Social Commerce 2.0 Gains Momentum in India: How Creator-Led Platforms Are Winning Gen Z
After a challenging first wave, social commerce is making a strong comeback in India, particularly among younger consumers who increasingly prefer shopping through creators, videos, and social feeds rather than traditional search methods. This resurgence marks a significant shift in the e-commerce landscape, driven by evolving consumer behaviors and technological advancements.
Investor Interest Returns to Content-Led Commerce
Fundamentum-backed Wishlink is currently in advanced discussions to raise ₹20–25 million from both existing and new investors, according to sources familiar with the matter. This development signals renewed investor confidence in content-led commerce platforms, following several early ventures that either failed or were acquired by larger companies.
"The company has grown rapidly and anticipates new investors joining this funding round," revealed one source with direct knowledge of the negotiations, noting that the deal is expected to conclude shortly. Wishlink is not alone in attracting investor attention. Last year, LehLah secured a $1.5 million seed round from Nikhil Kamath's Gruhas fund, while other platforms like Hypd have also demonstrated steady growth following their initial seed funding rounds.
The Evolution from Full-Stack to Infrastructure Focus
This renewed interest follows the consolidation or collapse of earlier social commerce startups such as Trell, Bulbul, and SimSim, which collectively raised over $100 million in early-stage funding between 2016 and 2018 but struggled to achieve sustainable scale. Unlike these first-wave companies that attempted to build comprehensive shopping applications handling everything from discovery to logistics, the new generation of platforms is adopting a fundamentally different approach.
"If you look back eight to ten years, the primary challenge in e-commerce was supply," explained Ashish Kumar, co-founder and general partner at Fundamentum, an early supporter of Wishlink. "That problem has now been effectively resolved. Today, Indian e-commerce has transitioned from scarcity to overload. The current challenge is curation—consumers frequently need assistance determining what they actually want."
The Infrastructure Model: Connecting Creators to Marketplaces
Modern social commerce platforms are positioning themselves as technological intermediaries rather than full-stack retailers. They serve as crucial infrastructure connecting creators, brands, and established marketplaces. This model enables influencers to tag products, generate affiliate links, monitor conversions, and direct transactions to platforms like Myntra, Amazon, or brand websites that already possess robust fulfillment capabilities.
"Influencing has become mainstream," observed Ashna Ruia, co-founder of LehLah. "We're strategically riding that cultural wave." Founded in December 2022, LehLah collaborates with prominent marketplaces including Myntra, Meesho, Nykaa, and Ajio, alongside electronics and direct-to-consumer brands such as Samsung and various FMCG labels.
Market Dynamics Favoring Social Commerce 2.0
Several market trends are converging to support this new model. Short-form video platforms like Instagram and YouTube have trained consumers to discover products through creator content. Simultaneously, improvements in digital payments, logistics networks, and the proliferation of D2C brands have significantly reduced friction in online purchasing experiences.
Brands facing escalating digital advertising costs are increasingly reallocating budgets toward performance-linked influencer commerce. This strategic shift is now yielding measurable business outcomes for major e-commerce players.
Measurable Impact on Business Performance
"Contemporary fashion discovery is shaped equally by inspiration and intent," stated Sunder Balasubramanian, chief marketing officer at Myntra. "Engagement with social commerce content has resulted in approximately 10% higher conversion rates on our platform. What originated as a marketing initiative has evolved into a substantial business driver."
Creator-led commerce now contributes over 10% of Myntra's total platform revenue, according to company disclosures. Myntra launched its dedicated Studio platform in 2020 to capitalize on this growing trend.
Superior Unit Economics and Growth Potential
Investors supporting these newer platforms highlight unit economics as the most significant differentiator from earlier models. "Wishlink's customer acquisition cost is virtually zero because traffic originates from Instagram and YouTube," Kumar emphasized. "From a return-on-investment perspective, content commerce demonstrates greater efficiency."
He further noted that while traditional marketplaces require substantial capital to drive growth, content commerce platforms benefit from distribution networks already established by creators. According to Mordor Intelligence, India's social commerce market reached $29.27 billion in 2025 and is projected to grow at a 37.5% compound annual rate, potentially reaching nearly $144 billion by 2030.
Platform Growth and Scaling Challenges
Founded in January 2022 by IIT Delhi alumni Shaurya Gupta, Chandan Yadav, and Divyansh Ameta, Wishlink has raised approximately $10.1 million from investors including Elevation Capital, Trifecta Capital, Wellfound, and over 70 angel backers. LehLah has also demonstrated promising traction despite its relative youth as a company.
"We've expanded our revenue approximately fivefold over the past year," Ruia shared. "Our brand portfolio has grown significantly during this period." However, most platforms in this space remain relatively small, and the true test will be whether they can scale effectively without compromising operational efficiency.
Key Challenges and Future Considerations
Founders and investors acknowledge that earlier social commerce attempts encountered structural mismatches between content and commerce objectives. "With content commerce, users primarily seek entertainment or knowledge," Kumar explained. "When commerce is layered atop this foundation, traditional conversion metrics often prove inadequate."
Execution complexities further exacerbated these challenges, as content creation and commerce operations demand distinctly different skill sets that few teams managed to balance effectively. As platforms scale, maintaining quality emerges as the paramount constraint.
"India faces no shortage of brands or creators," Ruia noted. "The primary risk revolves around quality maintenance. Scaling with appropriate brands and creators while preserving user experience represents the central challenge moving forward."
Essential Insights
- Wishlink is pursuing up to ₹25 million in funding within the social commerce sector
- New-generation startups are avoiding logistics and fulfillment complexities, instead positioning themselves as technological and affiliate layers for established giants like Amazon and Myntra
- Social commerce contributes over 10% of Myntra's total revenue while delivering approximately 10% higher conversion rates
- By leveraging existing influencer audiences on platforms like Instagram and YouTube, startups are achieving near-zero customer acquisition costs
- The industry has transitioned from addressing supply challenges to solving discovery problems, with influencers serving as essential filters for overwhelmed consumers
