Devendra Meel

Excited and looking forward to discussing the evolving challenges of raising capital for early-stage startups at SAASCON24. Join me as I dive into the current trends, what founders need to know, and how we can navigate this more challenging environment. #SAASCON24 #StartupFunding #EarlyStageStartups #SaaS #Entrepreneurship

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#QuickCommerce: A Boon or Bubble? The rapid rise of quick commerce players like #Swiggy, #Zomato, and #Zepto has undeniably transformed how we shop, making instant gratification the new norm. The industry, valued at over $80 billion globally, is expected to grow by 25-30% annually, driven by urban millennials and #GenZ’s appetite for on-demand services. Yet, there’s a storm brewing on the horizon. #UdayKotak, an influential voice in the financial industry, recently issued a cautionary warning about the sustainability of the quick commerce model. Here are some key points that raise concerns: 1. Cash Burn and Profitability Challenges: Despite impressive growth rates, the majority of quick commerce firms are struggling with profitability. Data shows that companies like Swiggy and Zomato have been spending 4-5x more than their revenues just to acquire and retain customers. 2. Logistical and Operational Strain: While 10-minute deliveries sound appealing, they come with a cost. The logistics infrastructure required is both expensive and complex, often relying on heavily subsidized delivery models. This raises questions about how sustainable this race for speed truly is. 3. Investor Fatigue: Venture capital funding, which fueled much of the industry’s growth, is beginning to show signs of hesitation. With valuation corrections and demands for a clearer path to profitability, the pressure on these startups is mounting. 4. Consumer Behavior and Economic Pressures: While the convenience is unmatched, there’s a limit to how much consumers will pay for speed. Economic uncertainties and rising inflation may shift spending habits, making ultra-fast delivery less attractive when discretionary spending is squeezed. 5. Regulatory Concerns: Kotak highlighted a crucial point: the political and regulatory landscape could change drastically if these companies start impacting small, local businesses. With potential regulations on the horizon, the industry might face unexpected headwinds. Is the quick commerce model inherently flawed, or is it just facing temporary challenges in the journey to profitability? How can these companies pivot or adapt to ensure long-term sustainability without compromising on speed and convenience? Are consumers willing to pay a premium for faster deliveries in the current economic climate, or will we see a shift in priorities towards cost and value? Your thoughts? #indianstartups #cashburn #roadtoprofitability #ceosgurukul #firsttimeceos https://lnkd.in/dCp84sCd

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Zepto founder The Magic Story of two teenagers. Zepto founder Mr. Aadit Palicha and Mr. Kaivalya Vohra, zepto is a prominent Indian startup that has revolutionized the grocery delivery industry. https://tecentr.com/ Launched in 2021 by these teenage entrepreneurs, Zepto achieved a remarkable $3.6 billion valuation in just three years through their consistent efforts. The Zepto Founder Story Mr. Aadit Palicha and Mr. Kaivalya Vohra identified a gap in the online grocery delivery market and launched their unicorn project in the wake of the COVID-19 outbreak. As more people shifted to online grocery shopping, they seized the opportunity to innovate.The 10-Minute PromiseZepto’s success is largely attributed to its 10-minute delivery promise. This is achieved through a network of “dark stores” located in major cities and towns. These dark stores, optimized for rapid fulfillment, allow Zepto to deliver groceries within 10 minutes thanks to an effective networking strategy and advanced technology. Dark Stores of zepto founder Zepto’s dark stores are small warehouse-like facilities stocked with products and optimized for speedy delivery. The efficiency of these stores, combined with skilled workers and technology, has significantly advanced the grocery delivery industry The world of Tech and Entrepreneurship Tec Entr V A² #aadit #aaditpalicha #founder #zepto #kaivalya #kaivalyavohra #groceries #10minutechallenge #entrepreneurship #entrepreneur #business #businessowner #technologynews #entrepreneurgoals #goals

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🌟 What a year it's been at Kirana Club! 🌟 Last financial year was not just another tick on the calendar for us at Kirana Club. We grew in numbers! reaching about 20 lakh retailers on our platform. We also saw incredible engagement and Kirana Club has become a go-to place for retailers to connect, share insights, and learn from one another. We also got to work with major names in #FMCG industry very early on in our journey! The feedback has been overwhelmingly positive, and it seems nearly every brand we've talked to—whether we've partnered with them directly or just had discussions—recognizes the value we're adding. For FMCG brands, the advantage of working with us is clear - They can reach and communicate with lacs of kiranas directly, without the usual delays and dilution caused by intermediaries like wholesalers and distributors. We're not just facilitating communication; we’re also helping brands with tactical and strategic initiatives like: ** Collecting quick market insights from the channel for brands ** Indexing buy and sell prices at the wholesaler and distributor levels ** Driving mass engagement and enhancing in-store visibility for retailers ** Tailoring communications to retailers based on their location, category & brand affinity, interests and behavior in the community Thanks to all our existing partners for the eventful year! Looking ahead, we're energized to build upon this momentum and make the next year more impactful! #GeneralTrade #Distribution #Wholesale #Insights #retail #kiranas #consumerinsights #offline #GTM #CIIFMCGSummit #Aahar2024 #AaharEvent #Gulfood2024 Anshul Gupta Aishwarya Jain Akash Bhargava💡Gaurav Tolani Aditi Tibarewal Charvi Verma Anshul Shivhare Shubhankar Mohan Aditya Kumar Hritik Sahoo Sanket Wable

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We recently launched a brand new season of Propel – a global business accelerator for startups in India. First started in 2021, this program sits at the intersection of three key areas – startups, exports and technology adoption – all important for India as a nation. The program has already helped 70+ brands from different parts of India make their debut in global markets with many of them witnessing strong and consistent business growth. In this season 4, I expect even more entrepreneurial energy. At our end, we continue to focus on making exports easier for entrepreneurs and small businesses across India as we move closer to our goal of enabling $20B in cumulative exports from India by 2025. Read More: https://lnkd.in/gVYvXGwU #AmazonIndia #Exports #GlobalSelling #Propel #Startups #SmallBusiness #Entrepreneurs Vivek Somareddy | Bhupen Wakankar | Chand T. Mazumdar | Srinidhi Kalvapudi | Aditia Bhalla | Amazon Global Selling

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🚀 What Can Zomato Explore for New Growth Opportunities? 🚀 Deepinder Goyal, Aman Chitkara - Zomato has already transformed the food delivery space, but there's always room for innovation. Here are a few ideas on what Zomato can explore to take it to the next level and enhance its value to customers and partners alike:- 🔵 Event Catering: Zomato can expand into catering for weddings, corporate events, and gatherings, allowing restaurants to offer large-scale services through a seamless platform—making life easier for event planners and customers! 📦 Zomato Genie: Expand Zomato's services beyond food by offering parcel delivery. Zomato Genie can cater to urgent deliveries of non-food items within the city. A perfect complement to the brand's existing delivery infrastructure. 🌙 Late-Night "Near Expiry" Discounts: After 8 pm, offer special discounts on items nearing expiry like cakes and fresh bakery goods. Not only does this help reduce food wastage, but it also offers value deals for night owls. ⏰ Afternoon Special Discounts: Between 3-5 pm, when orders are typically lower, Zomato can offer limited-time discounts. A way to incentivize off-peak food orders and increase restaurant visibility during quieter hours. 🥗 Zomato Canteen for Colleges: Partner with universities to offer affordable, home-style meals through a daily subscription model with local kitchens. A win-win for students and Zomato! 💳 Credit Card Partnerships: Zomato could partner with credit card companies like IndusInd Bank or Axis Bank to offer exclusive deals like cashback or rewards for food orders—think Zomato exclusive credit cards with tailored offers. 🍽️ Smarter Group Orders: Implement smart filters for group orders where food items like Dosas (that lose freshness fast) are flagged for better coordination, ensuring every bite is perfect when delivered. 🎩 Zomato Concierge Service: Offer an exclusive, American Express-style membership with premium concierge services. From securing hard-to-get concert tickets (Diljit, anyone?) to booking tables at popular spots like Burma Burma Restaurant & Tea Room on a busy Sunday, premium customers get VIP treatment. 🛍️ Ingredient Delivery Kits: Collaborate with top restaurants to deliver pre-packaged kits for dishes like sushi, biryani, etc., for a fun DIY dining experience at home. Perfect for date nights or weekend cooking adventures! 🍣🍛 🚴 E-bike Partnership: Collaborate with Ola Electric or Zypp Electric to provide affordable e-bikes for delivery partners, reducing cycle usage and speeding up deliveries while promoting eco-friendly service. 🍹 Sample Product Listings: Let restaurants offer sample-sized portions of new dishes (like a sandwich with a sample iced tea) at a nominal cost. This would drive cross-selling and help customers discover new favorites. 💬 Your Thoughts? Do these ideas add value to your Zomato experience? Let’s discuss—what excites you or what’s missing? Let’s shape Zomato’s future together! 👇

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2021: Only grocery delivery app in India with 10 minutes delivery 2024: Competitor chasing the '10 minute' brand segment Zepto is the only player sticking to its original promise - and is clearly acing it Scaling up a grocery delivery business is particularly challenging in India. And adding up a unique attribute, as huge as this –  has clearly been game changing for Zepto. Success didn’t come easy to Zepto too, There was a time when all the Q-commerce players faced backlash & people questioned the safety of drivers. Some brands stopped claiming the delivery time altogether, from “groceries in 15-30 minutes”, they went to “groceries in minutes” But Zepto didn’t, it went on to install a myriad of dark stores across locations, and is already serving superfast deliveries in 10 cities. Top 3 factors that helped Zepto drive exceptional growth over a very short span of time: - Captivating Customer Experience: The platform served a deeply engaging user experience and the service promise was being consistently fulfilled – a powerful combo. - Outstanding Retention: All thanks to near-perfect buying journey, Zepto achieved a retention rate which was considered only to be a fantasy for the industry earlier. - Not slowing down: More dark stores and continuous geographical expansion at the same time helped the startup acquire customers in huge numbers. Zepto cracked the key to scale in the quick commerce space by constantly growing at the same pace, and not compromising customer satisfaction at the same time – simple yet not easy. A perfect example of go big, go fast – it is surely a fascinating study for the space creators. No matter the circumstances, the brand didn’t let go of its biggest differentiator, eliminating all the question marks experts had put to its launch. What do you think is going to be the future of grocery delivery space in India? #casestudy #growth #startup

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Venture capitalists and BizDateUp co-founders Jeet Chandan and Meet Jain have acquired an undisclosed stake in IPO-bound foodtech giant Swiggy through an off-market secondary deal. Founded in 2020, BizDateUp allows angel investors to invest in Indian startups with a minimum of INR 1 lakh and recently launched a INR 200 crore fund for technology investments. The firm raised over $10 million from more than 1,000 angel investors in FY24. This move comes as several celebrities, including cricketers Rahul Dravid and Zaheer Khan, tennis player Rohan Bopanna, director Karan Johar, and actor Ashish Chowdhry, have also invested in Swiggy ahead of its IPO. Notably, Amitabh Bachchan and Madhuri Dixit have previously acquired stakes in the company. Read full story here: https://lnkd.in/gM8sEWSZ #foodtech #startups #ipo #swiggy #foodindustry #news #latestnews LinkedIn News India Linkedin News Ashu Agrawal

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Companies like Zepto and Blinkit have evolved beyond being mere aggregators. They have managed to hardcode 𝐝𝐢𝐬𝐜𝐢𝐩𝐥𝐢𝐧𝐞 into their technology. While you and I might question some of their methods, we're simultaneously enjoying the convenience of having anything and everything delivered to our doorstep. Behind this convenience are countless delivery partners who brave extreme weather, navigate through difficult traffic, and maintain a smile despite the challenges. I am really grateful for that. It helped especially in COVID. The possibilities in this sector seem endless, and I'm certain their product teams are working tirelessly to expand them further. Recently, I watched "Zwigato," a film starring Kapil Sharma that portrays an amalgamation of existing food and delivery apps. It revealed the behind-the-scenes struggles of delivery partners. It's truly heartbreaking to see these workers constantly on their toes, being fined for circumstances beyond their control, and having their earnings reduced due to negative reviews and more. However, consider the flip side: Without SOPs and rules, if delivery partners could stay offline for hours or days according to their whims, would these apps be able to maintain the discipline they promise? Yes, they're building tech companies, and yes, they're enforcing discipline. Could they be more humane about it? Absolutely – even if it means lower profits. In today's distracted world, with its diminishing attention spans and readily available sources of dopamine, the discipline to show up consistently has become invaluable. Most leaders recognize this and are leveraging its benefits. #discipline #aggregators #business #marketplaces #aggregator

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Fast food delivery saves time, but it’s costing us ~₹9,000 - ₹11,000 crore annually!💸 I’ve always appreciated the convenience of ordering in, but when you break down the numbers, the real cost becomes clear: The Mavericks India reports uncovered the hidden costs of convenience across platforms like Swiggy, Zomato, and magicpin: +₹46 extra per dish – Restaurants charge more through aggregators than direct orders, costing Tier-1 Indian households ₹12,000 extra per year! +150-200% higher delivery fees – Almost half of restaurants offer free delivery on their own platforms, but charge significantly more via aggregators. +₹2 extra for packaging – Aggregators charge ₹2 more for the same packaging, adding ₹400 crore in annual costs. Individually, these costs seem small—but across millions of orders, it adds up fast! The catch is most of us don’t even know how much we’re spending on delivery convenience over a longer timeframe. A lot of it is to do with behavioral economics – Small, dispersed fees are less likely to be flagged/taken in consideration.🧠 So, most consumers will never pay Rs 500 for a Netflix subscription, but will spend Rs. 5 over 100 times in food delivery packaging :) In India, convenience isn’t cheap—it’s just hidden, quietly! #india #business #success #fooddelivery #fastfood

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India’s Oyo, once valued at $10 billion, is finalizing new funding at a $2.5 billion valuation. This marks a steep decline from its $10 billion valuation in 2019. The startup, which has raised over $3 billion from backers like SoftBank, Peak XV Ventures, Lightspeed, Airbnb, and Microsoft, has struggled to attract institutional investors. In recent months, it has aggressively pitched to high-net-worth individuals after withdrawing its IPO application twice in the past four years. Once a red-hot Indian startup active in markets including the U.S. and Europe, Oyo has now scaled back its international presence. #venture #downround https://lnkd.in/gE2GjYnM

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India is embracing the quick commerce wave! We’re witnessing a shift from unorganized retail directly into this dynamic channel, effectively bypassing modern retail. Initially focused on essentials like bread and milk, quick commerce is now catering to impulse purchases and even refills for staples. This shift is creating a scalable Go-to-Market channel, enabling insurgent food brands to achieve more than INR 100 crore in annual recurring revenue. We are excited to witness this growth firsthand with our portfolio company, Lo Foods, which is on a mission to introduce functional foods to over 100 million Indians. Their range of products—bread, flours, and snacks—are tailored for specific nutritional needs, including ultra-low carb, diabetic-friendly, high protein, and gluten-free options. Sudarshan Gangrade Jitesh Shah Mount Judi Ventures Entrust Family Office KP Balaraj Subramanian Ramadorai Gaurav Arora Ritesh Chandra Janet Kim Jolynn Swee Ravi Ravulaparthi #capitalcode #agrifood

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#Take2 Why the Market May Be Overestimating Quick Commerce's Future Despite Damodaran's Optimism As a genuine admirer of #AswathDamodaran and his insightful #valuation frameworks, it's fascinating to see how his evaluations cut to the core of a business's #financial #health. However, with #quickcommerce, it’s possible that the broader market has overestimated the long-term potential of these businesses. Quick commerce is undeniably enticing in terms of #growth and #marketshare grabs, but as Damodaran himself has noted, the sector faces headwinds like narrow #margins and dependency on high-frequency, low-value transactions. Quick commerce relies heavily on the temporary advantage of local #logistics and #labor #arbitrage, but as cities become more congested and labor markets tighten, these operational “advantages” could quickly erode. Furthermore, the political landscape may not always be welcoming, especially given the impact on local #kirana stores, which are integral to India’s #retail fabric. While Damodaran’s framework rightly emphasizes lifecycle positioning, it may not fully capture the #political and #inflationary risks that quick commerce facilitates and faces as it scales. This could mean that valuations, even if optimistic now, might not reflect the long-term stability or profitability the street expects. One critical factor that quick commerce models often overlook is India's regional #diversity —it's anything but a #homogenous market. Local preferences, purchasing behaviors, and infrastructure vary widely from city to city. Quick commerce platforms will need to adapt to these variations, constantly refining and expanding their product categories to cater to local demands. This could mean shifting beyond the basic groceries and essentials model and embracing more regional product mixes, which further adds to complexity and costs. The sector's reliance on ultra-fast delivery and inventory optimization only intensifies these challenges, as what works in a metro city like Delhi or Mumbai may fail in smaller towns where consumer habits and logistical networks differ significantly. This makes scaling in India particularly #complex, and could limit the profitability of the "one-size-fits-all" model that quick commerce often tries to implement. All things considered, I’m confident that these companies have the talent needed to evolve. Just look at how Zomato transformed from its early days to what it is now. The real question is: what will they evolve into, and will that future model justify the premium they currently command? For now, I’ll take advantage of my exclusive offer on Coke Zero from quick commerce and enjoy it while it lasts.

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In Case You Missed It: Swipe right ➡️ as Abhinav Sinha, COO and CPO at OYO, shares strategies for achieving PMF across different markets by leveraging strengths, adapting to local nuances, and focusing on key metrics. Link in the comments 👇 

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Raised $26,000,000 with just an idea Lyskraft India Pvt Ltd - the latest kid in the block! So, Mukesh Bansal is back with another startup this time with Mohit Gupta, the former CEO of Zomato's food delivery arm. In July of last year, there were reports about Bansal and Gupta raising funds for a new venture. As per TechCrunch, both of them pitched a range of ideas to potential backers like a female-focused counterpart to Manyavar and "Infosys 2.0" a presumed upgrade to a multinational IT services and consulting firm. Now finally... The news is out and we know what they are building, Lyskraft: initially a women's only marketplace for premium brands mostly focusing on Gen-Z shoppers. Recently we have seen giant e-commerce platforms launching dedicated portals to attract GenZ shoppers, like SPOYL launched by Flipkart within its app, FWD by Myntra, also we are seeing the growth of new-age startups working in this space like Virgio(Mukesh Bansal is an investor in it), Newme(recently raised $4,500,000), Absolute Brands, Snitch, Styched and many more As per Inc42's Report, India's fashion and apparel sector is projected to reach a mouth-watering $112 Billion by 2030, which will be over a quarter of the country's $400 Billion e-commerce market!! Let's be honest, anyone will want a piece of this market. As we are already aware of how crowded this space is, let's see how Lyskraft differentiates itself from others. Mohit Gupts and Mukesh Bansal, in this crowded space building a community around your product, building digital IPs, and creating experiences through videos are the ways to elevate your brand to the next level. I the founder of Elevate would love to connect and assist Lyskraft in building a community, digital IPs and help create experiences through videos, if that sounds like something that interests you would love to connect and discuss!! sources of information : TechCrunch article 2021 - https://bit.ly/49UwkLI Inc42 article - https://bit.ly/3w0SDlb #mukeshbansal #myntra #fashion #startups #venturecapital #fundingwinter #norevenue #cultfit #community #communitymarketing #socialmediamarketing #india

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Bears hit Swiggy. IPO Valuation comes down from $15B to about $11-$13B. -Guess September Data showed higher losses and market share decline (death trap) - The biggest Red Flag is out of 10,000cr fund raise at IPO, only 3750cr goes into balance sheet, rest is all existing investors exiting. - Post IPO Cash on Balance sheet will be less than 6kcr (currently has 2.5kcr as of Q1, burn of Q2 yet to be shared) vs Zomato 12.5kcr - With a lower Cash Balance Swiggy is being expected to gain market share, achieve profitability, and do acquisitions, a tall ask - All marquee investors save SoftBank exiting - Founders selling 300cr in pre-IPO and 150cr worth of shares in post-IPO Very well illustrated in this E-times article. https://lnkd.in/gdzuNhvf

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New Report Alert: Decoding the Online Ticket Business in India & Zomato - Paytm Deal! (Zomato to buy Paytm's entertainment ticketing business for Rs 2,048 crore The acquisition of Paytm Insider, approved by Zomato's board, will allow the food delivery giant to foray into the entertainment ticketing sector, complementing its existing dining and food delivery services.) I'm excited to share that I've recently completed a comprehensive report on the dynamics of the online ticketing industry in India, with a particular focus on the strategic acquisition deal between Zomato and Paytm for Paytm's ticketing business. This report dives deep into the evolving landscape of online ticketing, highlighting the key factors driving growth and the challenges faced by industry players. I also explored the strategic implications of Zomato's acquisition of Paytm's ticketing arm, examining how this move aligns with Zomato's broader business objectives. To provide a well-rounded perspective, I included detailed financial analysis of both Zomato and Paytm, shedding light on the financial rationale behind the deal and its potential impact on both companies. If you're interested in understanding more about this significant development in the Indian tech ecosystem, feel free to reach out! Zomato Paytm Parth Verma The Valuation School #OnlineTicketing #Zomato #Paytm #MergersAndAcquisitions #IndiaTech #FinancialAnalysis

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