ShopX

ShopX is India’s fastest growing B2B e-commerce platform that provides significant
benefits to retailers across India. Founded in 2015 by Amit Sharma and Apoorva Jois, the
company is on a mission to organize commerce through technology to make it accessible and
valuable to everyone. ShopX deeply values the long-term sustainable, economic and social
impact that it can have in emerging economies like India. ShopX’s proprietary technology,
when partnered with a retailer, transforms the retailer into a technology-enabled platform that
allows him to service his many customers in more engaging ways. The retailer has access to
new products, new services, and platform services through ShopX app. ShopX has
empowered 1.7Lakh+ retail partners across 440+ towns in 24 states, serving more than 8
million customers. The company is helping to expand the overall addressable digital
commerce market size significantly.

In one year of its existence, ShopX has empowered 40,000 retailers across 200 towns
in 10 states. Based in Bengaluru, the technology startup aims to provide the 600-million
middle-income population in India (as against the current 50 million active internet buyer
base) access to digital commerce. The ShopX retail app enables retailers to offer products and
services to their customers by listing the products and daily deals. SHOPX has so far
empowered 49,000 small retailers in 230 towns across 10 states in the South and West of
India. SHOPX aims to provide the 400-million middle-income population in India access to
e-commerce through its retailer network.
ShopX is building an India-centric infrastructure for commerce for the "next 400
Million" people. It believes that the next wave of growth and market expansion for digital
retail in India will come not from the traditional e-commerce model, but rather from a new
"digital offline" model which has the potential to be around 20% of the $1.5Trillion
consumption space.

In this model, ShopX is targeting to enable 1 Million Small Retailers as digital hubs for
ordering, delivery, returns and customer service for 400 Million consumers. The model
combines themes of aggregation of small businesses into a network, enabling B2B and
B2B2C Commerce and Credit, backed by a scalable and sustainable business model, and
technology led platform thinking.
Building technology:

The role of ‘Smart Technology’, a retail network management app which manages
day-to-day transactions between all the members in the retail network. It monitors real-time
money transaction, order performance, and first to last mile logistic management. The Smart
technology is typically used to onboard retailers, select the store type, and ensure a certain
gap between selected stores in a given city. We collect the right information about them like
identity, Aadhaar card, photograph, location, and the app catches latitude and longitude of the
store. The app also maintains the retailers’ account, receivable and credit, debit and ledgers.”
ShopX's customer app allows customers to browse through the list of products in their nearest
retail store. The app even enables users to place orders offline and view great deals and
offers. ShopX manages the logistics and has tied up with BlueDart and FedEx. There is no
customer acquisition cost. The retailer does the initial marketing for us by introducing our
platform to their regular customers,”

Revenue model:

ShopX generates revenue on the marketplace side and gives some of that to the
retailers, keeping the rest as margins. The profitability number of ShopX is 60–80 percent,
better than traditional digital commerce. At present, ShopX has a GMV of Rs 100 crore, with
a month-on-month revenue growth of 100 percent. It's prepaid model allows retailers to
deposit cash in a wallet. The startup has more than 100 brands in its portfolio, including
Patanjali, Samsung, Micromax, Karbon, Lava, Levi’s, and Puma. At present, ShopX
performs more than 20,000 digital and physical transactions a day. With a team of 100
members, it aims to reach more than five lakh retailers.

Market overview:

The Ministry of Micro, Small and Medium Enterprises reported that there are 36
million small units in India. Most of them are buyers and sellers of various industrial goods
contributing to the growth of B2B e-commerce. According to consultant firm Ecumen.in, the
B2B segment in India is set to grow 2.5 times and is expected to touch Rs 45 lakh crore by
2020. To address the growth of this market, a few startups have emerged in the past few
years. Delhi-based Industrybuying.com is an online marketplace selling industrial products to
SMEs as well as large businesses. In January, it raised Rs 12 crore. Bengaluru-based
StoreKing, leveraging the power of the vernacular, has introduced more than one million
villagers to the world of online shopping. Gurgaon-based Power2SME is an online buying
platform that caters to manufacturers for the supply of steel, chemicals, and polymers.

Challenges:

Lack of technology support:

Despite increasing adoption of mobile devices for in-store employees, retailers still
face major challenges blocking them from getting the most out of the technology, including a
lack of proper applications and lack of staff to help manage the devices, according to a survey
from IHL Group and Stratix, a provider of managed mobile solutions for organizations.

Limited inventory:

Due to limited inventory and lack of inventory management are the worst nightmares
of a retailer. This problem can be solved by inventory management tools or using modern
inventory systems.

Lack of supervision and assistance:

This problem arises due improper supervision and lack of proper conversation
between management and workforce. This problem has adverse effect on efficiency on store.
ShopX funding:

Bengaluru-based B2B ecommerce startup ShopX has raised Rs 10.67 crore($1.4

Million) from Rajesh Ranavat, Managing Director of its existing investor and shareholder
Fung Group's investment arm FX Pte Ltd — Li and Fung, and his wife Sandhya Ranavat.
The round also saw participation from Kewal Krishnan Nohria, the former Chairman of
Crompton Greaves. In total, ShopX has raised $53 million till date.

ShopX works with brands across FMCG, electronics, and lifestyle sectors and is keen
to build a scalable Operating System for retail, to power merchants and customers. Despite
being headquartered in a metro, its model has captured a large market of Tier-II and III retail
space.The startup has been growing in double digits month-on-month, focusing on profitable
growth. ShopX reports to have achieved an annual GMV of $900 million as of December
2019, and is planning to cross $1 billion soon.

ShopX’s vision for a cash-lite society:

Due to following reasons ShopX’s vision for cash-lite society is important:

 The ease of interoperability

 Seamless usability
 The choice of payment for online transactions
 The adaptability
How it works:

SHOPX is a Retail Operating system, where Brands, Retailers, and Consumers are connected.
Our state of the art technology can manage over 5,00,000 transactions per day and powers a
deeply integrated supply chain.

ShopX Business Model

SHOPX is a Retail Operating system, where Brands, Retailers, and Consumers are connected.
Their state of the art technology can manage over 5,00,000 transactions per day and powers a
deeply integrated supply chain.

ShopX generates revenue on the marketplace side and gives some of that to the retailers,
keeping the rest as margins. Amit claims that the profitability number of ShopX is 60–80
percent, better than traditional digital commerce.
ShopX uses O2O business framework because with the exponential growth of smart
handheld devices and social communities, mobile commerce, social commerce and proximity
commerce are also created in the last decades.O2O e-commerce mode is a combination of
offline business opportunities with the Internet. O2O e-commerce platforms attract customers
online, but the real consumption of services must be experienced by consumer’s offline.

Online customer acquisition is a continuous process. As the digital channel is

evolving, the alternatives are also popping up and offering a lot of opportunities. There is
huge digital vacuum especially in country like India; this might not be true to evolved
markets such US and Europe.Taking an example of how a lot of people have substituted TV
with Youtube. Hence, it can be seen that occurrence of digital alternatives offering
incremental opportunity to new brand/ entrepreneur. This digital realm is new and not much
explored by anybody. “

Omnichannel is the key to success; however, online channels play a quintessential

role in establishing the identity of the brand which ultimately helped our offline channel.”
Also that data received from offline channel much more precious. Omnichannel offers better
insights to retailers so they can solve perennial problems. On other hand, Omnichannel
allows customers to communicate with brands more effectively.

Building largest e-commerce network:

Their presence in 460 towns across 24 states has enabled us to serve more than 15 million
consumers across India.
 Empowering Retailers with Technology:
Retailers are the trusted neighbourhood people at the centre of India’s economy.
Every small retailer can get the prestige, advantage, and commercial success of a
supermarket without any extra real estate investment, stock procurement, and stock
management.
 Diverse Product Portfolio:
Larger range of products, better availability, better margin.
 Lower investment in inventory:
Invest less per product, rotate your working capital faster and better across multiple
products.
 One-stop Shop:
Enhanced set of categories. SHOPX offers digital services like DTH / mobile
recharges, ticketing, utility bill payments and physical services such as mobile and
accessories, FMCG, home products and others.
Offerings:

SHOPX offers a wide range of products in categories such as FMCG, mobile phones,
and accessories. SHOPX also offers digital services including mobile and DTH recharge,
bus/flight booking, and utility bill payments. The platform provides credit options to potential
retailers through SHOPX SUVIDHA

Physical products:

Digital servicers:

Others: