Know How This Company Helps Organize India’s Unorganised Sector

Jumbotail uses technology and form AI-driven low-cost supply chain operational processes to offer seamless customer experience in chaotic supply chains
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • Apr 22,2021
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  • 13 Mins Read

Lack of digitisation has been affecting the efficacy of kirana stores. This problem was recognised even before the pandemic wrecked the world. In 2015, the Bengaluru-based company, Jumbotail had got off the ground and begun organizing a highly unorganized sector (mom-and-pop stores) of the Indian economy. The process required solving fundamental problems in a supply chain characterized by largely unskilled and transient manpower, inconsistent product and packaging quality, and significant demand and supply uncertainty. 

At that juncture, the company relied on technology and created AI-driven low-cost supply chain operational processes to offer seamless customer experience in chaotic supply chains. It formed in-house technologies that enabled Kirana store owners with limited tech exposure to experience the power of the Jumbotail platform in their native language. Additionally, business data insights aided the B2B online platform (Jumbotail) in understanding and responding to customer requirements as well as drive higher sales for our brands. A wide business approach and strategising helped the kirana stores to avoid daily challenges of procurement, transportation, credit and stock outs. 

Its hard work paid off as the company now claims to be working with the top 100 FMCG companies and stock over 5000 (stock-keeping unit) SKUs. 

Crave a Niche

To serve the customers, the company uses its own network of fulfillment and distribution centres and its last mile delivery fleet - all powered by in-house supply chain technology built specifically for the unique requirements of food and grocery wholesale. It delivers orders placed on the Jumbotail app to the customers’ storefront within an average turnaround time of 24 hours. 

Its business model is lucrative and subsequently, has gained recognition in the market. Retailers can easily order staples and FMCG products through Jumbotail’s mobile app. Besides the mobile app, it has built five in-house, proprietary platforms - B2B online marketplace, Supply Chain and Logistics, Fintech for SME Lending, and Retail platform that powers its J24 branded convenience grocery stores, and GoToMarket Platform to help brands get access to T3/T4 cities across India.

Combat with Adversity 

When the pandemic began devastating the Indian market, the company faced disruptions as well. Problems were faced with certain manufacturers owing to production issues. Following this, the company saw a decline in staff that affected its operations. However, it rolled out measures to keep its teams safe and highly motivated. Furthermore, it worked with ecosystem partners to increase its capacities to keep pace with demand, which had spiked by two-three times. 

The pandemic-led lockdown proved as a testing time for the company as it witnessed surging demand from our existing customer base as well as new demand from new customers. It has to work with non-essential services companies to utilise their workforce to ramp up delivery capacity. 

Uphold Kirana Stores in Hour of Need 

The company’s finance model, Jumbotail Finance Services offers working capital credit lines to kirana store owners from lending partners, via Jumbotail in-house proprietary fintech platform at the time of delivery using a variety of payment modes including provided directly to customers. The lending partners use Jumbotail’s proprietary algorithms and integrated credit product to strengthen their underwriting. The firm significantly reduces customer acquisition costs for lending partners, credit disbursal and collection are dovetailed into its logistics and supply chain network. Its proprietary data and algorithms make it possible for our partners to extend credit to a larger number of customers with industry leading repayment rates. 

In the offing, the company plans to increase its footprint to tier-1 and tier-2 cities, and over 100 districts in tier-3 and tier-4. It has also said that it is onboarding a number of brands and adding hundreds of SKUs to our marketplace. J24 will scale to 500-1000 stores across key cities, making it the largest network of small format modern trade stores in India.

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