CHENNAI: As the world went digital, Vivek Shukla noticed that the local kirana stores bore the brunt of online shopping. He went ahead to create a system that would empower the ‘nukkad shops’ to compete with the corporate giants. This led to the formation of Nukkad Shops, a Hyderabad-based start-up. By enabling shops with devices and technology for sales, registry of inventory, and a track of customers, Nukkad Shops has made its mark among the small retailers across the country.
“Belonging to a small town, Varanasi, I know the importance of these small shops that make up the neighbourhood. Most of them still keep their records manually which is a hassle. People have started buying even the groceries online. But by enabling them with a technology that is user-friendly and effective for their business, it wasn’t difficult to get shopkeepers and businesses on board,” explains Vivek, founder, Nukkad Shops. The start-up claims to have penetrated over 2,000 shops across cities and 2 tier towns with a user base of about 50,000.
Those subscribed to Nukkad Shops have a point-of-sales (POS) based system, which includes a 10-inch tablet, an in-built thermal printer, barcode scanner and a cash drawer at the heart of the app, which is compatible with Android and iOS-based mobile devices. This also helps them digitise entire inventory and make it accessible for all their regular customers. Users subscribed to Nukkad Shops can access shops that are within the two-kilometre radius from their location making it easier for them to reach their necessities. Vivek adds, “It is especially beneficial for those who have shifted to a new city or town. The search for grocery shops and other essentials is cut down.”
Vivek put in the initial investment with his own money and some help from friends and family. But their project went full throttle when Purple Talk a Dallas-based company invested $1 million in Nukkad Shops in a funding series last May. “We were able to meet the demand and the manufacturing needs for the devices. It increased our penetration and we expanded across India,” says Vivek. In revenue, Vivek shares that the company makes about `1.4 crore per annum.
Nukkad Shops have big plans underway where they intend to expand to other operating systems and increase their user base. They are also seeking a second series of funding to expand and expect to increase revenues by around `20 crore in the upcoming financial year.
In a nutshell
● Nukkad Shops founded by Vivek Shukla took off after a series of funding of $1 million by
● Their turnover per annum stands at `1.4 cr currently. They are looking to increase to `20 crore by the end of the year.
● Their point of sales system provides the retailers with a tablet, thermal printer, barcode scanner, and a digitally enabled cash drawer.
● They currently have a user base of 50,000 and are spread across 2,000 shops around the country.