Nitya Sharma On Reinventing The Khata For Ecommerce

More details: See here

Simpl is a fintech startup that takes inspiration from traditional khatas to simplify the ecommerce experience of consumers, offering a one-tap checkout experience

As an ecommerce payment enabler, Simpl converts cash-on-deliveries into digital payments through one-tap selection and pay-later option

Out of the total retail consumer spending in India, only 7% happens on ecommerce, while 65% of that is on COD mode because of the trust gap

Nearly two decades later and despite the availability of multiple payment options, including UPI, many still prefer to pay for their online purchases when they arrive, even if it means shelling out an extra few bucks. 

An IIM-Ahmedabad study shows that over 65% of ecommerce transactions in India are CODs . It further highlights that the country's fast-paced ecommerce space, which is likely to surpass $400 Bn by 2030, has failed to reduce this high rate of COD orders.

So, why are we discussing it now — after more than a decade-long entry of ecommerce in India. Well, the answer to this is simple — this mode of payment has today become a pain point for smaller D2C businessmen, who are most vulnerable to cancellations, high return rates, and undelivered products. 

Not just this, CODs also increase operational costs and delay cash flow, making it difficult for newer brands to scale. 

Despite a sustained spike in digital payments, this trust gap could not be bridged. And, this is where Simpl found the sweet spot.