How social commerce player DealShare aims to cross $2B in annual GMV run rate in 2022
In a recent conversation with YourStory’s Daily Dispatch, powered by HSBC, Vineet Rao, Founder and CEO, DealShare, talks about the social commerce startup’s journey through the pandemic and discusses the roadmap for the future.
Social commerce platformhas been making a mark for itself in the Indian ecommerce industry. Founded in 2018, the Bengaluru-based startup provides quality products at affordable ranges in smaller towns and cities of India.
For DealShare, the last couple of years have been an interesting journey as it grew at a monthly rate of 15-20 percent across multiple cities and towns before COVID-19 hit.
According to Vineet Rao, Founder and CEO, DealShare, the pandemic caused confusion initially, pushing the company to rethink its business operations.
“I think the pandemic has been a very positive thing for business, while it caused a lot of disruptions on the employees’ side, supply chain side, etc.,” he said.
In fact, COVID-19 was instrumental in the rapid shift of consumers towards ecommerce, he shared. DealShare grew by almost 13X and at a very low marketing cost.
Last year, the startup raised about $144 million in a Series D round led by Tiger Global. Commenting on the fundraise, Vineet explained the company had utilised a small part of the fund, and the majority of the funds were deployed towards expansion.
“We have scaled our warehousing capacity from about 2-2.5 lakh square feet at the beginning of last year to almost 25 lakh square feet by end of December,” he said.
Present in 10 states and over 100 cities and towns, DealShare has also heavily invested in technology and team.
Speaking about key strategies, Vineet said the startup aims to expand to reach 1,000 cities and towns across 15 states by the end of 2022. DealShare also has an asset-light model for smaller towns and cities, wherein it partners with local entrepreneurs.
Through its community leader programme, DealShare Dost, the startup aims to set up community leaders in all small towns and cities. In 2022, the company will be investing heavily in technology too.
According to Vineet, DealShare is different from traditional ecommerce companies, where users usually come with an intent to buy. DealShare targets a discovery and impulse-driven buying approach, triggered by flash sales and gamification on the platform.
Talking about key metrics, Vineet mentioned the startup crossed $700 million in annualised GMV run rate in December 2021.
“The goal by December 2022 is to cross $2 billion in annualised GMV run rate,” he said. The company has about 1.3 million buying customers, and plans on scaling this number to 5 million over this year.
Edited by Suman Singh