ChattyBao has raised more than $5 million in its seed financing round that was led by Vertex Ventures South East Asia & India and Info Edge Ventures
7Square Ventures and a slew of angel investors also took part in the round of funding
ChattyBao will make use of funds to support product development, and will launch its app in two or three Tier 1 and 2 cities.
The Delhi-based hyperlocal business ChattyBao has raised more than $5 million in its initial capital round, which was led by Vertex Ventures South East Asia & India and Info Edge Ventures.
7Square Ventures and a slew of angel investors were also involved in the round of funding.
ChattyBao plans to use money to help develop products and will be launching its application in between two and three Tier-1 cities and two cities.
“Small retailers and service providers form the foundation of the retail sector in India. ChattyBao will enhance their proposition of value and can be a catalyst in helping more customers come online and shop using the same ease they have when they engage in WhatsApp chats,” said Kanika Mayar who is a partner of Vertex Ventures South East Asia and India.
In October 2021, ChattyBao was founded in the year 2021 by Kumar Aditya and Varun Gupta, ChattyBao is an online platform that connects customers with local merchants and businesses. The startup is currently in stealth mode, and its app is expected to launch during the 3rd week of August, this year.
ChattyBao intends to provide customers a full shopping experience customers via WhatsApp. It has whitelisted its phone number on WhatsApp that is a way for users to search for local businesses in their area and chat with the business owners (including local tailors, vegetable sellers pharmacies, etc.) purchase products from them, pay online payments , and finally receive home delivery. In short, ChattyBao is a platform which allows consumers to purchase goods or services provided by nearby companies.
“Users do not need to download any application. We’ll join merchants with them. For merchants, there’s an app that can help them take orders while for the users we’ve tried to reduce the learning curve, and have developed features in WhatsApp that allow them to connect with shopkeepers.” Aditya explained.
The team that founded the company has extensive experience from establishing diverse business sectors. For instance, Aditya earlier worked with Paytm as its chief business officer, while Gupta was the director for B Capital Group.
“ChattyBao will greatly improve their capability to offer customers with an online shopping experience for their customers, and help them outsmart online players,” said Aditya.
In the hyperlocal space it competes against the such as Zepto, BigBasket and Milkbasket as well as other companies.
According to a study, the market for hyperlocal services in India estimated as $1.4 Bn in 2021, will likely to reach a $4.6 Bn mark by 2026 increasing at a CAGR of 19.6 percent from 2022 to 2027.