The B2B company acts like a bridge between brands and retailers, to allow on time goods procurement by the latter. It helps retailers in buying goods from different brands and distributors via its mobile application. Retailers can order their requirements whenever they want from the mobile app and get them delivered within 24 hours. This suits retailers have more control over their inventory, over waiting for brands and distributors to reach out to them.
Currently, the company serves in the FMCG sector only. It is a 100 member team based out of Mumbai, Bangalore and Delhi.
What does it do?
Bizom serves as a common platform for retailers, brands and distributors to reach out to each other.
It not only helps retailers to communicate and engage with brands and distributors, but also enables brands to target retailers on the same platform. Moreover, the platform also enables brands to educate retailers and distributors about their new products and schemes.
Bizom has a partner network which works with brands, distributors and large retailers. Its partners help in stocking goods and forming an in between supply chain.
Business Model and Monetization
The startup works on a commission based model. It monetizes by taking margins (ranges from 0-4%) on the stocks delivered through their supply channels. The company claims to be profitable with a total revenue of around a million dollar per year. The app also provides analytics and visibility to brands on the platform which acts as an additional revenue generation model for the company.
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Traction Details and Funding Status
Bizom is currently delivering its services in Mumbai as well as Mysore. The company claims to have around 2500 retailers on their platform. The startup’s Androidapp is rated 4.1 on Play Store with 10,000 – 50,000 downloads.
The company raised a seed funding of $300,000 from Ojas Ventures in 2013 and most of the fund raised was deployed in R&D.
Scope and Future Plans
When asked about the future plans in getting into the other verticals, Lalit said, “FMCG is a large market, it is about $500 billion worth industry in India. FMCG retail is one of the largest verticals in India. This is a big enough pie right now, so for coming 3-4 years I don’t see any other vertical that we’ll be attacking.”
Adding further, he said that the company is working towards reducing the delivery time from 24 hours to 2 hours. Currently, Bizom is developing its technological front, and is focused on bringing about new innovations in order to optimize its operations, especially around its own supply chain. Similarly, it is also looking to expand its geographical footprints majorly in the areas where either distributors have problem reaching out to retailers or where distributors are not reaching at all.
Aggregating all FMCG distribution channels, and providing them with better experience is something which requires experience, research and technological innovations. This is what startups like Bizom and its competitors namely- Just Buy Live, Shopkirana are trying to address.
Even though some of the players have taken hold of tier 1 cities with their models, it will be interesting to see if they would be able to capture tier 2 or tier 3 cities’ markets.