By Pranav Sanghvi | 16 February 2024
In a world where technology is flipping the script on traditional business practices, it's the innovations that tackle real challenges head-on that catch our eye. Enter Rupyz, a platform that’s setting out to simplify B2B commerce not just for one, but multiple industries: FMCG, toys, fashion, and construction, among many others. It's like handing businesses in these sectors a Swiss Army knife in an era where going digital is no longer optional but essential.
It is for that, and many other considered decisions, that Rupyz is our first investment as Merak Ventures. This decision goes beyond the promise of high returns, putting our weight behind a platform that is solving real world problems for businesses. In the vast expanse of tech startups, Rupyz stands out because rather than focus on merely riding the digital wave, it is making the wave more accessible to businesses everywhere.
The trio leading the charge at Rupyz - Dhaval Radia, Gourav Gupta, and Akshay Gupta - bring to the table a rare mix of finance acumen, consumer insight, and logistical wizardry. Dhaval is the financial backbone, mitigating risks and managing credits like a pro. Gourav dives deep into the consumer psyche, predicting needs before they become apparent. Akshay ensures that products find their way right from manufacturing units & warehouses to storefronts without a hiccup. Together, they're a force, ready to smooth out the kinks in India's growing B2B commerce.
Numbers Speak Volume
Besides bringing a digital revolution in a largely traditional forefront, the market potential for Rupyz is staggering, underscoring the pressing need for digital solutions across SME consumer businesses across India.
With a vast Serviceable Addressable Market (SAM) estimated at ~$450-650 million, Rupyz is strategically positioned to capitalise on the rapidly growing segment of businesses with turnovers ranging from INR 50-250 Cr, which comprises of Rupyz's Ideal Customer Profile (ICP). The platform caters directly to a diverse array of sectors including FMCG, Toys, Fashion & Construction, among others. Let's consider one of these industries - Toys. The remarkable growth in the Indian toy industry, evidenced by a 67% decline in imports & a staggering 240 per cent rise in exports from FY14-15 to FY22-23 highlights the immense potential for Rupyz within this sector. As toy manufacturers and suppliers seek to capitalise on this growth trajectory, Rupyz's solution offers a comprehensive solution to streamline distribution channels, optimise inventory management & enhance operational efficiency. By leveraging Rupyz's digital infrastructure, toy businesses can effectively navigate the evolving market dynamics, capitalise on export opportunities & drive sustainable growth in the competitive landscape.
The sheer magnitude of the FMCG market in India, estimated to reach $615 billion by 2027, further projects the immense opportunity for Rupyz to drive digital transformation within the regional FMCG sector, projected to grow at a CAGR of 15 per cent. Additionally, factors such as increasing user adoption, with an average team size of 60 personnel per client and the surge in B2B Commerce enablement contribute to the expansion of the Average Revenue Per User (ARPU) and revenue potential, signalling a promising trajectory for Rupyz's growth & impact in the market.
Our commitment to Rupyz transcends mere financial stakes. We're here as mentors, guides, and partners, ready to work alongside and help navigate the path ahead. Investing in Rupyz is investing in an idea with the power to redefine commerce for small and medium-sized businesses. Together, we're not just anticipating a future where business operations are seamlessly digital; we're actively building it.