Tag: ecommerce retail

  • Jiomart Case Study: How It Is Leading in ECommerce Industry With Its Business Model?

    When it comes to the Indian business arena, one simply cannot ignore Mr. Mukesh Ambani—the owner of Reliance Industries, and the wealthiest businessman in India. He has footprints in some of the most important sectors of the Indian economy such as refining, oil & gas, petrochemicals, telecom, retail, and media. Reliance’s oil refining business has been its crown jewel to date.

    In September 2016, Mukesh Ambani officially launched his telecommunication venture called Jio (Joint Implementation Opportunities) and set an example by turning Jio into the largest mobile network in India and the third-largest mobile network operator in the world with over 477.94 million subscribers as of November 2024. Witnessing the growth in revenues, profits, and market share in the above-mentioned sectors, Mukesh Ambani is now all set to try his hand at e-commerce through his new venture called JioMart. So what exactly is JioMart all about?

    JioMart – Company Highlights

    Platform Name JioMart
    Industry Online Grocery, ECommerce
    Headquarters Mumbai
    Founder Mukesh Ambani
    Founded May 2020
    Parent Organization Reliance Retail Limited
    Website jiomart.com

    JioMart – How Does it Work?
    Features of JioMart
    The Idea Behind Starting JioMart
    JioMart – Business Model and Revenue Model
    How to Become a Seller on JioMart?
    How JioMart Consumers and Retailers Benefitted from the Jio-Facebook Deal
    JioMart’s 30-Minute Delivery

    JioMart Case Study

    How JioMart Works?

    JioMart is an online grocery store that provides 50,000+ grocery products at discounted rates at your doorstep through an express delivery system. It follows an on-demand model. The company will avoid the system of warehousing and partner with local retailers instead. These retailers will source the grocery products and deliver them to the customers.

    JioMart began functioning in January 2020 and is available in over 200 cities and towns across India, including Mumbai, Chennai, Kolkata, Hyderabad, Delhi, Bengaluru, Jaipur, and Trivandrum.

    JioMart’s app is available for download on Google Play Store and Apple Store.


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    Features of JioMart

    JioMart will operate on the online-to-offline business model; it will connect with local retailers and deliver goods to customers by procuring them from the nearest store located in the customer’s vicinity. This model is unlike the warehouse model used by Grofers and Amazon Now.

    The company wants to correct the unorganized retail sector and help local shopkeepers whose businesses were adversely affected due to competitive pricing and warehousing strategies of online retail stores. In addition to increased sales and margins, these shopkeepers will be equipped with point-of-sale (PoS) terminals, integrated billing applications, and GST compliance. It will also upskill them in inventory management and supply chain management.

    RIL wants to establish its new venture, termed ‘Desh Ki Nayi Dukaan’, in this manner.

    JioMart claims to offer the following consumer-friendly services:

    • Free home delivery: It will give you the benefit of delivery of commodities at your doorstep by procuring it from the nearby store, and that too free of cost, which your ‘Kirane wala bhaiya’ may not.
    • No minimum value: Generally, e-commerce sites set up a minimum value of a purchase to validate free delivery. For example, Grofers has a policy of free delivery on a minimum purchase of INR 500. JioMart will not expect a ‘minimum payment’ and abstain from delivery charges, even for the smallest of items ordered.
    • Express delivery: Express delivery means quicker delivery than ordinary services. In the e-commerce segment, it is generally within 24 hours.
    • No questions asked return policy: When you wish to return the goods that you ordered online, you are almost always bombarded with unnecessary questions. And most of the time, they cannot avoided. JioMart will save you this hassle.
    • Early bird discount of INR 3000: The platform has come up with a promotional strategy of pre-registration wherein people can save up to Rs 3000 on future shopping. Reliance Jio has started sending invites to its existing telecom service users in selected areas.
    • AI-Powered Inventory Management: JioMart leverages artificial intelligence to monitor inventory in real-time, ensuring better product availability and faster deliveries, eliminating the hassle of out-of-stock items.
    • Hyperlocal Approach: JioMart expanded beyond major cities by partnering with local kirana shops, reaching the core of India to ensure quick deliveries, no matter the location.

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    The Idea Behind Starting JioMart

    JioMart wasn’t an overnight expedition of Mukesh Ambani but a well-assessed move with the sole motive of capturing the highly sought-after e-commerce segment.

    Mukesh Ambani already has a formidable customer base in the retail sector with Reliance Fresh which functions successfully on the brick-and-mortar model. JioMart owner Mukesh Ambani’s plan to set up an e-commerce platform goes back to 2019. His ambitious project emulates his desire to compete with global e-commerce giants such as Amazon and Walmart-owned Flipkart.

    Reliance acquired Grab and C-Square
    Reliance acquires Grab A Grub and C-Square
    1. Acquisition of Grab A Grub: Grab A Grub is an Indian logistics startup founded in 2013. In March 2019, Reliance Industrial Investments and Holdings Limited (RIIHL) acquired it for $14.9 million to support the logistics of Jio Mart founder Mukesh Ambani’s ‘planned e-commerce venture’. Grab was chosen because it worked successfully with some mega-brands such as McDonald’s, BigBasket, Myntra, Amazon Now, and Swiggy.
    2. Acquisition of C-Square: C-Square Info Solutions Private Limited, founded in 2002, provides software solutions for verticals like e-commerce, salesforce, retail, etc. It was acquired by RIIHL in March 2019 for $11.56 million. A strategic move by RIL, it was aimed to strengthen JioMart.

    JioMart – Business Model and Revenue Model

    RIL is offering local merchants an O2O (online-to-offline) marketplace through JioMart. This business model was pioneered by the Chinese e-commerce giant Alibaba Group Holding Ltd. Under the O2O model, a consumer searches for the product or service online but buys it through an offline channel.

    JioMart, Reliance Retail’s e-commerce platform, has tripled its number of sellers compared to 2023, as shared in its December 2024 quarter results. While groceries remain its main focus, JioMart is now working to increase its share of non-grocery items.

    It connects with local retailers and delivers goods to the customers by procuring them from the nearest store located in the customer’s locality. The customer will use his or her official WhatsApp number to place the order. Post confirmation, the user will receive the bill which is to be paid in cash. When the store is ready with the order, the customer will receive a notification to pick up the order from the store.


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    How to Become a Seller on JioMart?

    A retailer can register with JioMart to become a seller. After registering with JioMart, retailers will receive the required support for the smooth delivery of goods to customers.

    Registered grocery store owners will be able to list their inventories, take orders, create offers, and manage online sales using the app. JioMart will ensure that the sellers associated with its platform get a smooth selling experience.

    How JioMart Consumers and Retailers Benefitted from the Jio-Facebook Deal

    The Jio-Facebook deal, wherein Facebook invested INR 43,574 crore ($5.7 billion) in Jio platforms, made lives easier for the consumers and retailers associated with JioMart. As part of this deal, WhatsApp – Facebook’s popular messaging platform collaborated with JioMart. Owing to this collaboration, JioMart users can place their order through WhatsApp and Facebook while payments can be made using the ‘WhatsApp Pay’ feature.

    JioMart services have been made available on WhatsApp from 25 April 2020 in Navi Mumbai, Thane and Kalyan. JioMart is currently operating in these three cities only. However, the only mode of payment currently available is cash.

    “In the very near future, JioMart – Jio’s digital new commerce platform, and Whatsapp – will empower nearly 3 crore small Indian Kirana shops to digitally transact with every customer in their neighbourhood”- Mukesh Ambani said, CEO, Jio Mart.


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    JioMart’s 30-Minute Delivery

    Grocery delivery startups like Blinkit (formerly Grofers), Big Basket, Zepto, and Swiggy Instamart have seen remarkable success in recent years, driven by significant funding and rapid revenue growth. Recognizing the market’s potential, major e-commerce players like Amazon have also entered the grocery and essentials delivery space.

    With the entry of the biggest player in the Indian market, a serious threat looms over existing grocery delivery ventures. Besides being a popular brand name, JioMart has some features that lend it an upper hand over its competitors.

    The company plans to deliver orders in 30 minutes as quick commerce grows popular.

    Next month in December 2024, it will start 30-minute delivery in the top eight metros and later expand to 20-30 cities in phase one. Eventually, it will cover the rest of the country.

    Deliveries will be managed through its 3,500+ stores. However, JioMart won’t open dark stores or compete in the 10-20 minute delivery race.

    Conclusion

    When Jio entered the telecom segment, it stirred a revolution and turned the tables. Big shots like Airtel and Vodafone who dominated for years were sent tumbling. A potential revolution is on the cards again because of Reliance’s JioMart. JioMart’s business model showcases its ambition to dominate India’s e-commerce space by expanding Reliance’s vast retail network, focusing on groceries, and steadily focusing on quick commerce, making it a key player in the digital commerce ecosystem.

    FAQs

    What is JioMart?

    JioMart is Reliance Retail’s e-commerce platform offering groceries, essentials, and other products online.

    What is JioMart’s business model?

    RIL is offering local merchants an O2O (online-to-offline) marketplace through JioMart. This business model was pioneered by the Chinese e-commerce giant Alibaba Group Holding Ltd. Under the O2O model, a consumer searches for the product or service online but buys it through an offline channel.

    Who is JioMart founder?

    Mukesh Ambani is the owner of JioMart.

    Does JioMart charge for delivery?

    JioMart charges a delivery fee for orders under INR 250, but not for orders over INR 250 or new customers’ first three orders.

    When was JioMart launched in India?

    Jiomart was initially soft-launched in 2019. It was fully launched in May 2020 in 200 cities in India.

    Which is the parent company of JioMart?

    Reliance Retail is the parent company of JioMart.

  • Ayurveda at the Click of Your Smartphone: The Success Story of India Shoppe

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by India Shoppe.

    Digitization and E-Commerce have transformed the traditional way of business. Online shoppers Online shopping sales across India amounted to around $67 billion in 2021. Online shoppers are increasing year by year. There were 189 million online shoppers in 2021 which is expected to reach 220 million in 2025. The shopping behavior of customers has played a crucial role in the development of ECommerce retail. India Shoppe is one such E-Commerce retail platform that provides all the products for household needs. Staying bootstrapped, India Shoppe’s revenue growth has reached INR 1300 Crores.

    Read to know about India Shoppe, its founders, products and brands under it, its business model, and the story of its growth.

    India Shoppe – Company Highlights

    Startup Name India Shoppe
    Headquarters Chennai
    Industry Ecommerce Retail
    Founder Rajesh Chandan
    Founded 2013
    Website indiashoppe.com

    India Shoppe – About
    India Shoppe – Founders and Team
    India Shoppe – The Idea and Startup Story
    India Shoppe – Vision
    India Shoppe – Products
    India Shoppe – Business Model and Revenue Model
    India Shoppe – Challenges Faced
    India Shoppe – Revenue Growth
    India Shoppe – Tools Used in the Company
    India Shoppe – Achievements & Recognitions
    India Shoppe – Future Plans

    India Shoppe – About

    India Shoppe is an Omni-channel retailing company, started in Aug’13 to provide Wellness & Nutrition, Personal Health-care, Skin-care, Oral-care, Hair-care and Home-care after identifying & understanding their customers. They design & produce the products for which enough demand is created through various social media & other channels of Marketing. Recently, they have added fresh Agro-care solutions to their bouquet of products.

    India Shoppe – Founders and Team

    Rajesh Chandan is the founder of India Shoppe. Mitesh Bhandari and Viresh Mehta are the Co-Founders of India Shoppe.

    Rajesh Chandan - Founder of India Shoppe
    Rajesh Chandan – Founder of India Shoppe

    Mr Rajesh Chandan is an alumnus of Harvard Business School and a first-generation entrepreneur from Chennai and a technology enthusiast, with over two decades of hardcore exposure in various business verticals. He upgraded himself to the latest trends in business & technology, by attending various programs at ISB (Hyderabad) & IIM, (Ahmedabad). Rajesh Chandan actively conducts leadership workshops for Start-Ups, mentoring them to upscale their business. He held the position of VICE CHAIRMAN at JITO INTERNATIONAL W ING and continues as an active member of the JAIN INTERNATIONAL TRADE ORGANISATION with more than 15000+ influential (Jains as) members. Rajesh is an avid social worker associated with various organizations & rehabilitation centres. His family has donated a day-care hospital in Ayanavaram (Chennai) which is run by RYA Cosmo Foundation.

    India Shoppe Team
    India Shoppe Team

    Mitesh Bhandari is the Co-Founder and Executive Director of India Shoppe.

    Mitesh Bhandari is a young & dynamic commerce graduate from LOYOLA (Chennai) & MBA from NMIMS (Mumbai). He is a certified Chartered Financial Analyst with a decade of experience in several lines of business & off- late prominently in the Fin. Tech landscape. Mitesh Bhandari is an active investor on many alternative investment platforms, including Venture-Debt. He has more than 2 decades of experience in the business of Ferrous & Non-ferrous metals. Mitesh Bhandari also has a well-curated portfolio of leasing, and real estate assets.

    He serves as the Charter President of RCC Magnum, an organization of 100+ youth members & has been an active member of Round-Table (India), a philanthropic organization.

    Viresh Mehta is the Co-Founder and Executive Director of India Shoppe.

    Viresh Mehta is an enthusiastic leader who heads Business-Development. He is a marketing & sales specialist who focuses on the smooth functioning of an organizational supply chain and related value addition processes for the company. He has an outstanding experience of 17 years in merchandising & sourcing various consumer goods. He developed various distribution channels across India, for different FMCG Products, ensuring business growth. His strong decision-making abilities have played a critical role in handling and strategic planning of the product launches of several esteemed brands like Coorg Filter Coffee in Tamil Nadu, Detergents like Shudh, Rakshak and Samundar crystal salt from the house of industrial-giant, Tata. Understanding and engaging in public relations is a primary reason for his success. Crisis and Disaster Management at various business houses is his forte.

    Once Viresh Mehta organized a Dandiya Mela or a traditional folk-dance festival with over ten thousand participants from all ages & ethnicities, for raising student scholarships for the underprivileged.

    India Shoppe – The Idea and Startup Story

    Rajesh Chandan always wanted to start a brand, which would be more than just a business-house or a commercial- entity. He wanted it to be a part of people’s lives. That ‘want’ remained a distant dream until 2013, when he identified a dearth in a specific segment of the market & eventually, the spark grew into a flame.

    After a series of brainstorming with his peers in business, about how the global giants were becoming market leaders, online & native brands were ruling on-ground with their branches & franchises, the market in Omni-channel retailing remained unexplored. Soon, the idea started taking shape.

    India Shoppe was designed to be a lifestyle brand with a sincere focus on Tier II, and Tier III cities & towns targeting the “middle” & “upper-middle” income groups or the ‘active’ segment of society that is always aspiring for a better lifestyle.

    Rajesh went to the original ‘Shark-Tank’ to bounce his idea: My friends! Not for lack of options but this wasn’t just about, Validation of his idea but also the Sustenance of a promise!

    India Shoppe – Vision

    India Shoppe Logo

    India Shoppe has a vision to:

    • Be a large customer value creator in the market, focusing on customer service, understanding the customers, their way-of-life & identifying their requirements to improve their lifestyle.
    • Customize & develop products after market research & ensure they’re organic, healthy & easy to use.
    • Invest in new product lines & implement the latest technology to ensure they are delivered on time.

    India Shoppe – Products

    India Shoppe Products
    India Shoppe Products

    India Shoppe offers various daily-use products for individuals and the entire family. They are committed to building effective brand identity by aligning the consumers’ perception and expectations with the development of their products, with the highest standards in quality.

    India Shoppe has developed its private labels, under the brand names of:

    • “AAHAR” Food & Gourmet
    • “ELEMENTS WELLNESS” Health-Care
    • “NEUSTAR” Personal-Care
    • “ON & ON” Wellness & Nutritional-Care
    • “Mi HOME CARE” Adding a sparkle to your world
    • “INDIAGRO” Reflecting their commitment to farmers, they have scientifically researched and developed, plant & soil-care products that: help in maximizing the yield (for farmers) & are packed with nutrition (for consumers) while ensuring the quality of soil is retained.

    Their products do not contain (any) chemicals that are harmful to the body and are made of natural ingredients. They use raw materials which conform to API and in-house standards.

    Their proprietary health & wellness products are made of various nutritional ingredients & herbs, after extensive study and research. India Shoppe has experts who remain in close proximity with scientific researchers & market analysts to stay updated on developing new products or enhancing existing ones. Beginning from the sourcing of ingredients to the final Eco-conscious packaging, they ensure that their products are of premium quality.

    India Shoppe takes Conscious-Care for:

    • The People: Propose and promote a healthy lifestyle for consumers, with their products.
    • The Products: Prohibit the use of any ingredients which aren’t organic in their processes.
    • The Planet: From Products to Packaging, it is all vegetarian and eco-friendly.
    • The Past: Promoting Ayurvedic products which are preventive & also hail from this holy land.

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    India Shoppe – Business Model and Revenue Model

    India Shoppe creates a demand for its products, through active social-media campaigns and its chain of small-format retail stores & websites. Additionally, to reach a wider market, we’ve designed Pick-up Centers (P.U.C’s), in several remote locations that are mapped to their nearest store. Such P.U.C.s only purchase merchandise from the stores, they’re mapped to. It can also be explained as – H.O.: Parent, Store: Child, Store: Parent, PUC: Child.

    • Their stores maintain an online account of the respective PUCs mapped to them, based on the volumes of transactions or redemption of Pre-orders.
    • To ensure easy flow of the stocks, they are replenished from multiple warehouses, online & offline.
    • Their M.O.P is mostly through pre-orders having several types and denominations (Non-Transferable).
    • Customers carrying such Pre-orders get the merchandise at a discounted price while other customers purchase at M.R.P.
    • Customers can redeem/ purchase with dual-validation (Code & OTP) at the Store, PUC and Web-portal.
    • Their product range is further classified under different sub-categories.

    Strengths:

    • They have well-established network of 16 Warehouses, 51 Stores & 649 P.U.C’s, spread across the country,
    • They have tested & proven systems and ready-to-go processes for generating assured Sales growth.
    • They undertake periodic market research with corresponding Product-innovations.
    • They collaborate with scientific developers, manufacturers, designers, marketers & suppliers to ensure they come up with rich Ayurvedic products.
    • They build on brand re-call & consumer loyalty through Digital Marketing posts and campaigns by regularly posting engaging content on various social media platforms.
    • Their customers have been their biggest strength, as their testimonials are the hallmark of certification.

    India Shoppe – Challenges Faced

    Being an enterprise with most products based on Ayurveda, subscribing to their solutions would mean a shift into a better/healthier lifestyle. But this is the very reason most people today, resist choosing Ayurvedic medicine, which is more of preventive care, in contrast to the instant relief of western-medicine (Allopathy).

    However, the Covid Pandemic has rightfully pointed out that, instead of choosing the (so-called) ready remedies and instant reliefs, it is advisable to have a healthy lifestyle. And, going Ayurvedic, not only aids to eliminate the chances of infection but also has them equipped to battle other infections/ microbes, known & unknown.

    India Shoppe – Revenue Growth

    India Shoppe operates PAN-India. Starting in 2013-’14 from less than INR 100 CRS. to almost INR 1300 CRS. in 2021-’22. With a CAGR of 22%, their growth has continued during the Covid pandemic, even. So far, they are a bootstrapped company, running & managing with their capital & operating revenues.


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    India Shoppe – Tools Used in the Company

    Their team of developers, designers, researchers, product managers and engineers of various disciplines, work together in building a user-friendly design & well-tested interface with every aspect of the organization.

    • They have been using state-of-the-art ERP software for Finance and custom E-commerce.
    • The capacity of supply chain and logistics operations can be scaled anytime with their automated stock replenishment during peak periods (festivals/ holidays) for consistency in their deliveries.
    • With their in-house cloud-based mechanism and automation, Traffic is gracefully throttled if & when it goes beyond the given conditions.
    • Having high-performance integrations, connecting to third-party applications like the State GST portal, Supply chain Vendors and up to Last-mile deliveries.

    India Shoppe – Achievements & Recognitions

    India Shoppe has achieved recognition from the Government of India and others.

    • In the personal-care category, “Elements Wellness” was prestigiously awarded: BEST HEALTHCARE Brand by The Economic Times in 2019-‘20 & 2022-’23!
    • 7 & 14 State Governments in the country, have recognized India Shoppe as a prompt Tax-payer for 2020-2021 & 2021-2022 respectively.
    • At the peak of the Covid pandemic, when the health ministry of India advised everyone to take a spoon of Chavanprash (an Ayurvedic goo-ey preparation loaded with anti-oxidants & immunity boosters) a day, it hiked the consumption of their equivalent, On & On “Kavach Prash”.

    India Shoppe – Future Plans

    As a growing large-scale Value-Creator, they are eyeing expansion in the scale of operations, setting up more Distribution centres for easy reach & faster delivery, planning more stores & investing in new product lines & technology.

    After finding a firm footing in the local market, India Shoppe team have been exploring the possibility of expansion, especially in our neighbouring countries.

    FAQs

    When was India Shoppe founded?

    India Shoppe was founded in 2013 in Chennai.

    Who is the founder of India Shoppe?

    Rajesh Chandan is the founder of India Shoppe. Mitesh Bhandari and Viresh Mehta are the Co-Founders of India Shoppe.

    What are the products of India Shoppe?

    India Shoppe products list includes various daily household products:

    • Food Products
    • Health-Care Products
    • Personal-Care Products
    • Agro Care Products
    • Home Care Products
  • Chappers: Traditional Footwear Brand Through Innovative Indian Craftsmanship

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Chappers.

    Maharashtra has a rich and varied arts heritage. Kolhapuri chappals are one of the most popular hand-made crafts from locally sourced leathers. It has its origin in the Kolhapur town of Maharashtra. Kolhapuri chappals are made from leather using only natural ingredients. They are the best example of ethnic and traditional fashion footwear that are eco-friendly and handcrafted. Startups are taking initiatives with their innovative approach to preserving the ancient craft traditions of India and supporting Indian craftsmanship. Chappers is one of the brands that is reviving craftsmanship in India. They started with Kolhapuri chappal and now bringing a revolution in footwear fashion, especially for men.

    Read the success story of Chappers, its founder, business model, growth, and the challenges it faced in the journey.

    Chappers – Company Highlights

    Startup Name Chappers
    Headquarters Pune
    Industry Footwear
    Founder Harshwardhan Patwardhan
    Founded 2014
    Website chappers.in

    Chappers – About
    Chappers – Founder and Team
    Chappers – The Idea and Startup Story
    Chappers – Name and Logo
    Chappers – Products
    Chappers – Business Model
    Chappers – Revenue Model
    Chappers – Customer Acquisition
    Chappers – Challenges Faced
    Chappers – Growth
    Chappers – Hiring Culture
    Chappers – Funding
    Chappers – Competitors
    Chappers – Future Plans
    Chappers – Tools Used in the Company
    Chappers – Advice from Founder

    About Chappers Footwear Making

    Chappers – About

    Chappers is a men-focused brand. They make footwear for women too but there are bigger issues to solve when it comes to men’s footwear. Chappers aims to solve the following problems in the Indian footwear industry:

    1. Men are taught not to wear good colours. The industry hence makes only black, brown, and grey for them. Those who want to wear colours do not have options.
    2. Custom footwear is often very expensive and unreliable. they want to change that. They give men brilliant quality custom footwear at the right price.
    3. Mass customization would be the norm in a few years. They want to be the brand that revolutionizes the footwear industry.
    4. Footwear and technology usually never go hand in hand. The Indian footwear industry is very unorganized and needs disruption. They have built India’s first virtual customization software where the customer will be able to customize the footwear on large touch screens first, check if it suits their taste, and then place an order for it. They aim to home deliver a custom pair of footwear within 72 hours.
    5. This industry is heavily reliant on inventory. Retailers have to stock up huge number of styles only to know that only a few of them work. Later they have to offer heavy discounts on styles that don’t work. With our model, our franchises will keep only bestsellers in stock and the rest will be custom-made. Since the lead time will be just 72 hours, the customer won’t mind waiting. Plus, the price of the in-stock designs and the custom product will be the same, adding to the value.

    Chappers – Founder and Team

    Harshwardhan Patwardhan - Chappers Founder
    Harshwardhan Patwardhan – Chappers Founder

    Harshwardhan Patwardhan is the founder of Chapppers. He has completed his MSC in management from the University of Nottingham.

    Currently, they are a team of 25 people including a sales team, operations team, accounts team, and a team of expert craftsmen. Each of them has the vision to make Chappers the best footwear brand India has ever seen.

    Chappers – The Idea and Startup Story

    Chappers initially started with a vision to take the Kolhapuri chappal global. Harshwardhan first came across Kolhapuri chappals on his first traditional day in college. His brother gave him ancient-looking chappals to wear under his kurta and he fell in love with them. Since then, there hasn’t been a day that he has not worn a Kolhapuri. But it had certain negatives. It was hard, slippery, and available only in the traditional brown colour. He started wondering if he could change these things. Would people in Europe/Latin America wear this chappal if he worked on the negatives? He started researching and working with different materials and that’s when Chappers was incepted.

    Chappers Logo
    Chappers Logo

    Before the founder even started finding a name for the brand, people had started placing orders, as they found his work interesting and wanted cool-looking-new-age Kolhapuris. He had booked a stall at a flea market in Phoenix Market City, Pune and they asked by what name should they reserve the stall. That night, he chalked out close to 200 names but only 1 stuck. He took “Chapp” from “Chappals” and since I was making them comfortable and in a way westernizing the chappal, he added “ers” to it like Slipp”ers” or Loaf”ers”. He joined them together and it made a very short and sweet brand name “Chappers”. Since the name was coined by Harshwardhan, I had no issues in trademarking and copyrighting it too!

    He asked one of his friends to develop a logo for the startup, based on the concept of taking Kolhapuris global. So, he actually drew a Kolhapuri and fit the font such that “C” was the heel and “S” was the thumb! And he loved it!

    Chappers – Products

    Chappers have now expanded into many different products. After a point the founder realized that his interest lies not only in taking the Kolhapuri global, but also the Indian craftsmanship. They want to start with revolutionizing the Indian footwear industry completely. They design great products and enable the customers to customize it in their own colors. They let them add accessories, their initials on the shoes and try to do all of this in a very reliable way and at the right price. Now, they don’t restrict themselves in terms of the nationality of the products origin or the century it was first made in. They want to build great, innovative products and want people to wear them in their own favorite colors. Imagine if a brand starts giving custom footwear at the right price and in a lead time as low as 2 days, why does the footwear industry need crores and crores of inventory?

    Chappers – Business Model

    Chappers’ business model is very simple. It is a very complicated model to understand for an outsider. But for the customer, it is very simple.

    The customer walks into the store/Kiosk and checks their shoe size by trying on their sizing samples. He then sees two sections – RTW (ready to wear) and customization. If he wants to pick up a pair right away, they have a selection of 25-30 bestsellers in stock at all their stores. But, if he has 2-3 days at hand, he can take a look at our customization section. There, he will see numerous designs in unimaginable colours and material variety. He can touch and feel the product, select the design he likes and then move on to a big touch screen. On the touch screen, through their virtual customization platform, he will be able to change, colours, and materials, add accessories to the design that he selected, and then see how the product looks on his feet with the help of an iPad. He can then place an order. If not, he can just enter his mobile number and the shoe that he designed will be sent on WhatsApp to him for future reference. If he does place the order, the full customized product will reach his home in the next 2-3 working days.

    Now that he knows his size and fit, he can even customize any design on Chappers’ website and place the order from the comfort of his home.


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    Chappers – Revenue Model

    Their policy is to never undercharge or overcharge the customer. Whenever they develop a product, their aim is to provide the maximum value to the customer. They never are cheap nor expensive, they just aim to sell their products at the “right price”.

    For example, if a customer looks at a product and feels that it’s worth Rs.5000, then that product should be priced at Rs.4999. They pay their craftsmen very well. They want to ensure both sides of the supply chain are equally happy with them. The team of craftsmen and employees should be equally happy, hence they do not believe in discount marketing. They make good quality products and expect the right price for them.

    Chappers – Customer Acquisition

    This bit came easy for them. They made the first 100 samples and booked a flea market stall. They sold 90 out of the 100 pairs on the first day!!

    After the first flea market experience, their confidence soared. They started believing in the product even more. But, where they can go to sell every day? They couldn’t get a stall. So, they built a basic website and social media pages. First, the orders started coming in through friends and family and then through their friends and family and the circle grew. Since Pune is a small community-like city. Word of mouth spread fast. Slowly they started getting online orders too. But people always asked one question – where can they come and try the footwear? So, they opened their first store on Karve road, Pune. Their stores are very uniquely designed. Big wooden chair, embroidered carpets, and footwear handled with gloves. Not every footwear store does that. Hence, they immediately got a good response for the store too.

    Chappers – Hiring Culture

    In Chappers, your degree does not count. Whenever they are interviewing, they keep the CV aside and talk to the candidate. They want all their team members to be problem solvers. Good manners and extremely high morals are definitely needed if you want to be a part of the team. Patriotism is also a must if you are to qualify as a team member. People who love India and want to do something for the country have a different outlook towards life, Chappers team wants to work with such people.

    Chappers – Challenges Faced

    When Harshwardhan Patwardhan decided to explore the opportunity, he had no background in footwear or business in the leather industry or retail industry. He is from a transport background as his family is into people and goods transport. He had to learn from scratch.

    Second, the footwear and leather industry in India is very unorganized. There are still many vendors who are not on Google. Additionally, nobody wants to work with a person who is just starting out, has no industry experience, and has no money. From vendors to employees, the founder had rejection all around.

    Duplication has also been one of the major challenges. As they started becoming successful, small factories started copying their products and selling them cheaper. They had to develop a lot of IP surrounding their logo to safeguard themselves from this duplication mafia.

    The INR 2000 and above market is dominated by foreign brands. Unfortunately, we think that foreign brands deserve higher MRPs and our own Indian brands don’t. People have said things like “Indian brand hai na to 1000 tak price thik hai”. Our people take pride in wearing foreign brands and undervaluing Indian brands. Building a footwear brand that does not have a single product priced under Rs.2000 is definitely a tough path under current circumstances. But they believe in India, they believe in their products and they believe in the future. This keeps them going.

    Chappers – Growth

    Right now, they have four stores in Pune and they deliver across India when ordered online. They have even delivered orders to 27 foreign countries. Chappers’ revenue is around 2.5 crores and they have approximately 27,000 customers to date. Their returning customer rate is 40% which is pretty high for a footwear brand.

    Chappers – Funding

    Fortunately, till now they have always been profitable and self-sufficient. Even during the pandemic, they had to modify a lot of systems and cost structures but they strived and remained profitable. They will start looking for funding this year as they think now their business model is well evolved and they are aware of what has worked for them and what has not. The new model can truly revolutionize the entire footwear industry and they will come out on top. If they stick to the plan and keep capturing their goals, they think they can be the Zomato of footwear.

    Chappers – Competitors

    Their perspective and attitude are a lot different from other local brands. They do not believe in the fact that they can sell whatever they make. They think that the customer is always aware of the latest trends and just needs some help in imagining stuff. Its job as a brand is to help its customers imagine newer things and they do so by giving them a platform to play around on. They can play around and find out what colours they like the most, and which designs suit them the most. Usually, retailers dictate what you should wear. They tell customers why they can’t wear a yellow chappal or a red shoe. They do so because they don’t have a yellow chappal or a red shoe to sell. But they can make a yellow chappal, a red shoe, and a gold sandal!! So, for the initial few years, competitors never took Chappers seriously, only when they realized that people actually want to wear these colours, did they start thinking about developing such products. They want to make competition irrelevant with their new model. Can established footwear brands give each customer a custom pair? The answer is they cannot. Because they have huge factories to feed. They love making 1 lakh black shoes. Chappers don’t.


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    Chappers – Future Plans

    They are currently trying out a kiosk franchise model. They have Kiosks at Pune’s Pavilion mall and at Seasons mall Magarpatta. A kiosk franchise would give a better return on investment to the franchise owner as the expenses are much lower. Plus, since the majority of the orders are custom-made, its inventory requirement automatically comes down. If there’s a Chappers Kiosk in all malls of India, they will get thousands of custom orders every day. Imagine what that will do to brands that say no to customization. They think they are in a world where people buy ready products just because there’s no choice. If they have a choice at the right price, very few people will buy ready products. They want to create an environment in which other brands want to join. This will be true change.

    Chappers – Tools Used in the Company

    Technology is their backbone. They prefer to use easily readily available software around difficult business systems. That somehow makes the job easy. Of course, they have developed their proprietary Virtual Customization software ourselves. That they would always keep with them as it’s one of the key features of their new business model. They are continuously working on it and want to ensure they constantly keep adding new colors, materials, and products for their customers.

    Chappers – Advice from Founder

    Harshwardhan Patwardhan, Founder of Chappers:

    I think starting early is essential. The amount of learning I got from starting Chappers, no university or degree can give me. Instead, I would encourage the next generation to go explore the world, take a one-way ticket and go on a solo trip to advanced countries. Once we get that exposure, we always get a different perspective. We always try to improve our country that way and I think that’s the most important job any human can do. I would skip the college degrees and I would take up internships in global companies. I would be able to absorb their culture and their know-how. That would take me a million steps ahead of the game.

    I would also start reading earlier. I hated reading my entire childhood, partly because I was never good at studies, but partly also because I never tried enough. I think reading takes you in minds of the people you cannot physically reach. One of the first books I completed was “Screw it lets do it” by Sir Richard Branson. Sir Richard has been my idol since then and I have truly tried living his principles. I have failed at many of them, but while trying them out, I became a better person. Books are priceless.

    FAQs

    When was Chappers founded?

    Chappers was founded in 2014 in Pune.

    Who is the owner of Chappers?

    Harshwardhan Patwardhan is the founder of Chappers.

    What is Chappers famous for?

    Chappers is a Men-focussed Indian footwear brand popular for Kolhapuri Chappals.

  • The Challenges and Winning Strategies of Selling Products Digitally

    The article is authored by Nishit Nanda – CEO, Youlry.

    Where once, jewelry was seen as an important part of daily rituals – later evolving into something of a political statement, late-stage modernity sees it through the lens of the personal. Which begs the question – how do you sell something intimate to the body and to the wearer that by its very nature, distances itself from a physical experience, while keeping it authentic at the same time? The crux of it all – selling jewelry online with its virtual carts and anticipation is still undergoing a learning curve. Especially for brands in India where digital is in its infancy when it comes to the consumer experience journey.

    Designer or not, the value of its parts requires fine jewelry to be expensive. However, beyond product merit, brands are now in the race to create other forms of value that are more evolved for the current crop of target groups

    The luxury market and specifically fine jewelry arrived fashionably late to the online retail space in 2018. For a lot of legacy brands that were trend adopters rather than trendsetters, the main reasoning for this delayed entry was the flawed reasoning that online would be detrimental to brand image, leading to the loss of a certain touch-and-feel immersive experience of brick and mortar high street stores. This was all taken down a notch as 2019 saw luxury brands committing to evolving their hunting grounds despite a slowing global economy, to win over Millenials and Gen Z. As far as fine jewelry was concerned, the emergence of an omni-everything strategy seemed imminent.

    Why omni-everything? Because, compared to omni-personal, omnichannel is the easier stop-gap. While omnichannel comes with a checklist: seamless customer experience, consistent point of contact etc. omni-personal is what distinguishes the haves from the have-nots. It is the secret sauce that seeks to understand consumer desire across categories which is where digital joins forces to create a balance of personalization, privacy, accessibility, and security with dedicated soft touches that are luxury-ready. To say the least, this is more important than ever in a post-pandemic world where brands were thrown into a tailspin because of market flux and supply chain disruptions.

    A big shift nonetheless, increased online shopping has led to a mass quickening of trust across segments and fine jewelry is no exception. If the pandemic taught us anything, it is that in the face of crisis, consumers chose accessibility, value, and convenience control over brand loyalty – all factors that had retailers needing a new way of doing business to stay relevant.


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    As the retail landscape reinvents itself, some of the omni-personal strategies tried and tested to prove successful are:

    Being Agile

    Adapting retail strategy through social listening is a good starting point. Which is how born-on-the-cloud brands have begun their personal journeys in the consumer mindscape. Unlike most legacy brands that hurried to become relevant, new-age luxury brands are redefining the term “presence” itself to create likeable, relatable, and aspirational appeal for a consumer segment whose tastes evolve very quickly. In an era of highly informed consumer behaviour, adapting consistently is crucial to brand form. It showcases a brand’s inner ability to swiftly meet the end-to-end needs of shoppers with a digital response rate that is instant – especially when it comes to content creation, deployment, and response.

    Making Data Relevant

    Like Moses, parting the red sea of dirty data – irrelevant information can be quite daunting. This is why it is very important to understand how to utilise data in a meaningful way to avoid ill-targeted marketing communications that hinder personalized shopping experiences in a segment that is high value, high risk, high investment and high emotion. After all, the whole premise of purchasing jewelry whether online or offline is based on trust which needs to be reinforced digitally – a crucial requirement for omni-personal marketing.

    Building Relationships

    Personalising individual shopping experiences while providing superior end-to-end service is not easy within B2C.

    Bridging the digital divide with a human touch, and solving logistical, communication or inventory hurdles in a more likeable and personalised manner is crucial. Sometimes this could mean taking on certain losses that will even out in the long run with gains made in the form of trust, reliability and service quality for creating an exceptional lifetime customer value.

    Adopting an Omni-approach

    Shoppers need a wealth of choices and integration – including but not limited to product catalogues, purchase execution, delivery etc. This is where omnichannel disrupts the traditional sales funnel in exchange for a more personalised, non-linear route that stands for individual choices in terms of brand discovery, research, payment and after-service along with post-purchase. It is a human touch strategy and evolved retail strategy that places the consumer at the centre of a changing landscape.

    Conclusion

    Ultimately it is the responsibility of brands to understand that they do not determine what the customer wants and instead, are there to fulfil evolving consumer needs with a sound strategy across design, development, sales and marketing. In an era that no longer worships commodities or brands but the consumer, it is important to remember that only the personal is personable.

  • GlobalBees Success Story – How it is Scaling Brands with its Thrasio-Style Model

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by GlobalBees.

    The modern industries of the world are transforming each day with the addition of new companies or startups and their disruptive ideas. Though the increasing competition is certainly bringing forth the best products at equally appreciable rates for the customers of now, it is excessively detrimental for the companies, especially startups to hold on to the fast-paced environment and cement their position in their respective spaces. Thus, many startups often lose control and end up being forgotten. Experience is what most of them lack most often and here’s why nowadays we find companies and veterans teaming up to upscale the startups.

    It was Thrasio Holdings, Inc., which had made this idea possible in the US, scaling over 150 brands to date. This Thrasio-style has become really popular indeed ever since Thrasio began to be a huge success. GlobalBees is one such company that believes in the upscaling of other companies in India and is making it possible in India.

    GlobalBees invests in a wide range of companies across domains like e-commerce, consumer technology, marketing and operations, and more, with a special focus on the sellers of the popular eCommerce platforms like Amazon and Flipkart to improve their sales and help them grow. The company is a Thrasio venture-style arm of FirstCry is already a unicorn in less than 8 months of operation!

    If you want to know more about GlobalBees, its Business Model, Revenue Model, Funding and Investors, Startup Story, Acquisitions, Challenges, Competitors, and more, then read ahead.

    GlobalBees – Company Highlights

    Startup Name GlobalBees
    Legal name GlobalBees Brands Pvt. Ltd.
    Headquarters New Delhi, India
    Industry E-commerce, Retail
    Founders Deepak Khetan, Nitin Agarwal, and Supam Maheshwari
    Founded 2021
    Website www.globalbees.com

    About GlobalBees
    How GlobalBees Acquires Digital Brands?
    GlobalBees – Industry
    GlobalBees – Name, Logo, and Tagline
    GlobalBees – Founders and Team
    GlobalBees – Mission and Vision Statement
    GlobalBees – Brands
    GlobalBees – Business Model and Revenue Model
    GlobalBees – Funding and Investors
    GlobalBees – Investments
    GlobalBees – Acquisitions
    GlobalBees – Growth
    GlobalBees – Competitors
    GlobalBees – Future Plans

    About GlobalBees

    GlobalBees is a startup that focuses on identifying and scaling amazing products. Since it was founded in 2021, GlobalBees has created a varied portfolio of firms in sectors including beauty, home care, personal care, nutrition and wellness, fashion jewellery, and eyewear.

    Globalbees Brands Private Limited is a Non-Government Company that is listed in the company class. This company is registered with the Registrar of Companies (ROC) in Delhi with a paid-up capital of Rs. 7 lakh and authorized share capital of Rs. 7 lakh.

    The startup purchases up-and-coming companies across niches. It aims to upscale merchants from an array of sectors such as fashion, home and kitchen, electronics, cosmetics, personal care, sports, and others. Globalbees works with entrepreneurs that have developed an internet-based business. The company’s staff grows direct-to-consumer (D2C) enterprises in India and beyond. Companies that have produced goods based on unique customer intelligence are favoured by the company.

    GlobalBees assists businesses with scaling and revenue development once they have been acquired by the company. The New Delhi-based unicorn works with the merchants, especially with those who are on the e-commerce platforms like Flipkart and Amazon, the business uses smart marketing methods and other technologies to help these firms flourish. Not only that, but the corporation also starts the worldwide operations of these brands.

    GlobalBees founder Nitin Agarwal stated in an interview that the company has already cooperated with 12+ digital businesses. These companies are selling their goods and services in domestic and international markets.

    How GlobalBees Acquires Digital Brands?

    GlobalBees works in a step-by-step way to acquire or collaborate with the brands. The GlobalBees team begins by gathering knowledge about the digital brand that it will purchase. The startup does this by looking at the revenue numbers and the items that the brand sells. For long-term success, the firm also learns how to establish a brand relationship with customers.

    Following the completion of the first stage, the GlobalBees team prepares a contractual agreement with the founders, outlining all payout terms and circumstances.

    Next, GlobalBees brings in its expertise and cutting-edge tools and technologies to expand the acquired brands. GlobalBees has a team of professionals who work directly with digital companies to help them flourish.

    By acquiring more than 10 companies and becoming a unicorn in such a short span of time, GlobalBees has caused quite a stir in the Indian startup environment.

    GlobalBees – Industry

    The Thrasio model, pioneered by the US-based Thrasio Holdings has been insanely popular around the world and in India too following the brand’s success, which recently boasted of having a portfolio of over 100 brands and picking up a profit of $100 million on revenue of $500 million. The business model that replicates Thrasio was not quite explored before the Indian startups like Mensa Brands, 10Club, GOAT Brand Labs and GlobalBees started to foray into the same.

    It was Amazon, which alone revealed in 2020 that as many as 4,152 sellers on its Indian marketplace have managed to cross Rs 1 crore in sales, which increased by 29% from the figures revealed in the previous year. This indicates the untapped opportunity in this space. The Indian brands like Upscalio, Evenflow, Powerhouse91, and the ones mentioned above have already started to take the pace and have together raised over $300 million so far.

    GlobalBees – Name, Logo, and Tagline

    GlobalBees assists emerging businesses in scaling and selling to marketplaces and other outlets in India and beyond the South Asian market, hence the name “Global-Bees”.

    Company Logo of GlobalBees
    Company Logo of GlobalBees

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    GlobalBees – Founders and Team

    GlobalBees is founded by Deepak Khetan, Supam Maheshwari, and Nitin Agarwal in 2021.

    Deepak Khetan

    GlobalBees’ Chief Financial Officer (CFO) and Head of Corporate Development, Deepak Khetan is an alumnus of the Institute of Chartered Accountants of India, who also attained the CFA Institute and GARP, USA. Deepak is an experienced financial executive with over 18 years of experience in advising, credit, strategy, and accounting activities, and backed strong academic qualifications.

    He has vast experience in mergers and acquisitions, strategic advising, capital raising, and restructuring transactions, as well as cross-border circumstances. Khetan has previously served as a Manager and Chief Manager at ICICI Bank; Group EVP – Investment Banking at YES Bank; Chief Strategy Officer at Smaaash Entertainment and as the CFO and SVP at Edelweiss Financial Services before co-founding GlobalBees.

    Deepak Khetan, GlobalBees Founder
    Deepak Khetan, GlobalBees Founder

    Supam Maheshwari

    The CEO and Co-founder of FirstCry, Supam Maheshwari is a Co-founder of GlobalBees. A Mechanical engineer from the Delhi College of Engineering and an alumnus of IIM Ahmedabad, Supam had earlier co-founded Firstcry and Brainvisa Technologies.

    Supam Maheshwari, GlobalBees Founder
    Supam Maheshwari, GlobalBees Founder

    Nitin Agarwal

    GlobalBees’ Chief Executive Officer (CEO) is Nitin Agarwal. Nitin Agarwal obtained his Btech degree from IIT Delhi and has worked in a series of companies including Citibank, where he served as an Assistant Manager; Equirus Capital, where he served as the Director; Incred, where he was the Chief Operations Officer; Wecash, where he was the Chief Operating Officer and Edelweiss, where Agarwal served as the President and Group CIO, CTO and Chief Digital Officer. Nitin also co-founded Brainvisa, Bigshoebazaar India Pvt Ltd, and GlobalBees till now in his entrepreneurial career.

    Nitin Agarwal, GlobalBees Founder-CEO
    Nitin Agarwal, GlobalBees Founder-CEO

    GlobalBees has an employee strength of 100+ employees.


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    GlobalBees – Mission and Vision Statement

    GlobalBees’ mission statement says, “Investing in and nurturing brands to provide joyful product experiences to the world.”

    According to the company, its growth drivers are:-

    • Innovation – The demands of customers are always changing. It seeks out novel solutions to meet the demands of customers and improve all parts of the customer experience.
    • Inspiration – The company is inspired by others. The team continually listens to our customers and is ever-changing to meet their needs. This enables them to develop amazing things even under the most difficult of circumstances.
    • Impact – Products can have a beneficial influence on people’s lives. The team collaborates with entrepreneurs to develop goods that serve both customers and society.

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    GlobalBees – Business Model and Revenue Model

    The Thrasio-style business model is a relatively new concept in India, but it has garnered positive feedback from the country’s startup community.

    GlobalBees acquires and works with innovative digital companies working in areas such as grooming, personal care, home care and kitchen, food and nutrition, and sports and leisure. The New Delhi-based startup then assists these businesses in scaling and selling to marketplaces (such as Amazon and Flipkart) as well as other channels in India and beyond. GlobalBees has already purchased or collaborated with nearly a dozen businesses that they are selling both in India and beyond.

    “We have created and engaged with brands in the past and realized that most of these brands reach a scale after which it becomes too difficult to scale them,” Agarwal said. “Supam and I have been talking about this for several years, trying to find ways to disrupt this market. We think there’s an opportunity to create a new house of brands that is digital-native.”

    GlobalBees, according to Agarwal, will try to construct a distribution and enterprise ecosystem in the internet realm in the same way that conventional enterprises have done so in the offline world. GlobalBees plans to invest in roughly 30-35 companies spanning from various D2C categories to fast-moving consumer goods (FMCG) and more, following the strategy popularised by US-based Thrasio.

    “Not all brands GlobalBees engages with will get acquired on day one”, Agarwal said.

    GlobalBees isn’t the first company in India to use the Thrasio concept. Other well-known firms that have used the Thrasio strategy to acquire digital brands include Powerhouse91, Mensa Brands, 10club, and UpScale.

    GlobalBees – Funding and Investors

    GlobalBees has raised $301.8 million over five rounds of funding.

    Date Round Amount Lead Investors
    Feb 6, 2024 Debt Financing $18M Avendus Capital
    Dec 28, 2021 Debt Financing $30M Trifecta Capital Advisors
    Dec 28, 2021 Series B $110M Premji Invest
    Jul 18, 2021 Series A $75.88M FirstCry
    Jul 18, 2021 Debt Financing $75.88M

    GlobalBees – Investments

    GlobalBees had invested in one company on April 23, 2022, which was its maiden investment worth April 23, 2022, until it invested again in 5 companies, as of June 13, 2022 reports. The FirstCry arm has invested recently in HealthVit and Top Gummy, nutrition brands. Furthermore, it also invested in personal care brands UrbanGabru and Urban Yog, followed by another investment in a lifestyle brand named Kuber Industries. Though the funding rounds and the investment amounts have not yet been confirmed, reports mentioned that the company has invested up to Rs 50 crore in each of the brands.

    Date Name of the Company Funding Round Deal Value Lead Investor
    June 13, 2022 Kuber Industries
    June 13, 2022 Urban Yog
    June 13, 2022 UrbanGabru
    June 13, 2022 Top Gummy
    June 13, 2022 HealthVit
    April 23, 2022 Candes Corporate Round $3.2 mn Yes

    GlobalBees – Acquisitions

    GlobalBees last acquired Reach on February 9, 2022, which is a sports equipment brand. Reach is the 2nd brand in the sports and fitness that the Thrasi-styled brand acquired.

    Among its other investments, GlobalBees had invested in had acquired a controlling share in Healthyhey (a dietary supplement company), Rey Naturals (a hair care product company), and Intellilens (an eyeglass company) in November 2021. It also invested in Yellow Chimes, a prominent fashion jewellery brand, and Absorbia, an innovative home care brand to possess majority stakes in them, which were added to GlobalBees’ portfolio in the same month.

    Prolixr, a local millennial skincare business, &ME, and The Better Home, a women’s health solutions firm are some other brands that have been earlier acquired by GlobalBees, all of which are covered in the “Acquisitions” section below.

    GlobalBees plans to invest in roughly 30-35 companies spanning from various D2C categories to fast-moving consumer goods (FMCG) and more, following the strategy popularised by US-based Thrasio. The organization is excited about the prospect of purchasing and combining companies, as well as assisting them in scaling and transforming their digital presence. Within this financial year, GlobalBees plans to invest in over 20 brands.

    GlobalBees acquired 11 brands to date. Here’s a list of its acquisitions below:

    Date Acquiree Name About Acquiree Amount
    February 9, 2022 Reach Fitness equipment company from Gurgaon, which rents out equipment and promotes fitness
    Jan 11, 2021 The Butternut Company Healthy snack food brand
    Jan 11, 2021 Mush Premium brand that is aimed to design and develop high-quality bamboo textile products
    Jan 11, 2021 Strauss Premium quality gym and fitness equipment company
    Nov 23, 2021 Rey Naturals Therapeutic Grade essential oils.
    Nov 23, 2021 HealthyHey The company create nutritional and health products for overall fitness and well-being.
    Nov 2, 2021 Yellow Chimes Yellow Chimes is a fashion jewellery brand.
    Nov 2, 2021 Absorbia Absorbia is an innovative product that keeps your belongings damp-free.
    Oct 25, 2021 Prolixr Prolixr embodies the perfect balance of formula savvy and playfulness to inspire a love for skincare.
    Oct 4, 2021 &ME &Me is a lifestyle nutrition brand creating bioactive beverages for women.
    Aug 31, 2021 The Better Home The Better Home is a home care products company, as it builds its portfolio of digital-first brands and helps them scale.

    GlobalBees – Growth

    As the need for online D2C brands grows, GlobalBees is taking up the challenge pretty well. It has been the second Thrasio-style firm to become a unicorn in 2021, following Mensa Brands.

    In just seven months, GlobalBees built a wide portfolio of firms in sectors such as home care, beauty, and personal care, nutrition and wellness, fashion jewellery, and eyewear. Over the next three years, GlobalBees expects to invest in over 100 brands across sectors, including fast-moving consumer goods (FMCG), sports, home organization, and leisure.

    GlobalBees boasts of a presence across 600+ cities. The company has hit a monthly revenue of Rs 1 crore in October 2020, within just nine months after launch.

    The firm, which has offices in Delhi and Bangalore, has established assets and skills in marketing, technology, supply chain and logistics, product innovation, and other areas.

    GlobalBees – Competitors

    The market for Thrasio-style startups has grown rapidly and GlobalBees has also picked up numerous competitors like:

    • Mensa Brands
    • 10club
    • Powerhouse91
    • UpScalio
    • Evenflow
    • GOAT Brand Labs

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    GlobalBees – Future Plans

    The funding that the company received will be used to expand the firm’s product range and accelerate the innovation process, customer experience, talent recruiting, and corporate growth, according to the founder of the company.

    Globalbees has grown to over 100 members. In addition, the firm is in advanced conversations with over 20 organizations to expand its digital-first brand portfolio.

    Speaking on the development, Nitin Agarwal, GlobalBees CEO said, “We have a deep purpose to build meaningful products across industries that address unique consumer needs. With this investment, we are well setup to become India’s largest brand platform. We are an august company of exceptional founders who have built great companies online. With this infusion of capital, we can work together to take these companies global.”

    The company aims to reach $1 billion in revenue by 2026 and turn into a profitable startup.

    FAQs

    What does GlobalBees do?

    GlobalBees invests in potential merchants on e-commerce platforms like Flipkart, Amazon, and Myntra, and works with their founders to improve their sales. These businesses can help businesses separate from the crowd of e-tailers by providing marketing skills.

    Who founded GlobalBees?

    GlobalBees is founded by Deepak Khetan, Supam Maheshwari, and Nitin Agarwal.

    When was GlobalBees founded?

    GlobalBees was founded in May 2021.

    Which companies do GlobalBees compete with?

    10.Club, Mensa Brands, GOAT Brand Labs, Upscalio, Recommend.my, Bellhops, Venn, Mensa, Peopletail, and Key Reception are some of GlobalBees’ major rivals.

    GlobalBees is often referred to as a Thrasio venture-style arm of FirstCry, which it is.

  • Ecommerce vs Retail | What Is the Best Option for Your Business?

    We often come across the question of whether e-commerce or retail is best for a business. E-commerce is a replica of business that enables individuals and companies to sell their services or products via the internet. On the other hand, retail refers to the brick and mortar businesses, in which individuals sell their goods or services from person to person in shops, malls, and localities.

    WIDGET: leadform | CAMPAIGN: undefined

    According to Statista 2021, total retail sales, both online and offline, amounted to 24.2 trillion USD, out of which 19.1 trillion USD was generated by the brick and mortar retail channel and around 4.9 trillion USD was generated by the eCommerce sales channel. In the same year, global retail sales accounted for a growth of 9.7% as a whole and eCommerce accounted for around 19.6% of total retail sales.

    The digital form of business has seen a great increment specifically in this pandemic. But at the same time, the heavy revenue generated from retail cannot be ignored. In this article, we will discuss different factors that will help you know what is best for your business between eCommerce and retail.

    Ecommerce vs Retail, What’s Better?

    Ecommerce vs Retail, What’s Better?

    Retail Ecommerce Sales Worldwide from 2017 to 2022
    Retail Ecommerce Sales Worldwide from 2017 to 2022

    In the following points, we will discuss a comparison between eCommerce and retail from different perspectives:

    Which Has Lesser Prior Investment?

    Ecommerce
    Starting an eCommerce business may sound like an expensive process but with proper planning and execution, one can start running it on a budget. The investment required to start your eCommerce business in India is nearly 5-10 lakh rupees. It includes building your business website, hosting, domain, sales and management tools, web development, and advertisements.

    Retail
    Investment in setting up a retail store can be an expensive process. A retail store has to invest in various things before selling its product. These include building, buying, or renting a store, paying license fees, hiring staff for multiple positions, paying location tax, investing in filling up the store with sufficient items to attract a customer, and other necessary resources relating to business and government. All such expenses make setting up a retail store far more expensive than starting an eCommerce store.

    So, comparatively, the cost of investment is lower in the case of eCommerce than in retail. The advantage of owning an eCommerce store is that it reduces the cost of setting up a brick-and-mortar store or hiring delivery staff. This is because eCommerce stores send their manufactured products to branches such as Amazon, FedEx, Ship Bob, Flipkart, etc. for order fulfilment. After this, it is the responsibility of these branches to pack, track and send the order to the buyer.


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    Which is Easier to Maintain?

    Ecommerce
    It is easier to maintain eCommerce compared to a retail store. But there are still some complications that need to be checked from time to time so that the store can run smoothly. For example- you need to maintain a warehouse or any proper space to keep the products safe and accessible for dropshipping. Since you are not directly connected with your customers, you will have to keep a check on analytics to track customer experience and discover their new tastes and likings. You will also need to keep a check on the timing of product delivery to avoid negative feedback from customers.

    Retail
    The retail business is considered to be a bit more complicated in terms of maintenance. This is because for various reasons like there is a need to maintain a proper brick-and-mortar store and inventory, and maintenance of an adequate communication balance on both sides in real-time with suppliers and customers. Also, you have to keep a regular check on your staff if they are handling the customers politely. You will have to train them and make them more knowledgeable about the services and products you are offering so that they can deal with the customers pleasantly and accurately.

    It is easier to modernize the stock in an eCommerce store. But this task becomes pretty difficult with retail stores as for updating products, you need to set up meetings with suppliers now and then. So, in case of ease of maintenance, eCommerce is a better option for your business.

    Share of consumers going to brick and mortar stores by country in 2021
    Share of consumers going to brick and mortar stores by country in 2021

    Which Has Better Profitability in Future?

    Ecommerce
    With eCommerce comes a great benefit which is unlimited access to customers. Once you are over the internet, there is no limit to the number of people you can reach. Ecommerce allows you to showcase your products and services to a large number of people, therefore, no limitation to any particular locality. Moreover, you can always expand your business and attract new customers via smart and modern marketing techniques. These include offering free shipping, discounts, gift cards, reward points, etc. All this ultimately ensures better sales and thus, better profits.

    Retail
    Retail stores do not have very wide access to the customers as they have limitations due to their fixed location. However, this does not mean that there are no benefits of a retail store. Even in today’s time, many customers do not feel satisfied until they can touch and feel the products themselves. So, the customers who are still skeptical about online shopping contributes to the sales and profits of retail stores. Moreover, there are fewer chances of online fraud with retail shops, as the customer doesn’t need to provide their personal information including emails, mobile numbers, bank details, etc.

    In this case, eCommerce will be the clear winner because the products and services of eCommerce stores are visible to a huge audience which makes for a large potential customer base and thus, better sales and profits.


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    Conclusion

    We compared e-commerce and retail stores based on investment, performance easiness, and profits obtained. Although there are factors like trusted quality and physical interaction that make retail stores better than eCommerce ones. But after making an overall comparison and looking at the future of the digital world, we concluded that eCommerce stores are the best way to expand your business and earn more profit in the future since it offers a wider reach with less investment.

    However, you can also take another way which is you can opt for omnichannel retail as it allows you to buy products either online or physically through the real stores to keep your customers satisfied in all the possible ways.

    FAQs

    What is the difference between eCommerce and retail?

    Retail is something that can be conducted in a brick-and-mortar store, online, between persons, or through direct mail. However, eCommerce refers to electronic commerce which means commercial transactions that are conducted only through the internet.

    How owning an online store is better than physical stores?

    Owners of the online stores can sell and ship their products and services to a large number of people with fewer investments as buying a website is easier and more economical than buying a physical store.

    What is the biggest challenge faced by eCommerce?

    One of the most significant challenges faced by eCommerce is the security issue. Ecommerce involves a great deal of personal information and even a small technical issue can create huge damage to a business’s operations and image.

    What is a retail store?

    The most common example of a retail store is the conventional brick-and-mortar stores like Walmart, Best Buy, etc. However, retailing as a whole includes goods or services sold through stores, kiosks, or even on the internet.

  • Email Marketing vs Social Media Marketing | What’s Best for Your Business?

    Marketers adopt countless ways of marketing and creating brand awareness for businesses. Two of the most common and effective methods of achieving marketing goals are social media marketing and email marketing. Both are wondrous in their ways. According to Statista, there were around 4.1 billion email users and around 3.78 billion social media users worldwide as of 2021. This number forms around 48% of the total world’s population.

    Social media is gaining popularity day by day. But, at the same time, we can’t oversee the influence of emails on its users for trade. Now the question is which is better? Which of the two can have a greater impact on the target audience? You will get the answer to all of your queries in this article. So, let’s start this battle of Social Media Marketing vs Email Marketing.

    What is Email Marketing?
    What is Social Media Marketing?
    Social Media Marketing vs Email Marketing
    How Can You Effectively Combine Email and Social Media Marketing?

    What is Email Marketing?

    Email marketing is a kind of digital marketing that uses emails to create brand awareness. It puts forward the latest services, products, offerings, discounts, and everything among the users to make them aware and remember the brand. Some of the benefits of email marketing include:

    • It assists in building and enhancing the customer experience.
    • It makes for a profitable strategy to reach the audience emotionally through personalized emails.
    • One can save a lot of time in this marketing strategy via its automation feature.
    • It is measurable, hence one can measure the growth of a marketing campaign via web analytics in order to get accurate data.
    Number of email users worldwide from 2017 to 2022
    Number of email users worldwide from 2017 to 2022

    Industries Benefited from Email Marketing

    A Snovio labs study reveals that 72% of customers belonging to business communication prefer emails over social media. Here are some of the industries that enjoy the benefits of email marketing:

    Automotive

    This is the foremost industry that boosts its sales via email marketing. With email marketing, it becomes easy to track customers’ choices. One can obtain a huge amount of profit in a single purchase. Email marketing is used by the industry to share about new models, sell insurances, and more. Thus, the automotive industry is one of the most benefitted from email marketing.

    Pharmaceutical

    A survey in which 4000 physicians took part revealed that only one-third of physicians use social media channels. Doctors usually don’t spend their time on social media, and that’s why the pharmaceutical sector performs its marketing via emails.

    The following are some of the examples of top companies that use email marketing for their success:

    • Airbnb
    • Uber
    • Bonobos
    • Cook Smarts
    • Kate Spade
    • Litmus
    • BuzzFeed
    • PayPal
    • Drift

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    What is Social Media Marketing?

    Social media marketing refers to the promotion of services and products by using social media platforms. It is the most exciting and powerful way to reach new targeted customers from all over the globe. Some of the benefits of social media marketing include:

    • One can connect with the audience related to the business worldwide.
    • By creating effective posts and stories, one can drive more sales to one’s website.
    • It helps convert the new audiences into customers, thus increasing conversion rates.
    • It leads to enhanced search engine rankings, which ultimately contributes to a brand’s popularity.
    Number of social network users worldwide from 2017 to 2022
    Number of social network users worldwide from 2017 to 2022

    Industries Benefited from Social Media Marketing

    According to a study published on BarnRaisers, around 92% of total customers trust social media instead of any other form of advertising. Here are the industries that benefited the most from social media marketing:

    Entertainment

    The entertainment industry has the biggest share of social media marketing in comparison to any other industry. As per a report, 63.2℅ of all the posts on Facebook belong to the entertainment sector. These sectors include telecom, retail, financial services, beverage, and food. Instagram is one of the best examples of entertainment sections generating a handsome revenue.

    Retail

    The retail sector comes in the second position after entertainment which has benefited from social media marketing. Live sessions or chatboxes on Instagram or Facebook are famous examples. It also assists in displaying features of products and services which is great for the retail startups in today’s time. Moreover, the positive feedback from the customers on social media works like word of mouth which attracts more customers.

    Real Estate

    A study according to a real estate website states that 44% of customers become successful in obtaining new clients for their properties from social media. Brokers, agents, property managers, and developers all belonging to the real estate industry, utilize social media for their marketing. With social media, it becomes pretty easy to showcase the features of properties in dynamic ways.

    The following are some of the examples of top companies that use social media marketing for their success:

    • GoPro
    • Nike
    • Spotify
    • Wayfair
    • Pop-Tarts
    • National Geographic
    • Starbucks
    • Dove
    • Wendy’s

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    Social Media Marketing vs Email Marketing

    In the following points, we will discuss which is better among email and social media marketing from different perspectives:

    Which is Effective in Reaching The Target Audience?

    According to OptiMonster 2020, around 99% of email users check their mailbox every day. Some people even check their emails around 20 times in a single day.
    On the other hand, the community that opens up social media first thing in the morning is more likely to use it for personal purposes. So, basically during the workdays, people are more likely to check their emails first rather than their social media.

    When it comes to targeting, every business wants to capture its target market to be successful. When you indulge your business in paid social media advertisements, you get to select who sees it to a certain extent. However, in the case of organic advertisements, you do not get control over who sees it and who doesn’t. On contrary, with email marketing, you can segment the entire list of your target audience to gain the best results. As emails will help you reach the target audience better, email marketing seems to be a winner here.

    Which Has The Better Return On Investment (ROI)?

    The return on investment(ROI) refers to the measurement of profit after some investment or comparison of revenue of various investments at a particular time. According to DMA 2019, one can get a return of around £42 for just a pound worth of investment in email marketing.

    On the other hand, as per the study published in Forbes, around 6% of marketers could execute customer relationship management on social media, while 56% of them were still in the planning stage of how to achieve it. The fact is that social media ROI can be fruitful only if you are super-viral among a few channels. So, the chances of obtaining satisfactory returns decrease on social media. Hence, email marketing is the winner in this case.

    Which Can Attract New Audiences Better?

    Although email marketing has a huge user base as compared to social media, when it comes to reaching new audiences, it is hard to acquire them through it. This is because social media has no limits. You must have seen several channels, specifically Instagram and Facebook with a lot of supporters, this makes it a great source for new audience attraction.

    If you provide insightful and useful services and products to the consumers, then they will share them on their social media which will directly lead to increased traffic on your brand channels. You can achieve wonders in your business once your posts can start getting viral. Creating more sponsored advertisements for your products is another way to reach new audiences. Thus, this is the field where social media marketing seems to win the battle.

    How Can You Effectively Combine Email and Social Media Marketing?

    Impact of social media on email marketing in India in 2021
    Impact of social media on email marketing in India in 2021

    Now when both kinds of marketing have their pros and cons, what if we combine both and extract the only pros from these forms of marketing. So, here are how you can effectively combine email and social  media marketing for your business’s success:

    • Reuse the content on both channels. It will save your time and is also cost-effective.
    • Generate a similar content calendar for both the channels and adopt a parallel content strategy for both platforms.
    • Use social media to collect emails from your brand’s audience. Add call to action buttons to the social media posts which further lead the user to enter an email so that the brand can proceed with email marketing.
    • Organize engaging contests or giveaways on social media and collect emails from users. For instance, you can ask the users to provide a tagline for your brand and in return, you can give some prize. This will intact your brand in users’ minds and create audience engagement too while participating in contests.
    • While getting positive responses from social media about the channels, you can send feedback in emails that will lead you to convert your audience into customers.

    Conclusion

    Here the battle between social media marketing and email marketing ends. What we observed is that the preference for email marketing is still alive from various perspectives. But we can’t oversee the gaining popularity of social media day by day where around 3.96 billion users reside.

    So, the best thing for businesses is to combine their social media and emails and market their products and services accordingly to maximize their chances of success.

    FAQs

    What is the difference between email marketing and social media marketing?

    Email marketing focuses on customer relationship strengthening whereas social media is more focused on attracting new potential customers.

    Is email marketing better than social media marketing?

    As per overall performance, email marketing does perform better than social media marketing due to the huge amount of email users and better opening rate.

    What are the advantages of email marketing?

    Advantages of email marketing include:

    • Improving Sales
    • Collecting feedback
    • Reaching the right people at the right time
    • Traffic generation for your website
    • Increasing leads

    Which is the biggest social media platform for business?

    Facebook with over 2.9 billion users is the biggest social media platform for business.

  • How Much Does It Cost to Build an E-commerce Marketplace Website?

    Online shopping is moving towards a new direction in the world, undergoing constant modifications and growing rapidly. The marketing trends are changing in the blink of an eye.

    The e-commerce marketplace is evolving so quickly that it is hard to imagine how the industry will look in the next decade.

    A study says 80% of shopping is done online globally. In 2021, eBay alone had a market cap of 47.8 billion dollars. Online sale is increasing every year and now it’s the right time to build your e-commerce marketplace.

    Starting an online marketplace is not easy, it requires an investment and a clear-cut scheme.

    Now the question is, how much does an eCommerce marketplace development cost?

    Well, in this article, we will cover the investment needed for developing an e-commerce marketplace website.

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    What is an eCommerce Marketplace?
    Types of Marketplaces
    How Much Does an eCommerce Marketplace Development Cost?

    What is an eCommerce Marketplace?

    An eCommerce marketplace is an online platform where buyers can find different brands’ products from different sellers showcased on the same platform. It allows all the vendors to sell their goods on the same eCommerce marketplace, which entirely runs on one software infrastructure.

    These eCommerce marketplace companies take a small percentage of product sales from vendors selling across the platforms. For example Amazon, eBay, Flipkart, etc.

    Types of Marketplaces

    Are you sure about the category of the marketplace? Let’s understand the classification of the marketplaces. Depending upon the type of marketplace, the cost of development is affected. The marketplace is divided into two parts that affect the eCommerce marketplace development cost.

    Based on Participants

    The target audience and the intention of the buyer-seller relationship decide your marketplace, which can be one of the following:

    B2C Marketplaces: It offers an opportunity to vendors to sell products directly to the consumers. B2C marketplaces are generally monetized by listing fees, commissions, subscription fees, etc. For instance, booking.com.

    B2B Marketplaces: It provides an opportunity for manufacturers to sell products or services. A third party usually operates them. Their motive is to promote transparency in deals and buying/selling processes. These are monetized through listing fees, commission, subscription fees, etc. For instance, eWorldTrade, and Alibaba.

    C2C or P2P Marketplaces: These marketplaces connect people to share their products and services in exchange for money, such as a car. The motive behind C2C marketplaces is for maximum utilisation of resources, which are monetized through paid ads and promotions. For instance, Etsy, OLX.

    Ecommerce Marketplace: It allows individuals and multiple businesses to sell their products and services online to consumers. These marketplaces are the most popular imaging eCommerce marketplace development cost. Example: Amazon, eBay.

    mCommerce or Mobile Marketplaces: These are designed to facilitate mobile shopping. These are digital stores monetized through subscription fees, commission fees, freemium plans, lead fees, and listing fees. Example: Upwork, Fiverr, Sephora.

    Crowdfunding Marketplaces: It allows its members to raise funds from the groups for a specific project. Monetization strategies include transaction fees and commission fees. Example: Kickstarter, Indiegogo.

    Auction Platforms: They encourage vendors to fulfil the services by bidding. It exclusively helps to gain the most competitive rates for a specific item or service. Auction platforms monetize through transaction fees. Example: Artsy.

    Based on Business Model

    The structure of your marketplace depends upon the business model. The business model defines the strategies to attract buyers and sellers and generate revenue. It helps determine the essential functionality and even affects the marketplace development cost. Business models are classified into three groups:

    Horizontal marketplaces: They deal in different categories to different consumers. consumers can find all the necessary products. Here the competition is fierce, and a wider audience is covered. Example: OLX, Etsy

    Vertical Marketplace: Instead of selling every product to everyone, these are mainly focused on niche services or products. Here you experience less competition. Additionally, you can focus on delivering better personalization. Example: StockX

    Global Marketplace: It allows the exchange of goods and services worldwide. It has the widest audience and hence more power to generate revenue. You will face some language barriers and legal constraints in the global marketplace. Example: amazon.com, ebay.com

    Marketplace App Development Time
    Marketplace App Development Time

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    How Much Does an eCommerce Marketplace Development Cost?

    The eCommerce marketplace development cost depends upon what features you want to add account. However, here’s an estimated cost if you’re building an e-commerce marketplace such as Amazon.

    The eCommerce marketplace is built on two platforms: Website and App.

    Marketplace Website Development Cost

    The table contains the eCommerce marketplace development cost of a website like Amazon. Amazon is a B2C marketplace where one can find any product. Here is the average possible development cost.

    Stage: Development Estimated cost
    Business Analysis $10,000 – $22,000
    Design $5000 – $14,000
    Front-end $25,000 – $75,000
    Back-end $39,000 – $116,000
    Quality Assurance $14,000 – $62,000

    Basic Features

    Feature Estimated Cost
    Authorization $5,000 – $21,000
    Profiles (Host, Admin, Guest) $18,000 – $25,000
    Search with Filters $15,000 – $20,000
    Product Pages $10,000 – $14,000
    Shopping Cart $12,000 – $17,000
    Payment System $15,000 – $20,000
    Customer Review $12,000 – $18,000
    Notifications $10,000 – $20,000

    Advanced features

    Feature Estimated Cost
    Product Comparison $10,000 – $16,000
    WishList $5,000 – $10,000
    Geographical Location $10,000 – $16,000
    Message and Texts $10,000 – $20,000
    CRM Integration $12,000 – $16,000
    Vendor Admin Panel $10,000 – $16,000
    Product Recommendation $10,000 – $40,000

    Marketplace App Development Cost

    A simple marketplace app includes an admin panel, buyers profile, sellers profile, reviews, search system, product page, messaging feature, notifications, payment gateway, shopping cart, and search filters.

    If you’re looking for the exact numbers, the table below shows the estimated range as the cost may differ depending upon the complexity.

    Feature Estimated Cost
    Authorization and Authentication $5,000 – $21,000
    Admin Panel $18,000 – $25,000
    Search with Filters $15,000 – $20,000
    Product Pages $10,000 – $14,000
    Shopping Cart $12,000 – $17,000
    Product Recommendations $10,000 – $40,000
    Payment System $15,000 – $20,000
    Shipping $10,000 – $20,000
    Geolocation $10,000 – $16,000
    Photoshopping $10,000 – $20,000
    Virtual Placement $16,000 – $30,000
    Customer Review $12,000 – $18,000
    Notifications $10,000 – $20,000

    The cost of developing a marketplace website and an app depends upon the industry, marketplace type and target audience.

    Conclusion

    The eCommerce marketplace development cost depends upon the target audience, marketplace type and industry. It can cost you $80,000 to $289,000 depending upon the features you want to add. Preliminary research is needed to build an e-commerce marketplace platform. However, reaching out to an expert might solve this.

    FAQs

    How long does it take to develop an online marketplace?

    If you want to build a basic marketplace website from scratch, it would require more than 1000 hours.

    How much does it cost to build a platform like Amazon?

    It would cost you around 60, 000 to more than 90,000 to build an e-commerce marketplace like Amazon.

  • 15 Proven Ways to Increase Your Average Order Value

    Every extra penny earned need not come from a new customer!

    Sometimes it only takes a few tweaks to encourage your existing customers to spend more on your eCommerce store. After all, they already trust you and are 60-70% more likely to place an order.

    For instance, we all have visited some fast-food chains such as McDonald’s. Food chains like these boost their sales by offering combo offers (Buy burgers, fries & coke to save ₹89) or small ad-on like french fries.

    Essentially 4 major metrics impact your eComm store: Number of new customers (over a period of time), Average order value (AOV), Repeated orders, and Marketing/ retention costs.

    Today we will focus on ways to enhance the average order value of your store. Before we jump onto strategies, let us understand what the average order value is and why it is important.

    1. Increase Free-Shipping Threshold
    2. Cross-Sell
    3. Upsell
    4. Create Combo/ Bundle offer
    5. Offer Discounts on Bulk Orders
    6. Loyalty Programme
    7. Personalized Experience
    8. Time-Sensitive Offers
    9. Add Social Proof
    10. Free Gift
    11. Incentivize First Purchase
    12. Build Trust and Authority
    13. Flexible Return Policy
    14. Coupons (Product Discounts)
    15. Downsell Add-ons

    What is the Average Order Value?

    The average order value is the average amount spent on your store by a customer that purchases from you. For instance, in a month, your store gets 500 orders and generates ₹50,000. Then, the average order value is ₹100 for your store.

    Average Order Value= Total revenue/ Total number of order

    How would you feel if a customer enters your store looking for a ₹200 purse But, then purchase a purse and other accessories worth ₹1500.

    So, an increase in the average order value helps in:

    1. More revenue without extra marketing spent
    2. Increasing customer lifetime value (LTV)
    3. Recovering customer acquisition cost
    4. Increasing profit
    5. Clearing out inventory

    Generally, eComm store applications, such as Shopify, provide AOV on the dashboard. Nonetheless, you can easily calculate it with the formula. More the AOV, the better it is.

    The average order value increases when a customer places an order of a higher amount. No one wants to buy more. Your offering should have a higher perceived value to encourage buyers to spend more on your store. Note that just increasing customers will not boost your AOV. Here are 15 strategies to incentivize the customer to splurge a little extra. After all, a store earns 40% of its revenue via repeated customers.

    Now, let us look into 15 ways to increase your average order value.

    1. Increase Free-Shipping Threshold

    One of the easiest ways to increase your average order value, almost instantly, is by increasing the free shipping threshold.

    For instance, if you offer free shipping at ₹500, increase that to ₹600. Make a leap of about 20-30% of the current average order value. So, if your current average order value is ₹780. Then, increase the free shipping threshold to ₹700.

    In case you do not offer free shipping, we highly recommend opting for it. It helps a lot to move the AOV high. In alternate cases, people place small orders as they have to pay for shipping either way.

    Also, highlight this limit on the cart or at the top of the website. Let customers know that they are ₹x away from availing of free shipping.

    A great example of the same is the classic ₹500 free shipping base on Amazon.

    Free shipping threshold
    Free shipping threshold

    2. Cross-Sell

    Cross-sell means recommending and selling complementary products. They are not similar products but products related, such as toothpaste and brush. The aim is to prevent the buyer from purchasing items from different stores and provide it with all in one place.

    You could display these related products on:

    • Home page
    • Product page
    • Cart
    • Check out

    In this case, Amazon offers the option to add a tempered glass, warranty with the mobile phone.

    Cross-selling
    Cross-selling

    You can take this a step further by providing what other buyers pair the product with and personalized recommendations based on user history. Another effective way of cross-selling is by recommending a product after the order confirmation at a limited time period discount.

    3. Upsell

    Upsell means selling an upgraded version of the product. It can mean recommending a higher version of a product or a larger size.

    For instance, you can recommend a more expensive camera model for added features and better utility.

    Upselling occurs in two ways: upgrading to an expensive model or high-profit margin services such as an extended warranty.

    You can offer a comparison chart like this on the product page itself. It should clearly communicate why the upgrade is worth those pennies.

    Comparison chart for upselling
    Comparison chart for upselling

    4. Create a Combo/ Bundle offers

    Let us say you enter a store to buy a printer. What if the seller offers you 4 cartridge ink and printing paper all together at a discounted rate? Would you not be tempted to buy it all?

    Similarly, you could create bundles or combo offers with related products to make a higher value sale. You could also provide custom combos/bundles to make it more engaging and relevant.

    Combos/ Bundles
    Combos/ Bundles

    These bundles really work well in case you see multiple small purchases in the store. This one again ensures the purchase of related items all from your store instead of different stores.

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    5. Offer Discounts on Bulk Orders

    One of the best ways to increase basket size is to offer great discounts on bulk orders.

    Display clearly the savings on placing a bulk order. It is similar to wholesale orders where customers get an added discount due to bulk purchases. These bulk orders could be customizable, which would further enhance the ROI of the strategy.

    Here is a WooCommerce plugin to add discounts to your bulk orders.

    WooCommerce Plugin
    WooCommerce Plugin

    6. Loyalty Programme

    Many brands have loyalty programs for their customers. It aims to encourage regular customers to purchase from the brand in exchange for various perks.

    They work great to increase repeated orders. Also, repeated customers tend to spend more on the store compared to new customers.

    You could offer benefits such as a lower free shipping threshold, early access to sales, 24/7 customer support, cashback, bonus points, free samples on each purchase, and much more.

    Loyalty program
    Loyalty program

    7. Personalized Experience

    A personalized shopping experience can enhance the customer’s experience via curated recommendations. It generally eases the process of navigating through the website.

    You can personalize product recommendations based on their search history. You can offer custom bundle offers depending upon their activity on the website. You could also recommend product refills and repeat purchases based on the order history.

    Personalized product recommendations
    Personalized product recommendations

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    8. Time-Sensitive Offers

    Provide limited-time offers to create a sense of urgency among the buyers. Time-sensitive offers combined with dedicated product discounts could boost the average order value.

    Offer product discounts, remove the free shipping threshold, provide discounted bundles, or any other incentive to encourage people to purchase.

    Highlight special offers on the product page, homepage, and cart to make sure that people know about the limited-time deal.

    Limited Time Offers
    Limited Time Offers

    9. Add Social Proof

    Social proof is crucial to stimulate sales for any store. But, how would it impact the average order value?

    Add customer reviews and ratings to the complementary products while cross-selling and upselling. Also, add pictures and other social proof on your website to ensure trust and build credibility.

    There are many products on Amazon that do not sell only due to the absence of reviews and any other social proof. Hence, testimonials and social proof are really important to encourage sales and average order value.

    Provide Social Proof
    Provide Social Proof

    10. Free Gift

    Offer Free Gifts
    Offer Free Gifts

    Offering gifts to your customers can be a great incentive. You could offer free samples or gift cards at a certain threshold. This would increase the average order value. Free samples, as well as gift cards, could also stimulate future purchases.

    Keep in mind your margins decide the value of the gift. You do not want to bear the cost of free items.

    For free samples, pick items or variants that don’t generally perform well to keep the inventory running. You could also give special offers on special occasions and boost sales.

    11. Incentivize First Purchase

    For a new eCommerce store, it is crucial to get the first hundred/ thousand purchases. You can motivate people to make their first purchase by offering them discounts, offers, and other perks on their first purchase.

    Most of the stores offer a 10 to 20% discount on the first purchase from the website or their application.

    In this image as you can see, Amazon goes a step further and offers free shipping on the first order but in a particular category. This would motivate customers to purchase from different categories. It’s a great strategy in case you do not see sales in a particular section of your store.

    However, ensure to promote the offer to your customers effectively to ensure order placement.

    Offer on first-time purchase
    Offer on first-time purchase

    12. Build Trust and Authority

    Building trust and authority is crucial for eCommerce stores. People might avoid placing orders or not come back if they do not find your store reliable.

    Mention the policies very clearly and have FAQs in different sections of your stores. Use live chatbot and other customer care services to ensure credibility and security. These things do not affect average order value directly but play a major role in impacting customer psychology.

    Simple things like a dedicated domain name, customer reviews, and contact details make a huge difference.

    13. Flexible Return Policy

    For the longest time, people did not purchase from online stores due to a lack of trust and quality assurance. People prefer offline stores as they can return the items in case of defects or any other discrepancy.

    Offering a flexible return policy helps your store build that trust and encourages people to make their first purchase.

    Today, most eCommerce stores offer a return policy of 15-30 days. As a result people also purchase more products as they are assured that they can return the products if something has to happen.

    Flexible return policy
    Flexible return policy

    14. Coupons (Product Discounts)

    Buy 2, Get 2 Free!

    We all get tempted to buy 2 products and pick 4 products in total to avail of such an offer. It helps companies clear the inventory, increase order value and enhance brand image.

    Coupons that offer product discounts are well received. Offers such as:

    • ₹500 off on the purchase of ₹2499
    • Buy 3, Get 1
    • Flat 20%
    • 25% off on purchase of ₹3599
    • Cashback of ₹350 on purchase of over ₹2499

    These offers encourage customers to increase their order value automatically. All these discounts need to be tactfully placed to ensure margins and sell off more products.

    Offer Coupons
    Offer Coupons

    15. Downsell Add-ons

    We do not think twice before picking up chocolate or candy at the checkout counter of a supermarket. Why? Because it is cheap.

    Similarly, you can increase the average order value by offering a complementary product that is inexpensive. It becomes a no-brainer to add a product that doesn’t cost much and pairs well with the item purchased. For instance, offering batteries with the clock.

    It is easier to incentivize the customer and at the same time increase order value.

    Offer a complimentary product
    Offer a complimentary product

    All of these strategies would enhance the ROI and get more profit. However, ensure to implement one strategy at a time and not all together. This way you can track which ones are the most beneficial and double down on those tactics.

    Also, you should clearly communicate these offers and discounts to your customers. What’s the benefit if your customers are not aware of these incentives?

    These strategies would have different effects on different stores. Hence, you need to do an A/B test and find the right way to promote the average order value.


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    3 Bonus Tips to Increase Average Order Value

    The average order value impacts your profit and your revenue. More AOV implies more profit without having to spend more. Apart from trying to sell more and encouraging customers, here are some simple ways to enhance your average order value.

    Firstly, take an analytical approach to the average order value. This involves segmenting your audience based on the amount spent by them. Start by cross-selling to the customers that spend less.

    Alternatively, customers that spend more would find loyalty programs appealing. Further, you could move on to free shipping, providing coupons, and other incentives.

    Secondly, ensure to provide a smooth website experience. A website with a lot of pop-ups, slow loading speed, lots of lag, or frequent crashes would negatively impact customer experience. In this case, you might not be able to sell at all and drive customers away!

    Lastly, understand your audience to provide a relevant and personalized experience. Consider what your audience needs and map out the customer journey. Find the motivation points for your customers by talking to them, looking at competitors, and analyzing past campaigns.

    Conclusion

    So, It all narrows down to understanding your customers, segmenting them, and providing suitable incentives to increase average order value. It acts as a window into the purchasing behavior of the customers. Hence, a higher average order value can attract added profit and revenue without extra cost.

    FAQs

    How do you increase the average value of a basket?

    Upsell your products, provide free shipping, keep time-sensitive offers, personalise customers’ experience, and provide bundle offers.

    How is the average order value calculated?

    You can calculate your average order value by simply dividing total revenue by the number of orders. For instance, in a month, your store gets 500 orders and generates ₹50,000. Then, the average order value is ₹100 for your store.

    How can I increase my eCommerce AOV?

    Provide bundle, provide limited time offers, offer free shipping on minimum orders, and keep a flexible return policy.

  • Near.Store: How it is Connecting Customers to Nearby Stores?

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Near.Store.

    The e-commerce sphere is widely changing these days. With Kirana stores entering the online space, the hyperlocal e-commerce sector is getting more dynamic than ever. In the same sector, Ashish Kumar, Ramakrishnan A, and Diwakar Mitr founded Near.Store in 2018.

    Let’s walk through the Journey of Near.Store along with getting a glance of the Near.Store founders, Business model, Funding, Revenue model, how it started & more.

    Near.Store – Company Highlights

    Startup Name Near.Store
    Headquarters Mumbai, India
    Industry E-commerce
    Founders Ashish Kumar, Ramakrishnan A, Diwakar Mitr
    Founded 2018
    Total funding $300,000 (Seed Round)
    Parent Organization Ekasta Tech Private Limited
    Website near.store
    Contact Email hello@ekasta.com

    Near.Store – About and How it Works
    Near.Store – Founders and Team
    Near.Store – Startup Story
    Near.Store – Name, Tagline and Logo
    Near.Store – Startup Launch
    Near.Store – Business Model and Revenue Model
    Near.Store – Target Market Size
    Near.Store – Startup Challenges
    Near.Store – Funding and Investors
    Near.Store – Advisors and Mentors
    Near.Store – Growth
    Near.Store – Future Plans


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    Near.Store – About and How it Works

    Near.Store is an instant plug and play solution to create a digital presence for any shop. Near.Store devices need to be plugged into an existing billing system of any establishment. Once active, it creates a unique online presence on the Near.Store platform for the shop. This enables a mom-n-pop shop to be discovered online, generate online sales, attract new customers and build loyalty with the existing consumer base.

    Near.store plug and play device
    Near.store plug and play device

    Near.Store aims to provide a plug and play e-commerce platform format for all offline retailers by making the products visible on any local search results. For example, if a person living proximity of any Near.Store enabled shop, is looking for a specific brand of shampoo, the search results will show the local shop as an option to purchase. Till now, any such result would take a customer only to eCommerce sites such as Amazon or BigBasket.  

    To be a part of the Near.Store platform, a shop owner simply needs to plug in the Near.Store devices to their billing system. The device does not require any additional internet connection or a lengthy implementation process.

    Once connected, the device then automatically uploads a shop’s products to create a web storefront. Now, every time a shop owner scans a product and generates a bill, each SKU scanned becomes a part of the backend database for each store.

    Near.store – Nearby Store

    Near.Store – Founders and Team

    Ashish Kumar, Ramakrishnan A, and Diwakar Mitr are the founders of Near.Store in 2018. They have worked together on another startup before Near.Store and hence this venture was an extension of their existing partnership.

    The founders have known each other since 2005. Ramakrishnan and Ashish went to business school together (ISB, Class of 2006) while Diwakar and Ashish were colleges at BDA Partners – a leading boutique M&A Advisory. The founders have an average of 15 years of work experience across various sectors.

    Ashish Kumar

    Co-Founder Near.Store
    Ashish Kumar, Co-founder and CEO of Near.Store

    Ashish Kumar is known as the Co-founder and CEO of Near.Store. Kumar is an MBA degree holder from the Indian School of Business in Finance/Marketing. Before founding Near.Store, Ashish served in more than one companies as Associate and Manager. The list includes Deloitte, DTZ, Jones Lang LaSalle, Shapoorji Pallonji, and has finally served IndiaBulls as the VP of Fund Management. Kumar has also been a Co-foudner of another firm earlier named Spiral9 Interactive, in which he also served as a Partner.

    Ramakrishnan A

    Ramakrishnan A, Co-founder and CTO of Near.Store

    Ramakrishnan A is another Co-founder of Real.Store, who is also the CTO of the company. Before founding Real.Store, Ramakrishnan has also founded BeaconsTalk Technologies and Pinprox Technologies. He also served many other companies in crucial positions, which includes the role of Associate Director at Mindtree. Infosys, iRunway, Ikanos Communications, and Sasken, are some other companies where he worked as the Senior Software Engineer and as a Consultant. The CTO of Real-Store holds a BE degree in Electrical and Electronics Engineering along with a PG program in Operations and IT Management and Strategic Marketing.  

    Diwakar Mitr

    Diwakar Mitr, Co-founder at Near.Store

    Diwakar Mitr is a alumnus of Dartmouth College, where he studied AB, Economics, Computer Science. Before founding Near.Store, Mitr was associated with BDA Partners and later founded BeaconsTalk Technologies with one of the founders of the company.

    Ramki is the CTO and has over 16 years of hardware and software development experience. Ashish looks after business development and fundraising, Diwakar handles the overseas operations and finance while Ramakrishnan heads technology and engineering at Near.Store.

    Shripad Nadkarni, a former marketing head of Coca Cola India has also joined the company as a senior advisor.

    Near.Store – Startup Story

    Before starting Near.Store, Ashish Kumar, Ramakrishnan A, and Diwakar Mitr were working together on another tech-led startup that helped shop owners make real-time coupon offers to its customers in a hyper-local presence. This gave them a detailed understanding of how a shop interacted with its customers. They also realized that while most shop-owners wanted to counter the competition from the online stores like BigBasket and Amazon, they lacked the technical know-how.

    Most of them found the process of creating an online catalog and linking to online payment mechanisms difficult to manage. Hence this trio started to pilot with some of the shop owners that they already had established a relationship with. Based on the positive response and feedback, this trio team slowly developed a product and offerings and did a pilot launch in January 2020.

    The co-founders wanted the name to be simple to use and easy to understand.

    “It signifies the fact that we are bringing the store closer to the customer. However, from a shop owner’s perspective, since it is about being discovered by local area customers, it represents a shop which is Near and reachable.” said Ashish Kumar, Cofounder of Near.Store.

    Hence they finalized on “Near.Store”.


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    Near.Store – Business Model and Revenue Model

    Near.Store charges a flat fee to the customers when they order through the platform. As the venture grows in volume, it hopes to generate business through advertising and promotional banners on its online platform.

    Near.Store – Target Market Size

    According to industry reports, there are 17 million offline shops in India. There has been a latent desire amongst the shop owners to go online and counter the increasing competition from online stores like BigBasket. However, most shop owners, who are not yet comfortable with technology, find it difficult to create a website and the shop catalog and dealing with online payment systems.

    E-commerce and online purchases are slowly becoming more common and frequent. To maintain customer loyalty and expand their existing businesses, the offline shops will need to create an online presence and hence the market for services like Near.Store is likely to expand.

    Near.Store – Startup Challenges

    Major milestones that this Offline to Online or O2O portal had to face were:

    • Developing a product that makes it simple and robotic for a shop to go online. This company wanted the process to be equivalent to a self-driving car. Experimenting with lots of hardware/software and cloud-based options before arriving at the perfect combination of the product posed the challenge of optimum utilization of resources.
    • The biggest challenge for Near.Store was to create a comprehensive database of products available in the Indian market with standard bar codes. The team had to source the data from over 100+ different sources and then create a high-quality image bank of all the products.

    Near.Store – Funding and Investors

    In February 2020, Near.Store raised its seed capital round for $300,000 from Sauce Venture Capital.

    Date Stage Amount Lead Investors
    February 2020 Seed Round $300K Sauce.vc


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    Near.Store – Advisors and Mentors

    Sripad Nadkarni is the mentor and advisor for this firm. He is the ex-marketing head of Coca Cola and Johnson & Johnson and the founder of Maverix Food Platforms and co-creator of the Paperboat and Epigamia Brands.

    Near.Store – Growth

    After launching the product, the founders started approaching the shop owners that they already had a relationship with. In January 2020, they hired a few marketing professionals and have been thrilled with the positive response so far.

    After the lockdown due to Covid-19, they had to pause onboarding stores. They tied up with Brands and offer aggregated delivery to large housing societies. Large brands such as Cadbury, Oreos, Epigamia, P&G, Organic India and The Bakers Dozen are available on Near.store within a month of commercial launch. They are currently delivering to 55 housing societies in Mumbai, giving them access to more than 22,000 people across Mumbai.

    “We have over 126 customers and we have added reputed brands to our store .We are helping the kiranas by ensuring supplies reach them even during the lockdown.” Added Ashish Kumar, founder of Near.Store.

    • Operating Locations – Mumbai, Bangalore, NCR (phase 2)
    • To date, Near.Store has 126+ shops as partners.

    Near.Store – Future Plans

    Going forward, they intend to take a channel sales approach to scale rapidly, given the simplicity of the products for both understanding and installation. Therefore, it is easy for any distribution company to quickly sell the product using their existing networks and resources. Near.Store is in the process of tying up with organizations such as

    • Trade Associations and Retailers Associations such as CAIT
    • FMCG Distributors
    • FMCG Brands
    • Distributors and Manufacturers of POS machines and Barcode Scanners

    The future Scale-Up Plan for Near.Store is to reach 25,000 stores by 2021.

    FAQs

    What is Near.Store?

    Near.Store is an instant plug and plays solution to create a digital presence for any shop. Near.Store devices need to be plugged into an existing billing system of any establishment. Once active, it creates a unique online presence on the Near.Store platform for the shop.

    Who is Near.Store founder?

    Ashish Kumar, Ramakrishnan A, and Diwakar Mitr are the founders of Near.Store.

    How much is Near.Store funding?

    In February 2020, Near.Store raised its seed capital round for $300,000 from Sauce Venture Capital.

    How does Near.Store make money?

    Near.Store charges a flat fee to the customers when they order through the platform

    What is Near.Store tagline?

    ‘Nearest, Fastest’ is the tagline of Near.Store