Hyperlocal model may not have turned out to be viable for grocery players such as PepperTap, Localbanya, Ola Store and Flipkart's Nearby...
Hyperlocal model may not have turned out to be viable for grocery players such as PepperTap, Localbanya, Ola Store and Flipkart’s Nearby, leading all of them to shut shop, but Neeraj Jain, co-founder of Zopper, hyperlocal for home appliances, expects to double its GMV (Gross Merchandise Value) to $200 million from $100 million as of May 2015.
As of March 2016, Zopper clocked GMV of $96 million from 3,50,000 orders, according to a company’s presentation, which says that 58% of the orders are delivered within 24 hours while 39% get delivered a day later and 3% order took more than two days to get delivered.
Zopper is currently present in 26 cities but over the next 3-6 months it will be moving beyond the capital and metro cities and expand to 25 more cities including Rajkot, Baroda, Nagpur, Nashik, Mysore, Visakhapatnam, Kochi, Raipur, Jalandhar, and Amritsar, Jain added.
In 26 cities, Zopper has a merchant base of 15,000 retailers which is expected to reach 25,000 with expansion to 25 more cities. “We will be entering smaller towns and cities in partnership with larger retail chains such as Croma, Reliance Digital, Spice, Mobile Store, etc,” Jain added.
Zopper clocks 1,000-1,200 orders with an average ticket size of Rs 13,000-Rs 14,000 daily, according to Jain.
Commission and extended warranty services led a large portion of Zopper’s revenue. “We earn commission on transactions that are processed through Zopper which is between 2-4%. In addition, we charge the buyer through our extended warranty services – Zopper Assure where the buyer is charged 8% of the product value for one additional year and 12% for additional 2-3 years.” Jain said.
Zopper claims to be making positive gross margins on its e-commerce platform. “All the direct cost associated with the fulfillment of order such as delivery, payment, packaging are not incurred by us,” Jain added.
Zopper does not plan to build its own delivery fleet and will continue to leverage the logistical strengths of delivery partners such as Blue Dart and Roadrunnr.
In FY15, Solvy Tech Solutions, Zopper’s promoter company reported total revenue of Rs 3.7 crore against Rs 2 crore in the previous year. Its losses grew four times to Rs 12.6 crore for the year, according to company filing with the registrar of the companies.
Zopper is only available on mobile – app and web but Jain hinted towards launching its desktop version which will be live in 3-4 months to enable better discovery and research for the buyer. Recently Myntra relaunched its desktop version to recover the drop in customers after it went mobile-only in May 2015.