Indore-based B2B ecommerce platform ShopKirana achieved a unique milestone. In its 12-hour-long flash sale, the startup generated more than Rs 1 crore from 4,000 users, all from its home city.
On an average, in India, local (unorganised) retailers often depend on 70-100 distributors for stock replenishment. Founded in 2015 by Tanutejas Saraswat, Sumit Ghorawat, and Deepak Dhanotiya, Indore-based ShopKirana was one of the early players to connect retailers and brands/factories directly using a mobile app. It helps retailers with generating better sales and keeping less inventory by buying in real time, and by keeping track of the data on their mobile phone.
Within four months of its launch, ShopKirana’s mobile application got 500 retailers on board with just 10 brands integrated in the system, and the company had managed a turnover of more than Rs 50 lakh.
ShopKirana is targeting 10 percent market share in Tier II cities in the short term. It has also launched local content in Hindi and Gujarati to target a wider audience.
With a zero-inventory model, ShopKirana presents itself as a purchasing company and multi-brand distributor for retailers. The demand they get from retailers are sent to the brands, which they deliver to ShopKirana’s warehouse in 48 hours (they have one warehouse in each city they are present in). And ShopKirana delivers it to the retailer the same day, mostly in three to four hours.
Its private brand, called ‘Kisan Kirana’, connects farmers directly to kirana stores. Tanutejas claims it enables farmers to get more margins and better access to retail stores.
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