Singapore-headquartered social ecommerce startup Shopmatic has come out of a silent phase of growing its business over the last few years. With offices in India, Shopmatic has now claimed that it has recorded 174% revenue growth in April-June quarter.
The company is now looking to leverage the customer base of over 120K customers and raise a $30 Mn Series B funding round. The fresh funds will help the company expand its business and enable the online success of aspiring entrepreneurs, hobbyists, craftsperson, and small merchants.
The company recently closed its Series A funding at $7.45 Mn (SGD 10.1 Mn), $5.7 Mn of which was raised in 2017. Till date, the company has raised $14.75 Mn (SGD 20 Mn).The company is also betting on the performance where it recorded 160% transaction growth in the quarter.
Founded in 2014 by Yen Ti Lim, Anurag Avula, and Kris Chen, Shopmatic provides sellers with an entire ecosystem of selling online for their customers. From a domain name to easy integrations with domestic and international payment gateways and shipping partners, to getting discovered via a unique, curated platform Shopmatic World to POS, Inventory Management and CRM solutions, Shopmatic helps business owners manage the full spectrum of what is required to grow their business.
The company claims that it is helping SMEs and aspiring entrepreneurs at only INR 50 for 1 year. It also aligned the pricing model with the online success of customers, charging only 3% as transaction fees following a successful sale.
Anurag Avula, cofounder & CEO, Shopmatic, said “We shall continue to disrupt the status quo with our customer-first approach and are looking to raise 30 Mn for venturing into newer markets while strengthening our foothold in the national and international markets where we are currently present. Going by the current trends, we are on the right track to bring more than 500K merchants online by the end of this year.”
India’s e-commerce market is expected to be worth $220 Bn by 2025 and the market is seeing disruption due to government policies with the draft ecommerce policy in works and recent changes in the FDI policy for ecommerce. Shopmatic competes with the likes of GlowRoad, Meesho, Shop101 and others.
According to Google and Boston Consulting Group, India has about 50 Mn registered small businesses and at present, about one million of them are online, mostly selling through Facebook and WhatsApp. It is expected that 10 Mn of these businesses will be online by 2020. A 2017 Zinnov Report further stated that online resellers space has been projected to grow to $48 Bn-$60 Bn by 2022.