Launching an eCommerce startup venture definitely sounds exciting, however, it comes with its own fair share of challenges. Competition from established market giants, gaining customer trust, digital marketing tactics, and managing returns and refunds are some of the issues ever persistent for any eCommerce platform. The technological advances and ever-evolving dynamic nature of the eCommerce sector further add more complexity for startups. Businesses must acclimatize their strategies to incorporate innovation in logistics and reliable payments to win customer trust.
The latest emerging player in the eCommerce sector that is set to redefine the hyperlocal market is Streetz Hyperlocal Private Limited. The genesis of Streetz was the passion and determination to empower Local Shops to fight big e-commerce giants via a Hyperlocal Marketplace model. Introducing Monish Shah – a seasoned professional and entrepreneur, spearheading Streetz Hyperlocal Private Limited. Shah is the visionary behind this innovative eCommerce platform, aiming to connect consumers with local businesses.
High time for the emergence of the hyperlocal marketplace
Shah had a vision to create a marketplace approach wherein his startup would function as a platform that facilitates connections between buyers and sellers. This model is especially designed to operate in local markets which many of the eCommerce giants have failed to accommodate; as the platform provides customers with an extensive array of products and a richer shopping experience characterized by diversity.
Streetz’s founder, Monish has an incredible experience within the startup realm. Shah’s educational qualifications boast of possessing dual MBA degrees from esteemed institutions — MDI, Gurgaon (India), and ISB, Hyderabad (India). His professional stints are filled with impressive lists of global industry conglomerates. He started his professional journey with IBM and The Boeing Company in the USA. However, his enduring passion for entrepreneurship made him embark on a new path and his entrepreneurial voyage commenced with a triumphant foray into the food FMCG sector. Shah single-handedly managed to expand this venture and successfully sold it to Rasna International.
Subsequently, he accumulated invaluable expertise by engaging with startups at diverse growth phases: commencing with early-stage involvement at Shuttl, advancing to mid-stage contributions with Swiggy and Livspace, and culminating with late-stage involvement at Flipkart. What propels Mr. Shah's determination is his fervent zeal for founding and scaling revolutionary startups, while making a positive impact in society. Shah is determined to lessen the carbon footprint and has implemented strategies in Streetz to become an environment-friendly startup.
Conceptualization of Streetz
Indian consumers are shifting their focus to online shopping while shunning brick-and-mortar outlets due to the convenience and security it offers. Further, he witnessed his uncle’s local garment shop and flower shop in the neighborhood struggling to rise with the boom of eCommerce. Shah saw this opportunity to develop a new business concept where eCommerce should prioritize the local shopping experience. As the Indian government is raising its bar with digital infrastructure, the potential growth for startups has skyrocketed. In year 2023 offline retail market was over $500B across categories which the local shops cater to.
Streetz is dedicated to delivering distinctive and tailored experiences by harnessing the power of data and technology to craft individualized shopping journeys for every customer. Streetz is developed as a mobile app-based platform which is the medium to connect local sellers/shops with target consumers online. The methodology of Streetz is simple – they work in a bi-directional way:
• Offer online marketplace to local businesses
• Optimize the delivery process for e-commerce products and gifts, guaranteeing both swiftness and predictability in serving customers.
As of now, Streetz concentrates its efforts on catering to 10+ categories, providing customers with the convenience of ultra-fast 1–2-hour deliveries. The core advantage of Streetz is that it sources products from local stores consisting of apparel, footwear, kids clothing, toys, beauty products, kitchenware, flowers, sweets, grocery and bakery products as they offer guaranteed 2-hour delivery. Its unique features like gift wrapping and 12 am gift deliveries truly set apart this hyperlocal startup model.
Promising Debut of Streetz Hyperlocal in Ahmedabad
From the initial launch in Ahmedabad to 50 days, Streetz has successfully enlisted the active participation of 90+ stores, collectively offering an extensive inventory of 10,000+ distinct products. During this period, Streetz has efficiently managed and fulfilled more than 3,500 customer orders, with an impressive average order value surpassing Rs. 425. The summary of Performance Scorecard of past 50 days:
| Launch To Date (50 days) | Numbers |
| Total Signups | 6,107 |
| Order Delivered | 3,812 |
| Unique Customers | 2,996 |
| Repeat Customers | 484 |
| Repeat Rate | 16% |
| AOV | Rs. 425 |
| Marketing Spends | Rs. 24.8L |
| CAC | Rs. 827 |
Average Daily Order volume stands at 69 orders/day
Here is the Category-wise split of Delivered Orders:
As Streetz witnessed such a promising start, it has already onboarded a total of 4,200 new customers to its platform and remarkably, the highest recorded order value reached a substantial Rs. 3,568. Streetz achieved these remarkable milestones with minimal digital promotional efforts, primarily leveraging platforms such as WhatsApp and various social media channels which has kept the CAC below Rs 1,000. Streetz garnered considerable attention, notably during the festive celebration of Janmashtami, which resulted in an impressive tally of 391 orders.
As of now, Streetz is directing its strategic focus toward community and corporate engagement initiatives. These endeavors aim to provide customers with substantial knowledge about their offerings and foster enhanced engagement with the platform.
Funding and Future Expansion Plans
With the upsurge of word-of-mouth and social media marketing, Streetz has also attracted attention from influential investors. In August, the founder succeeded in the first round of the pre-seeding funding by raising Rs. 1 Crore at a valuation of $2 million (Pre-revenue). Veteran investors Sagar Shah (Vice President, American Express) and Hitesh Jobalia (Managing Director, Shree Parshvanath group) have come onboard with the founding team. What compelled the investors was the remarkable AOV (Average Oder Value) and zero-inventory approach, which not only boosts profitability but also propels growth.
Currently, Streetz Hyperlocal is looking to raise $1.1M at undisclosed valuation for their Seed Funding round.
Streetz management is planning to utilize the allocated funds to build a skilled team, fine-tune the product-market alignment, and improve the Minimum Viable Product (MVP) of the Streetz App. In the near future, Streetz is looking forward to expanding its categories to accommodate electronic goods, premium sweets, imported groceries, fruits, vegetables and dairy. Shah is also aiming to extend Streetz operations into the Delhi-NCR region – a premium hub for D2C brand, giving them Hyperlocal presence along with focus on local brands. Streetz is also resolute in its mission to create a significant influence in the Indian gifting market, a $30B industry sector that faces constraints such as inconsistent delivery schedules and restricted product selections in the realm of eCommerce.
The rise of Streetz Hyperlocal and the journey of its founder Monish Shah aspires other budding entrepreneurs to take risks and challenge the uncommon notion. Streetz Hyperlocal is more than just a business endeavour; it represents a vision to connect local businesses with online shoppers, bridging the gap between them.
For additional information about Streetz Hyperlocal, explore their website www.streetz.shop
Connect with Monish on LinkedIn- https://www.linkedin.com/in/shahmonish/
