7-month-old Simsim secures $16M for its social commerce in India – TechCrunch


Simsim, a social commerce startup in India, stated on Friday it has raised $16 million in seven months of its existence because it makes an attempt to copy the offline retail expertise within the digital world with assist from influencers.

The Gurgaon-based startup stated it raised $16 million throughout seed, Sequence A and Sequence B financing rounds from Accel Companions, Shunwei Capital and Good Capital. (The newest spherical, Sequence B, was of $eight million in dimension.)

“Despite e-commerce players bandying out major discounts, most of the sales in India are still happening in brick-and-mortar stores. There is a simple reason for that: Trust,” defined Amit Bagaria, co-founder of Simsim, in an interview with TechCrunch.

The overwhelming majority of Indians are nonetheless not comfy with studying descriptions — and that too in English, he stated.

Simsim is taking a distinct strategy to deal with this chance. On its app, customers watch short-videos produced in native languages by influencers who apply magnificence merchandise or check out clothes and clarify the ins-and-outs of the merchandise. Beneath the video, the gadgets seem as they’re being mentioned and customers can faucet on them to proceed with the acquisition.

“Videos help in educating users about the category. So many of them may not have used face masks, for instance. But it becomes easier when the community influencer is able to show them how to apply it,” stated Rohan Malhotra, managing associate at Good Capital, in an interview with TechCrunch.

Influencers usually promote a variety of things and customers can comply with them to flick through the previous catalog and keep on high of future gross sales, stated Bagaria, who beforehand labored on the e-commerce enterprise of monetary providers agency Paytm .

“This interactiveness is enabling Simsim to mimic the offline stores experience,” stated Malhotra, who is likely one of the earliest buyers in Meesho, additionally a social commerce startup that final 12 months acquired backing from Fb and Prosus Ventures.

“The beauty to me of social commerce is that you’re not changing consumer behavior. People are used to consuming on WhatsApp — and it’s working for Meesho. Over here, you are getting the touch and feel experience and are able to mentally picture the items much clearer,” he stated.

Simsim handles the inventories, which it sources from producers and types, and it really works with a lot of logistics gamers to ship the merchandise.

“Several Indian cities and towns are some of the biggest production hubs of various high-quality items. But these people have not been able to efficiently sell online or grow their network in the offline world. On Simsim, they are able to work with influencers and market their products,” stated Bagaria.

The platform at this time works with greater than 1,200 influencers, who get a fee for every merchandise they promote, stated Bagaria, who plans to develop this determine to 100,000 within the coming years.

At the same time as Simsim, which has been open to customers for six months, remains to be in its nascent stage, it’s starting to indicate some development. It has amassed over 1,000,000 customers, most of whom dwell in small cities and cities, and it’s promoting hundreds of things every day, stated Bagaria.

He stated the platform, which at the moment helps Hindi, Tamil, Bengali and English, will add greater than a dozen extra languages by the top of the 12 months. In a couple of month, Simsim additionally plans to start out displaying dwell movies, the place influencers will be capable to reply queries from customers.

A handful of startups have emerged in India lately which might be trying to rethink the e-commerce market within the nation. Amazon and Walmart, each of which have poured billions of {dollars} in India, have taken a discover too. Each of them have added assist for Hindi within the final two years and have made a number of extra tweaks to their platforms to increase their attain.



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