Vineet Rao, co-founder and CEO of social commerce platform DealShare, has decided to step down from his role, effective immediately. According to a statement issued by the firm, Rao will continue to maintain his position on the company’s board, as well as advise the firm on the appointment of his successor.
“In its continuous quest to drive profitable growth, DealShare aspires to pivot to a hybrid online and offline model to enhance its services, and increase its customer retention and share of wallet. As the company embarks on this next phase of growth, Vineet Rao, the current CEO has decided to step down from his role. Vineet (Rao) will work with the board to help identify the right CEO to lead this mission. He will also continue to work with and advise the board in respect to the new leadership,” a spokesperson for the company commented on the matter.
The departure of Rao from the company’s helm comes amidst its shift from operating an online-only platform to a hybrid model – providing offline and online operations alike. DealShare is also currently engaged in the shifting of its base to Delhi from Bengaluru (which will have the greatest number of employees in the social commerce firm), as well as increasing its offline presence in the sector.
A report by Moneycontrol reveals that DealShare has already asked its employees from non-tech divisions to relocate and join its offices in Delhi, but warned that failure to relocate would result in them being axed by the firm. DealShare already joined the layoff wagon earlier this year, laying off nearly 100 employees as part of a business restructuring plan
DealShare operates on a mobile app-based platform to offer a range of products. Product categories include groceries, personal care items, household goods, and fashion items, which are sourced directly from manufacturers and distributors. To date, the firm has raised a total of $393 million from external investors. As of February 2022, it was valued at $1.7 billion after it raised over $390 million from WestBridge Capital, Tiger Global and others. Dealshare claimed to have served over 10 million customers since its launch, and usually targets customers in Tier II and III cities of the country, following a group-buying model (one wherein a group of individuals or consumers come together to buy products or services in large quantities).
Going forward, the firm has a lofty goal of increasing its revenues by three times in the next two-and-a-half years, according to Sourjyendu Medda, founder and co-CEO at DealShare. And if this is not ambitious enough, it also plans to become operationally profitable during the period. DealShare also intends to invest ₹1,000 crores over the next five years to grow its private labels business, he added.