For online vendors who end up scratching their heads in confusion when it comes to reconciliation of accounts with e-commerce platforms, Ahmedabad-based start-up Don’t Scratch Your Head (DSYH) saves the day.
For online vendors who end up scratching their heads in confusion when it comes to reconciliation of accounts with e-commerce platforms, Ahmedabad-based start-up Don’t Scratch Your Head (DSYH) saves the day by automating tasks like reconciling funds, managing damaged inventory and requesting reimbursements. Operational since July 2016, the software as a service (SaaS) start-up came into being through the joint efforts of Suraj Vazirani, Hari Vaag and Sumit Karanji. Vazirani started working with Vaag on a point-of-sale (PoS) mechanism for online sales when they realised that revenue leakage was the biggest problem in online sales. “For online sellers, invoices from courier companies often did not match with the amount envisaged by them. Logistics companies were charging more than they should and marketplaces were paying less than they should. Around this time, marketplaces such as Amazon and Snapdeal were coming up in a big way, and we kept on integrating and evolving towards providing reconciliation and dispute resolution services,” says Vazirani.
Karanji joined the duo in December 2015 and suggested that the team conduct surveys on sellers. Till June the next year, the team continued conducting surveys and meeting sellers, after which DSYH was formally born. Karanji explains, “There is no chartered accountant or techperson who can help e-sellers keep an account of their e-commerce business. There is 3-10% of revenue leakage in the gross merchandise volume (GMV) of sellers but they don’t know about it, they just have a hint that they are losing money.”
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The seller pays Rs 2,999 to get onboard DSYH, and provides the API key along with the listing order, returns, payments, etc. DSYH then analyses this data and provides a reconciliation report which allows the seller to get his money back from the marketplaces. “If we don’t get a report of revenue leakage exceeding Rs 2999, we refund the entire Rs 2,999 paid by the seller,” Vazirani adds.
The start-up also functions like a fintech firm, creating a credit rating score for sellers, which further aids banks assess their risks before handing out loans. Vazirani says, “Previously, NBFCs would reduce the loan amount if they saw a seller’s sales depleting on a certain marketplace. Through our services, NBFCs can now access the entire portfolio of a seller and disburse loans accordingly.”
From three paid clients when it was launched, DSYH now has over 350 clients and an annualised recurring revenue of $500,000. It has been recognised by Amazon as an authorised service partner for accounts and reconcilliation. It has raised$250,000 from Venture Catalysts and is now talking to investors for raising $2.5 million.