BeverageCart is a first of its kind platform in India that will address last mile delivery for retailers and hotels, restaurants and caterers (HoReCa) channels by facilitating online wholesale orders.
The Mumbai-based startup, through BeverageCart, said it aims to connect businesses with companies by bringing the dedicated marketplace at their fingertips using technology and disrupt the $62.5 billion market by completely changing the current structure followed in the market.
“We will eliminate multiple distribution layers by providing all products under one roof. It has a BNPL scheme (buy now pay later) wherein the customer gets a credit of 45 days from a financial institution and we get our payments up front. This solves their problems of credit as well as ours, as much of our capital isn’t blocked in working capital,” said Mohit Bhatia, cofounder of A1 Cuisines.
The company will buy products from brands directly and sell as well deliver them to clients for commission and platform fee, a hybrid business model acting as both aggregator and distributor.
Founded by Ashish Bhatia and Mohit Bhatia, A1 Cuisines also sells non-alcoholic beverages such as ginger ale, low calorie sparkling and tonic water.
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The company is already piloting the initiative with more than 20 brands that serve over 300 business-to-business (B2B) customers in Mumbai and Pune.
To support the expansion plans, the company has added three warehouses in Mumbai and Pune with another three slated to open in Pune and two in Goa by September this year. It aims to reach top metro cities by March next year.
In India, beverages makers still rely heavily on distributors and wholesalers to supply their brands to retailers and large institutions. However, BeverageCart, as an organised distributor, aims to digitise the entire ordering process by linking technology with real time data in terms of consumptions, repeat stocking and warehousing for both companies as well as HoReCa.
“With BeverageCart, we eliminate manual purchase order, constant follow ups, multi-layer distribution channels to digitise the entire process through automation and artificial intelligence and providing all beverages under one roof. The app provides a seamless experience to place orders and get live tracking as well,” added Bhatia.
Within the fast-moving consumer goods segment, neighbourhood stores ordered nearly $4 billion worth of groceries and daily essentials either from organised cash and carry companies or directly from companies through online apps, circumventing traditional distributors after last-mile delivery were disrupted due to Covid-19 restrictions.
However, unlike packaged consumer goods, beverages as a category required brands to replenish stock frequently, making the supply chain cumbersome and expensive. As a result, just 2% of the entire beverages sector is digitalised, indicating the huge potential for online sales and ordering.
