We don't believe In Contemplating & Researching A Lot Before Venturing Into A New Idea: Rhitiman Majumder, Co-founder & CEO, Pickrr
In an interview with BW Businessworld, Rhitiman Majumder, Co-Founder and CEO of Pickrr.com talks about the company, landscape of logistics and more.
1.Brief us about your business model like how did the idea came to start and how does it work (step by step procedure)?
Pickrr provides end to end logistics services to online and offline sellers through its tech and service components. We have a specialized product that is built on our proprietary smart courier selection algorithm ‘Calcula’ through which we help sellers to reduce their RTOs and increase performance. On the logistics operations end we have partnerships with all leading logistics providers in India, both in the B2B and B2C space. Delhivery, Bluedart, FedEx, Ekart, Shadowfax, Xpressbees to name a few.
We started with a slightly different model back in 2015, but we saw a huge gap in the market for small and medium sized companies that required specialized logistics support at low cost. We started catering to this segment but we now have all types of companies as our clients.
2. What are the unique key points of your company?
Our tech is one of the most customizable and stable at the same time which is a very difficult balance to achieve. While we are a tech company, given the manual intervention that is required to handle Logistics companies in India, we do have a services team as well.
The services team provides a necessary human touch point for our clients, and contributes as much as out tech to assist our clients handle their operations. This is again a fine balance that we have perfected in the last 5 years.
3. How are you different from the existing competitors?
Technology wise, our product is developed to cater a large pool of clients both online and offline. There are a lot of courier aggregators that exist in the market today that act as extended sales teams of the end courier companies. We are rather a virtual logistics company, by this what I mean is, when a client onboards with Pickrr, we act as a direct logistics company for them, so that we take care of all logistics related operations for the company rather than just acting as a forwarding agent. Our tech is built specifically to achieve this.
4. What is the funding status and monetization model?
We raised our seed funding back in 2015. We are currently profitable and are looking for strategic alliances.
Our revenue model is like any other logistics provider. We charge our clients on per order basis. The charge depends on the distance between source and destination, weight of the shipment and mode of delivery.
We do not charge any integration charge, subscription fee or any one time charges. Clients only have to pay us when they use our services.
5. What challenges are you facing in running your business?
Logistic industry was the first to suffer and one of the first to recover it the last 6 months. We have been working hard to get our services to pre-Covid levels however, there are still challenges. Convincing the clients and customers about possible delays caused due to restrictions is a big challenge. Both sides are sometimes frustrated about delays, and understandably so. We are trying to be more pro-active in informing the customers about any possible movement restrictions.
6. How has been the people`s response so far?
SMEs were and still are very receptive towards the offering Pickrr has. We are gaining traction from large enterprises as well.
7. What are the traction details (like users, app downloads & other achievements of the company)?
We currently do around 50,000+ orders on daily basis from our customer base of around 5000+
8. How do you look at expansion?
We consider ourselves problem solvers of any logistics related issues being faced by the industry at present, while we have achieved a lot of success in courier selection, allocation and aggregation, the problem statement iis huge and we intend to be the answer for any other issue, be it post ship services, warehousing, packaging etc.
In terms of inorganic expansion we have plans to replicate the solution to outside India as well.
9. What are your marketing plans?
We have always been frugal and targeted with our marketing activities. Till about a year back, we did not spend much on marketing. This has been changing rapidly in the last few months. We have been reaching out to our prospective customers through digital and social media marketing. Our plans for marketing in the coming year will be more aggressive than ever.
10. What has been the biggest learning’s so far?
We have learnt to be an action biased company, we do not believe in contemplating and researching a lot before venturing into a new idea. Small pilots of new ideas coming from anyone within the company are approved within seconds. This process has led us to develop some unique solutions that were first to market as well.
11. What is the market size and opportunity?
With the growth in independent sellers on marketplace and DTC modes. The addressable market size for us has grown multifold in the last couple of years. Currently at $1 B USD, it is bound to increase at a rapid rate especially with the push COVID has had on ecommerce industry.
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