WhatsApp integrated merchant e-commerce platform Bikayi is all set to raise a fresh round from new and existing investors, said three people aware of the deal.
This will be another investment in the fledgling e-commerce enablement space after Dot, which had raised a $27.5 million round in March. Dukaan and Khatabook, who also operate in the same space, are also in talks to raise fresh rounds.
“Bikayi is raising $10-11 million led by Sequoia Capital,” said one of the sources requesting anonymity as talks are yet to be public. “The term sheet has been signed and the deal is almost done.”
Bikayi had raised $2 million in its seed round from Mantis Ventures, Y Combinator and Pioneer Fund. The two-year-old startup, founded by Sonakshi Nathani and Ashutosh Singla, was a part of Y-Combinator’s Summer Batch of 2020.
“Pioneer Fund along with other investors will also participate in the round. Bikayi is likely to be valued at around $45 million in the Series A round,” said the second source.
Queries sent to Bikayi, Sequoia and Pioneer Fund did not elicit any immediate response. We’ll update the post in case they do.
The Hyderabad-based startup provides a digital storefront and features including catalog, shipping, payments for grocery stores, wholesalers, manufacturers and retailers to manage e-commerce via WhatsApp. According to the company’s website, more than 10 lakh businesses have utilised its free and paid features.
The company’s subscription plans range from Rs 417 to Rs 833 per month.
Dukaan and Khatabook were the initial competitors to Bikayi in the e-commerce enablement segment, however, the ‘digital dukaan’ space now has increased competition with the entry of Lightspeed-backed OkShop (by OkCredit) and Digital Showroom by Dot.
While Bikayi is the only player in the space which is currently monetising through subscriptions, most others struggle to retain merchants and drive transactions for them. According to experts, they require an integrated ecosystem consisting of the supply chain, logistics and customer management.