Started in 2011 by Mukesh Singh, and now under the leadership of CEO Raj Pandey, online grocery shopping store ZopNow is targeting 100 million USD in 2017. While many players put the brakes on expansion in 2016, ZopNow quietly launched its services in 10 major Indian cities.
“eGrocery is a massive underpenetrated opportunity but one where there is potential to burn a lot of money either on the supply side or the logistics side, if the product is not well thought out. Over the last three years, we have created an ecosystem of sophisticated suppliers and best-in-class technology to provide max range to consumers at the lowest logistics cost. While the market opportunity is USD 25 bn+ in the next four years and USD 100 mn GMV is easily attainable, a healthy and sustainable ecosystem is what we have worked on. We now have battle-tested technology and the desired footprint of partner warehouses to turbo-charge our growth in 2017,” says Raj Pandey, CEO, ZopNow.
Untill 2014, ZopNow was running on a completely owned inventory model, which required enormous resources and in direct competition with both online and offline retailers. Since then, ZopNow has restructured its operations to a 100 per cent inventory-free model and today, it’s not only bringing value to the end consumer but also forging long-term partnerships with players like Aditya Birla Group, HyperCity, Metro, and StarBazaar among others.
Growth strategy for ZopNow
ZopNow is also offering eGrocery as a Service (SaaS) solution to large brick-and-mortar retailers that want to go online with a proven technology platform. It launched online retail stores for More and HyperCity along with their branded apps. The entire technology and operations, though powered by ZopNow, provides a seamless Omni channel shopping experience to customers of these retailers. ZopNow is taking the SaaS model global with Middle East and South East Asia as immediate markets.
“eGroceries has idiosyncrasies that require a highly specialized platform compared to other ecommerce verticals. Our SaaS customers value the fact that our best-in-class technology is actually a solution that has worked with multiple grocery chains, unlike other generic out-of-box solutions. This provides us an additional avenue to monetize the IP we have built,” says Mukesh Singh, Founder, ZopNow.
In the recent demonetization policy announced by the government, as the market witnessed a swift decline in hard cash and with people opting for plastic money, card and e-wallet transactions on ZopNow platform have grown more than 50 per cent along with a 35 per cent increase in growth of new customers compared to the period when Rs 500 and Rs 1000 notes were a legal tender.
“The online grocery industry seems to be an unintended beneficiary of the move as the customer cannot postpone essential purchases for her home,” says Pandey.