E-commerce giant Amazon has acquired women-focused social commerce startup GlowRoad reportedly in an all-cash deal.
An Amazon spokesperson said, “Amazon continues to explore new ways to digitize India and delight customers, micro-entrepreneurs, and sellers, and bringing GlowRoad onboard is a key step in this direction. Together with GlowRoad, Amazon will help accelerate entrepreneurship among millions of creators, homemakers, students, and small sellers from across the country.”
The social commerce space has been one of the sought sectors as Flipkart’s social commerce arm Shopsy and Meesho have been garnering market share. However, Meesho now derives 75 percent of its business directly from customers who come on its platform, while 25 percent comes from resellers.
“This acquisition will complement GlowRoad’s already loved service with Amazon’s technology, infrastructure, and digital payments capabilities, bringing more efficiency and cost-saving for everyone,” added the statement.
GlowRoad has raised about $32 million and counts Accel, Vertex Ventures, and CHD Investments among its investors. The brand has over six million resellers and is present in over 2,000 cities, according to the company website.
This move also comes at a time when Shopee has shut its India business within a few months after foraying into the country. Last month, Citymall also raised $75 million and claims to have grown over 30 percent month-on-month in the last 18 months.