Ecommerce is undergoing a shift where people will be buying more online than offline. With increase in the number of channels and exponential growth in complexity, brands need a suite of solutions. SMBs are facing an existential threat to their businesses as they struggle to adjust to the new normal of selling on ecommerce. Eunimart brings 25 channels of sales across 100 countries, a supply chain management system, a multichannel shipping solution, a retail POS, a marketing automation system and a control tower - plus Artificial Intelligence tools - to manage it all on a single platform.
1) Our platform is currently in use by around 200 paying customers, it has helped these brands to sell on more than 25 e-commerce channels like Amazon, eBay and Shopify across 100 countries through one platform. 2) We have partnered with more than 50 marketplaces, logistics and payments partners combined together. 3) We generated $400K revenue in 2020 with $6mn GMV at around 80% Gross Margin. Our revenue in 2021 is expected to reach $1.5mn. 4) We have partnered with Vodafone and other channel partners for reaching to thousands of SMEs. 5) We are a subject of case study in INSEAD, we were selected by Alchemist accelerator Program, Supply Chain Labs and currently we have joined Techstars LA accelerator program.
1. US companies with $50-1000 mn revenue. Less than 50 stores. 2. E-commerce contribution lower than 20 percent 3. Retail sales are dropping 4. Lack of orchestration and data transfer between various channels 5. Companies unable to retain customers when they're shopping on other channels
Problem or Opportunity
1.8 million businesses are likely to shut down by the time this pandemic gets over. Most of businesses that suffered are retail business, as they failed to adapt to the new normal. There has been an unprecedented shift in people’s buying patterns in 2020 and a recent McKinsey report says that 52% of all brand sales will come from e-commerce by 2025. Most brands today sell on multiple channels of sales to maximize revenues. As the number of channels of sales increases, complexity increases exponentially. Therefore, all brands have to come up with an Omnichannel strategy and the real roadblock for them is the absence of an integrated platform. This normally results in brands either spending large sum of money integrating and scrapping together in-house solutions or restricting themselves to 2 channels of sales at best. In addition to this, SMEs find it very difficult to scale their business, especially cross-border, due to the lack of data, connections, technology, support systems and people that enterprises typically have. Our customers are SMEs with $150k to $500k in annual revenues, 4-20 employees, selling fashion, handicrafts, jewelry and lifestyle products. We have a Blue Ocean Opportunity - Large Global Demand and a Large Number of SMBs struggling to connect to the demand- 29% CAGR, $5BN SAM
Solution (product or service)
Eunimart is the first platform that provides an end to end solution to SMB brands and helps them scale their business globally. It is the unified ecosystem engineered for simplicity, scale & success in omnichannel commerce for retail businesses. Our SaaS platform takes care of everything core to the SMEs – Ecommerce, Shipping, Warehousing and Payments solutions. We use AI to predict sales, get competition insights, optimize pricing, images, content, etc. We help SMBs sell on more than 25 marketplaces, connect to 100 countries with increase in their revenue by twice and 35% decrease in cost.
Our primary competitors are: 1. Channel Advisor: Legacy platform with no focus on revenue generation for SMEs and most functions such as supply chain management, marketing and account management is manual. 2. Pitney Bowes: Pitney Bowes targets very large companies and provides customized solutions. 3. Vinculum: Provides multiple channels of sales but it is also a legacy technology.
Advantages or differentiators
A. Technology as a competitive moat. We sit at the confluence of 3 industries - supply chain, ecommerce and retail. As such we have varied competitors. 1. Oracle, SAP etc provide a wide range of solutions that map our solutions closely for retail and supply chain. However, we provide the same in a unified platform powered by AI 2. Shopify, Magento, etc provide ecommerce enablement platforms, but with the focus on westore creation and do not provide multichannel ecommerce enablement. We provide the same solutions and more but across 25 channels of sales 3. Channel Advisor, Vinculum provide ecommerce aggregation, but without AI, supply chain etc 4. There are other data platforms that provide some of our data solutions as well such as Data Weave. We use data and create Artificial Intelligence solutions for prescribing and predicting solutions."
B. Strategy and ecosystem as a competitive moat. One of the unique strengths that Eunimart brings to the table is the large number of ecosystem partners in each geography that we are either partnered with or are in the process of partnering. Most merchants will continue to use the platform simply due to the flexibility and completeness of solutions that it offers.
Our main revenue model is SAAS. Our scalable revenue model is the commission model which we introduced lately and is showing high promise. Our AI tools save merchants 7-12% costs and also helps them to increase their revenues. Using the AI tools does not need any upfront investment, but we charge 3% commission on the sales generated.
We operate at 84% gross margins. We are currently at $400K in ARR, $2K in ARPA, 200 paying customers. We are aiming to generate $100MN in revenues in 5 years with 6700 paying customers.
We follow a Product Led Growth model to ensure scalability and profitability. Customer acquisition is done through a combination of channel partners like Vodafone, etc. and multi-channel marketing strategy. 50% of the sign-ups come from channel partners, 25% come from organic marketing (content, SEO, PR, social media, etc.) and 25% come from paid marketing (Google Display, Facebook etc.). The 2 main funnels that we use for customer acquisition are cross-border ecommerce (targeting SMEs that are already selling cross-border through Amazon and/or other channels) and ecommerce automation (SMEs looking to enter or scale their ecommerce business). The platform is completely free to use post sign-up. We have 2 main revenue streams which are success based. In case the use lists more than 10k products and/or more than 2 channels of sales and/or more than 500 orders in any month, the subscription paywalls will come up. Subscription starts from $35/month and goes up to $100/month and approximates 1% of the GMV. In case a user switches on AI, they agree to pay 3% commission on all orders for the month generated on the platform.
Money will be spent on
55% of the money will be spent on Business Development, Marketing and Partnerships. 35% of the money will be spent on Technology Development 10% of the money will be spent on Operational Costs.
The primary risk in a business model like ours is technology, which has been mostly eliminated given the stage of our product today. However, the risks we see going forward are- 1) Any changes in the global trade environment such as trade wars, bans, etc. 2) A well-funded entrant capturing the market faster than us since the opportunity exists for everyone at this time.
Incubation/Acceleration programs accomplishment
We were selected by Alchemist accelerator program along with Supply chain Labs. We are now part of the Techstars LA accelerator program.
Won the competition and other awards
We won the Wharton India Startup Challenge and was awarded by the Government of India. We joined Google Surge Program in 2019 and we have also been recognized by the World Economic Forum. We are also a subject of INSEAD case study. We have also won NASSCOM India Top Product.
We are in the process of filing patents for our AI applications