Hello readers, Today we are interviewing Mr. Vishal from Shipyaari.com previously called AVN biz. Shipyaari takes care of call of your e-commerce logistics from order placement to tracking and shipment. Let’s know its story from the founder.
Vishal, when was Shipyaari launched? What’s the idea behind the launch of this startup? Which segment is it catering to?
The idea sparked in October 2012 & then the think tank started. We signed our fist client in Jan 2013, officially incorporated in April 2013.
The model was to be an order fulfillment centre for all products catering to e-tailers and teleshopping sellers. We had then shifted our focus to majorly e-tailers. During that time E-commerce was evolving and many players small and big were facing trouble with Logistics and Payments. We thought even the big players are facing issues, so small players can’t even think of entering the market. We quickly tweaked the model and got into automated shipping solutions and started serving all kind of e-tailers.
Who are your clients? How many of them are you working with?
We serve to more than 2000 clients from all over the country and major of them comes from our association with different SaaS-based websites which cater to B2C segment, there are many corporate clients as well which uses our services for B2B fulfillment. Our direct clients are more than 300 and these are small to medium sized e-commerce vendor.
Are you following the similar idea as floated before? How is it different from other similar platforms? What led to the launch of the website?
No. We provide isolated logistics solutions vis-à-vis others giving a logistic solution as a part of different bundled services. We provide simplified and customized logistic solutions.
What’s the initial investment made to launch the venture? Where did you spend the investment, in which segments?
Initial investment started with few lacs which was spent on system development. There were no salaries withdrawn until last year so that we could build the system strong. To support our business demand our Co-founder, Nayan, had taken job, so he had to play dual role, in morning to the company he served and post evening to our dream company.
What has Shipyaari added to this segment of platforms? Has it addressed any particular issue which others failed to deliver to the consumer?
We believe we are making differences vis-à-vis other players in the following areas such as International Shipment, Robust Customer Support System Complimentary Insurance for product value upto Rs. 5000, a Claim Settlement Ratio of 90%, Drop Shipping and 8,000+ Serviceable CoD pin code.
Is it bootstrapped or funded? How much initial investment you made to start the service? What’s development on funding part?
We had started with few lacs at the inception of the company and considering time and efforts put in by Founders we have invested huge money ;-). Till date, we are bootstrapped and profitable. We are coming up with quite a few things such as Intra-City delivery, Packaging Material at subsidized rate to sellers etc and planning a fund raise of around US$ 5 Mn.
How big this segment is? How many players are working out there?
E-commerce is here to stay. E-commerce in India estimated to grow at Rs. 50,000 Crore which considered a CAGR of 55% by 2020. We plan to reach Rs. 200+ Crores in revenue by 2020. As of today, there are very few players in the segment.
What’s the business model of your platform?
We follow a subscription-based model and will provide a dashboard with Users. Our dashboard is designed with simple user interface which is self-explanatory and above all our Customer Support executives are happy to help all the time.
What’s the annual turnover and month on month growth of your venture?
Last year we closed at Rs. 10 Mn, In current FY we have achieved around Rs. 17 Mn and close the year by Rs. 40 Mn growing at QoQ around 3x.
What are the challenges you see in this segment? How are you going to overcome it?
Efficiently handling and remitting the CoD in quickest possible time, different warehousing requirement, highly unorganized segment are some of the challenges in the system.
Amidst other similar platforms, how tough is the competition?
E-commerce is a huge market and there is scope for everyone into it. There cannot be a single player who can dominate this segment. At the end, the one who serves better and create WoW moments for user/buyers will stay.
What’s the growth prospect of your venture?
Key growth drivers for the business shall be Increase in internet user base, evolving methods of payments such as e-wallets, card on delivery etc, entry of big corporate like Reliance, Aditya Birla, Mahindra and FutureGroup and most importantly growth of e-commerce.
So whats the new service about which you had mentioned?
The new service is a runner service in the name of eRunnerz.in, it will be an intra-city delivery model which shall have 3 services 1) 4 Hours Delivery,2) Same Day Delivery and 3) Next Day Delivery. This particular model shall work upon the Assurance of the product which was picked up from the vendor and delivered to end customer and vice-versa in case of return of the shipment. For the first time we are introducing Open Box Delivery wherein end customer can check the product before paying for it. Small E-commerce companies and Retailers can benefit from this service since they can now provide options to their client of same day delivery with COD and Card on Delivery facilities.
We have already started this service for some corporate clients and teleshopping companies in Mumbai and this service shall be available for all from 2nd of November 2015. We shall be starting this service soon in Pune, Hyderabad and NCR by end of this quarter.
Thank you Vishal for your time and inputs. Wish you a great success with your startup!