Quick commerce platform KiranaPro has teamed up with B2B management platform ZuperAI to provide its users with AI-based retail market solutions, only days after enlisting PV Sindhu as an investor. In order to help consumers and merchants with product discovery, inventory optimisation, and supply chain efficiency, KiranaPro will incorporate ZuperAI’s “Matchmaking AI” technology as part of this collaboration. The connection would help businesses grow their business while also making it easier for users to find products. The fast commerce startup hopes to create a tailored shopping experience while bridging the gap between consumers and retailers. Deepak Ravindran, the founder and CEO of KiranaPro, stated that this partnership is revolutionary for AI-powered business, opening up new possibilities for accuracy, customisation, and operational effectiveness.
Joining Network of ONDC
The fast commerce company just joined ONDC, making it the first platform in India to access the nation’s network of more than 7 lakh registered merchants. Before expanding farther into Kerala, the ONDC-powered platform will first begin operations in Hyderabad and Thiruvananthapuram. KiranaPro was founded in 2024 by Ravindran and Dipankar Sarkar with the goal of transforming traditional kirana (retail) establishments by providing them with a flexible income model and an AI-driven interface that aids in managing their digital operations. KiranaPro links local mom-and-pop shops with consumers directly, in contrast to other quick commerce systems that rely on dark stores. Because of its collaboration with ONDC, the firm operates throughout India.
Why Quick Commerce Companies are Keeping its Platform Hi-Tech and Updated?
To increase its presence in the hyperlocal retail market, it also purchased Joper.app, a hyperlocal grocery delivery business, earlier this month. In addition to bolstering KiranaPro’s position in the hyperlocal commerce market, the acquisition of Joper.app guarantees local business owners superior tech-enabled solutions that enhance productivity and customer satisfaction, according to Deepak Ravindran, co-founder and CEO of KiranaPro. The action is in line with KiranaPro’s goal of enabling small merchants to take on the big rapid commerce titans. KiranaPro and the merchants collaborating with the brand will benefit from Sumit Gorai’s (founder of Joper.app) knowledge and insights on the mechanics of operating a retail business in India, which he frequently discusses on his YouTube channel.
The growth coincides with intense competition in India’s fast commerce market. Leading companies like Zomato, Swiggy, and Zepto are rapidly growing their quick commerce services, which allow them to deliver food and household necessities in as little as ten minutes. These companies have recently introduced a number of rapid commerce services, such as Swiggy’s SNACC, Zomato’s Bistro, and Zepto Cafe, among many more. Additionally, Zomato’s Blinkit launched a 10-minute ambulance service last month. Notably, the three giants collectively recorded over $1 billion in revenue in FY24, and a survey indicates that sales in India’s rapid commerce sector have increased by 280% over the past two years.
Amazon moved to the Supreme Court of India with a plea to enforce an emergency award challenging the decree of Delhi High Court allowing statutory authorities such as the National Company Law Tribunal (NCLT) and Securities Exchange Board of India (SEBI) to seek approval of application filed by the Future Group to complete its Rs 24,731 crore asset deal with Reliance Retail.
Amazon wins as SC rules against the Reliance-Future Group deal on August 6, 2021. This proves to be a big boost for Amazon and an equally significant setback for Reliance. Read through the article to learn all the facts about the case, and check how its result affects both the parties dearly!
The Conflict – How it became Amazon vs Reliance!
The Indian E-commerce sector had become witness to a tug of war between Amazon and Reliance industries since Future group made an asset sale deal with Reliance Retail Ventures Limited (RRVL), a subsidiary owned by the owner of Reliance Industries, Mukesh Ambani. According to the same, the Future group will be giving up their entire retail, wholesale, logistics, and wholesaling businesses to RRVL.
Amazon had already acquired 49% stakes in Future Coupons making it a 10% stakeholder in the Future Group. The latter signed a “Right of First Refusal” deal with Amazon stating that Future Coupons will not sell its assets to a list of companies without Amazon’s consent so as to block competitors. Reliance Industries was one of the companies on the list.
Amazon and Reliance have locked horns over the rights of Future Group assets
Parties to the Conflict- Reliance, Amazon & Future group
Future Retail signed an asset sale deal with RRVL for 24,731 crore, which resulted in a breach of contract between Amazon and Future Retail. This is why Amazon had taken the matter to the Singapore International Arbitration Centre (SIAC) and pleaded to order stay on carrying out this deal. SIAC issued an emergency award ordering a stay on the fulfillment of the deal between Future Retail and Reliance Industries.
Amazon, with 7 lac sellers in its kitty, is desperate to enter the Indian retail market. On the other hand, Reliance has already established itself with 11,784 stores all over the country. And now, after buying Future Retail, it will become the third largest retail conglomerate in the world with Future’s 1800 stores and brands including Big Bazar, FBB, Easyday, Nilgiris, Central and Brand Factory.
Future Group has announced to sell its retail business to Reliance Industries for Rs 24,731 crore
Reliance is already known as a telecom giant after launching JIO and has already entered the retail market with JioMart. It had an advantage over Amazon since a large Indian population still prefers shopping at grocery stores and kiranas. JioMart is planning to collaborate with these small vendors as it has upheld the motto “Local for Vocal”. The consumers may lean towards this motto since Reliance represents the home ground. Reliance may be an old player in telecom and oil but the retail market is completely based on consumer satisfaction. When you face issues with your network, you’d switch to another one but that involves a whole new process. But when the services from an e-commerce platform disappoint you, chances are you’d never go back. Amazon has been performing aces on the customer satisfaction and delivery front. Reliance still has a lot of catching up to do.
The SIAC, to Amazon’s relief, ruled out an emergency award to stop the deal being carried out between Future Group and Reliance Industries Limited. This relief was short lived as Future Group challenged this decree in the Delhi High Court, stating in a plea that this decree is invalid in India under Sec 17 (1) of Arbitration & Conciliation Act and hence, is not enforceable. The Delhi High Court asked Reliance and Future Group to maintain their status quo and encouraged the NCLT and SEBI to acknowledge the deal between Reliance and Future Group.
Amazon then moved the Supreme Court of India challenging the order issued by the Delhi High Court on February 2nd. “The order of the high court is illegal, and arbitrary apart from being without jurisdiction, therefore the same is liable to be set aside on this ground alone” stated Amazon’s appeal in the high court proceedings.
If this deal goes through, Kishore Biyani, the retail king who’s been ruling the market for over three decades, gets rid of debt on promoter level and listed entities level. The identified assets will be transferred to Reliance Retail & Fashion Lifestyle Limited as a going concern on a slump sale basis for Rs 5628 crore. Future Group will be saving its 25000 employees with their jobs kept intact. Reliance Industries will be taking over the liabilities too. If the status quo on the deal is vacated, Future Group will have no option other than liquidating itself.
As in the case of Reliance, this deal will make it a monolayer in the retail market. It will acquire already set up stores across the country and will be spreading its business faster. Since the announcement, Reliance’s shares have shot up from Rs 500 to Rs 1250 in a matter of months.
The Big Judgement from Supreme Court goes in favour of Amazon
The much-awaited decision from Supreme Court ultimately stands in favor of the earlier ruling of the Singapore International Arbitration Centre (SIAC) and thereby, halting the Reliance-Future Group deal.
This is bound to be a huge win for Amazon, blocking its competitor and a considerable setback for Reliance. The deal amounted to a total of Rs 24,713 crores, which comprised of a takeover of 1,800 stores of Big Bazaar, EasyDay, FBB, and Food Hall, in an attempt to further expand its business across the country. Furthermore, Reliance was also on the verge of taking over the debt and liabilities of the Future Group amounting to Rs 19,000 crores as part of the deal.
As soon as the judgement was passed by SC, Reliance shares were noted to be falling by 2% on the stock markets. Future Group’s retail shares also tanked by 10% as a result of the long drawn battle between Amazon and Reliance, which it was a part of!
Who else is trying this gimmick?
The TATA’s are trying to take over Big Basket by buying a majority stake of 500 to 700 million dollars, as well as a substantial stake in 1mg, an online drug retailer. Flipkart bought 8% stakes in Aditya Birla Fashions by paying a sum of Rs 1500 crore and signed a “right of first refusal” clause as well.
The retail market is on the edge as big players move their money around. There already is a shift in consumer patterns since everything from smartphones, appliances, policies to medicines and groceries are becoming a part of the online retail market. And now we wait and watch, as Amazon and Reliance play their hacks.
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Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, headquartered in Bentonville, Arkansas.
The company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. It also owns and operates Sam’s Club retail warehouses. As of October 31, 2020, Walmart has 11,510 stores and clubs in 27countries, operating under 56 different names.
Wal-Mart was founded by Sam Walton in Rogers, Arkansas, in 1962 and focused its early growth in rural areas, thereby avoiding direct competition with retailing giants such as Sears and Kmart.
Walmart, Inc. engages in retail and wholesale business. The Company offers an assortment of merchandise and services at everyday low prices. It operates through the following business segments: Walmart U.S., Walmart International, and Sam’s Club. The Walmart U.S. segment operates as a merchandiser of consumer products, operating under the Walmart, Wal-Mart, and Walmart Neighbourhood Market brands, as well as walmart.com and other e-commerce brands. The Walmart International segment manages supercentre, supermarkets, hypermarkets, warehouse clubs, and cash & carry outside the United States.
Walmart is the world’s largest retailer company by revenue, with US $514.405 billion, according to the Fortune Global 500 list in 2019. It is also the largest private employer in the world with 2.2million employees. It is a publicly traded family-owned business, as the company is controlled by the Walton family. Sam Walton’s heirs own over 50 percent of Walmart through both their holding company Walton Enterprises and their individual holdings.
Walmart – Logo and its Meaning
As for the hidden message of Walmart logo, it considered that it symbolizes 6 sparks. And each spark, in turn, symbolizes ideas, which are making the company successful. They also remind of Sam Walton, who believed in himself and his success.
Samuel Moore Walton, an American businessman and entrepreneurs is the founder of Walmart.
Founder of Walmart
The history of Walmart, an American discount department store chain, began in 1950 when businessman Sam Walton purchased a store from Luther E. Harrison in Bentonville, Arkansas, and opened Walton’s 5 & 10. The Walmart chain proper was founded in 1962 with a single store in Rogers, expanding outside Arkansas by 1968 and throughout the rest of the Southern United States by the 1980s, ultimately operating a store in every state of the United States, plus its first stores in Canada, by 1995. The expansion was largely fuelled by new store construction, although the chains Mohr-Value and Kuhn’s Big K were also acquired. The company introduced its warehouse club chain Sam’s Club in 1983 and its first Supercentre stores in 1988. By the second decade of the 21st century, the chain had grown to over 11,000 stores in 27 countries.
Walmart – Mission
Walmart’s mission statement says, “We feature a great selection of high-quality merchandise, friendly service and, of course, Every Day Low Prices. We also have another goal: to bring you the best shopping experience on the Internet. “
Walmart – Business Model
Walmart can develop, open, and operate units at the right locations and to deliver a customer-centric omnichannel experience. That largely determines its competitive position within the retail industry. Walmart employs many programs designed to meet competitive pressures within its industry.
These programs include the following:
EDLP (everyday low price): items priced at a low price every day so Walmart customers trust that its prices will not change under frequent promotional activity;
EDLC (everyday low cost): effort to control expenses so that savings can be passed along to customers;
Rollbacks: pass cost savings on to the customer by lowering prices on selected goods;
Savings Catcher, Save Even More and Ad Match: strategies to meet or be below a competitor’s advertised price;
Walmart Pickup: customer places order online and pick up for free from a store. The merchandise is fulfilled through Walmart distribution facilities;
Pickup Today: a customer places order online and can pick it up at a store within four hours for free. The order is fulfilled through existing store inventory;
Online Grocery: a customer places grocery order online and has it delivered to home or picks it up at one of Walmart participating stores or remote locations; and
Money-Back Guarantee: ensure the quality and freshness of the fruits and vegetables in Walmart stores by offering customers a 100 percent money-back guarantee if they are not satisfied.
Walmart annual revenue for 2020 was $523.964B, a 1.86% increase from 2019
Year
Annual Revenue
Percentage change
2019
$514.405B
+2.81%
2018
$500.343B
+2.98%
Walmart – Investments
Walmart has made 12 investments. Their most recent investment was on Oct 12, 2020, when Ninjacart raised $30M.
Date
Organization Name
Round
Amount
Oct 12, 2020
Ninjacart
Corporate Round
$30M
Jul 14, 2020
Flipkart
Corporate Round
$1.2B
Dec 11, 2019
Ninjacart
Series C
$10M
Oct 15, 2019
Level Home
Corporate Round
$71M
Mar 9, 2019
Girls Who Code
Grant
$3M
Nov 6, 2018
WalMart India
Venture Round
$37.7M
Oct 25, 2018
FreshMart
Series B
–
Aug 8, 2018
Dada-JD Daojia
Corporate Round
$500M
Oct 20, 2016
Dada-JD Daojia
Funding Round
$50M
Apr 1, 2015
Triad Workforce Solutions
Grant
$320K
Walmart – Acquisitions
Walmart has acquired 24 organizations. Their most recent acquisition was JoyRun on Nov 23, 2020.
Acquiree Name
Date
Amount
About Acquiree
JoyRun
Nov 23, 2020
–
JoyRun is a community based delivery company
CareZone
Jun 15, 2020
–
CareZone makes it easy to manage multiple medications, organize health information, and access health services from your smartphone
Polymorph
Apr 11, 2019
–
Polymorph is a white-label SaaS monetization platform for publishers to maximize revenue, reduce costs and deliver better ad experiences
Aspectiva
Feb 25, 2019
–
Turn Product Reviews into a Smarter Shopping Experience
Art.com
Nov 20, 2018
–
Art.com is an online platform designed to sell wall art and decorative items
Bare Necessities
Oct 13, 2018
–
Independent boutique retailers of luxury lingerie, swimwear and accessories
Eloquii
Oct 2, 2018
$100M
Eloquii offers an online plus size clothing store featuring women’s plus size fashion, clothes, and accessories
Flipkart
May 9, 2018
$16B
Flipkart is an e-commerce marketplace that offers over 30 million products cross 70+ categories
Wim Yogurt
Jan 1, 2018
–
Wim Yogurt is a modern cooking appliances for healthy homes
Parcel
Oct 3, 2017
–
Parcel is the same-day / last-mile delivery company built for the age of e-commerce
Walmart – Competitors
The top 10 competitors in Walmart‘s competitive set are Amazon, Target, Costco, Kmart, Kroger, ALDI, Walgreens, Tesco, Carrefour, and Best Buy.
Walmart – Challenges Faced
Walmart has faced issues with its employees involving low wages, poor working conditions and inadequate health care. Approximately 70% of its employees left within the first year.
Walmart has been criticized by many groups and individuals, such as labour unions and small-town advocates, for its policies and business practices, and their effects. Criticisms include charges of racial and gender discrimination, foreign product sourcing, anti-competitive practices, treatment of product suppliers, environmental practices, the use of public subsidies, and its surveillance of its employees. The corporation denies any wrongdoing and says that low prices are the result of efficiency.
In 2005, labour unions created new organizations and websites to criticize the company, including Wake Up Walmart (United Food and Commercial Workers) and Walmart Watch (Service Employees International Union). By the end of 2005, Walmart had launched Working Families for Walmart to counter those groups. Efforts to counter criticism include a public relations campaign in 2005, which included several television commercials. The company retained the public relations firm Edelman to interact with the press and respond to negative media reports, and has started working with bloggers by sending them news, suggesting topics for postings, and inviting them to visit Walmart’s corporate headquarters.
The world’s largest retailer plans to grow sales by $45 billion to $60 billion in the next three years and spend $20 billion buying back its own shares.
The growth targets, stock buyback program and an $11 billion capital expenditure program, down from $12.4 billion this year, were announced Wednesday morning in New York at the retailer’s annual fall investor conference.
“We are uniquely positioned to win with the future of retail,” Wal-Mart Stores, Inc., president and CEO Doug McMillon told attendees, echoing what has been a familiar omnichannel theme for the company in recent years. “We will be the first to deliver a seamless shopping experience at scale.”
Achieving that goal is key to the company’s long term growth, but to get there the company disclosed the significant investments it has made in technology, wages, pricing and a weak dollar will pressure profits. Walmart CFO Charles Holley said the company’s earnings per share, which are projected to decline this year compared to last year, will fall another 6% to 12% next year as investments in the business peak. However, within three years, profits are forecast to rebound and grow between 5% and 10%.
Investors were looking for a faster growth trajectory which explains why following the release of the three-year profit forecast shares dropped roughly $5 to hit a new 52-week low near $60. Anticipating such a negative reaction, Holley announced Walmart had authorized a new $20 billion share repurchase program and committed to spend those dollars within two years even though it had $8.6 billion in authorization remaining under the existing program.
Nitin Konde
