Dealkart focuses on price conscious Pakistani consumers – Meczyki.Net

price of consumer goods growing around the world, is causing a major budget headache for many people. social commerce startup dealkart Wants to at least make life easier for shoppers in Pakistan. The company today announced that it has raised $4.5 million in pre-seed funding, three months after its operational launch. The round was led by Shoruk Partners, with participation from Fatima Gobi Ventures, Vibe Capital, 500 Global, i2i Ventures, Julian Shapiro, RallyCap Ventures, Alex Lazaro and several “strategic angel investors.”

Founded by Haider Raza and Ammar Naveed, Dealkart seeks to address the under-utilization of e-commerce among the middle and low-income group in Pakistan, even though more and more people have access to smartphones and the Internet.

Dealkart allows users to buy and share deals in groups via WhatsApp and other social media platforms. By participating in group purchases, consumers are able to unlock lower prices. Customers have the option to join existing groups or create a new group and share a link on their social media. When that number reaches a threshold (usually around four people) within a 24-hour period, the lower prices are unlocked.

Dealkart founders Ammar Naveed and Haider Raza

Prior to launching Dealkart, Naveed was a senior director at Carrom, a ride-hailing app overseeing operations across the Middle East and Pakistan, while Raza launched and grew mobility startup Swvl in Pakistan, and Also worked in carrom.

The founders told Meczyki.Net that their past experience gave them extensive experience building and scaling startups in Pakistan and the MENA region. As inflation worsened in Pakistan, he said it became clear that helping people save money where they spend most of their income was their mission.

“Despite the increasing growth of smartphone and internet penetration, the use of e-commerce remains low among the middle and lower middle income groups, who constitute the majority of the country. As such, the current e-commerce landscape in the country is inclined towards the convenience proposition provided by big ticket electronics, fashion and instant commerce which are costly and can largely be afforded by the small upper income group of Pakistan. The founders told Meczyki.Net in an email. “Most Pakistanis are price conscious and the current e-commerce landscape does not meet their needs.”

Dealkart is able to offer lower prices as it procures products directly from manufacturers, works with locally manufactured brands (while helping them reach a larger consumer base) and through its consumer enhancement features. by reducing its customer acquisition cost. These savings allow Dealkart to have efficient warehousing and last-mile delivery as compared to other e-commerce and instant commerce platforms.

Items available through Dealkart include cooking oil, rice, wheat, pulses and sugar; tea and milk; fruits and vegetables; infant formula and diapers; beverage; and home care products. Presently, Dealkart buys inventory from manufacturers and keeps it in its warehouse. Once the order is confirmed from the customers, the products for Group Buy are delivered by 11 PM.

Raza said Dealkart’s target market already spends 50% of their household income on groceries and essentials, and the startup has been able to give them financial relief through lower prices.

The app uses gamification, which the founders say is “an essential feature of our product.” For example, group shopping is simplified, with users receiving regular updates on how many people are left for the group to complete and how much time is left after joining a group. Users also get credit for referring new users, or sharing products and deals on social media. There’s also a feature that allows them to spin an online wheel for free products and app credits, and lucky draws that can only be included if a user crosses a certain amount of deals shared on social media. does.

Other social commerce platforms in Pakistan include Bazaarghar, Celebshop and Gahk. The founders say Dealkart differentiates by focusing on consumers who typically spend about 50% to 60% of their income on groceries, and enabling them to save money on those items.

Dealkart is currently in the pre-seed stage and closed last month on $1.1 million in annual recurring revenue.

The founders say its new funding will be used to build its technology and product teams, as well as to build Dealkart’s brand. “The main focus for us will be to grow in a sustainable way where we move through technology rather than aggressive discounting for customers.”