Sandeep Varaganti states that JioMart is evaluating a dark store model to bridge the vacant space left after leveraging its existing kirana network model
While India’s quick commerce space is witnessing significant investor interest, the high cost associated with dark stores and delivery infrastructure has been impacting its profitability. Amid a plethora of loss-making quick commerce start-ups in India, Sandeep Varaganti, the Chief Executive Officer (CEO) of JioMart, has stated that the company is pursuing it with the objective of doing it profitably.
Speaking at the Phygital Retail Convention, Varaganti emphasised that JioMart is evaluating a dark store model to bridge the vacant space left after leveraging its existing kirana network model.
“We are pursuing that path hands down….We will not burn money….will make it profitable. An internal team is evaluating options for the dark stores foray,” he said. The retail chain has its footprint across 1,000 cities, but there are some wide spaces in some locations, despite its kirana stores network effectively delivering, though not as dark stores, he added.
Varaganti emphasised that while Kirana is a thriving ecosystem, it has been impacted. He added that with too much synergies within Reliance Retail, which operates 18,000 stores across formats, the Reliance Group has a cash flow-driven mindset and the Indian customer has evolved from a three-day delivery to a 10-minute delivery.
The CEO added, “We believe that customers are not in a hurry, so 30-minute delivery is fine and they will not mind waiting for 10 minutes more,” Varaganti said, adding that JioMart has a basket value of Rs 700, which was higher earlier.
