FMCG revenues make up $103.7 billion of India’s $1.1 trillion domestic retail market according to 2020 IBEF estimates. As this number grows towards $262 billion in 2025, supported by per capita income growth, discretionary consumer spending, and aspirational young families, consumer goods brands must evolve to maintain relevance. While CPG businesses have so far built on established brands and mass customization, the emergence of a new consumer creates opportunities for smaller brands, localized offerings, private labels, and direct to consumer channels.
We have seen tremendous innovation in direct-to-consumer go-to-market strategies — channel selection, SKU mix optimization, marketing, targeting, fulfillment, logistics, etc. are available out of the box in many instances. However, offline retail continues to be both the largest channel and the hardest one to get right. GT and kirana stores are well entrenched and are a strong consumer preference in urban and rural areas alike. Established FMCG companies have spent years perfecting their offline approach, and new-age brands’ inability to crack this market has severely curtailed their growth potential and addressable market.
The retail market in India is going through grounds-up digitalisation, and smart logistics and distribution will be a fundamental driver of efficiency and margin expansion. Ripplr is transforming the value-chain for brands through its omni-channel, asset-lite, and tech-first approach.
Pulling together a ground-up thesis, the company founded by Santosh and Abhishek is based on decades of collective distribution & logistics experience across companies like Croma, Flipkart, Whirlpool, and Phillips. Ripplr’s technology-enabled distribution system helps new-age brands take the guesswork out of their offline expansion strategy. The same offering also enables established brands to switch to a more formal distribution partner who can offer strong SLAs and high end-to-end visibility. This offering received a strong vote of confidence during coronavirus related lockdowns and supply-chain disruptions, and the company was able to scale revenue 4 times in 2020 in Bangalore alone. For their enterprise clients, the impact has been clear — consistency, transparency, and reliability. Ripplr has achieved operational profitability within a year of launching — not just any year, but a year like 2020!
We are happy to announce our participation in Ripplr’s Series A round on after a stellar 2020 performance. This capital will help the company further increase its retail density in Bangalore and expand into adjacent markets. Offline FMCG distribution is a multi-billion dollar market and can be larger still with the right kind of enablers. Over the next few years, we fully expect Ripplr to be the de-facto offline distribution partner for established and emerging brands alike.