Amazon India: Adding to Cart… Its Own Independence 🛒
SaaS over SKU, Price Control, Return Woes, Life Event Targeting
Hi Surgies 👋
Yeah, we’re late this week (Holi went on for a bit too long).
Hope everyone’s continuing those newly signed gym subscriptions which kick-started your New Year Resolutions. India’s not just taking protein to the gym now but realising that we’ve been protein deficient for way too long. What began as a niche market has exploded into a movement reshaping how an entire nation thinks about nourishment. With an evolving market for protein supplements, snacks, and functional foods, brands are capitalizing on this shift, making protein a mainstream consumer trend.
🗞️ Marketplace Buzz
Amazon India is reportedly considering a spin-off, signalling a potential shift in how the global e-commerce giant operates in India. By carving out its India unit into a separate entity, Amazon could navigate FDI regulations more smoothly, attract local investors, and strengthen its long-term India game.
With Flipkart already functioning as a separate unit under Walmart, Amazon seems to be taking a page from the playbook. Whether this move is a prelude to an IPO or just a strategic restructuring, one thing’s clear- Amazon India is gearing up for some serious independence.
Remember when waiting two days for groceries felt fast? Yeah, neither do we. Quick commerce now dominates the e-grocery space, making up a whopping 70-75% of India’s online grocery orders—up from just 35% in 2022. The message is clear: consumers want their atta, Maggi, and ice cream now, and traditional e-grocery models are struggling to keep pace. If speed is the new loyalty, slow movers might be left stocking expired inventory.
Looks like Flipkart just took “price control” a little too literally. Reports say sellers can no longer set their own listing prices and can only decide the ‘bank settlement value’—the amount they actually receive. Flipkart now calls the shots on the final price, triggering seller backlash and FDI violation concerns. With price parity across platforms in chaos, regulators might soon have something to say.
Zepto Eyes More Desi DNA. Zepto is planning an Indian AIF founder buyback to increase local ownership, aligning itself better with FDI norms and giving its founders a bigger stake. With global funding winters and local regulations heating up, Zepto’s move isn’t just about compliance—it’s about securing long-term control. Because in the quick commerce race, owning more of the pie might just be as important as delivering it in 10 minutes. 🥧🚀
🍕 D2C Snippets
Handpickd, the curated grocery delivery startup co-founded by Milkbasket’s Anant Goel, has hit EBITDA profitability in Gurugram and is now expanding to Bengaluru. While most quick commerce players are burning cash like Diwali crackers, Handpickd is proving that sustainable unit economics can exist. The secret sauce? High-margin, curated inventory instead of the deliver-everything-under-the-sun approach. Looks like slow and steady can win the grocery race. 🛍️🏆
Giva just secured a shiny ₹102 Cr to take its offline retail game to the next level. The silver jewellery brand, already a hit in the D2C space, is now doubling down on an omnichannel expansion because why limit the sparkle to just screens? ✨
Kochi-based FemiSafe bagged ₹3 Cr in seed funding, proving that women’s wellness is finally getting the spotlight (and the capital) it deserves. Known for its feminine hygiene and intimate care products, FemiSafe plans to expand operations, launch new products, and strengthen its market presence.
While many Amazon aggregators are struggling with profitability, software aggregators are thriving. Investors are now betting big on SaaS over SKU- favouring tech-driven platforms over brands battling shrinking margins. Looks like the aggregator gold rush isn’t dead, it just moved to a different mine.
📚 Reads and Recommendations
PepsiCo just popped a $1.6B deal to acquire Poppi- because even soda wants a gut-friendly glow-up
Significant life events, like completing a degree, moving into a new home, or starting a family, can lead individuals to reprioritize what’s important to them.
Advertisers are now able to add WhatsApp numbers to their Performance Max campaigns.
Returns - It’s not just an India problem. The annual cost of US returns spiked to more than the previous two years combined. By the end of 2024, it came close to $900B.
AI is evolving fast, and startups need to adapt even faster. Great insights on how AI will shape the future of innovation, urging founders to stay ahead of the curve. 🚀🤖
🔥That’s all for this week! As always, share this with your fellow D2C hustlers, and let’s keep the community growing.
Folks at some companies have told us this newsletter is almost mandatory weekly reading for their teams 🥰. If your company is not in on it yet, get your teams on the latest in the e-commerce space every week.
PS: It wasn’t Holi, it was something else.