Mall91, a social commerce platform for vernacular users, has said it will acquire enterprise resource planning (ERP) solutions provider StompMarket Technologies Pvt. Ltd.
Delhi-based Mall91 said in a statement it will acquire StompMarket through a cash-and-stock deal. Financial details of the transaction couldn't be ascertained.
Mall91, operated by Rovi91 Innovations Pvt. Ltd, said the acquisition helps provide its seller community with ERP solutions such as cloud-based inventory management, cross-channel selling support, procurement order fulfillment, and warehouse management.
Nitin Gupta, founder and chief executive officer at Mall91, said the acquisition will help the firm to elevate its efficiency of running the business.
Separately, StompMarket CEO Anshul Bansal and chief operating officer Anshul Verma said the acquisition will help the firm to enhance its value proposition for Mall91’s sellers. The company, which was founded in 2015, says it manages day-to-day operations and several lakh orders for various enterprises in India.
Mall91, which was set up in 2018, says it uses its technology platform to combine and offer videos-based shopping, local language voice recognition-based catalogue discovery and messaging-based checkout systems. It is targeted at over 400 million vernacular users across Tier-II, Tier-III and Tier-IV cities.
The startup, which currently has a presence in more than 2,000 cities, raised its seed funding in December last year.
In October, Mall91 said it raised $7.5 million (around Rs 67.9 crore) in its Series A round of funding led by Go-Ventures. Beenext, Kalaari Capital and AngelList India also participated in the funding round, Mall91 said in a statement.
Deals in the social commerce segment
The social commerce segment has picked up investor traction recently, as more firms look toward catering to niche audiences and middle- and lower-income segments from non-metropolitan cities in the country. These startups are focussing on a variety of product categories, ranging from groceries to craft-made items.
In October, DealShare, a social commerce startup that focusses on the grocery segment, raised $11 million in a seed and Series A funding round co-led by the US-based venture capital firms Matrix Partners and Falcon Edge.
In August, the Bengaluru- and California-based online reseller marketplace Meesho said it raised $125 million (Rs 885.7 crore) in a round led by South African tech conglomerate and investor Naspers. Earlier in June, Facebook invested in Meesho five years after first acquiring an Indian startup, Little Eye Labs.