Ecommerce giant Amazon has acquired women focused social commerce startup GlowRoad reportedly at an undisclosed valuation. Social commerce is expected to be about a $70 billion market opportunity in the next few years, according to analysts.
The company said the acquisition will help it meet the commitment to digitise 10 million local Indian businesses by 2025. The acquisition would help Amazon to compete with Flipkart’s Shopsy platform, SoftBank-backed Meesho and other social commerce firms such as DealShare, BulBul, Mall91, and simsim. At present, Meesho derives 75 percent of its business directly from customers who come on its platform, while 25 percent comes from resellers.
Commenting on the acquisition, an Amazon spokesperson said, “Amazon continues to explore new ways to digitise India and delight customers, micro- entrepreneurs and sellers and bringing GlowRoad onboard is a key step in this direction. Together with GlowRoad, Amazon will help accelerate entrepreneurship among millions of creators, homemakers, students, and small sellers from across the country.”
“This acquisition will complement GlowRoad’s already loved service with Amazon’s technology, infrastructure, and digital payments capabilities, bringing more efficiency and cost-saving for everyone,” added the statement.
GlowRoad has raised about $32 million and counts Accel, Vertex Ventures, CHD Investments among its investors.
GlowRoad has over six million resellers and is present over 2,000 cities, according to the company website.
This move also comes at a time when Shopee has shut its India business within a few months after foraying into the country. Last month, Citymall also raised $75 million and claims to have grown over 30 percent month-on-month in the last 18 months.
India has been one of the biggest markets for e-commerce globally. More than 100 million of India’s estimated 572 million internet users purchase products online, with e-commerce swelling to a $30-billion industry in the fiscal year 2020, according to a report by Bain and Sequoia Capital.