Thursday, April 12, 2012

AaramShop Attempts To Bring Kirana Stores Online; Monetization: Advertising

AaramShop, a Delhi based start-up, is looking to monetize online grocery shopping in a rather unusual manner: instead of retailing groceries themselves, they’re tying up with mom-and-pop (kirana) stores and taking orders for them for free, while charging brands for promoting their wares to those online. 

The company claims to have tied up with 1600 stores in 24 cities within 7 months of operation, and is averaging 100 additional stores per week. Aaramshop has been founded by Vijay Singh, who had previously founded of Sercon, a below-the-line marketing services firm which was merged in 2008 with 141 Worldwide, a WPP owned agency, to form 141Sercon. Singh led 141Sercon as its CEO and Managing Director, before exiting in April 2011. 

Speaking with MediaNama, Singh explained the rationale behind this decision to choose advertising as a business model:

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