E-commerce firm Glowroad, is a Bangalore based start-up that works by connecting manufacturers with wholesalers and retailers by using the concept of drop shipping. With their methods, they are able to keep overhead costs as low as possible.
The company was started with the motive to help women and stay at home mothers a way to start their business and sell their products with the help of their platform. Amazon has seen the potential of their business model in India and has put pen to paper to acquire the company in an all cash transaction but the specifics of it have not been released to the public.
Amazon chose to purchase the company after they saw Flipkart’s success with their social commerce acquisitions – Meesho and Shopsy. The two firms have been very successful recently and have been taking up most of the industry’s share. The latter has its data out to the open and they revealed that three quarters of their users are from direct customers while a fourth of their revenue comes from resellers.
A representative of the world’s largest e-commerce retailers spoke about the deal saying that company is always looking at different avenues to phase India into the digital world and increase the business opportunities for Indian businesspeople and entrepreneurs. With the work that Glowroad does, they are on track on providing a way for businesspeople to sell their products and earn a livelihood which is what the internet can do if its potential harnessed is harnessed right.
Glowroad will now have access to the data, technology and other aspects that make Amazon be the best e-commerce business there is. This would definitely be of invaluable help and will play a big role in boosting the company’s sales, growth and overall market share.
Five years ago, in 2017, Glowroad received a funding of $2 million USD from Accel Partners and ever since that, the company has totally received a total funding of $32 million USD in various rounds of funding from a host of venture capitalist companies.
Currently Glowroad’s services are available all over the nation as they are present in more than 2000 cities and even has six million users which is constantly growing.
With many big firms like Shopee exiting the Indian market, this is a great opportunity for local Indian businesses to fill that space.
With Amazon’s algorithms at their disposal their potential is now unbounded.
