Over the last decade, much of consumer spending has shifted from offline to online with e-commerce companies such as Flipkart and Amazon leading the way.
Over the last decade, much of consumer spending has shifted from offline to online with e-commerce companies such as Flipkart and Amazon leading the way. Along with the new-found opportunities in the business-to-consumer space, business-to-business (B2B) e-commerce has also developed, led by start-ups such as Tolexo and Power2SME. In March 2016, Wydr, a B2B e-commerce firm entered the market with its transaction-led e-commerce platform to leverage this shift in the wholesale space.
On the technology front, Wydr has built a platform that is niche to the wholesale segment in the country. “The supply chain in India is extremely fragmented and Wydr is a homegrown model which is built to relieve the pain points specific to India,” said Devesh Rai, founder and CEO of Wydr.
Wydr’s services is not limited to only logistics. It serves as a marketplace where sellers can have their own online store and Wydr provides them the technology to manage their online store, handle their product management and catelogue management, among other functions.
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“When an order comes, we pick up the order from the seller and deliver it to the buyer. But we also take care of payments, marketing, post purchase and customer care,” said Rai. However, unlike B2B marketplaces such as Tolexo or Industrybuying, Wydr does not deal in office supplies or industrial goods but is looking at end-retail categories such home, fashion, mobile, and computer.
To be sure, in the wholesale market, buying and selling does not happen in a single format. It happens in multiple formats—minimum order value, slab-based, chat-to-price, unit-based pricing, lot-based pricing, etc. For each different product, the seller can select a different format.
To bring these wholesaling practices online, Wydr has deployed negotiation tools on the platform. “Small and medium sized manufactures who have turnover of Rs 50-1000 crore find it difficult to set up their sales team all over the country. So we help them reach all parts of the country via a smart chat platform that is completely secure,” said Rai.
Rai pegged the average ticket size at Wydr at Rs 15,000. Due to the large ticket size involved, most of the deals struck on Wydr involve electronic payments. Besides NEFT and RTGS, Wydr has tied up with banks for auto debit of large payments from regular buyers.
Wydr’s major source of revenue is the 3-12% commission it charges from its sellers. The start-up claims its transaction volume is growing by 40% month-on-month. Non-transaction revenue streams include stall fee from its virtual exhibition—e-fair—and advertising where manufacturers can advertise to sellers. “We are hoping that non-transactional revenue will contribute 1-2% to the total revenue pie,” Rai added.
In FY17, Wydr claimed to record Rs 100 crore in gross merchandise value and is targeting gross merchandise value (GMV) run rate of Rs 250 crore for the current fiscal year.
Wydr raised its seed round of funding in February 2016, followed by Series A round for an undisclosed amount in November 2016. Rai shared that the company is in talks with investors for Series B funding in the next couple of months. Existing investors include Jungle Ventures, Bessemer Venture Partners and Stellaris Venture Partners.
The new capital will be deployed to beef up its technology and increase its seller footprint across wholesale hubs in the country such as Surat for fashion products, Agra for leather goods, among others.