WhatsApp, the world’s most popular messaging app, has announced a $100 million investment in Indian e-commerce start-up DealShare. The deal is expected to boost the growth of e-commerce in India, which is already one of the fastest-growing markets in the world. This article will explore the details of the deal, its potential impact on the Indian e-commerce market, and what it means for WhatsApp’s future.
The Details of the Deal
DealShare is a social commerce platform that allows users to buy products at discounted prices by sharing them with their friends and family. The start-up was founded in 2018 by Vineet Rao, Sankar Bora, Sourjyendu Medda, Rishav Dev, and Rajat Shikhar. It currently operates in 25 cities across India and has over 10 million registered users.
Under the terms of the deal, WhatsApp will invest $100 million in DealShare in a Series D funding round. The investment will be led by Facebook, which owns WhatsApp. Other investors include Alpha Wave Incubation, a venture fund managed by Falcon Edge Capital, and existing investors Matrix Partners India and Omidyar Network India.
The investment will help DealShare expand its operations and reach more customers in India. The start-up plans to use the funds to hire more employees, improve its technology platform, and expand into new cities.
The Potential Impact on the Indian E-commerce Market
The Indian e-commerce market is already one of the fastest-growing in the world, with an estimated value of $38.5 billion in 2017. However, it is still relatively small compared to other markets such as China and the United States.
The DealShare investment could help boost the growth of e-commerce in India by making it more accessible to a wider range of consumers. Social commerce platforms like DealShare allow users to buy products at discounted prices by sharing them with their friends and family. This makes it easier for people who may not have access to traditional e-commerce platforms to buy products online.
The investment could also help WhatsApp expand its presence in India. WhatsApp is already the most popular messaging app in the country, with over 400 million users. By partnering with a successful Indian start-up like DealShare, WhatsApp can further cement its position as a key player in the Indian market.
What It Means for WhatsApp’s Future
The DealShare investment is just the latest move by WhatsApp to expand its business beyond messaging. In recent years, the company has launched a number of new features, including WhatsApp Pay, a digital payments service that allows users to send and receive money through the app.
WhatsApp’s parent company, Facebook, has also been investing heavily in India. In 2020, Facebook invested $5.7 billion in Indian telecoms giant Reliance Jio, which has over 400 million subscribers. The investment was seen as a way for Facebook to expand its reach in India and tap into the country’s growing digital economy.
The DealShare investment could be a sign that WhatsApp is looking to further diversify its business and expand into new areas. Social commerce is a rapidly growing market, and WhatsApp’s investment in DealShare could be a way for the company to tap into this trend.
WhatsApp’s $100 million investment in DealShare is a significant move for both companies and could have a major impact on the Indian e-commerce market. The investment will help DealShare expand its operations and reach more customers, while also boosting WhatsApp’s presence in India. The deal is just the latest example of WhatsApp’s efforts to diversify its business and expand into new areas beyond messaging. As social commerce continues to grow in popularity, it will be interesting to see how WhatsApp and other companies adapt to this trend.