Knottykart.com - India's largest online wholesale store
by Mayank Kumar
(Noida, Uttar Pradesh, India)
I was earlier working at Yebhi.com heading Electronics and Mobile Phones business for them. I had a very urgent opportunity for which I thought of sending in a short brief.
I had been talking to Sony India for the last few months. We met with their country head yesterday and they have given us a nod to appoint us as their National Partner for online business. This essentially means that all online cos including Flipkart, Naaptol, Snapdeal, Homeshop18 and others will get routed through us as far as products of Sony are concerned. This will be a huge competitive edge for Knottykart and a remarkable differentiator for us in the industry
Their due diligence process has already started and our official appointment including KYC compliance and registration should get over by end of this month and our target go live date is 1st July 2013.
We are already an online aggregator and started commercial operations in end November 2012. In the last financial year (4 months roughly), we clocked a total turnover of USD 3.5 Million. We broadly deal in the Electronics and Mobile Phones space. I started this business in November 2012 and this was done by borrowing money from friends and family at the initial stage. Till date, we have reached a level of USD 6 Million in less than 8 months.
On the Sony front, the current business market size (online sales) for Sony products in the online space is approx USD 5 Million per month (USD 60 Million annually). This includes their product categories of Digital Cameras, Panels and Home Theatres, Gaming, Accessories and IT Division. This business is profitable and will fetch a Gross Margin of 2.5% to 5% depending on various categories.
In the overall scenario, the total Gross Margin is 3.0% and our operational cost is 1.5%. We have been a cash positive business month on month since inception.
While we are adequately equipped to grow at the current pace and reach to a level of Rs. 100 Crores in the current scenario, we are sure to reach to much higher levels with your help and guidance. This opportunity with Sony India is very promising and profitable and Sony is keen to close this in the coming week. If there is any opportunity such as JV, Bank Loan, Equity participation etc, please advise.
Also, if there is an opportunity where a 3rd party can provide a Bank Guarantee (BG) on our behalf to Sony India, we can start scaling business with them, without the need of liquidating the Bank Guarantee (BG) and managing a healthy rotation of cash flows and optimising inventory levels
As a lot of heart and soul has been put into the company to bring to this level and if everything with God’s grace and your help goes in the direction, we should be able to cross Flipkart in the next 2 years and become India’s first profitable ecommerce venture at such a large scale.
If you could help us out in this business or introduce us to someone who would be keen on the same, we would be very grateful. Should there be a requirement of an LOI (Letter of Intent) from Sony India, I can try and get the same.
Also, please let me know what all documentation / paper work is required from my side for the Due Diligence purposes and I will try and quickly arrange it early next week.
(M): +91 97175 88811
(D): +91 120 257 17 17
(CC): +91 124 222 66 66