Bangalore based and seed funded LocalRamu, a mobile based aggregator for local service providers, has achieved Operational Profitability within three months and a half of its launch in March 2016. This achievement is the first milestone that founder Santosh Tyagi along with his growing team has reached in a very short time. It is another steppingstone in the journey of LocalRamu towards its mission.
LocalRamu App facilitates access to local service providers in 18 categories as of now, including 20 ltr water cans, electrician, plumber, carpenter, gadget repair, beautician, home cleaning, puja pandit, photographer, laundry, tailor, car / bike service and likes. The users of LocalRamu app will get these services at the doorstep while sitting in their homes within a few minutes.
Equipped with two business models, B2B and B2C, LocalRamu is to introduce new service categories according to demand and meet the needs of the existing customers. “Real business model is when your startup is making money, and this is what LocalRamu has done. These days it is a big achievement for a startup to be operationally profitable and that too just in three months and a half month with 2x growth month on month whereas other startups are burning multi million dollars,” says Santosh Tyagi.
Among the recent changes in the business model, LocalRamu is keeping in-house delivery service in the water supply category based on a profit-sharing model for local vendors in those areas where they get minimum more than 100 transactions a day. Currently the in-house delivery service is available for only one neighborhood in Bangalore. Soon it will be available in at least 10 new locations, including BTM, HSR, Kormanagala, JP Nagar, Belendur, Marathahalli, HAL, Domlur, Bomanahalli and Jayanagar.
“We will make our presence all over Bangalore for local services in all categories by September 2016 except two categories: laundry service and water cans delivery. After September, we will venture into a new city every month,” adds CEO Santosh Tyagi sanguinely.