Leveraging their learnings in supply chain and logistics management at the Boston Consulting Group and their personal experiences with family businesses, Rahul Aggarwal and Hariher Balasubramanian started BuyEazzy.
Founded in 2021,is an e-commerce platform that focuses on beauty and personal care products. The Mysuru-based startup aims to be the go-to shopping destination for Tier II cities and beyond.
BuyEazzy has seen 100% monthly growth over the past six months and is currently processing over 2,000 orders per day. The startup is operational in eight cities in Karnataka: Mysuru, Hubli, Dharwad, Mangaluru, Belagavi, Coorg, Hassan and Tumkur.
It claims to have onboarded over 75,000 first-time online shoppers while working with over 1,000 neighborhood stores. About 50% of BuyEazzy’s orders come from distant cities and towns related to these cities.
During his previous role as Project Manager at Boston Consulting Group (BCG), Rahul worked in remote areas such as Dhanbad, Jaunpur, Angul and Sultanpur.
During a project at BCG, Rahul meets Hariher, an engineer and MBA graduate. The two were supposed to travel to London for the project when the pandemic hit. And it changed the course of their professional life.
“I am a fourth generation entrepreneur in my family. I own small candy and clothing shops in Delhi. Trading is something that comes very naturally to me. Hariher has a very deep understanding of the South Indian retail market,” says Rahul.
“We always wanted to create a consumer-oriented business, but leveraging our understanding and experience of the supply chain (at BCG). The market we are looking at and the white space we are targeting, namely Bharat, is difficult,” he adds.
As the co-founders are based in Delhi and Chennai, the question arises as to why choose Mysuru to start a business.
“We wanted to take ownership of a city that is a true representation of the middle class who are our target users. We also had to think longer term, where we thought about the availability of tech talent. Mysuru offers this kind of strategic advantage three hours from Bengaluru. At the same time, it provides access to all southern states with an overnight delivery mechanism,” Rahul said. Your story.
How it works
Instead of digital marketing, BuyEazzy has a unique customer acquisition model where it leverages the relationships small business owners have with their customers to convert them into BuyEazzy users.
For example, the e-commerce platform partners with a salon that sees between 12 and 15 customers per day. The salon promotes the application and receives a commission for registrations. BuyEazzy has many such partnerships at Kirana stores and salons in these Tier II cities.
“We are capitalizing on the trust that already exists between these small stores and the end users who come to the store, who have already benefited from a service or who have purchased from these people. These companies have a very unique proposition to say that “I started an online business with this company”. Here, that business owner is front and center, but the customer also gets to know about the BuyEazzy brand,” says Rahul.
“These people can earn up to 50% of their current income without impacting their business,” he adds.
The startup has its own last-mile delivery fleet and handles supply and logistics.
As a beauty and personal care products marketplace, BuyEazzy has implemented strict quality control measures. She also makes sure to work with a handful of suppliers, and works directly with brands.
Working with local suppliers and local distributors, the startup claims to be able to deliver orders within 24 to 48 hours. About 80% of the startup’s supply chain is localized.
“Other startups with a centralized supply chain aren’t able to do that,” Rahul says.
Marks in Mysore
Tier II cities and above have unique consumption patterns and brand preferences, says Rahul Your story.
“Specific regional beauty and personal care brands don’t have that kind of market share in Mysuru, but there are regional Ayurveda brands that we work with,” says Rahul.
“D2C brands still have major penetration in these cities and towns because they have focused on metro and Tier I through digital marketing. When we become the go-to market in those cities, we also become the go-to market channel for those D2C brands,” he adds.
Tier III and IV cities are availability-driven markets, and less of an awareness-driven market, he concludes.
The market plans to expand to 20 cities and integrate more than one million offline users with e-commerce within a year. Some of these cities include Coimbatore, Davangere, Shivamoga, Tirupur, Salem and Trichy.
In August 2022, BuyEazzy raised $1.3 million in a seed round led by Incubate Fund India and M Venture Partners, along with participation from angels like Superb Capital and others.
He plans to use these funds for product improvements, team building and expansion.
Other e-commerce startups based in Tier II and III cities include Kurseong-based Daammee, Bhubaneswar-based Maavni Designs, Jaipur-based MEDdelivery, Patna-based Flyseas, and Pune-based Maneraa.
India’s e-commerce industry is on an upward growth trajectory and is expected to overtake the United States to become the second largest e-commerce market in the world by 2034. The e-commerce market is expected to reach $200 billion. by 2026, up from $38.5 billion in 2017, according to an IBEF report.
With the falling cost of Tier II services and other smaller cities, most of the growth in online retail in the country will come from these regions. Overall, online shoppers in India are expected to reach 220 million by 2025.
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