New Delhi, India-based e-commerce enablement platform Shopflo raised USD 2.6 million in its seed funding. The round took place on May 11, 2022. Tiger Global and TQ Ventures co-led the funding for Shopflo. Meanwhile, Better Capital and a few angel investors also participated in the round.
Tiger Global makes its first seed investment for a startup at a pre-product stage with this investment.
Purpose of Funding for Shopflo
The SaaS platform plans to scale its product to 150 online merchants. This fiscal year, it will also look to process up to USD 300 million in gross merchandise value (GMV) checkouts.
Recently, the startup partnered with six merchants, including D2C firms and a rollup commerce brand. Shopflo also enjoys its partnership with leading payment gateways, including Razorpay and Cashfree. It offers checkout payments to its merchant partners.
What the founders have to say
Priy Ranjan, CEO and Co-founder, Shopflo, said, “Most of these D2C merchants build their websites using no-code tools, which are great for smaller merchants. The next best platforms are only suitable for large enterprises with in-house tech teams. Shopflo is targeting the merchants in the middle. We are starting as a checkout SaaS platform for D2C brands to create a delightful and zero mental load checkout experience. We are privileged to have Tiger Global, TQ Ventures, and Better Capital join us as we plan to bring the D2C checkout experience closer to Swiggy and Amazon.”
Ranjan further added, “After speaking to more than 100 small merchants, we realized that there is a gap in checkouts for smaller brands compared to larger platforms, who own their checkout experiences. Through Shopflo, we want to ensure that customers get the same checkout experience across all small D2C brands they shop from and increase conversions for these smaller merchants. We are already seeing a 15% to 20% increase in conversions for some of these brands.”
What the investors have to say
John Curtius, Partner at Tiger Global, said, “A seamless checkout experience has become a consumer’s baseline expectation. However, checkout for e-commerce merchants hasn’t changed much in the last decade. Shopflo will change this. It is well-positioned to be the default checkout for the fast-growing Indian D2C market. We are excited to be their first backers along this journey.”
In addition, Schuster Tanger, Co-Managing Partner, TQ Ventures, said, “Indian e-commerce is a megatrend. The checkout piece sits at the bottom-most part of the funnel with the highest intent customers. The Shopflo team impressed us with their depth of understanding of both D2C and payments SaaS. They are well-positioned to build the preeminent Indian company in this space, and we look forward to supporting them on their journey.”
“Checkout has remained the most under innovated part of e-commerce for a long time. We are changing that with Shopflo, an innovative checkout SaaS to reimagine the buyer experience from the checkout page onwards, weaving together payment, tracking, returns, and more like never before. I am excited to partner with the Shopflo team along with a stellar group of global co-investors”, further said Vaibhav Domkundwar, CEO of Better Capital.
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