CIOInsider India Magazine
Amazon Acquires GlowRoad Enroute to its International Markets Expansion
Amazon has paid full cash for the Indian social commerce startup GlowRoad, as the e-commerce behemoth expands its presence in one of its core international markets.
The deal will assist the company in meeting its goal of digitizing the country's 10 million enterprises by 2025.
Amazon's foray into social commerce comes at a time when its main competitor, Walmart-owned Flipkart, is actively ramping up its own social commerce offering, Shopsy, in India. According to industry estimates, a few businesses, like SoftBank and Facebook-backed Meesho and Alpha Wave International and Tiger International-backed Dealshare, operate in the social commerce space and have a larger market share than Shopsy.
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 company claims to have established a network of over six million resellers who earn an average of Rs.35,000 ($460) per month, according to its website.
“GlowRoad is dedicated to creating extra ‘homepreneurs’ and bringing many distinctive and unbranded suppliers to the platform. Even after 4 years, we have now simply scratched the floor, and there’s a lot extra to do”, states co-founder Shekhar Sahu
Since its inception in 2017, Tracxn has raised a little over $31 million, according to Tracxn data.
It remains unclear as to how much Amazon paid for the acquisition, but GlowRoad’s employees will be joining the e-commerce giant.
This is Amazon's first inorganic bet in the social commerce industry, where sellers sell their products through platforms like Whatsapp and Facebook. The purchase represents Amazon's attempt to gain a presence in this burgeoning market, which has seen a slew of new firms emerge in recent years.
“GlowRoad is dedicated to creating extra ‘homepreneurs’ and bringing many distinctive and unbranded suppliers to the platform. Even after 4 years, we have now simply scratched the floor, and there’s a lot extra to do”, states co-founder Shekhar Sahu.
