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.

Outlines

00:00

🌏 Childhood and Early Entrepreneurship

The speaker recounts his childhood in Bombay and Dubai, highlighting the sheltered yet enjoyable experience in Dubai. He discusses the lack of crime and the bubble-like environment, which has since changed. He never envisioned spending his life in India, but after returning, he found a new perspective. The speaker and his friend KV bonded over building projects and programming, which they pursued as a hobby. They were exposed to startup culture and entrepreneurship through Y Combinator's Startup School, leading them to consider building a career out of their passion. Their journey began with a move to Stanford, which was interrupted by the pandemic, prompting them to take a gap year and explore entrepreneurial opportunities in Bombay.

05:01

🛍️ Transition to Dark Stores and Scaling Business

The speaker describes the evolution of their business from a WhatsApp-based grocery delivery service to the establishment of dark stores, which are micro-warehouses tucked away in alleys, operated by pickers and packers instead of customers. They realized the need to control the customer experience end-to-end and began experimenting with dark stores to improve delivery speed and quality. The business received early investment from Contrary Capital, which allowed them to scale. They faced the classic 'chicken and egg' problem of supply and demand in marketplace businesses but focused on solving the supply side first by convincing local stores to join their platform. This hands-on approach provided valuable insights into customer needs and preferences.

10:03

🚀 Rapid Growth and Fundraising

After pivoting to the dark store model and experiencing rapid growth, the company attracted the attention of Y Combinator, which provided a significant investment. The founders focused on improving delivery speed, realizing that faster delivery times led to a positive feedback loop of increased throughput and lower costs per delivery. They managed to reduce delivery times from 45-60 minutes to a much faster rate. The business's momentum led to a series of successful fundraising rounds, including a Series A and a Series B, which fueled exponential growth. The founders emphasize the importance of operating excellence and discipline in the tough grocery business, aiming to build a massive enterprise.

15:06

💰 Business Model and Market Positioning

The speaker discusses the company's financial performance, noting a significant increase in sales from the launch of their first dark store. They explain their business model, which includes revenue from sales, advertising income, and delivery fees. The company operates on a low fixed cost base due to high throughput in their stores and has optimized variable costs, particularly last-mile delivery costs. They position themselves as a high-emerge business with a competitive advantage in delivery speed and cost. The founders also touch on the potential of the grocery market in India, which they see as a majority of consumption and a significant opportunity for growth.

Keywords

💡Dubai

Dubai is a city in the United Arab Emirates known for its luxury shopping, ultramodern architecture, and vibrant nightlife scene. In the video, it is mentioned as the place where the speaker moved to when they were about five years old, indicating a significant life transition that shaped their early experiences.

💡Programming

Programming refers to the process of writing, testing, debugging, and maintaining the source code of computer programs. The speaker mentions starting programming at the age of 10 or 11, which is a key aspect of their educational and professional development, leading to a career in technology.

💡Y Combinator

Y Combinator is a well-known startup accelerator that provides seed money, advice, and connections to help startups succeed. The video discusses how the speakers were influenced by Y Combinator's online course and startup school, which played a role in shaping their entrepreneurial journey.

💡Silicon Valley

Silicon Valley is a region in Northern California known for its high-tech innovation and venture capital. The term is used in the script to describe the ultimate destination the speakers aimed for to immerse themselves in a community of builders and entrepreneurs.

💡Dark Stores

Dark stores are small, local warehouses used for storing goods to fulfill online orders quickly. The concept is central to the video as it represents a pivot in the speakers' business model, which eventually led to significant growth and success.

💡Pandemic

The term 'pandemic' refers to an outbreak of a disease that occurs over a wide geographic area and affects an exceptionally high proportion of the population. In the script, the pandemic is mentioned as a catalyst for change, affecting the speakers' college plans and business operations.

💡Kirana Stores

Kirana stores are small family-owned shops or stores common in India, stocking daily use items. The video describes the process of convincing these stores to join their platform, which was a critical step in building their supply chain.

💡Series A Funding

Series A funding refers to the first significant round of venture capital financing after seed funding. In the script, the speakers mention securing Series A funding as a turning point that allowed them to scale their business rapidly.

💡Product-Market Fit

Product-market fit is a term used to describe a situation where a product is well-received in its market. The speakers discuss achieving product-market fit as a critical milestone in their business, which validated their approach and attracted further investment.

💡Grocery Delivery

Grocery delivery is a service that brings groceries from stores directly to consumers. The video's main theme revolves around the challenges and innovations in the grocery delivery business, particularly in the context of the pandemic and the speakers' entrepreneurial journey.

💡Marketplace Model

A marketplace model is a business approach where a platform connects buyers and sellers, facilitating transactions without holding inventory. The speakers initially attempted this model but found it lacking, leading to the pivot to the dark store model.

Highlights

The speaker discusses their upbringing in Bombay and Dubai, highlighting the sheltered yet fun environment of Dubai.

They share their early interest in programming, starting at the age of 10 or 11, and how it led to various projects during their childhood.

The bond between the speakers was formed through a shared interest in building and creating, with one being more technical and the other focusing on communication.

The decision to apply to Stanford was influenced by the desire to be in Silicon Valley, aiming to immerse themselves in the tech community.

The impact of the 2020 pandemic led to a shift in plans, with the speakers taking a gap year and exploring entrepreneurial opportunities.

The idea of starting a business during the pandemic began with helping neighbors by delivering groceries through a WhatsApp group.

The transition from informal grocery delivery to building an app, named Kerala Cart, to scale the operation.

The realization of the need to control the customer experience end-to-end led to the concept of dark stores.

A detailed explanation of what dark stores are, including their size and operational differences from traditional supermarkets.

The journey of securing initial funding from Contrary Capital, which provided a significant boost to their startup.

The strategy of solving the supply side first by personally visiting and convincing local stores to join their platform.

The importance of operating excellence and discipline in the grocery business, and the challenges of achieving product-market fit.

The growth of their business from zero to significant sales within 24 months, demonstrating rapid scaling and customer adoption.

Fundraising efforts, including a series A and series B, showcasing the company's ability to attract substantial investment.

The speakers' reflections on their experience at the age of 20-21, raising over 500 million dollars and their perspective on the journey ahead.

A discussion on the company's revenue streams, including sales, advertising income, and delivery fees, and their strategy for maintaining low costs.

The comparison between their business model and other formats like DMart and the ambition to compete in the grocery market.

The perspective on the grocery sector's significance within the overall consumption and retail landscape in India.

Transcripts

so I was born in Bombay and then when I

was about five moved to Dubai and we

ended up in the same class in like the

third grade

um the buy was fun uh a little bit

sheltered but fun

why shelter there's no crime there's

like a bit of a bubble uh so it's

changed now no

not really no not really now in fact

like so growing up I never thought that

I'd be like spending the rest of my life

in India but now when I go back to the

bike because India appears so bad I'm

gonna be a little bit harsher to you

guys no that's fine so it's just that I

get the pasta

we went to the typical path most people

ended up going to either

the UK us or Canada for University

and so that was just like the set paths

right and so uh so yeah we went to

school together uh I started programming

when I was like 10 or 11 and so we would

work on a bunch of projects growing up

do you live next to each other no for a

bit for a bit Yeah by Dubai yeah yeah so

we so basically I mean the two of us

we

I say both of us had a bit of an act for

building

um

that's how we bonded as well KV is

always a lot more Technical and smarter

than I was so he built out the actual

interesting stuff I just did the talking

um and yeah but we used to work on

things together by the time 2017 we said

okay like how do we make a career out of

this hobby like how do we build

for a living and that's when I guess

when you were 14 15 we started getting

exposed to

you know why combinators startup school

if you guys have heard of that it's like

uh no this was like a online course that

they had yeah so I mean basically

towards the end of school we said how do

we build a career out of building and we

figured that you know from the Y

combinator YouTube videos and like the

the sessions that we used to see online

we realized that this is community

people at Silicon Valley that basically

build for a living right

um we said how do we what's the best

excuse to get there what's the best use

for two Indian kids in Dubai to get

there probably go to college there and

so two of us applied forget Stanford

would be a good good excuse to go there

lucky enough to get in

um and so yeah that was supposed to be

the beginning of the journey you got in

together

yeah I mean he got an early I didn't get

in early I got into the regular decision

cycle so that's still so we're supposed

to start in September of 2020 right and

did you go to college

no no no we've activated I mean we so we

were supposed to go so March 2020

pandemic hits

um who was supposed to go couldn't go

and we said okay we can start our our

college education online uh but we had

like four Precious Years in like Silicon

Valley so we said you know if you're

gonna be waste a year or sitting on our

on our laptops in Dubai or Mumbai it's

not really worth it and so we decided to

take a year off and you know we didn't

really have anything planned for that

year like a lot of our a lot of our

friends had internships at Goldman or JP

Morgan

um but we were we just said let's take a

year off figure out you know figure out

what we can do

and yeah that's when we started

experimenting what is the first

experiment I mean we so we so we came to

Bombay uh firstly like when the pandemic

had came to Bombay multiple reasons why

family was here

um so we were staying in kv's house in

uh in Andheri East and so yeah that's

basically where we were so we were

Within Reach of our family in Bombay but

we were staying alone and we took a year

off March April 2020

knock down your local you know like a

local Mom and Pop Shop was disrupted the

online guys were taking seven eight days

to deliver it was a pain and most of our

neighbors were elderly

and so we

we're on a WhatsApp group chat and we

just we used to deliver for them because

we had nothing else to do uh so and you

would charge a fee for this initially we

did that WhatsApp group grew uh

eventually you start hitting that limit

uh 256. yeah 256 KV remembers but uh but

yeah each person could see what their

neighbor was ordering yeah it was not

very good idea so my place was in this

like it's called Shady Punjab Colony it

was just a bunch of punjabis in like I

don't know 50 years ago 40 years ago or

something and so it's just uh I don't

know maybe 100 200 houses there so it's

just the people within that and like two

or three stores nearby that we would

pick up in yeah stuff off and so that

was that and when it got to a certain

point we said let's build an app out of

it

so we can scale this and so we built out

the first generation it was called

Kerala card anyway I was basically a

pickup in drop service and that's what

that's how we we ended up building out

and started scaling over the course of

like a couple of months uh and that's

pretty much all we would do we were like

the customer support Executives we were

the delivery partner the delivery

drivers we were the guys that you know

packed the orders for the store and we

should do that for like 60 70 of the

time we've got some crazy stories save

that people probably with the podcast

um but that was that was the journey and

like as we were going through that we

interact with customers so much it

became clear to us that

if you really wanted to make something

meaningful and scale this we would have

to

I mean we would have to just control the

customer experience end to end and so

that's when we started experimenting

with dark stores what is the tax do yeah

so you can think about you know it's a

Dark Souls like a micro Warehouse or uh

you can think of it like a supermarket

right in the sense that you've got these

aisles but unlike a supermarket it's

tucked away in a back alley somewhere so

not in a front-facing Road and instead

of having customers moving around those

aisles you've got Pickers and Packers

that are zipping around you know packing

those how big is a typical dark stone

it's about three and a half thousand

square foot I mean we say three thousand

three thousand yeah

so we started experimenting with that

right leaks I mean not only did it help

us deliver faster short numbers

meaningfully better quality was

meaningfully better speed was in and or

at least have like a better handle on on

pricing than we initially done so how

did you go from delivering Groceries on

WhatsApp yeah did you guys start a

company where did the money to start a

dark store come from yeah I know sure so

and when we started getting like very

early traction we applied to this and we

actually met met with uh who's the first

investor in the company we applied to

this thing called um

a country capital of the fellowship and

it was a crazy idea for two kids sitting

in Bombay they basically said we'll give

you 40 lakhs for free and like no

questions on us just take 40 lakhs if

you're building something interesting

because basically so in covert a whole

bunch of people were taking Gap years

yeah start up or whatever and so these

guys had to pick five teams that are

working on something that have taken

time off of school so at that point

we're like a student focused PC fund

which I said we'll give fifty thousand

dollars to five teams that are working

on something in a gap year is this still

open can people apply I know the

fellowship is open but the fund is there

the fund is there what is it called

contrary Capital yeah okay and right

well so the guy that had invested he was

in India last weekend for the first time

yeah so that first time meeting him in

person since he put in that does he

still have Equity yeah

so he gave us basically 50k USD at a two

and a half million valuation because you

were like wow that's a bit like you were

just like that's crazy like that's

that's that we thought we were just like

putting a fast one of these guys

yeah I mean it was like we were like two

kids sitting in a living room on a

WhatsApp group chat and someone's like

okay this is two and a half million

dollars and I was like great and what

did you do with the 40 lakhs so we

started and I think like the initially

really we didn't have much of a plan it

was just like like our day-to-day was

basically like 50k like in in the early

days when you get like a pre-seed a cap

and I'm sure you know this right most of

it is just to like live so we barely

spent it how did it start skating you

had a WhatsApp group share a Punjab

it was pretty fun so I think this

investment happened in like August or

September 2020 yeah and October November

December so typically with Marketplace

businesses

um you have a chicken egg problem right

for example a food delivery business

either you have restaurants without

restaurants it's hard to get customers

and without customers is how to get

restaurants so it's like a chicken egg

problem and so we're like we have that

same thing and so we were like okay fine

which side do we solve first we said

let's solve the supply side and so every

day for those three months yeah we just

go to a different neighborhood in Bombay

like one day would be parale or borivali

or colaba if you just walk into as many

of these kirana stores yeah and try to

convince them to join as a seller over

those three months we went to every

single neighborhood you'd walk into

stores all day like morning to evening

and just do that

um

so neither of us had any sort of

background in sales but like trying to

sell software to like a banaya is

probably the best crash course in CS

that anyone is unbelievable because 10

out of 10 of them like I don't know if I

basically yeah

also forgiveness and two of them will

say okay fine I'll download your app and

by the time you walk out one of those

two is deleted yeah right and so and

they would give us feedback though on

like what they need to improve would

their margins go down versus selling

inside um yeah slightly like two three

percent yeah but who do you charge I

mean at that point

we just want to cover the payment gate

we were trying to figure out like the

different types of product market like

Commerce in retail right so one the

first core product Market fit for any

business is customer product Market fit

and then you get the economics product

market so we were just solving for

number one in 2020 how much did you sell

we hadn't launched the customer side yet

yeah like

with the app basically okay 2021 how

much do you sell so buy within 30 days

of launching 30 to 40 days we got to

about 300 orders a day

average order value yeah WTF is aov but

uh but yeah so very low average order

value but we was we were seeing product

Market fit and we talked to customers

because we would be the ones doing the

deliveries we had set up like our own

mini Customer Support Center in kv's

house and his mom was not very happy

about that 40 likes run out okay in this

process uh raise 40 lakhs and then we

kept like raising like 20 lakhs

follow-up from like a couple other other

Angel Investors in countries Network and

then when we got to like a certain scale

got to a certain level where it started

looking like you're gaining momentum we

got uh approached by y combinator so

this would have been late 2020. uh and

they would have been half a million or

something yeah it was five it was it was

125k it was 125k how does one apply to Y

combinator they have a form so they run

two batches every year January to March

and then July to September you have a

bunch of questions to fill them in and

apply yeah so and you meet them in

person in a non-covered but uh sometimes

yeah so I think the interviews are

virtual now so they have like a 10

minute interview yeah

like before covert they used to come

down the back door and do it uh but they

also do it virtually okay so 125k then

so we launched zero order sprinted Feb

is when we launched okay sorry mid Feb

yeah around that time Jan Feb so we

launched within 45 days we got it like

about 300 orders per day but when we

were doing it we realized you would

speak to customers right and they would

tell us upfront hey we're using the app

there's a lockdown we don't really want

to go out but we don't really like the

app it's not that good right uh once

this is locked out is over it's going to

go back to like buying offline

and we said so we don't need to

have product Market Fair like we had

induced product Market fit because of

like the weird circumstances and so

that's when we started talking to them

and like like that's pretty much what we

spent like a good week on just talking

to people

and we realized that okay our speed

sucked so that was one and you allowed

me to take back then 60 minutes 45 to 60

Minutes that sucked it sucked because

you know you've got the local I mean you

can just go downstairs and pick up pick

it up in 5-10 minutes otherwise right

what is the difference in cost between

delivering in two hours in 20 minutes

we're giving all the Trade Secrets like

us but we've got the the

the lower your distance per delivery you

actually get into this positive flywheel

where you're delivering faster and the

lower your distance whatever you

actually do more throughput per delivery

partner like what KB said so with the

same like if I'm paying somebody to give

you a sense right what is your last mile

cost per order it's how much you paying

a delivery driver per hour divided by

how many orders are you doing per hour

what is that typically

like varies by city but let's say 75

rupees per hour varies by City varies by

vehicle type yeah petroleum buy could be

75 other people yeah yeah other formats

would be would be different but yeah so

75 rupees per hour and if he does one

order but audio course February delivery

75 but if he's doing two orders per hour

why doesn't everybody else do this

deliver fast

I mean people are all right people are

living faster you saw the Amazon memo uh

globally right they're all pushing

foreign

we see this meaningfully in the

retention difference okay so 2021 end

2022 Financial year how much did

ready fy21 yeah nothing like probably a

couple Lacks 22. July 21 we actually

started like the first dark store and

started running the business just to

give some context end of March 45 days

into mid Feb to end of March basically

decided that okay this Marketplace model

not working and we said we'll pivot to

the Darkstar model spend a couple of

months then hiding a bit of a team

figuring it out and then July 21 is when

we launched the first tax

and yeah from July 21 to

today like about 24 months

went from order zero to to like today

north of 5 000 crore in sales

um so crazy that was crazy that's like

that's uh that is when did money come in

for the first time like serious

fundraise yeah so Nexus

um they essentially did our series a and

they were so this was actually like we

so they approached us

and we told them hey they said okay this

business is interesting what are you

doing kirana card 300 per day pretty

quickly maybe you can scale we actually

the first meeting we told them we're

going to shut this down this doesn't

work like we're talking to customers and

they're just telling us this doesn't

work right uh so we're shutting it down

and that was the first meeting like they

said we're interested in finding even we

started shutting this business down so

like don't forget us

um and then we started and then said

okay we're shutting it down what are you

gonna do and we told them that we think

this model has got better part of Market

fit and so when you walk them through

the thesis we actually showed them the

customer data they were like okay this

is exciting and that's when they funded

us so they put in

that was a 10 million series here that

they that was that this was right before

July 2021 but then it went pretty crazy

so July 21.

the first stocks to be launched in

bandra went crazy and we started growing

and these were good times we started

growing 100 a week it was like crazy how

did you match for that skill you need

physical people to deliver right yeah

yeah so or did you have idle drivers who

were delivering one order an hour and

they generally yeah

initially when we launch a dark store

but yeah so we're going 150 a week we

raised like this 10 million dollar

series a within 45 days of that again

without exact like it was crazy but

within 45 days of that we closed a 50

million dollar series B and then the

business started really going crazy this

is post-covered craziness post covert

craziness right like 150 a week 200 a

week we were like multiplying the

business every week it was it was like

it was on like we were barely sleeping

like three four hours a day without

exaggeration and then yeah like 70 days

into that

videos like the 100 million dollar CDC

and then yeah CDC it was December 21 it

was led by y combinators growth fund and

how many have you done now

we just started our fifth round

how much have you raised totally 5 30.

how does it feel to be 20 years old and

get 500 million dollars 21 and eight

days

obvious question right people must ask

you this a lot

I mean it's like it doesn't it doesn't

feel like much you've got a lot more to

do a long way to go so I know you have a

lot to do but how does 500 million

dollars feel no I mean really I mean how

much is left the last round I'm sure is

left

do you guys still have relevant

significant enough equity on the cap

table yeah I mean so the two of us own

about 25 total and on your say unit

economics say 75 rupees per hour driving

costs at some point of Time how much are

you passing on to your client today and

how much are you charging the Dark Souls

that we we work with

they do multiple times more throughput

per square foot than any other format of

Commerce in the country offline and

online so rent is a percentage of sales

for us is nothing it's one one and a

half percent so the fixed cost base is

so low because of how much throughput

that we've been able to do within the

same store because of how like how much

customer demand we see in the way that

we've designed the stores so throughput

is crazy fixed cost is very low and then

on the variable cost side which is the

last mile called solid per order costs

that's something that we optimize but we

basically like we've gotten it to a

pretty good level right now you

basically make you know margins from the

sale and we make advertising income so

like a Unilever Procter Gamble will will

you know advertise on the platform we

make a meaningful amount of advertising

income uh this is 100 margin business

because I was talking to me show and

they said delivery income is a big

portion of the revenue yeah yeah so if

you had to break up your Revenue into

four quadrants yeah can you break that

up it's three I mean it's like sales

um advertising income and delivery fees

inventory sales is like what most of it

is and then add income and delivery fees

is like between one and three percent

response yeah delivery fee is very small

so we do free delivery above 199 rupees

right so we don't really rely too much

until devices that's also because like a

market-based business I mean shows like

a zero commission business and so they

have to charge delivery so compared to

most of the formats of grocery we

actually have a meaningfully high

emergence structure and we are also

cheaper we're not as cheap as let's say

the Demons of the world

um that's very deep but we're like

meaningfully cheaper than most formats

are closely I was talking to someone

about zepto and they compared you with

dmart are you guys trying to compete

with dmart or are you trying to compete

with Commerce like because we I mean the

way that we look at it right it's like

you know this business is so tough it's

like one of those businesses where you

need to have this like insane obsession

with operating excellence and discipline

if you crack it somehow then you can

build a massive business

um if you look at what percentage is

grocery of consumption because I was

trying to work out this number 70 of

retail is whatever but if you were to

say broadly consumption let's say

Indian GDP 65 is consumption we leave

exports and all of that out 70 of 70 of

that let's say in America for example 70

of consumption or 60 is qsr if I were to

break apparently that way yeah food is

that such a big component in the US yeah

okay if I were to break that down for

India and put a tag against groceries

what percentage would it be

70. I can say the it's the majority of

consumption like so if you

X is GDP 70 of US 65 of this consumption

70 of 65 is grocery like your definition

of groceries like by dating right

perishables milk you know in some cases

meat I'm guessing organized is not more

than 10 20 organizers

all right hi I'm nikhil garmad I'd love

to know what you thought of the episode

uh comment like And subscribe and thank

you for watching