By Tricitynews
Chandigarh
01st November:- Since the year 2006, the face of Indian companies
has changed with the advent of E-Commerce in India. E-commerce simply put is
buying of products or services online. So Amazon, Flipkart, PayTm, Zomato, Ola
and all the 21 Unicorns of India are e-commerce players.
The
continuous upgrade in technology like 4G revolution has helped these companies
to grow exponentially as the internet penetration in India increased from 4% in
2009 to 40% in 2018. The result is that today the e-commerce business has grown
from $3.9 Billion in 2009 to $38.5 Billion in 2019.
Everything
about e-commerce is quite rosy as e-commerce also seems to be the most sought
after area by the Investors. But when companies like e-Bay and Shopclues wind
up, the dark side of the e-commerce is thrown open.
None
of the Ecommerce companies in India are making profit currently except one i.e.
Pumpkart.com. Pumpkart which is a Mohali based B2B e-commerce startup is
running a bootstrapped operation and has been continuously been profitable for
the past 2 years.
Currently
working in the Brand to retailer model, Pumpkart.com started as a B2C ecommerce
company selling pumps. But with the learning curve, the company pivoted
eventually attaining profitability.
When
asked about the key reasons for turning profits in an industry known to guzzle
up money, KS Bhatia, founder of Pumpkart.com reveals the key ingredients.
K S Bhatia said that location has been one main reason – while almost all
Unicorns in the startup Space came up from the Silicon Valley of India,
Bangalore or from Gurgaon, surviving the initial years in these locations is
tricky. The cost of living and the cost of talent in these cities is extremely
high and the burn rate increases. With limited resources in hand, Pumpkart.com
decided to station in Chandigarh where there is no dearth of talent and the
cost of living is conservative. This gave Pumpkart an opportunity to experiment
with its business model as the runway for it was now longer.
K S
Bhatia added that we understood the customer well – the key to the success of
Pumpkart’s business is its understanding of the intricate Retailer Market which
is under an onslaught from online players. Pumpkart has more than 5000
retailers onboard currently and is working with them by equipping them to
compete with the discount ecommerce portals.
What’s
more, Pumpkart has implemented Boot Strapping – which means that it has never
actively sought funding till date and is a bootstrapped organization. Looking
at the business commitment and model, Dr. Ritesh Mallik, founder of Innov8 did
an angel funding around 2 years back. Dr. Dinesh Dua, CII Chairman for North
India also invested in Pumpkart around 2 weeks back in personal capacity. But
the focus on Profitability has kept Pumpkart away from the ongoing trend of
burning money.
KS
Bhatia, does not shy away from learning and improving continuously which is the
reason why he brought Dr. Ritesh Mallik and Dr. Dua on board on the Pumpkart.
Their experience and knowledge has helped Pumpkart become more focused and
profitability Centric.
Pumpkart
aims to become one of the first Profitable Unicorn from India and is currently
aggressively working towards it.
It is
noteworthy that before Pumpkart only Bookmyshow was profitable, but the latter
too suffered losses in 2018.