Shopflo, an e-commerce enablement startup has raised $2.6 million in its seed funding round from Tiger Global and TQ Ventures.
The funding round also saw participation from Better Capital and a pool of angel investors from the Indian startup ecosystem.
Although Tiger Global is a multi Stage fund with this investment in Shopflo, it is entering to back seed-stage companies.
The Bengaluru-based Shopflo was founded in 2021 by Priy Ranjan, Ankit Bansal and Ishan Rakshit, It provides a platform that allows direct-to-consumer (D2C) brands to improve their checkout experience on their websites and improve conversion rates. It also helps to personalize these checkout experiences for customers of all brands.
The startup has currently partnered with six merchants including D2C firms and a Rollup Commerce brand.
The startup declined to provide details of these merchants and has partnered with major payment gateways including RazorPay and Cashfree to offer checkout payments to its merchant partners.
“After speaking to more than 100 small merchants, we realized that there continues to be a gap in checkouts for smaller brands as 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”, said, Priy Ranjan, CEO and co-founder of Shopflo.
The startup now plans to roll out its product to 150 online merchants and process up to $300 million in gross merchandise value (GMV) checkout this fiscal year.
“A seamless checkout experience has become a baseline expectation for consumers. However, checkout for e commerce merchants hasn’t changed much in the last decade. Shopflo will change this. Shopflo 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”, said, John Curtius, partner at Tiger Global.
“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”, said, Schuster Tanger, co-managing partner, TQ Ventures.
With a focus on growing the business and finding the right product-market fit, the company plans to expand internationally after the first year of operations, while also launching new offerings in discounted segments while building customer loyalty and among other aspects.