LadyLad was struggling to get funding to run the shop in India and simultaneously expand globally
Saurabh Singla, co-founder and CEO, LazyLad confirmed to media that they have closed their shop for B2C customers and laid off 30 employees. They will now look into B2B segment.
“As you can see, the mobile app is not functional. We have shut down the business-to-commerce (B2C) segment of the business and are looking to pivot to the B2B side of the business,” Saurabh Singla told media.
Started in April 2015 by Alumna of IIT- Guwahati, Saurabh Singla, Paresh Goel and Ajay Sethi, is a neighborhood marketplace through which you can order daily needs. Delivery is done typically within 90 minutes; groceries, fruits & veggies, stationery, bakery meat & seafood, and flowers can be ordered.
In February LazyLad was trying to raise $2.5M for its national and global expansion but there was a delay. It received $500K in pre Series A funding in July 2015 from Hirokazu Hirokazu, Jai Choi and Kiyohiro Sugashita.
LazyLad is also the first startup in the Green House Ventures’ (GHV) accelerator program and has raised $100,000 from GHV in exchange for 20% equity.
Hyperlocal delivery apps are facing a tough time in the market due to limited funding and logistics expenses. LazyLad claimed to do 1000 orders per day with average ticket size of Rs 300/-, it clearly shows that a greater ticket size could have improve their margin.
Other hyperlocal delivery app like Groffers shut down in 9 cities, Ola cafe was closed, PepperTap closed down, Nagpur based GetNow closed its operations and Flipkart’s grocery delivery app Nearby closed down.
To reduce costs hyperlocal apps should tie up with logistics partners or look into B2B segment to increase ticket size. Another option is to onboard local stores, provide orders to the stores, and let them plan out the delivery. Funding should be planned in such a way that the startups can survive the gigantic competition wave for at least 3 years.
Read Apps closing business should inform customers