Satvacart.com, an online grocery retailer, has achieved a unit level break-even within 12 months of its launch, fuelled largely by its prepaid subscription model. Following the model of US-based FreshDirect, Satvacart has restricted its services to its home turf — Gurgaon.
“We plan to expand our operations horizontally within Gurgaon and are in no hurry to enter into multiple cities. Gurgaon being a Rs 3,600 crore grocery market per annum is a very lucrative market to make our business EBITDA neutral,” said Rahul Hari, founder and CEO, Satvacart.
In addition of its subscription model, which gained 700 sign-ups in 45 days, Satvacart also runs its private label Satva Special to further improve margins in fruits and vegetables and helped the grocery e-tailer achieve delivery break-even.
Amid slowdown in the food-tech business where food-tech start-ups such as Grofers, Zomato and Foodpanda scaled down their business, Satvacart launched its subscription and private label to build a sustainable business.