Satvacart Launches ‘Kill-Bill’ – An eCommerce Feature Targeted at FMCG Players and Consumers
With all building blocks in place for the next phase of growth, the company plans to raise $1 million for controlled expansion in NCR while achieving complete profitability.
Satvacart today launched a patent-pending eCommerce innovation called ‘Kill-Bill’ which will bring immense benefits to FMCG companies such as HUL, ITC and others, while allowing consumers to save on their shopping bills through attractive offers directly made by these companies. Satvacart has also digitised its entire operations resulting in a scalable and replicable business model to expand into newer geographies. As a result of the digitisation initiatives the company has now achieved a fill rate of 99.99%, the best in the industry. With all building blocks in place for the next phase of growth, the company plans to raise $1 million for controlled expansion in NCR while achieving complete profitability.
Benefits of Kill-Bill:
Kill-Bill tackles two different problems of Retail at the same time. Before the advent of eCommerce, the consumer used to compare products, placed side-by-side in modern retail stores, for the best deals. However, when the consumer transitioned to eCommerce, s/he did not have the luxury of time and patience to discover the best deals.
On the other hand, FMCG players have been using traditional methods for marketing and research. They did not have the options to offer better deals to consumers at the point of checkout. Also, they did not have a system where they could use cost-per-conversion methodology to plan their marketing budgets.
Under Kill-Bill, the FMCG players can now offer attractive deals on their products while targeting competing products, in real time. This will also help them in getting real time performance inputs on the offers as well as various other data analytics. The consumer, at the time of checking out, gets to see the competing products from rival companies that match the products in their carts but with attractive discounts. The consumer has an option to either choose all recommendations or choose specific products that s/he wants to switch, thus getting best deals.
Talking about the latest innovation, Rahul Hari, Founder & CEO, Satvacart said, “With customer experience at the core, we have been following a cautious and calculated growth path based on our learning for the past 3 years. Our philosophy has been to scale the business, learn from the scale, fix the issues and then scale again. Digitization and launch of Kill-Bill have been parts of this customer centric strategy. Digitization has helped us achieve a near zero out-of-stock level, leading to an increase in the number of active consumers, while also helping us serve a delivery cut-off every two hours. We are also currently in discussions with several VC funds to raise one final round of capital. This capital will be used in scaling the business further and taking it to complete profitability before expanding into Mumbai, Bangalore, Hyderabad and Pune in the next 2 years. Post achievement of complete profitability, our expansion will be funded through internal accruals only and we would not need any fresh funding.”
With a heavily optimised supply chain, and an assortment mix consisting of Fruits & Vegetables, and private labels, Satvacart draws a healthy margin in excess of 20%. Through various optimisations, the company has been operating at a cost per delivery of Rs 30, the best in the industry, while most grocery delivery companies in India operate in excess of Rs 120/ delivery. The company had achieved unit level break-even last year and operates at a healthy contribution margin of Rs 11 per delivery, thus covering the variable costs with the margins generated through the business itself. The company is now headed towards achieving complete profitability in the next 2 quarters.
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