"EDITION 168"

Published: 10/5/2020

Good morning, it's Monday, and this is Vedica with the update to start off the week. The kirana wars are heating up and Reliance is getting into subscription e-commerce.

  • https://bit.ly/30uMMRN: Dukaan app removed from Play Store after court relief to Khatabook
  • ➡️ The legal battle between KhataBook and Dukaan continues! In a writ petition filed by Khatabook, the Karnataka High Court has restrained Dukaan’s co-founder Suumit Shah from infringing KhataBook’s copyright over the source code of “Dukaan” application.

    ➡️ Khatabook's app developer, ADJ Utility Apps had launched an app ‘Dukaan by Khatabook’ in the second half of August and Dukaan's parent, Growthpond Technology, had launched its app by the name Dukaan on Play Store on June 2. Soon after after the launch of Khatabook’s app, Dukaan sent a plagiarism notice to Khatabook.

    ➡️ Khatabook didn’t respond to the notice at that time but maintained that Dukaan is a brainchild of Khatabook and envisioned to help merchants go online instantly. however, the company did change the name of its app from ‘Dukaan by Khatabook’ to ‘MyStore by Khatabook’ recently.

    ➡️ Entrackr reports that Growthpond has historically been a custom product development and digital marketing campaign developer for Khatabook. The company was mandated by Khatabook to develop an app similar to Dukaan, but allegedly launched the app under its name. Khatabook’s writ petition alleged that Shah used the same source code that he was being used for the Khatabook engagement.

    ➡️ This is a pretty messy situation for Dukaan, obviously, and genuinely pretty bad if the allegations are true. Dukaan has been growing quickly and was reportedly in talks to raise $6M in a seed round from Lightspeed and Matrix. I would imagine that the investors will either put these plans on the backburner at the very least till the legal wrangling is sorted out.

    2. https://bit.ly/36yZTFM: JioMart begins subscription commerce services

    ➡️ JioMart is testing a subscription-based model in Bangalore and Chennai where users will be able to order daily needs such as dairy-bakery products, vegetables and other essentials.

    ➡️ If JioMart rolls out services after the trial, it will directly compete with BB Daily, Supr Daily and MilkBasket. BB Daily and Swiggy’s Supr Daily are the two largest players in the segment with over 2 lakh daily orders, followed by MilkBasket, which processes over 80,000-90,000 orders a day.

    ➡️ There has been a spurt of consolidation in the subscription commerce space with the acquisition of Supr Daily and DailyNinja by Swiggy and BigBasket in March 2019 and March 2020 respectively. Doodhwala was acqui-hired by Ascent Capital-backed fresh meat and vegetable procuring app FreshToHome.

    ➡️ MilkBasket is the only independent player remaining in the segment. As we've covered before, Reliance was in talks with MilkBasket for an acquisition, but the deal fizzled out over valuation. Reliance had apparently offered an all-cash deal to Milkbasket, but the deal didn't pass muster with the founders and was called off. The company has since been focusing on profitability

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