SUMMARY
ChattyBao has raised over $5 Mn in its seed funding round led by Vertex Ventures Southeast Asia & India and Info Edge Ventures
7Square Ventures and a slew of angel investors also participated in the funding round
ChattyBao will deploy funds for product development and launch its app in two to three Tier-1 and 2 cities
Delhi-based hyperlocal startup ChattyBao has raised over $5 Mn in its seed funding round led by Vertex Ventures Southeast Asia & India and Info Edge Ventures.
7Square Ventures and a slew of angel investors also participated in the funding round.
ChattyBao will use the funds for product development and launch its app in two to three Tier-1 and 2 cities.
“Small merchants and service providers are the backbone of the retail industry in India. ChattyBao can strengthen their value proposition further, and become a catalyst in enabling more customers to come online and transact with the same comfort they already experience in WhatsApp conversations,” said Kanika Mayar, partner at Vertex Ventures Southeast Asia & India.
Founded in October 2021 by Kumar Aditya and Varun Gupta, ChattyBao is an online platform that connects consumers with local businesses or merchants. The startup is presently in stealth mode and its app will be launched in the third week of August this year.
ChattyBao plans to offer a complete shopping experience to customers over WhatsApp. It has whitelisted its number on WhatsApp, which can be used by consumers to discover local businesses around them, chat with those business owners (including offline tailors, vegetable vendors, pharmacies etc), order products from them, make online payments and at last, get home delivery. In a nutshell, ChattyBao is a platform where consumers will get products and services from local businesses.
“Users don’t need to download any app. We are going to connect merchants around them. For merchants, there is an app that helps them process orders whilst for users, we have tried to eliminate the learning curve and have built features within WhatsApp that connect them with shopkeepers,” Aditya explained.
The founding team carries enriching experience in building different business verticals. For example, Aditya earlier worked with Paytm as the chief business officer while Gupta was the former director of B Capital Group.
“ChattyBao will significantly enhance their ability to provide an e-commerce experience to their users, helping them compete effectively with online players,” said Aditya.
In the hyperlocal segment, it competes with the likes of Zepto, BigBasket and Milkbasket, among others.
According to a report, India’s hyperlocal services market, which was pegged at $1.4 Bn in 2021, is likely to touch a $4.6 Bn mark by 2026, growing at a CAGR of 19.6% during 2022 – 2027.
