Rahul Chowdhri, Managing Partner at Stellaris Venture Partners, discusses whether direct-to-consumer startups in India can scale to $100 million in ARR.
“So Mamard is already hitting that number very close to that. So I don't see why that can't happen.”
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More from Rahul Chowdhri
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Chowdhri: K-10 tutoring must be full-stack, not an open marketplace
“We did not feel that this can be a marketplace platform because parents have no way of figuring out who's a good teacher. It is very hard to, for parent, you know, in unlike, let's say e-commerce where you buy a shirt, if you don't like it, maybe you don't wea…”
Rahul ChowdhriOct 13, 2020▶ 22:42Rahul Chowdhri, Stellaris Ventures on surge of Direct to Consumer brands in India
Insight
D2C brands need high margins, AOV, and frequent purchases to succeed
“We needed to find areas where things can be sold online both on these commerce platform and also direct to consumer through your own website. And that meant two things. One is high gross margin and good enough EOV so that you can make money on every order. The…”
Rahul ChowdhriOct 13, 2020▶ 5:53Rahul Chowdhri, Stellaris Ventures on surge of Direct to Consumer brands in India
Insight
Chowdhri: Brand Moats Require Shifting From Functional to Emotional Differentiation
“When this, when you start, it is typically a functional benefit that the consumer needs to like, and it has to be different than what is otherwise available in the market. That's when you stand out. Now those functional differentiation doesn't stay too long be…”
Rahul ChowdhriOct 13, 2020▶ 12:35Rahul Chowdhri, Stellaris Ventures on surge of Direct to Consumer brands in India
AssertionNot checkable as stated
Chowdhri: Shop101 generates positive cash on every order
“In fact in last several months they also, I would say you know, they make good cash on every order that they do.”
Rahul ChowdhriOct 13, 2020▶ 28:17Rahul Chowdhri, Stellaris Ventures on surge of Direct to Consumer brands in India
AssertionSupported
Unlike Meesho, Shop101 lets creators directly sell their own inventory
“Most of the other guys have been primarily doing the supply side business, which is to tie up with manufacturers and help people sell those items. But the first model allows, let's say I'm a fashion designer who does not want any other item other than my own p…”
Rahul ChowdhriOct 13, 2020▶ 29:06Rahul Chowdhri, Stellaris Ventures on surge of Direct to Consumer brands in India
AssertionSupported
Chowdhri: Informal education spending in India exceeds tens of billions
“If you look at the education spent in this country, beyond formal education, that runs in like tens of billions of dollars, right?”
Rahul ChowdhriOct 13, 2020▶ 17:23Rahul Chowdhri, Stellaris Ventures on surge of Direct to Consumer brands in India
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