Rankz Inc’s Dukaan has raised $6 million in its seed round led by Lightspeed and Matrix Partners. This is the second financing round for the Bengaluru-based company that enables digital storefront for small merchants. The fresh fundraise has come amidst Dukaan’s legal battle with Sequoia-backed Khatabook.
The funding round also saw participation from Weekend Fund, Appyhigh, and Venture Catalyst. Some angel investors who participated in the round were Haresh Chawla, Kunal Shah, and Atul Jain among others.
Three co-founders Suumit Shah, Subhash Choudhary and Kaustub Pandey have diluted their collective stake from 76.95% to 46.84% post allotment of this round. Shah remains the largest stakeholder, controlling 22.19% whereas Pandey and Choudhary retain 7.89% and 16.76% stake respectively. Anuraag Meena is the fourth co-founder of Dukaan.
The Mumbai based company has also been in news for a while due to its removal from the Google Play Store. Dukaan app has been barred from downloading on Play Store as well as on android application package or APK.
The Mumbai based company also passed a special resolution to convert 242 convertible debentures held by Matrix and Lightspeed equally into 242 Seed CCPS worth nearly Rs 2 crore.
Dukaan has been valued nearly $22.5 million post this funding tranche. Notably, the valuation has witnessed a jump of 18X from its previous valuation of Rs 9.1 crore when it picked up capital in August earlier this year. The issue price per share has also increased 11X from Rs 7,444 to Rs 82,189 per share during the same period.