Dukaan, a digital platform of e-commerce, has recently raised $11 million under its Pre Series A round of funding, operated by 640 Oxford Ventures. This round of funding witnessed active participation by its investors including Matrix Partners India, Snow Leopard Ventures, and Lightspeed Partners.
New Business entities comprising LetsVenture, Old Well Ventures, and HOF Capital took part in raising funds. Furthermore, angel investors including OYO’s Ritesh Agarwal, and Nothing’s Carl Pei also contributed to the company’s fund.
The company is sketching out its plans of utilizing the funds in the company’s digital growth, thereby helping its users to have a better experience in availing the services.
Suumit Shah, Chief Executive Officer(CEO) and one of the founders of Dukaan, shared his words regarding this new investment, “This new investment allows us to aggressively expand our operations while building our team of highly skilled designers and developers. Additionally, this capital accelerates our ability to establish key strategic partnerships to grow our paying merchant base. We started with our monetization journey on a small merchant base last quarter, and more than 2000 merchants have enrolled in our Dukaan premium subscription plan so far.” “Premium subscription is just one of the revenue streams, which contributes roughly 10% to our revenues,” added Suumit Shah.
Highlighting the team’s uniqueness, 640 Oxford Ventures says, “Suumit and team have demonstrated a unique ability to understand what SMBs need to be successful digitally and then ship product at incredible velocity to solve those pain points. This round of funding will further enable Dukaan to build meaningful products.”
“There is a massive white space opportunity to service the commerce needs of India’s 100 million small businesses and the Dukaan team with its strong product orientation and deep knowledge of the small business user is ideally positioned to lead the creation of the new categories of commerce businesses in India,” stated Akshay Bhushan, Lightspeed Venture Partner.
Dukaan’s Overview
Dukaan is an online platform that allows its users to establish their own e-commerce store where they can buy and sell products over the internet. It assists retailers, local businessmen, vendors, merchants, and other small businesses to create manage and market their businesses digitally. It most efficiently provides its services through an online app called Dukaan App. Founded last year, Dukaan has successfully created more than 2 million stores online. The company has crossed over 3.5 million small and medium-sized businesses as its users. Its competitors include Sequoia, Khatabook, Lightspeed, and OkCredit. Covering 2000 cities, the Dukaan app is contributing magnificently to the e-commerce space in India’s digital ecosystem.
