Fintech firm Suvidhaa plans e-commerce foray
The new marketplace will be called Suvideals.ooo and will focus on selling only one branded product per day at highly attractive liquidation price until inventory lasts.
The new marketplace, currently run as a closed beta with test users, will be called Suvideals.ooo. The platform will focus on selling only one branded product per day at highly attractive liquidation price until inventory lasts.
“We plan to offer single branded products per day to the customer,” said Paresh Rajde, founder, Suvidhaa Infoserve, declining to provide further details. The platform would be operational soon.
Founded in 2007, Suvidhaa Infoserve is into the business of offering transaction services that include utility bill payments, insurance premium renewal collection, telecom, mobile, DTH recharges, travel ticketing, domestic remittance and merchant acquiring services. It had last year picked up a 5% stake in Infibeam.com, an online marketplace of Infibeam Avenues Ltd. After amalgamation, Infibeam Avenues will have a substantial stake in Suvidhaa.
Infibeam.com is being replaced by Suvideals.ooo, helping create an exclusive marketplace for clearance/liquidation products only.
At present, Amazon, Flipkart, Snapdeal and others are focused on adding more product categories to drive GMV (gross merchandising value).
Suvideals.ooo will be a mix of online and offline, where clearance/liquidation products would be sold as flash sales. Both traders and individuals can buy.
Currently, there are more than 91,000 Suvidhaa centers/franchise across India, mostly in Tier-2, Tier-3 cities and smaller towns and villages. Suvidhaa currently provides last-mile financial services to more than 45 million customers through multiple delivery platforms.
Mostly the small business and traders or even individuals who are engaged in unorganized liquidation channels will be the target sellers on this new marketplace. Sources said that currently liquidation/clearance channel traders may be selling on existing marketplaces, but they lack promotional support.
“Chances that your product will be promoted on an eCommerce platform are not guaranteed for us,” said a liquidation/clearance channel trader.
Globally, there is only one player in this space, Woot. The Texas-based internet retailer startup shot to popularity with its “one deal per day” idea. Founded in 2004, Woot was later acquired by Amazon in 2010.
As per sources, unorganized retail in India accounted for about 90% of the total retail revenue, compared with the sector’s contribution of 15-20% to total sales in the UK or the US.
While there is no formal report on the market size for clearance sales in India, it is reasonable to assume that annually on an average 8% -10 % stuck inventory (unsold/leftovers inventory) gets liquidated through various channels.