Indian social commerce app Kiko TV scores SOSV backing

Indian social commerce startup Kiko TV said it has raised an undisclosed amount of pre-series A funding in a round led by US-based VC firm SOSV.

The startup also said that the round was still open and that a few other investors are expected to participate. Kiko TV is also set to graduate from SOSV’s Mobile Only Accelerator shortly, it said in a statement.

The Kiko TV team / Photo credit: Kiko TV

Founded in August last year, Kiko TV offers an interactive entertainment video app that allows its users to shop online from sellers showcasing their products. It also gives influencers on the platform incentives such as commissions, according to its website.

India has close to half a billion internet users, with less than 10% making purchases online, said the company. It also claims that traditional ecommerce lacks instant buyer-seller interaction, a problem the company aims to solve through its platform.

“As the speed of internet available on all devices grows, and as the widespread use of 5G technology is becoming inevitable, live-video commerce will be the future of shopping,” said Kiko TV co-founder and CEO Shivam Varshney.

The company said it plans to use the new funds to speed up product development and gain more users.

Bain and Company and Sequoia Capital India shared in a recent report that social commerce is the “next frontier” for ecommerce in the country. They expect the industry to be worth as much as US$20 billion in 2025, up from just US$1.5 billion to US$2 billion from late last year.

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Another company looking to capitalize on this growth is ShopG, which recently announced the closure of its US$1.5 million seed round from VC funds Orios Venture Partners and RPSG Venture, as well as former Flipkart and Alibaba exec Prasanth Nair.