Cross-border e-commerce platform Direct2U raises $220.6K in seed round led by IPV

Direct2U, a B2B2C-assisted e-commerce platform, has raised $220.6K in a seed round led by Inflection Point Ventures (IPV).

The funds will be used for technology development, hiring, marketing and expansion plans.

Direct2U aims to simplify cross-border e-commerce. It is a fully-integrated assisted e-commerce platform that offers lead generation, order fulfilment, online transfer, and credit purchase options, along with doorstep delivery for under-penetrated rural consumers in India.

Direct2U provides access to finance and door-to-door delivery. It has partnered with brands such as Samsung, Vivo, and Prestige to offer a wide range of products to rural customers.

It uses a unique OTP mechanism and visual proof of delivery to build trust with its MFI partners.

Currently, the company covers Bihar, Madhya Pradesh, Karnataka, and Odisha. It began revenue generation in January 2023 and saw 12% growth in February 2023.

Gaurav Ahlawat, Founder, Direct2U, said: “The fact that rural commerce, with tech-enabled last mile delivery along with a user friendly frontend platform, can be executed with positive unit level economics is a winning factor. Strict due diligence to build confidence in the startup business. IPV is instrumental in guidance through various mentor investors in supporting the business growth further.

According to a report, by 2026, India will have 1.1 billion Internet users and 350 million Internet shoppers. Tier 2 and below locations in rural India are expected to add 88% of online shoppers and $7 billion in cumulative incremental online retail transactions between 2020 and 2030.

Total internet user share from tier 2 and below towns will increase from 32% in 2021 to 46% in 2025-F to 54% in 2025-F. (2030-F)