Excess2Sell Success Story - How it is Easing the Selling of the Excess Inventory?
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Verticals and domains dealing with the supply chain—where manufacturers, vendors, distributors, wholesalers, dealers, and resellers are involved— tend to have some unsold, overstock, and aging inventories left over. As per industry estimates, at least 20-30% of goods worth $500 billion – $600 billion in the Indian retail segment, end up as overstock. Excess2Sell is making the most out of this unsold inventory valued at approximately $30 billion.
Excess2sell.com is an e-commerce platform where vendors, manufacturers, dealers, and wholesalers alike can put up their excess inventory for sale. The catalog of offerings includes, but is not restricted to, electronics, computers, industrial Goods, LED electrical, and home appliances, among others.
Excess2Sell has grown at 150% CAGR since 2016. It has liquidated excess inventory of over Rs 2.23 billion (over $29 million) across India. With a revenue target of Rs 2000 crore ($267 Million) by 2023, Excess2sell is rapidly redefining the concept of selling excess inventory in India.
StartupTalky interviewed Excess2Sell CEO Rajan Sharma to know the Success Story of Excess2Sell and also get a glance at the Excess2Sell Business Model, Funding, Revenue, How it started, competitors & more...
Excess2Sell - Company Highlights
| Startup Name | Excess2Sell |
|---|---|
| Headquarters | Mumbai |
| Founders | Rajan Sharma, Anant Chaturvedi, Navinder Chauhan |
| Sector | E-commerce |
| Founded | 2016 |
| Total Funding | ~ $1 Million (Angel Funding on March 2020) |
| Revenue / Turnover | INR 100 crore (Third quarter of FY 2019-20) |
| Website | excess2sell.com |
| Parent Organization | Checkers Technology India Pvt. Ltd. |
About Excess2Sell
Excess2Sell - Founders And Team
Excess2Sell - Startup Story | How It Began?
Excess2Sell - Vision And Mission
Excess2Sell - Name And Logo
Excess2Sell - Business Model And Revenue Model
Excess2Sell - Funding And Investors
Excess2Sell - Startup Challenges
Excess2Sell - Competitors
Excess2Sell - User Acquisition
Excess2Sell - Growth and Revenue
Excess2Sell - Future Plans
About Excess2Sell
Excess2sell.com is a comprehensive B2B platform marketplace for excess inventory management across verticals such as computer hardware and software, telecom, security, home appliances, apparels, lighting, kitchen items, etc.
The platform acts as a bridge between the seller who is stuck with unsold inventory and the buyer who may be keen to stock or has a high demand for a given product in their domain. It provides sellers the opportunity to liquidate anywhere in India and helps them transact in a confidential, anonymous, and neutral manner.
Lakshya Singh
Excess2Sell - Founders And Team
Rajan Sharma, Anant Chaturvedi and Navinder Chauhan are the founders of Excess2Sell. While Rajan Sharma is the CEO of the startup, Anant Chaturvedi, and Navinder Chauhan are the Directors of Excess2Sell.
Anant and Rajan have been working together since 2003. They were at D-LINK (India) and then at its subsidiary GIGABYTE TECHNOLOGY till 2011. Post this, they were a part of Smartlink Networks wherein Navinder joined them.
Rajan Sharma
Rajan Sharma has been the Founder-CEO of Excess2Sell. He was previously associated with Priya Ltd. / PEAC SINGAPORE, in which Rajan closely worked with Intel, LG, WDD. It was a time when the PC market was in its nascent stage. D-LINK and GIGABYTE were two other companies in which Rajan spent a major part of his professional tenure.
Anant Chaturvedi
Anant Chaturvedi is a Director of Excess2Sell. Chaturvedi has previously served more than one company and has taken up key leadership positions in them. He served as the Asst Manager Channels at Intex Technologies; Regional Manager - Channel Sales at DLink India; Sales and Distribution Head of India at Gigabyte. He also worked with Smartlink Network Systems and iRevo Multimedia as DGM - Sales & Distribution and Sales Head respectively.
Navinder Chauhan
Navinder Chauhan is another Founder-Director of Excess2Sell. Chauhan has a Bachelor's degree in Science with a majors in Botany and Chemistry from Bundelkhand University. and then obtained an MBA in Marketing from the same university. Chauhan also has a work experience at DLink and iRevo, where he served as the Marketing Head and the Vice President of Marketing. Apart from that, Chauhan also worked with many other companies like Aditya Infotech, Rashi Peripherals, Panduit International Corp., Smartlink Network Systems, and Cisco Systems, where he held several managerial positions in Marketing. CyberMedia was the company Chauhan started his career with, where he served as a Senior Marketing Executive.
Amit Kundra, who heads Excess2Sell's tech division, has been supporting the trio in reviewing the company's progress. His experience in a hyperlocal vertical at a Sequoia-backed start-up was immensely helpful. He formally joined Excess2Sell in 2018 and lent hand in designing and developing the mobile app. It is Rajan, Amit, and Anant's cumulative cross-functional experience in product management, business management, brand building, and marketing, that has been pivotal to the success Excess2Sell is enjoying today.
Ashwini
Excess2Sell - Startup Story | How It Began?
The idea behind Excess2Sell was conceived sometime at the end of 2015. It was to find a way and means to deal with inventory that remained unsold. Prior to founding the company, Rajan Sharma faced a force majeure situation in his last professional stint. It had to do with the product inventory at distribution points which in turn affected an entire location. The ageing inventory of stockists led to blocked capital and a slow turnaround time for sales. This was a problem faced by almost every stockist and wholesaler in the country and it was an opportunity that called for remediation.
Excess2Sell was then conceived as a solution to overcome this situation. It was launched four years ago to tackle the issue that plagued the large Indian B2B segment: unsold and unwanted inventory.
Post ideation and finalizing the business model, Rajan Sharma took almost 6 months to develop the back-end and front-end before the first transaction took place at the end of August, 2016. The team had been clear from day one about the need to build up its business through an organic approach. Excess2Sell focused on digital marketing and electronic marketing to reach out to its B2B database. This helped the venture kick start and scale up its transactions.
Excess2Sell - Vision And Mission
Excess2Sell wants to assist retailers and wholesalers across trade networks and channels in optimizing costs through excess inventory management using its portal, and provide an extensive store for buyers across India.
The venture's long-term vision is to provide a proven universal solution to businesses for liquidating unsold inventories and become a leader in the segment with its current business model.
The core belief and ethos, which drives us is hard work, honesty and ethics.
Devashish Shrivastava
Excess2Sell - Name And Logo
The team wanted a name that would instantly signify its service and Excess2Sell seemed just right for accomplishing the objective. It firmly believed that this concept would be an enabler for the current ecosystem of vendors, distributors and dealers to re-distribute inventories from locations where they would languish, to locations where there would flourish; hence the tagline, 'excess inventory marketplace'.
Excess2Sell - Business Model And Revenue Model
The Excess2Sell platform follows a ‘zero’ inventory model where sellers upload the details of their liquidation inventory online. The portal comprises registered buyers and sellers. Once the buyer confirms the off-take and makes the payment, the inventory procurement and dispatch are done. The platform generates revenue from the sales activity of goods. Every category has a pre-determined percentage of fees that is deducted as a procurement price from sellers. The average transaction is in the range of INR 5 to 8 lacs.
The revenue stream is being explored further with the launch of a E2S Premium Membership in 2o18 where a dedicated buyer-seller ecosystem is being built on a subscription model.
Rishabh Rathi
Excess2Sell - Funding And Investors
Excess2Sell has raised more than $1 Million in funding to date. Below are Excess2Sell funding details -
| Date | Stage | Amount | Investors |
|---|---|---|---|
| May 2018 | Angel | undisclosed | Aashish Pitale & Harinder Singh |
| March 2020 | Angel | $1 Million | Private Equity investor Gautham Madhavan |
Rishabh Rathi
Excess2Sell - Startup Challenges
In the initial phase, the most challenging aspect was to ensure that buyers paid in advance for their orders. It took immense goodwill in addition to the credibility of the founders and the team to gain their trust and confidence. Today, word-of-mouth publicity is the biggest factor behind Excess2Sell consistently scaling up its operations. With over INR 150 crore worth of liquidations, Excess2Sell has proved the sustainability of its business model.
Excess2Sell - Competitors
Of late, many B2B companies have begun building their own platforms to tap into this relatively less explored market of excess inventory liquidation which is expected to reach $700 billion by 2020. However, Excess2Sell has taken the lead as India’s largest pure B2B online marketplace for liquidating ageing and unsold assets.
Excess2Sell has distinguished itself by creating the only tech-enabled enterprise that connects the B2B overstock market across India. It has the largest network of dealers and distributors on its online platform which are referred to as buyers and sellers.
When Excess2Sell was conceived, the market was fragmented and largely catered to the unorganized segment. At that time, deals occurred one-on-one between sellers and buyers. As of today, there is no other universal platform-specific to ‘excess inventory liquidation’ like Excess2Sell. As mentioned earlier, one of the biggest advantages Excess2Sell offers to both sellers and buyers is confidentiality, anonymity, and neutrality in transactions.
Himaya Presthitha
Excess2Sell - User Acquisition
The fact that buyers and sellers transact Confidentially, Anonymously and Neutrally (CAN) has helped the platform grow from strength to strength. It is extremely critical in the company's LoB( Line of Business) that the seller gets to offload their products anonymously and without disclosing the reason for their liquidating them. Liquidating products in the B2B space is often misconstrued as something being wrong with the product or with the demand for it, which is not at all true. It is mostly that the market, which may be in a specific geographic location and has not warmed up to it which is leading to blocking up the vendor’s operating capital. Excess2sell recognizes this pain point of the seller and hence CAN is a big plus for the user base. Excess2sell's repeat buyer - seller rate is close to 70 per cent.
Rishabh Rathi
Excess2Sell - Growth and Revenue
In the last three years, excess2sell.com has liquidated over INR 150 crore worth of inventory. In 2018 alone, the company mobilized excess inventory valued at over INR 85 crores.
The platform has a business reach of more than 200,000 B2B partners across India and the registered partner base is around 30,000 today. An average of 3+ transactions occur every day with 3,600 active buyers and sellers. Excess2Sell currently operates from Navi Mumbai and is present in New Delhi and Pune as well.
India’s B2B business base is 50 million strong and while it is a direct supplier of goods to the country’s 14 million retailer base, its reach remains stunted. E-tailing in India grew rapidly to become a $525 billion industry because it enjoys the advantage of being in the B2C marketplace. But the B2B e-commerce market is yet to realize its full potential and what it needs right now is a solutions based tech intervention. By offering a solution to address the pain points of the otherwise tech reclusive sector, Excess2Sell has given players in the B2B segment a reason and an incentive to come aboard.
Excess2Sell has already achieved a turnover of Rs 100 crore in the three quarters ending December 31st, 2019. Starting from a revenue base of Rs 41.58 lakhs in 2016-17, it jumped an astonishing 3000% in 2017-18 to Rs 12.9 crores. The revenue for 2018-19 clocked at Rs.70 crores, which was again over 500% jump from the previous year.
Speaking on the achievement made by the startup, which is just 3 years old, excess2sell founder and CEO Rajan Sharma said, “We have touched the magic figure of Rs.100 crore in our third year of operations, with one quarter still to go. Also with the 24x7 NEFT transaction facility made available from December 12th last year, we expect the next quarter growth to be significantly higher than the previous three quarters. We are increasingly upbeat about our performance this year, with the economy seeing signs of a revival from the slowdown. Though its early days to talk on the impact of NEFT transactions being made available 24x7, from whatever little data we have post-December 12th, it seems to have made a small positive impact on our sales figures. This has to be studied over the next quarter to actually assess the impact of the move on the industry.”
Excess2Sell is still working towards achieving even greater revenues in the upcoming years and has a revenue target set at Rs 2,000 crore ($267 million) by 2023.
Shubham Kumar
Excess2Sell - Future Plans
The majority of buyers and sellers are reputed manufacturers, vendors, wholesalers, and dealers. Vendors of companies like Dell, HP, D-LINK, Intel, Acer, Apple, Motorola, and Samsung are among the authorized sellers on the Excess2Sell platform.
Excess2Sell successfully closed FY19 with liquidation deals worth INR 70 crores and is looking to close FY20 at INR 200 crores with projected successful transactions worth INR 900 crores for FY21. Excess2Sell is also looking forward to increasing the number of its registered partners by 100% to reach 50,000.
Our estimate of the branded packaged goods market size is $500 billion in the $2.8 trillion Indian economy. Even if we address only around half of this market and considering that we take 20 per cent of this as slow moving, that still is a $50 billion opportunity and the numbers are expected to double in six years from now.
FAQs
What is Excess2Sell?
Excess2sell.com is a comprehensive B2B platform marketplace for excess inventory management across verticals such as computer hardware and software, telecom, security, home appliances, apparel, lighting, kitchen items, etc.
Who are the founders of Excess2Sell?
Rajan Sharma, Anant Chaturvedi, and Navinder Chauhan are the founders of Excess2Sell.
How much is Excess2Sell revenue?
Excess2Sell posted revenue of Rs 100 crore in the 3rd quarter of FY 2019-20. It has a target of achieving Rs 2,000 crore ($267 million) in revenues by 2023.
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