Hashid Hameed

Q-Commerce overtaking traditional e-commerce? Currently we are seeing a big boom in terms of the different SKUs being sold in Quick commerce apps like Zepto, Blinkit, etc. - Atomberg Technologies 's fans - Sony's PS5 - Samosa, Chai and what not - Digital Gold from Jar! Zepto is in talks to raise $300m for its broader ecommerce play. While Swiggy is preparing to file for an IPO this year, incumbent Flipkart is readying its entry into quick commerce. Zomato has invested $240 million in Blinkit over the last one year. Taking a step back, the lines between quick commerce and traditional e commerce have started to become increasingly blurred with QCom pretty much catering to every needs! Also, multiple reports suggest that QCommerce can potentially become bigger than traditional e commerce in India!  Case in point : According to Goldman Sachs, the valuation of Blinkit is greater than Zomato's core food delivery biz! Non-grocery boom in Q-Commerce: Categories including beauty, toys, health and electronics are witnessing robust sales growth on quick-commerce platforms overall. While the overall base for the new categories is still small, aggressive expansion by these players is starting to ensure a dominant presence for these categories. Plus AOV is higher which also comes with better margins, making it a win-win! Case in point: Zepto - 2x sales MoM in segments such as toys and electronics accessories - Beauty category expanded 3x QoQ - ~15% of Zepto’s $1.2bn annualised gross sales currently comes from non-grocery products (Source: Goldman Sachs) For several D2C quick commerce has become the fastest growth channel as well as the platform with highest customer engagement This is definitely a positive for the consumers and the Q-Commerce players, but is everything on the up and up?   As the demand for space on quick-commerce platforms skyrockets, niche D2C cos in segments like FMCG, beauty and personal care, and health and fitness are agreeing to pay a 30-45% commission on sales, besides shelling out on advertising and discounting on these Q-Com platforms. On top of the commissions, brands are also regularly spending around 20% of their total sales on ads on the platforms, and discounting their products by about 20-25% (totaling 60-70% revenue!). This is in stark contrast to the 10-20% commission that large FMCG cos pay these platforms reflecting the intense competition for visibility. The brand's scale and comparison with competitors are crucial considerations when it comes to new listings. On the positive side, smaller D2C brands have seen 40-60% total revenue coming from Q-Commerce compared to ~10-20% from traditional ecommerce, which is surprising! Essentially, Q-com currently has a BIIIG Bargaining power against new D2C brands and can essentially make or break their businesses! Is this sustainable on the long run? #ecommerce #quickcommerce #india #zepto #businessmodel #d2c #startups #LIPostingChallenge

٥

١ تعليق واحد

We're all set for the podcast that is to be live on 8th may, and so should you. 🙌🏻🎙 Our guest Paras Thakkar - Founder of Sourceinfi shares his insights of importing products Internationally in the E-commerce World. ✅ Stay tuned for the complete episode on May 8th and elevate your international business game. The link to my channel is in the comments, make sure to subscribe to the channel to never miss a video. #kushalarora #kushalkonversations #kushalarorapodcast #parasthakkar #sourceinfi #ecommerceimport #ecommerceimportbusiness

١٢

Zomato's Q1FY25 Earnings Soar: Revenue Up by 74% to Rs 4,206 Crore, Profit Skyrockets to Rs 253 Crore https://lnkd.in/d4YNQHFi Great to see regular profits from startup darlings of India. way to go 🎉🥳 #zomato #startup #india #indiastartup

٨

١ تعليق واحد

Only D2C teams know how BIG a news it is that Shopify's Advanced Cash on Delivery (COD) app shut down 3 days ago With multiple brands reaching out to us for help I was contemplating how this poorly rated app has been the backbone of building the D2C ecosystem in India The Shopify India team got it built through a dev agency back in the day, because literally no other country had these problems Brands have a deep love / hate relationship with COD Why Love? - Even after a small brand gets someone interested in their products & story It is still tough for the buyer to trust the brand enough to Pre-pay online COD gives them enough comfort to give the "new kid on the block" a chance In numbers, ~60-70% of D2C orders are still COD despite high UPI penetration. Brands see non-trivial increase in conversions when they give cash on delivery Why hate? ~10-30% of COD orders are never delivered for variety of reasons - fraud, bad addresses, change in mind etc That is very expensive for a small business -- ZERO revenue from the returned order, but o Cost of sending the package back and forth o Blocked inventory o Damages to the product This app attempted to solve this by providing control on who gets to see COD based on products, order sizes, pin-codes This problems with offering COD were however much deeper, as we realized over time shopflo merchants helped us create Advanced++ COD functionality, right within our product. As brands try to keep COD problems in check, we're doing our bit by creating "Priority onboarding for those using Advanced COD" DM me if you'd like to speak to us or visit www.shopflo.com End of an era, indeed

١٢٢

٧ تعليق

Venture capital firm Peak XV Partners has about Rs 16,000 crore of “dry powder” ready for investment Just think of it, a lot of problems in the ecosystem will be solved So just be strong, focused and lean for now Sooner or later, things are going to change

١٥

1000+ Leads Generated for Demat Account Opening While there are so many Financial Products Distribution apps in India I thought of introducing this feature in V2 of Picxele™ Wasn't sure whether we would be able to match other apps Because all other apps available in the Market are Top Notch with amazing Architecture of the app Definitely for me to build that will take huge Engineering Efforts and Money We made the simplest version And here we are combining 2 companies for whom we have listed Demat Account Opening Distribution Task A total of 1000+ Accounts opened in 3 months A milestone for me on this feature and a validation from our user whether this can work for us or not Our hero tasks were mostly Survey, App Promotion with In-App Activities For financial products, we have only explored the Demat Account category, yet to explore Credit Cards and others PS: Fintech companies looking for their product distribution can DM me (Loans and Insurance we don't do)

١٩

Quick Commerce: India's Red-Hot Sector Are you invested? Read this and decide.. India's quick commerce market is growing faster than anticipated, attracting global attention. A new category created by Zepto and currently led by Blinkit . Seems to have it all - Growth - TAM - Monetization Key Players: 1. Zepto 2. Zomato-owned Blinkit 3. Swiggy Instamart 4. Tata-owned BigBasket 5. Walmart-owned Flipkart Market Projections: - Current market size: $3.8 billion (FY24) - Projected growth: $78 billion (FY34) - Compound Annual Growth Rate (CAGR): 69% (FY24-FY27) Market Share: - Blinkit: 39% (CLSA) / 40% (JP Morgan) - Zepto: 27% - Swiggy Instamart: 24% - Others: 10% Gross Order Value (GOV) Run Rate: - Swiggy Instamart: $1.3 billion - Blinkit: $2 billion - Zepto: $1.5 billion Investments: - Zepto's valuation grew 3.5x in the past year - Mars Growth (via Dragon Fund) and General Catalyst invested in Zepto's latest round - Tiger Global investing $500 million in Meesho Tiger Global's India Focus: - Raised $2.2 billion for its latest venture capital fund (April) - Target: $6 billion - Key exits: Getir (Turkey) Challenges and Opportunities: - Global quick commerce struggles: Getir's valuation dropped from $12 billion to $2.5 billion - India's quick commerce now accounts for almost half of online grocery spend - Rapid deliveries account for over half of e-grocery shopping #public #private #markets #investment

٤٤

Who k*lled Koo? Is it X or YouTube? Koo is a publishing platform and gets its revenue from advertisement listed on the platform. Where all Indian online advertisement spend is going? Any guesses? Yes, it's YouTube (or Google) and Meta which has sucked in a major portion of India's social media advertising spend. Google's (including YouTube) 2023 ad revenue from India was whopping Rs. 28000 Crore!! And Meta earned Rs. 18300 Crore during same period in India through online ads! Now through WhatsApp advertising Meta will suck in a lot of other revenue from print media. Do you see the challenge here? These platforms are operating in India for more than 15 years now. They didn't make any money (or lost a lot of money) in the initial years and now making profit. They were able to survive because of their deep pocket. But for a startup like Koo it is an uphill task to compete with such giants unless it has a runway of minimum 10 years! Koo got just 4 unfortunately. Perhaps they should have been more conservative with their spent but sometimes investors themselves want founders to spend money quickly 🤔 Oh well - hopefully a good lesson for all the founders out there.... Thoughts? **** edurigo.com #koo #google #youtube #meta #whatsapp #socialmedia #advertising #ad #revenue #startup #competition #india #funding

٨٢

٦ تعليق

Delhi's tanking AQI has given lot of marketing ideas to (mostly) startups. First magicpin and now atlys. Atlys is giving a unique discount to Delhi/NCR folks. The current AQI in Delhi equals the discount you get on your visa fees. Discount is auto applied on last step. This moment monetization isn't new. Lot of startups have done this in past. But, what do you think about this? Also, Mohak Nahta - is this offer only for the ones suffering in Delhi? Asking for a friend. #travel #visa #marketing #startups #atlys

٦٥

٦ تعليق

Mamaearth has created the perfect playbook for new launches – in online space.  But that playbook seems to be failing miserably in offline.    Let me share some data to clarify what I am saying  Please see the attached screenshot from RHP.    In FY22 Honasa launched 159 new SKUs which contributed 199cr to their Net sales (1.25cr)  In FY23 they launched 301 new SKUs which contributed 279cr in Net sales. (0.92cr)  In Q1FY24 they launched 109 new SKUs which contributed 40cr (0.36cr)    3 things emerge from this data    1) Mamaearth has perfected how to launch and scale new products in the online space    2) The sales from new launches has been slowing down every year (refer to figures in bracket). Meaning the strategy may be nearing saturation.    3) Most importantly this strategy is in complete contrast to what works in offline. Offline needs fewer SKUs that sell in huge quantity. This leads to wholesale demand which creates indirect distribution. It increases the ROI on brand investments. And so the virtuous cycle continues.    Goes without saying that the product, proposition & pricing have to be suitable for GT. This has been another misstep for Mamaearth. Copy paste of online products may not work and the lower success ratio leads to stocks getting at GT distributors.    All this points to a clear need to revisit their product strategy for offline market. Do you think blindly launching online products in offline is a sound strategy

٦٦

٧ تعليق

Groww becomes the second major startup after PhonePe to shift domicile to India. Groww is also backed by Silicon Valley’s famous startup accelerator Y Combinator. When Groww was formed eight years ago, Y Combinator advised it to keep its base in the US for better fundraising prospects. This scenario no longer applies. Besides, Groww wants to pursue an IPO in India. Earlier, PhonePe also shifted its base to India. But it had to pay a whopping INR 8,000 Cr to move its domicile to India from Singapore. Several other Indian startups, including Zepto, RazorPay, Meesho, Livspace and Pine Labs, also plan to return to India. So why are these startups doing a reverse flip and ready to pay hefty taxes? - Tightened regulation Indian regulators, including the RBI and Sebi, have stepped up the oversight of companies in the financial services sector in recent years. They now demand detailed disclosures about their fund sources and domiciles before granting licenses. - Preparing for IPO These startups want to raise capital from the market at better valuations. And there's nothing better than India for business operating in India. Should the government ease up taxation norms for companies looking to redomicile to India? It would lead to more foreign-headquartered Indian startups considering reverse flipping. What do you think? Disclaimer: Views are my own and not of my employer. #startup #IPO #Groww #phonepe #ecommerce #meesho #udaan #zepto

١١

Unlocking eCommerce Growth: Lessons from #Amazon and India's #eCommerce Boom : From a humble online #bookstore in 1994 📚 to a global eCommerce giant, Amazon's journey has transformed #retail and reshaped the industry 🌐. As Amazon reached $575 billion in net sales in 2023 💰, its strategic focus on solving customer problems and building a robust #logistics network has been key to its success. Here's what we can learn from #Amazon's rise: Problem-Solving Mindset: Amazon addressed the inconveniences of traditional retail by offering a wide range of products, competitive pricing, and seamless delivery 📦. Focused Expansion: Starting with books, Amazon perfected its model before expanding to other categories, becoming a #marketplace for third-party vendors 🛒. Logistics Leadership: Investing in #fulfillment centers, delivery networks, and advanced technologies allowed Amazon to deliver unmatched customer service 🚚. Now, India is on a similar trajectory, projected to become the world's third-largest eCommerce market by #2030, with a market size reaching $325 billion 🇮🇳. Invest India highlights several key drivers of this growth: Expanding Internet Access: With an expected 87% of Indian households having internet access by 2025 📶, India's massive user base is a significant advantage. Growing Online Shopper Base: An estimated 500 #million online shoppers by 2030, driven by both urban and rural growth 🏙️. Affordable Data Plans: India's #low-cost data plans make internet access more accessible, fueling eCommerce adoption 📱. Robust Digital Infrastructure: Unified Payments Interface (UPI) and other digital payment methods have made online shopping easier and more convenient 💳. These factors, along with government initiatives and the rise of quick commerce, are setting the stage for India's transformation into a global eCommerce powerhouse 🚀. Takeaway: By focusing on customer needs, investing in technology and logistics, and embracing innovation, businesses can unlock significant growth in the eCommerce sector 🔓. The stories of Amazon and India's eCommerce boom offer valuable insights for startups and established companies alike. Let's embrace these lessons and drive the future of eCommerce together 🌟. #ecommerce #qcomm #qcommerce #boomingmarket #ecommerceboom #indianecommerce #indianmarket #ecommerceindustry #qcommindustry #onlineshopping #onlinepurchase

١٥

Zepto raising hundred million dollars for its new delivery stores and dark stores. Soon. These quick commerce will start delivering electronics, clothing and other consumer products on a large scale. Quick commerce in India is growing at 30% rate. Same strategy will be followed by the Zomato and other quick commerce platforms as well. #Zepto #zomato #stockmarket #sharemarket #nifty #market #analysis #analysis #stock #trading #research #zeptoshare #zomatoshareprice

١

Fake invoices, showing pending collections as booked revenue, listing customer sales & vendors that never existed... ReshaMandi, a Bengaluru-based venture once a big name in the B2B fashion and textiles supply chain, hit an unfortunate end due to all these reasons! ‌ It raised more than $40 million in funding in 2021 and 2022. But soon it started stumbling around 2023 due to: ‌ -Struggling to pay liabilities -Bearing operational costs including salaries for several months -The website is shut down ‌ Here’s what happened ⤵️ ‌ 👉 Aggressive expansion ‌ ReshaMandi had aggressive growth goals without any plan and impractical revenue predictions. ‌ → It rapidly ventured into multiple new verticals in 2022 - precision farming, financing, and a consumer brand. ‌ Eventually, it got hit by a cash crunch and revenue challenges by mid-2023. ‌ ‌ ‌ 👉 Business with high credit-risk vendors ‌ → In a bid to expand, ReshaMandi engaged with high credit-risk buyers after the 2021 funding. Lack of collections caused the company's finances to deteriorate. The vendors were subsequently left unpaid. ‌ 👉 Streak of loan defaults and legal charges ‌ With debts of around Rs. 250-300 crores, ReshaMandi got involved in legal battles. ‌ → 3 venture debt lenders and a vendor took the company to the NCLT under Section 7 of the Insolvency & Bankruptcy Code, 2016. ‌ → A total debt of Rs. 14.4 crores was availed by ReshaMandi from Northern Arc. ‌ → AU Small Finance Bank filed an NCLT application against ReshaMandi to recover an amount of Rs. 9.7 crore. ‌ 👉 Corporate governance issues ‌ ReshaMandi's website showed: ‌ -A revenue of Rs. 413 crores in FY22 -A revenue of Rs. 1,248 crores in the first 3 quarters of FY23 -A target of Rs. 2,000 crores for the full year ‌ All these details on the company’s website are now deleted. ‌ Former employees claim that these reports were inflated to show investors and raise funds. The company: ‌ -Used fake invoices -Reported pending collections as booked revenue -Listed customer sales and vendors that never existed ‌ 👉 Audit failures ‌ The company was unable to support the audit firm’s efforts to complete the financial statements for FY23. Filings revealed that the company owes Rs. 14.16 lakhs to the auditing firm for services offered. But with so many VC firms, why were the analysts from the‌se firms on top of actual processes and finances. 👉 Back-to-back resignations ‌ → Ritesh Kumar served as CFO between March 2022 to January 2023. KRMG’s CFO Samadrita Chakravarty took over Ritesh Kumar but quit in October last year. → The auditor, Walker Chandiok & Co LLP, had resigned. ReshaMandi had to hire a new auditor last July. ‌ Thoughts? #layoff #startup #india #technology #fashion

١٣

٢ تعليق

Apple launched the iPhone 16 on 20th Sept — Blinkit delivered over 300 units in 2 hours between 8AM and 10AM on the launch day. The CEOs of every QC company were quick to begin live tweeting statistics about their iPhone sales (Zepto, Blinkit, BB etc)… And, there is a reason why QC co’s are so laser focused on nailing the sales of mobile phones & other electronics (e.g. PS5) To understand why, let’s look at some facts & figures: (1) ~80% of Flipkart’s Big Billion Day sales are consumer electronics (mobiles, TVs, fridge etc) — not surprising right? (2) Every week, there is a new piece on some fight between the All India Mobile Retailers Association (AIMRA) and e-commerce platforms —> strange right? Wonder why? (3) Last week, Competition Commission of India (CCI) potentially found evidence that mobile OEMs may be colluding with e-commerce platforms to offer better rates online than offline & exclusive models —> Isn’t commerce offline heavy in India?!? ➡️Now, here’s why: 52% of e-commerce GMV in India is electronics purchases 🤯 This is why every ad is about mobile phones & precisely why offline mobile store owners are pissed off. For comparison: The global benchmark is that ~23% of e-commerce is electronics purchases. The investment team at India Quotient jokingly said “Amazon India & Flipkart are glorified electronic sellers” (from their India Insights Report 2024) A fellow investor who built a 1st gen e-comm company in India apt summarized this when he told me: E-Commerce in India is “Mobile (Electronics)” Commerce and NOT “Electronic” Commerce — without mobile phones, e-comm in India is nothing. 💡QC companies are trying to “replace” E-Comm in India (i.e. shift wallet share to their platform). Hence, they need to break the e-comm stronghold of mobile phones & consumer electronics. ➡️The CEO-led hype creation around iPhone 16 and PS5 deliveries in 10 minutes or less is absolutely core to the QC strategy of building habit formation & creating customer comfort — you’ll perhaps never buy a fridge from Zepto, but you might buy a smartphone :)

٣٢

٤ تعليق

🚀 The best way to promote & find customers for your product, service and business is finally here. Engzup finds best relevant contents from X and Reddit where you can promote your needs, analyse the trends and find customers. 🔗 To know more, visit engzup.com

١٨

٦ تعليق

☕ At the end of every project I've ever worked on, the "distribution" always made fun of it. I was unsure of WHERE, HOW, and WHEN to market and find users for my initiatives, I kept losing motivation. That's what inspired me to create engzup.com. Engzup's goal is to provide everyone with the leverage they need to quickly identify new customers, examine popular content, and effectively market any kind of business, product, or service on X and Reddit. Join me on the journey :)

١