BOfa has come up with the findings. Then quick comerce  is on its death bed.

Consultant

Welcome to Retail Therapy's Private Community

Quick commerce to grow from $2.8B today to $22B by 2027

Corporate Strategist

Quick commerce to grow from $2.8B today to $22B by 2027- Grapevine

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Go ahead, ask if we pushed founders to commit fraud.

AMA: Worked at tier 2 VC - got in post a few years of workex and a tier 2 Indian uni

What stops you from *stealing* an idea that you found mind-blowing from a pitch of a startup trying to get a seed funding?

Software Engineer

Founder

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All the naysayers who said this is ridiculous will slowly be proved wrong

This is BIG. Such bullishness on quick commerce.

Growth Manager

Welcome to Indian Startups's Private Community

- 42% of this will be Grocery, followed by Fashion at 24%
- 65% of D2C brand sales expected to be driven by Marketplaces (as they are today) 
- Today, 92% of retail is offline. By 2027, 89% of retail will be still offline (fair)

India D2C market expected to go from $16.9Bn in '23 to $61Bn in '27

Software Developer

Unacademy’s FY23 Loss Falls 41% To INR 1,678 Cr, Posts INR 907 Cr Revenue

Unacademy’s Loss Falls 40% FY2023

Saw a thread by Deedy, praising qCommerce in India, and then saw few replies telling why it would/wouldn't survive in future? Thoughts...

Link to Twitter thread: https://twitter.com/debarghya_das/status/1739661699601617252?t=bJe2nzghhtc5jpsXrNWnQQ&s=19

Will quick commerce eventually die in India, like it did in USA?

- **Yulu** reports crossing **$30M ARR** and turning **EBITDA positive** due to increased demand for quick commerce and supportive government policies.
- The company, with over **40,000 electric vehicles**, plans to deploy **100,000 EVs by 2025** and raise **$100M in Series C funding** for expansion.
- Last year, Yulu raised **$82M in Series B funding** led by US-based Magna International and Bajaj Auto.
- Yulu facilitates over **20M deliveries per month**, saving 30-40% cost compared to traditional fuel vehicles.
- The company's growth is supported by its battery-swapping network, **Yuma Energy**, and partnerships with quick commerce players like Zomato, Zepto, Blinkit, Swiggy, among others.

Source: [Inc42](https://inc42.com/buzz/yulu-turns-ebitda-positive-breaches-30-mn-arr-on-rising-quick-commerce-demand/)

Yulu Achieves $30M ARR and EBITDA Positivity Amid Quick Commerce Boom

Journalist

While I'm proud of these two revolutionising the quick commerce space, I somehow have a bad feeling about this

Profits aren't coming, money is flowing
Don't know what the VCs are seeking?
Why bake a a pie that you can't eat later?

Too much money too soon, where have we seen that?

https://economictimes.indiatimes.com/tech/technology/non-grocery-items-deliver-bright-growth-to-dark-stores/articleshow/109226337.cms

Quick commerce is fast evolving from a BigBasket/Kirana alternative to an Amazon alternative 💪🏻

Product Marketing Manager

Being an investor in equity markets, i was aware of the fact that US market will crash as the free money by fed draws back. I obviously was not able to link this up with the funding dry-ness.

I still expect a founder to be aware of these economic events. I am curious how could the management decide to go for hiring employees only to lay them off a year later. 

If you are a founder, would be happy to know the other side of the story.

What triggered layoffs ?

Let me explain in detail. 
 There are two parts to it and can be broken down basis PnL 
 1. Revenues : Sudden jump in tech( social media, e-commerce, ad tech, fintech, etc) plus supporting industries (chipmakers, laptop / device manufacturer) and the general economy with QE money  
 This impacted forecasts as most firms forecast AOPs basis historically trend (which clearly was an abberation) - this lead to higher HC estimates and rampant and quick hiring  
 Variable costs: CAC, customer support, sales incentive all spiked up as 1. Everyone was putting money (inc bidding price for key words) and 2. Huge customer inflow due to covid (edtech, e-commerce) that required support  
 Fixed costs: While office space / rents remained steady or dropped as % of revenue. This was offseted by fixed tech (software, hardware, people) costs and other costs like (legal, HR, Business, Marketing, supply chain, etc.) the talent was expensive to source plus their need was instant as you already had customer to be served  
 All of this lead to rampant hiring, inflated CTC, rosy forecasts, etc.  
 everyone had turned a blind eye to inflation implications (as for the past 30 Y no one saw a shooting inflation - hence the key decisions makers had now experience & idea about it) - till Dec’21 even FED said inflation is transatory. 
 It was the Ukraine invasion that opened people eyes. Oil went up, food prices went up, UK Europe saw an energy crisis etc 
 This made all the rosy forecast mentioned above duller as 1. Demand was expected to reduce due to higher cost of living 2. Capital became scarce as funding drired 3. Cost of capital (WACC) became expensive as hurdle rate climbed (which is rate of return for bond)  
 Management and investor panicked as they have limited partners (LP) to answer and quess who are these (big pension funds) so people’s pension money had come into startups which were not showing signs of exit for investors. 
 All in all - it is a pain we all have to bare for being exuberant in 2021-2022:

Welcome to Business Roles's Private Community

It's 2024. B2B sales buyer behaviour is changing rapidly. Most companies are dropping their SaaS subscriptions left and right. Inboxes of decision makers are cluttered. Industries are becoming saturated with similar undifferentiated software that have unclear value prop.

If you had to grow (or already are growing) your early stage B2B SaaS startup 10x in 2024 to $100K ARR, what would you do?

Growing an early stage B2B startup in 2024

- BigBasket plans to pivot entirely to quick commerce, offering only 10-30 minute deliveries
- Move aims to capitalize on growing 10-15 minute grocery delivery market
- BB Now already contributes over 50% of BigBasket's total revenue
- Company targeting $1.5 billion in sales this fiscal year, with quick commerce expected to make up 60%
- Shift comes as BigBasket eyes IPO in 2025 and aims for profitability 

 Source: [Entrackr](https://entrackr.com/2024/08/bigbasket-to-completely-pivot-quick-commerce/)

BigBasket to completely pivot to quick commerce

Absolutely sad to see the state of the startups, most of them.
I am a founder myself, and this is a post with equal disappointment with myself as much as it is for anyone else who relates.
Look at all these companies that have raised shit tons of capital, and now make a fraction of money that has been invested in them.
The raised money is spent on outsized, non business sense making acquisition costs, only to keep repeating it till the tap runs dry.
Then when all stakeholders get bored, the service quality plummets, the employees are fired and whole sectors are admonished as being bad.

But, my question is, which sector where large sums of money was invested in early days have come out with flying colours. Fucking nothing !
Edtech, proptech, agritech, ecommerce etc. etc. etc. kuch bhi nahi. 

Is there any sector where a startup which has raised in the 100s of millions in the first 5 years have actually built a sustainable business at any scale ?
Then scaling down, isse acha, scale slowly.
The worst part of this whole drama, is pushing the innovation wheel backward and destroying customer sentiment.

Isse acha, raise less money inititally, build slowly, and only scale when the market is ready. Artifical growth makes no sense, unless you have a treasure chest that shall never run out.
Even in that case, spend the money on assets and not on random acquisition costs, direct or indirect.

As founders, let's do better, nahi ?

Rant or is it ?

- M2P Fintech, an API infrastructure platform, is set to raise $80 million in a new funding round led by a new investor, with existing investors like Insight Partners likely to join.
- This funding round comes after two and a half years since the Chennai-based company last raised $56 million at a $650 million valuation.
- The new funds will be used to enhance tech infrastructure and accelerate growth in India and overseas markets.
- M2P Fintech's API enables businesses to offer branded financial services while ensuring regulatory compliance, operating in multiple countries including India, UAE, and Australia.
- The company, backed by Tiger Global, has acquired six companies to date and is expected to be valued at around $880 to $900 million post-money in the new round. 

 Source: Entrackr

M2P Fintech to Raise $80 Million at $900 Million Valuation

- Beauty retailer **Nykaa** has launched a 10-minute delivery pilot in Mumbai, while meat brand **Licious** is piloting 15-minute deliveries in Gurgaon. 
- This comes as quick commerce disrupts various product categories, pushing companies to speed up deliveries. 
- **Myntra** is also testing a 4-hour delivery plan in four cities. 
- Nykaa's move comes as beauty emerges as a top category on rapid delivery platforms like Blinkit and Zepto. 
- Meanwhile, large e-tailers like **Flipkart** and **Amazon** are also enhancing their quick commerce offerings.

Source: [Economic Times](https://economictimes.indiatimes.com/tech/technology/nykaa-licious-amp-up-quick-commerce-game-as-consumers-demand-instant-gratification/articleshow/114057656.cms?from=mdr)

Nykaa and Licious Speed Up Quick Commerce Amid Rising Consumer Demand

I think in this bear market, to be able to raise like this, says something about how much investors believe in them & the model
https://thearcweb.com/article/zepto-quick-commerce-aadit-palicha-blinkit-swiggy-flipkart-if07YMNjRHiOjmFA

Zepto going from $1B to $3B valuation in just 8-9 months after last announcement.

Product Manager

Everyone is raising questions about why startups are losing money so heavily

But on the other aspect, do people see that the sectors which are the highest loss making have become a crucial impact of our lives?
Example
Hospitality, Ed-Tech,Food Tech, Logistics and Ride hailing

Can we imagine our lives to go back where we were 10-12 years ago without such services?

I think the bigger game is going to be get more people to use the platform, make them high intent users and get them so used to to the platform that it becomes a necessity
Hence I feel they are spending money to grab the audience and then build on it
I am quite sure a lot of companies are going to fall, but that is how a the world of business behaves
Would love to know thoughts

Are loss making startups good or bad?

Business Development Manager

Flipkart is trying to enter two different market segments at the same time: Quick Commerce and UPI. There are already proven players in the space and it isn't possible to enter these segments without loads of investment. I wonder what Flipkarts game plan is and how it is going to execute it

Quick commerce to grow from $2.8B today to $22B by 2027

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