Tag: Dunzo

Decisions like layoffs are tough and the last option as it impacts people, says Dunzo CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Groceries delivery startup Dunzo laid off three percent of its workforce last week. The step was taken as part of cost cutting measures.

Kabeer Biswas, CEO and Co-Founder, Dunzo told CNBC-TV18 that the company is extending the best support possible to help employees during this transition.

“Any decision that impacts people is tough & always our last option,” said Biswas.

Bengaluru-headquartered startup Dunzo reported a net loss of Rs 464 crore in FY22. This showcase a two fold spike from reporting a net loss of Rs 229.1 crore in FY21. According to company’s annual financial reports the rise in operational cost led to the spike in loss.

Dunzo lost Rs 230 on each Dunzo Daily order during the first half of 2022 that is from January to June. EBITDA loss in June was Rs 176 crore.
However Dunzo’s revenue from operations increased over two times to Rs 54.3 crore in FY22.

Also read: STARTUP DIGEST: Dunzo lost Rs 230 on each daily order: Report; Byju’s eyes $1 billion IPO for Aakash; NPCI CEO pitches UPI autopay for Twitter blue tick fee

Biswas told CNBC-TV18 that the company is continuously looking at team structures and network design to build efficiency into the teams and redefine the business process at scale.

“Whatever the numbers, these are people who chose to build their careers with Dunzo, and it is sad to have talented colleagues leave us,” added Biswas.

Last year with the markets turning, existing investors urged quick commerce companies to get on the street of profits, get off the pandemic high-horse and get frugal along with going fast. The first step was to curtail the burn in setting up newer dark stores to get within 2-3 km of a potential customer which ensures quicker deliveries.

Also read: Quick commerce in 2022: The year of learning to be fast and frugal

Earlier this year, Dunzo founder Kabeer Biswas told CNBC-TV18 that it takes about Rs 70 lakh to Rs 1 crore ($100,000 to $1,25,000) of investment per dark store over a period of four to five months for it to breakeven.

Dunzo opened a micro fulfilment centre every 1.5 days between January and March, 2022. But, recently shuttered some of its dark stores across Delhi NCR and Hyderabad ‘in peripheral areas with very low demand to drive operational efficiencies and optimise costs’, which led to some layoffs as well.

Also read: Urban Company tops Fairwork ranking for gig workers, Ola and Dunzo score zero highlighting need for better policies

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

The humble QR code is everywhere. Here’s how brands are making innovative use of the tech

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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During the nail-biting finale of the 15th edition of IPL, millions of television viewers were left confused when their screens went hazy. What followed was a QR code on their screens. Quick commerce platform Dunzo flashed a QR code for 20 seconds with a copy that read, “Inconvenience is regretted. Convenience is not.”

The cue was to scan the QR code to land on the brand’s app. Many viewers thought this was too similar to American crypto exchange Coinbase’s Super Bowl ad which was released earlier this year. Whether it was or not, and if 20 seconds was too less of a time for the audience to scan the code, is a topic for another story. Viewers noticed and engaged with the ad, and that’s all Dunzo wanted. As a result, Dunzo saw 10x traffic on the campaign’s landing page, which was hosted on their website.

According to reports, Dunzo invested around Rs 40 crore on advertising and marketing during IPL this year. Considering the final ad slots are sold at premium rates, industry estimates indicate the brand could have spent anywhere between Rs 10-14 lakh on this spot. Dunzo’s chief executive officer and co-founder Kabeer Biswas believes brands need to “engage, entertain and inspire” consumers. “Coming up with an engaging piece of content or a vanilla brand message for 20 seconds doesn’t cut through owing to the attention span of the people today,” he adds. Especially if QR codes are used in mainstream advertising.

He believes television continues to remain the top choice for families in India and QR codes are becoming popular in the country. Hence, Biswas and his team rolled out the QR code-centric campaign. Dunzo has been using QR codes even in print ads. He explains the strategy. “There are various stages in a marketing funnel before a consumer places an order on Dunzo. Use of QR codes in advertisements removes a few layers in the funnel and can lead to better conversion and engagement.”

Printing the right content marketing codes

Another brand that has been using QR codes in its communication is hospitality chain OYO. During the 2021 edition of IPL, OYO created coupon codes named ‘Hockey’ and ‘Akhada’ that urged readers to think about other sports and teams beyond cricket. The campaign increased the positive sentiments about the brand by 4.5 times in less than 30 days. This was followed by an ad for an Olympic Calendar, which marked Team India’s participation in events. By scanning the QR code, readers could download these dates to their own Google calendar.

Over the last few years, Mayur Hola, SVP – global head of brand, OYO, says QR codes have been one of the most engaging advertising tools for the brand. On Valentine’s Day this year, through its #LetLoveIn campaign, OYO released print ads in 17 editions of a daily newspaper. These ads had verses of iconic poets – from Bulleh Shah to Rabindranath Tagore, in Bengali, Marathi, Telugu, Tamil, Malayalam, Urdu, Gujarati, Kannada, and Punjabi. The twist here was that these ads were strategically placed in a language not widely spoken or understood in that particular state. Scanning the QR Code on the ad led to a site, where English translations of all the ads are available. Hola claims, “This campaign saw 50,000+ scans of the QR code. That’s a scan rate of 1.54 percent on a 3 million active issue readership base. When you compare this to the average click-through rate in AdWords across all industries, which stands at 1.91 percent on the search network and 0.35 percent on the display network.”

PepsiCo India has been using QR codes not only to enhance consumer engagement but also to deliver an interactive experience. Of course, keeping content at the core of the marketing strategies. The company has been placing QR codes on some of its popular brands like Pepsi, 7UP, and Quaker, among a few others. In early 2022, Quaker went for refreshed packaging. One of the design tweaks that the brand made is the addition of a QR code on the oats brand’s packs that led consumers to its content hub page, which has a list of quick breakfast recipes. For Pepsi, the company added a touch of pop culture through QR codes on its special edition golden cans. This was done ahead of the premiere of part one of the series Money Heist’s finale on Netflix. Fans could scan the QR code and enter a virtual Money Heist party.

Scanning the challenges

In a country where only 22 percent of adults own smartphones and 51 percent are still on feature phones, there are several challenges to making QR codes the centerpiece of marketing campaigns. While QR codes are widely plastered on the walls of kirana shops, sabzi mandis, chemists, and even on Covid-19 vaccination certificates, there are technology glitches that need attention. Glitchy internet connectivity can be frustrating to consumers who are making a payment or for brands that place their bets on a QR code. For instance, Dunzo was in a tight spot seven minutes before its campaign was about to go live. The QR Code stopped working. The brand had accounted for all these scenarios and was well prepared to fix them.
The other challenge that marketers see is to make consumers pick up their phones and scan the code. That can only happen if the content build-up is well-timed and engaging, admits Dunzo’s Biswas. To ensure engagement, it is essential that the QR codes are easily spottable, accessible, and scannable.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Storyboard18 | Inside Dunzo’s marketing playbook

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A full-page print ad in an English daily’s Chennai edition (March 26) and multiple hoardings across cities about an obituary for the departed fridge “Sri Fridgesh Coolkarni” set the internet abuzz. Users and brand gurus were busy discussing what this ad could possibly mean until a final reveal stated that the ad was done by logistics and grocery app Dunzo to promote its quick commerce delivery service Dunzo Daily.

This is a classic marketing ploy of Dunzo by creating something deeply intriguing which is bound to be discussed and possibly go viral. That’s how the delivery startup has created a unique brand image by displaying its marketing prowess time and again. All its promotions are done in-house. Founded in 2014 by Kabeer Biswas, Dunzo began its journey as a WhatsApp service and it started offering delivery and transportation service through the app later.

Dunzo’s advertising and promotion strategies often hinge on moment marketing where its messages or advertisements are created by using relevant content from current events.

In an exclusive interaction with Storyboard18, head of brand, Dunzo, shares the playbook for building Dunzo and the tenets of its loved brand personality.

Relatable content

Ganesh said Dunzo’s vision is to be the primary convenience provider in the user’s life like reduce friction and enable consumers, merchants, and partners to lead more enriched lives by taking away the cumbersomeness of everyday tasks.

“From a marketing point of view, our brand has always been relatable and inclusive given our ‘Every person archetype’, while staying contemporary and bold,” he adds.

It is evident from the branding elements that the company uses. A Dunzo rider, for instance, with her/his green helmet and the ‘D’ logo with the lightning bolt are easily identifiable. These brand mascots instantly make Dunzo come across as a fun and helpful brand. Interestingly, Dunzo has eight mascots across genders including LGBTQIA+ with different personalities.

Its content usually comprises fun memes, short videos and social media posts inspired by socio-cultural events ranging from the Indian Premier League (IPL), elections to popular TV show Shark Tank.

(1/2) 🎸🎶 I want to hold your hand…I want to hold your hand 🎶🎸Share your feelings without worrying about what anyone else would think. It’s time to #LoveBeyondBoundaries ❤️#valentineday #valentines2022 #lovehasnoboundaries #valentinesday2022 pic.twitter.com/L6uF2vYipU

— Dunzo (@DunzoIt) February 14, 2022

Going hyperlocal

The company’s current focus is to build its quick service Dunzo Daily in a big way. Currently, the service is operational in three cities – Bangalore, Chennai and Pune – and will be launched across five more cities by the end of June and 15 cities by end of 2022. Its promotions will be unique too.

Dunzo Daily competes with the likes of Swiggy Instamart, Blinkit, BigBasket and Zepto where the delivery time is in minutes, rather than hours or days.

Ganesh emphasizes that Dunzo’s strategy is to communicate to the local audience and at the same time be vocal at a pan India level too.

“As we have seen in the recent past there will be a hyperlocal approach for the cities that we are launching,” he notes.

Also Read: Storyboard18 | Simply Speaking: Problems, Solutions and Creativity

Keeping in mind the hyperlocal focus, Dunzo did a unique campaign for Bangalore that went viral. The full page print ad titled ‘Learn Kannada Starter Pack’ was published in the city newspapers. Created in a fun manner using illustrations, the campaign gave a peek into the local culture and lingo used in Bangalore to help newcomers navigate the city better. The ad resonated with hundreds of users who shared it across digital platforms.

In 2021, Dunzo also tried its hands for the first time with a celebrity-led #GroceryKaDramaChodo campaign featuring Bollywood actor Karisma Kapoor, which garnered over 1.8 million views. Kapoor plays the popular character of Geet from Bollywood film Jab We Met and tries to convince why online grocery ordering is way more convenient.

Viral yet personal content

One of the most striking points about Dunzo advertising is that it manages to appeal to a large number of people who find their truths in the insights on which its brand campaigns are based. Its marketing initiatives are relatable and told in a lucid way. ‘Learn Kannada Starter Pack’ is one such example.

Dunzo also manages to strike a personal connect with users who are being inundated with copious amounts of content online. This personalisation and fun banter using puns for its users’ names while responding to social media posts has also won a lot of brand love.

The cAmbination of insights and creativity proved ‘deadly’ for Fridgesh Coolkarni. 😉 Here’s to no more storing of stale veggies & fruits when you can order daily 😅 https://t.co/giGyfjXxEy

— Dunzo (@DunzoIt) March 26, 2022

“We seek to find human insights that help us do better for our consumers. Especially for targeted digital campaigns, we do seek to understand the relevance of a communication to the user by using clicks and related actions. There’s of course virality, quality of engagement, etc. which determine the efficacy of the communication,” notes Ganesh.

Also Read: Storyboard18 | Advertisers ride high on IPL 2022 wave

While there are numerous indicators that the firm tracks like virality or cost of user acquisition and many more metrics, Ganesh says, the real success of a campaign is when the company is able to communicate the intended message to the audience.

“…and get them connected to the brand through the same,” he adds.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Drones may soon deliver food, medicines and groceries in India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Super-fast delivery of food, groceries, medicines and other items via drones may start sooner than you think. After the Centre’s updated Drone Rules 2021, airborne deliveries may be rolled out in the coming months.

Skye Air Mobility, a company specialising in drone deliveries, has partnered with Dunzo to carry out trials and eventually roll out drone delivery service in Karnataka.

While it is challenging to operate drones for delivery in urban areas, the updated Drone Rules 2021 have substantially eased drone operations across the country, especially in cities, said Swapnik Jakkampudi, Co-Founder, Chief Technology Officer at Skye Air Mobility, told Mint.

Also read: Zerodha co-founder Nikhil Kamath invests in drone startup Omnipresent Robot Tech

According to Jakkampudi, commercial deliveries could start soon, but they will be executed in stages.

The new Drone Rules 2021 have simplified forms and fee structure for the registration of drones and made the procedure smoother for their operation.

The updated rules abolished requirement of several stringent approvals such as a certificate of conformance, certificate of maintenance, import clearance and operator permit, unique authorisation number, unique prototype identification number and certificate of manufacturing and airworthiness.

Also read: Budget 2022: Drones in focus from aviation to agriculture

The government has also released India’s airspace map for drone operations. The airspace is divided into different zones: Green zone, where drones can be flown; red zone, where drones can’t be flown; and yellow zone, where drones can be flown but with permission.

With this, many tech companies and startups have set off to create drones as a new delivery alternative.

Also read: Centre scraps requirement of drone pilot licence after banning drone imports

Earlier, Zomato successfully completed test deliveries of food in India. They tested a drone carrying a payload of 5 kg that covered 5 km in 10 minutes. The food delivery chain aims to deliver food to customers in less than 15 minutes through drones in future. 

During the COVID-19 crisis, the Telengana government launched the ‘Medicine from the Sky’ project, in which a drone carried a box weighing 12 kg of medicines and 20 vials of vaccines over 6 km in five minutes, reported The Deccan Chronicle.   

Also read: This drone tech company aims to be the leader in the enterprise space

Earlier in the year, Sky Air Mobility signed an MoU with the Himachal Pradesh government to deliver vaccines and medicines to the rural parts of the state.

Swiggy has recently invited drone service companies via a request for proposal (RFP) or bids to expedite drone delivery of grocery and essential items in several cities for a period of six months. The period for bidding started from February 22, 2022 and submissions close on March 2. The food delivery service had earlier conducted successful tests with ANRA technologies. 

Also read: Blue Dart buoyant on successful drone delivery trial of vaccines; bets on express logistics, e-commerce

Zypp Electric, that currently provides last mile delivery services through electric bikes, also announced that it will be rolling out drone delivery services in  Bangalore, Hyderabad, Mumbai, Pune, and Delhi-NCR.

Even big companies like Reliance Industries are eyeing a share of the market.

With strong motivation from companies and government support, drone deliveries in India are set to take off. “Drones are a frontier technology that can be used to access otherwise inaccessible areas. India is all set to become the drone hub of the world by 2030,” Civil Aviation Minister Jyotiraditya Scindia said in a Deccan Chronicle report.

Also read: Drones are set to soar in the sky as govt provides the ideal launchpad

However, using drones in urban areas will require meticulous planning of routes and paths, performing pre-flight checks, scouting, and other systems will need to be put in place.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Funding Rundown: Reliance takes 26% stake in Dunzo for $200 mn, Bombay Shaving Company bags Rs 160 cr & Chalo eyeing $200 mn fundraise, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reliance Retail picks 25.8% stake in Dunzo, leads $240 million in hyperlocal delivery startup

Reliance Retail has bought a 25.8 percent stake in Dunzo, leading quick commerce player, for $200 million as it looks to expand its presence in the online grocery delivery business. Dunzo raised $240 million in its latest round led by Reliance Retail, existing investors Lightbox, Lightrock, 3L Capital and Alteria Capital.

The funding will help to further Dunzo’s vision to be the largest quick commerce business in the country, enabling instant delivery of essentials from a network of micro warehouses. It will also expand its business-to-business (B2B) business vertical to enable logistics for local merchants in Indian cities.

Dunzo is currently present in seven metro cities and is looking to use the money to expand to 15 cities. Dunzo also has an instant grocery delivery model called Dunzo Daily, where it competes with players such as Swiggy Instamart, Blinkit and Zepto. Dunzo Daily, it said, is seeing 20 percent week-on-week growth.

“With this investment from Reliance Retail, we will have a long-term partner with whom we can accelerate growth and redefine how Indians shop for their daily & weekly essentials. We’re excited by the traction and velocity that Dunzo Daily has achieved and over the next 3 years, we aim to establish ourselves as one of the most reliable quick commerce providers in the country,” said Kabeer Biswas, CEO and co-founder, Dunzo.

Also Read: India Inc raises over Rs 9-lakh crore through equity, debt issuances in 2021

In addition to this investment, Dunzo and Reliance Retail will also enter into certain business partnerships. Dunzo will enable hyperlocal logistics for the retail stores operated by Reliance Retail, further adding to Reliance Retail’s omni-channel capabilities. Dunzo will also facilitate last-mile deliveries for JioMart’s merchant network, it said in a statement.

“Through our partnership with Dunzo, we will be able to provide increased convenience to Reliance Retail’s consumers and differentiated customer experience through the rapid delivery of products from Reliance Retail stores. Our merchants will get access to the hyperlocal delivery network of Dunzo to support their growth as they move their business online through Jio Mart,” said Isha Ambani, director, Reliance Retail Ventures.

Bombay Shaving Company bags Rs 160 crore; Rs 300 crore additional fundraise, IPO & aggressive M&A strategy on the cards

Direct-to-consumer grooming and personal care startup Bombay Shaving Company (BSC) has bagged Rs 160 crore in a Series C round of funding which was led by a local hedge fund, Malabar Investments. The funding round also saw participation from Patni Advisors, Singularity AMC, and other HNIs.

The fresh investment comes 11 months after the company raised Rs 45 crore from UK-based consumer goods giant Reckitt. The round also saw an ESOP buyback and early investor exits worth Rs 45 crore. Founded in 2016 by former McKinsey & Co consultant Shantanu Deshpande, BSC started as a D2C men’s shaving and grooming products startup.

However, in 2010, the company forayed into diverse hair removal and hair care categories including a women’s hair removal range, which now accounts for nearly 25 percent of the firm’s total business and is its biggest bet. With this fresh influx of funding, BSC is looking to expand its portfolio of personal care and hair removal products. The company is also aiming to scale operations to Rs 500 crore top line with omni-channel presence in the next two years.

Also Read: Neo-bank Jupiter gets Rs 641 crore funding led by Tiger Global, Sequoia

“We will scale our store presence from 50,000 to 200,000 selling points across India and aim to grab a 15 percent + share in hair removal in these stores. We also have a pipeline of 30+ innovative products in 2022 and are keen to deeply invest in the brand as well,” said Deepak Gupta, chief operating officer, BSC.

The firm said it will also expand its international presence, invest in brand building and hire talent across positions. The investment will further bolster the brand’s ambition to deliver 10X growth in the next five years, it said in a statement. BSC also intends to acquire brands in adjacent categories and content platforms and said it is in advanced talks to raise additional Rs 300 crore for acquisitions.

What else is on the cards for the company in 2022? A possible IPO in the works? Commenting on this, Shantanu Deshpande, founder and CEO of BSC said, “We are singularly focused on building a brand that owns hair removal. As we scale from Rs 150 crore to Rs 500 crore and Rs 1,000 crore, we needed an investor group that could guide us on building an IPO-able company.”

Chalo looks to raise $200 million: Report

Transport solution startup Chalo is looking to raise $200 million, or around Rs 1,500 crore, to invest in technology and expand in India and in a few other countries, as per a report by the Economic Times. The fundraise could value the daily commute solutions startup at about $800 million, or Rs 6,000 crore, sources told ET. The company has reached out to some of its existing investors about the fresh investment plans, it added.

Also Read: 10-minute grocery delivery startup Zepto bags $100 million in Series C round, valuation jumps to $570 million in 5 months

“The plan is to invest in technology that would make using public transport convenient for young Indian consumers. If it’s possible to track the arrival time of Uber or Ola and how long it takes to reach one’s destination, then that can be done for public transport as well,” another source told ET. The company had raised $40 million, or Rs 297 crore, in October 2021. The fresh investment is set to provide an exit for some of the early investors in the company, the report added.

Green Tech packaging startup Bambrew bags $2.35 million in Pre-Series A round

Packaging startup Bambrew has secured $2.35 million in pre-Series-A funding led by Blue Ashva Capital and Supack Industries. The round also saw participation from Mumbai Angels and other angel investors. As per the firm, the fresh capital will be deployed to source green packaging, boost supply, expansion in multiple cities and investment in research and development of new sustainable materials.

Over the past two years, the company claims to have seen 50x growth and is now looking to increase its footprint and supply capacity across metros like Delhi, Mumbai, and Kolkata, as well as global markets including the US, Europe, and the Middle East.

Fintech startup LivFin gets $2 million from BlackSoil in venture debt

SME-focused fintech platform LivFin has secured $2 million venture debt from alternative credit platform BlackSoil. The company has raised over $35 million in debt from more than 15 lenders to date. According to a statement, the startup plans to disburse over $85 million in the financial year 2022-23.

LivFin is a fintech NBFC that provides supply chain finance to mid-to-large corporates by setting up programmes to lend to their suppliers, vendors and distributors, dealers, retailers through an ‘Anchor’-based financing model. The company is backed by SAR Group promoters and has attracted investments from German DFI – DEG. It has disbursed over $285 million to date and there have been no write-offs, the firm added.

Courseplay raises Rs 3 crore from Inflection Point Ventures

SaaS-based employee growth enablement platform Courseplay raises Rs 3 CR in a Seed funding round led by Inflection Point Ventures. The funds raised will be used to focus on customer acquisition and bringing new AI-powered capabilities to the market. The company will continue to expand operations across India, Southeast Asia, and the Middle East, it said in a statement.

“The last year has been special for us at Courseplay, and we are looking forward to commencing our next stage of growth. We are ready to capitalise on the wave of digital transformation and accelerate our expansion plans across emerging markets like India, Southeast Asia and the Middle East,” said Arjun Gupta, founder and CEO, Courseplay.

Courseplay provides end-to-end solutions in training delivery, employee engagement, workflow automation and impact measurement. In 2020, the startup claims to have engaged almost 400,000 employees across India, Southeast Asia, and the Middle East.

Quantum tech firm QNu Labs raises undisclosed sum from Speciale Invest and others

Quantum-safe cybersecurity technology company QNu Labs has raised an undisclosed amount from deeptech venture capital firm Speciale Invest.
WAOO Partners LLP and another venture capital fund along with marquee angel investors and promoters also participated in the funding round.

QNu Labs plans to utilize the investment for extensive R&D advancements, extending products and technology to a wider customer base through key Go To Market associations in the US and Europe and building partnerships for Satellite-based Quantum Key Distribution (QKD) technology, it said in a statement.

The company has plans to hire seasoned product and technology industry experts to strengthen their core team extensively. QNu Labs said that it plans to cater to sectors including defence, government, healthcare, financial institutions and telecommunications among others.

Founded in 2016 by Sunil Gupta and Srinivasa Rao Aluri, the company provides cybersecurity solutions to safeguard organisational data on the internet, in data centres and in the cloud.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Reliance Retail buys 25.8% in Dunzo for $200 million

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Grocery delivery lessons that Swiggy learnt, and why Zomato failed

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Two months after announcing that it was launching grocery delivery for the second time, Zomato has shelved the plans and will stop the service from Friday, September 17. Zomato had briefly run grocery services last year as well, at the beginning of the COVID-19 pandemic, when food deliveries had fallen.

The company has been operating the 45-minute grocery delivery business on a marketplace model, letting customers order from neighbourhood stores.
But in a letter to grocery partners recently, Zomato acknowledged poor customer experience and “gaps” in the marketplace model, stating that “store catalogues are very dynamic, and inventory levels change frequently.”

The marketplace model depends on prompt response from partners such as kiranas, supermarkets and other grocery partners for the order fulfilment.

In fact, rival Swiggy had also launched a marketplace-based grocery delivery pilot in some cities such as Bengaluru two years ago, under the ‘Swiggy Stores’ vertical. However, they too had to pull the plug on the service due to below-par customer experience.

“The marketplace model relies on partners such as kiranas and supermarkets to continuously update their inventory database, to ensure that the products being ordered by the customers are available at the time. Swiggy had found that it was lacking in several partners and hence decided to stop the pilot,” a person aware of the developments told CNBC-TV18.

Also Read: Why Zomato chose to exit the online grocery business

However, just a year later, in 2020, Swiggy launched Instamart on a new model – dark stores.

Dark stores are local fulfilment centres distributed densely in cities for fast delivery. These could either be warehouses or even local retail stores where FMCG products and fresh produce are stocked.

Grocery delivery is a tricky, low-margin business and the model that seems to be working out for several companies is the dark store format, which is being followed by the likes of Swiggy for its Instamart business, Dunzo, and Grofers.

Swiggy, as per sources, has expanded its Instamart service to over 10 cities now, including the leading metros, where it now offers grocery delivery between 15-30 minutes.

“Swiggy learnt from its first pilot on what not to do in grocery delivery and launched Instamart last year on the dark store model which offers more control and better customer experience,” the person cited above added.

Swiggy did not offer a comment.

For food delivery companies, the presence of a large number of feet on street also works well for grocery. As per industry members, the timings of people ordering groceries and ordering food do not usually coincide, thus letting these companies utilise their manpower effectively, while also giving more earnings to the delivery partners.

Competition

Grofers has also been aggressively marketing its 10-minute grocery delivery service, and founder Alibnder Dhindsa last month stated that they have 60+ stores in Delhi and 20+ stores in Gurgaon to facilitate the express deliveries.

Zomato is now betting on Grofers, in which it made a $100 million investment earlier this year for a 10 percent stake, and sources say there could be a move to make a significant acquisition in the future.

“Grofers has found high quality product market fit in 10-minute grocery and we believe our investment in the company will generate better outcomes for our shareholders than our in-house grocery effort,” the company said in a statement.

Hyperlocal delivery platform Dunzo also entered into online grocery space, with its offering Dunzo Daily in Bengaluru, through which it will deliver essentials in 19 minutes.

Dunzo is using a network of mini-warehouses across neighbourhoods to offer the quick deliveries.

Other models

Another model for grocery delivery is where a few players have tied up with large retailers to fulfil orders for them.

Bengaluru-based Goodbox says it has been working with several large independent grocers in Bengaluru for 2-hour deliveries, and also has 15 stores currently on a 30-minute delivery pilot.

“We are working with supermarkets only and not kiranas since the former are better inventorised and also get higher average order value of around Rs 1000 compared to Rs 150 that kiranas get,” said Abey Zachariah, cofounder and CEO of Goodbox.

“Retailers understand customer choices well, and we help with the technology to connect customers,” he said.

“We have been able to break-even across most stores,” said Zachariah.

According to Redseer, quick commerce is estimated to touch $0.3 billion in CY2021 and is expected to grow 10-15x in the next 5 years, to become $5 billion by 2025. ​

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow