DealShare Success Story & Business Model – Unicorn Journey of Dealshare
The hyperlocal market in India has grown enormously after the COVID-19 pandemic. Interestingly, both online and offline hyperlocal platforms have earned huge revenue. As per some reports, the hyperlocal delivery apps market revenue totaled US$952.7 million in 2021. This value is expected to grow by almost double in upcoming years.
Currently, hyperlocal delivery apps represent a 25% share of the e-commerce platform market. The updation and adoption of hyperlocal delivery applications have gained a lot of significance today only because of the fast-moving world.
DealShare Founder
Similarly, we have DealShare, it is a fast-growing e-commerce startup in India that was founded in 2018. It is a hyperlocal online buying platform for multi-category consumer products that is focused on the new ‘Whatsapp First’ India. DealShare deals with the idea around demand aggregation (C2B) of mass-market products. The company focuses to capture the market through social virality and thereby it would reduce operational costs.
This e-commerce hyperlocal online buying platform was founded by four young and energetic founders and they are Vineet Rao, Rajat Shikhar, Sankar Bora, and Sourjyendu Medda. Vineet Rao happens to be the CEO of the company as well.
He is an experienced product and technology leader in the area of e-commerce, databases, social, cloud systems, large-scale online services, and AI-based personal assistants. He founded DealShare back in 2018 in Bangalore, Karnataka, India. Other than DealShare, Vineet is also the founder of Shopwest and SpectraVR Studios Private Limited.
Another Co-CEO and Founder of DealShare is Sourjyendu Medda. He is an experienced business leader and founder in the area of business, retail, social, and FMCG.
Read More : Sonata Software Success Story & Business Model
What is DealShare Business Model?
The story of DealShare begins with two friends, who curiously wanted to test the market condition by starting a few Whatsapp groups. Both friends included their friends, family members, and old employees from their previous companies in that Whatsapp group.
Every day, these friends used to provide new DealShares to the Whatsapp group and found out that the order received was more than their expectations. This ratio was not declining instead, it was increasing day by day.
Now, the main question was why consumers trusted DealShare despite so many other reputed brands in the market. The main reason behind customer attraction was DealShare’s multiple business strategies. The targeted consumers of DealShare were the consumers who were new to the internet world and did not know about any other e-commerce platforms.
DealShare works on a discovery-based business model. All the credit goes to China’s Pinduoduo model that inspired DealShare. This model encourages customers to make purchases in groups, and motivates them to share the item offers with relations.
The discovery-led business model allows its customers to choose the best-fit orders for daily use. For example, groceries, home decor, hygiene, fitness products, electronics, and many more. DealShare provides products at lower prices to consumers than the wholesalers.
This inspired business model entices consumers to purchase the item they are willing to buy from groups and this way the chain goes on and on. This is the simple business model being followed by DealShare.
How does DealShare Operate?
DealShare’s unique business model helps the company operates smoothly. Other than that, the multiple business strategies used by the company helped gain lots of operational duties and consumers. DealShare operates in a unique market in India with the motive to create the next big e-commerce platform in India. The company’s target audience starts from low to mid-income people in tier-2 and tier-3 markets including the village area.
Its app interface is very easy and user-friendly. That makes it easier for people who have never used the internet or any e-commerce platform before. They can easily order and buy products from the DealShare application. Interestingly, with just a few clicks, every product available on the application can be bought. Other than that, to help regional users to use the app efficiently, DealShare has made many languages available.
Now, you can join DealShare’s Whatsapp group for exciting offers and discounts. Here is how a user can order using the DealShare app:-
- Download the official DealShare app from Play Store or iStore
- When the download is completed open the app and they will ask for a pin-code or zip-code
- After you enter your pin-code click on ‘verify’
- In the next step you will need to select the language as per your preference
- Then you will need to register yourself with your mobile number and other details
- You can now see all sorts of products and their price, select the products you like and then place an order
What is the Revenue of DealShare?
Again for its huge revenue generation, the credit goes to its multiple business strategies. As of some genuine sources, the total revenue from operations grew more than 8X to Rs 1,932.8 crore in Financial Year 2022 from Rs 236.7 crore in Financial Year 2021. Yes, it is a huge revenue growth for DealShare and is expected to grow more in the upcoming years.
DealShare also known to be an E-commerce unicorn, faced a loss of 543% to Rs 431.1 crore in the financial year 2021-22 from Rs 67 crore in the Financial Year 2020-21. Despite facing such a big loss the company is still running at a good profit rate.
The primary revenue generation of DealShare is from the delivery of goods to customers and marketing income from vendors. On the other hand, the startup expenses for DealShare rose to 679% to Rs 2,388 crore from Rs 306.4 crore in the company’s previous fiscal year. Still, the overall performance of this e-commerce online buying platform has surprised many investors around the world.
DealShare Competitors
A company is nothing without competitors. Here are some of the head-to-head competitors of DealShare:-
- GlowRoad
- CityMall
- Meesho
- SimSim
- Na Inc
- Mall 91
- Bulbul Shopping Centre
DealShare Latest News
DealShare happens to one of the emerging startup e-commerce companies in India. It’s quite obvious that this company will make headlines every week. Two weeks back DealShare built its leadership team with new appointments. Some of the key members who joined the head department of DealShare are the following:-
- Prashant Kumar- Has joined DealShare after extensive stints as a researcher and policy expert in India. Prashant has worked with some of the world’s top companies like ANI Technologies (OLA) and Ola Mobility Institute. Other than that he has also been associated with Observer Research Foundation, Rajiv Gandhi Institute for Contemporary Studies, and Aspen Institute India. Prashant will be head DealShare’s Pubic Policy, Government Relations, and Corporate Communications
- Rajesh Purohit- Has joined DealShare as the Senior Vice President of Retail. His primary role in the company will focus on contributing to the company’s rapid expansion and operational success.
- Abu Dhabi Investment Office is pursuing Indian startups to set up bases in their region. ADIO is doing this to expand the local economy beyond hydrocarbons. ADIO is in talks with some companies that are largely focused on sectors such as financial services, agriculture technology, tourism, ICT, and health services. In India, ADIA is actively growing its investments with the latest being $500 million. Some of the homegrown brands that they are investing in are DealShare, Greenko Energy, Kotak Mahindra Group, Intas Pharma, and many more.
DealShare Valuation
Back in February 2022, DealShare raised $45 million in Series E funding from ADIA. The company has received investments from lots of investors which have increased the total valuation of the company.
The total valuation of DealShare as of January 2022 was between $1,490- $1,620 million.
DealShare Investors
DealShare is funded by 18 investors among which 6 of them are lead investors. The investors of DealShare are the following:-
- Twenty-Nine Capital Partners
- DF International Partners
- Alpha Wave Global
- Tiger Global Management
- Kora
- Dragoneer Investment Group
- Unilever Ventures
- DST Global
- Abu Dhabi Investment Authority
- Z3 Partners
- Alteria Capital
- Matrix Partners India