Niyaz Laiq’s Post

Quick Commerce in India: Booming Market, Burning Challenges The Indian quick commerce (q-commerce) scene is exploding. Currently valued at $700 million, With a projected 8x growth to reach $5.5 billion by 2025, it's attracting major players like Swiggy Instamart, Zepto, and Zomato Blinkit. But this fast-paced race comes with its fair share of hurdles. Let's dive into the burning challenges plaguing q-commerce and explore potential solutions to keep the flames at bay: 📢 Current challenges ⏩ Delivery Dilemma: Delivering essentials in 10-25 minutes is expensive! Hub operations and last-mile deliveries are burning a lot of cash, often leading to losses per order. The average basket size, filled with small, just-in-time purchases, doesn't justify hefty delivery charges. ⏩ Market competitions: The market is hot with major players battling to win the consumers. Fierce competition drives discounts, further squeezing profit margins and making sustainable growth a distant dream. ⏩ Workforce challenges: Managing a large, hyperlocal workforce requires efficient sourcing, training, and motivation. Unskilled workers need upskilling programs, while timely salary disbursement and standardized employee experience are crucial to keeping them happy and engaged. 📢 Future Outlook: A Balancing Act Despite the challenges, the future of q-commerce in India remains bright. Consumers are increasingly embracing the convenience and speed it offers, and the potential for growth is undeniable. But for this sector to truly thrive, a delicate balancing act is required. Companies must find ways to optimize delivery costs, differentiate themselves in a crowded market, and invest in their human capital. So, what does the future hold? Few trends to watch out for: ⏩ Hyperlocal Optimization: Forget national footprints, the future of q-commerce is hyperlocal. Expect to see smaller, strategically placed dark stores catering to specific neighborhoods and optimizing for delivery routes. Strategic Partnerships: Collaborations with local kirana stores or manufacturers could be key to reducing supply chain costs and expanding product offerings. ⏩ Technology Takeover: Automation will play an increasingly important role in q-commerce, from AI-powered inventory management to robotic picking and packing. This can boost efficiency and free up human resources for higher-value tasks. The Bottom Line: The Indian q-commerce market is a thrilling space to watch. It's a race against time, against competition, and the ever-changing demands of consumers. But for the companies who can navigate these challenges and find the right balance, the rewards are potentially huge. So buckle up, because the future of q-commerce in India is going to be a wild ride! Join the Discussion: What other challenges do you see in the Indian q-commerce landscape? #qcommerce #india #ecommerce #delivery #logistics #futureofretail #challenges #futureoutlook

#Meesho at $3.9b valuation & $300b e-commerce market in India! What makes this #Meta funded startup so special, that's growing at 32% on Year outpacing giants like #amazon (13% ) and #flipkart (21%) on year growth. Strategy-The Pricing Model The brand positions itself at low-income consumer And where the traditional platforms are targeting high-income consumers with the AOV (Avg Order Value) of ₹800-₹1,000 Meesho accounts for ₹3,00-₹4,00 AOV from T2 & T3 cities. Well, that's not the only case of super growth Meesho charge 0% commission — only suppliers keep 100% of their profit by not paying any commission. Then How they make money? Commissions: Sellers are charged a 10-20% commission, not resellers, similar to Amazon and Flipkart. 📍Advertising: Brands pay Meesho for advertising space on the platform. 📍Shipping Fees: Customers pay shipping fees on their purchases. 📍Subscription Fees: Users can pay for a subscription to access more features and sell more products. 📍Penalties: Meesho enforces strict return policies, boosting revenue and customer experience. 📍Logistics: Meesho earns from its distribution system, delivering products from suppliers to customers. And if we see the Indian e-commerce market that is valued at $122b in year 2024 and expected to reach $300b in year 2029 with CAGR of 21% lets huge potential for startup like meesho targeting on lower-income consumer base which accounts for almost 60-70% of the e-commerce market in India. Meesho Highlights Over 50 lakhs+ products 12lakhs + sellers 120m active users 14cr+ app downloads 📍Revenue Y23 Revenue ₹57b & Loss ₹16b Y22 Revenue ₹32b & loss ₹32b 440k annual transaction Has half of 3rd party logistic shipment, Gross Merchandise Value (GMV) of $5b+ Total Funding $1.4b Y24, Series G $275m Y23, Secondary Round $53 Y21, Series F $570m Y21, Series E $ 300m, Softbank Fund Y19, Series D $125 Y19, Corporate Round $25m, Facebook Y18, Series C $50m Y18, Series B $11.5, Y17, Series A $3.4m, Y16, Seed Round $120k, Y-combinator Credit 2 Vaibhav Sisinty ↗️ Meesho Amazon Startup Story® Startup Pedia YourStory Media Inc42 Media #funding #startupstory #india #ecommerce #retail

🚀 Embracing India's Digital Revolution: Zepto's Journey to Quick Commerce Dominance! 🌐🛒 India's rapid digitization is reshaping its economic landscape, propelling the nation into a new era of online commerce. At the forefront of this transformation stands Zepto, a quick-commerce powerhouse revolutionizing grocery delivery in India. Join us as we delve into Zepto's visionary approach and its impact on the evolving e-commerce ecosystem. Founded on the premise that faster delivery drives improved unit economics, Zepto challenges conventional norms in quick commerce. Through a blend of technology, hyper-local infrastructure, and operational precision, Zepto enhances delivery speeds while maintaining profitability. 💼 Discover how Zepto's strategic bet on swift deliveries is driving customer satisfaction, operational efficiency, and long-term success in the dynamic Indian market. #Zepto #QuickCommerce #DigitalTransformation #ECommerceRevolution #GroceryDelivery #IndianEconomy #TechInnovation #HyperLocal #CustomerSatisfaction #OperationalEfficiency #DigitalIndia 🚀 Embracing India's Digital Revolution: Zepto's Journey to Quick Commerce Dominance! 🌐🛒 India's rapid digitization is reshaping its economic landscape, propelling the nation into a new era of online commerce. At the forefront of this transformation stands Zepto, a quick-commerce powerhouse revolutionizing grocery delivery in India. Join us as we delve into Zepto's visionary approach and its impact on the evolving e-commerce ecosystem. Founded on the premise that faster delivery drives improved unit economics, Zepto challenges conventional norms in quick commerce. Through a blend of technology, hyper-local infrastructure, and operational precision, Zepto enhances delivery speeds while maintaining profitability. 💼 Discover how Zepto's strategic bet on swift deliveries is driving customer satisfaction, operational efficiency, and long-term success in the dynamic Indian market. #Zepto #QuickCommerce #DigitalTransformation #ECommerceRevolution #GroceryDelivery #IndianEconomy #TechInnovation #HyperLocal #CustomerSatisfaction #OperationalEfficiency #DigitalIndia

Meesho's Impact on Small Sellers and Tier 2/3 Cities Meesho has democratised internet commerce for everyone in India, empowering the smallest sellers and becoming a billion-dollar company. Meesho's vision is to enable 100 million small businesses in India to succeed online, targeting smaller towns and cities. Meesho identified the low penetration of e-commerce in tier 2 and tier 3 cities due to a lack of awareness and trust among small sellers, presenting an opportunity for growth in those areas. The gap between big and small sellers on Amazon keeps increasing, while Meesho has attracted many sellers from tier 2 and tier 3 cities. By tapping into tier 2 and tier 3 cities of India, Meesho has built a profitable billion-dollar company in spite of the cutthroat competition in the e-commerce industry. While e-commerce giants focused on big cities, Meesho became a saviour for small sellers and manufacturers, giving them a profitable advantage. Meesho's Business Model and Competitive Advantage Meesho's active users grew by 32% year on year, outpacing the growth of Amazon and Flipkart, despite the intense competition in the e-commerce market. Meesho's success in cracking the e-commerce industry of India despite Amazon and Flipkart's first mover advantage is a result of their focus on empowering small sellers and providing affordable pricing and accessibility. Meesho charges 0% commission to sellers, unlike Flipkart and Amazon, allowing sellers to keep the whole selling price with a slight deduction of the fulfilment fee. Meesho's unique business model with zero commission gives them a major advantage over other e-commerce platforms in India, allowing sellers to pass on savings to customers. Meesho's decision not to have private labels allows them to focus on empowering small and medium scale business owners, rather than competing with them, potentially leading to higher profits. Follow for more Ganesh VL

E-commerce one of my favourite industry In a rapidly changing world, the e-commerce sector has been a key driver of economic transformation, not just in India but across the globe. 🚀 According to a recent report, India's e-commerce market is projected to grow to *$188 billion by 2025*—an incredible leap from *$64 billion in 2020*. Key players like Flipkart, Amazon India, and JioMart are at the forefront, serving the needs of a billion-plus population with increasing digital adoption and smartphone penetration. 📱 On a global scale, e-commerce is already a $6.39 trillion industry, with giants like *Alibaba*, *eBay*, and *Amazon* leading the charge. But what's unique about India’s story? It’s the logistical challenges and cash-on-delivery model that sets the stage for innovation. The rise of startups like Rapido, with its recent achievement of creating 70 lakh jobs in 9 years , shows how India is not just adapting but also creating job opportunities in the gig economy. 💼 So, what makes Indian e-commerce brands like Flipkart ,  Myntra  and  Rapido so resilient? It’s all about understanding the local market, offering tailored customer experiences, and leveraging the best of tech to scale rapidly. In comparison, global e-commerce markets focus on innovation through **subscription services**, **personalized marketing**, and **faster delivery options**. 🌟 Whether it’s food delivery apps, ride-sharing platforms, or online marketplaces, the digital revolution is reshaping every corner of our economy. Let’s reflect on a few key strategies that have made this growth possible: 1. Localized Marketing Campaigns– Flipkart’s Big Billion Days Sale has been a key example of creating buzz while tailoring the offers to suit Indian customers. 2. Technology-Driven Personalization – Amazon’s Prime Day has revolutionized how global e-commerce players engage customers with faster delivery and exclusive deals. 3. Job Creation & Economic Impact  – Rapido’s model of integrating bike taxis into tier-2 and tier-3 cities while adding 1.5 lakh jobs every month is a testament to how e-commerce and gig economies are transforming lives. As a Communication Strategy Consultant and Personal Branding Coach ,  I encourage every business to stay adaptive, think global while acting local, and ensure that sustainable growth is at the core of your strategy. Are you ready to take your business to the next level? Let’s connect and discuss tailored strategies to make your brand a success in the digital age. 🚀 #Ecommerce #DigitalIndia #CommunicationStrategy #PersonalBranding #MarketingStrategy #GrowthMindset #Rapido #Flipkart

🚀 The Real Story Behind India’s Quick Commerce Boom: Beyond the Hype 🚀 As we move through 2024, India’s Quick Commerce (Q-commerce) sector is booming, with the market projected to reach $9 billion by 2029. Brands like Blinkit, Zepto, and Swiggy Instamart are redefining retail with ultra-fast delivery promises. But beneath the surface of this rapid growth, several critical factors are shaping the future of Q-commerce in India. 1. Intensifying Competition: The Giants Step In In August 2024, Amazon announced its plans to enter the Q-commerce market in early 2025, aiming to reduce delivery times to just 20-30 minutes. This move follows Flipkart’s recent launch of Flipkart Minutes, marking the beginning of a fierce competition with established players like Blinkit and Zepto. The race for faster delivery and broader product offerings is intensifying, especially in metro cities. 2. Profitability vs. Scale: A Delicate Balance While the Q-commerce market is growing rapidly, with an expected CAGR of 24.33% over the next few years, profitability remains a significant challenge. The capital-intensive nature of maintaining dark stores and delivery fleets means that many players are operating on thin margins. The influx of investments is fueling expansion, but the question remains: Can these companies scale sustainably without compromising profitability? 3. Consumer Demand and Technological Reliance India's urban consumers, especially millennials and Gen Z, are driving Q-commerce adoption due to their demand for convenience. The success of this sector hinges on advanced technologies—AI for demand prediction, real-time inventory management, and automation in dark stores. However, this tech dependency also presents risks: a single glitch could disrupt the entire supply chain, impacting customer satisfaction. 4. Environmental and Social Impact: The Untold Story Amidst the race for speed, the environmental impact of Q-commerce is often overlooked. Frequent, small-scale deliveries contribute to higher carbon emissions, and the push for instant gratification has yet to address sustainability comprehensively. Moreover, the labor conditions of delivery personnel are under scrutiny, raising questions about the long-term viability of this business model from both an ethical and environmental standpoint. 5. The Road Ahead: Innovation Beyond Speed As Q-commerce continues to expand, the companies that will thrive are those that innovate beyond just reducing delivery times. The future of Q-commerce in India will likely involve more sustainable practices, better working conditions, and enhanced technological infrastructure. The sector is at a crossroads where balancing growth with responsible practices will determine its longevity. 🔍 What do you think is the biggest challenge facing India’s Q-commerce sector? Can it sustain its rapid growth while addressing these critical issues?

Quick Commerce, it is often frowned upon in India. Many influencers have spoken against it because it creates a lot of pressure on the delivery partners. But one thing I've noticed from experience is that there's no bad product just there are not enough use cases for the product. People condemned 10 min grocery delivery but regularly ordered groceries from them and more so when unexpected guests or situations arrived. The target audience was simple middle to upper middle class folks in top tier cities. What eventually turned out was that this model is very difficult to make it profitable and people had very low AOV. So smart folks at big companies started experimenting, how to increase AOV and in the process what they discovered is a new use case, delivery of anything and everything. Remember, when you were looking to buy your favourite smartphone and you want it right now but you can only get that in a few days. Well now you may start getting everything deliverable in a few minutes. Going out tomorrow, need a new pair of jeans, 10 minutes, too hot need a new AC, 10 minutes, getting bored, need a PlayStation 5, 10 minutes, mother's birthday, need to gift an iPhone at 12 midnight, 10 minutes, got bruised, need medication, 10 minutes, IPL match starting in an hour, need a bigger screen, 10 minutes. These quick commerce companies are becoming something that Dunzo never could. The only problem was that Dunzo did not have a supply side and products in its name, it was just an aggregator. Amazing right, now nobody's complaining, who thought that quick commerce companies could pose a big threat to giants like Amazon and Flipkart. Mark my words if quick commerce becomes smart with its use cases any and all eCommerce companies will get disrupted. The companies that were struggling to pay delivery partners because of low margins can now almost pay in an instant with just a single order of iPhone Pro Max 1 tb. Get ready people, Blinkit, Zepto, Amazon, Flipkart are gonna enter a new race to acquire customers in the side of quick commerce where Ecom giants have experience in inventory, delivery and return management, Blinkit and Zepto have experience in delivering things super fast. It'll be amazing to see how giants tackle this challenge as these companies pose a serious threat to them. Now the target audience has widened, middle class to upper class to ultra rich class everyone's a target audience. And as always whenever disruption happens, customers are the happiest folks because ultimately they get more pampered.

The Rise of Quick Commerce in India The quick commerce (Q-commerce) sector in India has witnessed exponential growth in recent years, revolutionizing the way consumers shop for daily essentials. Powered by evolving customer expectations, urban lifestyles, and advancements in technology, q-commerce promises ultra-fast delivery — often within 10–30 minutes — of groceries, medicines, and other necessities. Key Drivers of Growth 1. Changing Consumer Behavior: With increasing urbanization, consumers prioritize convenience and speed over traditional shopping experiences. Q-commerce addresses this need, especially for last-minute purchases. 2. Smartphone and Internet Penetration: Affordable smartphones and widespread 4G connectivity have expanded the reach of online services, enabling Q-commerce players to tap into Tier 1, Tier 2, and even Tier 3 cities. 3. Innovative Business Models: Companies like Blinkit, Zepto, Big Basket and Instamart have embraced dark store networks and hyper-local delivery systems to optimize speed and efficiency. 4. Funding and Market Potential: The q-commerce space has attracted significant venture capital investment, with startups scaling rapidly due to high market demand. India's grocery market alone, estimated at $600 billion, presents an immense opportunity for q-commerce to capture a share. Challenges in Scaling While q-commerce offers convenience, it faces challenges such as high operational costs, profitability pressures, and logistical hurdles in densely populated areas. Sustainability and the well-being of delivery personnel also remain critical concerns. The Road Ahead The q-commerce boom reflects India’s appetite for innovation and convenience. To thrive long-term, businesses must focus on balancing speed with efficiency, building customer trust, and addressing operational challenges. As the ecosystem matures, q-commerce could redefine the future of retail in India.

Quality of Revenue Issue in Indian Internet: - Indian Internet Marketplaces usually report Revenue - This Revenue in 90% cases is made up of Ad Revenue and Commission Take Rate - The assumption is that a 3P is selling/advertising on these platforms However, over the next 2 years you will start seeing Private Labels in both Food and Qcom. This will create a new confusion for the uninitiated retail investor. Confused me for a decade. Here is how it goes: - If you sell a INR 200 Private Label Biriyani, it is both a GMV and a Revenue - It is revenue because you own the Biriyani manufacturer - You are responsible for the sourcing, storage, cooking, packing - All of these will show up as COGs in your financials - This will suddenly one quarter bloat up the revenue figure although the actual quality of the revenue will go down What should companies do ideally? - Revenue should be broken up into three parts - Ads, Take Rate, Private Label - The Private Label should not be valued at platform multiples, rather it should be valued similar to a consumer brand like Honasa/QSR - Even cleaner would be to accumulate all Private Labels as a separate holding company as the nature of business is different - This holding company should pay the marketplace the normal commission and ads money and register them as costs in their own financials Will this happen? - Of course not :) amazon has pulled this off for 3 decades, flipkart for 1 At scale you will get a breakup of Ads and Ecom Revenue (which will be diluted with Private Label GMV) Is this wrong? Well Dmart and Walmart do it similarly. - They source the FMCG supply as COGs and sell it as Revenue - There is no concept of take rate in traditional Retail - There is nothing illegal in doing it this way The Takeaway: The Revenue quality goes down as a result of this, if you are a PE investor this won't bother you, although your PAT profile is likely to go down as percent of revenue it will go up as percentage of GMV due to vertical integration, if you are a Revenue investor, you need to be a little careful in your private assessment of growth. Note: I have excluded Logistics from this as that is another potential diluter based on owned fleet vs 3P. Qcom at least owns its logistics, so that shows up directly in pnl as cost.