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Zomato HyperpureBusiness Writeup

Hyperpure's business model provided a lifeline for restaurants during the pandemic by offering one-stop procurement with low prices, quality assurance, and flexible payment terms. However, to maintain momentum as supply chains recover: Firstly, Hyperpure should pursue financing partnerships to offer customers lower interest loans without straining its own capital. Secondly, it needs to strengthen sourcing by engaging more farm cooperatives for bulk orders and cost reductions. Thirdly, expanding regional warehouses through outsourcing can boost serving frequencies and order volumes by reducing last-mile costs.

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Anubhav Agrawal
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282 views1 page

Zomato HyperpureBusiness Writeup

Hyperpure's business model provided a lifeline for restaurants during the pandemic by offering one-stop procurement with low prices, quality assurance, and flexible payment terms. However, to maintain momentum as supply chains recover: Firstly, Hyperpure should pursue financing partnerships to offer customers lower interest loans without straining its own capital. Secondly, it needs to strengthen sourcing by engaging more farm cooperatives for bulk orders and cost reductions. Thirdly, expanding regional warehouses through outsourcing can boost serving frequencies and order volumes by reducing last-mile costs.

Uploaded by

Anubhav Agrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Question

The Food corporation of India (FCI) has organised a discussion on food business. The restaurants have been
one of the worst-hit by the pandemic globally. While many eateries had to shut down during the prolonged
lockdown, even the survivors are finding it difficult to get back on their feet. Their vendors are not ready to
supply raw materials without advance payments. For an industry that largely works on suppliers’ credit, this is
a major constraint. You are called to express your ``` on Zomato's Hyperpure business and if it can leverage this
to build on post pandemic bulk orders.

Make a 2-minute video. Share two tickers of not more than 15 words each that will run along your video: Ex.
"HyperPure business will need to build stronger inroads into the source to bring down the overall cost of
materials, says Analyst”.

Answer

A major impact of the pandemic has also been faced by the Hotel and Restaurant Industry. Business Models like
Zomato’s Hyperpure came as a knight in the shining armour for the eateries through its promise of one-stop-
shop convenience, low price, assured quality, doorstep delivery and credit terms offered along with flexible
modes of payment.

But as the economy revives and old supply chains are being resurrected, Hyperpure needs make efforts to
continue the momentum it gained during the pandemic.

Firstly, utilizing its brand, Zomato can provide channel financing to its customer through tie-ups with major
banks. This way, customers would be able to receive financing options with lower rates of interest and no
pressure is created on Zomato’s working capital. Other tie-ups with credit facilitators such as LazyPay and
Incred can also help in offering funding options.
Secondly, it needs to further streamline its procurement sources by promoting and engaging more with the Farm
Producer Organisations (FPO). This will help Hyperpure not only to gain more bargaining power for bulk orders
but also reduce its insourcing costs.

Thirdly, Hyperpure should focus on its logistics capabilities by expanding on its reach through more territorial
warehouses, possibly through an outsourcing model. This will help to reduce the last mile costs and increase the
serving frequencies thereby increasing the no. of orders and getting more eateries onboard with some additional
advertisement and sales promotion to scale demand

On speaking to some eatery owners, the problem of handling the excess quantity ordered or different quality of
goods received was one of the barriers for onboarding into the platform. If the facility to give refunds, credits or
replace the products is offered, then this could help Hyperpure overcome this barrier.

Lastly, it should look to enter into long-term contracts with bigger hotel chains to get bigger share of the pie by
disrupting their existing supplier contracts through extensive value proposition that Hyperpure can offer.

If the company can champion this B2B side of the business, maybe one day it can think to enter the B2C side
with no substantial additional investment. This will help Hyperpure to generate demand in large volumes which
it can leverage while sourcing for bulk orders.

Hyperpure should sell its bundled value proposition by leveraging its restaurant network to scale demand

Hyperpure should aim to enter long-term agreements with large hotel chains by offering comparable rates

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