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Thursday, December 7, 2023

Amazon acquires GlowRoad to compete with Shopsy, Meesho

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Amazon has acquired GlowRoad, a social commerce startup which is focused on women. With the deal, Amazon would compete with Flipkart’s Shopsy platform and social commerce firms like Meesho

Amazon is putting a lot of money on social commerce, or the use of social network groups to boost e-commerce purchases. According to estimates, social commerce will be a $70 billion industry opportunity in the next years.

On Friday, the e-commerce behemoth announced the acquisition of GlowRoad, a women-focused social commerce business based in the United States, for an unknown sum.

The company stated in a statement that the acquisition will help it reach its aim to digitize 10 million local Indian businesses by 2025.

An Amazon representative stated, “Amazon continues to explore innovative methods to digitize India and delight customers, micro-entrepreneurs, and sellers, and bringing GlowRoad onboard is a critical step in this approach.”

Amazon, in collaboration with GlowRoad, will aid in the acceleration of entrepreneurship among millions of artists, homemakers, students, and small merchants around the country.

“The e-commerce behemoth has invested more than $6.5 billion in its India operations and is up against Reliance’s JioMart, Walmart-owned Flipkart, and Tata-owned BigBasket.

The acquisition will allow Amazon to compete with Flipkart’s Shopsy platform as well as other social commerce firms and startups including SoftBank-backed Meesho, DealShare, BulBul, Mall91, and simsim (which was acquired by Google’s video streaming network YouTube).”

GlowRoad is a social commerce platform that allows users to resale products directly from manufacturers and suppliers using social media apps like as Facebook, Instagram, and WhatsApp. It was founded in 2017 by Dr Sonal Verma, Kunal Sinha, and Shekhar Sahu, as well as Nitesh Pant and Nilesh Padariya.

The company, which is funded by Accel Partners, CDH China, Korea Investment Partners, and Vertex, has amassed a network of over 6 million resellers. There are 20,000 providers, 18 million buyers, and 2,000 cities in the network.

GlowRoad provides customers with a virtual shop, millions of products from suppliers, payment and shipping options, and eliminates the headaches of opening an online business.

They claim that digitally connected Indians spend an average of three hours every day online, with more than two hours spent on messaging, social media networking, and video watching.

Millions of small retailers are experimenting with new ways to sell directly to consumers via a range of social formats, ranging from conversational commerce on chat platforms to video-led commerce to a thriving social reseller community.

Flipkart, Amazon’s main opponent, is already making significant inroads into the social commerce industry with its platform Shopsy, an app that allows Indians to create their own online enterprises with no upfront investment.

Amazon will also face competition from SoftBank-backed Meesho, which seeks to help 100 million small businesses, including individual entrepreneurs, prosper online.

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