India is the sixth largest grocery market in the world. Segment is growing 200% every year, and it hold 70% of the $ 470 billion retail market. Interestingly 95% market is not organized. Over the past 8-9 months we have seen a lot of activity in online grocery segment like MyGrahak, Aaramshop ,Foodmandi, Bigbasket, Kiranawalla and Zopnow. Here we talked with founder of Punexpress.com, Mr Roshan who is helping to Pune currently for online grocery.
What was the story behind inception of Punexpress?
I was a part of the IT industry for more than 2 years and always thought of starting something. Grocery is my family business and I was looking for an opportunity in online segment and so Punexpress started. We registered the company Punexpress Retail Services Pvt. Ltd. and launched it in 45 days from the date we decided. I’m following the ecommerce industry since 3 years and Grocery was always a part of the life being a family business and thus started Punexpress.
Please tell us working method of Punexpress including delivery and procurement process?
We currently store all the products we sell in our facility but will look for alternative suppliers to increase the SKU’s. Once an order is placed on our website our team collects the products and the order is packed and planned for delivery as per the convenience of the customer. Currently we procure the goods for local authorized distributors and suppliers and will look for other alternatives for supply to further increase the margins. We have a fleet of 2 wheelers and 3 wheelers for delivery.
How do you look 2013 for Punexpress?
Punexpress (www.punexpress.com) was launched on 24 Oct with delivery to only 9 areas of Eastern Pune and now have added another 9 to our delivery areas. We have plans of covering all areas of Pune by April-May 2013 and start operations in other cities around end of the year.
Please share your current tractions
We have completed around 175 deliveries in 25 days are picking the number of orders every day. Currently we have 6-8 orders a day and expect 15-20 orders in next month. The average cart value has increase to 1200 from 600 in early days and every repeat order we get the cart value is almost doubled by the customer.
When you are expecting to touch Break even?
We expect to break even by May 2013 as we are keeping the expenses low apart from the ones necessary. We have got the right people at work and that helps us saving few bucks with people multitasking at work. The margins are thinner here compared to other sections like apparels/footwear but can be increased if we have placed the right categories.
Who are the people behind it?
The core team consists of Roshan Desarda, Krunal Tailor, Bhushan Tathed & Nikunj Parekh. Currently we are a team of 8 people and will soon add more.
Roshan Desarda, Founder & CEO – Engineer, Salesman, Marketing, Worked for an IT company for 2 years, from Pune. Business is always on mind.Krunal Tailor aka KT : Socioholic, Engineer, Multitasking which describes Krunal
Bhushan Tathed aka Bush : Engineer, takes care of Operations, bit lazy, hard worker.
Nikunj Parekh : Engineer, Gujju, Handles technology and tie ups at Punexpress.
How do you see grocery segment in ecommerce?
The grocery segment is picking up compared to other ecommerce websites and is seeing a good traction and deal flows with Bigbasket.com funding and other big players looking for the funding. The segment is heating up and will see many more players entering and this will help and attract people shop online for their groceries. As always competition is going to help grow business and we need to be patient to see things going right. Considering the potential grocery business has with recurring requirement by the customers unlike the apparels and electronic segment having there is always a possibility for multiple players to continue to exist. There are numerous challenges in the industry which needs to taken care and that will hold back the businesses to scale.