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Amazon acquires India’s GlowRoad in social commerce push

Amazon could also be trying to tackle Shopify within the west, however in India, it’s gearing as much as discover social commerce.

Amazon has acquired the Indian social commerce startup GlowRoad in an all-cash deal because the e-commerce big makes a much bigger push into one in every of its key abroad markets, a supply straight conversant in the matter instructed TechCrunch.

In an announcement, an Amazon spokesperson confirmed the acquisition, saying the transfer will assist the corporate make inroads with its dedication to digitizing the nation’s 10 million companies by 2025.

The American big, which has invested over $6.5 billion in its India operations, added: “Amazon continues to discover new methods to digitize India and delight prospects, micro- entrepreneurs and sellers and bringing GlowRoad onboard is a key step on this course.”

“Along with GlowRoad, Amazon will assist speed up entrepreneurship amongst hundreds of thousands of creators, homemakers, college students, and small sellers from throughout the nation. This acquisition will complement GlowRoad’s already liked service with Amazon’s expertise, infrastructure, and digital funds capabilities, bringing extra effectivity and cost-saving for everybody.”

GlowRoad sells merchandise to prospects at wholesale costs and helps them resell it on Fb and WhatsApp. It additionally supplies them with logistics community (to assist ship the product) and the power to gather money. On its web site, the startup says it has constructed a community of over 6 million resellers who earn on a mean of 35,000 Indian rupees ($460) per 30 days.

Earlier this month, GlowRoad mentioned it’ll develop to some markets within the Southeast Asia area.

“GlowRoad is dedicated to creating extra ‘homepreneurs’ and bringing many distinctive and unbranded suppliers to the platform. Even after 4 years, we have now simply scratched the floor, and there’s a lot extra to do,” mentioned co-founder Shekhar Sahu.

The four-year-old startup, which we have now written about twice beforehand, counts Accel, CDH, Vertex and Korea Funding Companions amongst its backers and had raised about $32 million in earlier investments, in keeping with information intelligence platform Tracxn.

TechCrunch couldn’t decide the quantity Amazon is paying for the acquisition, however the supply mentioned that GlowRoad’s staff will be a part of the e-commerce big. The supply requested anonymity because the matter just isn’t public but.

Amazon declined to reveal the monetary phrases of the deal.

Amazon’s experimentation with social commerce comes at a time when its chief rival, Walmart-owned Flipkart, is aggressively gearing up its personal social commerce providing, known as Shopsy, within the nation. A handful of startups together with SoftBank and Fb-backed Meesho and Alpha Wave World and Tiger World-backed Dealshare additionally function within the social commerce house and revel in a bigger market share than that of Shopsy, in keeping with business estimates.

Final 12 months, YouTube additionally made a push into social commerce in India by buying Good Capital-backed Simsim, TechCrunch first reported.

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