With the global eCommerce market reaching US$ 13 trillion in 2021 securing an annual compound growth rate of approximately 27% the Indian company GoKwik has made quite a considerable amount of fortune. The company has managed to raise US $35 million in a series B round conducted by RTP Global and Think Investments.
The renowned existing investor Sequoia Capital India and Matrix Partners India have also taken part in the round. This made the new capital rise to $55 million in the previous year. Earlier in August 2021 a pre-series A round has been raised followed by a series A round two months later in November.
GoKwik was initially a startup founded in 2020 by Chirag Taneja, Vivek Bajpai and Ankush Talwar which aimed at finding solutions to eCommerce problems through the use of machine learning and AI that will increase the conversation rates of cash on delivery and reduce its partner’s order returns. This New-Delhi-based start-up has successfully served clients involved in Indian e-commerce such as The Souled Store, OZiva, VMart, Noise, ManMatters, boAt, Good Glamm Group, Mamaearth and many many more.
It has been decided that the new funds will be used to develop tech solutions that have the potential to create a stir in various omnichannel players and enormous marketplaces to escalate it reaches in the D2C (direct-to-customer) sector. Additionally, the company has decided to grow the teams concerned with data science and engineering by hiring over 200 employees from all over India by the end of 2022.
Taneja also claimed that they have managed to increase the conversion rates to 50% and reduce the RTOs by 40% in the oeuvre of merchandise. The company also aspires to find new solutions to assist the merchants to take into account incremental GMV and expand its network which will further help in the democratization of the shopping experience.
As per the reports, the development of the digital infrastructure will assist in the acceleration of e-commerce businesses to about 11.4 % of the total retail market ranging around $200 million by 2026. The total number of online shoppers in the country is expected to rise by 350 million within 2025, hitting a CAGR rate of 28.5%. Back in 2020, the most engaged online shoppers were between the age group 25-34 and 67 percent population aged between 18-34 were inline shoppers.
The company is known to serve over 100 brands and has assisted its clients with an increase in conversion rates by 20%. For any eCommerce business, conversion rates and RTOs are some of the pain points and the start-up facilitates these eCommerce businesses to build a healthy network to solve all these problems. In the oeuvre of eCommerce payment enablers, GoKwik faces tough competition from its market competitors including Razorpay, PayU, Cashfree, Instamojo and many more but its CEO ChirakTaneja acclaimed that its competition is not directly with the payment gateways of its competitors. He additionally proclaimed that the eCommerce retail market of India which is expected to touch $120 billion in the next few years will be heavily impacted by the role of the eCommerce enablement players.