Social media’s huge popularity has unlocked a new of ‘usage’ which is far beyond the conversations and sharing of pictures and contemplations. As per industry data, 390.9 million people accessed the internet through their mobile phone in 2018. This figure is expected to cross 500.9 million mark by 2023. Industry data also reveal that By 2022, India is expected to have 442 million Smartphone users from current 374 million.
Owing to these outstanding figures social media is constantly emerging as preferred channel for shopping. Therefore, this space is generating a lot from start-up community as well as VC communities. Let’s learn more
What is Social Commerce? And, why it is so powerful?
It is essentially a C2C Internet business where transacting parties are two individuals. A typical e-commerce transaction occurs between an individual and the marketplace. Social commerce is emerging as the great tools for brands to engage to vernacular audience (non-English speaking) who consume social connect. Therefore, brands which so far use social media platforms to engage consumers and interact with them and they can now also be used for selling products, this has helped the platform to strengthen the hold on the market.
The entire transaction works out in following scheme of things..
- Brands/companies list out their catalogue/products on their sites/app and it open for commission (to be earned by reseller/social commerce).
- To invite resellers, they run ads on social media and Google.
- Reseller use their social networks- Facebook, WhatsApp, etc,- to reach out to the customers with the catalogue.
- Reseller puts an order request to company against every purchase made through his/her network.
- Company delivers the product directly to buyer and with an option to made payment via digital medium.
- This is win-win situation for both. As it gives brand a wider reach and in return reseller makes money (commission) on every transaction from the comfort of home.
- Such platforms re-engaging the user who has stopped using the internet and by making it attractive its combines live videos, social gaming, social content, voice, and messaging.
VCs Finding Their Muse in Social Start-up..
Social lad platforms are gaining popularity over search led platforms such as Flipkart, Amazon amongst others as far as VC traction is concerned. Although, it is relatively a new segment, but already becoming hot favorite among investors. Let’s shed light on few start-ups which have acquired funds..
Founded in 2018 by Sachin Bhatia, Atit Jain and Sichen (Sianna) Liu, BulBul is a vernacular live streaming ecommerce platform.Bhatia is ex-CEO TrulyMadly Co-founder & Ex-CMO MakeMyTrip.com. Leo Capital, Surge, Sequoia India are existing investors and advisors for the company. As per media reports, BulBul is raising an INR 105 Cr ($14.7 Mn) funding round.
Amit Bagaria, Kunal Suri and Saurabh Vashishtha are other co-founders of simsim. While Bagaria and Vashishtha were Senior Vice President with Paytm, Suri was erstwhile MD and COO of Foodpanda. According to media resources, this year SimSim has closed about $1.5 million from several well-known angles including executives of Flipkart and Mckinsey.
Social commerce startup Mall91 raises $7.5 million led by Go-Ventures in the month of October this year from Go-Ventures and participation by Beenext, Kalaari Capital, AngelList India. Mall91 is a vernacular social commerce platform built specifically for the next 400M users coming online. Founded in 2018, the company is helping the tier 3 and tier 4 people by bringing interactive user face and creating a hassle-free shopping experience.
Mumbai-based, Gizmobaba, a niche homegrown curated products crossborder social eCommerce platform has been shortlisted by Venture Gurukool for the 3rd Startup Investment roadshow to be held in China at Shenzhen, Shanghai and Beijing. Venture Gurukool, an early stage investor and incubator has shortlisted 12 Indian startups to represent India at the 6-day Summit that is being organized in partnership with The Indian Embassy, Beijing and The Consulate General of India in Shanghai and the Consulate General of India in Shenzhen.
Pesopie is a entertainment cum fashion Social E-commerce platform that provides an amazing and seamless shopping experience to its users. Founded in 2019, founded by Sanket Agarwal, Pesopie is all set to raise $2.5 million seed funding. The company has already raised $ 300, 000 from an International investor before it’s launch. The launch is scheduled for Mid of December 2019. The round was led by Ms. Yana Korshunova from Moscow based Angel Investor.