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Jumbotail: Filling India’s Supply Chain Gaps with Tech

Ujyant Ramesh — Thu, 15 Jul 2021 14:54:37 +0000

Online grocery services have become an essential part of our households, especially amidst the ongoing pandemic and the subsequent lockdowns due to it. Ordering groceries has become as easy as a tap on the phone, with plenty of options to choose from besides other services. But, behind this seamless – search, click, order, deliver – motion, lies a humongous supply chain, including producers, retailers, wholesalers, and so on.

Ever wondered how the grocery merchant you ordered a rice packet from got the same in the first place? Maybe s/he had a similar exclusive platform where s/he ordered it from?

Well, this brings us to the vast cycle of e-commerce processes for businesses and the introduction of B2B online food and grocery start-up, Jumbotail.

Jumbotail, a ‘data-centric and agile company in the B2B e-commerce domain’, gives thousands of Kiranas, producers, retailers and wholesalers a common platform to buy and sell products. Starting out small, the start-up today operates a full-stack e-commerce model consisting of its B2B marketplace platform, industry-leading warehousing infrastructure, last-mile delivery supply chain network, and a fintech platform for payment and credit solutions to Kirana store owners.

Bringing the Idea of Jumbotail Together

Like most start-ups, Jumbotail has had its fair share of ups and downs, especially given the fact that it operates in a traditional sector. It all goes back to 2008, when co-founder Mr. Karthik Venkateswaran, a former Major in the Indian Army and a marketplaces technology-product veteran, conceived the idea of aggregating coconut farming in Madurai. Though the ‘aggregation’ proposition was ahead of its time, it didn’t yield expected results.

On the other hand, co-founder Mr. Ashish Jhina, a third-generation apple farmer, continued with his management journey at Boston Consulting Group in New Delhi. The duo came together at Stanford University and discovered a shared interest in the Indian grocery and food supply chain, more towards its gaps and filling the same. They went on to pursue their respective paths, but the idea lingered at the back of their heads and was discussed on multiple occasions between the two.

Both Karthik and Ashish, primarily being from agricultural backgrounds, had first-hand experience with regard to the gaps in the food supply chain, including mismanaged distribution and procurement at Mandis. More prominent for them was the gap between retailers, wholesalers, and producers besides logistics, payments, and other challenges.

In 2015, the duo launched Jumbotail to fill this gap and bring the trio of retailers, wholesalers, and producers together on one single platform in order to streamline the process. Their respective combined backgrounds in agriculture and management played to their strength.

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While the Indian agricultural scene is a backbone of our economy and society, it also has a vast number of gaps. Jumbotail is the bridge that is aimed at closing those gaps.

‘Jai Jawan, Jai Kisan, Jai Dukaan’: Power of Aggregation

Jumbotail started out with a simple app in the year 2015, a time around which the internet wasn’t as prevalent and cheap as it is today. As a result, it faced challenges such as hesitancy and lack of trust from people to use the app. However, deriving inspiration from successful online business models of Amazon, eBay, etc., it gradually convinced people about the potential future of online marketplaces such as its booming landscape, revamped communication, its role during a disruption such as demonetization, and how Jumbotail stood as a collective alternative for all this.

Jumbotail realised the issues in having non-streamlined networks at the distributors (wholesalers) end who faced communication discrepancies and time constraints. Similarly, at the other end with Kirana stores, it figured out issues such as poorly structured procurement methods, resultant financial constraints, largely low educational qualifications, and tech and market awareness due to which it designed its marketplace (an app) in a simplistic user-friendly manner that effectively catered to all of this.

This app was also made compatible on low-end 2G/3G network phones and the company introduced fintech platforms to it that enabled transactions and provided access to working capital credit. Through this, Jumbotail was able to get its idea across people, overcome major obstacles and get thousands of customers aboard over the course of a few years.

So, how does Jumbotail work?

It connects Kirana stores/retailers with the supply side. In other words, it is an aggregator and online wholesale marketplace that connects small scale retailers with wholesalers. Essentially, this happens through the app which drastically simplifies the traditionally prolonging task of retailers having to physically visit markets which would result in other issues such as financial loss due to temporary closure, warehousing, transportation, disputes, etc. This online platform opens up a whole new world to Kirana store owners by eliminating several constraints in the following ways.

Procurement and Transportation

What would initially require retailers to shut their stores for a day or two and result in unnecessary communication, transportation and time/financial loss is now available at the retailer’s fingertips wherein orders can be placed online. And for transportation logistics of the same, the company ties up with vehicles on a monthly lease and has 110 vehicles currently in the running.

Stocking and Warehousing

The start-up provides a makeshift warehouse for regular customers/retailers who face the issue of limited storage capacity amidst stocking up goods in bulk in order to prevent multiple commutations to distant places.

Versatility

Instead of retailers having to visit multiple places for different kinds of products, the app streamlines the same by allowing access to over 3,500 varieties of products that are placed in its various sections.

Jumbotail also seems to have a clear understanding of its target audience which is reflected through its app’s extremely simple interface and friendly add-on features. For instance, its ‘GoldenEye’ and multilingualism feature simplifies and educates Kirana store owners regarding market trends, purchase patterns, product margins, stocks, etc, without them having to spend much time researching and that too in their preferred languages. Besides, Jumbotail offers to install data packs into customers’ devices and add the same in their invoice post-transaction.

Collectively, through this, Jumbotail aims to re-engineer the Indian grocery ecosystem by providing fair access to markets and increased economic opportunities for millions of ‘mom and pop’ grocery retailers, brands, and staples producers and farmers.

Jumbotail’s Business Model That Paved the Way

Let’s talk about revenue now. The company runs on a B2B business model with a large chunk of revenue coming from commission collected from sellers (particularly wholesalers) who list their products on the app along with supply chain services such as warehousing and door-to-door delivery for retailers among other generic aggregator services. The company also earns from digital product placement, digital merchandising and in some cases, sampling.

Coming to funding, Jumbotail raised around $2 million in its seed funding; even before its incorporation, which convinced future investors of its ability to build the business. Credits for this growth spree go to its timely tapping in of the right market (Kiranas), its conviction of the future of 4G internet and its ability to visualize a combined future of both as an economic powerhouse of India which was proof enough for its first investor – Nexus Venture Partners.

Post this, the company has witnessed a manifold increase in interest by investors from around the world. The latest being in the third round of its Series B wherein it met its targeted $25 million single round investment by gaining a whopping $14.2 led by VII ventures.

Prior to this, it raised around $11 million in the second round of Series B the previous year along with its other stages, therefore, summing up its total funding to around $54 million. Overall, the company aims to utilise this capital to scale its business to new regions and double down its network along with launching a suite of services to help FMCG brands go to the market exponentially faster and at a low cost.

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Thanks to its rapid addressal system and how it is broaching the gaps in the industry, it has received significant backing which will help Jumbotail grow more in the years to come.

Jumbotail: Competitors and Meeting the Challenges

Jumbotail initially faced competition from big start-ups like Grofers, Big Basket, etc. Some of these brands have also had to reinvent themselves due to outrage around their business models. For instance, Grofers, which went from a logistics company that delivered groceries from Kiranas to consumers eventually ended up building its own inventory and eliminating Kiranas due to increasing demand. This, despite “simplifying” supply chains, ended up having severe consequences on Kirana stores.

Jumbotail instead operates a full-stack tech-driven supply chain to provide warehousing facilities for its wholesalers and simplifies logistics by its storefront delivery system, which helps enhance small scale business operations. Thus, committing itself to the preservation and improvisation of Kiranas, it leaves little room for their elimination.

Of late, Jumbotail has developed stronger competition in the likes of Ninjacart, Waycool, Udaan, etc. with Ninjacart being the fiercest, boasting funding of over $200 million (4 times that of Jumbotail) and a steep difference in workforce of around 2000 employees. Despite this, Jumbotail is seeing profits and seeks to ramp up its operations in several parts of the country outside its Bangalore headquarters to boost ahead of competitors in the long run. At the end of the day the main challenge comes down to staying afloat in such a saturated market while still looking out for everyone in the supply chain.

The ‘X’ factor: What Made Jumbotail Stand out?

The start-up has managed to adapt to various different scenarios of the grocery-agriculture industry and cater to some of the major demands of Kirana stores’ even during times of major inconvenience. For instance, the ongoing pandemic where they could boast about being one of the only companies in their sector to have profitably functioned during some of its most stringent months. Thanks to its ‘J24’ programme which connects Kirana stores to its own hi-tech streamlined supply chain network, it stood as an exclusive alternative for traditional offline players that were highly disrupted during the lockdown crisis.

Another distinguishing factor is Jumbotail’s understanding and analysis of mistakes of those who have directly jumped the gun of profit, without genuine consideration of their brand’s actual motive. This gives Jumbotail an edge over its competitors who have faced the wrath of accusations of “wiping away” small scale stores and farmers.

Current Status and Upward Trends

Despite its tough competition, Jumbotail has managed to pass the test of time. Subsequently, the pandemic seems to have done little or no harm due to its well planned techno-centric and futuristic arsenal which has clearly worked in its favour.

While companies lost about 75 per cent of their workforce, Jumbotail managed to almost retain this amount due to its full-stack tech-driven supply chain and logistics model and its provision of capital credit to customers via its fintech platform.

In short, it paved the path for emerging and “failing” companies (those affected by the pandemic) through its optimal tech usage in restoring and restructuring the Indian grocery-agriculture supply chain; thus pioneering and gearing up for possible future distortions such as the Covid-19 pandemic.

The Road Ahead of Jumbotail

Latest trends have also shown that Jumbotail plans to expand its business across multiple geographies. The company also aims to increase its pre-existing omnichannel integrations by adding several more hyperlocal platforms. All of this, with the help of its $14.2 million raised in its Series B3 funding earlier this year.

So how far will the company go? What does the future hold for Jumbotail? Only time will tell. At the moment, it looks bright and they certainly seem to have stuck to their tagline. Their ultimate goal to streamline and rebuild India’s supply chain along with garnering the retailer’s trust only seems to be moving upwards. Therefore, they certainly have made their mark by overcoming obstacles and turning challenges into opportunities.

For more inspiring stories like this, read our Inspire Section!

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Sutradhar, Bringing Indian Mythology to Your Phone

DU Desk — Sun, 11 Jul 2021 10:35:13 +0000

What is Sutradhar Startup all about?

Sutradhar, first of its kind platform dedicated for stories from ancient Indian literature, is a Gurugram-based media content startup. It brings the Indian mythological stories to the smartphone users in the form of short videos and clips, without losing the essence of the story.

During the COVID-19 lockdown, there was a surge in the demand for Indian epics in vernacular media. With Ramayana, Mahabharata, and Shri Krishna series being aired, it topped TRP charts. This is when the startup came into being in 2020, founded by Satish Meena and Gaurav Tiwari. The startup aims to bridge the gaps between how these Indian mythological stories are delivered on a smartphone.

What’s the Purpose of Starting this Startup?

The ancient mythological stories never lose their essence whenever there is a shift in the technology, be it any platform, these stories are remade accordingly. But nothing substantial has been created for the smartphone category. Smartphone users are a distinct category of users who want precise and engaging content in a short video format. Sutradhar app offers short videos of about 2 to 10 minutes where the content is purely based on ancient Indian mythological stories.

In the era of Gen Z and Millennial, there is a huge market of smartphone users. Sutradhar aims to target this 500 million user base by providing content in various languages. The major purpose of creating this application is that there are millions of stories and myths that shape our day-to-day activities. Starting from celebrating festivals to the languages we use; these stories are rooted within Indian minds. These stories being key to our heritage, our culture, it is important to bring them on a platform where it can be easily accessible to the people.

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The ancient mythological stories never lose their essence whenever there is a shift in the technology, be it any platform, these stories are remade accordingly.

How has the Response Been?

Sutradhar mode of channeling is through video formatting and vernacular languages, which help them reach a wider customer base.

The app publishes professionally generated short videos on mythological stories on a daily basis to the smartphone optimized users. Since its launch in October 2020, the app has seen over 100,000 downloads with 50,000 monthly users. It is slowly gaining traction among the people in the 25-45 age group residing in metros, tier II or III cities, who are comfortable with online transactions.

What is the Market Size of Mythological Content in India?

The market space for mythological content creators and providers is very much attractive for investors. Because of the large audience size and increasing smartphone penetration the market for providing such content and developing such apps is very promising.

The religion and spirituality market in India is approximately worth $44 billion and is expected to grow with a CAGR of 10%. There is an opportunity to build a commerce community for selling products and services. As the market is mostly unbranded and unorganized, it opens up a space of creating D2C brands in this category.

Insights for Startups into this Space

The major takeaway from Sutradhar is that it provides content in a short video format and that too in multilingual form. The app is available for android and iPhone users. It also caters through its own website and via YouTube as well. The startup is also planning to expand its content from fictional to other genres of writing.

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Pandemic the Game Changer, Cars24 to Double Its Valuation

Anju Nambiar — Wed, 07 Jul 2021 05:34:04 +0000

Cars24 is a Gurgaon based start-up which recently joined the unicorn league. Cars24 is the biggest online marketplace in India for used vehicles.

Spike in Website Traffic with the onset of the pandemic

Cars24 reported a four-fold increase in their website traffic. It is astonishing that this increase began precisely with the start of the pandemic which clearly shows the increased demand for used vehicles during the pandemic.

Upcoming funding deal valued at $250 M

The company is working out a funding deal valued at $250 M backed by investors including DST Global. If successful, this deal could double Cars24’s site value between $1.6 M to $2B.

Renewed interest towards pre-owned cars during the pandemic

The demand for used vehicles has spiked in India since people are afraid to take public transport. The second-hand vehicle market exploded during the pandemic. Since the spending thresholds have reduced for people from all walks of life, investing in a brand-new car has taken a backseat. There is also no concern regarding the status symbol which a pre-owned car might bring to the table.

Business model of Cars24

Cars24 is aimed at easing the process of the used car, pre-owned motorcycles and scooters’ trade in India. Cars24’s business model is to price vehicles based on AI algorithms. The insights from the data will match the least troublesome car with its soon to be owner.

Cars24 have their own reconditioning facilities where vehicles to be listed for sale will be refurbished. The refurbished vehicles can be returned within 7 days without the need to furnish a reason for the same. Each vehicle sold through Cars24 will enjoy a six-month long warranty period. The business model of Cars24 also includes customised financial services and vehicle lending products.

Global expansion to new markets

The start-up is actively exploring new markets and has already set up base in Australia and the United Arab Emirates. They also have plans to stretch their presence in more middle eastern and southeast Asian markets.

For 2021, the company has already set aside funds worth INR 738 Cr ($98 M) for expansion of its international operations. Through their global expansion, they want to cater to new and unique consumers across the world.

Cars24 was particularly interested in the Australian market since the consumer base here loves cars and had never experienced a business model quite like Cars24 which made it simple to trade in pre-owned refurbished vehicles.

Future and Forecasting

Currently, Cars24 is operating 20 car studios in more than 10 locations. About 400 cars are being catalogued by the company each day. They have an assortment of more than 10,000 cars.

For the year 2021, they have planned to establish 7 refurbishment workshops spanning an area of 50 acres in total. They also want to hit targets of 20,000 refurbished cars monthly.

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According to digital marketing agency AdLift, India's influencer market is pegged at $75-150 million a year, as compared to the global market of $1.75 billion.

What’s in it for me?

Since its inception, Cars24 has been a seller focused platform for used cars. But since then, they tactfully changed their stance from being a seller-focused to being a buyer-focused firm. They offered a fair incentive for customers who wanted to buy used automobiles from them based on a purely online experience. The incentive of a 7 day no-questions-asked return policy and the 6-month warranty sealed the deal for Cars24.

While making the transition to a buyer-focused used car dealership, Cars24 had to shoulder the responsibility of logistics, in-house refurbishing via their own workshops.

Their focus on doing quality checks of the vehicle through a 140-point inspection before sales has helped them find favour with customers. Cars24’s venture into the financing business in 2019 proved to be profitable to them since they reported earnings of INR 10 Cr ($1.3 M) purely from finance products and loan interest.

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Albinder Dhindsa’s Journey: Forging a Path to Becoming a Grocery King

Keegan Kennedy — Sun, 13 Jun 2021 06:35:07 +0000

The average Indian household is incomplete without having to make daily trips to the local paan dukan or kirana. We all have memories of running down to the shop across the road to pick up ingredients for that one special meal your mother would make on Sundays or more realistically, when she was expecting guests. Be it for staples like bread, milk, eggs or for more specific items, this daily act has for generations been embedded in the Indian culture so passively that it would be almost impossible to think of an alternative to procure them. Well, that is the challenge every entrepreneur faces – conventionality. To change the way people carry out their day-to-day functioning is no easy task, but Albinder Dhindsa is not one to go down without a fight. The fight here being the inception of a massive online grocery platform with a valuation of approximately $115 million – Grofers.

A Grain of Salt: The Early Years of Albinder Dhindsa

Not all entrepreneurs are cut from the same cloth and Albinder Dhindsa’s story is a strong advocate of that notion. Born and brought up in Patiala, Punjab, Dhindsa went on to create a rather impressive track record before trying his hands at entrepreneurship.

He had no intention of slowing down after completing his Bachelors in Technology from prestigious IIT Delhi, following which he kickstarted his career in the field of transportation and logistics. Having acquired valuable experience at URS Corporations (2005) and Cambridge Systematics (2007) as a Transportation Analyst and Senior Associate, respectively, Albinder Dhindsa was not satisfied with his current position.

With a desire to explore more in the field and a strong intention of starting his own business, he decided to take a leap of faith by quitting his job in pursuit of a Master’s in Business Administration from Columbia University.

It was in the United States where Dhindsa met Saurabh Kumar (Co-founder and COO of Grofers), who would go on to play an important role in the success that was to come towards their start-up. The duo met during their respective stints at Cambridge Systematics and instantly clicked owing to their shared interest in the field of logistics and transportation besides similar backgrounds. Although they did not have any intention of launching a start-up together at that time, they did keep in touch.

After completing his MBA, Dhindsa attempted to apply what he had learnt on home ground and picked up a job at popular food delivery company, Zomato as the head of international operations. He spent almost 3 years at the company, absorbing as much first-hand information as he could about supply chains and the workings of a company in the delivery sector.

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Even though the market was so saturated, this entrepreneur realised that hyperlocal was the key to success - the untapped goldmine.

How a Personal Touch Reinvented a Company

All this while, Dhindsa and Kumar remained in touch and brainstormed occasionally over new ideas. The former’s analytical skills came into play when he, along with the latter noticed that the delivery system in India was in absolute chaos. Even though there were many big players in the logistics or hyperlocal delivery at that time, there was a lack of communication due to which customer service was not being optimised. In other words, they had discovered that if the hyper-local market space was tackled in the right way, the results could increase tenfold.

Albinder Dhindsa had very smartly identified this opportunity before any other firm, which goes to show that the entrepreneurial trait was prevalent in him which got activated when he saw the business opportunity in the gap. Working at Zomato was like a pool of information and first-hand experience regarding the food supply chain for Dhindsa and acted as a catalyst to push the entrepreneur to take the plunge. It was during his stint at Zomato itself that he, along with Kumar, began working on his ambitious project – Grofers.

The two were so sure of their observation that they started their first company, OneNumber in 2013. Initially, they were just a delivery company that focused on dropping and picking up items around the neighbourhood. These items could be anything from groceries to cosmetics to accessories among others. They had a small team of delivery boys who worked much like Uber drivers. As soon as an order was placed by a customer, the nearest delivery boy would pick up the item and have it delivered.

Having personally spoken to small merchants and shop owners, Albinder Dhindsa knew too well the problems faced by them. In fact, the two carried out around 50-60 deliveries within a 4km radius themselves to understand the hindrances in such an unorganised system of delivery.

Although OneNumber did see success, Dhindsa felt that the flaws in the hyper-local market in India were not exploited enough. He had his eye on the bigger picture.

Despite having a wide range of businesses sign up with them, they found that the majority of the orders came from groceries and pharmacies. With that, the concept of an e-commerce platform solely for the purpose of grocery shopping came into being and OneNumber was rechristened Grofers.

Grofers started as a B2B model but shifted to a B2C soon. They facilitate delivery of almost 20,000 different products spread over categories like grocery, bakery items, cosmetics, fruits and vegetables, meat, dairy, flowers, toys, accessories, personal and baby care, among others in a maximum of 90 minutes!

Dhindsa, being a man from humble beginnings, understood that customers value reliability above everything. To get customers to trust an e-commerce platform to handle their grocery shopping proved to be quite a task. Moreover, to get smaller merchants to sign up for their services was even more challenging. However, Dhindsa was determined to create a system that worked for everyone. Thus, he gave top priority to the merchants. The sign-up process was made extremely easy.

Another important aspect that worked in the founder’s favour was his belief in treating the customers and merchants the same. He understood the importance it would have in spreading awareness of the brand. Dhindsa knew exactly how to build a strong, organic user base, and within no time the brand established itself as a force to be reckoned with.

That being said, they were only breaking even despite having moved products worth almost 8 lakhs within 3 months.

Grofers had a seed funding of just $500k which came from Sequoia Capital followed by a Series A funding of $10 million by the same investor along with Tiger Global Management in 2015. By November 2015, the company had managed to raise $120 million in funding although that was not reflecting in their performance. By the end of 2016, they had reported an annual loss of Rs 225 crore and continued to do so for the following months.

After they were forced to lay off 10 per cent of their staff and temporarily suspend services, Dhindsa had to come up with new ways to actually get the ball rolling.

Albinder Dhindsa: Moving Beyond the Fear of Failure

To keep the start-up up and running successfully, it was important for Albinder Dhindsa to expand Grofer’s reach in such a way that it did not hamper its customer service. His move to launch a mobile application for Grofers was probably what saved the company from losing its influence in the hyper-local market. They provided their customers with a quick and easy way of doing their grocery shopping, with just a click of a button. When it comes to grocery shopping, there are three options to possibly choose from. One could either go to your local kirana, a store like Spencer’s or more, or a superstore like Big Bazaar.

Albinder Dhindsa’s vision is to eliminate the above mentioned options and solidify the start-up as the one-stop destination for everyday needs. Quite a bold claim considering the competition in the market but not a shred of doubt is seen in his future plans for the company.

Despite making changes, Dhindsa found that the whole delivery process would be much smoother if they took supply in their own hands. By cutting out the middlemen in the convoluted supply chain, the company could save valuable time and resources by dealing directly with companies.

A strong and proactive supply chain was mandatory to keep the company afloat. Dhindsa ensured this by maintaining a good network of retailers, manufacturers and distributors. The bond shared was symbiotic, improving the overall performance of the company.

A whole lot of investment was needed for this. At the preliminary level, no investor wanted to get into a business that was not making ‘enough’ revenue. Gradually, Dhindsa and Umar managed to convince traders and set up 60,000 sq. Ft. Storage facilities in Delhi, Bengaluru, and Gurgaon. The business began scaling up from 2017 and the average order fee shot up.

Dhindsa maintained transparency by integrating a rating system in the app which allowed users and the company itself to monitor the performance of the merchants. Any merchant with a rating of below 4 gets removed from the platform. The company also keeps a strict check on how efficiently orders are being processed. This attention to detail was reflective of the ideator’s qualities and brought the start-up into the limelight and by the looks of it, they are here to stay there.

Grofers is not the first online grocer to have their own supply chain, but they are definitely among the fastest growing ones, owing it to Dhindsa’s aversion to complacency. He knew what needed to be done to plunge Grofers into the hyper-local market space and give firms like BigBasket and JioMart a run for their money.

Dhindsa remained unfazed by the adversities and left no stone unturned to find new methods to expand. By focusing on the supply chain rather than the products, Dhindsa managed to create a massive network that provides top quality service at a reasonable price.

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Dhindsa envisioned a one-stop-shop for all the grocery needs of the customer, which is one of the reasons Grofers is such a rapidly growing giant.

Proceed to Checkout

Grocery shopping, unlike shopping for clothes or other accessories, is relatively simple. There is no hassle of doubting the size, colour or fit of the item. Therefore, Dhindsa stressed the importance of having a user-friendly application. Numbers and statistics aside, Dhindsa’s frankness helped him understand consumer behaviour better and that ultimately helped him win over a significant share of the market in a relatively short span of time.

After almost 8 months of contracting farmers and setting up connections over the country, as of today they have above 400 products under their name. With customer acquisition and retention being their top priority, Albinder Dhindsa is set to expand his reach and revolutionise grocery shopping in years to come.

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Is Online Grocery the Next Big Thing?

Shalmoli Sarkar — Wed, 19 May 2021 03:35:04 +0000

Online grocery is witnessing a spike in demand since consumers continue to seek convenient shopping channels for buying the daily essentials and grocery being top in the list. Delivery of groceries online is undoubtedly the next big thing, with a market size estimated to grow eight times by 2026. Adding more edge to the numbers is the home-grown consulting firm RedSeer stating that the online grocery is currently growing at 41-49 percent and is likely to stay the same till the end of 2021, heading to become a market worth $850 Million by 2025.

Key Drivers

The pandemic has caused a paradigm shift in consumer preference and buying behaviour.

Virtual working model has blurred the lines between professional and personal life, creating a never-ending schedule. An exhausted individual in the virtual workforce would like to purchase more easy-to-cook foods within the comfort of home delivery which offers hassle-free shopping.
Consumers are now emphasising on boosting immunity and fitness and therefore are showing a preference for healthy nutritional food and health drinks.
Working out and daily exercise has now become a regular activity, with focus on home gyms and exercise equipment, protein powder and shakes of global brands are on demand; these being available on E-grocery stores.
Health being the prime importance and top priority there is an increase in willingness to pay for premium and superior quality nutrients and healthy food.
Less or no option for offline buying and hence the consumer is made to look at digital channels.

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As per RedSeer the online grocery is currently growing at 41-49 percent and is likely to stay the same till the end of 2021, heading to become a market worth $850 Million by 2025.

E-commerce start-ups tapping into online grocery

India’s online grocery market turned out to be the next battleground with Flipkart, Reliance JioMart, Amazon, Paytm Mall, Shopclues, Snapdeal and Swiggy rushing to enter the space. This led to a sharp spurt in business in recent months not only in the metros but in Tier 2 cities and beyond leaving brands like BigBasket and Grofers no longer as front runners. The lucrative untapped opportunity of the massive Egrocery market prompted Meesho, the recently crowned unicorn to pump in $300 million into Egrocery. In the next 18 months Meesho will focus on enabling small-time grocers belonging to tier 2 and 3 cities to shift business online and break the notion of online grocery largely being a tier-I city phenomenon.

Market trends which are here to stay

The online grocery market is not only a lucrative one, but a floating one too. The demand for ordering groceries online was so sharp during the first phase of the pandemic that even large firms like BigBasket struggled to keep pace, given the supply chain challenges due to the restrictions. With demand exceeding supply, the real estate start-up, No Broker wants to tap into the e-grocery market in order to stay afloat in the business and survive the times of dwindling revenues. Most of these start-ups that earlier had not presence in the e-grocery verticals have partnered with kirana stores, local modern retail outlets and farm to fork start-ups like NinjaCart, Gully Network, Jumbotail, and supermarket chains like Spencer’s Retail, Vishal MegaMart, More, Metro Cash & Carry, and FMCG companies like ITC, to fulfill orders.

Convenience and apprehension of getting contacted by the virus are two behaviours exhibited by the consumers that are tailwinds to the online grocery’s exponential growth. This growth will sky rocket further with grocery being the category where most marketplaces’ investments will be made in the next five years. This thereby gives strong indication that staying in sync with time – traditional grocers should transform themselves into the online channel by partnering with e-grocery businesses and offering an omnichannel experience of buying essentials to the customers.

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Are 24/7 Open Stores the New Normal in India’s Retail Industry?

Aakash Sharma — Sat, 08 May 2021 11:05:04 +0000

Even in 2021, India does not have a solid 24/7 open stores and shopping tradition. There are, however, some companies operating 24 hours a day, including the subsidiaries of big players such as Reliance Retail, Future Retail and DMart.

The latest Deloitte report states that in 2017, modern retail made up 9% of the total retail trade in India. By 2021, the new marketing rate is expected to reach 18% and move towards a consumer-friendly aspect rapidly.

24/7 Open Stores – Market and Competition

According to a release by the World Economic Forum, the Indian retail market is worth ~$1.3 trillion, and India will be the third-largest consumer market at $6 trillion by 2030. A 24-hour open store format in the future is an ample opportunity for the retail players to catch up in the vast market. A 24/7 open stores market usually makes sense in cities, large neighbourhoods or tourist destinations with great strength, and new businesses are tapping just this segment.

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For the 24-hour open stores' format, retail companies need to temper their expectations and restrict them to certain clusters.

Although convenience stores are not there just for monthly ration shopping, they meet an urgent need for FMCG products. For 24/7 open stores, the location should allow easy access and justify the unit economics of the store. The 24/7 formats could work in mixed-use developments, condominiums and office spaces.

Will 24/7 Open Stores Work for India?

Recently, a subsidiary of Future Retail Limited announced plans to open 7-Eleven branded stores in India. 7-Eleven has more than 60,000 stores worldwide, which serve as a warehouse for fresh, packaged foods, beverages and products for daily use.

In India, 7-Eleven will be urban-centric. With the development of modern commerce, India has great potential for this format of retail stores. According to a report published by Nielsen India on retail reform in India, sales of public supermarkets have increased by 22% in recent years. However, for 24-hour innovative stores to succeed, retailers will need to find unique suggestions to enhance the customer experience.

The New Shop – Modern India’s 24/7 Open Store

New Delhi based The New Shop is a brand that sells groceries and other FMCG goods 24 hours a day. The New Shop was launched in March 2019 by the sister-brother duo Astha and Charak Almast and their mutual friend Mani Dev Gyawali.

The company has stores in residential areas, train stations, bus stations, subways, fuel pumps and tourist attractions across five major Indian cities. The New Shop sells necessity goods such as groceries, snacks, ready meals, beverages, dairy products, pastries, personal care and hygiene products.

24/7 Open Stores – A New Possibility for New Businesses in a Vast Market

In any case, the Indian urban market is ready for 24/7 open stores arrangement as life has become fast in Indian cities and customers need their lunch, breakfast, dinner and much more on the go. Traditionally, in the US and UK markets, such stores have been designed to meet the needs of urban customers, adapting local store products to increase local customers and footfall. In many markets, these stores also offer other services that allow consumers to pay for amenities like phone calls and utilities, along with shopping.

To grab customers’ attention, start-ups in the retail world can run their businesses through franchises that understand the local consumer and the environment. Nevertheless, changes in consumer behaviour and lifestyle will drive the growth of 24-hour convenience stores – people’s retail needs are more spread out today.

The post Are 24/7 Open Stores the New Normal in India’s Retail Industry? appeared first on Dutch Uncles.

OkCredit: The Kirana Tech Story Beyond Just Payments

Shalmoli Sarkar — Wed, 07 Apr 2021 02:35:05 +0000

A hard-bound fat notebook generally bright red with the symbol of ‘Swastik on its first page has been the recordkeeper of the monthly credits of the neighbourhood’s Kirana shop. But what seemed to be cumbersome for the local shopkeepers was the task of tallying through those small bills or slips of paper, that have a higher chance of getting misplaced and prone to human errors. Any mismatch found while settling the outstanding will lead to a sour customer experience.

There is a visible gap here, where the larger corporates could afford automated account management platforms there was none for the local shopkeepers, which made them stick into the same old notebook format of managing accounts for several years. Where digitisation is burgeoning into every sector, three IIT graduates thought to bridge this gap by introducing a digital ledger app for small business owners that digitises their transactions and documents payment and freeing them from the ordeal of maintaining manual accounting books.

How is OkCredit Disrupting the ‘Bahi Khata’ Management

OkCredit, founded in 2017, is the brainchild of three IIT graduates Gaurav Kumar, Harsh Pokharna, and Aditya Prasad. Realising that most of the small business owners are shy of using new technology and but at the same time there is a deluge in the smartphones, their product OK Credit runs on a basic smartphone that equips the small business owners and their customers with an uncomplicated and secured way of maintaining credit and debit records of their business on an account basis. For ease of usage and relatability, OkCredit supports 13 different regional languages on its platform and has a voice note feature for the users to record the transactions. OkCredit brings efficiency in business by quick settling of balance amounts by allowing the local shopkeepers or Kirana store owners to view its monthly breakdown of credit purchases through a web page link that displays the breakdown. Instead of manual reminders for settling, it can send reminders through WhatsApp and SMS.

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It is cumbersome for the local shopkeepers to tally through those small bills or slips of paper, that have a higher chance of getting misplaced and are prone to human errors.

OkCredit : Other than Managing the Accounts

Other than being a digital account management platform it has various features – OkStaff and OkShop. For local or mid-sized retail shops there is more than two staff working but OkStaff is a one-stop staff management solution where the shop owners within the comfort of a click can manage staff salary and attendance and can send free alerts through WhatsApp or SMS. The app supports 10 Indian local languages. The workshop feature allows the local shopkeepers to have their digital shop by displaying their products and offers.

Ok Credit’s Success and Funding

The pandemic has proved to be beneficial for OkCredit as it played a big role in reviving the small and medium businesses by aiding them to get back their outstanding amounts. In 2020, Ok Credit captured around 0.5 percent of the total GDP i.e. a transaction worth $ 40 billion. It currently has 2.4 crore registered users and 5.5 lakh users are recording transactions everyday. In 2020, the app has witnessed more than 800 million transactions with usage found most in merchants belonging to the age group of 31-40 yrs and 10 percent of the users in 40-50 yrs are adopting the app due to local languages available. Business verticals such as Kirana stores, mobile recharge shops, electronics, apparel, medical stores, and eatery shops form a major chunk of the customers. OkCredit has so far raised funding of $84 million from investors such as Y Combinator, LightSpeed India Partners, and Tiger Global.

What is in it for MSMEs and Startups?

Small and medium businesses form the bedrock of the Indian economy, as according to CII (Confederation Indian Industries ) this sector employs around 120 million people and contributes 30 percent in Indian GDP. The local businesses and shopkeepers are realising that pivoting operations to digital will bring efficiency, better inventory management and a doubling of revenues. There is an aspirational change among the local Kirana owners as they want to equally compete with the e-commerce giants. Hence, the future seems bright for the startups who want to bring different digital solutions to solve the business problems faced by their neighbouring local shopkeepers.

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Why Is Distribution Channel Expansion Important For Your Business?

DU Desk — Thu, 11 Mar 2021 10:35:04 +0000

Who doesn’t want their business to sell more? While selling in the digital age, one has to think of ways to get their products or services out to the customers rather than just getting more customers into the physical store. This is the age where the news of the business can travel faster than the business itself. For any new business, selling through additional venues is one of the fastest ways to gain buyers and shoot up revenues. The bottom line is that every business, no matter its size, wants to sell more of its products and services. And this can only happen if it is able to expand its market reach and acquire more customers. The most effective and efficient way to get new customers is by expanding distribution channels to address untapped markets.

Companies generally experiment with a mix of distribution options in order to determine the best strategy suitable for its expansion. Expansion of distribution channels can prove to be an effective tool to increase a business. But let us start by understanding what exactly a distribution channel is. In lay person’s terms, a distribution channel is the way a product or a service reaches the consumer. It is a significant part of a company’s marketing strategy. There are two main kinds of processes that businesses are run on. The upstream process comprises the supply chain management while the downstream process deals with distribution channel expansion. Both are equally important for a company to run successfully.

A distribution channel can directly start from the company and end at the consumer or may have a number of intermediaries in the middle. Based on the number of intermediaries, a distribution channel can be short, long, simple or complex. More number of intermediaries in the channel leads to more cost for the end consumer. Traditional distribution channels have become more fragmented, leading to newer ways of doing business but with opportunities come challenges. Some retailers and distributors risk losing income from customers who may prefer to take their business straight to the manufacturers. One of the challenges of expanding to newer ways of selling is to identity profitable means but without compromising the value chain. And that can only happen if manufactures, distributors and retailers work together.

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Before choosing a distribution channel, one has to base the decision on a number of factors.

Types of distribution channels

Placement (a.k.a. distribution) is one of the “4 Ps” of marketing: product, promotion, price, and placement. There are several advantages of distribution channel expansion like boosted profits, brand awareness, lower market risks, etc. about which we’ll discuss in detail a bit later in the piece.

Before getting into that, it is important to briefly talk about the steps required in distribution channel expansion. It starts by identifying the target market. Once that is through, the next step is to locate those markets with the highest concentrations of potential customers. One can map important information like the traffic patterns, travel times, competitor locations, business establishments, etc. in order to identify the target market more precisely.

A distribution channel can be defined as a chain of businesses which allows any good or service to reach the final buyer or the end customer. There are many kinds of distribution channels like retailers, wholesalers, the internet, etc. These channels can either be used separately or in combination with each other to find an ideal mix of distribution points, depending on a particular product or a customer.

Retail

One can leverage the marketing and advertising prowess of existing retailers and place their product with them. There is either an option to go for specialty stores or larger departmental stores and it will depend on the particular product which distribution channel one is willing to pick. The brick and mortar stores are not going anywhere anytime soon.

Wholesale

Wholesalers are a perfect way to make sure you have an extensive product base if one manufactures their own products. Wholesale is a better way than retail in this scenario. Wholesalers, who buy at a bulk price, don’t have to worry about storage or transportation needs. They also have increased bottom lines using this channel.

Online marketplaces

There are so many online marketplaces and shopping websites one can leverage to expand their network. E-commerce can be the go to place for businesses looking to expand beyond a geographical location.

Direct marketing

Direct marketing can provide a channel for products and services to both a more localised, niche, market and at the same time more global audiences. Direct marketing can be done through a number of ways, right from flyers and brochures to email marketing.

Telemarketing

Telemarketing is another way through which a business can reach out to a huge number of customers without the additional expense of opening a brick and mortar store.

Social Media

Social media channels like Instagram, Facebook, Pinterest, etc. are often used to target customers based on their interests. Businesses can leverage the power of great content to gain more customers through these social media platforms. A number of influencers create user-generated branded content around a product or a service which can help further grow the business.

Advantages of expanding distribution channels

More profit

Expanding distribution channels gives a company better access to its customers which can in turn lead to more sales and more revenues. Eventually, in the long-term this will result in a lower per-unit cost and boost the bottom line of the company. When you increase the number of distribution channels, you gain opportunities to sell more of your products to both new and existing customers. This will also help you develop new target markets and key consumers.

Brand building

If your products and services are available on more platforms and/or physical locations, it will increase the overall awareness of the brand and its offerings. It will help generate buzz around the brand and eventually lead to a positive image of the brand thereby being advantageous against the completion.

Reduced risk

Don’t put all your eggs in one basket, they say. Expanding your distribution channel is one such way to do so. If one is selling through one channel, it concentrates the risk factor while selling through multiple channels distributes the risk. It is more harmful for the company if profits rise and fall based on just one channel.

Logistical support

Distributors and retailers have to efficiently manage their stocks and are generally good at it. It is important to leverage their expertise. A business can depend on them for logistical support, for fulfilling daily orders, large shipments from manufacturers, etc.

Access to untapped markets

Going multichannel allows merchants to experiment with newer ways of distribution which can open their products to new sets of customers and first-time buyers, leading to more product sales. One of the ways to leverage this is through online marketplaces and international shipments.

Faster growth

If there is a plan to introduce your products to a global audience, international agents specialize in distributing products across the world. They can even help you improve your product and make it more appealing to global consumers. If you are a small business, you can use their expertise to get access to a customer base which you would otherwise not be able to reach on your own.

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A distribution channel can be defined as a chain of businesses which allows any good or service to reach the final buyer or the end customer.

Distribution channel management

Distribution channels need to be better managed to increase efficiency. Distribution across multiple channels can do more harm than good if the process isn’t planned and managed properly. And no need to worry. It can be challenging even for the best of companies. A good strategy is a result of a lot of brainstorming about what combination of distribution strategies to apply. Failing to put in a good strategy to manage these channels can lead to a poor business model and even higher costs. Some of the ways to increase channel efficiency are by carefully picking the channel intermediaries, consolidating all channels into a single, stronger channel and increasing focus on supply chain management. Not all methods will work in all types of products or services distribution. The channels you choose should add value to the customer and improve their user experience.

It is very important that one evaluates costs and profit margins while choosing a distribution channel, especially when intermediaries and third parties are involved. It needs to be made sure that it is viable and efficient, with the possibility of scaling according to demand. It is also important to teach all the intermediaries properly about the products or services so that they can act as efficient salespeople and don’t make a mistake in talking to other customers about them. One of the main sources of problems between intermediaries and customers is when product information is not homogeneous or adequate for reference purposes. One way this issue can be resolved is by standardising the process.

Both the sales and marketing team of the company should work hand in hand in order to ensure that the business channel distribution is well marketed. Achieving a balance between distribution channels is important to avoid differences between prices, positioning, launching and promotional campaigns. The balance in this sense means that there should be no discrepancy within different channels. For example, if your customers find the same products at different prices in different channels, it will be a source of conflict for your intermediaries and partners. It can also lead to a bad rep for the company and prove detrimental to profits.

One of the ways to ensure smoother distribution channel management is to start by looking for so-called ‘natural’ partners, those retailers or brands that already have a relationship with your existing or target customers. This can not only help in expanding your network but also be profitable in the long run. To ensure the success of a partner relationship, companies need to set common objectives and coordinate all promotional campaigns, agree on methods of analytics exchange, provide training on the product or service and assistance with inventory provision. This should include all intermediaries.

Before choosing a distribution channel, one has to base the decision on a number of factors. First is the type of product. If your product is perishable or is unstable, you will need it to arrive quickly and in controlled conditions. This requires a direct distribution method. The second factor is the market. Who is your market? Are you selling your product or service directly to consumers or other businesses? Your distribution channels will change according to the demand. Are your customers more likely to purchase from brick and mortar retailers, websites like Amazon, or through sellers on social media? One has to do proper market research before taking the plunge. Knowing your target audience will help you identify the most efficient way to sell products to them. The third and another very important factor is middlemen. Depending on your needs and the demands on your time, a middleman can help distribute products quickly and efficiently. It will entirely depend on one’s budget whether to have middlemen or not. It is also dependent on the business relationships with them and whether or not the market requires it.

Not just advantages, one has to keep in mind the disadvantages of distribution channel management as well. One of the disadvantages is reduced profit margins due to more number of intermediaries. If one decides to expand through a retail channel of distribution, then they should know that retailers carry multiple products—including the competitors’—which can even be counter-productive for you. Since you are not directly communicating the message of your business, there may be less attention on how it’s done and the ways and means might not be as effective and efficient as you would have directly made it out to be. Before taking the plunge, it’s important to weigh both sides and understand what distribution network is the right fit for you. As such, there’s no direct relationship between the number of customers and the number of distribution channels. In conclusion, each individual company has to find a perfect scheme, and it can either be through multiple channels or a single method of direct sales depending on the need.

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Don’t Just Dream for Success, Work for It: Suchi Mukherjee

Roopali Kotwal — Tue, 09 Mar 2021 06:36:11 +0000

Suchi Mukherjee, a successful digital entrepreneur, married and a mother of two, is a dreamer! The Founder and CEO of the online fashion and lifestyle brand – ‘LimeRoad’ may not need an introduction now, but here recalling her success story.

Education and Background

Suchi comes from a middle-class family. A graduate from St. Stephen College, Delhi and University of Cambridge. She went to London to pursue her masters in finance and economics from the London School of Economics. She worked as an ‘Investment banker’ with Lehman Brothers (1998). Later, worked with Virgin Media, eBay and Skype. She also ran and built UK’s classified businesses.

How Suchi Mukherjee Built LimeRoad

The thought and zeal to do something different and bigger led Suchi’s journey from being a successful corporate employee to an entrepreneur.

Suchi was on maternity break, scrolling through a magazine and noticed a necklace that she really liked. As the jewellery was from a local artisan in Mumbai, there was no way she could have that anytime soon. She realised that there was no consumer technology that made the availability of products easy. This triggered the idea of ‘LimeRoad’ which culminated in 2012.

She understood that the online presence of India’s manufacturing business is very small. She was passionate about digitising ‘India lifestyle manufacturing’ and felt the idea of fashion accessories and apparels was disruptive and innovative.

LimeRoad, from day one, was focused on ‘Women Fashion’. However, it later extended the product line for males, kids and the plus size segment. As a part of brand recall, the first physical outlet of LimeRoad was launched in Surat in 2018.

Her aim was to solve ‘online product discovery’ for women. Hence, envisioned LimeRoad as a people-centric discovery platform with a focus to maintain a freshness experience every day.

Investments

By 2018, they had raised $ 50 million in 3 rounds from Matrix India Partners, Tiger Global Management, LLC and Light-speed Venture Partners

$ 5 million in Series A in 2012

$ 15 million in Series B in 2014

$ 30 million in Series C in 2015

As of 2020, LimeRoad received Rs 11 crore funding from MA Willmind Holdings. According to Pitch-book, the valuation stands at $ 1.49 million backed by Venture Capital Series D funding with a total of 5 investors.

Awards/Achievements

Suchi was a part of Start-up India Conference 2016 and shared the stage with Prime Minister Narendra Modi. Other achievements include:

Won ‘Coolest Start-up of the year’ award (2015)

Won ‘Infocom Woman of the Year’, ‘Digital Business’ award (2015)

Won ‘Unicorn Start-up Award’ (2016)

Nominated for ET Start-up Award (2017)

LimeRoad’s first major step towards promoting the ‘Make in India’ campaign called for a partnership with the Madhya Pradesh Government’s M.P Laghu Udyog Nigam to promote handloom and handicraft products online in India.

What’s in it for me?

The mind can be the biggest blocker or contributor to success. So, once you are mentally ready, that is a good time to start entrepreneurship. Some traits, Suchi felt are important for success:

Fighter gene to sail through highs and lows

Clear vision

Right talent/team

Highly scalable business model

Funding/Capital

For her, LimeRoad is a way to build a beautiful consumer technology that gives Indians access to ‘Made in India’ products. To sum up her entrepreneurial journey, her self-belief, conviction in the idea, perseverance, passion, creativity, resilience and risk-taking ability are binding traits for success.

Be a ‘Dreamer’ and work towards it! Suchi’s success story justifies the proverb ‘Don’t just dream for success, work for it’.

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BigBasket: An Online Grocery Revolution, One Basket at a Time

DU Desk — Sat, 06 Mar 2021 04:35:04 +0000

Grocery shopping has always been a hassle. Driving through heavy traffic, wading through the crowds from isle to isle, spending hours on end carting around your basket of items that you meticulously picked out and then of course standing in the lines. It truly earns its name as a chore and never really stood out as an enjoyable experience for most of us. The onset of the Covid-19 pandemic did not do anything to alleviate that pain either. Yes, the concept of grocery shopping still existed as a necessity but then it was line after line to maintain social distancing and just piled onto the trouble that was grocery shopping. This is where BigBasket comes in to save the day and our energy.

Would you rather put yourself through the task of grocery shopping or would you rather be able to get everything on that list with a tap and swipe of a button? It is probably safe to assume that most of us would prefer the second one. So, without further delay, let us explore what BigBasket is and how it changed the face of grocery shopping in India.

Where Did BigBasket Find Its Beginnings?

BigBasket started out with one very simple aim in mind, which was to bring groceries to the customers, minus the crowds, traffic and the long lines. Hari Menon, along with V.S. Sudhakar, V.S. Ramesh, Vipul Parekh and Abhinay Choudhari founded BigBasket in 2011 in the wake of the Internet boom in India that was happening around that time alongside the extensive smartphone penetration.

In the beginning, the online grocer relied mostly on word-of-mouth style advertising and saw slow but steady growth for the first couple of years. A steady rise in transactions from customers led to more investments being made in the company which led to an exponential uptick in scaling and growth of the business. Now the online platform stands as one of India’s most popular and largest online grocer to date, clocking in over 100,000 orders per day.

A Redseer report suggests that the online grocery retail space in India is expected to reach a whopping $10.5 billion by 2023. With the presence of such a rapidly expanding market, BigBasket is primed and prepped to seize the opportunity as it holds such a large share of said market. Currently, BigBasket is active in over 25 Indian cities with plans to expand its operation that oversees a vast inventory of over 40,000 products to choose from.

The grocery giant’s unique approach to the market is a simple but effective one. It aims to meet customer convenience and cut out the day-to-day grind of the mundane task that is grocery shopping. In doing so they have carved out a niche for themselves as one of the first brands to do so early on in India. While many brands nowadays do cater to this type of convenience like Dunzo, BigBasket was the first to do so and it goes one step above by providing the delivery of perishable goods as well.

The brand initially did just start with their website which was the primary point of access to the online grocery service, but with the rise in popularity and investment BigBasket was able to expand its venues of operation to the now infamous BigBasket App as well as other ventures and initiatives: BB Daily, BB Instant, BB Beauty, BB Business, BB Mandi and Green Basket.

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BigBasket as a concept was ahead of its time and the rise of the pandemic only further proved the necessity for the existence of such a platform.

BigBasket: Features and Initiatives

BigBasket Daily

BigBasket won a lot of hearts and minds with this initiative. It is essentially a subscription-based service that delivers perishable and day-to-day goods on a regular basis. With a primary focus on the delivery of fresh milk, the plan also allows for other items like produce, food grains, oils, masalas, beverages, snacks, pet care products, baby care items and even pooja essentials. This shows clear attention to detail of the brand’s customer demographic and their needs. Since there is no minimum order policy and the function is available on the web as well as app form, makes it that much more convenient. The genius play here is that the presence of a daily-essentials platform means customers will find a use for it on a regular basis, thereby driving up usage patterns and engagement across the platform.

BigBasket Instant

This is BigBasket’s line of unmanned vending machines or as they like to call it, ‘unmanned cashless smart stores’. These vending machines are available mostly only in Tier 1 cities as of now, in large corporate offices, select apartment complexes and tech parks. It is a great way to access the market on a 24×7 period and keep the customer engaged by having them unconsciously integrate the brand into their daily lives as they grab a snack or something from that oh-so-convenient vending machine on the way to work.

BigBasket Business

We sometimes forget that households are not the only ones who need groceries, businesses need them too. Consider this sub-platform as BigBasket covering all its bases. BB Business provides quality groceries to Kirana stores, Pharmacies, Hotels, Restaurants, Caterers and Institutions.

The advantage of this particular venture lies in the fact that these institutions and businesses spend tremendous amounts of time, energy and money in setting up a logistics chain from different vendors to source the necessary products. BB Business takes away all that clutter and replaces it with one convenient platform that does all the outsourcing for them. Everything from packaged goods to fresh produce sourced from over 5000 farmers at mandi rates, all consolidated into a single bill that makes returns and filings easier. If streamlining was the name of the game, BigBasket is coming out on top.

BigBasket Mandi

As mentioned above, BB Mandi is a sub-category under the BigBasket brand banner, that also exists in app form, and caters to customers looking purely for fresh veggies, fruits and other farm-fresh items sourced from local farmers at Mandi rates and delivered to the customers’ house.

The BigBasket Mobile App and Website

Now onto the big guns. The primary bread-winner, or so to speak, of the BigBasket franchise, is the main website that started it all, under which all other initiatives and branch-offs stand. The platform has over 40,000 products that are sourced from over 1000 national and international brands to choose from.

The stand-out factor here is that everything you can find on the website is conveniently located on the mobile app as well. The app itself has become a major industry disruptor with its speedy check-out process, timely delivery and accessibility in seven different regional languages. Though the website was launched with the founding of the company, the app only came into being in 2013, a good two years after the inception of the brand. Since then, the app has been downloaded over 10 million times.

Additionally, the app and website take the convenience factor a step further by way of the BigBasket Wallet. The wallet is a digital prepaid wallet that allows customers to conduct transactions across the board for anything BigBasket. On top of that, if any delivery is delayed or cancelled and the company gives you a discount or freebie, that monetary value gets added to the wallet as credit.

Essentially what BigBasket has done here is take a massive and diverse inventory and integrated it with a rapidly digitising marketplace, making the lives of all who use the brand, more convenient and streamlined. A wide selection ensures there is something for everyone, hence a very diverse and wide-spread audience for the brand and the digital approach makes everything easier, thereby driving up usability and engagement across the board.

Green Basket

More than being an initiative, Green Basket is an inbuilt philosophy and part of the very function of BigBasket. An offline grocery store needs to stock a physical inventory, for that they need electricity, fuel to and from the distribution centres, refrigeration and air-conditioning. All these factors add up to a hefty toll on the environment in the form of used resourced and carbon emissions. The very concept of an online grocer like BigBasket means that there is no need for brick-and-mortar shops, which cuts away the emissions and impact on the environment significantly.

Green Basket takes this clean approach a step further by minimising paper and plastic bags used in packing and transporting the goods to the customer as all goods are transported via crates, which are taken back and re-used for future deliveries.

The Winning Formula for Success

Much of BigBasket’s success can be attributed to the fact that it has diversified its field of expertise to such a great extent, but even those extensions are successful because of one core factor; the attention to detail.

BigBasket maintains a unique strategy that seems a little obvious when looking at the surface, which is catering to the customers’ needs. When saying it out loud seems like an easy thing to do, but that would be the wrong assumption. BigBasket has gone so far out of its way to meet the customers’ needs that it has it down to the individual cities and localities that the platform is active in. Every location has a different demographic and each one of them has a particular need for some grocery items more than others, which BigBasket meets.

To supplement this access to more targeted products, the company also focused on sharpening the delivery aspect of things. The customised software guides their drivers to the customers via the fastest possible routes depending on the city. Despite all this, if the product reaches late customers get a 10 per cent discount and if items are missing, customers get a 50 per cent refund of the lost items. This is an assurance and loyalty-building scheme that seems to have worked out well for the brand as it currently stands as one of the leading online grocery platforms in the country.

This dual approach, in combination with the diversified chain of initiatives and apps, is what ultimately puts the brand in a better position, despite the heavily saturated market competition.

The brand as a whole has seen much growth and success over the years. In 2019 it made its way into the exclusive unicorn club and currently stands at a $ 2.5 Billion valuation with total funding of $ 1.1 Billion raised. The brand also has some of the biggest backers in the industry like Trifecta Capital, Helion Ventures Partners, Mirae Asset-Naver Asia Growth Fund and the famous Alibaba Group, laying its foundation.

Now the brand serves around 125 million customers across the nation, present in every imaginable customer demographic as it has something for everyone (businesses and people alike). It is thanks in large part to these investors and the unique approach to cornering their customer demographic that puts the company in a position where its platform can compete with new-comers and other heavy-hitters in the online grocery world of India.

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Though it may not have been the fastest rise to unicron status, BigBasket carved out a comfortable margin for itself at the top of the online grocery food chain by paying attention to its customers.

The Challenge of Staying on Top

There are many large and up-and-coming players in the online grocery industry like Grofers, PepperTap, LocalBanya, Dunzo and even some giants like Amazon and JioMart. While many of these players provide some stiff competition, BigBasket still manages to stay atop the game for a few reasons.

One, as discussed before, is the big-ticket backers who fund the company. Then of course comes the unique approach of catering to the regional and local needs of customers’ grocery habits. Most important of all, however, is the fact that BigBasket was early to the game. Sure, it may not have been the quickest rise to unicorn status that the market has seen, especially in recent times, but it was a rise nonetheless.

Think of BigBasket as a behemoth, a steady and reliable beast that was unwavering in a time where there was no concept of online grocery shopping in India. Sure, there were platforms like Amazon that did deliveries, but the grocery segment was wide open. BigBasket was the one to tackle that issue and close that gap.

As the old saying goes, “The early bird gets the worm”. In this case, that is what happened and it is why BigBasket as a platform still stands as a major pack leader amongst a rapidly changing industry.

For more inspiring stories check out our Inspire section.

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