Nearbuy

nearbuy
Type of business Private Limited Company
Type of site
 Online Services Marketplace
Area served India
Founder(s) Ankur Warikoo
Sumeet Kapur
Snehesh Mitra
Sachin Kapur
Ankur Sarawagi
Ravi Shankar
CEO Ankur Warikoo
Industry Electronic commerce
Employees ~600
Website www.nearbuy.com
Launched January 2011
Current status Active

nearbuy (earlier Groupon India) is a pan-India online marketplace platform (with Groupon as a minority stakeholder now) that allows customers to connect with local merchants and engage with each other across 33 cities in India. As a business, it allows customers to Discover, Buy and Save on these local merchants.

nearbuy operates in the $26Bn Services Retail market in India, comprising

Incorporated in May 2010 as Groupon India Private Limited, the company operated as a 100% subsidiary of Groupon Inc until August 2015, when it went through a management buyout and in the process changed its name to nearbuy,[1] after successfully raising USD 20Mn (about INR100 crores) funding from Sequoia India,[2] an arm of a Menlo Park, California-based venture capital firm, Sequoia Capital.

nearbuy has Ankur Warikoo as the Cofounder & CEO, alongwith 5 other founders.

History

Early History

Groupon was incorporated in India in May 2010 by acquiring SoSasta.com (a deal website), then changed its name to Crazeal (short for Crazy Deal) because the domain name and trademark they wanted (Groupon) had already been taken by someone else in India. Eventually, after winning a legal battle, the company rebranded itself to Groupon India in 2013.[3]

When it started operations in India as Crazeal in 2011, it featured one daily deal on the best things to do, see, eat and buy across 10 cities in India. The top 3 players in the Indian deal-buying space at the time were Snapdeal, Dealsandyou and mydala, with SoSasta a distant fourth, according to a comScore study.[4]

Management Buyout

In August 2015, Groupon India went through a Management Buyout to create an independent entity named nearbuy.

In the words of the then CEO of Groupon India and current CEO and co-founder of nearbuy, Ankur Warikoo, "We feel the path (Groupon) India will follow to become a leader in local commerce may not be one that Groupon follows globally." [5]

A similar sentiment was earlier echoed by Groupon Inc.’s interim Chief Financial Officer (CFO), Brian Kayman, “India, like Korea, is a fast-moving and competitive market that we believe will need significant investment to fully unlock value.”[6]

After the rebranding of nearbuy in August 2015, Groupon became a minority stakeholder in nearbuy India’s operations. The new entity (nearbuy) has one member each on its board from Sequoia India and Groupon (aside from Ankur Warikoo representing the nearbuy founders).

Post August 2015

After its 2015 rebranding, nearbuy focused on moving from the Groupon technology to the inhouse nearbuy technology. Ever since that happened in February 2016, nearbuy has doubled its merchant coverage (by twice, since August 2015) while releasing new platforms for customers and merchants.

Business

Business Model

nearbuy does not charge anything from merchants for listing their services on the platform. Once they list the services, consumers prepay for these services. After receiving full payment from a customer, nearbuy keeps its commission and transfers the balance amount to the merchant after the product or service is availed.

The commission is 15-16% at an average, and it ranges from 2% to 25% based on the merchant popularity and categories.

Geographic Markets

As of May 2016, nearbuy operated in the following cities (33) in India:[7]

Agra Delhi Jaipur
Ahmedabad Noida Jodhpur Nagpur
Amritsar Faridabad Kanpur Pondicherry
Aurangabad Goa Kochi Pune
Bangalore Gurgaon Kolkata Shimla
Chandigarh Guwahati Lucknow Surat
Chennai Hyderabad Ludhiana Udaipur
Coimbatore Indore Meerut Vadodra
Dehradun Mumbai Visakhpatnam

Competitors

Some of nearbuy's direct and indirect competitors in India include:

Financials

nearbuy's major stakeholders in India include:

nearbuy Mobile Application

nearbuy's mobile app works on smartphones (Android and iPhones) and is available for download via Google Play Store and iOS App Store.[8]

As of October 2016, the Android and iOS nearbuy app contributes over 65% of the total revenue, while mobile web contributes around 7%.

nearbuy Promise[9]

nearbuy states on its website that it backs every sale with a no-questions-asked refund in the following conditions:

nearbuy Merchant-Facing Applications

nearbuy Merchant Centre[10] website allows enlisted merchants to offer deals and update deal-related information in real time.

Awards & Recognition

Awards – 2013

The company won 4 awards from World Brand Congress, an independent not-for-profit body.

Recognitions – 2014

References

  1. ↑ "Company Overview of Nearbuy India". http://www.bloomberg.com/. Bloomberg. Retrieved 26 May 2016. External link in |website= (help)
  2. ↑ Elahi, Amina (10 August 2015). "Groupon gives up control of India business unit". Chicago Tribune. Retrieved 26 May 2016.
  3. ↑ Singh, Devika. "65% of Groupon users have already moved to Nearbuy: CEO Ankur Warikoo" (17 February 2016). Business Today. Retrieved 27 May 2016.
  4. ↑ Kumar, Kumar. "Will Rebranding SoSasta As Crazeal Help Groupon in India?". TechInAsia. Retrieved 27 May 2016.
  5. ↑ Bailay, Rasul (10 August 2015). "Groupon Inc no longer controls Groupon India; to be rebranded as Nearbuy". Economic Times. Retrieved 26 May 2016.
  6. ↑ Elahi, Amina (10 August 2015). "Groupon gives up control of India business unit". Chicago Tribune. Retrieved 26 May 2016.
  7. ↑ nearbuy. nearbuy http://www.nearbuy.com/. Retrieved 27 May 2016. Missing or empty |title= (help)
  8. ↑ "FAQs". nearbuy.com. nearbuy. Retrieved 27 May 2016.
  9. ↑ "nearbuy Promise". nearbuy.com. nearbuy. Retrieved 27 May 2016.
  10. ↑ "Introducing nearbuy Merchant Centre". YouTube.com. YouTube. 19 September 2015. Retrieved 27 May 2016.
  11. ↑ "Award Winners 2013". World Brand Congress. World Brand Congress. Retrieved 27 May 2016.
  12. ↑ "Award Winners 2013". World Brand Congress. World Brand Congress. Retrieved 27 May 2016.
  13. ↑ "Award for Brand Excellence in E-Commerce and Internet Sector". World Brand Congress. World Brand Congress. Retrieved 27 May 2016.
  14. ↑ "50 Most Talented CMOs of India". World Brand Congress. World Brand Congress. Retrieved 27 May 2016.
  15. ↑ "40 Under 40". Fortune India. Retrieved 27 May 2016.
  16. ↑ "APEA 2014 INDIA". Asia Pacific Entrepreneurship Awards. APEA. Retrieved 27 May 2016.
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