To bridge this gap, the government introduced the Open Network for Digital Commerce (ONDC), aiming to establish an all-inclusive ecosystem for e-commerce and foster deeper penetration across the country, encompassing sellers of all scales and types. However, significant hurdles remain the absence of efficient, interconnected, and affordable Point-of-Sales (POS) software for retail stores to partake in this revolution. Existing POS systems are predominantly offline, offer a subpar user experience, cater to large chains, and struggle to engage with customers. Furthermore, the current ONDC seller applications lack inventory management and POS functionalities and do not effectively address category-specific challenges and cataloging issues.

In order to cater these challenges, DailyBee positions itself as a reliable E-commerce partner, a technology platform that seamlessly integrates online and physical stores. DailyBee empowers small and medium-sized retail stores to easily receive orders from various ONDC buyer apps, manage payments conveniently, optimize and oversee product inventory, create and manage online stores, facilitate digital billing, and track credit through its digital ledger system. DailyBee's inventory management tool allows retail stores to share live inventory data with consumers, enhancing the customer experience, and monitor online orders within the same software. With DailyBee, syncing offline businesses with ONDC, becomes effortless. It caters to a wide range of store categories, including grocery, meat, fruits & vegetables, dairy & ice cream, pet supplies, children's products, fashion & footwear, mobile & electronics, sports equipment, and beauty & personal care.

Founded by the dynamic duo of Satya Avasarala and Snehith Budime, DailyBee aspires to empower small and medium-scale businesses to thrive in the digital commerce ecosystem. Satya, a BITS Pilani graduate with over six years of experience, has previously built products at Penny.co and Cypris.ai. Snehith, who has extensive retail experience and has led growth and strategy at Lenskart, was also a co-founder of IndiaBuys. Their profound understanding of the challenges and opportunities in the e-commerce industry has led them to design DailyBee as a reliable and innovative partner for sellers, offering a wide array of powerful tools and features to elevate their online businesses.

Market Opportunity -

Driven by increasing incomes, a burgeoning middle class, and rapid digitalization, India's e-commerce market is projected to reach $111 billion by 2024 and a staggering $350 billion by 2030. With the third-largest online shopper base globally, comprising 140 million e-retail shoppers in 2020, India's online retail market size could potentially soar to $325 billion by 2030, compared to $70 billion in 2022. This growth is predominantly attributed to the rapid expansion of e-commerce in tier-2 and tier-3 cities. Moreover, online retail penetration is expected to grow at an extraordinary rate, outpacing offline retail by 2.5 times over the next decade. The shift towards online sales is poised to overtake organized retail, with a strong emphasis on omnichannel retail strategies, where retailers seamlessly integrate their offline and online channels to offer consumers the best of both worlds. Integrating traditional Kirana stores into the broader retail ecosystem holds the potential to unlock new markets, expand product offerings, and fortify their business presence.

Investment Thesis -

The ONDC protocol is experiencing exponential growth and widespread adoption. While pre-existing players have a stronghold on value capture at the consumer level, there exists a blue ocean of opportunity at the seller end. The DailyBee team possesses the unique advantage of having been on the seller side, allowing them to develop a robust product for onboarding sellers onto ONDC. With their track record of execution and industry experience, 100X is confident that DailyBee will dominate the ONDC market from the seller's perspective, creating the equivalent of BharatPe for ONDC.

Conclusion -

The confluence of India's massive untapped e-commerce potential and the government's ONDC initiative presents a compelling opportunity. DailyBee, with its visionary founders and innovative solutions, stands as a bridge to empower millions of underserved sellers. As India's e-commerce landscape continues to evolve, DailyBee's strategic position, honed by the team's firsthand seller experience, positions it as a catalyst for ONDC's success. With a solid track record and unwavering commitment, DailyBee is poised to become the game-changer, revolutionizing the ONDC market from the seller's perspective and reshaping the future of Indian commerce.