DealShare mops up $144 Mn in Series D round led by Tiger at $455 Mn valuation

Grocery and essentials focused social commerce startup DealShare has raised $144 million in a new round led by Tiger Global. Existing investors including WestBridge Capital, Alpha Wave Incubation, Z3Partners, partners of DST Global, Matrix Partners India, and Alteria Capital also returned to back DealShare.

This is the third funding round for the Bengaluru-based company. According to DealShare, it has been valued at $455 million (post-money) in this round and its valuation has jumped 9X in the last seven months. With the new proceeds, the company has raised $183 million in total funding until now.

Entrackr was first to report about Tiger Global leading over a $100 million new round in DealShare on April 13. The partners of Tiger Global -- Scott Shleifer and Chase Coleman -- also invested in DealShare in their personal capacity. Importantly, they also backed the company’s competitor CityMall as well. 

DealShare leverages resellers and communities to sell groceries and FMCG products across 40 cities of five states including Delhi-NCR, Karnataka and Maharashtra.

Unlike Meesho, the posterboy of social commerce space, DealShare is an inventory-led platform that manages the supply chains and logistics in bigger cities. At present, DealShare has 20 warehouses across 5 states and it plans to have 200 warehouses by the end of 2021.

“We do about 2 million orders a month with an average basket size of Rs 1,000-1,200,” said Sourjyendu Medda, founder of DealShare, to Entrackr. “As of now, we have serviced more than 3 million consumers and over 20 million orders. We are confident of hitting a $1 billion GMV run rate this year.”

Significantly, DealShare was close to becoming profitable in FY20. According to Fintrackr, DealShare’s revenue had grown over 18X in FY20 to Rs 58.71 crore from Rs 2.96 crore in FY19. Its total expenses stood at Rs 58.75 crore in FY20 with a negligible loss of Rs 4.3 lakh.

Currently, the company doesn’t have strong direct competition. To some extent, it competes with Gurugram-based CityMall that had recently nabbed $22.5 million in a new round led by General Atlantic. Entrackr was first to report about its Series B on May 21.

Avendus acted as the exclusive financial advisor to DealShare on this transaction.