- Amazon India on Friday announced the acquisition of GlowRoad, a women-focused social commerce company.
- Reports from the media suggested that GlowRoad was valued at $75 million for this deal.
- According to Amazon, the move will help the company to achieve its goal of digitizing 10 million businesses by 2025.
Amazon India on Friday announced the acquisition of GlowRoad, a women-focused social commerce company. It is the first investment eCommerce giant Amazon has made to grow its social commerce business in India. Reports from the media suggested that GlowRoad was valued at $75 million for this deal. Though the transactional details of the acquisition have not been disclosed. The report by TechCrunch and Economic Times suggests that Amazon acquired the company in an all-cash deal.
According to Amazon, the move will help the company to achieve its goal of digitizing 10 million businesses by 2025.
In an interview with a business news agency, the Amazon spokesperson told “Amazon is continuing to seek out new ways to digitise India and delight customers, micro-entrepreneurs and sellers, and bringing GlowRoad on board is a key step in that direction.GlowRoad will help Amazon accelerate entrepreneurship among millions of creators, homemakers, students, and small sellers across the nation. With this acquisition, GlowRoad’s already loved service will be enhanced with Amazon’s technology, infrastructure, and digital payment capabilities, bringing more efficiency and cost savings to everyone”.
GlowRoad was founded by Sonal Verma, Kunal Sinha, Nitesh Pant, Shekhar Sahu and Nilesh Padariya in 2017. Collectively, the founders of the company owned close to 50% of the company. Founder members Sonal Verma and Kunal Sinha owned a relatively larger share among the other founders.
As of today, the company has raised more than $31 million from investors like Korea Investment Partners, Vertex Ventures, CDH Investments and RB Investments. According to the business intelligence platform Tracxn, the largest shareholder in the company is Accel, with a nearly 19% stake. In November 2020, the startup raised its last round of funding, raising $7 million.
GlowRoad is a social commerce network that enables suppliers to sell their products to end customers via resellers across more than 20,000 pin codes in 2,000 cities. It targets Tier II and III markets through resellers, who are typically housewives, temporary workers or students.
As per the website of the company, a reseller can make up to ₹20,000 per month if they sell close to 100 products a month. It claims to have over 6 million resellers on the platform.
In beginning, Meesho was a competitor of the company, but the company changed its business model to a full-fledged eCommerce platform. Competition comes from DealShare, CityMall, and YouTube-owned SimSim.