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PRATHAM

Stealth • 8m

PepperTap! We all discuss Successful startups but we can learn Many things from failed startups as well. Here's one PepperTap ( founded by IIM graduates🫡) once was 3rd largest grocery delivery startup. Back in 2014 they raised alot in two series B rounds and again $36 million in 2015. They operated on 100% inventory less business model. Basically they were mediator between sellers and customers. They provided Zero delivery cost within 2 hours • Business Model💸 They took 20% commission from seller. They scaled to 20+ cities with no way of profits and very high CAC and losses. • So what went wrong with PepperTap?🤔 Since they operated on 100% Inventory less business model, they had to sell on MRP. They gave crazy discounts on products with zero delivery cost. This caused increasing losses due to high CAC with no way for profits due to weak business Model. This led to no funds and ultimately shutting down business. 📉☠️ Now they probably are in logistics.

14 replies9 likes

Replies (14)

Anonymous 1

Stealth • 8m

Great read 🤘🏻

1 replies1 like

Havish Gupta

Stealth • 8m

Spending to Aquire customer is good but you will have to eventually stop. Making profit is the actual goal of a business. So expanding very fast without profits should be done when you have a great support from the VCs or have an existing business as a cash cow

1 replies3 likes

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They created Such a great business model

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