PriceMap – the Google for retail shopping and best price finder – witnessed a sudden surge in traction post-GST. The level field now created for e-Commerce and offline retail triggers the second phase of expansion. Eyeing to raise $5 million soon, PriceMap to add more cities and products.
New Delhi, July 12, 2017: PriceMap – the app that connects neighbourhood stores to the buyers – witnessed a sudden spike in traffic post-GST implementation on 01 July. The new tax regime has only helped creating a level playing field and mitigated the extreme price difference between the two modes of shopping.
Speaking about the effects of GST, Suresh Kabra, founder of PriceMap says, “With the onset of GST, online price of various products has gone up. Online sellers are no more being able to take advantage of the VAT rates differences prevalent in the pre-GST era. So a mobile seller from Karnataka will no more be able to sell iPhone to a buyer in Delhi at a much lower price than local shop because VAT in Karnataka on mobile phones was much lower than VAT levied to a local seller in Delhi. The price differential between various online players themselves will reduce since every online seller will follow the same GST rates, immaterial of their location and portal they are selling from.”
“Post-GST, sellers will have to play on the inherent strength of the specific distribution system, offline Vs online, and associated cost savings which can be passed to the end consumer. Given that the brick & mortar retail carries no overheads of delivery, COD management, returns and refund mgmt, we expect brick & mortar retail to offer better deals than online in the post-GST area,” added Suresh.
Driven by income growth, urbanisation and attitudinal shifts, India’s retail market is expected to nearly double to US$ 1.3 trillion by 2020 from US$ 600 billion in 2015. Even with high growth in modern trade and online commerce, the unorganised retail which contributed about 92% of total retail in 2015 will continue to contribute upward of US$ 1 trillion (76%) in retail market value in 2020.
Majority of Indian society is still hooked to the culture of direct interaction with the sellers, trying hands with the look and feel of the product and their preference for bargaining, makes the neighborhood stores a significant player in the future of retail. The segment is expected to gain another boost post-GST implementation. PriceMap being a facilitator app for mom & pop retail market, eyes for a big share of the pie and is all set to ride the wave with its expansion plans all set and rolling.
PriceMaap is already talking to investors and soon expects to raise funds for its expansion. The series-A funding will be on top of the seed funding of $600,000 which PriceMap raised in early 2016 when the start-up was incorporated, from a clutch of HNIs.
Post GST and with the expansion in terms of reach and product range on offer, Suresh expects a manifold rise in his userbase. The targeted market that PriceMap is eyeing to penetrate by way of expansion is a mix of tier 2/3 cities such as Jaipur, Chandigarh, Ludhiana and Lucknow, to name a few. With a bigger population of value-conscious buyers in these markets, PriceMap is confident of higher adoption in these cities.
PriceMap is currently active in the Delhi – NCR region only and its product portfolio includes categories such as mobile, appliances, home entertainment and more. With the help of aggressive marketing and innovative BTL activities, the startup has succeeded in garnering a lot of attention.
PriceMap provides a win-win solution to both buyer and seller. For the buyer, it enables a price comparison across offline and online channels, enabling them to get the best deal across. For the seller, it generates additional footfalls into the shop from buyers who would have otherwise bought online due to lack of the seller’s presence on the net. In that perspective, it is an indigenous shopping assistant custom built for Bharat, where retail is a mix of mom & pop stores, modern trade and online commerce.