Oct, 2015     

Rise of Consumer Businesses in India

This document covers the rise of consumer business in India identifying the key success stories and growth mantras.

We are the leaders in the Indian consumer internet advisory space

strong crendentials

  • 100+ engagements with new age sector
  • Working with 10+ consumer internetcompanies across the globe
  • 150+ clients
  • Executed 1000+ engagements overall
  • 70+ employees across 5 locations
    (New Delhi I Bangalore I Mumbai I New-York I Dubai )
  • Leaders in consumer internet advisory space
  • Widest panels and deepest tracks in the industry
  • Clientele includes 70% of Indian GMV and 40% of the investments

The fast growing new-age sector is disrupting the consumer experience (1/2)

Rapid adoption of and high comfort levels with online services: The appbased taxi booking market saw 100%+ y-o-y rides growth in 2015; e-tailing grew by 70-80% in terms of parcels delivered.

Consumer internet start-ups are booming: 46% of top 50 current unicorns and 53% of the top emerging unicorns are in consumer internet

India has leap-frogged the broadband wave by jumping to the mobile: More than 60% of online transactions are taking
place on the mobile platform and number of Indian online shoppers are booming Consumer internet start-ups are
booming: 46% of top 50 current unicorns and 53% of the top emerging unicorns are in consumer internet

Limited availability of quality products and services in smaller cities: ' Poor availability of branded products' and 'Low price transparency' are key issues face by customers in smaller cities

The fast growing new-age sector is disrupting the consumer experience (2/2)

The foodtech market has seen consolidation and the emergence of leaders across business models

  • Restaurant Marketplace
  • Aggregator of restaurants
  • Provides additional services like food tracking

Chef Marketplace

  • Curated aggregator of chefs and specializing in home cooked food
  • Provides additional services like food tracking

Self-Owned Kitchen

  • End to end ownership of food supply chain
  • Often ties up with restaurant marketplaces

Unique business model
Driver interchange every 250 kms drives operational efficiency and solves industry's core problem of driver availability
Growth and Funding

  • Raised 10 MM $ from Saif Partners in April 2015
  • Current Fleet at over 600 trucks, expanding rapidly

Underlying success DNAs and myths about the consumer internet industry

Does every service provider need an app?
The app that actually satisfies the need of the user (e.g.: need for taxi services for a frequent intra-city traveler) is likely to take precedence over a discretionary usage app (e.g.: stand alone food service provider)
How a relatively unknown e-tailer becomes a performer

  • Has not so good O2D (order to delivery) time amongst e-tailers
  • Offers less discount, spends less on marketing
  • Yet, it is the e-tailer which is closest to turning EBITDA positive!!
  • Key levers of success: Widest range of unbranded products, niche yet large target customer group (Tier 2 city customers), frugal culture

Indian Consumer businesses are witnessing growth driven by capital
efficiency and new niche opportunity based ventures

Custom products based on Indian needs
Coca Cola India recently launched milk-based drink inline with specific Indian needs in Saffron and Almond based flavors
Diverse tastes and Wow packaging growing the market
Hector Beverages successfully launches Paper Boat brand of drinks in interesting flavours such as jamun, kokum and
jaljeera – driving growth in market which is slowing down.

US and/ or China may not be Equal to India

Requires a very local mindset & rigorous focus on operational excellence
to succeed in India

ZOHO – web-based suite for office tools, developed from India
Services at one-tenth price of the competitor

LOCOSTO Chips have reduced the cost of cell phone by 25-40%
Empowered low price mobile phones
Reduced the development time, being close to the market

ZOHO – web-based suite for office tools, developed from India
Enabled rapid expansion of Indian market
Being introduced in other emerging market economies

KURKURE – Indigenous Product, fired Pepsi's snack Business
End to development in India
Kurkure fired up Pepsi's Snack business in India


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