Startup Baggout Brings Social Networking to E-commerce

Baggout is a social ecommerce platform that curates products based on friend recommendations, and gives users cashback on purchases.

For all those who research products before finding the one to buy, a startup based out of New Delhi has found a way to simplify your search. What’s more, it also gives you cash back on purchases made, over and above the discounts given by e-commerce companies. The “social” e-commerce platform has been developed by startup – Baggout.


Baggout was founded in 2012 by IIT Roorkee Alumnus, Deepak Jain, and his friend, Prashant Mahajan, ex-technical architect at Scholastic. The platform was developed primarily to help shoppers spend less time on researching a buy. Users can instead browse through products recommended by their friends circle.

“Majority of the online buyers are wasting a lot of time in researching for the right product so recommendations from the people they trust seemed like an obvious solution,” says Deepak Jain, co-founder, Baggout.

How Baggout Works

Once logged in, Baggout curates a shopping list for users based on their social networking connections on Facebook and products previously browsed or purchased by them. Once the purchase is made, users can share or recommend their purchase, based on which other friends take a look at the product.

“When we buy offline, we always take somebody along to get their opinion while online buyers buy alone. We are creating a personalized catalog of products for our users on the basis of what their friends (and other Baggout users) are buying from different e-commerce sites,” says Deepak.


Users receive cashback on purchases made when they shop via Baggout on a e-tailers website. The cashback is automatically tracked by a users’ Baggout account, and they receive it once the purchase is done.

Baggout guarantees complete payment of cash in two months from the date of purchase, once the cashback reaches Rs 250.

“Since, we started giving cashback only in October we have returned less than Rs 1 lakh to the customers but the cashback in pipeline is much larger,” Says Jain

Baggout provides cashback using the commissions retailers pay them for referring sales.

Baggout currently focuses on the fashion and lifestyle segments and is targeting women. 

Developing Baggout

Baggout has been through many iterations since its inception in 2012, says Jain. The company had initially started giving cashback on the product as an incentive for users to share the purchases made by them. Eventually, due to popular demand, Baggout weaved the cashback into its regular operations as well.

“We have iterated the product a lot since our launch in May 2013 and made a number of changes based on customer feedback. We think that we are approaching product market fit,” explains Deepak.

Another challenge that the company faced was in the design of their website. The product was developed in-house, while the design UI and UX were outsourced.

“The biggest challenge was on the UI/UX side since our team had no experience on that side. However, we were able to source the expertise from some of the best people in the industry through friends,” Jain adds.

Retailers and Users on Baggout

The bootstrapped startup currently has over 35,000 registered users on Baggout, and Baggout claims to complete 40-50 transactions daily.

The social e-commerce platform also has over 50 retailers on board. Retailers include e-commerce biggies like Myntra, Flipkart, Amazon and Snapdeal. The company has tied up with retailers using their affiliate program, and in the lack of one, approach them directly, says Jain.


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