Tiger Global & Falcon Edge to Invest More in Dealshare

Investment Surge for DealShare

Tiger Global and Falcon Edge Capital are reportedly preparing to increase their investments in DealShare. This move signifies growing confidence in India’s expanding social commerce sector.

Advanced Funding Discussions

Sources indicate that both firms, already investors in the Jaipur-based startup (AWI, managed by Falcon, was an early backer), are in advanced negotiations. They aim to jointly lead a financing round exceeding $225 million for DealShare.

Valuation and Share Sales

The potential valuation for DealShare is estimated to surpass $1.7 billion, according to three individuals with knowledge of the discussions. These sources requested anonymity due to the confidential nature of the talks.

It is anticipated that early investors and founders may sell up to $60 million worth of shares during this round. DealShare’s previous valuation stood at $455 million (post-money) following its Series D funding three months prior, after raising $183 million in prior rounds.

Investor Responses

DealShare and one of its co-founders have not yet responded to requests for comment. Tiger Global also declined to provide a statement.

Preliminary discussions were also held with Coatue Management, as reported by a source familiar with the matter. Coatue Management did not offer any comment.

Growth of Social Commerce in India

These investment talks coincide with the rapid growth of social commerce within India, the world’s second-largest internet market. Other Indian social commerce companies, such as Meesho, have recently secured significant funding.

Meesho recently obtained $570 million in funding and is reportedly in discussions with Google to raise over $50 million. Flipkart, a leading e-commerce platform in India, has also entered the social commerce arena, aiming to engage over 25 million merchants by next year.

Reaching Underserved Markets

While Amazon and Flipkart have established a strong presence in urban India, a substantial portion of the country remains underserved. DealShare, initially launched as an e-commerce platform on WhatsApp, focuses on reaching consumers in smaller cities and towns.

The company facilitates group purchases of curated items, offering affordability through competitive pricing. DealShare reports an average cart size of $16 to $19.

Unique Shopping Experience

DealShare aims to provide a shopping experience that is both accessible and engaging for new internet users. They offer affordable essentials alongside a gamified, vernacular shopping platform.

Executives have emphasized that their community purchasing model enables cost-effective delivery and strong unit economics.

Expansion of Private Label Brands

DealShare has been actively expanding its range of private label products, including staples like rice and pulses, according to a source familiar with the company’s strategy.