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Finacials

Finacials QCommerce

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21 views4 pages

Finacials

Finacials QCommerce

Uploaded by

chatgpt4ximb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Competitor Product Mappings:

Key Products
Player USPs
Offered
Groceries, beauty & Wide SKU range (>6,600), fast
Blinkit personal care, OTC delivery (15 mins), high product
drugs, electronics margins, strong brand tie-ups.

Focus on perishables, low wastage


Fresh produce,
Zepto through direct farmer sourcing, ultra-
groceries, personal care
fast delivery (10 mins).

Grocery staples, Strong Swiggy integration, high AOV


Instamart personal care, growth, leveraging food delivery
packaged foods synergies.

Localized offerings, smaller SKU range


BB Now Groceries, local produce (4,000–6,000), slower expansion
pace.

Key Financial Metrics (CY23 Estimates):

Metric Blinkit Zepto Instamart BB Now


GMV Share ~46% ~21% ~27% ~7%
Average ₹ 635 ₹450+ ₹450+ ₹400–450
Order Value
(AOV)
Gross High (~20- High (~20- Medium Low (~10-
Margin 25%) 25%) (~15-20%) 15%)
Cost per ₹ 22 ₹ 22 ₹30+ ₹30+
Order
Break-even Q1FY25 Within 36 2024 Beyond
Timeline months 2025
Major Hurdles
Key Issues Across Competitors

1. High Operating Costs:

o Dark store rentals, inventory costs, and last-mile delivery


expenses strain margins.

o Example: BB Now's limited scale leads to higher fixed costs


per order.

2. Supply Chain Complexities:

o Managing perishables (e.g., Zepto) requires advanced cold


storage and direct sourcing infrastructure.

o Challenges in scaling direct farmer relationships to new


regions.
3. Customer Retention:

o Blinkit and Zepto face pressure to maintain high AOVs and


repeat purchases, especially in a price-sensitive market.

4. Regulatory Pressures:

o Compliance with labor laws and e-commerce policies adds


operational complexity.

5. Funding Challenges:

o Limited access to new capital during funding winters impacts


expansion plans (e.g., Zepto's strategy pivot in Apr’22).

Financing Issues
Approaches to Address Financing Challenges

1. Blinkit:

o Leverages Zomato’s robust financial backing.

o Monetizes platform through ad revenue, marketplace


commissions, and increased AOV.

2. Zepto:

o Pivoted strategy during funding crunch by improving


throughput rather than expanding dark stores.

o Raised $200M in Aug’23 to resume expansion plans.

3. Instamart:

o Benefits from Swiggy's cross-platform synergies, reducing


standalone infrastructure costs.

o Focus on achieving contribution neutrality in key markets.

4. BB Now:

o Limited financial runway due to smaller scale and market


share.

o Struggles to attract significant external funding.

Break-Even Strategies
How Players Manage to Break Even
1. Operational Efficiency:

o Blinkit and Zepto focus on maximizing dark store throughput,


reducing wastage, and leveraging economies of scale.

2. Revenue Diversification:

o Ad income (e.g., Blinkit), loyalty programs (Instamart), and


high-margin non-grocery products (Zepto) are critical levers.

3. Technology Investments:

o AI for demand forecasting, inventory management, and route


optimization lowers operational costs for all players.

4. Targeted Expansion:

o Blinkit and Zepto strategically prioritize Tier 1 cities, while BB


Now struggles with over-diversification.

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