Tiger Global Considering Investment in DealShare

Tiger Global is reportedly in discussions to invest in DealShare, an Indian startup focused on e-commerce for consumers with middle and lower incomes. This potential investment arrives only three months following DealShare’s completion of a $21 million Series C funding round.

Series D Funding Round Details

According to sources familiar with the matter, the New York-based firm is planning to spearhead a $100 million Series D funding round for the three-year-old social commerce startup. While the round is not yet finalized, the total investment amount—inclusive of debt financing—may potentially increase. Tiger Global declined to provide a comment, and a request for comment sent to a founder of the Indian startup on Sunday went unanswered.

Reports from the Indian news source Entrackr indicated on Monday evening that DealShare was exploring a funding raise between $70 million and $100 million.

DealShare's Origins and Market Opportunity

DealShare’s inception coincided with Walmart’s acquisition of Flipkart, as stated by the startup’s founder and CEO, Vineet Rao, during a virtual conference last year. Rao highlighted that despite the success of Amazon and Flipkart in urban Indian markets, a significant portion of the country remained underserved.

He identified a clear opportunity for a new entrant to address this gap in the market.

Evolution of the Business Model

Initially, the startup operated as an e-commerce platform on WhatsApp, offering a wide range of products to consumers. It quickly became apparent that consumers primarily sought products available at discounted prices, as noted by Rao.

This observation subsequently became central to DealShare’s core business strategy. The company now incentivizes customers to share product deals with their network of friends in exchange for discounts and cashback rewards. Having since launched its own dedicated app and website, DealShare currently operates in over two dozen cities throughout India.

Focus on Local Products

Consumers expressed a preference for products tailored to their needs and offered at prices that maximized value, according to Rao. “We prioritized locally manufactured goods over national brands. Currently, 80% to 90% of our sales consist of locally produced items,” he explained.

India's Retail Landscape and Social Commerce

With Amazon and Flipkart collectively holding less than 3% of the Indian retail market, opportunities exist for alternative business models. Social commerce represents one such avenue being actively explored in India. Another growing trend involves the digitization of local retail stores across India’s numerous towns, cities, and villages, though this approach typically lacks the social component.

Tiger Global's Investment Activity in India

This potential investment in DealShare aligns with Tiger Global’s plans to finalize over two dozen deals in India this year, as reported by TechCrunch on Monday. Having recently closed a $6.7 billion fund, Tiger Global recently led investment rounds in ShareChat, Gupshup, and Groww, and also participated in CRED’s funding round, contributing to all of these startups achieving unicorn status.

Growth of Social Commerce Unicorns

Meesho, a leading social commerce platform in India, also achieved unicorn status last week following a $300 million investment led by SoftBank, resulting in a valuation of $2.1 billion.

DealShare's Existing Investors

DealShare’s current investors include WestBridge, Falcon Edge Capital’s Alpha Wave, Z3Partners, and Omidyar Network.

This article has been updated to include further details.