Qcom platform LoveLocal to launch 30-minute delivery, expand outside Mumbai

Hyperlocal quick commerce (qcom) platform LoveLocal is set to rollout 30-minute delivery services as it looks to step up its qcom play and expand beyond its home base of Mumbai. The move marks the company’s push to compete in the country's growing instant delivery market while strengthening its hyperlocal retailer network.

 

LoveLocal, which focuses on the fresh edibles category, acts as a bridge between local retailers and customers. Currently, it offers two options: Instant ordering (with a two-hour delivery time) and scheduled delivery. It plans to add express delivery as another option.

 

Akanksha Hazari, founder and chief executive officer (CEO) of the platform, said, "We will have an express delivery option by the end of the quarter. As for expansion, the focus is to essentially cover 100 per cent of Mumbai and then grow our brand and become a household name in Mumbai. Next year, we want to start launching in new cities and would look at Pune as our next city because it's also adjacent to Mumbai, with a lot of similar dynamics."

 

 

In Mumbai, the platform has onboarded 650 retailers to date and plans to get to nearly 1,000 retailers over the next 18 months. The platform currently has one lakh monthly transacting users and plans to grow it tenfold. The customer count is growing at 25-30 per cent month-on-month, Hazari said.

 

The qcom company has two dominant categories: Meat and fish in one basket and fruits and vegetables in the other basket. The company has also introduced the option of grocery shopping for its users recently.

 

"In fruits and vegetables and meats and fish, the margins are very healthy, around 20-40 per cent. In the grocery segment, margins vary significantly because it has only an 8-12 per cent margin. So, in terms of our business, two things are working in our favour. One is our high-margin categories, and the second is that we are a marketplace, so we are asset-light. We have achieved the lowest cost per order in the industry, which is ₹4.2," Hazari said.

 

The platform only charges a fixed platform fee of ₹15 on the total value of products, with no additional charges, she said.

 

"Even with the ₹15 platform fee, we are still making a very large margin. Currently, I would say Love Local has profitable unit economics," Hazari said.

 

LoveLocal has so far raised nearly $30 million across rounds, including an $8 million Series A and an $18 million pre-Series B, led by Vulcan Capital in October 2021. A few key investors include AC Ventures, Henkel X, Candy Ventures, Gojek cofounders, IDG Ventures India (Chiratae Fund), and Blume Ventures.