20 billion by 2025 and $60-70 billion by 2030. A major driver of this growth would be the low- and middle-income group and the first-time internet users.