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New Models for a Foothold in Grocery Retail Test by Tech Startups


New Models for a Foothold in Grocery Retail Test by Tech Startups

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New Models for a Foothold in Grocery Retail Test by Tech Startups

To control branding, merchandising & invoicing… over half dozen cos are taking over kirana stores..

Express stores, Behtar Stores, Gully Network, GoodBox, ShopKirana, NIFLR and Jumbotail technology startups are experimenting with new models in the segment.

To control merchandising, inventory, invoicing, financing and branding, others are creating self-checkout stores and technology solutions for retailers some of these businesses are taking over the functioning of the full Kirana stores.

Large, fragmented, differentiated and unorganized is physical retail business that no one solution can actually fit this underserved segment.

A few months ago, Shopkirana, which emphases delivery of goods to kirana stores in small towns and cities, forayed into the business of fullstore alteration under the brand Need square and has functioned with stores to 80 outlets for a partial store restoration through a project called Kisan kirana. In India, these kirana stores will take their own time to be stores in the future.

Gully Network, Express stores, Behtar stores and Jumbotail own the whole store experience including co-branding and claim that by contribution an well-organized supply chain, in-store experience and customer engagement proficiencies the stores will clock increased revenues over time.

Small shops need a 360 degree handholding to hold technology to cope with the ever-dynamic purchase behaviour of consumers and produce supplementary income other than their main business. Investors such as Orios Venture Partners, Accel and Nexus Venture Partners have backed such business models.

In the commerce pie even though, retail is the largest sector at more than $300 billion, technology and supply chain solutions have barely been able to scratch the surface paying the way for startups to target niche areas.

To sustain in the future, these Kirana stores are required to use technology. The many startups have modified their business model over past few months. With online ordering, customer relationship management tools, analytics and logistics there is increase in business by 30%. Nearing about Rs 60 crores worth of grocery delivery in terms of annual run rate.

The focus on providing technology to the mom and pop outlets comes at the time when Reliance Industries, Amazon and grocery e-tailers like BigBasket as well as business-to-business players such as Udaan, are working to digitise small physical shops.

Kirana stores are already using products including UPI and QR code-based payment solutions, digitization and ledger solutions as well as inventory procurement and point of sale solutions.

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