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Simsim shutdown, Email for shopping, Shopsy's mojo

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Mar 27, 2023

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D2C Pulse is a newsletter written by the team at GlobalBees, curating happenings in the direct-to-consumer ecosystem of India.

Lots of action by the government on the ecommerce front this week.

Firstly, the government may make ecommerce players liable for seller fraud. The rules will be formulated after the ecommerce companies respond to queries related to the issue sent to them by the Ministry of Electronics and Information Technology (MeitY), said a ministry official. MeitY’s note, which was sent last week, asked ecommerce companies to clarify their role “as an intermediary.”

While it’s a step in the right direction given the recent proliferation of fake products, we just hope that the government doesn’t use a tank ( kinda regulation) to kill a fly.

Secondly, a policy on e-commerce being put in place by the government is expected to put an end to inventory-based sales on platforms. The policy, which has been in the works for several months, has been revived with inter-ministerial consultations on the issue having begun over the last few weeks. The move comes at a time when DPIIT is also piloting the rollout of Open Network for Digital Commerce that seeks to democratise online sales for consumers as well as small sellers.

🗞️Marketplace Updates

Online beauty and grooming products marketplace Purplle’s s revenue from operations grew 71.6% to Rs 219.88 crore in FY22 from Rs 128.15 crore in FY21. Meanwhile, losses for Purplle jumped 3.9X to Rs 203.63 crore in the last fiscal year from Rs 52.18 crore in FY21. Interestingly, the sale of its store brand products contributed 16.2% of the total revenue, which increased 4.34X to Rs 35.61 crore in FY22.
You've got mail: An email for shopping- that’s what the good folks at Flash are recommending. Flash is attempting to solve this problem by creating a solution (read email ID) that you can use for all e-commerce needs, and it will even reward you to use the service. Flash lets you create an email ID (with @flash.co domain) that you can use on all shopping platforms. In return, you can earn rewards such as coupons and cashback. The inbox is divided into two parts: Handpicked and Others. The Handpicked inbox has important emails such as order delivery updates and sign-up verifications, while the Other section carries promotional emails.
Shopsy is yet to find its mojo. Nearly two years since launch, and with Reliance's JioMart, Amazon-owned GlowRoad and Shop101 snapping at its tail, Shopsy has tried several tricks in the book to convert fence-sitters to loyal customers. Shopsy has strayed away from the reseller model and is focused on driving direct purchases from consumers to grow the platform—similar to its parent Flipkart, and a model Meesho too has embraced. The marketplace has attempted multiple iterations along the way, besides changing leadership, with Adarsh Menon taking over as its head in July last year. Check out its interesting two-year journey
Simsim Shutdown: YouTube is shutting down its live social commerce app, Simsim, less than two years after acquiring the Indian startup. YouTube acquired Simsim in mid-2021 in a deal that valued the Indian firm at over $70 million. At the time, YouTube said the acquisition will enable the video streaming giant to help small businesses and retailers in India reach new customers in even more powerful ways.
Simsim sought to help small businesses in India transition to e-commerce by leveraging the rising popularity of video and creators. The startup’s eponymous app acted as a platform to connect local businesses, influencers and customers.
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🍕D2C Bites

D2C Lifestyle Brand Zouk Bags $ 3M Funding to mark its full-fledged foray into the offline domain and strengthen distribution channels. Founded in 2016 by IIM Ahmedabad alumni and wife-husband duo of Singh and Krishnakumar, Zouk began with an investment of INR 20 Lakh. The startup offers handcrafted and cruelty-free handbags, shoulder bags and laptop bags. It has also ventured into the footwear and wallets segments and also sells other accessories on its platform.
Milk to Farm: Fresh farm produce and supply chain startup Sorted has raised over $5 million in its ongoing seed funding. Sorted is Anant Goel’s second venture. Previously, he spearheaded Milkbasket. Sorted allows offline mom and pop stores to place orders for fresh produce of fruits and vegetables through its app, and have it delivered the next morning straight from farmers.
Conversation media platform Bobble AI launched Bobble Super, a commerce offering that allows users a hassle-free, personalised and real-time intent-based shopping experience directly on its keyboard application. Users can seamlessly avail services such as food ordering, travel and ticket booking, and online gifting as more than 100 brands are currently available on the platform.
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📢Leader Speak

Get the latest on what D2C Founders and Leaders had to say this week!

“We have brought a million small businesses to sell online but in India, the biggest category in which most small businesses exist is grocery. I want to solve that—how do we get these kiranas to come online? That’s the next frontier for us,” Vidit Aatrey, Founder, Meesho

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