Yes, E commerce is big with experts predicting a market size of close to 50,000 crores in 2014 and little wonder, we hear of new players entering the market on a regular basis. VCs says, “why not” there is ample to grab for everyone. While this may be true, what is also true is how the new e commerce entrants will differentiate, work on their margins, and stay put for the long haul will decide who all will drive the next online consumption story.We at YourStory got a chance to interview one such new entrant who is rapidly scaling up and leaving no stone unturned to differentiate, Raj Iyer, Founder and CMD, Acumen Solutions (owning the brand groopoffers.com)
Excerpts of the Conversation –
Groopoffers.com, what deals can online users expect from you?
At Groopoffers, users can expect Daily deals in branded product categories, Real Estate and soon deals in Automobiles. From day one, we have ensured that whatever deals we give on our website has genuine and high value for end consumers..in the process making Daily deals a part of their regular consumption
How are you differentiating?
If you look at the deals listed on our site, you will see how we are offering deals on branded categories – from LCD TVs.. Smart phones to high end restaurants. We don’t want to compete on low margin categories currently. How has the response been so far?
We technically went live In January and are seeing good traction. What personally gives me joy is the repeat customers we are seeing online. I believe having regular/loyal consumer base will be of the key drivers to our growth.
What is the cost of acquisition per customer for you?
If we take into account all the spends we are doing, I would say its ten rupees per acquisition.
Real Estate as a category- how easy or difficult is this space to sell online?Contrary to popular myths, I believe if you have a compelling offer it is easy to attract real estate buyers online. Some of the properties we are selling online are very high end with a considerable discount of over 50 lakhs rupees etc..now if you have a discount like this, it is easy to convert it into a transaction.
Yes, at the same time I also believe it is a category that needs to evolve in India. Most of the builders in our country still remain in the background and transparency remains a hurdle. Yet, we are finding the new bunch of builders, real estate owners who are excited about exploring this way. We have seen a good response and as I mentioned earlier, with valuable deals in this category..this should grow exponentially.
So, what is Your Story prior to Groopoffers?
I started my own BPO in Ahmedabad a few years back. Currently the BPO has over 450 employees and is doing good. I have hands on experience of starting up, scaling and running a profitable venture. Also early on in the last venture I had my share of pitfalls, recession effects etc which molded me into a better entrepreneur….( or so I believeJ ) Have been lucky to work with some of the best talents in the industry and now for Groopoffers have partnered with some incredible guys, who bring their own sets of skills.
Bootstrapped? Planning to raise funds?
Completely bootstrapped with cash infusion coming from my last venture. Also with inhouse call centres, technology infrastructure in place we are doubling up the resources for Groopoffers. Yes, we have plans to raise external money once we build a large customer base. We are just two months old and I think it will take a few months before we can start talking to the VCs etc.
What can we expect in near terms?
A bountiful of exciting deals, launch of Automobile deals (already getting a lot of user queries on this one) and top notch user engagement.
Interesting.
While I go and check in detail all the offers at Groopoffers.com, you write in your views and feedback.
Follow this space to know the updates on the Groopoffers story.
Shradha Sharma
