What sets GoKwik apart and makes it an attractive investment opportunity is its ability to assist businesses, irrespective of their size, in establishing an online presence and venturing into the direct-to-consumer (D2C) realm.
GoKwik currently has a runway extending 60-70 months, supported by approximately $35-$37 million in reserves, and is striving to achieve profitability within the next 18 months. Moreover, the company is eyeing a public listing within the next 3-5 years. Although there is investor interest, according to Taneja, the company is not actively seeking additional funding at present.
While some of the products offered by GoKwik are also accessible through other providers, the company’s co-founder and CEO, Chirag Taneja, emphasized that GoKwik’s suite of products is designed to integrate seamlessly, leading customers to engage with at least two of them on average. This approach has contributed to a 20% year-over-year increase in annualized revenue, surpassing $30 million in annual recurring revenue this year, up from $25 million last year.
With the recent funding injection, GoKwik aims to broaden its presence in new markets, including Germany, France, and various Latin American countries, where WhatsApp boasts a substantial user base. The startup is also looking to enhance its products with more robust AI capabilities while planning to enable Indian merchants to cater to international customers through a global checkout solution that integrates with Stripe and other renowned payment processors.
Although the latest funding round, spearheaded by RTP Global, is 63% smaller than the previous Series B funding of $35 million unveiled in May 2022, it has effectively appraised the New Delhi-based startup at 43% more than its last pre-money valuation of $315 million. In addition to RTP Global, the fresh funding round also saw contributions from GoKwik’s existing investors, which include Z47, Peak XV Partners, and Think Investments, bringing the total accumulated funding since the company’s inception in 2020 to $68 million.
GoKwik, a startup hailing from India that specializes in providing a range of integrated e-commerce solutions, recently secured a modest funding round of $13 million. Referring to it as a “growth” round, this funding push has now propelled the company’s valuation to $450 million pre-money.
The D2C sector is anticipated to witness substantial growth as more brands set their sights on the online market to appeal to younger consumers, especially in countries like India, which is the second-largest internet market globally after China. The D2C market in India is projected to reach a value of $60 billion by 2027, a significant surge from $12 billion in 2022, according to a report by KPMG.
Among GoKwik’s notable clientele are well-known names such as Lenskart, Honasa Consumer, Lakmé, Pepe Jeans, and Xplosive Ape.
With a workforce of around 400 employees mainly stationed in its offices in Gurugram and Bengaluru, GoKwik also maintains a small team in the UK.
Presently, GoKwik boasts a customer base of more than 12,000 paying merchants, a significant increase from 2,500-3,000 a year earlier, with a presence across India, Europe, the UK, and U.S. These merchants leverage GoKwik’s SaaS products to establish their online stores through platforms like Shopify, Magento, Salesforce, and WooCommerce, enabling seamless checkout, online payments, and features such as returns and cash-on-delivery. Additionally, the company facilitates brands in conducting commerce via WhatsApp, a popular platform in markets like India, parts of Europe, and Brazil.
