Nitro Commerce, a platform designed for e-commerce and direct-to-consumer brands, has raised INR 15 crore (approximately $1.8 million) in its seed funding round. Cornerstone Venture Partners led this investment. Warmup Ventures, Lead Angels, Dholakia Ventures, India Accelerator, and individual backers like Arjun Vaidya and Kunal Khattar also participated.
The startup plans to raise INR 50 crore (about $6 million) in the coming months.
Nitro Commerce: Simplifying E-commerce Solutions
Umair Mohammed, CEO and co-founder of Nitro Commerce, spoke to Inc42 about their mission in the rapidly growing e-commerce and direct-to-consumer (D2C) industry. Nitro Commerce aims to support brands by developing essential technologies that enhance customer acquisition and engagement from the initial stages of interaction (top of the funnel) to conversion (middle of the funnel). They aim to make these technologies accessible and straightforward for merchants to integrate and use, offering them as a service to achieve tangible business outcomes.
Nitro Commerce has already secured over 140 D2C and e-commerce brands as clients. Notable names include Revlon, The Ayurveda Co. (T.A.C), and Amrutam, which utilize Nitro X, the platform’s service offering designed to meet diverse business needs in the e-commerce sector.
Nitro Commerce’s Approach
Umair Mohammed, CEO of Nitro Commerce, highlighted the impact of Google’s decision to phase out third-party cookies on online-first brands in India. These cookies are crucial for advertising strategies, including remarketing, which typically generates about 20% of revenue for brands.
Mohammed explained that while third-party cookies pose privacy risks, they have been fundamental to how brands engage with customers online. Nitro Commerce addresses this challenge with technology that preserves user privacy while enabling brands to gather 20-30% more data through marketing efforts.
Nitro Commerce aims to expand its platform, Nitro X and plans to onboard more than 1,000 brands by the end of the fiscal year 2025. They aim to empower brands in India’s e-commerce landscape by providing effective and privacy-conscious technology solutions.
Future Plans of Nitro Commerce
Nitro Commerce, fueled by recent funding, is focused on achieving profitability by the end of 2025 while expanding its product offerings:
Upcoming Products:
- Nitro AI: Expected to launch in six to eight months, Nitro AI will assist e-commerce and D2C brands in leveraging large language models and other AI technologies using their own data.
- Nitro Collab: Currently in beta testing, Nitro Collab aims to enable seamless collaboration between brands and influencers. It is scheduled for a full launch in Q4 of the fiscal year 2025.
The funding ensures Nitro Commerce has the resources needed to sustain operations and development until profitability is achieved.
Investor Insights on Nitro Commerce
Nanika Kakkar, a partner at Cornerstone Venture, emphasized that Nitro Commerce adds significant value to brands by enhancing the entire customer journey. This includes processes like identity resolution, centralized data enrichment, and targeted behavioral marketing, all of which contribute to improving customer conversions.
Arjun Vaidya, a D2C entrepreneur and investor, likened Nitro Commerce to a crucial tool in the e-commerce revolution. He compared investing in Nitro Commerce to investing in tools that enable and drive growth, drawing parallels to investing in essential equipment during a gold rush.
Market Potential of Nitro Commerce
Investors foresee Nitro Commerce playing a pivotal role in India’s expanding D2C and e-commerce markets. According to Inc42, India’s e-commerce industry is projected to grow to a $400 billion opportunity by 2030, with a compound annual growth rate (CAGR) of 19%. The D2C sector, expected to comprise 75% of this market at approximately $300 billion, represents a significant growth area for Nitro Commerce.
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