Retail’s unsung hero: How Ginesys’ POS solutions enable transactions worth Rs 25k Cr per year
When a product or service is purchased, a point-of-sale (POS) transaction takes place between a merchant and customer. These sales transactions use POS hardware and software for completion.
In supermarkets, clothing stores, and other retail establishments, the POS software includes features such as inventory tracking, customer database, purchase orders, etc. It could also include barcode scanners.
India has a huge retail market, and retailers need to ensure that their POS solutions have all the necessary features. With the advent of digital mediums, retail is going online, and merchants need to make the leap as well.
With the retail ecosystem in mind, entrepreneur Prashant Lohia set up Ginesys in 2006. He wanted to develop a complete retail Enterprise Resource Planning (ERP) solution for Indian retailers and brands.
Prashant Lohia, Founder, CEO & CFO, Ginesys
“POS software in India generates a lot of interest but few companies are able to provide a complete solution. Ginesys is an ERP software that covers the entire retail value chain, from manufacturing and distribution, to retail,” says Prashant, who is the CEO and CFO of Ginesys.
The year 2006 seemed to be the right time since organised retail in India was starting to adopt custom solutions. “By working closely with out customers, we developed a generic retail ERP solution. This philosophy has allowed us to incorporate the best practices of retail industry into the solution we have,” he adds.
Speaking the language of the customer is Prashant’s business mantra. “Our customers trust us because we support them by releasing new value-added features and integrations. Ginesys incorporates its customers’ suggestions directly in the core product instead of customising it for particular clients,” he says.
With this model, Gurugram-based Ginesys currently enables Rs 25,000 crore worth of transactions annually across over 500 businesses. It grew from a customer base of a single retailer, four people and one small office in 2006, to more than 500 big retailers, 125 people and five offices. Ginesys records a turnover of more than Rs 28 crore.
“We focus on mid-sized supermarket chains, fashion lifestyle products, and fashion brands,” Prashant adds. Some of Ginesys’ clients are Manyavar, Being Human, V Mart, Mufti, and Soch.
How it began
Prashant was working as a chartered accountant in Kolkata when he realised that existing inventory management and retail software were lacking basic controls. “This was causing huge losses to my clients. So, I started studying software development to build a product to solve this,” he says.
He found friends to accompany him on his entrepreneurial journey. Harsh Nahata, Soumyadip Bhattacharya, and Arjun Roy came together to launched Ginesys.
Ginesys' Gurugram headquarters
“From the start, we were value-conscious in our spending on sales and marketing. Hence, our growth has been primarily through word of mouth. This also reflects in our balance sheets. The business has been healthy and debt-free throughout its existence,” Prashant says.
But how does word of mouth spread? Through happy customers and employees. “More efficient retail means lower prices for consumers, happier and motivated employees. Stable solutions mean less IT headaches for our customers,” he says.
An ERP expert, Prashant uses ERP software for his company to manage all finance, accounting and inventory processes.
One for the future
But there is still room to grow exponentially. “A recent study by The Indian Brand Equity Foundation (IBEF) estimates the industry to grow at a CAGR of over 17 percent over the next four years and reach $1,300 billion by 2020,” he says.
“In the coming years, we aim at acquiring/partnering companies with a unique approach that would help retailers in managing various aspects of their business with the help of modern technology. We will invest in startups in related areas which fit with our business theme, like we did by acquiring Zwing, a mobile POS company,” Prashant adds.
Ginesys is thus actively pursuing a build/buy/partner strategy for non-ERP functions required by retail. The need of retail technology will increase multifold, and Ginesys wants to be known as a one-stop solution provider for all such needs.
Faster customer acquisition is certainly a challenge for Ginesys. However, Prashant maintains that future funding rounds will help the company take care of customer acquisition.
The business’ next move is to transform the entire Indian retail space into digital. “Tech-enabled retailers have an added edge over their competitors and grow rapidly. We acquired Zwing to bring small shops into the digital arena,’ he says. “Moving ahead, our partnerships and acquisitions will help digitise all the operations of a retail business.”