Social commerce app DealShare raises $11m from Matrix Partners India, Falcon Edge, others

Social commerce platform DealShare has secured US$11 million across seed and series A rounds led by Matrix Partners India and hedge fund Falcon Edge Capital.

DST Global, Omidyar Network, and other angel investors also participated in the round.

Photo credit: briangoodman / 123RF.

Jaipur-headquartered DealShare, which also has offices in Bangalore and Ahmedabad, is a hyperlocal business-to-consumer business that offers consumer products such as fruits and vegetables, grocery items, home decors, and fashion accessories.

Focused on the popular “WhatsApp first” approach in India, the startup also provides discounts when a user buys with their friends. It offers free home delivery and cash-on-delivery services.

“Indian consumers living in tier two and below cities have long been missing out on the negotiating ability it possesses attributing to the huge population due to lack of tools for collective buying. DealShare solves this unique problem through its app where users are able to consolidate the buying requirement among their friends and relatives and place orders on the app,” said DealShare CEO Vineet Rao.

The startup, which was founded early last year by five entrepreneurs, looks to use the new funds to bolster its logistics model. It also plans to launch programs such as DealShare Dost for last-mile supply chain and DealShare Dukaan, which is an online-to-offline store model.

It currently operates in major cities of Rajasthan and Gujarat, and soon in Maharashtra.

In January, Matrix Partners India announced the close of its third fund with a committed capital of over US$300 million. It since participated in funding rounds for fintech firms Ziploan, which provides microloans to small and medium-sized enterprises, and lending platform Avail Finance, among others.

It also led a US$10 million round for Indian milk delivery startup Country Delight earlier this year.