Why this ex-investor from Omidyar Network decided to startup in the hyperlocal segment 

Shruti wanted to start a travel company that focussed on offbeat destinations when the pandemic hit India. She knew travel was off the cards for now, and the former impact investor from Omidyar Network decided to look closely at social commerce. 

This was the genesis of ApnaKlub, founded in July 2020, along with Manish Kumar. ApnaKlub is an agent-led B2B wholesale platform for fast-moving consumer goods (FMCG). 

The startup aims to encourage and empower people to set up their hyper-local micro-distribution businesses by providing them with better profit margins, access to a large assortment of brands and SKUs, and supply consistency.

Why social commerce?

An IIT Delhi alum, Shruti completed her MBA from Harvard Business School. She saw the COVID-19 pandemic hit supply distribution as the preventive countrywide lockdowns stalled the work of traditional wholesalers. 

These business owners were left vulnerable to the risk of stuck inventory, struggling to find the manpower to run warehouses, etc. 

“With deep insight into the issues of the traditional wholesale business, we had to figure out how to fill those gaps. The Eureka moment came in October when the company saw young people in Tier II and III areas come forward to buy FMCG goods in wholesale quantities to plug local availability gaps,” Shruti tells HerStory. 

The product 

Apnaklub connects retailers (kirana and general stores) in India’s semi-urban and rural areas to a wide range of consumer goods and brands via its network of digitally connected wholesale partners. To support the wholesalers and retailers, the startup has developed multiple asset-light and zero investment models with market and distribution support. 

It also deployed active POCs, quick support resolutions, and customer sundown rules across departments to support all its partners and their customer channels. 

“We started Apnaklub in an office-warehouse in Delhi, where we would sit in the middle of boxes of FMCG goods and do calls, build products, run training webinars, etc.,” says Shruti. 

ApnaKlub’s team has deep knowledge and insight into traditional, organised, and unorganised wholesale. Collectively, the startup’s workforce has 100+ years of experience in the Indian FMCG sector, having worked at Future Group, Walmart India, Metro Cash and Carry, Reliance Retail, etc. 

“We also ran direct and indirect research projects and channel tests to understand the nuances of different channels, the consumer persona, and how Apnaklub could add value,” she adds. 

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Workings and funding 

Apnaklub has created a three-point process to start a successful micro-business without investing any amount of money.  Users can register with their phone number and a business document, download the product catalogue, and add margins to it. 

They can also order from a retailer or a wholesaler, punch the orders on the app, and get them delivered directly to the customer. The margins are sent to the partner on successful delivery.

Besides raising funding this year from Whiteboard Capital, Blume Ventures, and Sequoia Capital India’s Surge, Apnaklub has served over 5,000 partners across 6,000 pin codes in India, with double-digit monthly growth in terms of GMV. 

While the startup declined to share its pricing schemes for its clients, Shruti says ApnaKlub’s clients earn a take rate on each order fulfilled through its network. 

She says the startup also plans to layer other services onto its network, such as providing pricing and market intelligence data to small and large brands alike. 

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Market and future 

India is home to over 63 million micro, small and medium enterprises (MSMEs), many of which pivoted to start new business models to survive amidst the COVID-19 pandemic. 

In fact, startups like Dunzo, Swiggy’s Instamart, GoodBox, and Dukaan, among others, are focused on helping the local grocer. 

ApnaKlub wants to grow its ApnaKlub Partner Programme, which currently includes the participation of over 5,000 new wholesalers and counting. 

It provides partners with personalised training and support to create sustainable wholesale businesses for themselves, while also earning a commission on each order they fulfil. 

“Long term, Apnaklub’s mission is to encourage and empower people to set up their hyper-local micro-distribution businesses and create livelihood opportunities in Tier II, III, and beyond markets,” says Shruti.

Speaking on the challenges faced as a woman founder, Shruti says, “I would advise all entrepreneurs to find and build mentorship and allies network. These are people you must have worked with and created value for. They will then vouch for you, give warm introductions, and help to work through difficult situations.” 

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