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Dealshare co-founder on shutting down B2B biz, layoffs, and plan ahead, ET Retail
New Delhi: In the past few months, social commerce startup DealShare has been in the news owing to its internal chaos and layoffs. The company which became a unicorn in January 2022, has been undergoing structural changes in its business model as it faced harsh realities.
The Bengaluru-based firm (now Gurugram-headquartered) was last valued at USD 1.7 billion and expanded to about 150 cities. Last year, DealShare said that its customer base touched 20 million and the e-grocer will invest Rs 500 crore in its private label brands.
In January 2023, the company fired 100 employees and paused its operations in about 50 of its operating cities. In July, DealShare co-founder and CEO Vineet Rao was down from his position and the e-commerce startup announced that it is shifting its headquarters from Bengaluru to Gurgaon.
As per the last communication, DealShare laid off 130 more employees and shut down its B2B business, which accounted for 20 – 30 per cent of its total revenue.
In an exclusive chat with ETRetail, DealShare co-founder Sourjyendu Medda shared that today its cash burn is significantly down to about 15 per cent of the peak. In July, he had told ET that the company’s monthly cash burn was down to USD 2 million from USD 11 million earlier.
Medda talked about the rationale behind shutting down B2B business and the plan of action going forward. Edited excerpts below:
DealShare has shifted its base from Bengaluru to Gurugram. Can you explain the thought process behind this shift?
Our primary business geographies are NCR, Rajasthan, West Bengal, and UP, while our headquarters is in Bangalore. It did not make a lot of sense to operate from Bengaluru when the business is more in the northeastern region. So, we decided a while back to shift our business functions to Gurgaon, while the tech and product functions will continue to be in Bengaluru. So, we’re not disrupting that. We have given a lot of time and support to people to manage the shift. More or less the process is complete.
What is the current employee strength that you function with?
I don’t remember accurately, but it is close to 500.
Can you explain the rationale behind shutting down your B2B business? How did the founders, and the board come to this decision?
If you look at the history of DealShare, we started as a pure-play B2C organization. We were organizing schemes in the grocery essential spaces with lesser-known manufacturers and local brands. We also launched our private labels to bring more benefits to the consumers in terms of savings. During this process, we saw the need for B2B supply aggregation, and that is when we launched our B2B vertical.
However, after running it for a few years, we realized, like many other players in this B2B e-commerce space, that the traditional distribution model is still very strong in India as it is very well entrenched, they have the capital adequacy in their network, very low cost of operations, and they are not bound by a lot of compliances which companies like us are increasing our costs. Now, a combination of all these essentially means that B2B will take more time to become profitable.
Given that the market is also not very favourable at this point, it doesn’t make sense to put capital into a business where the valuation is a lower multiplier. And in a B2B business, the value depends more on profitability than the scale. You can bring any amount of scale, but you cannot invest money in bringing that scale because it doesn’t create real value for the shareholders. So, that is where we decided to scale down our B2B arm.
B2B contributed to less than half of your revenues. Now, what are your revenue targets and also your monthly capital outflow?
Given that there are a large number of changes, monthly numbers don’t make sense. So, I can give you annualized projections. We will be around half of what we were in the peak.
Also, now that the B2B business is shut down, the burn has significantly come down. It is now anywhere between 10 – 20 per cent of the peak burn.
What is the company’s strategy going forward? What are the core pillars on which you’re building the company now?
We had a lot of high adoption from consumers on the B2C side and also from kiranas on the B2B side, but ultimately, when you are faced with different market conditions, you have to think differently. That is where we took a step back and decided on what we needed to do now.
Now, essentially we identified 3 big issues – One is that B2B would need more investment and not become profitable as fast as we were thinking. So that was one issue we had to tackle.
On the B2C side, we realized that while adoption was very high, we were facing the challenge of retention. Retention was not as high as we would want for our model to become fully sustainable. Also, the margin mix was not coming out properly. So eventually for the company to make sense, you have to have higher retention and a high-margin profile. You can start with a low-margin profile but have to move to a high-margin profile. That path was going up but was not moving in the manner that we wanted.
It is all about how much you can invest in the business given the market conditions. So as a leadership group along with the board, we decided that it makes more sense to step back and take some hard calls so that we have a better proof of point before again scaling up, and that is what we are building now.
Essentially the changes are that we have shut down the B2B business, and second, we have zeroed down to the core four geographies where customer retention and margins are better. We were operating in eight states, but the other four states were not making that much sense in terms of customer profile, so we are now focused on Delhi NCR, Rajasthan, West Bengal, and UP.
Third, we realized that the Indian grocery business is primarily physical. Dealshare stands for savings and it spans online, offline, and omnichannel.
Can you expand on your offline plans?
Essentially our model is a mass market where we keep only 1500 SKUs, and a lot of them are local brands, small manufacturers, and private labels. We will extend the same model to physical retail. The same amount of savings and the attachment to mass Indian consumers is what we are going ahead with. We are opening neighbourhood stores. Right now, we are piloting the model as neighborhood stores with around 1,500 square feet.
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12 Proven Methods to Make Money Blogging in 2024
This is a contributed article.
The world of blogging continues to thrive in 2024, offering a compelling avenue for creative minds to share their knowledge, build an audience, and even turn their passion into profit. Whether you’re a seasoned blogger or just starting, there are numerous effective strategies to monetize your blog and achieve financial success. Here, we delve into 12 proven methods to make money blogging in 2024:
1. Embrace Niche Expertise:
Standing out in the vast blogosphere requires focus. Carving a niche allows you to cater to a specific audience with targeted content. This not only builds a loyal following but also positions you as an authority in your chosen field. Whether it’s gardening techniques, travel hacking tips, or the intricacies of cryptocurrency, delve deep into a subject you’re passionate and knowledgeable about. Targeted audiences are more receptive to monetization efforts, making them ideal for success.
2. Content is King (and Queen):
High-quality content remains the cornerstone of any successful blog. In 2024, readers crave informative, engaging, and well-written content that solves their problems, answers their questions, or entertains them. Invest time in crafting valuable blog posts, articles, or videos that resonate with your target audience.
- Focus on evergreen content: Create content that remains relevant for a long time, attracting consistent traffic and boosting your earning potential.
- Incorporate multimedia: Spice up your content with captivating images, infographics, or even videos to enhance reader engagement and improve SEO.
- Maintain consistency: Develop a regular publishing schedule to build anticipation and keep your audience coming back for more.
3. The Power of SEO:
Search Engine Optimization (SEO) ensures your blog ranks high in search engine results for relevant keywords. This increases organic traffic, the lifeblood of any monetization strategy.
- Keyword research: Use keyword research tools to identify terms your target audience searches for. Strategically incorporate these keywords into your content naturally.
- Technical SEO: Optimize your blog’s loading speed, mobile responsiveness, and overall technical aspects to improve search engine ranking.
- Backlink building: Encourage other websites to link back to your content, boosting your blog’s authority in the eyes of search engines.
4. Monetization Magic: Affiliate Marketing
Affiliate marketing allows you to earn commissions by promoting other companies’ products or services. When a reader clicks on your affiliate link and makes a purchase, you get a commission.
- Choose relevant affiliates: Promote products or services that align with your niche and resonate with your audience.
- Transparency is key: Disclose your affiliate relationships clearly to your readers and build trust.
- Integrate strategically: Don’t just bombard readers with links. Weave affiliate promotions naturally into your content, highlighting the value proposition.
5. Display Advertising: A Classic Approach
Display advertising involves placing banner ads, text ads, or other visual elements on your blog. When a reader clicks on an ad, you earn revenue.
- Choose reputable ad networks: Partner with established ad networks that offer competitive rates and relevant ads for your audience.
- Strategic ad placement: Place ads thoughtfully, avoiding an overwhelming experience for readers.
- Track your performance: Monitor ad clicks and conversions to measure the effectiveness of your ad placements and optimize for better results.
6. Offer Premium Content:
Providing exclusive, in-depth content behind a paywall can generate additional income. This could be premium blog posts, ebooks, online courses, or webinars.
- Deliver exceptional value: Ensure your premium content offers significant value that justifies the price tag.
- Multiple pricing options: Consider offering tiered subscription plans to cater to different audience needs and budgets.
- Promote effectively: Highlight the benefits of your premium content and encourage readers to subscribe.
7. Coaching and Consulting:
Leverage your expertise by offering coaching or consulting services related to your niche. Readers who find your content valuable may be interested in personalized guidance.
- Position yourself as an expert: Showcase your qualifications, experience, and client testimonials to build trust and establish your credibility.
- Offer free consultations: Provide a limited free consultation to potential clients, allowing them to experience your expertise firsthand.
- Develop clear packages: Outline different coaching or consulting packages with varying time commitments and pricing structures.
8. The Power of Community: Online Events and Webinars
Host online events or webinars related to your niche. These events offer valuable content while also providing an opportunity to promote other monetization avenues.
- Interactive and engaging: Structure your online events to be interactive with polls, Q&A sessions, or live chats. Click here to learn more about image marketing with Q&A sessions and live chats.
9. Embrace the Power of Email Marketing:
Building an email list allows you to foster stronger relationships with your audience and promote your content and offerings directly.
- Offer valuable incentives: Encourage readers to subscribe by offering exclusive content, discounts, or early access to new products.
- Segmentation is key: Segment your email list based on reader interests to send targeted campaigns that resonate more effectively.
- Regular communication: Maintain consistent communication with your subscribers through engaging newsletters or updates.
10. Sell Your Own Products:
Take your expertise to the next level by creating and selling your own products. This could be physical merchandise, digital downloads, or even printables related to your niche.
- Identify audience needs: Develop products that address the specific needs and desires of your target audience.
- High-quality offerings: Invest in creating high-quality products that offer exceptional value and user experience.
- Utilize multiple platforms: Sell your products through your blog, online marketplaces, or even social media platforms.
11. Sponsorships and Brand Collaborations:
Partner with brands or businesses relevant to your niche for sponsored content or collaborations. This can be a lucrative way to leverage your audience and generate income.
- Maintain editorial control: While working with sponsors, ensure you retain editorial control to maintain your blog’s authenticity and audience trust.
- Disclosures are essential: Clearly disclose sponsored content to readers, upholding transparency and ethical practices.
- Align with your niche: Partner with brands that complement your content and resonate with your audience.
12. Freelancing and Paid Writing Opportunities:
Your blog can serve as a springboard for freelance writing opportunities. Showcase your writing skills and expertise through your blog content, attracting potential clients.
- Target relevant publications: Identify online publications, websites, or magazines related to your niche and pitch your writing services.
- High-quality samples: Include high-quality blog posts from your site as writing samples when pitching to potential clients.
- Develop strong writing skills: Continuously hone your writing skills and stay updated on current trends in your niche to deliver exceptional work.
Conclusion:
Building a successful blog that generates income requires dedication, strategic planning, and high-quality content. In today’s digital age, there are numerous opportunities to make money online through blogging. By utilizing a combination of methods such as affiliate marketing, sponsored content, and selling digital products or services, you can leverage your blog’s potential and achieve financial success.
Remember, consistency in posting, engaging with your audience, and staying adaptable to trends are key to thriving in the ever-evolving blogosphere. Embrace new strategies, refine your approaches, and always keep your readers at the forefront of your content creation journey. With dedication and the right approach, your blog has the potential to become a valuable source of income and a platform for sharing your knowledge and passion with the world, making money online while doing what you love.
Image Credit: DepositPhotos
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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?
In a recent announcement, Snapchat revealed a groundbreaking update that challenges its traditional design ethos. The platform is experimenting with an option that allows users to defy the 24-hour auto-delete rule, a feature synonymous with Snapchat’s ephemeral messaging model.
The proposed change aims to introduce a “Never delete” option in messaging retention settings, aligning Snapchat more closely with conventional messaging apps. While this move may blur Snapchat’s distinctive selling point, Snap appears convinced of its necessity.
According to Snap, the decision stems from user feedback and a commitment to innovation based on user needs. The company aims to provide greater flexibility and control over conversations, catering to the preferences of its community.
Currently undergoing trials in select markets, the new feature empowers users to adjust retention settings on a conversation-by-conversation basis. Flexibility remains paramount, with participants able to modify settings within chats and receive in-chat notifications to ensure transparency.
Snapchat underscores that the default auto-delete feature will persist, reinforcing its design philosophy centered on ephemerality. However, with the app gaining traction as a primary messaging platform, the option offers users a means to preserve longer chat histories.
The update marks a pivotal moment for Snapchat, renowned for its disappearing message premise, especially popular among younger demographics. Retaining this focus has been pivotal to Snapchat’s identity, but the shift suggests a broader strategy aimed at diversifying its user base.
This strategy may appeal particularly to older demographics, potentially extending Snapchat’s relevance as users age. By emulating features of conventional messaging platforms, Snapchat seeks to enhance its appeal and broaden its reach.
Yet, the introduction of message retention poses questions about Snapchat’s uniqueness. While addressing user demands, the risk of diluting Snapchat’s distinctiveness looms large.
As Snapchat ventures into uncharted territory, the outcome of this experiment remains uncertain. Will message retention propel Snapchat to new heights, or will it compromise the platform’s uniqueness?
Only time will tell.
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Catering to specific audience boosts your business, says accountant turned coach
While it is tempting to try to appeal to a broad audience, the founder of alcohol-free coaching service Just the Tonic, Sandra Parker, believes the best thing you can do for your business is focus on your niche. Here’s how she did just that.
When running a business, reaching out to as many clients as possible can be tempting. But it also risks making your marketing “too generic,” warns Sandra Parker, the founder of Just The Tonic Coaching.
“From the very start of my business, I knew exactly who I could help and who I couldn’t,” Parker told My Biggest Lessons.
Parker struggled with alcohol dependence as a young professional. Today, her business targets high-achieving individuals who face challenges similar to those she had early in her career.
“I understand their frustrations, I understand their fears, and I understand their coping mechanisms and the stories they’re telling themselves,” Parker said. “Because of that, I’m able to market very effectively, to speak in a language that they understand, and am able to reach them.”Â
“I believe that it’s really important that you know exactly who your customer or your client is, and you target them, and you resist the temptation to make your marketing too generic to try and reach everyone,” she explained.
“If you speak specifically to your target clients, you will reach them, and I believe that’s the way that you’re going to be more successful.
Watch the video for more of Sandra Parker’s biggest lessons.
