Due to the coronavirus pandemic, offline retailing was severely affected in 2020, leading to increased e-commerce, online grocery retail sales and birth of numerous retail start-ups in India. JioMart, BigBasket and Grofers, along with giants Amazon and Flipkart, emerged as the top players in increasing the number of sellers on their platform. These companies saw an increase in the average number of orders and app downloads during the lockdowns and quarantine periods that lasted well over seven months.
Growth of Online Retail Start-ups will continue
Many venture capitalists in India and worldwide estimate that internet usage has surpassed all records. India has over 500 million daily internet users. This has opened new avenues for newly created companies and start-ups to grow substantially.
As a result of innovation in new retailers, social enterprises and warehouses, the retail sector is pegged to expand. In e-commerce, there will be a significant increase in the direct-to-consumer or D2C segment in 2021. These upward trends have also increased investor’s appetite, as is evident in music accessory start-up boAT, which has raised over $100 million in 2021 alone.
Retail start-ups are set to grow as a result of innovation in new retailers, social enterprises and warehouses, specially in the D2C segment.
Tech Retail Start-ups – Shoopy is making waves
In the first round of funding, retail start-up Shoopy raised $250,000 from Campanile Investments and Delhi-based investment firm Redcliffe Capital. Shoopy uses existing resources to accelerate a business’ growth. Shoopy is a multilingual application that allows local marketers and business owners to connect easily. It effectively manages invoices, inventory levels and other aspects of the business. Shoppy competes with e-commerce giants to help small and medium-sized enterprises (SMEs, MSMEs) develop digital infrastructure.
Top Investors Looking to Invest and Partner up with Retail Start-ups this year
Venture Catalysts – A catalyst for entrepreneurship
Venture Catalysts is an integrated incubator for start-ups. Its purpose is to provide a combination of funding, consult and networking for retail start-ups and new businesses. Catalyst’s portfolio is represented in 25 cities in India and four other countries including UAE, Hong Kong, UK and Singapore.
Angel Investment Network- Increasing partnership opportunities
Angel Investment Network is a leading angel investment firm that actively brings together renowned investors for different sector start-ups, including information technology, pharmaceuticals and retail. It also has a history of supporting large-scale industries such as e-sports and gaming, tourism and construction.
Stanford Angels and Merchants- Climbing the global entrepreneurship wall
Stanford Angels and Entrepreneurs (SAE) is a wide-ranging investment firm with extensive experience, knowledge and business skills. The organization provides opportunities for potential collaboration with the Stanford community in Silicon Valley. Its commitment to developing a business start-up ecosystem in India is a crucial driving force for funding start-ups. SAE provides an excellent partnership platform to find and expand a network of aspiring entrepreneurs and investors.