How This Web Development Startup Became A Million Dollar Revenue Startup During The Pandemic
However, 26-year-old Shashwat Swaroop says Your story as rapidly changing technology and market volatility have made it difficult for companies to stay afloat. This is where the Bengaluru-based startupintervenes.
The commerce-focused end-to-end tech development startup works with 500 companies, including, , Royals of Rajasthan, , , , Melio, MTR Foods, Quirksmith, Sri Sri Tattva, and grew 100 percent last year.
While pursuing engineering studies at the New Horizon College of Engineering, Bengaluru, Shashwat, along with friends of the university who became founders Prabhat Prasad and Saurav K, decided to embark on entrepreneurship. They started an e-commerce business that allowed people to rent books online and took it to around 150-200 orders per day.
“But luckily the business faced some startup issues with scalability and other adverse factors that caused us to make the difficult decision to shut it down, within a year,” he said. Shashwat said. Co-founder and CEO, Marmeto.
After college, while Shashwat played a few e-commerce consultant roles, Saurav joined retail intelligence firm Mobisy and began building his corporate career. In 2017, they logged in again and decided to start something for themselves.
They used a total of Rs 14,000, roped up with a designer and rented two seats in a co-working space in Bangalore. “At this point, no one was getting a salary, we had no main pipeline, we had no experience in the service industry and no clarity on the road ahead. There was one thing we were sure about though: we wanted to make noise and make a difference in the world of e-commerce, ”Shashwat said.
So they started Marmeto as a web development company, which now helps e-commerce brands develop technology, mostly on Shopify.
“We believe in simplifying commerce. We build websites, apps and business solutions on Shopify, ”said 26-year-old co-founder Saurav. He also adds that the company is no longer partnering up as a web development company, but rather as a business enabler.
At the start of the startup, she offered a range of services – from web design and website development, to content creation services for social media and “whatever else happened to us”, Shashwat explains. In six months, the trio saw a major gap between supply and demand.
On the one hand, the major e-commerce players offering website building services like Shopify, Wix, Woo Commerce were entering the Indian market, on the other hand, the Indian market was facing its own set of issues such as functionality, logistics, prices and response times. The e-commerce market has been on the rise since 2015, but the inertia of online payments and applications has resulted in slower growth and market penetration, according to the founders of Marmeto.
Eventually, the trio decided to focus primarily on website development on Shopify. “We’ve focused our attention on creating unique solutions on Shopify and becoming an end-to-end Shopify development agency,” said Prabhat, 25.
“We have realized that customers do not fully understand the target demographics of the website, and those who understand it do not understand the intricacies of the technology behind the functionality of the website. In addition, each project lacked a clear understanding of the e-commerce user experience, and the aesthetic emphasis far outweighed the functional performance of the website, ”he adds.
Prabhat says that when the team decided to focus on Shopify two years ago, they built many native-language solutions for the “LIQUID” platform in less than a year. “We gained expertise on a coding language that many were unaware of. It put us on the map of the e-commerce industry in India and helped us land our first big ones like Soulflower, Qtrove and Headphonezone, ”adds Prabhat.
Market and competition
India’s e-commerce or e-commerce market grew 25% in fiscal year 2020-21 to reach $ 38 billion, despite the retail market shrinking 5% due to the impact of the coronavirus, according to a report by Bain & Company and Flipkart. Since the COVID-19 pandemic is still ongoing, with some return to stability, the report also notes that the online retail market is expected to reach $ 120 billion to $ 140 billion by fiscal year 26. , at about 25 to 30% per year.
For Marmeto, this is an opportunity to tap into unprecedented demand. “Ours is a very big market for e-commerce and is sufficient to sustain itself,” Saurav says.
The startup competes with any web development company that helps build e-commerce businesses, but Shashwat says Marmeto stands out with their extra efforts in competitive pricing in each of their projects.
“We have forged a unique position in the market by not offering the conventional, but by offering something better,” says Saurav. According to him, most web development agencies offer AMC (at a minimum cost) as an annual fee for website maintenance, which Marmeto doesn’t take from its clients because the startup claims it doesn’t create websites that crash.
“We understand the structure of Shopify so well that we are building all kinds of technology solutions around it. We work with logistics partners such as Delhivery, Shiprocket and DHL; payment partners like CRED, Paypal, Razorpay and PayU; and VAS (Value Added Service) partners like Qwikcilver and Ticket Xpress to build Shopify enterprise solutions and applications, ”says Saurav. He says Marmeto covers the entire spectrum of technology activation services when it comes to e-commerce.
But the founders say what really sets Marmeto apart is its speed or response time. “From catering to cold response in project deliveries, we deliver lead times unmatched in the industry today,” adds Prabhat.
Company turnover and growth
Marmeto has two revenue models – one-time project fees and the second is a long-term holdback model.
“These two respond to two different stages of growth. The former is typically used by SMBs looking to launch a new website or website redesign or by established businesses that need a specific custom solution. The latter is used by companies or funded startups that revolve heavily in marketing, resulting in constant updates and changes to websites, ”says Shashwat.
He adds that over the past two years he has developed his expertise on Shopify and expanded his operations, and claims that Marmeto has doubled his revenue and crossed the $ 1 million mark in revenue over the past two years. exercise 21. He says the company has worked with a plethora of brands ranging from healthcare and beauty wear, electronics, food and beverage. The company also has global clients such as Mordilliac Florists and Shyn.
The CEO adds that the biggest accomplishments of the company have been to grow the team and go 100% remote overnight while working tirelessly on more than 50 successful websites throughout the three months of lockdown in 2020 and serving customers first. The founder boasts that the growth of the company over the past four years has been entirely organic and largely referral-based.
Funding and plans
The company started with seed capital of Rs 14,000, and after that, its growth fueled operations. Shashwat says Marmeto plans to scale up operations in and around e-commerce aggressively over the next 12 to 18 months. He adds that the company is now targeting growth of 150 to 200% for this fiscal year.
While the company wants to focus on its existing service, it is also considering venturing into other e-commerce services, such as a loyalty program for its customers, which will reduce turnaround times even further.
“Finally, we are also looking forward to launching a Marmeto Accelerator platform that would allow us to respond to and serve certain startups and small organized organizations while providing them with the Marmeto community experience for e-commerce,” Shashwat said.