Social e-commerce player DealShare plans to expand its presence to 100 cities and ten States by the end of this year. After Rajasthan, Gujarat, Maharashtra and Karnataka, the company has now expanded to the Delhi-NCR region and will be serving 45 cities now.
With the expansion in Delhi-NCR region it aims to serve more than 160 pin codes across Delhi, Ghaziabad, Faridabad, Meerut, Noida, and Gurgaon in the first phase.
Vineet Rao, CEO and Founder, DealShare, told BusinessLine , “We are planning to rapidly expand into Uttar Pradesh starting with Lucknow and other towns in the Northern belt. We will also have a presence in West Bengal soon. Then we will deepen our presence in the States that we have a presence in currently. We are also setting up teams for expansion in Andhra Pradesh, Telangana and Tamil Nadu region.”
DealShare strategically caters to value-conscious customers offering an assortment of products, ranging from grocery to essentials that are required for daily use at competitive price points.
The company recently raised $144 million from Tiger Global, WestBridge Capital, Alpha Wave Incubation and Z3Partners.It also included partners of DST Global, Matrix Partners India, and Alteria Capital. “Despite the Covid-19 induced challenges, we are currently at a GMV(gross merchandise value) run rate of $400 million. For market expansion, we are earmarking $100 million and we are aiming to reach 1,500 pin codes by the end of 2021. A major driver of this growth would be the low and middle-income group and the first-time internet users,” Rao added.
Plan to raise 200 warehouses
He added that the funds are being deployed for creating assets such as warehouses, building technology at both the consumer-end and supply chain as well as strengthening the teams. He said plans are afoot to establish 200 warehouses to back the expansion into new regions by the end of the year. “Given the rapid expansion, we are confident of hitting the $1 billion GMV run rate by the end of the year and building a 10-million-strong customer base by the end of this year,” Rao added.
According to a report by Bain & Company, the social e-commerce sector in India (in terms of gross merchandise value) is projected to reach $16-20 billion by 2025.