It’s rare to find a profitable e-commerce company in India. Especially, in the current climate, where venture capital is in short supply, e-commerce operators — and most internet-led businesses globally — are cutting corners to increase their runway.
In such a scenario, DailyObjects, a homegrown D2C brand that sells tech and lifestyle accessories, claims to be profitable on an annualized revenue run-rate (ARR) of Rs 100 crore. “We have been able to grow at a 2X rate for the past four years while being profitable. With the rising trend of social and mobile commerce, we continue to see incredible growth,” Pankaj Garg, Founder and CEO, DailyObjects, tells Business Today.
From smartphone cases, laptop covers, wireless chargers, and phone holders to laptop bags, wallets, card holders, and other organizational stationery, DailyObjects has sold more than 12 million products to a customer base of over two million. Almost 80 per cent of its products are designed and ‘made in India’ with the help of in-house designers, 1,000+ artisans and craftsmen, as well as 30-odd partner MSMEs, which provide raw materials, packaging, fabrication, and other specialized services. “We are moving swiftly towards becoming a 100 per cent ‘Make in India’ brand as the customer sentiment has shifted positively towards brands that are homegrown,” says the founder.
The company’s growth has particularly taken off post Covid, as is the case with several D2C players, DailyObjects claims a 300 per cent jump in sales in 2022 alone. “Our Average Order Value (AOV) has risen 70-80 per cent in the last three years, and is approximately Rs 2,000 currently, with 55,000 transacting users per month,” Garg shares.
DailyObjects raised funding from prominent investors like Ronnie Screwvala's Unilazer Ventures, Lenskart founder Peyush Bansal, and redBus founder Phanindra Sama, in 2016 — all of whom have exited the cap table since then. In February 2022, early-stage VC Roots Ventures put in $2 million into DailyObjects, taking its total lifetime fundraise to ~Rs 20 crore. “We are one of the most capital-efficient brands in India,” Garg says, adding, “The capital raised is being deployed on R&D and product development to be able to offer the best experience and service to our buyers.”
Japan Vyas, Managing Partner, Roots Ventures, said at the time of funding, “DailyObjects has built strong in-house end-to-end capabilities, allowing it to anticipate consumer trends and launch products faster than competitors. Scaling up while focusing on quality is something that is hard to achieve, and DailyObjects has not only been profitable in the journey but has become a go-to name for the youth.”
Garg says this popularity with a certain set of “mass-premium” consumers from Tier 1 and 2 cities, mostly in the 20-45 age bracket, has helped DailyObjects keep its customer acquisition cost (CAC) — one of the major expenses in e-commerce — low.
Add to that, the platform sees “a high customer repeat rate and major sales coming from its own channels” even though DailyObjects products are available across all third-party ecommerce marketplaces viz. Amazon, Flipkart, Nykaa, CRED, Myntra, and more.
“Almost 65 per cent of our revenue comes through our owned platforms,” Garg reveals. “We’ve been able to achieve this due to our product differentiation and the pull of the brand. For any D2C company to be successful, it needs to be innovative while providing its customer with the best shopping experience,” he explains.
With the Rs 100-crore target knocked off, DailyObjects has set its eyes on the next milestone, which is becoming a Rs 500-crore brand by FY25. For this, it has embarked on an omni-channel expansion strategy. The Gurugram-based company plans to launch its own retail stores in the next 6-8 months, besides forging tie-ups with Apple partners.
Says Garg, “Offline expansion is a key area of focus for us. Apple partners in India have shown keen interest in carrying DailyObjects products in their stores because of the superior quality, great designs, and expansive choices that we offer. You shall see DailyObjects products across Apple partner stores in the next couple years.”
DailyObjects also plans to undertake international expansion by tapping global marketplaces because it reckons its products “meet global standards in terms of quality, design sensibilities, function, and appeal”. The market opportunity in India, though, would be its first growth path. “Tech accessories is a 2.5 billion market in India. As a lifestyle accessory brand, our TAM also includes product offerings like bags and work essentials, and will be $15 billion by 2026,” Garg states.
DailyObjects is merely scratching the surface.
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