Arvind Mederta, Managing Director & Chief Executive Officer, Metro Cash & Carry India Pvt. Ltd. | Photo credit: Special Arrangements
‘Funding Winter’ is good news for millions. The rays Against the background of many e-commerce platforms and large retail chains in the country that are finding it difficult to meet their profitability and sustainability targets, Arvind Mederatta, MD and CEO, Metro Cash & Carry said.
Mr Medreta said Hindu“Many e-commerce players and large-scale retail firms, backed by private equity and venture capital firms, are currently under severe pressure as they are unable to achieve sustainability and profitability.”
Many of these players were struggling, he said, and were finding it difficult to cut back on operations, lay off people and pay salaries.
“Some of these players have been looking for the next round of funding for some time now, but it may not be anytime soon,” he pointed out.
According to Mr Medretta, the big players who did not have a proper business model could not survive and sustain beyond a point.
“Everybody wants to see profit at the end of the day and there is no substitute for profit and sustainability,” he explained.
Many e-com startups were betting heavily on technology and burning cash. But if you don’t know what to buy, what to sell and at what price, you don’t know the business,” he warned.
In such a market environment The rays stood in a position to support a sustainable model as they faced less competitive pressure in terms of pricing etc. “E-com players and retail brands are paying too much to acquire customers. In the process, they have committed corruption, buying goods for ₹ 100 and selling them for ₹ 80. Hopefully, these companies will be more Will be careful,” he expected.
He further said that The rays Played a key role in ensuring food availability throughout the pandemic and their share of the country’s food and beverage market, which is ₹40 lakh crore, has now increased to 86%.
Most importantly, when The rays While food and beverages led the way in sales, other players primarily sold fashion products, smart phones and apparel, he pointed out.