Amazon acquires social commerce startup GlowRoad
By Sanjay Maurya
GlowRoad, a women-focused social commerce platform (use networking websites such as Instagram, Facebook, and Twitter as vehicles to promote and sell services&products), was acquired by Amazon India on Friday (April 22). This is the first investment made by e-commerce giant Amazon in India to expand its social commerce sector. Several media reports said that GlowRoad was valued at $75 million in this deal, although details of the transaction have not been published. According to the Economic Times, Amazon acquired the company in an all-cash deal.
Amazon
E-commerce company
- CEO: Andy Jassy (5 Jul 2021–)
- Founder: Jeff Bezos
- Founded: 5 July 1994, Bellevue, Washington, United States
- Headquarters: Seattle, Washington, United States
- Revenue: 38,606.4 crores USD (2020)
- Subsidiaries: Zappos, Audible, Whole Foods Market, Ring, Souq, MORE
- Industry – E-commerce, Cloud Computing, Artificial intelligence, Consumer electronics, Entertainment, Digital distribution, Self-driving cars, Supermarket
Amazon believes the move will help the company achieve its goal of digitizing 10 million businesses by 2025.
Accel, Vertex Ventures, and CHD Investments are among the investors of GlowRoad, which has raised approximately $32 million. According to the company’s website, GlowRoad has over six million resellers in over 2,000 cities. This comes at a time when Shopee’s India operation shut down just a few months after it opened. Citymall raised $75 million last month and claims to have grown rate of 30% per month for the last 18 months.
India has long been one of the world’s most important e-commerce markets. According to a report by Bain and Sequoia Capital, more than 100 million of India’s estimated 572 million internet users buy products online in the fiscal year 2020, with e-commerce being a $30 billion industry.
GlowRoad distributes products to clients at wholesale costs and assists them in reselling them on social media platforms such as Facebook and WhatsApp. It also gives them access to a logistical network (to assist with product delivery) and the ability to collect cash. The business claims to have established a network of over 6 million resellers who earn an average of 35,000 Indian rupees ($460) per month, according to its website. GlowRoad said earlier this month that it will expand into some Southeast Asian markets.
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