Art of the hyper-value deal; Helping shoppers find their perfect fit
Ecommerce firms are focusing on new shoppers through reforming seller policies and an affordable assortment. The Body Match uses AI and 3D modelling to help customers shop for clothes online. Cradlewise uses AI technology to detect early wake-ups and soothe babies back to sleep.
Hello,
Party up the Dalal Street!
Trump tariffs seem to have failed to sway companies away from the bourses as EV maker Ather Energy filed its red herring prospectus with SEBI to raise Rs 2,626 crore in a fresh issue. The startup reduced the IPO size from Rs 3,100 crore proposed earlier and also halved the offer for sale component.
Flipkart, too, is gearing up for a stock market debut.
The Walmart-backed company is planning to relocate its holding company from Singapore to India, joining the growing list of companies reverse-flipping to India. According to a report by The CapTable, Walmart has been trying to list the ecommerce company for a while now.
Meanwhile, geopolitics is giving India some unexpected benefits.
With Chinese carriers rejecting Boeing planes amid the escalating trade war with the US, Air India is reportedly planning to approach Boeing about acquiring a number of jets the US planemaker was readying for Chinese airlines.
However, give and take is part of every trade.
The Trump administration intends to press India to give online retailers such as Amazon and Walmart full access to its $125 billion ecommerce market, according to a FT report. India allows US ecommerce companies to operate only as online marketplaces for others to sell their products.
You win some, you lose some.
In today’s newsletter, we will talk about
- Art of the hyper-value deal
- Helping shoppers find their perfect fit
- Smart cribs for infant sleep training
Here’s your trivia for today: How long was the longest papal election in the history of the Catholic Church?
Ecommerce
Art of the hyper-value deal
For Amazon and Flipkart, India’s rising internet penetration and digital literacy mean a chance to sell to millions of first-time shoppers in smaller towns looking for affordable products. And they are targeting sellers to cash in on this opportunity through changes in seller policies and concessions.
A joint report by Bain & Company and Flipkart highlights that the share of ultra-low-cost shopping grew from 5% to over 12% of total e-retail in just four years. In turn, ecommerce platforms are also repositioning their budget-friendly offerings, from side projects to mainstream businesses.
Seller-driven growth:
- Both Amazon and Flipkart have turned their focus to hyper-value commerce. Amazon Bazaar, launched in April last year, offers branded and unbranded goods under Rs 1,000. Flipkart launched Shopsy in 2021 as a social commerce app, which has since become a hyper-value ecommerce platform.
- Shifting to a zero-commission model is enabling platforms to attract sellers from Tier II and III cities while focusing on monetisation through advertising, logistics, and fintech services, believes Ravi Kapoor, Partner - Retail and Consumer Sector, PwC India.
- Platforms like Flipkart also give brands discounts on commission rates, especially during sale periods. However, the benefit is accompanied with an expectation of brands spending at least 10% or up to 10% of GMV on marketing efforts into the platform, according to an ecommerce sales executive at a D2C brand.
Funding Alert
Startup: Uniqus Consultech
Amount: $20M
Round: Series C
Startup: Vayudh
Amount: $10M
Round: Undisclosed
Startup: POSHS Metal Industries
Amount: Rs 43 Cr
Round: Undisclosed
Startup
Helping shoppers find their perfect fit
The ecommerce sector is plagued with high return rates. According to the India eCommerce Index Report 2023, overall return rates for all ecommerce products were 10.4% in FY23, with return rates for fashion products ranging from 25-40%.
Deekshana Reddy is on a mission to curb this issue through her startup The Body Match, which uses AI and 3D modelling to help customers shop for clothes online
Digital trial rooms:
- The website allows the customer to input their figure details like its shape and then curate clothes for them, available on TBM’s website from platforms including Myntra, Flipkart, Ajio, Clovia, and Shyaway. The startup also features an AI stylist to help them determine those specifications at a nominal fee.
- TBM is presently developing a feature that would enable the exchange of clothing between users through an interactive closet to promote sustainability.
- Currently, TBM is observing a 7.74% return rate, which it plans to reduce to between 2-5%. The startup also plans to increase its customer base from 1.3 lakh people to 10 lakh all within the next three months, according to Reddy.
Woman Entrepreneur
Smart cribs for infant sleep training
Over the past seven years, Cradlewise, a YourStory Tech30 company, has navigated a journey of tackling a universal parental challenge—sleep deprivation. Transforming the experience of early parenting, the smart crib has earned high praise from startup founders, CXOs, and celebrities, including Sam Altman, CEO of OpenAI.
After finding success in the US and Canadian markets, it has now launched in India with a full-fledged manufacturing unit in Pune.
AI-enabled sleep monitoring:
- Cradlewise was developed as a smart crib and bassinet that uses AI technology to detect early wake-ups and gently soothe babies back to sleep before they cry. Its features include automatic soothing, AI-enabled sleep monitoring, smart sleep insights, and a built-in baby monitor.
- Today, Cradlewise maintains operations across two continents—a 65-member tech team in Bangalore developing their AI solutions, 15 hardware specialists in Pune, and a successful sales presence across the US, Canada, and now India.
- Cradlewise founders Radhika and Bharath Patil want to build an ecosystem of baby products, including launching a toddler bed. They will also expand to Australia, Dubai and the UK in the coming year.
News & updates
- Tariff trouble: The International Monetary Fund sharply downgraded its US growth forecast, while also lowering its outlook for the eurozone and China on the back of President Donald Trump’s tariff blitz. The US is now seen as growing by 1.8% this year. India’s GDP growth for FY26 is expected to be lower at 6.2%.
- Chasing efficiency: Microsoft is doubling down on managing employee performance, tightening the screws on underperformers. According to an internal email, the tech giant has placed a ban on internal transfers and a two-year rehire block.
- Overstated concerns: A new International Monetary Fund study of the AI-climate-energy nexus finds reason for worry, but hardly panic. Under current energy policies, the IMF projects a cumulative 1.7 gigatons of additional CO2 emissions linked to AI's needs from 2025-2030.
How long was the longest papal election in the history of the Catholic Church?
Answer: Three years. The papal election of 1268-1271 saw over 137 rounds of ballots cast.
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