DealShare: India’s Pinduoduo or an online DMart?

DealShare’s growth mostly has been in its core market—Rajasthan. With Tiger Global’s capital in the mix, DealShare now wants to expand fast. But in a diverse country like India, will DealShare be able to replicate its single-market playbook, taking on Reliance JioMart and DMart?

author-image

By 

Aditi Shrivastava

July 12, 2021

11 Min Read

Megha Jain is a homemaker, Laxman Mali a shopkeeper, and Vicky a student. They all reside in Jaipur and are members of various WhatsApp shopping groups run by DealShare. Jain uses the channel to buy for her family, Mali for his store, and Vicky for his own consumption. 

“My friends also buy from DealShare,” said Jain, who relies on Reliance JioMart and DMart for her monthly basket but every once in a while makes a few purchases on DealShare as well. “It has decent prices and sometimes good offers.”

Mali buys some staples for his store from DealShare, where, he says, he gets better bargains than in the free market.

It’s this mix of customer segments in small cities and towns, primarily in Rajasthan, that carried DealShare to $200 million in gross sales run rate in fiscal year 2020-21.

Last week, DealShare said it had raised $144 million from Tiger Global, WestBridge Capital, Alpha Wave Incubation and Z3Partners. Most of the new capital will go into expanding pan-India.

“The question is, can DealShare replace DMart and local stores, or does it just supplement them?” said an investor closely tracking the space. (Reliance JioMart and DMart are DealShare’s biggest competitors.)

For two months, The CapTable, seeking an answer to this, closely tracked a few WhatsApp groups created by the company to seed its products in Jaipur.

Where Does DealShare Stand?

n

DealShare’s targeting a sales run rate of $1 billion by the end of this financial year—a 5x jump over its FY 2021 gross sales.

In comparison, Avenue Supermarts, DMart’s parent company, recorded standalone revenue from operations of Rs 23,787 crore ($3.2 billion) for the year ended March 2021, and a net profit of Rs 1,165 crore ($160 million). In the first quarter ended in June, revenue was up 31% from a year ago at Rs 5,031 crore ($680 crore).

Why

Subscribe

Pricing

As a premium subscriber, you will get access to 3+ premium articles a week
Limited time offer
Launch price
INR
2,399
/ Year
INR 3,999
Save 40% with our launch offer.
Please apply the code at checkout.

copyCopy Code

Upgrade Now

Why

Subscribe

As a premium subscriber, you will get access to 3+ premium articles a week

Smart Information, Better Decisions

We report on the latest and most important developments in India’s biggest tech companies and also disruptive startups so you can make better decisions.

Seasoned Team

Tracking the highs and lows of India’s biggest internet companies over the past decade has given us access to the right decision-makers to interpret the latest state of play.

Inside View with Org Charts

Know the key decision-makers with Org Charts. We thrive on decoding boardroom conversations so we can bring you a 360° view of what's happening at India's high-growth companies.

Filtering the Noise

New economy companies cannot always be evaluated using traditional methods. We analyze the relevant metrics, ask the tough questions to get you the right picture
share-button
like-button
share-button

For subscribers only

Premium Reads

>>

View More >>

Deeply reported and objective news on the country´s fastest-growing companies and the people behind them.