Video based social commerce platform SimSim has received fresh funding of approximately 53.44 lakhs from its two existing HNI investors Samarth Bedi and Sunil Kalra. The latest tranche seems to be part of the worth $8 Mn series B round that was led by existing investors Shunwei Capital and Accel Partners in February this year.
According to the regulatory filings, SimSim has issued 108 compulsory convertible preference shares each to Bedi and Kalra at an issue price of Rs 24,731 per share to raise total consideration of Rs 53.44 lakhs.
At the time of raising Series B round in February, SimSim had said that it will use the proceedings to expand its network of influencers and for ramping up its technology platforms.
Notably, Bedi and Kalra had also participated in the worth $6Mn Series A round in November last year, with both HNI investors contributing INR 20 Lakh each in the round.
Founded last year in July, SimSim has apparently managed to charm the investors in a very short span of time. The fact that the company has succeeded in raising funds in quick succession is a proof of investors’ over all optimism about the social commerce space. Although considered to be a niche space, experts claim that social commerce may unleash next wave of e-commerce revolution across the country.
Online video shopping apps like SimSim essentially offer interactive videos to customers for helping them in making intelligent shopping decision. These interactive videos are usually prepared by social media influencers.
According to an estimate, India’s nascent social commerce market is expected to touch $70 Bn in the coming years, which is roughly more than 2x the size of the current e-commerce market in India. It is not merely these numbers but social commerce’s spectacular success in the neighboring China has made Investors buoyant about India’s social commerce story.
As per data and research firm eMarketer, social commerce sales in China accounted for whopping $186.04 billion in 2019. It has forecasted that these sales numbers will almost double to reach $474.81 Bn by year 2023.
India being home to world’s second largest internet users does give credence to the social commerce boom. However, India in the long run needs to increase its per capita income in order to spur the spending capacity of its neitzens and this, analysts claims, will eventually determine whether or not India can replicate the success of China.