By: Dhwani Dharamshi
Last updated : December 31, 2024 3:09 pm
Alok Chawla, Co-founder and CEO of Kiko Live, tells Retail4Growth, how the company is digitally empowering kirana stores and enabling them to address the challenge posed by quick commerce and other market dynamics.
Kiko Live, a SaaS solution, was built on a simple yet powerful idea. It used real-time communication between buyers and sellers within a single app. Customers had the advantage of choosing between traditional phone calls, video calls to view products, or in-app chats to interact directly with the seller. The beneficiaries behind these solutions are the kirana store owners who leverage Kiko Live to compete against quick commerce and provide a comfortable shopping experience to their customers. The company has already on-boarded about 840 kirana stores across the country.
Kiko Live’s journey did not start during the pandemic or during the spread of quick commerce, rather it came into existence much before. Kiko, interpreted as ‘happy’ in Japanese, came from the idea that it wanted to be a positive outreach for the business.
Breaking down the whole process of how Kiko Live works, Alok explains, “The whole process - from the buyer sending the list of groceries to the seller receiving the order can take around 3-4 hours. We’ve built a single panel platfrom for the seller, where his store orders from multiple source are collated and managed. Our AI-driven back-end processes these interactions in real-time, refining and finalizing orders, making it more efficient for both parties. The AI simulates the experience of the buyer browsing the site like a real grocery store, adding products to the cart, totaling it, and getting a reply on WhatsApp instantly.”
The digital inventory solution connects the end customers through 3 platforms: ONDC (Open Network for Digital Commerce), a direct interface, and WhatsApp. This patented process digitizes inventory management and payment systems, helping the Kirana stores owners promote their products to existing customers and new ones in multiple ways.
Adapting to Evolving Needs
Kiko Live's strength lies in its constantly evolving form where it's made adaptable for the Kirana stores to meet changing retail demands. By collaborating with the ONDC, Kiko Live allows its sellers to showcase their products across multiple buyer apps.
So the question arises, is quick commerce (QC) a threat to this platform and its business? Alok clarifies, “Although quick commerce (QC) platforms might seem like a threat to this model, Kiko Live views them as an opportunity. Many local Kirana stores maintain strong relationships with loyal customers who rely on them for everyday needs and thus have an edge over quick commerce. By digitizing their operations, Kiko Live helps these Kirana's strengthen these bonds and take on the threat posed by quick commerce.
“Right now, the market is such that a QC order typically ranges between ₹400-₹600 for 4-5 items. For any more items to be purchased and customers would rather go back to shopping at the stores. The customers essentially want the comfort of home delivery in the least plausible time, and if the Kirana stores are fulfilling this need, QC cannot be a threat to them. So, what we do is equip these retailers to capture 10-20% of their revenue driven by home delivery. With competitive delivery timelines and trackable logistics, the platform ensures that businesses stay relevant, " explains Alok.
Challenge
Encouraging traditional retailers to adopt digital solutions was initially a challenge. Many viewed digitization as complex, with some dropping out after the on-boarding process, says Alok. However, as QC platforms began impacting their business, attitudes shifted. Today, as Alok shares, Kiko Live prioritizes on-boarding retailers who understand the value of digitization and are committed to using it to their benefits.
Expanding Across India
From its headquarters in Mumbai, Kiko Live has been operating in Delhi, with expansion plans to Bangalore where 12 stores have already been activated. The company now plans to reach 10 cities, including tier-2 and tier-3 cities by 2025. The platform’s goal is to support 10,000 retailers across metro and non-metro areas, extending the benefits of digital commerce to regions where the QC model faces limitations.
Talking about the future, Alok shares, “We are in the process of launching our dedicated buyer app forming partnerships with non-ONDC buyer apps to expand into non-grocery categories. Along with that, we are planning to add an upcoming feature ‘The Khata system’ for selected, trusted buyers who can purchase groceries on credit.”
“Kiko Live’s vision lies beyond connecting just retailers and customers. We are also planning to collaborate with FMCG brands and B2B distributors to understand inventory and stock management. Our end goal is to help retailers digitize themselves, and if we understand a digital view of inventory in a geography, we can provide more services such as working capital loan and more,” informs Alok.
India’s grocery market, valued at $880 billion, includes a $90 billion segment for home delivery. Kiko Live aims to digitize 10% of this market, unlocking a $4.5 billion opportunity. With recognition from ONDC and support from the Ministry of Finance, Kiko Live is at the forefront of digitization. By enabling Kirana stores to coexist with QC platforms, the company is attempting to preserve the livelihoods of Kirana owners.