Bengaluru-based business-to-business (B2B) ecommerce unicorn Udaan has fired close to 120 employees, just within a week after scooping up $340 Mn in its Series E funding round.

Although, it could not be ascertained which verticals were impacted by the layoff, but as per Moneycontrol’s report, the downsizing has majorly affected staff across marketing, finance and operations.

Confirming the development to Inc42, an Udaan spokesperson said that the company is working towards providing all requisite support to the impacted employees, which includes medical insurance and compensation package.

“Over the last few years, we have made significant investments to build a solid and sustainable business. We believe in efficiency as a driver of profitable growth and are continuously making efforts to enhance efficiency, grow business sustainably and further improve customer experience,” the spokesperson said.

“We have already made significant progress in our journey towards building a profitable business and continue to make relevant interventions to our already proven business model, while remaining customer-centric and agile. However, these interventions have also resulted in some redundancies in the system,” the spokesperson added.

Founded by Vaibhav Gupta, Sujeet Kumar and Amod Malviya, Udaan enables supply chain and logistics operations focused on B2B trade. It claims to enable daily delivery across over 1,000 cities and 12,500 pin codes through udaanExpress. It counts the likes of Lightspeed, Microsoft and Tencent among its backers. 

Last Thursday, the company raised fresh capital led by UK-based savings and investment firm M&G Prudential, with participation from its existing investors Lightspeed Venture Partners and DST Global.

Udaan plans to use these funds to further strengthen customer experience, market penetration, and strategic vendor partnerships, and to reinforce long-term supply chain and credit capabilities.

Earlier, Udaan conducted operations with a nationwide scope but has recently opted for decentralisation. Each warehouse now houses multiple products spanning categories such as FMCG, Food, Lifestyle, etc, as per the report.

In the past, the FMCG team operated on a national level; however, the new approach involves organising operations on a cluster basis. This means that distinct teams will be assigned to different clusters, each responsible for overseeing all products within their designated cluster, regardless of categories.

In FY23, Udaan saw its operating revenue shrink by 43% to INR 5,609 Cr from INR 9,897.3 Cr in the previous fiscal year.

The post Udaan Fires 120 Employees Within A Week Of Raising $340 Mn appeared first on Inc42 Media.

IPO-bound ecommerce furniture startup Pepperfry posted a marginal decline in its net loss in the financial year ended March 31, 2023. The Mumbai-based startup’s net loss narrowed 3% to INR 187.6 Cr in the financial year 2022-23 (FY23) from INR 194 Cr in the previous fiscal year.

Founded in January 2012 by late Ambareesh Murty and Ashish Shah, Pepperfry sells a wide range of furniture and other home products through its website, ecommerce marketplaces, and offline stores. 

The startup’s operating revenue rose 10% to INR 272.3 Cr during the year under review as against INR 246.9 Cr in the previous fiscal year.  

Pepperfry primarily generates revenue from the commission it earns by connecting customers with the merchants on its website. The startup earned INR 241 Cr from this in FY23, an increase of 7.4% from INR 224.4 Cr in the previous fiscal year.

Including other income, Pepperfry’s total income stood at INR 290.3 Cr, a jump of 10% from INR 264.3 Cr in FY22

Where Did Pepperfry Spent?

The startup’s overall expenses increased 3% to INR 474 Cr from INR 458 Cr in FY22.

Procurement Cost: Being an ecommerce marketplace, the startup’s biggest expense was the procurement cost. It spent INR 282 Cr on procurement in FY23, an increase of 36% from INR 207.4 Cr in the previous fiscal year.

Employee Benefit Expenses: Pepperfry’s employee benefit expenses rose 6% to INR 86 Cr in FY23 from INR 80.9 Cr in the previous fiscal year. Employee costs include salaries, provident fund payments, gratuity, among others. The small increase indicates that the startup’s headcount didn’t see a big rise this year. 

Advertising Expenses: While ecommerce marketplaces are known for spending big on advertising, Pepperfry managed to bring down its marketing expenses in FY23. The startup spent INR 106 Cr on advertising in FY23, a decline of 18% from INR 129.8 Cr in the previous year.

Pepperfry raised $23 Mn from its existing investors, including institutional investors and family offices, in September this year. It has raised around $300 Mn across multiple rounds till date and counts the likes of Pidilite, Goldman Sachs, Bertelsmann India, and Innoven among its backers.

Unfortunately, its cofounder CEO Murthy passed away in August this year. Shah later took the CEO role.

The startup, which competes against the likes of Urban Ladder, has been preparing for its initial public offering (IPO) since early 2022. It even converted itself into a public entity in May last year. However, like many other startups, it postponed its plans to go public considering the slowdown in the equity markets last year.

The post Pepperfry’s FY23 Loss Narrows Marginally To INR 188 Cr, Sales Up 10% appeared first on Inc42 Media.

You’ve crafted the perfect ad campaign, traffic is flowing in, but the conversions? They’re just not happening. It’s a marketer’s nightmare, isn’t it? This scenario is all too common in the digital marketing world, where the focus is often heavily skewed toward creating ads and driving traffic.

The Overlooked Half of Marketing: Conversion Rate (CR)

While attracting users is a crucial part of marketing, it’s only half the battle. The real challenge, and arguably the most critical aspect, lies in converting these visitors into customers. It’s not just about bringing them to the platform; it’s about making them stay, engage, and ultimately, convert.

Key Questions for Effective Conversion

To enhance your conversion rate, consider these pivotal questions:

• Ad and Landing Page Harmony: Does your ad speak the same language as your landing page? Consistency in messaging is key to not lose the user’s interest.
• Meeting User Intent: Is your landing page addressing the user’s intent? Understanding and answering their needs can significantly boost conversions.
• User Actions: Are visitors engaging in the way you intended on your page? Analyzing user behavior can provide insights for optimization.
• Content Strategy for Different Users: How does your content cater to new versus returning users? Tailoring the experience can lead to better engagement and conversions.

The Competitive Edge Of A High-Converting Landing Page

In today’s market, a landing page or product that converts better is not just an asset; it’s a competitive advantage. It’s the difference between a potential customer and a loyal one. The focus should be as much on converting the traffic as it is on generating it.

Your Role In The Conversion Journey

As a marketer, your role is to guide the user through a seamless journey from the ad to the landing page, ensuring each step is aligned with their expectations and needs. It’s about creating a cohesive experience that not only attracts but also convinces and converts.

Let’s shift our focus and redefine marketing success not just by the number of visitors, but by the quality of conversions. Together, we can bridge the gap between traffic and conversions, turning potential into profit.

Looking forward to hearing your thoughts and strategies on conversion optimization.

The post Beyond Ads and Traffic: Learning The Art of Enhancing Conversion Rate appeared first on Inc42 Media.

Have you ever felt overwhelmed by the constant barrage of promotional SMS messages on your phone? I certainly have. 

Just the other day, I was sifting through a sea of unread messages, all screaming for attention, and it struck me: Is this strategy effective?

The Reality Of SMS Marketing In India

The once-celebrated SMS marketing landscape in India is undergoing a transformation, with its effectiveness facing scrutiny. The click-through rate (CTR) has witnessed a sharp decline, dipping below 0.1%, raising concerns about the channel’s cost-efficiency. 

While the cost of sending an SMS remains relatively low at around 10 paise, the average cost per click (CPC) has soared to INR 100, creating a significant disparity. 

This imbalance is particularly concerning given the generally lower conversion rates observed on mobile devices compared to desktops.

A Closer Look At Customer Acquisition Costs

Imagine sending out a thousand text messages and only gaining ten new customers. That’s the reality for many businesses that rely on SMS campaigns to acquire new customers. 

With a conversion rate of just 1%, the cost of acquiring a customer (CAC) through SMS can reach a staggering INR 10,000 ($120). While this approach still holds value for some industries with high customer lifetime values, it’s essential to weigh the costs and benefits carefully before embarking on an SMS marketing campaign.

Who Still Benefits?

Financial Products: Considering the high referral bonuses offered by some banks for credit card sign-ups, a customer acquisition cost (CAC) of INR 10,000 can be justified.

Real Money Gaming Apps: While their low ticket size might suggest otherwise, their high user engagement and frequency make the high CAC worthwhile. This is because their loyal customer base brings in consistent revenue and repeat business, which ultimately justifies the initial investment in acquiring new customers.

Real Estate: In the real estate industry, the substantial transaction values make it easier to bear the higher customer acquisition cost.

The Vicious Cycle And A Possible Solution

This reliance on SMS marketing has led to a vicious cycle: more messages lead to lower click-through rates and higher CACs. Many, including myself, have turned off SMS notifications to escape this deluge. 

A potential solution? Increase the cost of sending promotional SMS. This approach, already adopted in several developed countries, could break the cycle, encouraging more targeted and thoughtful campaigns.

As we navigate the ever-evolving landscape of digital marketing, it’s crucial to reassess our strategies and adapt to changing trends. The current state of SMS marketing in India is a clear indicator that what once worked may not be as effective today. 

By initiating a dialogue on these issues, we can collectively steer towards more innovative, efficient, and user-friendly marketing practices that respect both the consumer’s space and the marketer’s budget.

The post Is SMS Strategy A Costly Mistake? appeared first on Inc42 Media.

Fintech company Infibeam Avenues has bought a 49% stake in Ahmedabad-based Pirimid Fintech for INR 25 Cr ($3 Mn) to strengthen its foothold in the fintech ecosystem. 

With the acquisition, Infibeam is looking to foray into the fast-growing capital market tech space.

“This move is in direct response to the surging demand in the thriving global capital markets for cutting-edge secured and zero latency AI backed software to streamline trading, research and investment processes,” the company said in a release.   

Pirimid, founded by Nirav Prajapati in 2017, specialises in developing customised capital markets and digital lending products, tools, services and workflows to meet specific client needs.

Infibeam said Pirimid is making significant strides in the digital lending sector with capabilities around modern loan origination systems, data sourcing and advanced business rule engine (BRE). 

The acquisition will allow Pirimid to leverage the expertise of Infibeam to develop innovative digital lending solutions.

With such solutions, Infibeam aims to streamline its lending process, offer faster and more efficient credit disbursement, enhance customer experience and improve risk management through advanced data analytics and AI algorithms.

Pirimid claims to have a client base of both global and domestic companies including Singapore Exchange’s BidFX, Bank of Baroda, and Lendingkart, among others. 

“Pirimid has built a robust product for capital markets stakeholders and this strategic investment opens up a compelling growth opportunity to capitalise on our existing digital payments and platform solutions, by creating a synergy with the capital market tech products,” said Infibeam’s managing director and chairman Vishal Mehta.

Meanwhile, Infibeam also announced the acquisition of 100% stake in Infibeam Avenues Saudi Arabia for Information Systems Technology. Co from its wholly-owned subsidiary Vavian International Limited to offer payment aggregation service in Saudi Arabia under its brand CCAvenue.

Founded in 2007, Infibeam is a listed company that offers comprehensive digital payment solutions and enterprise software platforms to businesses and governments across industry verticals. 

Its primary source of revenue is a payment gateway business through which it offers over 200 payment options to the customer merchants allowing them to accept payments through website and mobile devices in 27 international currencies. With over 8 Mn clients, the company claims to have processed transactions worth INR 4.5 Lakh Cr ($54 Bn) in FY23. 

The acquisition comes a month after Infibeam announced that it has sped up plans to establish an in-house ecosystem to fuel the company’s artificial intelligence (AI) ambitions. It said one of its subsidiaries has acquired a piece of land in Ahmedabad that will serve as the extension of Infibeam Avenues Ltd’s planned GIFT City AI HUB. 

Infibeam reported a 191% jump in its profit after tax to INR 38.3 Cr in the September quarter of FY24 from INR 13.2 Cr in the last year’s quarter. Operating income jumped 66% year-on-year to almost INR 790 Cr. 

The post Infibeam Avenues Acquires 49% Stake In Pirimid Fintech To Foray Into Capital Markets Space appeared first on Inc42 Media.

Bengaluru-based B2B ecommerce unicorn Udaan has raised $340 Mn in its Series E funding round led by UK-based savings and investment firm M&G Prudential, with participation from existing investors Lightspeed Venture Partners and DST Global.

The Series E funding round included a combination of fresh equity investment and the conversion of existing debt (convertible notes) into equity. 

“Udaan plans to use these funds to further strengthen customer experience, market penetration, and strategic vendor partnerships, and to reinforce long-term supply chain and credit capabilities,” the B2B unicorn said.

The unicorn said in a statement that the funding round is subject to regulatory approvals.

Earlier, media reports said in October that Udaan was in talks with M&G Prudential to lead an equity round. However, the reports said that the round was going to be a down round, with the startup likely to raise funding at a valuation of under $2 Bn. 

Udaan did not mention its post-money valuation and the fresh equity infusion in the statement.

In January last year, Udaan raised a $200 Mn debt financing round by issuing convertible notes to five new investors, including Tor Investment, Arena Investors and M&G.

Meanwhile, in the statement issued today, Udaan said it is well-funded and on course to hit profitability in the next 12-18 months, by when it is also aiming to go public.

Vaibhav Gupta, cofounder and CEO of Udaan, said, “Series E round strengthens our balance sheet and fully funds our business plan. It enables our continued journey of growth and profitability, positioning us well to be public-market-ready in the next 12-18 months. The regional-operated design will get us closer to our customers and make our operations more agile and efficient.”

The funding round comes a few months after the startup conducted a major restructuring of its operations. This September, Udaan merged the Essentials business, comprising FMCG, staples, and pharma categories, with the Discretionary business, which includes general merchandise, lifestyle, and electronics categories.

Talking about its new strategy, Udaan said it has seen ‘strong and steady validation’ of its multi-category cluster-anchored business strategy. “The company is now reinforcing it with a regional cluster-led operating organisation that enables strong execution capabilities, while promoting ownership and accountability at the regional level, to drive sustainable growth,” it added.

In FY23, the B2B ecommerce unicorn saw its operating revenue shrink by 43% to INR 5,609 Cr from INR 9,897.3 Cr in the year prior.

Founded in 2016 by Gupta, Sujeet Kumar, and Amod Malviya, Udaan enables supply chain and logistics operations focused on B2B trade. It claims to enable daily delivery across over 1,000 cities and 12,500 pin codes through udaanExpress.

Udaan has raised $1.8 Bn in funding and counts the likes of Lightspeed, Microsoft, and Tencent among its backers. 

The post B2B Ecommerce Unicorn Udaan Raises $340 Mn From M&G Prudential, Others appeared first on Inc42 Media.

Fashion ecommerce major Myntra has clocked a record high of 60 Mn monthly active users during the festive season, the company said in a statement on Thursday (December 14).

The company also claims to have added 75 Mn new app users this year with its loyal customer base growing by 100% year-on-year (YoY) in the last 18 months.

The Gen Z fashion category experienced a 2.25X YoY surge in demand on the platform. The segment saw a substantial 175% year-over-year growth in customers, establishing Myntra as the preferred destination for Gen Z fashion. 

Over the recent months, Myntra has rolled out various products and services, such as FWD and Myntra Minis, to engage GenZ customers and enhance the overall user experience on its platform.

Myntra’s objective is to draw in 10 Mn GenZ users and broaden its customer base within the next two years. As of 2022, Myntra boasts a customer base of 8.6 Mn GenZ users. Additionally, the platform aims to surpass 100,000 styles on FWD by the end of 2023, the statement added.

In May, Myntra launched FWD, an app-in-app feature designed for Gen Z. Myntra FWD provides a personalised experience to users through a ‘spot it get it’ format.

Further, its Beauty charter achieved a 3X market growth. Over the last three years, Myntra’s beauty portfolio has expanded by more than 4X, featuring a diverse and inclusive selection of over 1,500 brands and 90,000 SKUs. 

“…We’ve added the highest number of new users and new customers this year, whilst doubling our loyal-customer base. In our commitment to provide a delightful shopping experience to customers, we continue to make several strides and achieve major milestones,” said Sunder Balasubramanian, CMO, Myntra. 

In the last quarter, Myntra achieved a notable 70% year-over-year growth in the direct-to-consumer (D2C) space.

Additionally, Myntra Minis, a short-form video content offering, based on the reels format, witnessed 1 Mn daily views.

The company was among the first globally, to leverage ChatGPT and launch a feature to enhance product discovery with MyFashionGPT and also introduced AI-led features including Maya and MyStylist.

In the fashion ecommerce segment, Myntra competes with Reliance’s Ajio and Tata’s Tata CliQ, Nykaa Fashion, among others. New players such as Prosus Ventures, Accel-backed fashion startup Virgio are also entering the market, focussed on GenZ and millennials. As the competition intensifies in the market, the Flipkart-owned fashion retailer is looking at differentiating itself.

In October, Myntra concluded its festive sale, the Big Fashion Festival (BFF), which recorded around 460 Mn customer visits.

The post Fashion Giant Myntra Records 60 Mn Monthly Users During Festive Season appeared first on Inc42 Media.

During the recently concluded Big Billion Days Sale, Walmart-owned ecommerce major Flipkart launched an annual membership programme – yet again. The announcement of Flipkart VIP was not a rarity, though. Over the years, it came up with a handful of premium memberships and loyalty programmes, but they failed to compete with its arch-rival, Amazon India, and its flagship, Amazon Prime. 

Flipkart First, Flipkart Plus and Flipkart Plus Premium came and went without much ado. This year, Flipkart VIP was clubbed with its biggest online event to create maximum impact. But can it trump Amazon Prime at long last? 

Let us delve deep into their offerings to understand what value they bring to users and which is worth our money. 

Just like Alibaba’s Singles Day or the western world’s Black Friday sales (the latter is no longer a novelty in India), the country’s shopping frenzy peaks during Navratri, a hallmark celebration of Indian consumerism across states and communities. No wonder ecommerce behemoths like Amazon and Flipkart gear up with big deals, discounts and promotions to make the best of this mega-sales event. 

The critical importance of this festive season was best exemplified when, on 6/10/2014, Flipkart launched its first Big Billion Days sales, eyeing a target of INR 600 Cr. (Fun fact: 6.10 was the flat number in Koramangala, Bengaluru, where the company was set up in 2007.) The rest of the narrative is pretty well-known. The overwhelming online traffic led to technical failures, and eventually, Flipkart’s website and payment system crashed.

The narrative changed this year when Flipkart launched its annual membership, Flipkart VIP, on October 4, just before the Big Billion Days (TBBD) kicked off on October 8. The pricing is enticing, INR 499, compared to Amazon’s full-fledged Prime membership at INR 1,499 (it has other versions, but more on that later).

A look at the festive numbers puts Flipkart ahead in the competitive landscape. While the Amazon India site and app claimed 1.1 Bn visits, Flipkart claimed 1.4 Bn visits. Also, Flipkart Fashion played an important role in customer acquisition, bagging more than 44% of new users during TBBD.

According to consulting firm RedSeer, ecommerce platforms in India clocked a gross merchandise value (GMV) worth INR 47K Cr during the first week of the online festive sales. Last year, total GMV across ecommerce platforms was around INR 76K Cr, compared to a whopping INR 90K Cr+ estimated this year.

The Flipkart Group, including Flipkart, Myntra and Shopsy, led the race with a 63% market share in GMV, followed by Amazon. The group also led the field in volume play, followed by Meesho, with 25% of the total orders, up from 21% in the first week of the 2022 festive season sales. Amazon, however, disapproved the data collated by RedSeer.

However, competing with Amazon remains a formidable task for its peers. Going by the data revealed by Amazon India, the highest Prime sign-ups happened in a single day this festive season, along with the highest seller participation and 5K product launches from top brands. Interestingly, “This festive season, 80% of our customers who shopped came from tier 2-3 cities,” said Manish Tiwary, country manager, India Consumer Business, Amazon in a press statement.

All You Need To Know About Flipkart VIP & Other Loyalty Programmes

Although Flipkart VIP is the group’s third attempt to launch a paid annual membership (with two loyalty programmes in between), experts think it still lacks the Prime punch. Nevertheless, it may generate quick revenue without significant investments due to price advantage. But before comparing the pros and cons of Flipkart VIP and Amazon Prime, a quick look at VIP and its previous programmes will help us understand how Flipkart has evolved over the years.

How Flipkart VIP Stacks Up Against Amazon Prime

Before we assess whether Flipkart’s new VIP membership can compete with Amazon Prime and dent its fast-growing member base, here is a quick look at the key features offered by the ecommerce giants.

Unlike Prime, Flipkart VIP, as the name suggests, offers priority customer support.

Prime Membership provides free one-day delivery on 4 Mn+ products, ad-free access to Prime Video and Prime Music, unlimited 5% cashback (for Amazon Pay Credit card holders), Prime Reading, Prime Gaming, including monthly free games and exclusive in-game content for popular titles, early access to lightning deals and additional 10% discount on certain products.

Flipkart VIP also ensures fast and free delivery, early access to lightning deals and discounts. Although it does not provide streaming services like Prime, it has a few unique benefits such as a Welcome Box with assorted products, the ability to cancel/reschedule domestic flights booked on Cleartrip for INR 1 (can be used only once during the membership period) and an additional 3% discount of up to INR 3K on Cleartrip hotel bookings.

While Prime offers cashbacks on flight bookings done via Amazon Pay card holders it lacks the cancellation feature that VIP offers. 

A Close Look At Flipkart’s ‘VIP’ Targets 

Flipkart has consistently focussed on the fast-growing non-metro market where aspiring customers seek new products but have limited access to the ecommerce ecosystem. According to the company, it witnessed close to 50% user growth after the pandemic lockdowns, with Tier III+ regions accounting for nearly 65% of the newfound growth. Even in 2023, the first day of its festive sales saw more than 60% of the orders coming from Tier I, II and III cities.        

Nevertheless, Flipkart’s VIP programme aims to deepen its position across the key cities. Although the company has declined to comment on its shift in focus, some ecommerce analysts think it will be essential if Flipkart wants to emulate Prime-like delivery schedules.

“Extending free and fast deliveries in Tier III+ locations is difficult, as it will increase logistics costs in the first place,” said an analyst from Gartner who did not want to be named. “Add to that is the average return rate that would further increase the cost. No wonder, Flipkart had initially offered return pickup within 48 hours in 4 cities – Delhi NCR, Bengaluru, Mumbai and Kolkata as part of VIP programme.

That’s why Prime is hugely popular in metros, but in smaller cities, Amazon’s OTT service [and not fast deliveries] lures people to subscribe.” 

Though this festive season, Amazon claimed that more than 65% of Prime members who shopped during the festive season were from tier 2 & 3 cities/towns. 

However, the average volume as value of transaction per customer is still significantly higher in metro cities.

Of course, some users from non-metros may opt for the VIP programme as they want faster delivery. But here is the catch. Be it Prime or VIP, fast deliveries or quick pickup for returns, say in 48 hours, are rarely available in Tier III and IV cities.

Moreover, Flipkart VIP (or any premium membership) is meant for frequent shoppers with deep pockets. Paying membership fees and delivery charges (when required) is costly, and not all buyers can afford it, said Satish Meena, advisor to Datum Intelligence.

As the success of these programmes is underpinned by frequent buying and buying of more categories (volume) as well as big-ticket purchases (value) from metros, it makes sense for Flipkart to target customers from Tier I and II cities only to grow its VIP member base. 

According to Meena, non-Prime shoppers on Amazon have an average order value (AOV) of INR 1,000-1,200, while Prime members have an AOV of INR 1,800-2,000, nearly double the spend of a regular shopper. Understandably, Prime generates maximum profit for Amazon in India and globally.

Flipkart VIP must target this customer segment to win the battle royal. Although Amazon Prime enjoys a strong presence in metro cities, many Prime members continue to use other platforms to buy stuff not sold on Amazon. Flipkart VIP can make a dent if it can create a go-to shopping hub at one-third the charge. 

How The Titans Battled It Out Over The Years 

Flipkart pioneered paid annual membership with Flipkart First in 2014, offering free and fast delivery for INR 499. The all-new programme included a host of benefits such as free shipping for all orders, free ‘in-a-day’ guaranteed delivery, guaranteed same-day delivery at discounted pricing, a 60-day replacement policy, priority customer support and more. The company also gave away 75K free memberships to attract online shoppers for whom it was a novelty. 

The narrative changed in 2016 with the launch of Amazon Prime at the introductory price of INR 499. The ecommerce giant introduced cheaper same-day deliveries, a better cancellation policy and, most importantly, access to Prime Videos. It was an added attraction as we had yet to witness the OTT tsunami of the pandemic days. 

Flipkart quietly discontinued its membership programme, but not for long. It relaunched Flipkart First in 2017, primed with an entertainment pack that offered a three-month Hotstar subscription at a discounted price of INR 99 and free premium membership for the music streaming platform Gaana.com. Its core offerings included free and fast delivery and free cancellations for a limited number of flights booked on MakeMyTrip.   

Despite these measures, the relaunched Flipkart First folded up. In contrast, Prime became such a hit that Amazon could increase the membership fee from INR 499 to INR 999. A full-fledged Prime Membership currently costs INR 1,499, while a Prime Lite version is available for INR 999, with slight tweaks in OTT services. 

When Flipkart launched its VIP programme in October this year, it played the price card and kept the introductory fee at INR 499. It was not a bad strategy. If 55% of Prime members subscribe for free and fast delivery, Flipkart should be able to lure them by offering the same convenience at 66% less. Also, member acquisition would be easy due to brand awareness and proximity. Most of these buyers already have Flipkart accounts, although they use the platform less frequently.  

Amazon took note of the price play. At the time, it was offering Prime and Prime Lite, but soon after the VIP launch, the ecommerce major came up with Prime Shopping at INR 399, a strategic price point aimed to blow Flipkart’s advantage.

Although pricing can be a game-changer in the Indian context, the impact of ecommerce companies goes far beyond that. Inc42 has spoken to many analysts and industry experts who think Flipkart still has a long way to go to compete with Prime. The reason? Amazon offers an overarching ecosystem across the realm of shopping and entertainment, never matched by Flipkart. Despite high membership fees that could have backfired in a price-conscious market like India, bundle pricing attracts customers as they have to pay less than the total cost of buying individual services included in the package. 

Consider this. Apart from giving access to its own content, Prime Video integrates popular OTT platforms such as Lionsgate Play, Discovery, BBC and Eros Now to offer bundled service that costs less than the total of those platforms’ standalone charges. Besides, one can access different genres in one place minus the hassles of multiple downloads and different payment schedules. This makes a huge difference for content lovers seeking convenience and variety.

According to a Datum Intelligence report, more than 50% of people opt for Prime Membership due to seamless access to Prime Videos, while 37% do it for the advantage of music streaming. These account for significant numbers, but Flipkart has not tried to service these segments yet.

The introduction of Amazon Fire TV Sticks (third-generation devices are available now) is another crowd-puller. The HD streaming device with Alexa Voice Remote includes TV and app controls, converts a regular television into a smart TV and can easily replace cable subscriptions. Amazon has sold 200 Mn+ Fire TV Sticks globally and claims to have sold the device across 90% of Indian pin codes. Although it has not revealed the India numbers, the pin code coverage underscores the depth and reach of its services, enhancing the scope for pushing Prime Membership in every nook and cranny.

Vaitheeswaran K, an ecommerce veteran and cofounder of Again Drinks, summed up the situation well. “Although Amazon has increased Prime membership fees several times, we are not overly concerned about the cost, primarily due to the experience it offers as an ecosystem,” he pointed out.

Why Flipkart VIP Lacks The Punch

Online shoppers could be in a fix trying to decide which membership programme would be worth their while in the long run. Meanwhile, here is a quick look at how some of the Flipkart VIP services fall short of Prime advantages. 

Customer Support and VIP Service Hit a Bump. Shortly after the launch, amidst the festive season, social media became inundated with complaints related to VIP membership services. Users expressed dissatisfaction with Flipkart, citing issues such as delayed delivery, return pickups exceeding 48 hours, and perceived lapses in prioritizing customer support.

Full refunds for flight tickets may not captivate users. Providing full refunds for domestic flight tickets that too only once will only appeal to a small segment – people who are frequent fliers.  

Welcome Box is a puzzle. The Welcome Box is as vague as possible, points out the analyst associated with Gartner. To start with, Flipkart says it will send the box anytime during the membership year, thus killing the excitement. Moreover, users do not know what to expect, which may lead to disappointment.

VIP lacks unique and differentiated services. Unlike Amazon’s broad ecosystem and extensive services, Flipkart VIP solely focuses on free and fast delivery, which is a given for most ecommerce companies. More importantly, Prime offers complementary products and services to push growth. For instance, any user of Fire TV will opt for Prime Membership instead of other programmes. On the other hand, Flipkart VIP struggles to provide unique and differentiated services not featured in its loyalty programmes.

Limited availability may hinder growth. While more than 65% of Prime members who shopped during the 2023 festive season were from Tier II and III locations (versus 50% last year), Flipkart VIP is touted to be available across Delhi-NCR, Bengaluru, Mumbai and Kolkata. However, many users from Delhi, Mumbai and Bengaluru have reported that the registration link is not working. 

So far, the entire exercise has been relatively low-key. The VIP subscription is not available online, and users who have contacted the support team have received little help. The team says the VIP programme is either selectively offered to users or might have been withdrawn. 

In today’s fiercely competitive business landscape, companies emulating each other find it difficult to come up with service innovation that will gain a competitive advantage. While Flipkart is grappling with similar challenges, its limited availability may further hinder it from reaching a wider audience. 

As the battle for supremacy in the Indian ecommerce space continues, Flipkart needs to recognise Indian customers’ unique nuances and turn those into cutting-edge opportunities. Otherwise, it will be a tortuous and uphill road as it tries to curb Amazon Prime’s overwhelming dominance.

[Edited by Sanghamitra Mandal]

The post Flipkart Looks To Upstage Amazon Prime Again: Will Its Revamped VIP Programme Be The Charm? appeared first on Inc42 Media.

Beauty ecommerce marketplace Purplle’s operating revenue more than doubled to near the INR 500 Cr mark during the year ended March 31, 2023. The startup’s operating revenue or sales stood at INR 474.9 Cr in the financial year 2022-23 (FY23), an increase of 116% from INR 219.8 Cr in FY22. 

Founded in 2012 by Manish Taneja and Rahul Dash, Purplle sells beauty products and appliances. It sells products of several D2C brands, including Plum, WOW Skin Science, mCaffeine, Maybelline and SUGAR Cosmetics, on its platform.

At INR 247 Cr, revenue from the sale of its products accounted for 51% of the startup’s operating revenue. This number stood at a mere INR 35.6 Cr in FY22.

Being an ecommerce marketplace, the startup also earns revenue through advertisement of products of other brands on its marketplace. Purplle earned INR 227.9 Cr from this in FY23, almost 48% of its operating revenue. This number stood at INR 184.2 Cr in FY22.

Including other income, total income surged 124% to INR 508.6 Cr during the year under review from INR 227.4 Cr in the previous fiscal year.

However, Purplle’s net loss grew 13% to INR 230 Cr from INR 203.6 Cr in FY22 despite the rise in its revenue.

Where Did Purplle Spend?

The startup’s total expenditure grew 71% to INR 738.3 Cr from INR 431.2 Cr in FY22.

Advertisement Expenses Zoom: At INR 266.5 Cr, advertising expenses accounted for 36% of Purplle’s total expenditure during the year under review. Ad spending grew 51% from INR 176.9 Cr in FY22.

Employee Benefit Expenses Double: The startup spent INR 170.5 Cr on employee costs in FY23, an increase of 100% from INR 85.1 Cr in the previous fiscal year. Employee benefit expenses include employee salaries, PF contributions, gratuity, and ESOP expenses. 

Procurement Expenses Surge: The startup’s procurement expenses increased over 500% to INR 82.8 Cr in FY23 from INR 12.5 Cr in the previous fiscal year.

EBITDA margin improved to -41.56% during the year under review from -84.9% in the previous fiscal year. On a unit economics basis, the startup spent INR 1.5 to earn every rupee from operations. 

Purplle has raised a total funding of $290 Mn till date and counts the likes of Premji Invest, Peak XV Partners, and Kedaara Capital among its backers. It entered the unicorn club in 2022 after raising $33 Mn in a round led by Paramak Ventures.

In December 2021, the startup acquired cosmetics and skin care brand Faces Canada.

Earlier this year, Purplle reportedly raised $50-60 Mn from Abu Dhabi Investment Authority (ADIA) in a round which was a mix of primary and secondary investment.

The post Purplle’s FY23 Sales Inch Closer To INR 500 Cr Mark, Loss Widens To INR 230 Cr appeared first on Inc42 Media.

Studies reveal that one in four Singaporeans dine out daily, while 80% opt for at least one restaurant meal every week. This shift away from traditional home-cooked meals has stemmed from broader socio-economic changes such as busy lifestyles, increased affluence and, most importantly, the rise of on-demand food delivery services riding the wave of ubiquitous digital tech and the smartphone economy.

But the dynamics of change are not limited to the island nation alone. In the past decade, India has witnessed a similar transformation in eating habits, driven by the rapid growth of the online food delivery segment. As mentioned by Statista, a Rakuten survey in December 2022 found that most Indian respondents aged 16-54 dined out at least once a week. 

Given the exponential growth across India, the online food delivery market volume is estimated to reach $81.9 Bn by 2028, growing at a CAGR of 19.7% during 2023-2028. However, this surge would not have been possible without the sturdy industry stalwarts – Zomato and Swiggy – who lay the groundwork for the food-delivery ecosystem.

Both leverage the techvantage of a digital-first ecosystem to cater to the diverse Indian food palate but compete fiercely for a bigger market share. Zomato has maintained a sizable lead over its closest competitor in terms of execution. But is Swiggy lagging far behind or breathing down its rival’s neck?

An assessment of the year gone by (2023) and the outlook for 2024 will reveal these interesting ground realities and the shape of things to come.    

Is It Zomato All The Way In 2023?

The narratives of Gurugram-based Zomato, now a listed company, and its unlisted peer Swiggy from Bengaluru are not analogous. However, much of their growth is the direct outcome of innovative marketing strategies (more on that later) and lucrative sales tactics such as discounts, cashback deals, exclusive offers and attractive loyalty programmes.

These sureshot bets (to say nothing about their expansive reach in the pan-India restaurant market) have lured gastronomes to online food-ordering over the years. Subsequently, engagement has increased and customer loyalty has split into two distinct camps. (Take a look at the app download comparison.)

The Zomato-Swiggy face-off in the food-delivery space has been accelerated by sustained investor interest. Together, these industry leaders have raised $5.4 Bn for strategic acquisitions, cloud kitchens and implementation of value-added services. More importantly, their deep pockets and industry dominance slowly squeezed out other players from the arena.

For instance, ride-hailing giant Uber India’s food delivery business UberEats was acquired by Zomato in early 2020, while Ola completed the 100% acquisition of Foodpanda (India) in early 2022 from Germany-based Delivery Hero.  

The outcome: The industry has a duopoly now where the arch-rivals claim nearly identical market shares in India. However, Zomato maintained its lead with a 54% market share compared to Swiggy’s 46% in the food delivery space as of H1 2023, according to reports.

Although it has not been a smooth ride for either of the companies in 2023, Zomato has taken the lead in several critical areas to hold strong as an icon of India’s post-pandemic gig economy boom. Here is a look at how the companies have fared this year.   

Zomato Tops The Consumer Sentiment Survey

According to Inc42’s Consumer Sentiment Survey 2023, done in collaboration with Clootrack, Zomato emerged as the preferred online food delivery service among Indian consumers.

The conclusion was based on a Clootrack analysis of more than 24K user reviews on the Apple App Store and Google Play Store between January 1 and November 22. The findings underscore Zomato’s stronghold and positive reception in the highly competitive food aggregation, online ordering and delivery market.

The survey also revealed that key success metrics, including offers and discounts, food quality, customer service, delivery time and interactions with delivery partners, received high scores for Zomato on a scale of 1-5, where 1 signified the lowest and 5 represented the top score for consumer experience.

Zomato Sweeps The Field In App Downloads

According to an Inc42-AppTweak analysis, the combined monthly app downloads of Zomato and Swiggy averaged 7.6 Mn and reached a total of 83.5 Mn between January and November 2023. Zomato led with 47.5 Mn downloads (56.9%), while Swiggy recorded 36 Mn (43.1%).

It is worth noting that the Swiggy app covers its grocery services (Instamart) and restaurant deals and discovery (Dineout) vertical besides food delivery.

Although Zomato has integrated UberEats’ operations with its own to strengthen the food delivery business, its quick commerce platform Blinkit (formerly Grofers, which was acquired in 2022) operates via a separate app. It has seen 14 Mn downloads in 2023 (excluding December data), and combined with Zomato’s download numbers, puts the parent company in a superior position.

But Financial Dips, Critical Exits – Who Has Weathered It Better

Zomato faced a challenging start to 2023, marked by the departure of its CTO, Gunjan Patidar. A subsequent 2% dip in its share prices was followed by an 8% decline, hitting its lowest since July 2022. Despite the setback, Zomato’s consolidated revenue for Q3FY23 (October-December 2022) surged by 1.75x to INR 1,948 Cr, but the foodtech giant saw a 5x spike in losses, reaching INR 346.6 Cr. 

Not only this, it liquidated its subsidiaries in Jordon, Czech, Portugal while in process of shutting operations in the Philippines and Indonesia with active operations only in India and the UAE. 

Zomato had also placed early bets on non-metro markets to widen and deepen its reach, a cash-burning exercise as it would not provide immediate results. However, given the global slowdown in 2023 due to macro headwinds, the foodtech unicorn focussed on improving its financial performance.

Zomato hit overall profitability in Q1 (April-June 2023) and Q2 (July-September 2023) of the current financial year and reintroduced its Gold loyalty programme in January, which has now surged to 38 Lakh members.

Although it is not strictly contextual (Swiggy is not a listed company), Zomato stock has given excellent returns in 2023 on a YTD (year-to-date) basis. After some dismal performances post its IPO, the stock has emerged as a multibagger and gained around 103% as of November 2023.

We have not considered the market loss it suffered on December 11, 2023, as the company was under pressure after SoftBank offloaded its remaining stake in Zomato.

Swiggy, too, grappled with persistent losses, high-profile exits and diminished investor confidence ahead of its impending IPO. 

The Bengaluru-based foodtech unicorn is yet to announce its FY23 earnings, but it reported a loss of INR 3,628.9 Cr in FY22 with an operating revenue of INR 6,119.8 Cr. It also restructured the business and adopted cost-cutting measures, resulting in the termination of 380 employees.

Key people, including Karthik Gurumurthy (Senior Vice President and Head of Swiggy Instamart), Dale Vaz (CTO), Anuj Rathi (SVP, Central Revenue and Growth ), Ashish Lingamneni (VP, Marketing) and Dineout cofounder Vivek Kapoor, were among its high-profile exits.

To add to its woes, the US-based investment firm Invesco marked down Swiggy’s valuation twice earlier this year, eventually slashing it to $5.5 Bn from an earlier $10.7 Bn. Swiggy reached the decacorn valuation when it raised $700 Mn from the US investor in 2022.   

Things took a turn for the better when Swiggy CEO Sriharsha Majety claimed that the foodtech unicorn’s food delivery business achieved profitability as of March 2023, excluding ESOP costs. Investors also displayed renewed confidence, with Invesco marking up Swiggy’s valuation by nearly 43% to $7.85 Bn and Baron Capital internally raising the valuation by 33.9% quarter-on-quarter to $8.54 Bn.

Creative, Relatable & Witty: How Zomato Campaigns Capture Foodies  

Innovation-driven marketing is a major growth driver in today’s business scenario, and Zomato has vroomed into that space. Take, for instance, the age-old SEO tools consistently driving traffic 24×7. According to traffic analyser Ubersuggest, Zomato ranks in India for 2,494,988 keywords as of August 2023, with monthly organic traffic amounting to 30,484,205, as mentioned in an IIDE (Indian Institute Of Digital Education) report. Although these figures are a tad lower than its SEO performance in February 2023, Zomato has outperformed Swiggy by 2.5 times.

However, the company has taken the cake in the social media domain.

Zomato and Swiggy are active on major social media platforms like Instagram, Facebook and X (formerly Twitter). As of November 2023, Zomato has 891K followers on Instagram, 1.9 Mn on Facebook and 1.5 Mn on X. Swiggy is a notch down, with 457K followers on Instagram, 999K on Facebook and 209K on X.

Zomato’s ability to attract and engage people on every medium can be attributed to its use of trendy and witty posts. For instance, a recent collaborative campaign with Blinkit tweaked a famous Bollywood dialogue, leaving people in splits. While the Blinkit billboard turned the original dialogue on its head and said: Doodh mangoge, doodh denge (Ask for milk, and we will deliver it), Zomato took a page from it and made a humorous addition: Kheer mangoge, kheer denge (Ask for kheer, and we will deliver it). 

Then there are other campaigns – the story of Raksha and Bandhan, Zomato vs Zomato and Humans of Zomato – which are equally intriguing and never fail to captivate consumers. A recent case study by IIDE also highlighted the food delivery giant’s effective strategy of creating witty and relatable content to enhance engagement and appeal to its audience.

Moreover, when Zomato’s founder and CEO, Deepinder Goyal, joins the upcoming season of the popular TV show Shark Tank India, the event can set social media on fire. The company will not let go of this opportunity to impress netizens.

As global customer reach is its primary objective, Zomato utilises every available digital marketing tool to understand the preferences of its target audience and cater relevant content. According to the digital marketing agency Ideatick, the company sticks to a creative marketing strategy to stay at the forefront of the industry.

That does not mean Swiggy is lagging. The company has earned industry acclaim for its skilful storytelling, exemplified by its famous campaign What’s In A Name, where it ingeniously weaves relatable stories around restaurant names. Swiggy typically looks at people’s hunger quotient to craft a comprehensive marketing strategy, epitomised by its timeless tagline: Craving Something?

It also captivates its audience with visually compelling content and relevant Indian topics, ranging from cricket to political unrest. Again, pictures of delicious food are promoted on Instagram to position the company as the go-to choice for those desiring delectable meals.

Recognising the fast-growing significance of memes in the new millennium vernacular, Swiggy infuses its distinct flavours into them to enhance customer interaction on social platforms. A notable example is its viral Vadapav meme on Instagram (posted in September 2022), which got more than 1.2 Mn views and 5K comments, showcasing the effectiveness of this approach.

2024 Outlook: Competitive Sparring On The Menu

According to a Statista report, the number of users across the meal delivery market in India is estimated to reach 346.6 Mn by 2028. This anticipated surge in user numbers has transformed online food aggregation and delivery into a highly lucrative segment, attracting new players and investors. 

So, it is not surprising that startups like Waayu and Thrive, as well as the Indian government’s ambitious digital commerce network ONDC, are challenging the longstanding duopoly of Zomato and Swiggy.

Interestingly, WAAYU distinguishes itself as a no-commission food delivery platform, backed by Bollywood actor and investor Suniel Shetty and supported by the Mumbai-based Indian Hotel and Restaurant Association (AHAR). The startup charges an introductory fee of INR 1K per month per outlet, which will be doubled a month after the onboarding. Restaurants also have to pay a one-time onboarding/setup fee of INR 3,650.

Another noteworthy contender is Thrive, a foodtech platform supported by Coca-Cola. It collaborates with restaurants for online and WhatsApp ordering, order management and setting up digital menus. Thrive claims to have a large restaurant base (exact number not disclosed) as it charges a 3% commission compared to 18-25% levied by Zomato and Swiggy.

The presence of ONDC makes the market more competitive as it has already onboarded more than 50K restaurants, signalling a tough time ahead for Zomato and Swiggy. 

As we approach 2024, the fate of these industry leaders remains uncertain. Only time will tell if they can operate in a stable market and grow sustainably, or it will continue to be a roller-coaster ride.

[Edited by Sanghamitra Mandal]

The post The 2023 Face-Off: How Zomato Powered Past Swiggy In The Food Delivery Race appeared first on Inc42 Media.

Audio products and smartwatch brand boAt has partnered telecom operator Reliance Jio to launch Lunar Pro LTE smartwatch, which uses the latter’s eSIM to provide connectivity.

The eSIM connectivity will enable users to make calls and send messages without their smartphones.

The smartwatch includes a built-in GPS for accurate activity tracking, making it suitable for outdoor enthusiasts engaged in activities like running or cycling. 

Additionally, the Lunar Pro LTE serves as a fitness tracker, featuring a heart rate monitor, blood oxygen monitor, sleep tracker, and alerts for sedentary behaviour to promote an active and healthy lifestyle.

The startup said that the smartwatch would be available for purchase in the coming weeks.

Commenting on the collaboration, a Jio spokesperson said, “This partnership with boAt is a testament to our commitment to innovation and our focus on providing our customers with the best technology.”

Founded by Aman Gupta and Sameer Mehta in 2015, boAt operates in the larger audio and wearables markets and sells products such as headphones, smartwatches and speakers. 

While boAt has established itself in the audio products market, the startup has been spending big to grab a large share of the Indian wearable market.

boAt claimed its revenue from the smartwatch segment grew over 50% year-on-year (YoY) in the financial year 2022-23 (FY23). 

Overall, its operating revenue rose 18% to INR 3,376.7 Cr in FY23 from INR 2,873 Cr in the previous fiscal year. Of this, the audio segment accounted for INR 2,350.8 Cr, while the revenue from the wearable segment stood at INR 901.5 Cr.

Despite the rise in its top line, boAt slipped into the red for the first time since its inception in FY23. The startup reported a net loss of INR 129.4 Cr during the year under review as against a net profit of INR 68.7 Cr in FY22.

It attributed the loss to the investments the company made in seeding the smartwatch category and scaling up the Make in India infrastructure. 

boAt began making its products in India in early 2022 and claims to have produced more than 30 Mn units in the country till date (over 15 Mn units in FY23). 

Last month, boAt said it is working continuously with Indian electronic manufacturing services (EMS) providers to streamline the processes and build a high quality manufacturing ecosystem in India.

Earlier, Gupta during Inc42’s ‘The D2C Summit 4.0’ said, “Pre-Covid, 0% of our products were made in India. Cut to 2023, and 70% of our products are now made in India.” 

The post boAt Partners Reliance Jio To Launch Smartwatch With eSIM Connectivity appeared first on Inc42 Media.

Walmart-owned Flipkart has launched its first grocery fulfilment centre in Bhubaneswar in Odisha to expand its grocery services.

The new centre will help the ecommerce giant cater to its online grocery customers across cities like Asika, Basta, Bhadrak, Cuttack, Dhanekal, Jagatsinghpur, Puri and Talcher within 24 hours.

Flipkart said that the new centre is expected to generate over 300 employment opportunities while providing nationwide market entry for numerous local sellers, MSMEs and small and medium farmers in the region.

“Odisha’s socio-economic progress is gaining momentum, and the role of e-commerce in our overall development is pivotal. In alignment with our state’s vision, Flipkart’s inaugural grocery fulfilment centre marks a significant stride toward the rapid advancement of local MSMEs and farmers,” said Odisha’s micro, small and medium enterprises minister Pratap Keshari Deb. 

He added that the initiative will enable the state’s MSMEs to access the pan-India market and establish stronger connections with consumers across the country. 

The new facility spans over 1.35 Lakh square feet, with a dispatch capacity of over 2.09 Lakh units a day. The facility is designed to cater to 16,000 orders a day, with a wide range of products belonging to both regional brands and popular brands from other states.

“As a homegrown company, we are dedicated to advancing technology and innovation to create a positive ripple effect across the Digital India landscape. As Flipkart ventures into the heart of Odisha with our first-ever grocery fulfilment centre, we recognize the state’s dynamic growth,” said Rajneesh Kumar, chief corporate affairs officer, Flipkart Group. 

Flipkart currently has 24 grocery fulfilment centres catering to more than 1,800 cities and 10,000 PIN codes across India.

In the grocery delivery segment, Flipkart competes directly with Amazon Fresh, Big Basket, Blinkit, Zepto, among others. 

The Walmart-owned company halted its grocery segment operations for a brief period in October due to high user traffic during the festive season sale. 

The latest development comes at a time when rival Amazon is also stepping up its grocery play. Earlier this year, Amazon Fresh said it has increased its presence to across 50 citie in India from just 22 cities a year ago.

The post Flipkart Launches First Grocery Fulfilment Centre In Bhubaneswar To Expand Service appeared first on Inc42 Media.

Hector Beverages, the parent company of refreshing drinks maker Paper Boat, saw its net loss widen 71% to INR 90.6 Cr in the financial year 2022-23 (FY23) from INR 53 Cr in FY22 due to higher cash burn.

The startup’s bottom line took a hit despite its revenue from operations rising 56% to INR 504 Cr during the year under review from INR 324 Cr in FY22.

Founded in 2010 by former Coca-Cola executives Neeraj Kakkar and Neeraj Biyani, Paper Boat sells fruit-based drinks in Indian flavours such as aam panna (raw mango) and jaljeera (spicy, tangy lemonade). Besides, it also sells dry fruits and healthy snacks, including chikki and aam papad.

Biyani exited the company in December 2022 and has launched a new skincare brand Asaya.

Paper Boat primarily earns revenue from sales of its products. In FY23, it sold fruit juices worth INR 474.9 Cr and food items worth INR 28.7 Cr.

Including other income, Paper Boat’s total income rose 56% to INR 508.5 Cr during the year under review from INR 325.1 Cr in the previous fiscal year.

Where Did Paper Boat Spend?

In line with the growth in its top line, Paper Boat’s total expenses rose to INR 599.1 Cr in FY23 from INR 378.1 Cr in the previous fiscal year.

Material & Stock Cost: While purchase of stock-in-trade rose to INR 205.2 Cr in FY23 from INR 149.4 Cr in FY22, cost of material consumed climbed to INR 182.3 Cr from INR 93.6 Cr in the previous fiscal year.

Employee Costs: Employee benefit expenses rose 30% to INR 54.7 Cr in FY23 from INR 42 Cr in FY22. Employee costs comprise salaries, PF contribution, gratuity, among others.

Advertising Spend: The startup, which is known for its nostalgia-infused campaigns, spent INR 13.2 Cr on advertising and sales promotion in FY23, a jump of 11% from INR 11.9 Cr in FY22.

Hector Beverages counts the likes of Sofina Ventures, Catamaran Ventures, and A91 Emerging Fund among its backers. The startup last raised a funding of INR 400 Cr ($50.1 Mn) from Lathe Investment Pte Ltd, which is owned by Singapore-based sovereign fund GIC, in 2022.

Paper Boat faces competition from the likes of Lahori and Raw Pressery in the Indian food and beverage (F&B) market. It also competes against FMCG giants such as Dabur, ITC, Pepsico, and new-age startups such as Beyond Water, and Coolberg.

The country’s F&B industry has been expanding by leaps and bounds and is further estimated to become a $156.25 Bn market by 2026.

The post Paper Boat’s FY23 Loss Surges 71% To INR 90.6 Cr, Revenue Crosses INR 500 Cr Mark appeared first on Inc42 Media.

Ecommerce has evolved from a novelty to an ingrained part of our urban lifestyle. It’s no longer just a trend; it’s a daily habit for many. As the ecommerce shopping experience has matured, it has settled into a standardised flow, providing a baseline of good user experience across most sites. The challenge now lies in rising above this baseline, in crafting a unique and compelling customer journey that not only captivates but also fosters unwavering loyalty.

In a landscape where everyone adheres to a common UX standard, where ease of use is a given, the question arises: How does one stand out? This dilemma is particularly pressing for challengers striving to carve their niche amidst giants like Amazon and Flipkart. The first challenge is to get the hygiene stuff right. Here are the set of nine core UX variables that have become non-negotiable in the ecommerce landscape today.

Core UX Strategies In Ecommerce

Streamlined Checkout Process: Make the checkout process as simple and intuitive as possible. Reduce the number of steps required and eliminate any unnecessary form fields. Provide clear instructions, progress indicators, and guest checkout options to minimise friction.

Clear Call-to-Action (CTA) Buttons: Use visually prominent and compelling CTA buttons throughout your site. Clearly communicate the desired action, such as “Add to Cart” or “Buy Now.” Use contrasting colours to make the buttons stand out and ensure they are easily clickable.

Social Proof and Reviews: Display customer reviews, ratings, and testimonials prominently on your product pages. Social proof helps build trust and confidence in your products or services, increasing the likelihood of conversions. Consider integrating social media feeds or real-time customer activity to showcase user-generated content.

Personalised Recommendations: Leverage user data and browsing behaviour to offer personalised product recommendations. Display related items, recently viewed products, or popular choices to help users discover relevant products more easily, increasing the likelihood of making a purchase.

Simple Navigation: Optimise your site’s navigation to make it intuitive and user-friendly. Use clear categories, filters, and search functionality to help users find products quickly. Implement breadcrumb navigation to provide clear paths and allow users to easily backtrack.

Compelling Product Imagery: Use high-quality product images to showcase your products from different angles. Incorporate zoom and 360-degree view options to provide a more immersive experience. Visual content plays a crucial role in capturing users’ attention and driving conversions.

Zero Distractions: Reduce clutter and eliminate unnecessary elements that might distract users from making a purchase. Maintain a clean and focused design that directs attention towards product information, pricing, and the checkout process.

Seamless Customer Support: Make it easy for customers to contact you and get assistance when needed. Implement live chat, chatbots, or a prominent customer support link to address any queries or concerns promptly. Providing excellent customer support can help build trust and overcome potential barriers to conversion.

Continuous Improvement: Remember, continuously monitoring user behaviour, conducting A/B testing, and gathering feedback are crucial to identify areas for improvement and optimise the user experience on your ecommerce site.

UX Strategies To Get An Edge Above Competition

These 9 UX strategies are extremely important but they will not get you ahead of your competition. All they will do is ensure that you stay on par with everyone else. 

However, if you want to go beyond getting the hygiene stuff right, here are three ecommerce UX secrets for maximising conversion & satisfaction that can give you an edge over your competition…

Go beyond FAQs

Bye FAQs, hello RAQs. RAQs are rarely asked questions: questions people don’t ask but are definitely concerned about. Unlike FAQs, RAQs take on the most uncomfortable user questions head on. Here is an example of an RAQ section, ZEUX Innovation designed for Art of Living to maximise online purchase of meditation programs…

Addressing uncomfortable or rarely asked questions can be very effective for building trust and increasing conversions on ecommerce sites because it… 

• Demonstrates Transparency and honesty: This in turn builds trust with potential customers who appreciate brands that are open and willing to address difficult or sensitive topics related to their products or services. 
• Handles Objections: Unaddressed concerns or doubts can create barriers to conversion. By proactively addressing uncomfortable questions, you help alleviate potential objections or hesitations that customers may have. 
• Creates Differentiation from Competitors: Many ecommerce sites only focus on addressing frequently asked questions (FAQs). By going beyond the usual and addressing uncomfortable or rarely asked questions, you differentiate your brand from competitors. 

Make Imagery More Human

As far as possible, include people (especially faces) along with product imagery to make a more emotional connection with customers. For example: showing a shoe on someone’s foot is more effective than just showing a shoe by itself.

The human element helps potential customers visualise themselves using the products, leading to increased interest and a higher likelihood of conversion. Showcasing people using or wearing your products, also provides context and demonstrate how the products can be used in real-life situations. This helps customers understand the scale, size, functionality, or fit of the products, making their decision-making process easier. Seeing products in action through the presence of people can enhance the overall understanding and desirability of the products.

Including people in your product imagery can help convey your brand’s identity and tell a compelling story. By showcasing individuals who represent your target audience or embody your brand values, you can establish a stronger connection with potential customers. This can create a sense of belonging and alignment, encouraging customers to choose your products over competitors’.

Leverage The Short Video Format

Go beyond imagery, leverage the power of short videos. It’s the medium of choice for the TikTok generation. Short videos have quickly emerged as the most common format for content consumption on social media platforms.

Videos can be more effective than static imagery in certain cases for ecommerce conversion. Videos allow you to showcase your products in action, demonstrating their features, functionality, and benefits. This can provide a more comprehensive understanding of the product compared to static images alone. 

Videos have the potential to captivate and engage users more effectively than static images. They can convey emotions, tell a story, and create a deeper connection with the audience. Videos can provide a 360-degree view of the product, giving users a better understanding of its appearance and dimensions. This can be particularly beneficial for products where visual details are essential, such as fashion items, home decor, or electronics.

A combination of both videos and high-quality images can often yield the best results, allowing you to cater to different customer preferences and provide a more comprehensive visual experience. 

The 1% Edge

In the ever-intensifying arena of ecommerce, the pursuit of success transcends the quest for a singular billion-dollar idea—it’s about harnessing the power of a billion one-dollar ideas. Enter the realm of RAQs, human imagery, and short videos—these aren’t just features; they’re the game-changers that can redefine the trajectory of any ecommerce platform.

In a landscape where good UX has become the standard, the strategic implementation of tactics that offer a swift yet impactful 1% edge becomes invaluable. It’s not just about keeping up; it’s about seizing those nimble opportunities that elevate your platform above the rest.

The post UX In Ecommerce: Strategies For Increasing Conversions And Customer Satisfaction appeared first on Inc42 Media.

As India’s internet economy is projected to grow to $1 Tn by 2030 from $175 Bn in 2022, DPI (digital public infrastructure) continues to drive this growth thesis, ensuring an inclusive and expansive digital future, a report by consulting firm Redseer Strategy Consultants said.

The open network for digital commerce (ONDC), one of the DPIs initiated by the government, is poised to push growth in the ecommerce space across sectors and potentially generate $250-300 Bn in GMV (gross merchandise value) by 2030, the report added citing its study.

Of the surveyed ecommerce merchants, 70% reported an increase in sales driven by higher unified payments interface (UPI) adoption and believe that by 2027, almost 90% of the ecommerce payments will be conducted through UPI. 

The study also found that both Aadhaar card and UPI emerged as the lifeline to both the general public and businesses since the pandemic period. Currently, UPI enables about 45% of the payments in the country, and has brought down all the geographical barriers. Interestingly, about 70% of the UPI user base hails from outside Tier 1 cities with 80% of the new users hailing from Tier 2 cities and surroundings. 

Redseer attributed this growth to the robust digital payments index (DPI) which includes  DigiLocker 2.0, Account Aggregator (AA), Open Network for Digital Commerce (ONDC), Ayushman Bharat Health Account (ABHA), Digital Infrastructure for Knowledge Sharing (Diksha) among others. 

In the fintech segment, a major change driven by the advent of UPI is the age group of discount brokers’ client base. Currently, 85% fall within the 20-30 age bracket, with Tier 2 cities leading the way in lending, the report said.

According to the study, eKYC has reduced the time taken to open demat accounts from 3-7 days to less than a day. It has helped lenders and account aggregators expedite the process and reach out to demographics located beyond Tier 1 cities in India.

Recently, the National Payments Corporation of India (NPCI) revealed that UPI transactions have crossed 11 Bn mark for the second consecutive month, as the country recorded 1,124 Cr UPI transactions in November.

The post ONDC Has Potential To Generate $250-300 Bn In Ecommerce GMV By 2030: Redseer appeared first on Inc42 Media.

Ecommerce major Flipkart on Thursday (December 7) announced that it will deploy blockchain scaling startup Polygon’s chain development kit (CDK) to scale its FireDrops Web3 loyalty programme.

“… This is a game changer for (the) Web3 ecosystem in India. It not only has the potential to attract the top fintech entrepreneurs in India to build Web3 but it also might encourage many other top enterprise and consumer brands to build their app chains,” Polygon cofounder and CEO Sandeep Nailwal said. 

The announcement was made at the blockchain company’s flagship event, Polygon Connect India. 

The partnership will enable the ecommerce major to build an Ethereum-based zero-knowledge (ZK) layer-2 network to scale future growth and streamline its service. 

The Polygon CDK will also make it easy for Flipkart to offer a number of customisation options, including a streamlined onboarding experience, dedicated blockspace and low transaction fees to its users. 

“Future upgrades to Polygon CDK will also allow for enhanced privacy for transaction data, the ability to run the chain without a token or to use a central bank digital currency and access to liquidity in the greater Polygon and Ethereum ecosystems,” Polygon said in a statement.

The ecommerce major is also expected to leverage potential future offerings such as interoperable and unified CDK-deployed chains within the broader web of ZK-powered L2s in the Polygon CDK ecosystem. Flipkart plans to leverage all this to power its NFT-based rewards platform FireDrops2.0.

Powered by New York-based NFT brand loyalty platform Hang, FireDrops 2.0 aims to transform user engagement with brands via rewards and by incentivising brand loyalty through gamification. 

The loyalty platform envisages a platform that allows users to unlock rewards based on their track record and engagement with a brand. Since its launch in September, FireDrops claims to have attracted more than 3.3 Mn wallets, holding at least one non-fungible token (NFT). 

It builds upon the success of previous pilots where users earned NFTs and membership passes through engaging actions. 

FireDrops also aims to be the catalyst for spurring Web3 adoption in the country and aims to gain a mover advantage in the budding blockchain space. The partnership is also expected to shore up user engagement and loyalty programmes in the Indian ecommerce space.

The new announcement comes nearly a year after Flipkart announced a strategic partnership with Polygon to establish a blockchain ecommerce Centre of Excellence (CoE) that would scale up Web3 research in the country. In September this year, Flipkart also announced the launch of its metaverse-powered immersive virtual shopping feature, Virtual Worlds. 

The development also comes months after Polygon cofounder Jaynti Kanani stepped down from his role. In February, the blockchain scaling company laid off 20% of its workforce on account of a restructuring exercise amid the ongoing crypto winter.

The post Polygon To Power Flipkart’s Web3 Loyalty Platform FireDrops To Boost User Engagement appeared first on Inc42 Media.

Hyperlocal delivery platform Dunzo, which is facing a severe financial crisis, has now reportedly failed to clear its employees’ salaries for the month of November.

As per a Moneycontrol report, Dunzo is awaiting an infusion of the first tranche of capital from its investors to make salary payments.

“We have got assurance from our investor that expected funds will be wired to us by early next week. We should be able to release the November salaries as soon as we receive it. With this infusion we should be able to manage salaries for the next couple of months till we close out the round of equity in January,” the startup reportedly told its employees.

This is not the first time that Dunzo has failed to clear the salaries of its employees on time. After delaying the salaries for June and July for months, the startup said it would clear them in November. However, there is no clarity if it has made these payments.

A mail sent to Dunzo seeking information about the latest development and pending salaries of previous months didn’t elicit any response till the time of publishing this story.

Meanwhile, the Reliance Retail-backed startup has laid off over 30% of its workforce so far and has also seen exits at managerial level.

Earlier, the cash-strapped company was said to be looking to raise a funding of $25 Mn-$30 Mn.

“As this (the fresh funding) is based on external factors, we would recommend members to plan for a worst-case timeline of Dec 15, 2023,” Dunzo has now reportedly its employees. “We will continue to put our best efforts to find other alternatives as well. Regret the delay and request your continued support.”

Dunzo’s loss nearly quadrupled in FY23 to INR 1,801 Cr from INR 464 Cr in the previous fiscal year, with operating revenue rising 317% year-on-year (YoY) to INR 226.6 Cr.

The post Cash-Strapped Dunzo Fails To Pay November Salaries appeared first on Inc42 Media.

Audio products and smartwatch maker boAt’s sales crossed the INR 3,000 Cr mark in the financial year ended March 31, 2023. The Delhi NCR-based startup’s operating revenue rose 18% to INR 3,376.7 Cr in the financial year 2022-23 (FY23) from INR 2,873 Cr in the previous fiscal year.

Founded by Aman Gupta and Sameer Mehta in 2015, boAt operates in the larger audio and wearables markets and sells products such as headphones, smart watches and speakers. 

boAt earned INR 2,350.8 Cr in FY23 from the audio segment, which accounted for 70% of its operating revenue. The wearable segment contributed INR 901.5 Cr to boAt’s topline this year.

Including other income, boAt’s total revenue stood at INR 3,403.1 Cr in FY23 as against INR 2,886.4 Cr in FY22.
However, the startup slipped into the red for the first time since its inception as the increase in expenses outpaced the rise in sales. boAt reported a net loss of INR 129.4 Cr in FY23 after posting a profit of INR 68.7 Cr in FY22.

Where Did boAt Spend?

boAt’s total expenses jumped 28% to INR 3,562 Cr in FY23 from INR 2,786.9 Cr in the previous fiscal year.

Procurement Cost: boAT spends the biggest amount on procurement of raw materials for its products. In FY23, it spent INR 2,526.8 Cr on procurement of unfinished goods, which accounted for 71% of its overall expenditure. Interestingly, the startup has spent INR 2,591.5 Cr in FY22 on unfinished goods, marginally higher than what it spent this year. 

Advertising Expenses: boAt’s advertisement cost more than quadrupled during the year under review. The startup spent INR 427.6 Cr on advertising in FY23, an increase of 332% from INR 99 Cr in the previous fiscal year. Advertising and promotional costs surged despite Gupta publicly stating that the startup suspends marketing for the nearly three-month period when popular reality show Shark Tank India, in which Gupta appears as a shark, is aired on national television.

Employee Benefit Expenses: Employee costs surged 77% to INR 99.4 Cr in FY23 from INR 56.1 Cr in the previous fiscal year. The sharp increase in employee benefit expenses is an indication of an increase in the startup’s headcount. 

EBITDA margin deteriorated to -1.6% in FY23 from 4.98% in FY22.

boAt began making its products in India in early 2022 and claims to have produced more than 30 Mn units in India till date (over 15 Mn units in FY23). Last month, boAt said it is working continuously with Indian electronic manufacturing services (EMS) providers to streamline the processes and build a high quality manufacturing ecosystem in India.

Last year, boAt also formed a joint venture with Dixon Technologies to design and manufacture wireless audio solutions in India. 

In fact, the startup had claimed that its profitability got impacted in FY23 due to its investments in seeding the smartwatch category and scaling up the ‘Make in India’ infrastructure

boAt was among the Indian startups which filed its IPO papers in 2021. However, it shelved its IPO plans due to market volatility. The startup has raised a total funding of $177 Mn till date from investors such as Qualcomm Ventures, Warburg Pincus, InnoVen Capital, Navi Technologies, and Fireside Ventures.

boAt competes against startups like noise, Leaf, and mivi. 

The post Aman Gupta’s boAt Sold Audio Products, Smartwatches Worth INR 3,376 Cr In FY23 appeared first on Inc42 Media.

FIH Mobile, a subsidiary of iPhone maker Hon Hai Precision Industry Co, also known as Foxconn, said its India arm Bharat FIH will invest INR 400 Cr ($48 Mn) in the company’s wholly-owned India subsidiary Rising Stars Hi-Tech.

The infusion marks a long term-investment for working capital and general corporate purposes, the company said in a stock exchange filing in Hong Kong.

“The capital injection is currently scheduled to be effected in December 2023,” the filing added.

FIH said that the funding will increase the issued share capital of Rising Stars Hi-Tech to INR 450 Cr.

Established in 2015, Andhra Pradesh-based Bharat FIH is one of the vendors of smartphone majors like Apple and Xiaomi. Other than assembling iPhones for Apple, the company also makes mobile phones, electric vehicle components, telecom network equipment, televisions and hearables, among others. 

The announcement comes days after Foxconn said it would invest more than $1.5 Bn in India to meet the operational needs. 

Apart from growing its Apple business, Foxconn also aims to expand its India footprint. In September, the company announced plans to double its India employment, investment and business size in one year. 

In addition to assembling Apple’s products, the company is also planning to venture into the semiconductor and electric vehicle spaces in India. It has already partnered with French-Italian semiconductor company STMicroelectronics to start manufacturing semiconductors in India. 

The development comes at a time when Apple is rapidly ramping up manufacturing in India amid geopolitical tensions between Beijing and Washington. India now accounts for about 7% of total iPhones produced globally. 

Earlier this week, Minister of Electronics and Information Technology Rajeev Chandrasekhar said that the Cupertino-based tech giant is bringing its global lithium-ion battery manufacturer, TDK Corporation, to India. The Japanese company plans to set up a manufacturing plant in Haryana to manufacture battery cells for iPhones produced in the country.

The post iPhone Maker Foxconn’s Subsidiary To Inject $48 Mn Into Its India Entity appeared first on Inc42 Media.

Foodtech decacorn Swiggy has appointed FMCG veteran Anand Kripalu as an independent director and the chairperson of its board of directors to strengthen its board ahead of its initial public offering (IPO).

Kripalu, who currently serves as the managing director and global CEO of the world’s largest speciality packaging company EPL, is an IIT Madras and IIM Calcutta alumnus. He also completed an advanced management program at Wharton Business School.

“Swiggy has transformed food and grocery delivery in the country, bringing unparalleled convenience to millions of homes. I am honoured to join its accomplished board, and look forward to lending my experience and perspective as Swiggy shapes the future of convenience”, Kripalu said on his appointment.

Before leading EPL, he was the MD and CEO of alcoholic beverage major Diageo India. He also held leadership positions at Mondelez International and Unilever in the past.

Commenting on the appointment, Sriharsha Majety, cofounder and group CEO of Swiggy, said, “I’m pleased to have Anand Kripalu join as an independent director and chairperson of the Swiggy board. Anand is a veteran in the consumer goods industry, and his deep knowledge and perspective will be instrumental in guiding Swiggy as we continue to innovate and redefine the on-demand delivery landscape in India.”

The appointment comes as the foodtech giant prepares for a public listing next year. The listing, likely to happen in mid-2024, is already being touted as the biggest IPO by an internet company next year, with an issue size of $1 Bn (INR 8,300 Cr).

Earlier this year, the company also appointed three new independent directors on its board – Delhivery MD and CEO Sahil Barua, TAFE MD and chairman Mallika Srinivasan, and Shailesh Haribhakti & Associates chairman Shailesh Haribhakti.

Swiggy competes with Zomato in India’s food delivery market, which is largely a duopoly. However, both have also been facing competition from the government-backed Open Network for Digital Commerce (ONDC). 

While Zomato reported two back-to-back profitable quarters in FY24, Swiggy claimed to have achieved profitability in its food delivery business as of March 2023. However, there have been no further updates from the company on this front.

Swiggy is yet to file its FY23 financial statements. However, its investor Prosus, in its annual report, noted that the food delivery firm’s loss widened by 80% in 2022 and that its share of loss increased to $180 Mn in 2022 from $100 Mn in 2021 mainly due to investments in quick commerce business, Instamart.

In FY22, Swiggy’s net loss jumped 2.2X to INR 3,628.9 Cr from INR 1,616.9 Cr in FY21 as its expenses more than doubled. The SoftBank-backed decacorn’s revenue from operations rose 124% to INR 5,704.9 Cr from INR 2,546.9 Cr in the previous year.

Kripalu’s appointment also comes after several top-level exits at the foodtech giant. Most recently, senior vice president Karthik Gurumurthy left the startup to work on his venture in the foodtech space. He is also said to have talked with multiple venture capital (VC) firms, including Matrix and Accel, to fund his new startup.

The post IPO-Bound Swiggy Appoints FMCG Veteran Anand Kripalu As Chairperson Of Its Board appeared first on Inc42 Media.

D2C mattress brand The Sleep Company has raised INR 184 Cr ($22.1 Mn) in its Series C funding round from existing investors Premji Invest and Fireside Ventures.

The startup will use the capital for brand building, omnichannel expansion, and product innovation.

It is pertinent to note that The Sleep Company raised INR 177 Cr ($21 Mn) last year in its Series B funding round led by Premji Invest. It also saw participation from Alteria Capital and existing investor Fireside Venture.

“Our valuation has more than doubled since the last round, and since our launch in October 2019, we’ve achieved remarkable 3X year-on-year growth,” The Sleep Company cofounder Priyanka Salot told Inc42.

The Mumbai-based brand, which competes with the likes of Wakefit, Sleepyhead, Sunday, and SleepyCat in the highly competitive sleep solutions and mattress market in the country, forayed into offline retail in August 2022, with the opening of exclusive stores in Bengaluru and Hyderabad.

The Sleep Company’s unique selling proposition lies in the patented SmartGRID mattress technology. Since its launch, the company has diversified into segments like work and gaming chairs. As a result of its product diversification, the company’s non-mattress business accounts for 35% of its revenue.

Currently, the startup has 60 stores across 22 cities in India. By March 2024, it plans to take this number to 100 stores.

“We are technically opening one store every four days in the country. We want to keep the same momentum, and the same pace going forward. Over the next one year and four months, we will expect 200 outlets spanning 35-40 cities in India. Hence, a substantial chunk of fresh capital will be used there,” cofounder Harshil Salot said.

Currently, the startup’s top offline markets are Bengaluru, Hyderabad, Chennai, Mumbai, and Delhi NCR.

Offline channels account for 50% of the startup’s revenue. While 30% revenue comes from direct-to-consumer (D2C) sales, the remaining 20% is generated through various marketplaces.

The D2C brand entered the Japan and the UK markets last year. The founders claimed that the international markets currently account for 7-10% of its total revenue. They have plans to increase this number to 20% before pursuing aggressive expansion into new markets.

The Sleep Company has touched an ARR of over INR 350 Cr and aims to end the ongoing financial year with an ARR of INR 500 Cr. It is also looking at becoming EBIDTA profitable by next year.

The post The Sleep Company Raises INR 184 Cr To Boost Its Omnichannel Play appeared first on Inc42 Media.

D2C unicorn Mamaearth’s early backer Fireside Ventures sold 60.89 Lakh shares in the company or a 1.89% stake in a bulk deal on Tuesday (December 5).  

Reports emerged on Monday (December 4) that the VC fund was looking to sell 61 Lakh shares in the company, worth INR 230 Cr, for INR 368.7-INR 384.1 per share. However, the shares were sold at INR 378 apiece in a deal worth almost INR 230.2 Cr.

Following the deal on the NSE, shares of Honasa Consumer ended the day’s trade 4.4% lower at INR 367.15. On the BSE, the shares ended 5.1% lower at INR 363.85.

It is pertinent to note that the VC fund also sold 79.7 lakh shares of Mamaearth during its IPO. With today’s stake divestment, Fireside has so far booked profit of over 4,600% from its investment in the company.

Mamaearth got listed on the bourses earlier last month. As per SEBI’s regulations, alternate investment funds (AIFs)  of Category I or Category II with more than 20% of the pre-offer share capital are under a six-month lock-in period. 

As per a Moneycontrol report, Category I AIFs holding less than 20% of the pre-offer share capital are exempt from this lock-in, making Mamaearth face a big PE overhang as some of the key holders don’t have a lock-in. 

As per the BSE data, Fireside held 2.43 Cr shares in Mamaearth after its listing. After today’s share offloading, it should hold 1.83 Cr shares or a 5.68% stake in Mamaearth while Stellaris Venture is the other Category I AIF, holding a 5.78% stake in the company.

The D2C unicorn made a muted debut on the Indian bourses last month. While it listed at a  nearly 2% premium on the NSE, the shares made a flat debut on the BSE at INR 324 apiece. 

Following its September quarter earnings results on November 22, the Mamaearth stock touched a record high of INR 475.1 Cr on the BSE. However, the share price crashed following this due to profit booking. 

Speaking on the performance of the stock, Ambareesh Baliga, an independent research analyst, said that Mamaearth’s valuation was expensive and this reflected in the response it got and the muted listing. 

“Sentimentally positive but I believe the spike was unjustifiable… An INR 15 Cr jump in net profit pushes up the market cap of the company by INR 5,000 Cr and that’s not sustainable,” Baliga said.

Despite this, the stock closed today’s trading session 12.3% higher from its listing price on the BSE.

The post Fireside Ventures Divests 1.9% Stake In Mamaearth, Books Over 4,600% Profit So Far appeared first on Inc42 Media.

Online ticketing platform BookMyShow turned profitable and posted a consolidated net profit of INR 85.1 Cr in the financial year 2022-23 as income from live events saw a massive jump, leading to over a three-fold rise in its total sales revenue.

Marking a complete recovery from the adverse impact of the Covid-19 pandemic, BookMyShow’s sales revenue neared the INR 1,000 Cr mark and stood at INR 975.5 Cr in FY23. 

The company had reported a loss of INR 92.2 Cr in FY22 on sales revenue of INR 277.1 Cr. 

It is pertinent to note that the pandemic and the subsequent lockdowns had delivered a hard blow to the art and entertainment industry. With live events not allowed and cinemas and theatres closed, BookMyShow’s revenue had crashed to INR 74 Cr in FY21. 

However, the company rebounded strongly in FY23 and crossed the INR 563 Cr total revenue of FY20.

Founded in 1999 by Ashish Hemrajani, Parikshit Dhar and Rajesh Balpande, BookMyShow’s online ticketing platform for events, movies, sports and plays was launched in 2007. The company, which competes with the likes of Paytm Insider, counts Accel Partners and TPG Growth among its investors.

BookMyShow earns a majority of its revenue from online ticket booking services, which grew over 180% year-on-year (YoY) to INR 613.8 Cr in FY23.

On the other hand, its income from live events, the second-biggest revenue source, surged to INR 237.5 Cr in the reported period from INR 24.6 Cr in FY22.

BookMyShow’s income from advertising and marketing jumped over 5X YoY to almost INR 40 Cr in FY23, while income from turnkey ticketing solutions more than tripled to INR 33.5 Cr.

The company’s other sources of sales revenue include sale and maintenance of software, streaming services, and sale of food and beverages, among others.

India continued to be the biggest market for BookMyShow, contributing a revenue of INR 942.5 Cr in FY23. Its income from other regions stood at INR 33 Cr in the year.

Including interest income and other non-operating income, BookMyShow’s total revenue surpassed the INR 1,000 Cr mark in FY23.

During FY23, the company also acquired a majority stake in TribeVibe, an engagement platform for college festivals that helps institutions manage events.

Where Did BookMyShow Spend? 

In line with its growing business, BookMyShow’s total expenses also jumped 138% to INR 940.9 Cr in FY23 from INR 395.2 Cr in the previous financial year, with revenue share with cinema owners being the largest contributing factor.

Revenue Share: The platform earns revenue in the form of convenience fees that it charges from users booking online tickets. The company shares a portion of this convenience fee with cinema owners, which is recognised as an expense.

BookMyShow’s revenue share expense surged 146% to INR 294.9 Cr in FY23 from INR 119.8 Cr in the year before.

Employee Benefit Expenses: The company’s employee costs increased 23% to INR 137.6 Cr in the reported period from INR 111.9 Cr in FY22. 

Of this, it spent the biggest amount of INR 122.8 Cr on salaries and wages. On the other hand, employee stock appreciation rights rose over 168% YoY to INR 6.4 Cr in FY23.

Artist Fees: The company’s spending on artist fees grew to INR 103.9 Cr in the reported year from INR 9.8 Cr in FY22.

Advertising Promotional Expenses: BookMyShow’s advertising expenses saw the steepest rise, surging over 457% YoY to INR 53.6 Cr in FY23.

While FY23 turned out to be a bumper year for BookMyShow, it has been entangled in a few political and legal controversies recently.

In September, BookMyShow had to cancel the India tour of Punjabi-Canadian singer Shubhneet Singh, well known as Shubh, after facing backlash from netizens over some of the past social media posts of the rapper which showed a distorted map of India. Many users on social media platforms also called for a boycott of the ticket-booking platform over the issue.

Besides, the Kolkata Police recently summoned officials from the Cricket Association of Bengal (CAB) and BookMyShow regarding a complaint about ticket black marketing for the ICC World Cup match between India and South Africa.

The company also had to issue an apology to stand-up performer Trevor Noah’s fans as a major technical glitch led to the cancellation of his shows in Bengaluru.

The post BookMyShow Posts INR 85 Cr Profit In FY23 On Post-Pandemic Boost, Sales Jump 3X appeared first on Inc42 Media.

Shares of Honasa Consumer Ltd, which houses direct-to-consumer brands Mamaearth and The Derma Co, are currently trading in losses followed by a large block deal that took place shortly after the market opened on Tuesday (December 5).

Around 2% stake of the company or 62.90 Lakh shares exchanged hands on the block deal. The deal is valued at INR 238 Cr.

However, the buyers and sellers in the transactions are not known.

At 11:20 am, the shares were trading at INR 379 apiece on the BSE, 1% lower as compared to the previous close at INR 383.

Earlier it was reported that venture capital firm Fireside Ventures was planning to offload a 1.9% stake in Honasa Consumer via multiple block deals. The VC firm was planning to dump 61 Lakh shares at a floor price of INR 368.7 to INR 384.1 apiece.

The decision to sell the stake coincides with recent reports indicating that Honasa had accumulated an excess of stock with its offline distributors ahead of the startup’s public listing.

According to the reports, distributors in Maharashtra and Goa now find themselves burdened with a 90-day inventory, a significant increase from the typical 30-day stock levels.

D2C unicorn Mamaearth made its debut on the Indian stock exchange on November 7 with a nearly 2% premium on NSE. The shares were listed at INR 330, marking a listing gain of INR 6 over the issue price of INR 324. On the BSE, Mamaearth shares listed flat at INR 324.

Despite an optimistic start, market volatility dampened the initial enthusiasm, causing the stock to plunge to a historic low of INR 256.10 on the BSE merely four days later. However, a positive turn occurred as the company disclosed its Q2 FY24 results, revealing a substantial increase in net profits.

Mamaearth posted a profit after tax (PAT) of INR 29.4 Cr in Q2, registering almost a 94% jump year-on-year (YoY), while its operating revenue also increased 21% to INR 496.1 Cr.

Shares of Honasa Consumer Ltd jumped 20% during the intraday trading on November 23 to touch the upper band and a record high at INR 422.5 on the BSE following the company’s Q2 FY24 earnings announcement.

The post Honasa Consumer Sees INR 238 Cr Block Deal, Stocks Tank After Early Gains appeared first on Inc42 Media.