Deepak Dalai

Do we already have the next Zomato ? Zepto has increased their platform fee to Rs. 9.99 i.e ~Rs.10 (Bangalore) and this is the highest platform fee for any e/q-commerce company so far. AoV (Average order value) at Zepto is Rs. 350 for which Delivery is free whereas for order less than Rs. 199 there is a delivery charge of Rs. 27 (Bangalore). Considering a near hypothetical scenario where no. of orders above Rs. 199 is 50% and below Rs. 199 is 50% and total no. of orders is 100 per day. Zepto pay nearly Rs.50 per order to it's delivery guys who delivers close to 35 orders and works on all 7 days of the week. Mon-Fri, Sat and Sunday have three different earning rates and also based on the number of orders delivered on that particular day. 1. Scenario 1: For 50 orders above Rs. 199 : Zepto fixed income is Rs. 10 per order. i.e Rs. 500 per day. For 50 orders below Rs. 199 : Zepto fixed income is Rs. 10 + 27 (delivery cost) per order. i.e Rs. 1850 per day. Total Fixed Income : Rs. 2350 Variable Income - Zepto charges upto 35% commission from some D2C brands which are onboarded recently and on top of that there is an advertising cost. For some established brands, the commission is also lesser like 15-20% range Assuming Blended margin to be 25%, earning from commission on AoV of Rs. 350 is Rs. 87.5 per order. This equates to Rs. 8750 for the assumption of 100 orders. Total Zepto earning : Rs. (8750 + 2350) = Rs. 11100. Zepto's cost of Delivery : Rs. 50*100 = Rs. 5000 (higher side) Profit at Unit Level = Rs. (11100 - 5000) = Rs. 6100/100 i.e Rs. 61 per order. Additional Income : Partner Advertising Income, Listing Fee, Third Party Advertising like Credit Cards etc. Additional Cost : Dark Store Operation, Employee Salary, Server Cost and many things. If the volume doesn't show de-growth and they keep introducing private labels like "Relish Chicken" which has a higher margin. Zepto can be the next Zomato. Antithesis : There is a de-growth already in the D2C space. Due to funding crunch and path to profitability, offers are drying up leading to de-growth of the entire space. If this is actually happening and keeps on declining, Zepto has a problem in hand as these D2C brands are the major spender on Quick Commerce. Quick Commerce is not as bad as it was portrayed 3 years back. It grew on the back of these D2C brands and eventually accepted by Legacy and established brands as well. #entrepreneurship #technology

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Blinkit : 693 RPM (Rakhis sold per minute) Zepto : 1 million lifafas, 4x vs last year Swiggy Instamart : 5x vs last year 👉 As Raksha Bandhan approached, the familiar buzz of last-minute shopping filled the air. But this year, something was different. Blinkit reported an astounding 693 Rakhis sold per minute, Zepto shipped over a million lifafas (envelopes) while selling four times more Rakhis than last year, and Swiggy Instamart saw a fivefold increase in Rakhi sales. 👉 These numbers tell a compelling story—quick commerce (q-commerce) platforms are no longer just a convenience, they're becoming a lifeline for our festive traditions. In the past, many of us would have rushed to the nearest market, weaving through crowded lanes to find the perfect Rakhi or gift. 👉 But with the rapid growth of q-commerce, those frantic trips are being replaced by a few taps on our smartphones. It's not just about convenience; it's about how these platforms are reshaping the way we celebrate, especially for those caught up in the hustle of daily life. 👉 The story of Raksha Bandhan this year is not just one of sibling love but also of technological innovation meeting cultural need. Q-commerce has bridged the gap between our fast-paced lives and our timeless traditions, ensuring that no matter how busy we are, we can still celebrate our bonds. 👉 These are not just transactions; they are moments saved, relationships nurtured, and traditions upheld. As q-commerce continues to evolve, it’s clear that its role in our lives extends far beyond convenience—it's becoming an essential part of how we connect, celebrate, and cherish the things that truly matter. We at ProRider (Delivery Jobwala) support this convenience with tech enabled manpower hiring, we are helping food-tech, e-commerce and courier companies PAN INDIA 🇮🇳 #manpower #rakhi #quickcommerce #vendor #GIG #ProRider

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Uber One: An experiment for dynamic priced mass-premium service for the value conscious Indian users There's a lot of debate around 'value conscious' Indian customers, and to serve them better, Uber just launched a new subscription program called 'Uber One', a mass-premium service that is more nuanced than a direct premium service competitors like Shoffr. Quick overview of Uber one: It is offering up to 10% Uber one credits, prioirty support, zomato gold for 3 months, and top rated drivers! To understand 'mass-premium', let's understand the user segment: - Frequent urban commuters who use Uber 3-4 times per week - Value-conscious professionals seeking predictable ride expenses - Cross-platform users who utilize both rides and food delivery services But the most interesting thing is the subscription price: Uber introduced a dynamic city-based pricing that indicates market testing. What it means is there's a different price for difference city. For Kolkata, the subscription fee is around 99 rupees/month where as in delhi it is priced around 49 rupees/month Now Let's dig deep into this positioning to understand the intent behind 'Uber one' - Creating a middle-market loyalty program rather than competing with ultra-premium services - Focusing on increasing usage frequency and cross-platform adoption - Building an ecosystem play rather than a pure premium service offering - Targeting value-maximizing regular users rather than luxury-seeking customers But why now? Let's understand how is Uber doing as a business? and we may get a clue! - Record-Breaking Growth - Uber achieved its first GAAP operating profit exceeding $1 billion - 20% year-over-year increase in gross bookings - 82% year-over-year growth in Adjusted EBITDA to $1.4 billion This seems the perfect timing, right? And on top of that: - 25 million Uber One members globally - Global Uber One members spend 3x more than non-members - 70% year-over-year growth in subscription base And even on top of that, the competition is on fire: - Rising competition from Google-backed Namma Yatri, which recently Secured $11 million in funding - Emergence of specialized players like Rapido, which recently achieved unicorn status with $120 million funding But as any other experiment, it has a room for improvement. Personally I would recommend: - Pricing Strategy: Implement consistent pricing across cities to reduce confusion. Create tier-based subscription levels based on usage patterns. Offer flexible subscription periods beyond current monthly/annual options - Product Enhancement: . Introduce city-specific benefits for different city-wise user segment rather than one-size-fits-all approach

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"Startup Leadership Shift: Dunzo's CEO Kabeer Biswas Steps Down 🚚 In a significant move for India's delivery ecosystem, Kabeer Biswas is exiting Dunzo, the Reliance-backed startup he co-founded. This transition comes amid challenging financial circumstances for the delivery platform, signaling potential strategic restructuring. The startup world is constantly evolving, and leadership changes often mark critical turning points for innovative companies. Biswas's departure highlights the intense pressures facing tech-enabled delivery services in a competitive market. Intrigued by the latest startup dynamics? Dive deeper into the full story and industry insights! #StartupEcosystem #IndianStartups #TechInnovation" Call to Action: Read the full analysis → https://lnkd.in/gbyJHu7w

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The New Capitalism Just Created 500 Crorepatis And it's not what Marx or Adam Smith imagined... Swiggy turned 500+ employees into crorepatis overnight. But I think this is bigger than that. This is Capitalism 2.0 emerging: The Old Way: → Capital owned by few → Workers just earn wages → Wealth stays at the top The New Reality: → Employees become owners → Value flows to creators → Wealth spreads through merit Look at this transformation: • Zomato: $1B in ESOP pool at listing • Airbnb: 900+ millionaires • Amazon: Employee wealth exceeding nations Yes, I know - this isn't everyone's reality. Most companies aren't there yet. Many workers still struggle daily. But this is why it matters: It shows what's possible: When companies think long-term When value is shared fairly When merit drives wealth This isn't socialism. This isn't traditional capitalism. This is Participatory Capitalism: Where growth benefits everyone involved. The reality? We're in transition: → Some companies lead → Many will follow → Others will resist But every economic revolution started somewhere. And this one's already showing results.

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𝐃𝐨𝐞𝐬 𝐙𝐞𝐩𝐭𝐨'𝐬 $5 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐦𝐚𝐤𝐞 𝐚𝐧𝐲 𝐬𝐞𝐧𝐬𝐞? 𝐇𝐞𝐫𝐞'𝐬 𝐰𝐡𝐲 𝐈 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐢𝐭 𝐝𝐨𝐞𝐬! Zepto's recent $340 million fundraise at a $5 billion valuation is a bold investment on Indian urban consumer. But why are VCs willing to pay such a high price? In my view, it's all about "𝐜𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐞𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞". We're seeing a shift in consumer behavior, especially among the top 1-2% of urban consumers. This shift towards quick commerce seems irreversible, and over the long term, if consumers continue to pay delivery charges, this deal could be a real bargain. Fundamentally, ecommerce grew big because of 3 reasons. Consumers want cheaper goods, high selection and at a faster pace. Quick commerce, ticks two of these points and is already offering large enough selection for daily needs. Here's how I see Zepto compared to DMart: Zepto is currently at $1.5 billion annualized sales rate, 400 dark stores. Raised $665M at $3.6B valuation in June 2024, followed by $340M at $5B valuation, 3.3x annual sales. DMart (2017): Raised 1870 Cr at ~$2.7B valuation, ~1.6x annual sales. Currently valued at ~$38B with 5% profit net margins. Current sales are at $6 B. So why are the VCs betting so confidently on Zepto? Quick commerce growth rate is outpacing traditional retail. Zepto can personalize at scale—higher SKU count leads to better experiences. Higher margin products give them an edge over brick-and-mortar stores. Sure, the next 3-5 years will require substantial burn, and competition will increase, driving up CAC. But early entrants like Zepto have an advantage in forming consumer habits. If they can continue delivering and eventually pass delivery charges onto customers, Zepto's cost structure could align with larger brick and mortar players. Indian retail market will hit 1 Trillion USD by 2027 and there is enough space for all forms of organized retail players and unorganized too. IMO, no format will get disrupted but quick commerce will be a niche of it's own, possibly grabbing some share from ecommerce. What do you think about the deal? ---Kindly note that these are my personal views and do not represent my employer's views.

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Big Shift in Swiggy’s Strategy: From Super App to Super Brand Yesterday, Swiggy’s share price jumped 6%, reflecting a significant pivot in its strategy—from a Super App model to a Super Brand approach. This week, Swiggy launched 3 standalone apps: • SNACC: Focused on 15-minute food delivery. • Pyng: For professional and home services. • Instamart: (Still a work in progress). Will this be game changer? 1️⃣ Strategic Parity with Zomato: Until now, Swiggy followed a Super App model, housing Instamart, Genie, DineOut, and other services under one roof. Zomato, on the other hand, pursued a Super Brand strategy, with separate apps for Zomato, Blinkit, and other verticals. With this move, Swiggy and Zomato are now aligned in their approach, leveling the playing field. 2️⃣ Quick Commerce’s New Frontier: Zomato’s Blinkit launched Bistro, a standalone app for 10-minute food delivery, back in Dec ’24. Zepto has been running Cafe as a separate app since April 2022. Now, Swiggy has joined the race with SNACC. All three quick commerce giants are doubling down on the 10-minute food delivery segment, each with a dedicated app, team, and P&L to drive this opportunity. What Stays from Swiggy’s Super App Strategy: Despite the shift, Swiggy is retaining some Super App elements: (a) Instamart will remain accessible within the main Swiggy app, even after its standalone launch. (b) Initiatives like Bolt and Cafe continue to operate within the Swiggy app, instead of merging with SNACC. ➡️ The quick commerce space is turning into a battleground of strategic innovation. The moves we’re seeing are nothing short of 4D chess, with something new happening every day. Why Swiggy made this move?

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Who would invest in founders who have wasted $50M? Koo, an Indian microblogging platform, recently shut shop after raising $50M in capital. Everyone has their views on why Koo failed. IMO, the biggest reason behind its failure was a lack of PMF (Product Market Fit). Koo spent much money on marketing and didn’t build a product people wanted. It kept harping on nationalism, a Twitter for Indians, made in #India. This approach failed. However, this doesn’t mean Koo’s founders aren’t smart or intelligent. I wrote in an earlier post that we shouldn’t be surprised if Koo’s founders raise fresh capital for a new startup. To many of us, this might seem grossly unfair. Millions of smart, hardworking founders are struggling to raise capital while investors are backing failed founders who have wasted millions of dollars. How is that fair? It confirms the widely held belief that the #venturecapital industry is broken and corrupt where a few people with the right connections get all the capital while others don’t see a dime. It shows that the VC industry is a closed group, a cabal where who you know matters more than anything. While these are just complaints, most people who criticise VCs don’t understand how startup investing works. VCs welcome failures. They embrace them because they know failures are inevitable. When VCs invest in 20 #startups, they know 15 will fail. The goal is to invest in startups that can give them a 100x return. Failures are part of the game. They are unavoidable. The aim is to back founders who can build such 100x return companies. Hence, failures are not looked down upon in the VC industry. It’s similar to the American culture where society appreciates the people who take risks, and it easily accepts personal bankruptcies that result from this risk-taking approach. There’s no taboo in failing in the USA and the VC industry. I’m sure Koo’s founders have learnt from their mistakes. It’s an expensive mistake and not everyone is so lucky to have this luxury to spend $50M on their education. ;) However, most VCs will back Koo’s #founders because these founders know how to raise capital and they know how to not build and scale tech companies. Their past failures have improved their chances of future success. In the VC industry, Failure is Good.

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Zepto should stop charging rain fees if it's not raining(never seen it in other apps) Also, free delivery should be pre-selected if applicable(Guidelines for Prevention and Regulation of Dark Patterns, 2023) This will not go unnoticed #zepto #darkmethods

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Why should you do need based segmentation for your products: You use Zepto/Instamart/Blinkit because you want convenience and want to save time than taking a round to near by grocery store.You don't use such services because you are a Male/Female in age bracket 25-35 with INR XXX as monthly income. So rise above demographic/psychographic attributes while segmenting your users and focus on need based segmentation to really address needs of your users.

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Hey PMs, Zepto added Vicks Drops to carts for free. But why? 🤔 The Cart Product Manager at Zepto must have targeted the below metrics 👇 1. Customer Retention & Loyalty: Free samples enhance shopping experiences, fostering repeat purchases. 2. Average Order Value (AOV): Increased perceived value nudges customers to add more items. 3. Conversion Rate: Free items can push hesitant shoppers to complete purchases. 4. Product Awareness: Introduces new products cost-effectively. Why it Works: 1. Promotional Partnerships: Leveraging brand collaborations to add value. 2. User Engagement: Surprising customers with freebies creates positive experiences. 3. Inventory Management: Efficient way to clear stock and promote new items. Kindly ensure it enhances user experience without being intrusive. 📈 What's the takeaway for you ? Let's discuss! Have you implemented similar strategies? Share your thoughts! 💬👇 #ProductManagement #Ecommerce #CustomerExperience #GrowthHacking #Metrics #UserEngagement

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Can you think of a business that runs on a 0-day working capital cycle? PharmEasy saw a 90% valuation cut last year, from its peak of ~$6B. Practo, and MFine are also struggling. Online medicine delivery is tough because, unlike #ecommerce , people don’t buy medicines for discounts. It is a very high-trust transaction, hence offline any day triumphs. That’s why most #medicine delivery startups have started to foray into a slightly higher margin and to some extent broken #business : Lab testing. Pharmeasy had acquired Thyrocare to up its lab testing game. You would get a lot of promotional messages on Practo, MediBuddy and other teleconsultation #apps to carry out tests from their app. But if one player has cracked and monopolised this #market, it is Dr Lal Pathlabs. Dr Lal PathLabs has ~6000 diagnostic centres across India that provide 5000+ tests. Out of these ~3000 tests no other path lab provides(high EBITDA margin). It does about ~Rs 3000 Cr in revenue and is a market leader in lab testing and pathology #business. So how Dr Lal manage to do so? Lab testing is an extremely fragmented market with local players almost holding ~85% of the market. It is also a very difficult business. Unlike the US, where it's more of a B2B business and insurance companies directly tie up labs and strike bulk deals. India is a B2C #market, where most of the time the final consumer pays for every test. Hence managing working capital is difficult and critical. That’s where Dr Lal triumphs. Working Capital Cycle is: Average Receivables Period + Average Inventory Period - Average Payables Period A longer cycle is not favourable for any #company because it ties up capital for a long time without generating any return. Receivables are solved because every time you take a test, you pay money upfront. Hence it is 0 in most cases. Managing inventory is very tricky. Every test involves 3-4 inventory items. For 5000 tests across 6000 centres becomes a herculean task. Dr Lal follows a different model. What it does is, it aggregates demand from a bunch of its test centres and then places a bulk order. Its #technology allows to get a real-time analysis of inventory across each of its centres. Hence with so much data it predicts the combined inventory required across, multiple centres and gives bulk order. Since it gives such large orders, it is able to strike deals with suppliers for larger credit cycles (larger payable days). The higher days of inventory is compensated by a higher payable day. Hence it is able to operate at a 0-day working capital cycle, compared to its competitors with 15-20 day cycle. It is also a formidable #wealth creator. It operates at an ROCE of 20-25% and has almost tripled its stock price in the last three years. Do you think the new-age teleconsultation/medicine delivery #startups will be able to compete with Dr Lal Pathlabs? #kneeledge

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Tomorrow. 7 PM Onwards. Product Managers & Founders...You're invited. Learn to Measure the Product Market Fit (PMF) of your Product. With Arun Aryasomayajula AD- Paytm, ex-Uni Cards & MakeMyTrip Key Highlights * Defining MDP that your users love. * Learn how to measure the PMF of your product. * Beyond the Hype: Real Signs of Product-Market Fit Examples & Case Studies * How Uni Pay 1/3rd card achieved PMF within 6 months of its launch into the Indian Market.  * How MakeMyTrip gained 10 Mn new users using virality on WhatsApp. When: 30th May, Thursday Time: 7-8.30 PM (Post office timings) Where: Google Meet Join us. Signup link in the comment section! #productmanagement #productmanager #pmf

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Indian venture market has exploded. Someone reported that there are 800+ funds/networks/syndicates/ accelerators active in Indian venture market now. Not sure, if that number is correct but if you are an early stage tech founder on your fundraise journey, chances are, you would meet hundreds of people. While majority of the fund houses are doing incredible work and shaping the ecosystem. There are certain kinds of investors you need to identify & avoid to save time and stay focused: Sharing from my personal experience, top 5 such cohorts to avoid and the takeaways for the founders: 1. Data collectors: At early stage, you don't have historical data to present. Your projections are just that, Projections. I wasted one whole week discussing with a prospective angel investor on why the CLTV to CAC ratio is x, and not y. Takeaway: Discuss high level strategic numbers only without going into the details. None of the projections would be accurate anyway when rubber hits the road. 2. Document collectors: Met few folks, who would watch from the fences and ask for n number of documents, data rooms, statements without sharing the purpose of the ask or even revealing their investment intent. Takeaway: It is supposed to be a bi-directional conversation. Say 'no' often, till the time, an official relationship is established. 3. Valuer (! investor): At early stage, valuation is a function of multiple parameters, the opportunity itself, the team, or anything else except steady cash flows, because you don't have much. I wasted another week with a prospective investor trying to justify valuation, had to shut down that conversation, after both of us started quoting Aswath Damodaran and his valuation principles. Takeaway: Too much content on the internet for both parties anyway. Shouldn't be a bone of contention at early stages. 4. Facilitators posing as investors: Met numerous people, who would go to any lengths to pose themselves as serious investors, even buying paid media articles. Only to reveal at the last: The success fee. Takeaway: Avoid facilitators until Series A 5. Brokers posing as market makers: People posing as market makers sharing tons of gyaan on LinkedIn but are actually deal brokers looking to make quick %. Personal experience: Two rounds of conversation happened and then out of blue, they added a third party in the mail trail, someone who facilitates mergers & acquisitions. There wasn't even a single instance in the past conversations where we indicated any such intent. Takeaway: Avoid name & shame in public but at least share within founder communities. #venture #fundraise #startups #investing

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"Ye maine theek toh kiya na....?" Every founder’s toughest battle? Self-doubt. As a founder I go through a series of doubts often: "Did I push the team too hard today?" "Did we make the right call on hiring or layoffs?" "Could I have handled that better?" I feel self-doubt keeps me in check and also keeps me sane! To every founder: you’re not alone in this. Keep building, keep learning. What are your thoughts around this? #startup #doubts #entrepreneurship

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