Report

DELIVERING
INDIA
INDIAs rising online grocery
delivery industry
An in-depth look at the macroeconomic factors, business models, and opportunities surrounding one of
Asias largest markets in tech.
By:
Michael Dempsey
Email at:
michael@michaeldempsey.me
Tweet at:
@mhdempsey
Last Updated
03.30.2015
Delivering India | Indias Rising Online Grocery Delivery Industry
INTRODUCTION
This isnt merely a case of US-based business models being ported to a
large, emerging market. Something fundamentally different is happening
in India.
n 2014 I started to notice an increase of

venture capital investment in Asia going
to eCommerce companies. That trend
has only accelerated in 2015.
In my previous role as an investment analyst at a multi-strategy hedge fund I conducted research around global infrastructure trends, and how they might affect
businesses in select regions. I learned
about Indias notoriously inefficient and
fragmented infrastructure and logistics
problems.
As I started to dive deeper into the various ecosystems within Asia, I was drawn
to the unique problems that were posed
in some of the emerging tech markets,
and how they affected one very specific
market in India; food retail and grocery
delivery.
In the US, companies like Plated, Blue
Apron, Instacart, Munchery, and Sprig,
have raised significant capital from investors. I couldnt believe that some of the
same business models and consumer behavior wouldnt be applicable to a massive
market like India. And while on the surface it may seem as if weve seen that happen, this isnt merely a case of US-based
business models being ported to a large,
emerging market. Something fundamen-
tally different is happening in India.

I set out on a mission to better understand this developing eCommerce space.
In this report Ive touched on how the introduction of technology around grocery
delivery has affected Indian citizens, how
macroeconomic trends could affect tech
in India, as well as specific companies that
could be important in this landscape for
years to come.
Ive spent a fair amount of time at night
reading as much as possible about this
space and broader industry dynamics.
Ive tried to compile many different sets
of data, add some analysis to that data,
and frame an industry in its infancy for
outsiders who may know nothing about it.
I wanted to give the reader an overall look
at the state of Indias online food retail
and grocery delivery industry. And while
I am no expert in the Indian market, I feel
that I have accomplished my goal with
this report.
If you have any questions, comments, or
concerns, or if you want to tell me why
you think this is wrong or what Ive missed, feel free to tweet or email me.
by @mhdempsey | michaeldempsey.me
TABLE OF CONTENTS
Macroeconomic trends

Economic Growth
Population
Internet Infrastructure
INDIAs eCommerce Industry

Overall Statistics
Grocery Delivery in India

Why Is It Unique?
Penetration of Modern Retail
Customer Demographics
10
Business Models
11
Changing Customer Behavior
13
FUTURE OPPORTUNITIES & CONCLUSION

Surrounding Industries
14
Conclusion
15
Appendix I - List of Companies
16
Appendix II - Further Reading/Sources
17
MACROECONOMIC TRENDS
ECONOMIC GROWTH
ndia is now projected to be the fastest growing large economy in the world per the
IMF, with a projected growth rate of over 7% for the fiscal year of 2015, with others projecting GDP growth of 8%+ in the coming years. And while the boom in GDP growth
has its skeptics who believe that the overall impact of under-the-radar workers is overstated, larger macroeconomic trends are at play.
These trends include largely weaker currencies vs. the stable Rupee, eased inflation, falling oil prices (important for an economy that imports ~80% of its oil), as well as a new
corporation and globalization-focused Prime Minister in Narendra Modi.
Specifically Modi has focused on increasing the foreign direct investment in India. For a
country that just started allowing FDI in 1991, and still has moderately strict caps on FDI
in certain industries, this could be huge. Sonal Pandya of the University of Virginia described the effects of FDI on a variety of sectors best, with this quote:
The textbook case for FDI can be summarized in two words: technology transfer. The
multinational corporations that undertake FDI are among the worlds most productive
firms. These firms introduce their cutting edge technologies and production practices
into the countries in which they invest. In the ideal case, FDI increases demand for skilled
workers and, eventually, their technologies spill over into the local economy.
A YOUNG POPULATION
Another key statistic working in Indias favor is their population. While rival economies
like China, saw their workforce shrink in the past few years, over half of Indias 1.25 billion population is under the age of 25, while over 65% are below the age of 35. With a
median age of 27 years old in 2014, and an expected median age of 29 in 2020, India
will be the youngest country in the world in the near future.
The young median age is also aided by the high number of software engineers. Currently India trails only the US with 2.75 million to the US 3.6 million, however India is
projected to surpass the US by 2017, as the number of software engineers is expected
to grow 90% to 5.2M vs. the US 4.5M.
With a large number of young people for the forseeable future, and an incredibly deep
talent pool of engineers, internet penetration is another major factor for the overall
Indian tech scene.
INTERNET INFRASTRUCTURE
Key Points
Low overall penetration
Massive user growth and potential user base.
High mobile adoption
High cost of access and usage
India only has 19% of their population on the Internet. This figure grew 14% last year
(a high figure considering Uganda was tied for the most growth at 17%). The chart
above indicates that the entire ecosystem reached escape velocity around 2010, which
was driven at least in part by mobile penetration in the country. Mobile Internet users
are expected to reach 213 million by June 2015, and there were ~935 million mobile
connections in October 2014, equating to a little over 4 connections per user.
The general increase of Internet users in India is often attributed to the rise of mobile
technology. Previously the costs and subsequently the barriers to entry for Internet
access was too high with computers. In fact, the $61 per MBps (on a PPP basis) gives
India one of the highest median costs for broadband Internet access, more than 4x
that of China, Brazil, and Argentina. Initiatives to develop low-priced mobile devices
like the Aakash tablet, have enabled users in both major cities such as Mumbai, Delhi,
and Bangalore as well as tier 2 and 3 cities to come online quickly.
There are projects being proposed that could even more dramatically increase Internet coverage in India over the next 3-5 years, which would further accelerate the
potential markets for broader eCommerce in the country.
ecommerce in india
OVERALL STATISTICS
ith increased Internet penetration in India, eCommerce has grown drastically in recent years. Some are comparing Indias eCommerce market today, to Chinas in the mid-2000s, as China had only 8-10% of Internet users
transacting online just a few years ago, but now sees nearly 35% today. Paired with a
similarly unorganized retail structure, this makes for a great comparison as many value
propositions are aligned.
Accel Partners India has a slideshow detailing some broader ecommerce trends. SparkLabs Global also released a report about eCommerce in Asia. Both are incredibly
informative views into this large market.
A few key points from the Accel report:
Online shopping of physical goods will grow to $8.5B in 2016
60% of Internet users visit eCommerce sites
eCommerce only accounts for 0.2% of all retail
Conversion rates should increase to China-esque levels of 3.5%, as some goods in
tier 2 and tier 3 cities are simply not available locally
Its worth noting that Accel Partners is one of the most active VCs in India, with a slew
of high profile eCommerce bets, including now-merged Flipkart and Myntra, as well as
Big Tree Entertainment and Bluestone.com. They also just raised their fourth India-focused fund, at $305M.
On the funding front, overall Asian eCommerce funding reached $11.5B on 367 financings per CB Insights data in 2014, up 312% on a funding basis and 59% on a deals
basis. Indias eCommerce industry accounted for 29% of those deals, while funding
surpassed $3B on the year.
7
GROCERY DELIVERY IN India
WHY IS IT UNIQUE?
hile many US and European online food and grocery delivery companies
have raised billions of dollars from VCs over the past few years, the Indian
market is incredibly different and unique.
Key Traits
India is the 6th largest grocery market in the world
Only 5-8% of grocery stores are organized corporations. The vast majority are
mom & pop type shops that are similar to convenience stores in the US and are referred to as kiranas
The online grocery market is growing at 25-30% annually in metropolitan areas and
large cities
Margins are below 10%
43% of the countrys roads are not suitable for vehicles. Paired with checkpoints,
and duty collection points that slow down traffic, infrastructure is an obstacle
In the US, while it is a mild inconvenience to drive/walk to the grocery store, park, shop
for yourself, load up your car, and drive home, it is very doable in almost every city and
town across the country. In India it is magnitudes more difficult, time consuming, and
even could be considered impossible at some times.
Indias infrastructure and overcrowded major cities make it a nightmare for in and out
shopping. In a variety of the major cities, there are very few parking lots for grocery stores, and the prohibitive traffic makes the time commitment and risk even higher when
driving to crowded city centers that feature more full-service grocery stores or modern
retailers. However, while the infrastructure makes it difficult for consumers to get to the
grocery stores, the poor driving conditions and unsuitable roads, make consistent and
stable delivery service a struggle. This has led to a high number of consumer complaints revolving around delivery timing for this still emerging industry.
While the city infrastructure is a challenge, the industry infrastructure is as well. As
stated above, only 5-8% of all grocery stores in the country are organized corporations
or entities. This not only makes it difficult for service providers to win large contracts
with a chain, similar to what Instacart has done with Whole Foods, but it also changes
overall market dynamics as Indian shoppers are rarely tied to a larger brand for their
food purchases.
This has led to a push from the tech companies to try and facilitate better organization
and back-end technology for the kiranas.
8
GROCERY DELIVERY IN India
MODERN RETAIL
Unlike the US, India does not have the same level of modern retail penetration where
consumers travel to a mega-store like Walmart to purchase all of their goods. While
modern retail has started to gain traction in recent years, food & grocery, a segment
where companies like Walmart and Tesco derive over 50% of their revenue from globally, has been the least penetrated.
And even while that penetration is modestly increasing, the major players are getting
killed. Estimates peg losses for the 10 largest players including Best Price Modern
Wholesale (Walmart owned), Metro Cash & Carry India (Metro AG), Aditya Birla Retail, Bharti Retail, Reliance Fresh, and Trent Hypermarket at $2.2B in 2013-14. Despite
growing revenues from $500M in 2008 to $4B in 2014, it is projected that losses will
continue to increase.
Both penetration and mounting losses spell a huge problem for these modern retailers
hoping to build sustainable businesses and topple the mom and pop stores in India, a
market where 70% of the over $500B in retail trade comes from food. But maybe in the
way that India largely skipped the PC revolution, they will do the same with modern
retail and go directly to eCommerce.
UNDERSTANDING THE CUSTOMER
CUSTOMER DEMOGRAPHICS
The online grocery delivery market in India has some very unique demographic statistics that have risen out of a new shopping method for the country including:

Women ages 30-35 are the largest adopters of online grocery shopping
68% of all users on major e-grocer LocalBanya.com are women
14% of LocalBanyas customers are senior citizens
11% of orders are done in 10pm - midnight slot. Previously unattainable
Institutional clients make up 29% of orders for select major retailers
The prevalence of women online emerged in Indias eCommerce industry. It is projected that women-influenced sales will be 35% of Indian eCommerce by 2016. This is a
massive departure from brick-and-mortar sales, which are dominated by men across
all industries. The rise of women in eCommerce has been attributed largely to convenience, as well as increased privacy and safety.
Online grocers have been able to target a niche by offering later delivery windows than
many traditional grocery stores. Currently, 11% of orders are for delivery during the
10pm 12am time slot, which was previously unattainable for customers. This offering
comes at a time when Narendra Modi has spoken about extending work hours to 8 pm
from 6 pm for government officials, while overall workers in India feel they are working
longer hours than in previous years.
Larger online grocers have also been able to attract a high number of institutional
clients from restaurants to corporations to other organizations that require groceries
in bulk. As some of the larger online grocers continue to white label consumer diet
staples, restaurant purchasing could even increase further.
The middle class is also expanding in India
and will be the 3rd largest middle class in the
world in 2020, and the largest in the world in
2030. This will lead to a growing number of
consumers that buy groceries, but begin to
calculate a time-value analysis as their wealth
grows. These consumers will subsequently
find that grocery shopping via the Internet is
a high value-add service.
10
GROCERY DELIVERY BUSINESS MODELS
PURE-PLAY ONLINE ONLY

Business Traits
Online grocery retail outlets have increased 3x+ YoY
Lower utilities and real estate costs
Broader product offering
Higher quality via farm to market
Major Players
Big Basket - $33.7M revenue
Local Banya - $11.8M revenue
Reliance Fresh Direct
Pure-play online grocery retailers are

at the forefront of the boom in grocery
eCommerce, which has over tripled in size
by number of players year-over-year from
under 15 in 2013 to over 40 in 2014.
ating with various agricultural co-ops for

direct purchases. The company is also
looking at commissioning the production
of fruit and fresh produce, while also experimenting with programs that can transport fresh fish and meat directly to their
distribution centers to offer better quality
goods than traditional grocers. This is a
key differentiator as a large percentage of
the market fish in India contains preservatives and are of a lesser quality. Companies such as SeaToHome.com have even
emerged to try to vertically serve these
niches.
These companies build large warehouses

and distribution centers outside of major
cities and own fleets of GPS-enabled vehicles in order to serve online demand.
BigBasket and LocalBanya are the main
players and use the hub and spoke model to build out their areas of coverage.
Advantages to this model include lower
real estate costs (as they are able to set
up just outside of major cities), a broader
range of products stocked, and a better
overall customer experience versus traditional grocery shopping in India. By aggregating demand and data around purchasing, these companies are also able to use
their buying power to their advantage.
For example, to counter an already slim
operating margin, some of the pure-play
companies have started to offer private
label bulk goods. Main staples such as
rice and spices are being bought in bulk
from suppliers and sold for a higher margin under the e-retailers private label.
Companies like LocalBanya are negoti-
One of the key struggles for this model

is the logistics management for their ordering systems and subsequently their
customer service. For all of the reasons
that make online grocery delivery beneficial for consumers in India, they also make
the logistics very difficult. Because of this,
one of the initial KPIs for many of these
companies has been the percentage of
orders that arrive on time.
While the broader food retail market complains that pure-play companies are merely winning on discounts, they continue
to take market share and have drawn interest of larger players, including Grodrejs
purchase of Ekstop for ~$7M in Feb. 2015.
11
GROCERY DELIVERY BUSINESS MODELS
Marketplace Providers
Business Traits
Charge grocery stores recurring fee.
Manage front-end and logistics
Asset-light business focused on fast
delivery
Major Players
AaramShop
Peppertap
Jiffstore
Amazon Kirana
Marketplace Provider companies provide

a front-end and logistics management
service for smaller chains, as well as independent grocers for a recurring monthly
or annual fee. These companies are most
comparable to Instacart in the US. Peppertap, which raised $1.2M from Sequoia
Capital, as well as AaramShop are two of
the notable independent companies in
this space, while larger players like Amazon and Tradus have entered as well.
this continues to be the lack of back-end

infrastructure in many kiranas. However,
Amazon may be best positioned to solve
this problem due to its logistics expertise.
The Marketplace business model has

been praised due to its lack of inventory
investment, however these companies
still cannot interface with smaller mom
and pop grocers due to their need for an
organized back-end to properly manage
the inventory on the front-end.
In addition, the value of the pricing,

purchasing and behavior data that marketplace providers can gather over time
may be equal to the value of the service-side business. Entire companies like
Premise Data have been built around this
concept, but at a much larger scale.
Marketplace companies like AaramShop

have also used local data aggregation to
offer consumers a previously unseen pricing index. On AaramShops platform,
consumers can search for a specific food
item and find the best deal across all participating retailers.
Others
Larger companies like Amazon (outside of
Kirana Now) and eBay offer select gourmet and non-perishable items. Many are
skeptical of this model, as consumers look
to fill their entire order at once online.
Amazon recently launched Kirana Now

in its first test market, Bengaluru. Amazon
intends for grocers to upload their catalogue, and then provide integration with a
third party logistics provider for delivery
within 2-4 hours. The biggest issue with
12
Marketplace players also face competition from companies like Grofers (another
Sequoia investment), which are more general on-demand platforms and could
be used for similar food and grocery delivery tasks, a la Postmates in the US.
Smaller grocers have also attempted to

build an online presence. While their core
competency within delivery remains via
phone, it is likely that there will be a shift
for mom and pop stores in major cities to
have an online ordering system in place in
the next 5 years.
customer behavior
HOW WILL IT CHANGE?

Removing In-Person Shopping
A high percentage of customers in major cities are already buying groceries without
physically seeing them. In India, phone orders to Kiranas are somewhat commonplace,
so changing that behavior is very different than how a company like Instacart has had
to try to change the shopping behavior of many Americans. In addition to this, upstart
companies can focus more on logistics and offerings, and less on UI and design, as
sight and feel are less important to the Indian consumer in the grocery space.
For those who still value in-person shopping, some of Indias largest eCommerce players have tried to blur the line by using their overall eCommerce platform as a way to
subtly change behavior. Amazon India and Snapdeal both have added food and gourmet categories to their platforms. These categories are aimed at converting existing
customers to online grocery shoppers, while providing an easy and lightweight behavioral shift over time that coincides with other online purchases.
A Better UX and Marketplace
Haggling is commonplace in many kiranas and markets in India. Online ordering removes that entire process and allows for better forecasting on the provider side, as well as
a more consistent experience on the consumer side.
In addition to a potentially less stressful experience, analytics around shopping behavior continue to provide huge utility to shoppers, in the form of increased ease of re-ordering, or better pricing transparency. While phone ordering and subsequent delivery
has been prevalent in previous years, the ability to easily re-order in less time due to a
web interface and data analytics will create loyalty to a specific provider and increased
adoption of the general online ordering platform.
Broader Inventory Offerings
One of the major components to the entire online grocery delivery industry emerging
is serving non-major cities. Much like has been observed in other verticals of eCommerce, by serving rural parts of India, food and grocery providers can provide options
that are not readily available, which will bring consumers onto the platform that are
willing to test the experience of ordering online.
A report by Pwc on fast moving consumer goods pegs the number of consumers for
FMCG products in rural India at 700 million, or over double the entire population of
the US. Unfortunately many of the pure-play online grocers have yet to tap into these
markets due to the previously-mentioned lack of infrastructure, making lower tier cities
and less developed parts of India a potentially massive market for the future.
13
SURROUNDING INDUSTRIES
Future opportunities
There are multiple areas of opportunity for players servicing and surrounding the online grocery delivery industry, as well as the broader eCommerce space. Below are a
few notable industries that
are primed to benefit
from the ongoing boom
in India.
Payments Gateways
Currently cash on delivery
accounts for 60% of all
online retail payment methods in India. India has a
high rate of payment failu-
Real Estate
res when it comes to eCommerce, with most
Ecommerce accounts for 25-40% of all gra-
sites clocking in a 60-65% success rates. The
de A warehousing real estate in major met-
payments gateways have been largely domi-
ro areas today., and almost 25% of the entire
nated by BillDesk, Techprocess, and CCA-
countrys warehousing demand was driven by
venue, however multiple companies
have
the eCommerce space. In 2014, eCommerce
emerged within the space over the past few
related retail space exploded, as uptake in-
years including Citrus, EBS, KYash, Zaakpay,
creased 7x YoY.
PayU, GoCoin, 2Checkout, and Airpay.

Large sized warehouses and storage spaces
ECommerce Platforms
are driving demand in and around Indias ma-
Similar to how companies like SquareSpace
jor cities, while office spaces due to the nearly
have risen to make starting an online business
50,000 employment opportunities created by
easier than ever in the states, Indian compa-
the eCommece industry will also face increa-
nies will surely experience this in the near fu-
sed demand. As tier 2 and tier 3 cities come
ture. Currently only 35% of businesses in India
online, the surrounding real estate could be-
offer online services, compared to an average
come in demand at a disproportionate level
of 56% in other emerging, large economies.
to residential real estate as major eCommerce

providers look to hub and spoke their way into
Players within this space include companies
the rest of Indias population. These trends
like Zepo, KartRocket, FreKart, SellMojo,
paired with the greenlighting of REITs and IITs
BuildaBazaar, as well industry titan Shopify.
in 2014 should allow for significantly increased

real estate and infrastructure investment over
the next 5-7 years.
Other Opportunities
Mobile Infrastructure
Internet of Things
Verifiable Digital Identity
Background Check Technology

Logistics Management SaaS
Drones
14
CONCLUSION
The winners in the long-term will be companies that can build a
sustainable large-scale business that meets the needs of one of the
worlds most dynamically changing economies.
ith all of this data, what can we
feet wet due to doubts of long-term sustain-
gather about the overall state of
ability.
Indias online grocery delivery in-
dustry?
This may lead many to tout the marketplace

model as the best option, however I believe
First, the entire country is still in what I be-
that this industry will be won on a city-by-ci-
lieve is the beginning of a technological re-
ty basis in the near future. Pure-play online
volution. This revolution was initially fueled
grocers like BigBasket and LocalBanya could
by mobile Internet adoption, and further
win in tier 1 cities such as Mumbai, Bangalore,
enabled by investors clamoring at the op-
and Delhi, while less economically-developed
portunity of a country with nearly the same
cities with higher fragmentation will benefit
amount of Internet users as the US, and over
more from the marketplace model.
700 million more who are still left to come online. And while I believe that a large number
With the widespread fragmentation, I won-
of those investors will get the returns they
der if consolidation will occur. Flipkart looms,
seek, at times I wonder how quickly the inf-
and has yet to make any noticeable impact
rastructure needed will actually come online.
on grocery delivery thus far. Could other major players or private equity investors seek to
For all of the drivers of future growth (Internet
roll-up these entities to create better econo-
penetration, infrastructure projects buoyed
mies of scale? And if so, will they be the ones
by a business-focused Prime Minister, rising
to ultimately solve capturing the middle class
middle class, an upcoming influx in FDI in real
on both an economic and infrastructure ba-
estate) India still has poor income disparity
sis, a problem that has gone unsolved in the
and a low literacy rate (~63%, with women
United States?
at just 51%). Indias tech industry, and more

specifically the online grocery delivery indus-
Largely, these questions will answer them-
try, will need these issues resolved in order
selves in due time. As of now I believe the
to capture the market size that investors have
safest opportunities exist in the surrounding
lusted after while piling money into the coun-
industries detailed above, such as payments
try. Unfortunately, economic growth might
gateways or logistics management.
not be the cure-all for these problems.

However the winners in the long-term will be
The online grocery delivery industry is cur-
companies that can build a sustainable lar-
rently both small and fragmented. No com-
ge-scale business that meets the needs of
pany has crossed $100M in revenue and many
one of the worlds most dynamically changing
of the larger entities are just now getting their
economies.
15
Thank you.
Appendix I - Company List

Indias Grocery Delivery Company List
Website
Foods
Cities Operating In
Domestic
Mumbai
Domestic & Imported
Mumbai, Pune, Thane
Domestic & Imported, local fresh fruits and vegetables
Mumbai
www.aaloo.in
www.localbanya.com
www.eemli.com
www.bigbasket.com
Domestic & Imported
Mumbai, Bangalore, Hyderabad
www.naturesbasket.co.in
Domestic & Imported
Mumbai, New Delhi/NCR, Hyderabad, Pune
Fresh seafood
Pune
Domestic
Pune
www.fishvish.com
www.rationhut.com
www.mygrahak.in
Domestic & Imported
Delhi
www.dilligrocery.com
Domestic
Delhi
www.eazygrocery.com
Domestic
Delhi
www.onekirana.com
Domestic
Delhi
www.easyration.com
Domestic & Imported
Delhi
www.grocerywalk.com
Domestic
Delhi
www.gopeppers.com
Domestic & Imported
Delhi
www.get929.com
Domestic
Delhi
www.homefills.com
Domestic
Delhi
Domestic & Imported
Delhi
Domestic
Delhi
www.tazastuff.com
Domestic
Chandigarh
www.zopnow.com
Domestic & Imported
Bangalore
www.towness.com
Domestic & Imported
Bangalore
www.jiffstore.com
Domestic
Bangalore
www.vokav.com
Domestic
Bangalore
www.momgrocery.com
Domestic
Bangalore
Domestic & Imported
Bangalore
www.kiranawalla.com
Domestic
Bangalore
www.youmart.com
Domestic
Bangalore
www.yzury.com
www.farmerzden.com
www.irely.in
www.chennaionlinegrocery.com
Domestic
Chennai
www.veggibazaar.com
Fresh Produce
Chennai
www.kovaigrocery.com
Domestic
Coimbatore
www.kada.in
Domestic
Trivandrum
www.homespices.com
Spices
Hyderabad
www.grocerszone.com
Domestic
Hyderabad
http://store.perigreensafefoods.com/
Domestic
Hyderabad
www.foodshoppy.com
Domestic
Hyderabad
www.andhrakart.com
Domestic
Andhra Pradesh
www.saltnsoap.com
Domestic
Kolkatta
www.familykar.com
Domestic & Imported
Delhi, Gurgaon, Noida
www.punexpress.com
Domestic & Imported
Pune
Organic Products
Delivery across India
https://daily.ebay.in
Imported
www.healthkart.com
Health and wellness supplements
www.farm2kitchen.com
www.homeshop18.com/groceries/
www.organicgarden.co.in/
Domestic
Organic Products
Source: @mhdempsey, USDA Foreign Agricultural Service
16
Appendix II - Sources/Further Reading

Asia/India Tech Specific
http://www.nextbigwhat.com/online-grocery-market-in-india-report-297/
http://knowledge.sunstone.in/ecommerce-in-india-vs-other-geographies/
http://articles.economictimes.indiatimes.com/2014-06-05/news/50359137_1_grocery-delivery-servicehome-delivery-online-grocery-stores
http://businesstoday.intoday.in/story/online-grocery-shopping-vegetables-new-trend-inindia/1/197141.html
http://qz.com/218169/big-retail-cant-compete-with-indias-corner-shops-but-online-grocery-siteshave-a-chance/
http://qz.com/214306/indias-modern-retailers-are-bleeding-money-trying-to-beat-corner-stores/
http://www.just-food.com/management-briefing/indias-fledgling-food-e-retail-scene_id128876.aspx
http://asia.nikkei.com/print/article/64593
http://www.translatemedia.com/us/blog-us/rise-of-online-grocery-shopping-in-emerging-markets/
http://www.businessinsider.in/This-E-grocery-Start-up-Uses-A-Lean-Model-For-Its-OnlineSupermarket-In-Talks-To-Raise-Series-BFunding/articleshow/31184822.cms
http://www.forbes.com/sites/saritharai/2014/11/18/billionaire-mukesh-ambanis-reliance-retail-makesquiet-entry-into-indias-e-commerce-sector/
http://in.reuters.com/article/2014/11/26/india-internet-retail-idINKCN0JA27A20141126
http://www.omnichannelasia.com/sites/default/files/india_special_report_-_india_online_retail_
driving_realty_january_2015.pdf
https://www.cbinsights.com/blog/india-active-venture-capital-firms-2014/
https://www.cbinsights.com/blog/asia-ecommerce-venture-capital/
http://trak.in/tags/business/2014/06/30/top-10-saas-ecommerce-platforms-india/
http://businesstoday.intoday.in/story/start-ups-challenege-to-online-payment-gatewaysegment/1/196305.html
http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Rise%20of%20Online%20Grocery%20
Retail_New%20Delhi_India_9-12-2014.pdf
http://www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-india.pdf
http://www.slideshare.net/AccelIndiaVC/accel-partners-india-india-ecommerce-insights-march-2014
http://www.slideshare.net/bernardmoon/sparklabs-global-asia-ecommerce-report-2015
https://www.pwc.in/en_IN/in/assets/pdfs/rc-publications/innovation-in-fmcg.pdf
http://timesofindia.indiatimes.com/business/india-business/Indian-women-will-fuel-3-billion-eshopping/articleshow/32755250.cms
http://blogs.discovermagazine.com/drone360/2015/03/27/drone-delivery-china/
Macroeconomic
http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/09/30/why-foreign-investment-stillpolarizes-india/
http://www.forbes.com/sites/saritharai/2014/09/18/india-wants-to-build-massive-digital-infrastructureto-cover-800-million-rural-citizens-by-2019/
http://money.cnn.com/2015/01/21/news/economy/india-china-fastest-growth/index.html?iid=EL
http://money.cnn.com/2015/03/23/news/economy/india-china-economy/
http://economictimes.indiatimes.com/news/economy/indicators/indias-gdp-to-grow-at-8-3-per-centin-fy17-hsbc/articleshow/46650584.cms
http://www.livemint.com/Politics/RPQoGQAAhIP8ZwmECrChpK/India-to-have-213-million-mobileInternet-users-by-June-Rep.html
http://www.internetlivestats.com/internet-users-by-country/
http://www.fastcompany.com/3014123/fast-feed/by-2017-india-will-have-more-developers-than-the-us
http://www.economist.com/blogs/graphicdetail/2015/02/daily-chart-5
http://www.prres.net/papers/Sonia%20_Real_Estate_Sector_The_India_Story.pdf
http://www.cnbc.com/id/101909588
http://www.joneslanglasalleblog.com/realestatecompass/real-estate/2014/12/indian-real-estate-2014wrapup-crystalgazing-2015/
http://epaperbeta.timesofindia.com/Article.aspx?eid=31816&articlexml=NEW-REGIME-PLANS-TOINCREASE-WORKING-HOURS-Civil-05062014001084&Mode=1
http://www.theglobalist.com/10-facts-literacy-rates-in-india/
17
THE END
Follow me @mhdempsey
Email me at michael@michaeldempsey.me

Report

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Report

Uploaded by

Copyright:

Available Formats

DELIVERING

Delivering India | Indias Rising Online Grocery Delivery Industry

n 2014 I started to notice an increase of

tally different is happening in India.

Delivering India | Indias Rising Online Grocery Delivery Industry

INDIAs eCommerce Industry

Grocery Delivery in India

Penetration of Modern Retail

Changing Customer Behavior

FUTURE OPPORTUNITIES & CONCLUSION

Appendix I - List of Companies

Appendix II - Further Reading/Sources

Delivering India | Indias Rising Online Grocery Delivery Industry

Delivering India | Indias Rising Online Grocery Delivery Industry

Delivering India | Indias Rising Online Grocery Delivery Industry

Delivering India | Indias Rising Online Grocery Delivery Industry

Delivering India | Indias Rising Online Grocery Delivery Industry

GROCERY DELIVERY IN India

Delivering India | Indias Rising Online Grocery Delivery Industry

GROCERY DELIVERY IN India

Delivering India | Indias Rising Online Grocery Delivery Industry

UNDERSTANDING THE CUSTOMER

Delivering India | Indias Rising Online Grocery Delivery Industry

GROCERY DELIVERY BUSINESS MODELS

PURE-PLAY ONLINE ONLY

Pure-play online grocery retailers are

ating with various agricultural co-ops for

These companies build large warehouses

One of the key struggles for this model

Delivering India | Indias Rising Online Grocery Delivery Industry

GROCERY DELIVERY BUSINESS MODELS

Marketplace Provider companies provide

this continues to be the lack of back-end

The Marketplace business model has

In addition, the value of the pricing,

Marketplace companies like AaramShop

Amazon recently launched Kirana Now

Smaller grocers have also attempted to

Delivering India | Indias Rising Online Grocery Delivery Industry

HOW WILL IT CHANGE?

Delivering India | Indias Rising Online Grocery Delivery Industry

res when it comes to eCommerce, with most

Ecommerce accounts for 25-40% of all gra-

sites clocking in a 60-65% success rates. The

de A warehousing real estate in major met-

payments gateways have been largely domi-

ro areas today., and almost 25% of the entire

nated by BillDesk, Techprocess, and CCA-

countrys warehousing demand was driven by

venue, however multiple companies

the eCommerce space. In 2014, eCommerce

emerged within the space over the past few

related retail space exploded, as uptake in-

years including Citrus, EBS, KYash, Zaakpay,

PayU, GoCoin, 2Checkout, and Airpay.

are driving demand in and around Indias ma-

Similar to how companies like SquareSpace

jor cities, while office spaces due to the nearly

have risen to make starting an online business

50,000 employment opportunities created by

easier than ever in the states, Indian compa-

the eCommece industry will also face increa-

nies will surely experience this in the near fu-

sed demand. As tier 2 and tier 3 cities come