21 Year Old Unicorn Founder Reveals Quick Commerce Business Secrets

Summary

The video script narrates the entrepreneurial journey of two friends who started their venture during the pandemic. Initially delivering groceries via WhatsApp in Bombay, they pivoted to a dark store model after realizing the limitations of their initial approach. With a focus on operational excellence, they rapidly scaled their business, securing significant funding rounds and achieving impressive sales figures. The story highlights their challenges, learnings, and the innovative strategies that contributed to their success in the competitive grocery market.

Takeaways

• 🌏 The interviewee was born in Bombay, moved to Dubai at age five, and later returned to India, noting a significant change in the country over time.
• 🏫 They and their friend KV both had a knack for building projects and started programming at a young age, which eventually led to their entrepreneurial journey.
• 🤝 The pair bonded over their shared interest in building things and KV's technical expertise, which played a significant role in their early projects.
• 💡 The idea to build a career out of their hobby came around when they were 14 or 15, inspired by Y Combinator's Startup School and Silicon Valley's entrepreneurial spirit.
• 🎓 They planned to attend Stanford University as a stepping stone to Silicon Valley, but the pandemic disrupted their plans, leading them to take a gap year.
• 🛒 During the pandemic, they started a grocery delivery service in Bombay to help their elderly neighbors, which eventually grew into a larger operation.
• 📈 They recognized the need for better control over the customer experience, which led to the concept of 'dark stores' – small, efficient warehouses for faster delivery.
• 💼 They secured initial funding from Contrary Capital's fellowship, which provided them with capital to pursue their entrepreneurial venture.
• 🚀 The business took off, growing rapidly with the implementation of the dark store model, leading to significant sales and further funding rounds.
• 💰 They raised substantial capital, including a Series A and B, and a CDC round led by Y Combinator's growth fund, valuing their company highly despite their young age.
• 🛑 The interviewee emphasizes the importance of operating excellence and discipline in the tough grocery business, highlighting their focus on efficiency and customer satisfaction.

Q & A

Where was the interviewee born and at what age did they move to Dubai?

The interviewee was born in Bombay and moved to Dubai when they were about five years old.

What was the interviewee's experience like growing up in Dubai?

The interviewee described their experience in Dubai as fun but sheltered, noting the absence of crime and describing it as being in a bubble.

How did the interviewee and their friend bond and work together on projects?

The interviewee and their friend bonded over their shared interest in building projects. The friend was more technical, while the interviewee focused on the talking and presentation aspects.

What was the turning point that led the interviewee and their friend to consider building a career out of their hobby?

The turning point was in 2017 when they started getting exposed to Y Combinator's Startup School, an online course that inspired them to consider building a career out of their hobby.

Why did the interviewee and their friend decide to apply to Stanford University?

They decided to apply to Stanford as a way to get to Silicon Valley, believing that attending college there would be a good excuse to be in the area and learn from the community of builders.

How did the pandemic affect the interviewee's plans to attend college?

The pandemic hit in March 2020, and the interviewee and their friend were unable to go to college as planned. They decided to take a gap year instead.

What was the first business idea the interviewee and their friend pursued during their gap year?

Their first business idea was a delivery service for local stores in Bombay, which they initially managed through a WhatsApp group chat for their neighbors.

What is a 'dark store' and how did the interviewee's business evolve to include them?

A 'dark store' is a small, tucked-away warehouse designed for efficient picking and packing of orders, rather than customer browsing. The interviewee's business evolved to include dark stores to improve delivery speed and quality, and to have better control over the customer experience.

How did the interviewee and their friend secure their initial funding for the dark store model?

They secured initial funding through Contrary Capital's fellowship program, which provided them with 50,000 USD to work on their business idea during their gap year.

What was the impact of the interviewee's business on their local community during the early stages?

In the early stages, their business provided a convenient delivery service for neighbors, especially the elderly, who were unable to leave their homes easily during the pandemic.

How did the interviewee's business scale up after the initial success with the dark store model?

After the initial success, the business scaled up rapidly, with the interviewee raising significant funds from investors like Nexus, which led to aggressive growth and expansion of the dark store model.

What are the main sources of revenue for the interviewee's business currently?

The main sources of revenue are sales from grocery items, advertising income from brands, and a small portion from delivery fees.

How does the interviewee's business model compare to traditional grocery stores and other online platforms?

The business model focuses on high throughput per square foot and low fixed costs, making it more efficient than traditional stores. It also offers free delivery above a certain amount and lower prices than most other formats, including online platforms.

What is the current state of the interviewee's business in terms of funding and growth?

The business has raised over 500 million dollars and is experiencing rapid growth, with the founders still maintaining significant equity in the company.