E-commerce enablement platform GoKwik raised $35 million in its Series B round of funding led by Think Investments and RTP Global.
The round also saw participation from existing investors Sequoia Capital India and Matrix Partners India.
With the latest fund-raising, the startup has raised more than $55 million in the last 12 months, including a Series A round last November.
GoKwik will primarily use the fresh capital to broaden its e-commerce enablement stack and grow its network of brands, further optimize their conversion results, and also provide customised solutions.
“We have been able to improve conversion rates up to 50%, reduce RTOs by up to 40% across the spectrum of merchants, across categories. As we expand our network of merchants, we will continue to democratise the shopping experience, we will keep bringing in upgraded solutions to help them realise incremental GMV,” said Chirag Taneja, co-founder and CEO at GoKwik.
RTO is return to origin and GMV refers to gross merchandise value.
GoKwik was started in 2020 by Taneja, Vivek Bajpai, chief technology officer and Ankush Talwar, chief data scientist. It has about 250 clients.
These include marketplaces like Snapdeal, Limeroad and Lenskart, and direct-to-consumer (D2C) brands like boAt, Mamaearth, The Man Company, Neeman’s, The Souled Store, Bombay Shaving Company and DaMENSCH. These companies are using GoKwik’s technology to trim cart abandonment losses, drive incremental sales and enhance profitability.
‘We were so far catering to mid and large D2C brands, but now we want to engage with smaller players as well. We may reach 10,000 brands in the next one year,” said Taneja.
GoKwik also plans to have more payment options, increase the prepaid success rate and offer financing alternatives to help partner brands.
“We will be soon tying with companies to provide facilities like BNPL and also launch products like fraud identity among other things,” he said.
GoKwik claimed that post its Series A round, it has so far delivered GMV realisations in excess of $1 billion for its merchants, serving more than 80 million customers on its network of brands and achieving over 3500% growth in revenue.
“In a short span of time, GoKwik has grown very rapidly and now works with multiple marquee D2C brands and online marketplaces. Low conversion rate is a key pain point for most e-commerce merchants, and GoKwik’s product offerings precisely solve that problem,” said Shashin Shah, managing partner at Think Investments.
Analysts tracking the space said that the company will most probably achieve unicorn tag in its Series C round of funding. They said the company may have achieved above $500 million valuation in the latest transaction.
The e-commerce enablement industry has witnessed increasing investor interest in recent times after offline businesses started moving towards an omni-channel retail strategy.
For instance, e-commerce shipping and enablement platform Shiprocket made a few acquisitions. In February, the Zomato-backed firm invested $1.5 million in software-as-a-service (SaaS) platform Logibricks Technologies Pvt Ltd, which enables e-tailers to manage their end-to-end post-purchase operations.
Another similar startup EasyEcom has raised $2 million as part of its Series A funding round from business-to-business (B2B) marketplace IndiaMART InterMESH Ltd in January this year.
