Bangalore-based startup Dukaan has raised $11 million in a new financing round with a valuation of $71 million.
The one-year-old startup helps merchants open online stores and sell products digitally.
The Pre-Series A round was led by New York-headquartered 640 Oxford Ventures, Venture Catalyst, HOF Capital, Old Well Ventures, LetsVenture, and 9Unicorns.
Existing investors including Lightspeed Partners and Leopard Ventures also participated.
Notable names include Ritesh Agarwal of Oyo and Carl Pei of Nothing and former OnePlus co-founder.
About The App
Dukaan provides individuals with no-code tools to set up digital presence in a quick and direct manner.
All one has to do is verify email address or phone number followed by registering business or store name.
After establishing the online store, merchants can manually add their inventory and begin selling.
For those dealing in groceries, the app allows them to take pictures of their inventory and automatically logs them in the digital store.
The merchants can also start accepting digital payments through the app.
Dukaan is making use of India’s massive neighborhood or kirana retail market consisting of over 100 million Indians running decades-long businesses.
Reliance, Amazon and Flipkart are some of the biggest names which have also tried their hand at online grocery retail with little success.
So they are now tying up with local merchants to increase their presence.
How It Works
Dukaan says that it has facilitated over 1.5 million transactions.
Suumit Shah, co-founder and chief executive, explains that the digital stores, by default, get a mydukaan.io website.
The merchants can distribute it among their customers and friends.
Businesses have to pay Rs 6,999 or $95 per year for its services.
There are also premium plans such as Dukaan Infinity and Dukaan Enterprise.
With Dukaan Infinity, businesses can conduct marketing on Facebook and Google and improve their search rankings.
Dukaan Enterprise offers the same service for big businesses.
Some of the big names registered with Dukaan include Big Bazaar and Nivea.
The latter has many distributors across the country who sell most of the inventory to stores through Dukaan.
With the fresh funds, Dukaan plans to build its own payments gateway and develop plugins to integrate with delivery firms and their aggregators.
It is targeting 2 million to 3 million monthly transacting stores and to reach $10 million in annual recurring revenue, both in the next 12 months.