🎢Dunzo’s Failure and Zepto’s Ascent
While Dunzo is struggling to raise funding to even pay its employees, Zepto has had a meteoric rise becoming India's first Unicaorn in 2023. We analyze why.
In Today's Siam Sixers
🌎 Dunzo’s Failure and Zepto’s Ascent - A Tale of Contrasts
📺 A video on Competing in the Age of AI
💡 Essential Reading for Product Leaders
🎧 Podcast: Startup Lessons from an Indian founder who worked with Jeff Bezos
💰 Search Wars: Google vs. Microsoft
😂 When You Ask a Marketer about ROI
1️⃣Dunzo’s Failure and Zepto’s Ascent - A Tale of Contrasts
Dunzo, backed by Reliance Industries, is facing a funding crisis, evident in its recent restructuring and the departure of co-founder Dalvir Suri. The company's struggle to secure funding has led to layoffs, deferred salaries, and a reduction in its dark stores. Reliance Retail's reluctance to slash Dunzo's valuation is hindering its efforts to raise capital, leaving its future uncertain.
Zepto's Meteoric Rise: On the flip side, Zepto, a Mumbai-based startup, became India's first unicorn in 2023 and is also number one in a LinkedIn ranking on India’s top startups. Offering a unique proposition of delivering groceries in under 10 minutes, Zepto has raised $560 million since its launch in early 2021. With a monthly growth rate of 200%, Zepto has established over 200 dark stores across major cities, bringing its valuation to $1.4 billion.
The story of Dunzo and Zepto is a tale of contrasts. Here’s my analysis of Zepto's Success and the strategic elements that contribute to the company’s meteoric rise.
🚚Dark Stores and Microwarehouses: Zepto's effective implementation of dark stores in densely populated areas enables swift deliveries in under 10 minutes. While Dunzo is reducing its dark stores, the Zepto management is showing 100% commitment to opening dark stores in strategic locations
🕒Optimized Operations: The company's focus on speed and convenience is evident in its optimized scheduling, packing, and delivery processes, ensuring a 10-minute shipping promise.
📊Data Analytics: Zepto leverages data analytics to predict demand, optimize dark store locations, and enhance operational efficiency.
🎯Smart Customer Segmentation: Targeting consumers in Tier 1+ cities with higher incomes, Zepto has customized its marketing strategies for optimal success.
💰Product Selection and Pricing: Zepto's emphasis on high-frequency, high-margin products, coupled with a strategic pricing model, contributes to its growth.
📢Promotions: Efficient App Store Optimization, smart promotional strategies, and a focus on a 10-minute delivery narrative have helped Zepto gain a competitive edge.
2️⃣Video: Competing in the Age of AI
In this video, Professor Kareem Makani, author of the book, Competing in the Age of AI, shows how companies can use artificial intelligence to their advantage in the modern business landscape.
He begins the video by showing commercials from 1992 that predicted the future of technology, such as being able to send faxes from the beach or open doors with the sound of your voice. While these predictions were accurate, the companies that made them did not end up being the ones to bring about these changes. Instead, digital-driven companies that operate as platforms and ecosystems have emerged as the leaders in the technology industry. He predicts a similar future for the AI ecosystem.
Makani's lecture also stressed the importance of embracing AI and digital transformation to stay competitive in the business world.
3️⃣Essential Reading for Product Teams and Leaders
Here are the latest articles from Siam Computing and the ProdWrks publication that I feel will be useful for product teams and product leaders.
🏆Winning Back Lost Customers: A User-Centric Approach to D2C Product Development
🏦Demystifying India Stack: Part 1 – ONDC (Open Network for Digital Commerce)
📱Optimizing Website Infrastructure for Scalability and High Performance
💰Propelld Shows the Way for Fintechs to Tackle NPAs in Education Loans
🚀What Is India Stack, and How Is It Evolving in 2023?
📜 Navigating Compliance with India’s Digital Personal Data Protection Act 2023
🏦 Why Is Digital Customer Onboarding Critical to Banking and Financial Transactions?
😓Is Your Startup Team Suffering from Software Development Fatigue?
👩💼Necessary Skills for Women in Managerial Roles
🎓 BrightCHAMPS’ EdTech Formula: Balancing Parental Aspirations with Fun Learning for Children
🚧 The Cost of Delay: Hidden Dangers of Technical Debt in Product Development
🤖 The AI Revolution: How is Artificial Intelligence Transforming Businesses
4️⃣Podcast: Lessons from Jeff Bezos
If you are someone who wishes to know more about the experiences of Startups in Silicon Valley, this episode is for you. In this podcast, Mukesh Bansal (Founder of Myntra and Cult.fit) is in conversation with Mukesh Prasad Singh, founder of ZopNow and former CTO at Make My Trip. He was also one of the core members of Amazon who got to work directly with Jeff Bezoz!
Mukesh Prasad sheds light on lessons learned from his entrepreneurial journey and the last 25 years working around Startups. He discusses his time working with Jeff Bezos, emphasizing the importance of gaining and sustaining customers. He also talks about how Amazon focuses on metrics and being customer-centric, with Bezos starting meetings by discussing customer service before diving into the business.
5️⃣Search Wars: Microsoft vs. Google
A battle of search engine giants is unfolding in US courtrooms with Google standing as the formidable force. Satya Nadella, Microsoft's CEO, recently took the stand, shedding light on the struggles of Bing, Microsoft's contender in this digital battleground.
Over hours of contentious testimony from Nadella during the landmark US v. Google antitrust trial, Nadella testified that the Bing search engine is not as good as Google. But the reason for that inferiority became the question of the day.
Nadella's testimony unraveled the challenges Bing faced in competing with Google, particularly due to the search giant's strong alliances, notably with Apple. The intricate dance of data dominance and default search engine arrangements emerged as key players in this unfolding drama.
The narrative unveiled Microsoft's earnest efforts to secure Bing as the default on Apple devices—a move Nadella deemed "game-changing." Yet, the alliance between Google and Apple persisted, leaving Bing navigating a landscape fraught with exclusivity deals and revenue-sharing intricacies.
Beyond the courtroom theatrics, Nadella's concerns extended to the realm of artificial intelligence. As Microsoft integrated ChatGPT into Bing, questions arose about the potential pitfalls—could Google's search dominance morph into an AI challenge, locking up essential datasets and hindering progress?
In this grand narrative of Search Wars, Nadella's testimony echoes the struggles faced by those attempting to disrupt the established order. The quest for equilibrium in the digital realm continues, with the specter of a Google-centric web posing challenges for founders and product leaders—a reminder that the dance of competition and innovation in cyberspace requires careful navigation.
6️⃣When You Ask a Marketer about ROI
I hope you enjoyed this week's curated stories and resources. Check your inbox again next week, or read previous editions of Siam Sixers for more insights. To get instant updates, connect with me on LinkedIn.
Cheers!
Khuze Siam
Founder: Siam Computing & ProdWrks