Dukan, a one-year-old Bangalore-based startup that enables merchants to set up online stores and sell products digitally, on Monday said it has raised $11 million in a new financing round as it seeks to broaden its offerings and expand its footprint. Looks deep. South Asian Market.
The new financing round, a Pre-Series A, was led by New York-headquartered 640 Oxford Ventures. Existing investors including Venture Catalyst, HOF Capital, Old Well Ventures, LetsVenture, 9Unicorn, and Lightspeed Partners and Leopard Ventures also participated in the new round.
Oyo’s Ritesh Agarwal and Notting’s Carl Pei also invested in the new round, said the startup, which has raised more than $17 million so far.
Dukaan provides individuals with a no-code tool to establish a digital presence. Once they set up the store, they can manually add the inventory they have and start selling to their customers.
The process is straightforward and quick. “First you verify your email address or phone number and then you enter your business or store name. And all. Your digital store is built,” Sumit Shah, co-founder and chief executive of the shop said in an interview with .
For merchants operating in the kirana sector, the shop also allows them to take pictures of their inventory and log into the digital store automatically. The startup also helps merchants accept digital payments.
Dukaan is largely tapping into India’s massive neighborhood market. Over 100 million Indians work in the more popular grocery locally. These stores have, in many cases, been operational for decades.
In recent years, several firms, including Reliance, Amazon and Flipkart, have attempted to disrupt their business – with little or no success. In fact, most of these companies are now looking for ways to engage with these merchants.
But the way Dukan has been developed, it can also be used by restaurants trying to get online or teachers looking to establish their digital presence.
“All these digital stores, by default, get a mydukaan.io website, which they distribute among their customers and friends. This has helped our startups gain more recognition in the market,” said Shah.
The startup’s nominated offering charges individuals or businesses as low as 699 Indian rupees per year, or $9.5, for its services. It also offers some premium plans such as Dukan Infinity – as part of which it helps businesses market to Facebook and Google and helps them rank better on Google Search – and Dukan for larger businesses. Enterprise.
Retail chain Big Bazaar and German personal care brand Nivea are customers of Duan Enterprise. “In case of Nivea, they have multiple distributors across the country. Now they are asking their distributors to sell most of their goods through shop to store store to bring more efficiency in the system,” he said.
“There is a huge white space opportunity to meet the commerce needs of India’s 100 million+ small businesses and the Dukan team with its strong product orientation and deep knowledge of the small business user is empowered to lead the creation of new categories of commerce businesses. India,” said Akshay Bhushan, Partner, Lightspeed, in a statement.
Shah said Dukan plans to deploy new funds to build its payment gateway and develop plugins to integrate with delivery firms and their aggregators. “So far the story has been about helping people build their stores. Now we are working on how to help these people with more things,” he said.
“We aim to have 2 million to 3 million monthly transaction stores on the platform over the next 12 months and reach $10 million in annual recurring revenue over that time frame,” he added.
This is a developing story. More to follow…