Coronavirus impact | Kiranas digitise to adapt in post-COVID-19 world

Local grocery stores or Kirana shops are seeking help from business-to-business (B2B) startups to keep shops running amid the coronavirus pandemic.

Startups are helping Kiranas digitise, build a broader distributor base and with online orders and deliveries, as per a report by Mint.

While Kiranas have traditionally functioned on in-person orders, the lockdown due to the COVID-19 situation has caused businesses to adapt.

Shopkeepers now use WhatsApp to take customer orders, platforms such as Swiggy for deliveries, allow digital payment options and have tied-up with e-commerce startups such as Jumbotail and Udaan for supplies, it noted.

Amid the distribution and supply constraints, having a number of e-commerce options has also ensured that Kiranas can source supplies from multiple places depending on availability.

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With Kiranas displaying agility to adapt, startups are building business models to meet their requirements. Among these,  a Delhi-based B2B platform MaxWholesale saw business triple post lockdown. The company scouts warehouses of FMCG distributors for inventory and deploys vehicles to supply the same for Kiranas and stores.

It also has an app for customers called Radius, which allows them to contact local Kiranas and stores. The company claims Rs 1 crore single day business over the past week.

Samarth Agarwal, CEO of MaxWholesale told Mint the problem area is lack of technology. “Kiranas are efficient and profitable. We are committed to making Kirana stores comfortable with technology by solving their core problem of dependable supply,” he added.

Another startup, Peel-Works, is working with the city administration to “keep the supply chain moving”, Founder-CEO Sachin Chhabra said. “We have even procured inventory from distributors and delivered that to stores as part of the assortment we usually sell," he added.

Abhishek Bansal, co-founder and CEO of Logistics Company Shadowfax, however, noted that while the Kiranas have become “far more important”, they suffer logistical issues.

“There are some inherent challenges to kiranas being digitised. They are not tech-savvy, they work on handwritten bills, and ledgers and smaller stores lack a point of sale machines. Technology adoption remains an inherent challenge," he said.