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Ecommerce enablement startup GoKwik raises $35 million in funding from Think Investments, Sequoia, others

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Bengaluru: Ecommerce enablement company GoKwik, on Wednesday, said that it has raised $35 million as a part of its new funding round led by Think Investments and RTP Global.

The round also saw participation from existing investors Sequoia Capital India and Matrix Partners India.

The new funding comes on the back of the company raising $15 million as a part of its last funding round in November 2021.

According to GoKwik, it will use the funds to beef up its offerings to online brands, take its product to more direct-to-consumer (D2C) brands, and grow its tech, product and data science capabilities.

Founded in October 2020, GoKwik provides a platform which helps ecommerce firms as well as D2C brands to increase conversions at checkout, manage efficiency and reduce frauds on cash-on-delivery (COD) orders. It also looks to provide a more personalised experience to the users.

GoKwik has also partnered with three large payment aggregators to offer payment checkouts to smaller direct-to-consumer brands.

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“The piece that we understand well is ecommerce and we take over the customer’s cart and take it to the final transaction. Over the next 9-12 months we will be focussing on retention and selection use cases for ecommerce and help partners increase their conversions,” said Chirag Taneja, cofounder and chief executive officer (CEO), GoKwik.

At present, GoKwik provides services to over 250 brands and helps process more than $1 billion in gross merchandise value (GMV) through its platform.

The company plans to end the current fiscal with over 5000 merchants. In the next 12-18 months, the company is also looking to expand internationally to Southeast Asia, as well as offer newer solutions to the offline to online space while integrating with kirana-tech companies. It also has plans to launch offerings related to customer loyalty for these ecommerce platforms. At present, ecommerce marketplaces including Snapdeal, Limeroad and Lenskart, and D2C brands like boAt, Mamaearth, The Man Company are already leveraging GoKwik’s offering.

“In a short span of time, GoKwik has grown very rapidly and now works with multiple marquee D2C brands and online marketplaces. Low conversion rate is a key pain point for most e-commerce merchants, and GoKwik’s product offerings precisely solve that problem,” said Shashin Shah, managing partner, Think Investments.

ET reported earlier today that the New York-based investment firm Tiger Global made one of its first seed investments in India, through ecommerce enablement platform, Shopflo.

Globally, investors are also pouring capital into the ‘headless’ commerce space, which includes ecommerce infrastructure providers who neither own the storefront nor operate payments but provide tools to better customer experiences in the middle layer.

Other global ecommerce infrastructure tool providers like Vue Storefront and Commerce Layer have also received backing from YCombinator and Coatue Management respectively.

Recently, CommerceIQ became the 12th unicorn this year, after it raised $115 million in a funding round led by SoftBank Vision Fund 2. A unicorn is a privately held startup which is valued at $1 billion or more.

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