Last week, Indore-based totally B2B e-commerce platform ShopKirana achieved a unique milestone. In its 12-hour-long flash sale, the startup generated greater than Rs 1 crore from four,000 users, all from its home metropolis.
Unlike B2C e-commerce structures that deliver reductions on an everyday foundation, B2B participant ShopKirana offers no discounts. But the flash sales driven outlets.
Taneja’s Saraswat, Co-founder, and CEO of ShopKirana says,
“Most stores decide upon us because such products are not effortlessly to be had at traditional distribution systems, either because of provider problem or due to the fact its miles out of inventory. In the primary two hours of the sale, we sold 20 lakh pieces of Clinic Plus shampoo in just one city. These are low average promoting rate (ASP) items, which modern-day outlets don’t sell due to low RoI. But we deliver demand for such objects from the small outlets to the manufacturers.”
He provides that about 50 percent sales (out of the Rs 1 crore) got here from farm products.
On average, in India, local (unorganized) retailers often depend upon 70-a hundred vendors for inventory replenishment.
Founded in 2015 by means of Tanutejas Saraswat, Sumit Ghorawat, and Deepak Dhanotiya, Indore-primarily based ShopKirana became one of the early gamers to connect stores and brands/factories directly using a cellular app. It helps shops with producing higher income and maintaining less stock by means of buying in real time, and by means of preserving track of the statistics on their cellular smartphone.
At the start, convincing the stores – who aren’t tech savvy at all – itself become a big challenge. “Most of them do now not even use calculators. But when they started out using our carrier, a lot of them saw Rs 2 lakh-Rs 3 lakh worth of orders had been finished thru our app,” Tanutejas tells YourStory.
Within four months of its release, ShopKirana’s cell application was given 500 stores on board with just 10 manufacturers integrated into the machine, and the employer had controlled the turnover of greater than Rs 50 lakh.
Earlier this 12 months, the startup expanded to Jaipur and Bhopal and currently has greater than 12,000 outlets on its platform. It aims to extend to 30 towns and on-board one lakh outlets within the subsequent 18-24 months.
ShopKirana is targeting 10 percentage marketplace proportion in Tier II cities within the brief time period. It has also launched local content material in Hindi and Gujarati to goal a much wider target audience.
“We are piloting animated characters in our app – on the way to use nearby language for conversations with the outlets, and as a result understands their behavior,” says Tanutejas.
The winning pitch
In 2016, ShopKirana raised an undisclosed quantity of funding from Atul Jain (ex-Samsung), Jai Kumar Nair (previously with Mondelez), and Anil Gelra (Founder of Hola Chef), along with a few other veterans.
Later, in December 2018, the B2B e-commerce platform raised $2 million from Info Edge, AET Fund, Better Capital, Incubate Fund, and Akatsuki.
The story at the back of the fund raise is likewise as thrilling as the organization’s particular feats.
Despite the heterogeneity of the Indian market, within the B2B retail sector, Tanutejas believes that if an enterprise doesn’t make the experience in a single city, it gained’t make sense everywhere else. So, the team waited till their enterprise model and unit economics made sense, before elevating investment. “We did now not want to burn all of us else’s cash on a version which might not paintings,” he says.
The group met Yuki Kawamura, Principal at AET Fund, through reference, and provided their pitch for approximately 15-20 mins. Within an hour, they got the commitment from Yuki.
Taneja’s explains: “We have been clean (in the pitch) about some points: shops buy about 40 gadgets via our platform in a month. Otherwise, they have to meet some 400 vendors every month. Interacting with every sales government takes at least 15 mins, this means that nearly a hundred hours in a month. We shop the ones 100 hours for a retailer each month.”
Incidentally, in a current interplay with YourStory, Yuki had said what he looks for in a startup is the enterprise version.
“It doesn’t count if the contemporary product itself is ideal or awful. If they’re nonetheless at an early level, they may be looking to make the product marketplace in shape as they move. It’s more approximately the business version, monetization, and user acquisition.”
With a zero-inventory model, ShopKirana offers itself as a buying company and multi-logo distributor for retailers. The demand they get from shops are despatched to the manufacturers, which they deliver to ShopKirana’s warehouse in forty-eight hours (they’ve one warehouse in every city they may be found in). And ShopKirana provides it to the retailer the same day, primarily in 3 to four hours.
The company claims it has generated Rs a hundred and fifty crores in sales considering 2015. Taneja’s says the organization’s revenue has grown 10x in the ultimate six months, and they may be operationally