Dukaan, a one-year Bangalore-based startup that enables merchants to set up online stores and sell products digitally, said on Monday that it has raised $ 11 million in a new round of funding as it seeks to expand its offerings and go deeper. the footprints in the South Asian Market.
The new round of funding, a Pre-Series A, was led by 640 Oxford Ventures, based in New York. Venture Catalyst, HOF Capital, Old Well Ventures, LetsVenture, 9Unicorns and existing investors, including Lightspeed Partners and Leopard Ventures, also participated in the new round.
Oyo’s Ritesh Agarwal and Noting’s Carl Pei also invested in the new round, said the startup, which has raised more than $ 17 million to date.
Dukaan provides people with no-code tools to set up digital presence. Once they have set up the store, they can manually add the inventory they have and start selling to their customers.
The process is simple and fast. “First verify your email address or phone number and then type in the name of your business or store. And that is. Their digital store has been created, ”said Suumit Shah, Dukaan co-founder and CEO, in an interview with TechCrunch.
For merchants operating in the grocery space, Dukaan also allows them to take pictures of their inventory and automatically posts them to the digital store. The startup also helps merchants accept digital payments.
Dukaan is taking full advantage of India’s huge neighborhood market. More than 100 million Indians work in what is locally more popular as kiranas. These stores, in many cases, have been in operation for decades.
In recent years, dozens of companies, including Reliance, Amazon, and Flipkart, have tried to disrupt its business, with little to no success. In fact, most of these companies are increasingly exploring ways to interact with these merchants.
But the way Dukaan has been developed, it can also be used by restaurants trying to connect or teachers looking to establish their digital presence.
“All these digital stores, by default, get a mydukaan.io website, which they distribute to their customers and friends. This has helped our startup gain more recognition in the market, ”said Shah.
The startup’s eponymous offering charges individuals or businesses as little as 699 Indian rupees, or $ 9.5, per year for its services. It also offers some premium plans like Dukaan Infinity, as part of which it helps companies to do marketing on Facebook and Google and helps them rank better in Google search, and Dukaan Enterprise for large companies.
The Big Bazaar retail chain and the German personal care brand Nivea are customers of Dukaan Enterprise. “In the case of Nivea, they have dozens of distributors throughout the country. Now they are getting their distributors to sell the vast majority of their inventories to stores through Dukaan to bring more efficiency to the system, ”he said.
“There is a huge white space opportunity to serve the business needs of India’s over 100 million small businesses and the Dukaan team, with its strong product orientation and deep understanding of the small business user, is in an ideal position to lead the creation of new categories of commercial companies in India, “said Akshay Bhushan, partner of Lightspeed, in a statement.
This is a developing story. More to follow …