Siksti's Hyperlocal App Revolutionizes E-commerce with Lightning-Fast Beauty and Fashion Deliveries in 60 Minutes

In today's fast-paced world, we've grown accustomed to having groceries and hot meals delivered right to our doorsteps within minutes, thanks to hyperlocal solutions provided by companies like Zepto and Blinkit. Even food delivery giants like Swiggy and Zomato ensure we get our freshly-cooked meals in under an hour. However, when it comes to non-perishable products, most e-commerce and D2C (Direct-to-Consumer) brands typically take 3-4 working days for delivery.

Consider Amazon Prime, for instance, which offers delivery within 24-48 hours for Prime-eligible products, but many items fall outside this subscription and take longer to arrive. Myntra, another major e-commerce player, provides a two-day express delivery option, but it's limited to a select few brands and specific cities.

Recognizing this gap in the market, Akshay Gulati and Bipin Singh took the initiative to launch Siksti in June 2023. This Bengaluru-based startup aims to revolutionize e-commerce delivery times, bringing them on par with the swift services offered by Zepto and Swiggy. Siksti's primary focus is on the hyperlocal delivery of beauty, personal care, and fashion products, with a commitment to delivering products in less than 60 minutes.

Siksti operates as a 100% omnichannel aggregator brand, distinct from traditional e-commerce platforms. The company doesn't maintain inventory or dark stores but instead leverages existing brand stores and dark stores to fulfill orders. Siksti boasts an extensive catalog featuring over 300 brands, including popular names like Lakme, L'Oreal, Colorbar, Maybelline, Jimmy Choo, Plum, Minimalist, Olay, Sun Scoop, and more. These brands are represented by retailers such as NewU and Beauty and Beyond, among others.

Akshay Gulati, the CEO and Co-founder of Siksti, along with Bipin Singh, previously worked at Perpule, a retail tech Software as a Service (SaaS) venture. They were involved in delivering Point of Sale (POS) and omnichannel solutions to major retailers like Big Bazaar, Spencers, More, and 24seven. After Perpule was acquired by Amazon in 2021, they collaborated closely with Amazon's omnichannel team and identified a growing trend among customers demanding faster delivery in the beauty, personal care, and fashion sectors.

During their tenure at Perpule and Amazon India, they realized that most large e-commerce platforms, as well as independent brand websites, typically took more than four days to deliver fashion and beauty products. This delay was largely attributed to warehouse constraints. To address this issue, they envisioned a solution that tapped into the extensive network of offline stores, making their operations 100% omnichannel to achieve faster deliveries.

In early 2023, Akshay and Bipin left Amazon and capitalized on their network of connections with large-format retailers to launch Siksti. Since its debut last month, the startup has experienced an impressive 30% repeat purchase rate and achieved positive contribution margins. In its first week, the company successfully processed over 100 orders, highlighting the demand for expedited delivery services.

Siksti's user-friendly app is available for download on both Google Play Store and Apple App Store, boasting over 10,000 downloads and a 4-star rating. The platform features a diverse array of nearly 300 brands specializing in beauty and personal care products in Bengaluru. Impressively, it offers visibility into more than 15,000 unique Stock Keeping Units (SKUs).

One of Siksti's key strengths lies in its seamless integration with multiple retailers, including their Enterprise Resource Planning (ERP) and Point of Sale (POS) systems. This integration allows Siksti to provide real-time synchronization of inventory levels and in-store promotions. Customers within a defined 15-kilometer radius can access this information through the app. When a customer places an order through Siksti, a delivery executive promptly collects the items from the chosen store in under 10 minutes and ensures delivery to the customer's doorstep within 60 minutes.

To facilitate these swift deliveries, Siksti has formed partnerships with third-party service providers such as Dunzo, Shadowfax, and Porter. The startup takes pride in being an asset-light company, meaning it doesn't maintain its own inventory.

It's important to note that Siksti doesn't offer a cash-on-delivery option, and cancellations are only permitted until a delivery executive is assigned to the order. Returns are subject to specific terms and conditions. However, as Siksti expands, it may consider keeping inventory for online-only Direct-to-Consumer (D2C) brands.

The market opportunity for Siksti is substantial, particularly within the beauty and personal care sector in India. According to an IMARC report, the market size in this segment reached $26.3 billion in 2022, with projections of reaching $38.0 billion by 2028, exhibiting a Compound Annual Growth Rate (CAGR) of 6.45% during 2023-2028.

Siksti operates on a revenue model that charges partner stores a commission ranging from 20% to 25% for collaborating with the platform. Notably, it doesn't employ a subscription-based model. Customers are charged a flat delivery fee of Rs 25 per order, and Siksti reports that customers have not shown resistance to this fee, with no noticeable drop in orders due to the delivery charge.

At present, Siksti is a bootstrapped startup. It competes with established e-commerce marketplaces like Amazon, Nykaa, and Myntra. However, Siksti differentiates itself by providing expedited delivery services for the same range of products. Looking ahead, Siksti plans to focus on scaling its operations to Tier-I cities in collaboration with organized retailers over the next three years. Afterward, the company aims to expand its reach to local sellers.

As the beauty and personal care market in India continues to grow, Siksti is well-positioned to capture a significant share of this market by offering rapid delivery services in partnership with its retail associates.