Washington: Amazon has bought Indian social commerce firm GlowRoad in an all-cash deal, because the e-commerce big expands its presence in considered one of its core worldwide markets.
While it’s getting ready to research social commerce in India, the corporate is looking for to compete with Shopify within the West.
An Amazon spokesperson reportedly confirmed the GlowRoad acquisition, saying it would help the company meet its purpose of digitising the nation’s 10 million enterprises by 2025.
As reported by Tech Crunch, the American behemoth, which has poured over $6.5 billion into its actions in India, stated: “Amazon continues to discover new methods to digitise India and delight prospects, micro-entrepreneurs and sellers and bringing GlowRoad onboard is a key step on this course.”
The firm claimed that Amazon and GlowRoad will work collectively to assist hundreds of thousands of creators, homemakers, college students and small enterprise house owners across the nation develop into extra entrepreneurial.
It additionally famous that GlowRoad’s extremely fashionable service can be enhanced by Amazon’s know-how, infrastructure and digital cost capabilities, leading to elevated effectivity and price financial savings for everybody.
The Indian agency distributes merchandise to shoppers at wholesale prices and assists them in reselling them on social media platforms akin to Facebook and WhatsApp. It additionally provides them entry to a logistical community to help with product supply and the power to gather money.
GlowRoad claims to have established a community of over six million resellers, who earn a mean of Rs 35,000 monthly, in line with its web site. Earlier this month, it stated the corporate will increase into some Southeast Asian markets.
Co-founder Shekhar Sahu reportedly stated his organisation is devoted to fostering extra “homepreneurs” and introducing a various vary of distinctive and unbranded distributors to the platform.
“Even after 4 years, we now have simply scratched the floor, and there’s a lot extra to do,” he added.
According to knowledge analytics platform Tracxn, the four-year-old agency has raised round $32 million in earlier investments and counts Accel, CDH, Vertex, and Korea Investment Partners amongst its supporters.
However, relating to the acquisition, the quantity paid by the American big continues to be unknown, however in line with the report, it was understood that GlowRoad’s staff will be part of Amazon.
This information comes as Amazon’s rival in India, Walmart-owned Flipkart aggressively ramps up its personal social commerce platform, Shopsy, within the nation.
According to trade estimates, plenty of companies, like SoftBank and Facebook-backed Meesho and Alpha Wave Global, in addition to Tiger Global-backed Dealshare, function within the social commerce area and have a higher market share than Shopsy.