Bengaluru-based social commerce startup, DealShare App, backed by Tiger Global, is undergoing a significant transformation. The company has made the strategic decision to discontinue its B2B business, leading to the termination of over 100 employees. This move is part of DealShare's efforts to streamline its operations and refocus its business strategy. The startup also revealed plans to relocate its operations to Gurugram, concentrating its efforts on key markets, including Jaipur, Delhi NCR, Lucknow, and Kolkata.
Background
The decision to discontinue the B2B segment comes almost two months after DealShare's co-founder and CEO, Vineet Rao, stepped down from his role. This move suggests a shift in the company's leadership and strategy. DealShare had initially ventured into the B2B space as part of its growth and diversification strategy.
Business Consolidation
DealShare's move to Gurugram and its focus on specific markets reflect a strategy to optimize resources and enhance its presence in regions with high growth potential. By consolidating its business, DealShare aims to streamline its operations, improve efficiency, and create a more targeted approach to serving its customers.
Financial Overview
In the fiscal year 2022, DealShare reported a significant increase in its net loss, which surged by 543% to INR 431 crore from INR 67 crore in the previous fiscal year (FY21). This financial performance indicates the challenges the company has faced in scaling its business and may have contributed to the strategic decisions it is making to pivot and realign its focus.
DealShare's decision to discontinue its B2B business, consolidate operations, and refine its focus on select markets is indicative of the dynamic nature of the startup ecosystem. As it adapts to changing market conditions and refines its strategy, DealShare aims to position itself for sustainable growth and success in the highly competitive social commerce space. The move aligns with the company's commitment to delivering value to its customers and stakeholders while optimizing its operations for greater efficiency and impact in its chosen markets.
