Matrix-backed DealShare raises $45M from ADIA

• DealShare previously announced $165M of funding in Series E from Tiger Global, Alpha Wave Global, Dragoneer Investments Group, Kora Capital, Unilever Ventures
• The company has till date raised $393M
• The funds will be used to strengthen technology and product innovations to offer seamless service to its customers

17th February 2022. Bengaluru: Fast-growing social e-commerce start-up DealShare announced today that it has raised another $45M as part of its series E funding round from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) which takes the company's total funding to $393M. The company will use the funds from its Series E funding round to power product innovation and technology to support its rapid growth and expanding customer base. Matrix Partners India which co-led the Seed and Series A rounds along with Falcon Edge continues to stay invested.

DealShare is a rapidly growing social commerce company focused on catering to the 500Mn new-to-internet and value-seeking users. It offers high-quality, low-priced essentials coupled with a gamified, fun-filled, and virality-driven shopping experience, making it easy for first-time internet users to experience online shopping.

Commenting on the fresh round of fundraising, Vineet Rao, Founder & CEO of DealShare, said, "We are thrilled to welcome ADIA as a shareholder as part of our next phase of growth. The support that we have been receiving from the investor community is very encouraging. It is a testimony of the confidence in DealShare's vision, business model, and an acknowledgement of the growth we have been exhibiting. In a span of just 3 years, we have scaled to over 10 million customers and over 100 cities across 10 states.'

"We will be utilizing the funds from our Series E round to strengthen our customer base and technology capabilities. We aim to democratize online shopping for Bharat users with unmatched service and experience by developing innovative products and tech solutions. This will be supported by building our teams across the country and hiring new tech talent at all levels,' added Vineet Rao.

Talking about the business model transcending geographies, Mr Rao added "There is an immense opportunity for our business outside India as well, and we would be exploring international expansion in the coming years.'

Hamad Shahwan Al Dhaheri, Executive Director of the Private Equities Department at ADIA, said: "India's e-commerce ecosystem is developing rapidly, and DealShare is addressing an underserved and growing segment within it. This investment aligns with our approach of backing innovative businesses with differentiated business models to execute on their growth strategies.'

Sharing his views on the fundraising and the growth plans, Mr. Sourjyendu Medda, Founder and Chief Business Officer, said, "DealShare is arguably the fastest growing e-commerce company in India. We are in touching distance of hitting $1B of gross revenue run rate with just 3 years in operation. We are likely to hit $3B of gross revenue run rate in the next 12 months. We will be tripling our geographical presence, investing heavily in acquiring top-notch tech talent, and building world-class supply chain infrastructure to aid this growth along with a continued focus on capital efficiency and path to profitability. We are targeting operational profitability by the end of this year.'

Tarun Davda, Managing Director, Matrix India remarked, "It has been a privilege to be early partners with Vineet, Medda and the entire DealShare team right from the seed-stage. DealShare has seen explosive growth over the past 12 months as more & more Tier 2/3 consumers embrace online grocery shopping. We are excited about the next phase of the company's journey and wish them the best as they seek to transform the e-commerce landscape with their unique Made-For-Bharat business model.'

Founded by Vineet Rao, Sourjyendu Medda, Sankar Bora, and Rajat Shikhar in 2018, DealShare provides a sharp and curated assortment at highly competitive prices and has built an innovative community leader driven ultra-low-cost delivery mechanism, collectively leading to best-in-class unit economics.

In January 2022, DealShare raised $165M in the first close of its Series E fundraise. The company welcomed Dragoneer Investments Group, Kora Capital, Unilever Ventures, and continued commitments from its existing commitments investors, Tiger Global and Alpha Wave Global (Falcon Edge).

About DealShare:
DealShare is a disruptive e-commerce model built towards re-inventing e-retail for the next billion internet users. Currently, DealShare is present in 100+ cities across 10 states, and it plans to expand to 200+ cities across 20 states in 2022. The company has acquired more than 10 million consumers and adds lacs of new consumers every month. DealShare caters to about 4 lakh orders daily. Since its inception, the company's focus has been to procure products from local manufacturers and provide them with a platform to digitize their business and scale their local brands. At present, DealShare has partnered with over 1,000 local and regional brands and sources its products directly from the manufacturers. For more information, visit: https://www.dealshare.in

About Matrix Partners India:
Matrix Partners India is an investment firm with approximately $1 billion under management. Founded in 2006, the firm invests in companies targeting the Indian consumer and enterprise market at the seed, early, and early growth stages. Matrix India has invested in several market-leading companies such as Ola (mobility), Dailyhunt (mobile local language platform), Razorpay (payments), OfBusiness (B2B Commerce, fintech), Five Star Business Finance (SME lending), Ola Electric (electric vehicles), Stanza Living (tech-enabled student housing platform), OneCard (mobile-first credit card), Country Delight (D2C dairy & fresh foods brand), GoKwik (e-commerce enablement platform), Captain Fresh (seafood marketplace), Bijnis (B2B platform for factories), MoEngage (intelligent marketing cloud platform), Mswipe (mobile POS), and Zupee (leading skill-based gaming app) among others. Matrix India has advisory offices in Bangalore, Delhi, and Mumbai. Matrix Partners has a global network of funds investing in the US, China, and India, with approximately $5 billion under management. Further information is available at www.matrixpartners.in. To know more about our investment philosophy & ideologies, check out the #MatrixMoments podcast series.