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DiagunCart, the Kochi-based startup engaged in the supply of trending and innovative products through online sales, has lined up investments worth ₹100 crore as part of its expansion plan in South India.
The company which started its operations during the first lockdown with a capital of ₹1 lakh and a virtual office now has a customer base of 50,000 in Kerala.
The online store -- www.diaguncart.com is a B2B & B2C company delivering extensive range of products which encompasses industry safety products, personal safety products, disinfectants and biodegradable, agriculture and compostable products, sports and beauty care and other consumer products at the doorsteps.
Also read: E-commerce firm DiagunCart offers anti-Covid kits to 5000 Kerala school students
The South India expansion plans is expected to generate 2,000 new employment opportunities, said Jijy Philip CEO, Diaguncart.com. The company was able to make inroads in the market with products delivered directly from industry-leading manufactures and from authorized distributors.
Delivery by speed post, courier
The products are now delivered across the country by speed post and other available courier services.
As part of the expansion plans, he said the company will start its own distribution network in Kerala and it will be expanded to other states. With the expansion, the company expects to achieve a monthly turnover of ₹10 crore.
It was the shortage for Covid control materials such as sanitisers and masks in the lockdown period that had prompted Philip and his friends Abilash Vijayan and Habeeb Rahman to start an e-commerce platform in May last year.
The startup has gained acceptance among the customers when masks were given at ₹3 and all other Covid preventive materials, agriculture, sports, beauty care and other consumer products at a very reasonable cost. And the low prices of Covid products even attracted airline companies Etihad, Emirates and some point Air India to look at Diaguncart.com. The company still supplies to Etihad and Emirates because of competitive prices, Philip said.
Habeeb Rahman, CFO, DiagunCart said the Indian e-commerce sector is ranked 9th in cross-border growth in the world. The country’s e-commerce market is projected at about ₹6,000 billion in 2021. South India, which is the hub of IT business, contributes 41 per cent of overall e-commerce sales in the country. The pandemic, lockdown and the need for social distancing has brought a significant change in shopping behaviour. Consumers across metros, urban and rural areas have now switched to online purchases, he said adding that work from home culture has also fuelled online sales.
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