Launched in August 2020, the social ecommerce platform eyes Rs 20 crore as revenue
Kiko TV registered a 30% month-on-month increase in its user base with 40% of them being repeat customers.
If anything, 2020 was the year of digital, so-much-so it would be fair to say that e-commerce sites hit a jackpot in terms of sales. Cashing in on the same, social e-commerce platform Kiko TV aims to close FY21 on the back of gross merchandise value (GMV) worth Rs 20 crore. It should be noted that last year, the company pivoted from being a short format video app to a social e-commerce platform. “After the lockdown, buyers looked for native shopping experience which could match the experience of shopping in a mall. Therefore we provided a live two-way interactive shopping experience to consumers. This allowed customers to chat with sellers at the time of shopping,” Shivam Varshney, co-founder and CEO, Kiko TV told BrandWagon Online. At present, the company claims that the majority of its revenue comes from video monetisation and commission fee, each accounting for 50% of the revenue. Subscription fees are negligible currently.
Rolled out in August 2020, the platform claims to have recorded 1,20,000 downloads with 90,000 monthly active users. Registered daily active users stood at 20,000 during the festive season between October-November. As per Varshney, Kiko TV registered a 30% month-on-month increase in its user base with 40% of them being repeat customers. “Before the festive season, the installs were lower so the DAU was about 14,000. However, post festive season, on the back of an increase in app installations, our DAU recorded a rise. As of December, the DAU is between 20,000-22,000,” he added.
According to the company, that platform has over 50 verified sellers on the platform besides partnerships with Myntra, Flipkart and Amazon. At present the 70% of the goods are sold on its own platform, claims the company while the rest 30% goods sold belong to large marketplace partners, besides smaller affiliates. For this, the platform charges a commission from third party sites or affiliates ranging between as low as two percent to 12% on every purchase. As for in-house sellers, the platform either charges a commission fee or a monthly subscription fee, depending on the profit margins earned by the sellers. “For a high ticket size consumer electronics product we charge Rs 1-2 lakh as monthly subscription fee from sellers as they are unable to clock high profit margins on the sale,” Varshney said, adding that for high margin grossing sellers the platform charges 15-25% commission fee.
According to the company, electronics and lifestyle products– consisting mostly of apparel– accounts for 30% of overall sales, each, on the platform. The rest is split between health-care, kids, home and kitchen appliances, among others. While the average ticket price (ATP) of apparel is Rs 550, electronic products is more. “Our product range is now electronics that mostly sell due to impulse purchase and the average ticket size is Rs.770. As we add more expensive products, this is expected to increase,” he stated.
Additionally, as a live-streaming shopping app, Kiko TV, claims to upload nearly 1,000 videos of 30 seconds on its platform everyday from influencers, sellers and user generated content (UGC). As per the company, with the help of their auto-tagging tech, the platform traces products shown in a video and provides similar products to the users from its inventory. “Through this tech, we are able to monetise entertainment videos by showing related products in the video as shopping options. Purchase of these products generates revenue for us,” he explained. Currently, 50% of the video uploaded on a daily basis is created by users and the rest 50% is from sellers who showcase their products via videos.
Smooth Tag Technologies Pvt. Ltd, which operates Kiko TV is already in the process of closing its second round of funding for this fiscal from a clutch of investors. Flushed with fresh funding, Kiko TV claims to have spent Rs 2.2 crore in marketing in the current fiscal. Of this Rs 1.5 crore was spent on customer acquisition (CAC). Further, the company plans to double its marketing spend in the next fiscal. It also plans to enter international markets post it gets its three patents- Auto Tagging, P-P Voice Chat room and Multi streaming- approved. “Currently we aim to get two million users on our platform and when we get the patents on our technology approved, we will go full throttle on marketing in India and widening our business horizons in the foreign markets,” Varshney stated.