A large pool of ~13 Mn retailers drives this GT opportunity, majority of which are small-scale (class C and D) and concentrated in the tier 2+ markets

1. H1’2022
September 2022

2. The Redseer story on the Indian eB2B Retail Market has
been narrated through below key themes
The Redseer story on the Indian eB2B Retail Market has
been narrated through below key themes
© Redseer 02
GT Opportunity- India’s retail market with ~13 Mn General Trade (GT) stores remains highly fragmented
and inefficient; however, GT will continue to drive it in the next 10 years , Easy accessibility in the remotest
of the areas in the country
eB2B Value Proposition for Retailers and brands- eB2B emerging as a disruptive opportunity to serve brand and
retailer needs. Driven by strong problem solving on the most pressing retailer issues, retailers keen to shift more
wallet share to eB2B
Massive eB2B growth potential- $5 Bn eB2B market in 2021 could potentially grow to $90-100 Bn by CY30
on the back of penetration led growth (1% of B2B retail in 2021 to ~8% in 2030P) enabled by robust retailer and
brand adoption
Credit, supply chain and Feet on Street to be winning levers- eB2B players are solving for retailers' supply chain
challenges via highly streamlined operations . While high impact and efficient FoS operations are being achieved
through Hybrid demand generation (FoS-led + self-serve) model
Multi-category national players well placed to win - Market has multiple players , with some focusing on limited
categories and regions while others are multi-category nationals. Multi-category nationals have access to larger
TAM and reach
Unit economics on path to profitability- eB2B platforms are projected to reach healthy EBITDA level in the
steady state, especially the ones with multi-category play. Multi-category player’s better profitability potential
will be driven by multiple favorable factors

3. In India, Unorganized GT channel drives the bulk of retail and
will continue to drive it in the next 10 years (unlike the global
markets)
In India, Unorganized GT channel drives the bulk of retail and
will continue to drive it in the next 10 years (unlike the global
markets)
Sources(s): Expert Inputs, Redseer Research, Redseer IP
Note(s): 1. Organised B&M – Organised Brick and Mortar includes all retailers with more than one retail store
© Redseer 03
Retail Market Split by Channel
USD Bn, % of Retail Market, 2021,2030P
Global Benchmarks – Share of General Trade
USD Bn, % of Retail Market, 2021,
84% (728)
10% (83)
6% (54)
General Trade
Organised B&M
Online
70% (1,407)
13% (259)
17% (334)
4%
$679 Bn
13%
$176 Bn
22%
$279 Bn
CAGR
Absolute growth
2021 2030P
Country
USA
China
UK
Indonesia
India
Share of General Trade
(%, 2021)
10-15%
35-40%
20-25%
70-75%
84%
Barriers to organized B&M1 adoption in India:
Deep, fragmented country with 8k+ towns and 665k villages
High operations (rentals for stores and warehouses) and, marketing costs
Complex regional diversity leading to demand for localized experience
FDI regulations in multi brand retail and restrictions for foreign retailers

4. A large pool of ~13 Mn retailers drives this GT opportunity,
majority of which are small-scale (class C and D) and
concentrated in the tier 2+ markets
A large pool of ~13 Mn retailers drives this GT opportunity,
majority of which are small-scale (class C and D) and
concentrated in the tier 2+ markets
Source(s) : Redseer Research, Redseer Analysis, Redseer IP
© Redseer 04
Distribution of GT Retailers by Tier and Class
2021
Traditional Big
Retailers
(CLASS A)
~1%
Enterprising
stores
(CLASS B)
~24%
Aspirational
stores
(CLASS C)
~36%
Old-school
Conservative
stores
(CLASS D)~39%
33%
30%
34%
30%
33%
35%
40%
37%
22%
Class A: A store owned by traditional businessmen and
having a size of >200 sq. feet. This store has an average
daily revenue of INR 25000+.
Class B: A store owned by first-generation movers to big
cities and having a size of 100-200 sq. feet. This store has
an average daily revenue of INR 15000-25000.
Class C: A store owned by first-generation movers to big
cities and having a size of 100-200 sq. feet. This store has
an average daily revenue of INR 6000-15000.
Class D: A store owned by a small family and having a size
of 50-100 sq. feet. This store has an average daily revenue
of INR 6000.
Metro Tier 1 Tier 2+
Total retailers: ~13 Mn
3%
8% 10% 82%
2% 1%

5. Key advantage of GT- Easy accessibility in the remotest of the
areas in the country
Key advantage of GT- Easy accessibility in the remotest of the
areas in the country
Source(s) : Redseer Research, Redseer Analysis, Redseer IP
Note(s): 1. ‘udhaar’ is informal credit extended by retailers to end-consumers
© Redseer 05
Accessibility – Retailers per sq. km x Store Density (per ‘000 people)
2021
Size of the bubble indicates share of General Trade
0
0.0 0.5
USA
Brazil
Vietnam
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Retailer/sq Km
Store
Density
(per
’000
people)
10-25%
UK
60-75%
India
>75%
Indonesia

6. GT channel also stronger ability to serve the Tier 2+ markets
which are indexed more towards the grocery category
GT channel also stronger ability to serve the Tier 2+ markets
which are indexed more towards the grocery category
Source(s): A. RedSeer IP, RedSeer Analysis
© Redseer 06
India Retail and Grocery Market
2021, USD Bn
India Grocery Market – Channel x City Tier
2021, USD Bn
Overall Retail
865
65%
35%
Others
Grocery
Grocery, which covers the bulk of India’s retail, is more
unorganized than the rest of retail and dominated by Kiranas
Metro
9%
Tier 1
9%
Tier 2+
82%
80%
15%
5%
52 51 459
14%
3%
85%
96%
1% 1%
General Trade
(94%)
Organised B&M
(5%)
Online
(1%)

7. Key advantage of GT- Easy accessibility in the remotest of the
areas in the country
Key advantage of GT- Easy accessibility in the remotest of the
areas in the country
Source(s): Redseer Analysis, Secondary Research
Note(s): 1 USD = INR 75 2. Reliance Cash and Carry is not operational now and it has been converted into fulfilment centres for their eB2B business
© Redseer 07
Indian GT B2B Retail Market Growth
USD Bn, 2021, 2025P, 2030P
eB2B
Cash & Carry
Distributor-led
Unorganised
(Branded &
Unbranded)
2021 2025P 2030P
85%
82%
76%
16%
~8%
15%
14%
<1%
$619 Bn
$1,195 Bn
$866 Bn
2.5-3.5%
Cash & Carry has been unable to
grow/succeed given it does not solve
for the poor access and convenience in
the GT procurement value chain
8%
11%
1%
50-57%
9%
5%
8%
3%
25-30%
7%
Examples
eB2B
Cash & Carry2
Brand/ Distributor Led
<1%
<1%
CAGR

8. eB2B market to grow to $90-100 bn GMV by CY30, riding on the back
of massive penetration- led growth headroom for India vs peers
eB2B market to grow to $90-100 bn GMV by CY30, riding on the back
of massive penetration- led growth headroom for India vs peers
Source(s): Redseer Analysis, Secondary Research
Note(s): 1 USD = INR 75 2. Reliance Cash and Carry is not operational now and it has been converted into fulfilment centres for their eB2B business
© Redseer 08
eB2B Penetration
% of overall B2B retail, 2021
India eB2B Market (GMV)
CY 21- 30P, USD Bn
China
UK
United States
Brazil
India
Indonesia
Vietnam
10-15%
7-10%
4-7%
1-5%
<1%
0.6%
0.2%
2021
5
25-30
90-100
<1%
2025P 2030P
Penetration of
eB2B in GT B2B
market
2.5-3.5% 7.5-8%
50-57%
25-30%
CAGR
Massive growth
headroom for India

9. Given low eB2B adoption in lower city tiers and small stores
Given low eB2B adoption in lower city tiers and small stores
Source: RedSeer Analysis
© Redseer 09
India eB2B –
Unorganized Market Retailer Penetration by City and Type
2021
B2B Retail GMV distribution by retailer type and city tier
Metro Tier 1 Tier 2+
Small
Type D/E
Medium
Type B/C
Large
Type A
Mom & Pop Stores
Monthly turnover:
Up to INR 25000
Traditional Large
Stores
Monthly turnover:
More than INR 25000
Key:
% retailers penetrated (eB2B)
0% 40%
Phases of eB2B Journey
eB2B Adoption happens in phases;
The longtail of retailers are often the
last but often the stickiest (as seen in
other mature market e.g., China)
Phase 1 – Adoption in:
Big cities Large/mid-size retailers
Early adopters, digital savvy
Phase 2 – Adoption in:
Small retailers in Big cities
Expansion to tier 1 and smaller cities
Phase 3 – Adoption in:
Smaller cities
Small retailers

10. eB2B players are also capturing value by solving the key
challenges of brands/manufacturers
eB2B players are also capturing value by solving the key
challenges of brands/manufacturers
Sources(s): Expert Inputs, Redseer Research, Redseer IP
© Redseer 10
Key Challenges Across Brands/Manufacturers
Descriptive
Key Challenges Established Brands Emerging Brands
Lowest Degree of Pain Point Highest
Unbranded Manufacturers
Low Penetration of
Long tail products
Price Discrepancy
Limited Marketing
effectiveness
Low Fill Rates
Limited Reach
Lack of Secondary
sales data insights
Demand Prediction
High Cycle Time
Limited Retailer Adoption
Top challenges

11. Multiple eB2B players have come up to serve this growing
demand; largest players are the multi-category nationals
Multiple eB2B players have come up to serve this growing
demand; largest players are the multi-category nationals
Sources(s): RedSeer Approach
Note(s): 1. JioMart includes ‘Netmeds Wholesale’ 2. Retailer focus –>50% of revenues coming from retailers 3. Wholesaler focus ->50% of revenue coming from wholesalers
© Redseer 11
* Other players includes players like Jiomart, Ajio Business, Elastic Run, Dealshare etc
Market Models in eB2B
Descriptive. Bubbles represent key players in the ecosystem
Presence across the country,
including Tier2+ cities, small
towns and rural areas
Operates in limited regions/
geographies (generally
restricted to Metros and Top
Tier 1 cities)
National
Vertical Multi-category
Focusing on limited/specialized
retail categories
(covers < 3 product categories)
Presence across multiple retail
categories
(covers > 3 product categories)
3.Vertical National
2.Multi-category Vertical
1.Multi-category National
Retailer Focus2
Wholesaler Focus3
4.Vertical Regional
Othre Players
Regional

12. Udaan is the clear leader in the retail eB2B space
Udaan is the clear leader in the retail eB2B space
Source(s): Redseer Analysis
* Other players includes players like Jiomart, Ajio Business, Elastic Run, Dealshare etc
© Redseer 12
eB2B retail players1 – GMV Market Share
USD Bn, 2021
Other
eB2B
Players
Udaan
Overall eB2B
Retailer-led
eB2B
Wholesaler
eB2B
46%
62%
19%

13. Udaan and JioMart are the most well-known and preferred
platforms among the retailers for future eB2B purchases
Udaan and JioMart are the most well-known and preferred
platforms among the retailers for future eB2B purchases
Source(s): Retailer Survey, RedSeer Analysis
* Other players includes players like Ajio Business, Elastic Run, Dealshare amongst others
© Redseer 13
Which of the following platforms are you aware of ?
TOMA + Unaided Recall
% of respondents, Non-Users of the respective platform
35%
33%
53%
41%
Udaan
Jio Mart
Other
players
Udaan
Jio Mart
Other
players
Which of the following Online B2B Aplatforms are you
likely to increase spend on?
% of respondents, N caries by cut

14. GT retailers say that eB2B platforms have the ability to
effectively resolve the pressing pain-points faced by them
GT retailers say that eB2B platforms have the ability to
effectively resolve the pressing pain-points faced by them
Source(s): Retailer Surveys, Interviews (N = 1223), Redseer Analysis
© Redseer 14
What are the challenges you face when purchasing from the offline channels and eB2B channels?
% of respondents, N=1223 Offline channels
eB2B channels
Higher
price
0%
5%
20%
40%
60%
35%
23%
37%
23%
16%
36%
29%
20%
20%
8%
22%
Price
transparency
No credit/
pay later
option
Low quality
of products
Less varitety
of products/
brands
Untimely
delivery
Frequent
products
stockout
Difficulty in
placing an
order
Dealing with
Multiple
distributors/
wholesalers
Unavailability
of on-the-field
support agents
Non-consistent
productQuality
Amongst eB2B players Udaan
emerged as players who solved the
retailer feedback most effectively
(compared to key peers) per the
survey

15. Thus GT retailers are bullish about increasing their eB2B spend in
the near future (at the expense of other channels available to them)
Thus GT retailers are bullish about increasing their eB2B spend in
the near future (at the expense of other channels available to them)
Source(s): Retailer Survey, RedSeer Analysis
© Redseer 15
How has the spend on following purchase channels
evolved over the past year?
%, N= 1223
In 2022, how do you expect the spend on eB2B platforms
to evolve from current levels?
%, N= 1223
Unorganized
Wholesaler
Brand/Distributor
Led
Cash & Carry eB2B eB2B
3% 4%
16%
19% 20%
30%
33%
16%
3%
13%
Increase Significantly (50%+) Increase Slightly (10-50%+) Stay at same level (+/-10%) Decrease Slightly (10-50%+) Decrease Significantly (50%+)

16. Credit, efficient & high quality supply of products and FoS
assistance are crucial to eB2B’s solution to effectively serve the
retailers and win the market
Credit, efficient & high quality supply of products and FoS
assistance are crucial to eB2B’s solution to effectively serve the
retailers and win the market
Sources(s): Retailer Surveys, Retailer IDIs, Redseer Analysis
© Redseer 16
What are the challenges you face when purchasing from the offline channels?
% of respondents, N caries by cut
Why did you not register on any of the
online B2B platforms?
% of non-eB2B users, N caries by cut
Credit Access Supply Chain &Quality Issues Sales agents never approached for registration
Overall
(N=1223)
Overall
(N=216)
Metro
(N=68)
Tier 1&2
(N=75)
Tier 3+
(N=73)
Quality Issues
Delayed Delivery
and Lack of access
Frequent product
stockouts
50% 46% 51%
57%
44%
52%
42%
41%
34%
50%
54%
Class A
(N=114)
Class B+C
(N=804)
Class D
(N=305)
Class A &B retailers
have availability of
credit, but feel that
their credit limits can
be increased
“Taking credit from online B2B platforms
is very convenient and systematic. I can
clear my due credit with the touch of a
button on the app”
-Class B Fashion Retailer
“I can’t track my order or communicate
with agents of local suppliers easily. Local
distributor doesn’t inform me about
unavailability of stock on time which
impedes my sales”
-Grocery Retailer
“I do not have any knowledge of any B2B
Platform because no FOS approached
me for onboarding onto their platform
and I continued procuring items from
local channels”
-Tier 3+ Retailer

17. FMCG , Electronics,
Fashion, GM
Staples/ Fresh
Lifestyle/
General
Merchandise
eB2B players are solving for retailers' supply chain challenges via
highly streamlined operations
eB2B players are solving for retailers' supply chain challenges via
highly streamlined operations
Source(s): Redseer Research, Redseer Analysis
© Redseer 17
D1 D2
D3
W1 W2
W3
W5
W6 W7
W1
W2
W3
W4
W6
W5
A1
A2
B1
B2 B3
B7 B8
B4
B5 B6
M1 M2
M3
B1
B2 B3
B7 B8
B4
B5 B6
T2
T3 T7
T3
T1
T4 T5 T6
W1
W2
W3
W5
W6 W4
eB2B Bridging Supply Chain Inefficiencies
Brands
Farmers
Weavers/ Manufacturers Traders/Agent Wholesalers Traditional Retailers
Brokers/ Agents Millers Brokers/ Agents APMCs/ Mandis Wholesalers Traditional Retailers
Distributors/Stockists Wholesalers Traditional Retailer
eB2B
Branded Traditional Retail Value Chain
Unbranded Traditional Retail Value Chain
eB2B
eB2B
Supply Chain Inefficiencies
Slower and expensive procurement
Low visibility, demand predictability
and marketing inefficiencies
Lack of access to credit
Limited reach and access
Backward
Integration
Unstandardized quality & price
Multiple intermediaries leading to
high cycle times
Lack of reach and access due to
poor logistics facilitation
High Wastage/Leakage
Slow, wholesaler dependent
procurement
Lack of credit limiting retailer
potential
Price discrepancies and issues with
vendor reliability & quality
Warehousing Fulfilment

18. While high impact and efficient FoS operations for retailers are
being achieved through Hybrid demand generation (FoS-led +
self-serve) model
While high impact and efficient FoS operations for retailers are
being achieved through Hybrid demand generation (FoS-led +
self-serve) model
Sources(s): Expert Inputs, Redseer Research, Redseer IP
© Redseer 18
Case Study- How role of FOS evolves over time (Udaan example)
Descriptive
Identifying target retailer base,
creating awareness about merits
of using a B2B platform &build
interest.
Onboarding
Help with documentation, KYC-
registration, other operational
formalities and first order
placement
Handholding Prompt resolution of queries/
issues faced by initial users to instil
confidence that enables them to
use the platform independently
Issue Resolution
Developing lasting business
relationships through regular
visits, information dissemination
&trust-building
Relationship Management
Retailer’s
engagement
with
the
eB2B
platform
Time
Operational responsibilities Managerial responsibilities

19. For brands, eB2B players are helping them by providing standard
distribution solutions with a wide retailer reach + other key
value-added services
For brands, eB2B players are helping them by providing standard
distribution solutions with a wide retailer reach + other key
value-added services
Source(s): RedSeer Analysis, Brand Expert Interviews
Note (s): (A) Secondary Sales: Distributor / Wholesaler to retailer sales; (B) Non Key Value Items
© Redseer 19
Challenges faced by Brands & Unbranded Manufacturers and their solutions by eB2B players
Descriptive
Low Penetration of Long tail products
Awareness generation + demand shaping through
merchandising on app and on-ground market
executive
Specific product portfolios can be designed
for the channel
Targeted incentives and schemes to push
NKVIB salience
Price Conflicts / Discrepancies
Eliminates intermediaries (stockists, sub-stockists,
wholesalers etc.) preventing price discrepancies
Price visibility and transparency
Price standardization
Limited Marketing effectiveness/
opportunities
In-app marketing and wider retailer reach
Range selling through FoS
Low fill rates
Allows more frequent app-based/FOS
assisted ordering
Reduces stockouts for KVIs
Doorstep and next day delivery facility ensuring
high inventory turnovers
Superior warehousing solutions
Limited/Restricted Reach
Increasing reach and visibility in regional market
with small quantities
New city expansion is convenient in eB2B
Dedicated FoS team across regions
Lack of Secondary(A) sales data Insights
Access to data analytics, secondary and
tertiary data
Availability of data at pin code/ SKU/ retailer level
New product launch testing through platform
Demand Prediction
Availability of data at pin code/SKU/retailer level
Warehousing and Logistics solutions to
prevent stockouts
High Cycle Time
Direct sourcing from brands/ manufacturers
Direct reach to retailers
Logistics solutions for efficient procurement
Limited Retailer Adoption
Joint business planning including packaging,
promotion and communication strategy to drive
better visibility and demand uptick
Credit financing for smaller retailers
increasing retention

20. Especially for emerging brands, eB2B provides a solution to quickly
expand their currently low Tier 2+ share of business; such brands
will drive surge in marketing $ spent on eB2B in future
Especially for emerging brands, eB2B provides a solution to quickly
expand their currently low Tier 2+ share of business; such brands
will drive surge in marketing $ spent on eB2B in future
Source(s): RedSeer Analysis, Brand Expert Interviews
© Redseer 20
India Overall Retail and Emerging Brands - City Tier % of Business
2021, % of Business
Marketing Spends by Brands – Traditional vs eB2B channels
Pre-eB2B vs 2021 vs 2030P, % of marketing spend
towards distribution/retailers
Overall India Retail
75%
30-40%
20-30%
35-45%
12%
13%
Emerging Brands
Metro
Tier 1
Tier 2+
Headroom to
meaningfully improve
Pre-eB2B 2021 2030P
Traditional
Channels
Selected Examples
eB2B
100%
75-90%
70-80%
20-30%
5-15%

21. Basis the strong value creation for retailers as well as brands, eB2B
players could drive a paradigm shift in India’s retail landscape by
2030- creating a large and sustainable business for themselves in
this process
Basis the strong value creation for retailers as well as brands, eB2B
players could drive a paradigm shift in India’s retail landscape by
2030- creating a large and sustainable business for themselves in
this process
Source(s): RedSeer Analysis, Brand Expert Interviews
© Redseer 21
eB2B Enabled Retail of the Future – Summary
Descriptive
Shift from unorganized
-> organized trade
De-facto channel for
brand marketing &
ad spend
Unparalleled trove of
retailer insights &
data intel
High RoI, cash-efficient
and profitable eB2B
businesses at massive scale
Rails for emerging
brands to scale in India
All these factors enable eB2B
players to be profitable at scale

22. eB2B platforms are projected to reach healthy EBITDA level in the
steady state, especially the ones with multi-category play…
eB2B platforms are projected to reach healthy EBITDA level in the
steady state, especially the ones with multi-category play…
Sources(s): Expert Inputs, Redseer Research, Redseer IP
© Redseer 22
Unit Economics – eB2B Grocery only, eB2B Discretionary only and eB2B Multi-category at Scale
Current-2021, At Scale- 2030P
Parameters eB2B Grocery Vertical eB2B Discretionary Vertical eB2B Multi-category
(Grocery (2/3rd) + Discretionary (1/3rd))
Gross Margins (Current) 3-5%
6-8%
1-3%
3-4%
2-3%
1-3%
3-5%
7-9%
12-15%
5-7%
4-5%
3-4%
2-3%
5-7%
4-7%
10-11%
2-3%
3-4%
5-6%
2-3%
6-8%
Gross Margins (At-scale, 2030P)
Supply Chain Costs
Other Overheads (incl. Sales,
credit and corporate overheads)
EBITDA Margins before VAS Revenue
EBITDA Margins post VAS Revenue
Value added Services Revenue
(incl. revenues from Marketing,
Data Insights and Merch Income)
Getting the category mix is critical to boost margin profiles for eB2B players
Only achievable through
Multi-category play with
2/3rd grocery

23. …in-line with the organized retail benchmarks
…in-line with the organized retail benchmarks
Source(s): Primary Research, Player Annual Reports, RedSeer Analysis
Note: 1. Other Income has not been considered in EBITDA calculations 2. Cell colouring in the table has been done in each row 3. Rental costs have been included in Other costs
© Redseer 23
Profitability across Players
FY 22- Dmart, FY 21 – Reliance Retail, Metro Cash & Carry, eB2B Multi-category (Current) – 2021, eB2B Multi-category (at Scale)- 2030P
Particulars
eB2B Multi-category
(Current, 2021)
eB2B Multi-category
(At Scale, 2030P)
Dmart
(Modern Trade)
Reliance Retail
(Modern Trade)
Metro Cash &Carry
Gross Margin
(% of Revenue
from Ops)
4-6% 10-11%
1-2% 2-3%
2-3%
3-4%
3-4%
6-8%
14.5%
0.3%
2.5%
4.2%
8.1%
11.1%
~1%
2.6%
4.7%
4.9%
10.4%
0.5%
9.3%
1.6%
8-10%
(4-6%)
VAS Revenue
(% of Revenue
from Ops)
Supply chain Costs
(% of Revenue
from Ops)
Other Costs
(% of Revenue
from Ops)
EBITDA Margin
(% of Revenue
from Operations)
Indicative Scale
Favourable Unfavourable
Higher because
of G&A expenses
and people
investments for
the future, which
will reduce at
scale.

24. Multi-category player’s better profitability potential will be driven
by multiple favourable factors
Multi-category player’s better profitability potential will be driven
by multiple favourable factors
Sources(s): Expert Inputs, Redseer Research, Redseer IP
© Redseer 24
Unit Economics – eB2B Grocery only, eB2B Discretionary only and eB2B Multi-category at Scale
Current-2021, At Scale- 2030P
Indicative Scale
Favourable Unfavourable
Parameters
eB2B Grocery
Vertical
eB2B
Discretionary
Vertical
Why will multi-category eB2B players win?
eB2B Multi-category
(Grocery (2/3rd) +
Discretionary (1/3rd))
Gross Margins (Current)
Gross Margins (At-scale, 2030P)
Supply Chain Costs
Other Overheads
(incl. Sales, credit and
corporate overheads)
EBITDA Margins before
VAS Revenue
EBITDA Margins post VAS Revenue
Value added Services Revenue
(incl. revenues from Marketing, Data
Insights and Merch Income)
Overall gross margins will improve because of :
Direct sourcing and direct inbounds
Improvement in mix, Private Label Play
Exclusive Brand Partnerships
Better Negotiating LeverageOverall, multicategory
players will be a blend of grocery and discretionary
and hence at a decent level
A multi-category play is poised to win as grocery
will help drive tonnage, demand predictability
and hence help optimise supply chain costs
Higher sales and distributor push is required for
discretionary category because of variability in d
emand , which is optimised by a more predictable
category like grocery
Grocery optimises costs and discretionary
boosts margin profiles
A multicategory play leads to wider reach and
adoption by retailers and hence, such eB2B platforms
have more granular data insights and are therefore in
a better position to monetize the same.
Getting the category mix is critical to boost margin profiles for eB2B players

25. Driven by the above factors, eB2B is likely to operate with high cash
efficiency in the steady state
Driven by the above factors, eB2B is likely to operate with high cash
efficiency in the steady state
eB2B Platform – Working Capital
Process and Key Factors
Descriptive
Brand/
Manufacturer
3P/Marketplace
Model
Retailers
1P/Inventory
Model
No Inventory
No Payables (float basis)
Receivable days (Payables
for the Retailers) – Days for
which credit is extended
to the retailers
Inventory Days –Number of
days which a company takes
to turn its inventory
Payable Days (Receivables for
the brands)– Number of
Days in which payment is made
to the brands for an order
Source(s): RedSeer Research & Analysis
Note(s):
© Redseer 25
eB2B Platform
Payable Days are likely to offset inventory
days for eB2B players, given the strong
tech-enabled demand predictability,
warehousing and cataloging.
No receivables for players e.g., udaan
that leverage their financial arm to
provide to fund the credit for retailers.
Procurement Flow
Cash Flow
Credit Flow

26. Certain specific players are well positioned to do well
Certain specific players are well positioned to do well
Lever of leadership on eb2b- case example Udaan
Provision of Credit: Driving higher collection and better underwriting efficiency, with the help of a captive credit arm
Captive supply chain solution: inclusive of backward sourcing, warehousing and fulfillment - enabling improved fill rates,
faster deliveries, lower supply chain costs
Hybrid demand generation: Feet-on-street (FoS) to assist with initial demand generation, followed by self-serve. FoS role
gradually evolves into that of a relationship manager, to ensure better engagement
Higher quality product - inclusive of features such as vernacular, new launches and deals, easy navigation
and easy credit provision
Source(s): RedSeer Research & Analysis
© Redseer 26