Franchise model is expected to reduce DealShare’s operational cost by 20%.
DealShare, one of India’s fastest-growing e-tailer, has announced that it is planning to strengthen its operations as well as aggressively expand its market presence by adopting innovative strategies. As part of the brand’s new business strategy, DealShare will be adopting the ‘Franchise Model’ in all towns below 5 Lac population.
Inspired by the dealership model that FMCG companies follow, in this model while DealShare will take the onus of business generation, the franchisees will be responsible for addressing the demand as well as stock keeping. In a phased manner, DealShare plans to on-board 1000 franchises across 50 cities by December 2021.
Commenting on this new initiative, Vineet Rao, Founder & CEO, DealShare, said, “At DealShare, our vision has always been to take e-commerce to the next level. Be it the product array or offers or even the business models, we have been always experimenting and trying to provide our stakeholders with the most optimal experience. The franchise model is a testimony of this. With this innovative model, we are aiming to increase DealShare’s market presence from the current 25 locations to 100 locations by December 2021. We also plan to venture into 10 new states by 2022, covering 500 serviceable locations.”
“One of the major challenges for e-commerce players is the high operational cost in terms of maintaining warehousing, last-mile connectivity, and procurement. Our Franchise Model will be able to address these issues. In fact, the pilot phase that we did in Ajmer enabled us to rapidly scale up our presence in the city within 2 months. It also helped us to optimize our operational costs by 20%. We are confident the pan India results will also be on similar lines helping us to create a new narrative in the e-commerce business,” he further added.
From a new market expansion perspective, DealShare is looking at venturing into a large number of cities in Gujarat and Rajasthan.
Elaborating on the new strategy, Sourjyendu Medda, Founder, CFO and CBO, DealShare, stated, “Apart from enabling us to create a holistic, seamless and fast shopping experience for our customers, the model will help entrepreneurs as well as aspiring entrepreneurs to leverage the opportunities that the ecosystem offers. This model will offer franchisees to grow their business by up to 100% and reduce procurement cost by 3%.”
For DealShare, which recently raised $21 million during their Series C funding, the focus has been to utilize the freshly acquired capital to expand its footprint pan India, strengthen its technology, and built a talent pool. Through the new franchise model, DealShare would instrumentally boost its market expansion process by 2X.