Good Morning! Is it just me or has there been a bunch of news in the last 24 hours? Robinhood, the online stockbroker in the US, announced a $280M Series F valuing the co at $8.3B. Meanwhile, alcohol stores are opening up all over India and damn I never knew people who queue up that orderly in the nation and some very horrific news from Delhi.
Coming to the startup news, Grofers might be in talks for a new round & TikTok Social Commerce might be here soon.
➡️ Grofers, the grocery delivery co, is in talks with some of its existing investors to raise between $60-$70M in a new round of funding.
➡️ The company has probably been one of the few companies that has benefited from the effects of COVID and India’s lockdown and has seen its daily order numbers jump almost 2x from 100k to 190k. BigBasket, their main competitor, has seen a similar jump in usage from 150k to 283k daily orders.
➡️ The company was also in merger talks with Zomato less than a month ago. So what might have propelled this new round? Well it seems like Grofers economics might have rapidly become a lot more attractive as the company is projecting being EBIDTA profitable in month of May.
➡️ With a growing demand of online groceries, platforms don’t have to spend as much on user acquisition costs and might not have to offer deep discounting on some of its products. Grofers and BigBasket can now afford to keep their prices higher as consumers are willing to pay for it.
➡️ And I, for one, am here for it. We’ve seen eCommerce platforms in India entice users with discounts to a point where if platforms didn’t have discounts, users wouldn’t pay for it. With COVID, we might see a behavioral shift where consumers are willing to pay, without discounts, for online services.
➡️ Online groceries has seen phenomenal growth globally, and in the US we’ve seen COVID reverse a shift that had seen American consumers spend more & more on dining out & take out. https://twitter.com/cristinagberta/status/1255725164047851520
➡️ In a move which is not surprising at all, TikTok is piloting shopping links in videos. The concept has existed in their China-only app, Douyin, for a while.
➡️ I’ve previously talked about the likes of BulBul & SimSim and the various social commerce apps in India. And there is a clear reason why I think TikTok will be successful compared to the other platforms- the content.
➡️ TikTok has already created dozens of influencers in India (6 of the top 20 followed TikTok accounts worldwide are Indian), and some have gone to act in movies as well as start their own merch businesses. Commerce within TikTok will only further enable that.
➡️ TikTok also already has over 100M Monthly Active Users in India and letting users purchase items promoted by “celebrities” they follow in a frictionless experience manner might entice more Indians to shop online.
➡️ Social Commerce & Influencer affiliate shopping is coming to India, and the incumbents should be very scared.
Feedback & ❤️ always appreciated
More tomorrow :) BONUS (Tweet of the day): https://twitter.com/NorbertElekes/status/1257372198983159814