KOCHI: A chance visit to a mobile store and the interaction with the owner led to the development of a platform that aimed at helping out retail stores sell their wares in this era of online shopping. Matsapp is a startup that aims to create a sustainable local economy by maintaining maximum cash flows in an area. The startup uses a unique business model called online-to-offline (O2O) commerce that draws potential customers from online channels to make purchases in physical stores.
According to Thomas Antony, founder and CEO of Matsapp, four years ago while doing digital marketing, lead generation and social media campaigns, we came across a mobile shop owner in his home town. “There was a signboard at his shop. It advertised that mobile phones will be sold at online prices. But, he said that it was not working. The board did nothing to improve the sales,” said Thomas.
The mobile shop owner told us that even if he were to sell his entire stock, marketing the initiative will not work, he added.
“It was then that we thought of creating a platform that will help out such entrepreneurs. We did a lot of studies and research. And we came across a business model that enabled increasing the footfalls in offline stores by promoting them online,” he added.
Matsapp’s journey took off in 2019 in the backdrop of the Thrissur Shopping Festival. According to Thomas, he happened to connect with Janeesh P S, the executive director and COO of Matsapp, at the shopping festival. “He was the keystone of the festival, and I met up with him. This meeting was the stepping stone towards the development of the platform called Matsapp,” he said. The idea behind Matsapp was launched at the festival.
Thomas said, “Through our O2O mobile application, we bring all neighbourhood local stores to customers’ fingertips. We provide a unique technology for all local businesses to stay closer and maintain a warm binding with the customers at any time. It also creates a business ecosystem where merchants can stay united to resist and overcome online corporate threats.”
He said the majority of local businesses doesn’t have an online presence. “There is no platform to display offers and discounts that these stores provide. Hence, customers are unaware of the deals and offers in their locality,” he added.
With online shopping experience becoming attractive, the friendly-neighbourhood stores are slowly vanishing due to a lack of business. “Merchants can’t reach potential customers due to huge marketing costs,” said Thomas.
However, becoming the clientele of offline offers customers many pluses. “In the case of online shops, getting the items to the customers takes a lot of steps. The first one is shipping and logistics. Many times the products get lost or damaged in transit. Also, the order tracking system is sometimes unable to locate the product accurately,” said Thomas. Then there is the problem related to getting the items replaced.
Online sellers sometimes refuse to replace faulty products or refund customers, leaving the latter with an inferior product and money down the drain. But that doesn’t happen in the case of offline stores,” he said. But how does Matsapp work?
He said, “Merchants can showcase all discounts, offers and deals of their stores. The customers will be able to easily access the best discounts, offers and deals from nearby stores. The platform helps merchants and customers connect with each other.” This, in turn, triggers more footfall and stimulates local businesses.”
Customers can then visit stores and buy items directly. “They get the item instantly. No waiting period is required, and customers get to enjoy all excitement of real shopping,” he added. The platform has two interfaces. One for customer and the other for merchants.
Thomas said, “As of now 12,000 stores have connected. We are presently concentrating on the B2B section. B2C has just begun on a trial basis. So far, there have been 20,000 downloads from the side of the end users. This happened following a campaign as part of the Onam festival. But we plan to get to it in full swing by December. We want to increase the number of end users by 1,00,000. By April-May, we want to go up to 5,00,000.”
He said for this they are trying to raise Rs 2 crore. “The initial investment was Rs 2.4 crore. Of this, Rs 75 lakh was raised through equity, Rs 50 lakh through franchisee and Rs 1 crore via bootstrapping,” he added.