Amazon acquires India’s GlowRoad in a social commerce boost TechCrunch
Amazon can be try to take on Shopify in the West, but in India, it is preparing to explore social commerce.
Amazon has acquired Indian social commerce startup GlowRoad in an all-cash deal as the e-commerce giant pushes further into one of its key overseas markets, a source close to the matter told TechCrunch.
In a statement, an Amazon spokesperson confirmed the acquisition, saying the move will help the company fulfill its commitment to digitize the nation’s 10 million businesses by 2025.
American giants, yes invested more than $6.5 billion in its operations in Indiaadds: “Amazon continues to explore new ways to digitize India and delight customers, micro-entrepreneurs and merchants, and bringing GlowRoad to the website is an important step in this direction. ”
“Together with GlowRoad, Amazon will help fuel the entrepreneurship of millions of creators, homemakers, students, and small sellers across the country. This acquisition will complement GlowRoad’s already-loved service with Amazon’s technology, infrastructure, and digital payments, making it more efficient and cost-effective for everyone. ”
GlowRoad sells products to customers at wholesale prices and helps them resell them on Facebook and WhatsApp. It also gives them the logistics network (to help deliver the product) and the ability to collect cash. On its website, the startup says it has built a network of more than 6 million resellers who earn an average of 35,000 Indian rupees ($460) per month.
Earlier this month, GlowRoad said it would expand to several markets in Southeast Asia.
“GlowRoad is committed to creating more ‘home businesses’ and bringing more unique and unbranded vendors to the platform. Even after 4 years, we are still in the infancy and there is a lot of work to do,” said co-founder Shekhar Sahu.
The four-year-old start-upthat we wrote about twice beforecounts Accel, CDH, Vertex and Korea Investment Partners among backers, and has raised about $32 million in prior investments, according to data intelligence platform Tracxn.
TechCrunch could not determine how much Amazon is paying for the acquisition, but the source said GlowRoad employees will be joining the e-commerce giant. The source requested anonymity because the matter has not been made public.
Amazon declined to disclose the financial terms of the deal.
Amazon’s experiment with social commerce comes at a time when its main rival, Walmart-owned Flipkart, is actively promoting its own social commerce offering, called Shopsy, in the country this. According to industry estimates, several startups including SoftBank and Facebook-backed Meesho, Alpha Wave Global, and Tiger Global-backed Dealshare Tiger Global are also active in social commerce and have large market shares. than Shopsy.
Last year, YouTube also promoted social commerce in India by buy back Simsim with good capital supportTechCrunch first reported.