Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Nearbuy.
Owing to a lack of time and fair prices, everybody nowadays prefers online shopping. It is the primary driver of the e-commerce industry's growth. Many e-commerce businesses have experienced rapid growth in a short period of time. To meet the requirements of the best e-commerce companies in India, a sale with good service is required.
Nearbuy.com is an Indian-based hyper-local eCommerce company. It helps customers find, purchase, and save on merchants near them as a company.
Nearbuy - Company Highlights
| Company Name | Nearbuy.com |
|---|---|
| Former Name | Groupon |
| Headquarters | Gurgaon, Haryana, India |
| Parent Company | Paytm |
| Industry | Hyperlocal eCommerce |
| Founded | 2015 |
| Founder | Ankur Warikoo, Snehesh Mitra, and Ravi Shankar |
| Areas Served | India |
| Website | www.nearbuy.com |
Nearbuy - Latest News
About Nearbuy and How it Works?
Nearbuy - Mission and Vision
Nearbuy - Founder and History
Nearbuy - Name, Logo and Tagline
Nearbuy - Business Model
Nearbuy - Revenue and Growth
Nearbuy - Funding and Investors
Nearbuy - Competitors
Nearbuy - Challenges Faced
Nearbuy - Future Plans
Nearbuy - FAQs
Nearbuy - Latest News
As of September 2019, Ankur Warikoo, the co-founder and ex-CEO resigned from Nearbuy. Warikoo announced that he would step down as CEO of Nearbuy in November, handing over the reins to co-founders Ravi Shankar and Snehesh Mitra. Shankar, who was previously the COO of Nearbuy, will take over as CEO, with Mitra taking over as COO of the Paytm-owned firm. Warikoo will remain a shareholder and member of the company's board of directors.
About Nearbuy and How it Works?
Nearbuy.com (Nearbuy India Private Limited) is India's first hyper-local online platform, allowing consumers and local merchants to connect and interact. Nearbuy.com is dedicated to bringing the planet closer to you. Nearbuy.com makes it possible for you to enjoy fine dining, unwind at world-class spas, or simply get to know your city better.
Nearbuy also provides its merchants with a clear branding and visibility-driven network that makes it easy for consumers to find their businesses in and around their locations. Nearbuy is available in 35+ markets, 18+ categories, and 100,000+ unique places, with over 50,000 merchants.
You can download the Nearbuy app from the Google Play Store or the iTunes Store to discover, purchase, and share exciting experiences around you.
Nearbuy - Mission and Vision
The mission statement of Nearbuy says, "We at nearbuy.com are taking hyperlocal ecommerce where it’s never gone before. So, if you thrive on the thrill of operating in a world of firsts, you belong at nearbuy.com."
Nearbuy - Founder and History
Ankur Warikoo, Ravi Shankar and Snehesh Mitra are the founders of Nearbuy which was founded in 2011.
After its Chicago-based parent Groupon Inc acquired SoSasta in 2011 to begin operations in India, Nearbuy was established in 2011 as Groupon India. Ankur Warikoo and Ravi Shankar worked for Groupon as executives, with the former leading the company after the founders of SoSasta left.
After Sequoia enabled the exit of Groupon Inc in 2015, Groupon India rebranded as Nearbuy. Nearbuy, along with Little, was purchased by the payments company Paytm in a distress deal two years later. Paytm helped promote a share exchange arrangement between Little and Nearbuy shareholders, which resulted in Nearbuy becoming a wholly-owned subsidiary of Little Internet.
The purchase price for both companies was set at INR 272.31 crore. Following the acquisition, the company gained access to a large pool of capital as well as a large Paytm userbase. It, however, struggled to make an impact because sales were unable to keep up with expenses. The company had total revenue of INR 33.28 crore in FY18, with losses of INR 49.11 crore.
Nearbuy - Name, Logo and Tagline
Nearbuy' s old name is Groupon. After the rebranding of Nearbuy in August 2015, Groupon became a minority stakeholder in nearbuy.com.
"The Lifestyle App" is the tagline of Nearbuy. Nearbuy comes in and says "Let us give you a discount for visiting the place through us." Nearbuy.com makes it possible for you to enjoy fine dining, unwind at world-class spas, or simply get to know your city better.
Nearbuy - Business Model
The Nearbuy business model is as follows:
- Nearbuy makes a contract with local stores and service-based businesses such as spas and salons.
- Retailers promise to lower their rates in exchange for being featured on the website.
- Nearbuy makes the majority of its profits by charging a fee of 2% to 25% of the sale price.
- Retailers receive a substantial amount of revenue in exchange for providing such steep discounts on the website.
- They often accept advertisements on the website, increasing the company's revenue.
Nearbuy - Revenue and Growth
Annual revenue for Nearbuy.com is currently expected to be $80.2 million.
In terms of sales, FY18 was another low year for the firm. Though the company's overall revenue rose by just 4.9 percent from INR 31.73 crore in FY17 to INR 33.28 crore in FY18, its basic turnover decreased by 16.4% from INR 28.22 crore to INR 23.58 crore. This simply suggests that the minuscule rise in sales was not due to the company's main operations. Instead, it leaned on a 2.76X increase in other revenue, which increased from INR 3.52 crore to INR 9.7 crore.
Purbalee Dutta
Nearbuy - Funding and Investors
The Nearbuy funding is as follows:
| Date | Round | Amount | Lead Investors |
|---|---|---|---|
| Apr 3, 2017 | Venture Round | $15M | Sequoia Capital India |
| Sep 13, 2016 | Debt Financing | ₹150M | BlackSoil |
| Mar 10, 2015 | Venture Round | $20M | Sequoia Capital India |
Nearbuy - Competitors
Top competitors of Nearbuy are :-
- Gmarket
- Magicpin
- Grofers India Pvt
- Shopee
- Blibli
- Amazon India
- Swiggy
- CashKaro
- LivingSocial
Nearbuy - Challenges Faced
The biggest obstacle, according to Ankur, the former CEO of Nearbuy, was to build the group, to which Nearbuy belongs. Users would mistakenly think of the business as a deal and discount platform, which is exactly what Groupon was. The mission of Nearbuy is to put the offline world online in a way that allows users to discover, buy, and save.
Simply informing consumers that they can purchase their favourite restaurants, spas, salons, entertainment zones, hotels, brands, and other services online and then walk in to consume them while saving money is a huge challenge in and of itself. Few people get it, but the majority do not. They don't consider it a normal part of their lives.
"I often say this internally - our job at Nearbuy is not to grow the company, rather to build a completely new way for Indian consumers to explore the offline world which was a big task," says Ankur.
Aditi Chawda
Nearbuy - Future Plans
Nearbuy expects revenue of INR 255.99 crore and a net profit of INR 17.73 crore by 2022-23. The estimated sales, according to Warikoo, are reasonable and vary from the Gross Merchandise Value (GMV, or total value of merchandise), which is much higher.
“We are capitalized and on a growth expansion mode. As long as we are unit economics positive, we can manage our fixed costs with the investment raised out of this merger. The plan is to grow this number to 250,000 in three years. We have a maximum available universe of roughly around 350,000 merchants” says Warikoo.
Warikoo claims that discretionary spending among Indian consumers has increased by more than doubling to 7% of individual income over the last decade.
Nearbuy - FAQs
What does Nearbuy do?
Nearbuy.com (Nearbuy India Private Limited) is India's first hyper-local online platform, allowing consumers and local merchants to connect and interact. Nearbuy.com makes it possible for you to enjoy fine dining, unwind at world-class spas, or simply get to know your city better.
Who founded Nearbuy?
Nearbuy was founded by Ankur Warikoo, Ravi Shankar and Snehesh Mitra in 2011.
Which company owns Nearbuy?
Paytm owns Nearbuy.
How does Nearbuy make money?
Nearbuy did not charge its merchant anything for setup. Customers are only charged a fee for each purchase they make. Depending on the popularity and category, the commission ranges between 2% and 25%.
Which companies do Nearbuy compete with?
Top competitors of Nearbuy are Gmarket, Magicpin, Paytm, Grofers India Pvt, Shopee, Blibli, Amazon India, Swiggy, CashKaro and LivingSocial.
Author: Sarika Anand
Source : https://startuptalky.com/nearbuy-success-story/
Date : 2021-05-21T15:41:17.000Z