UAE’s newest B2B e-commerce platform, DXBUY recorded over 50% month-on-month revenue increase during March-April 2020, while still in the beta phase. The start-up is dedicated to support small & medium enterprises (SMEs) in retail, F&B as well as unorganised trade. Downloaded by more than 2000 verified businesses during the beta phase, DXBUY app successfully fulfilled more than 12,000 orders in the first five months.
DXBUY has since partnered with multiple SMEs – including groceries, mini-marts, restaurants, cafeterias as well as few laundries, hardware shops, cleaning supply and catering companies. The company helps to fill the gaps in the supply chain and provides a wide range of products by having multiple vendors and brands on a single platform. Buyers are assured of getting cost-effective, timely deliveries and could further benefit by reducing their inventories to save on real estate space.
“Even in this day of technological advancement, the majority of purchase decisions are impulsive. Our application acts as a convenient marketplace and comparison tool for businesses to make rational decisions, while providing visibility on buying patterns to both consumers and vendors,” explains Adnan Zubairi, co-founder & CEO, DXBUY.
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Why did you choose to launch the DXBUY platform amidst COVID-19?
Zubairi: We saw our revenue jump more than 50% month-on-month during March-April 2020, while we were still in the beta phase. There could not be a better time to launch our platform given the sudden rise and interest in e-commerce trade overall. Due to the COVID-19 pandemic, businesses have witnessed extraordinary challenging times, disruption in supply chains, changes in customer behaviour, lockdowns and much more. At this time, when the government directive is to stay home and maintain social distancing, business buyers are finding comfort and convenience in making their purchases online, with an assurance of timely deliveries. The DXBUY app was launched with an aim to provide SMEs in retail, FMCG and F&B with a sleek app, extensive product range and dynamic pricing to simplify the buying process.
Is DXBUY self-funded?
Zubairi: Yes, the company is operating as a bootstrapped start-up. The initial idea was to establish a proof of concept with some noteworthy traction and then go fundraising externally. With over 12,000 orders processed through the app already, now is the time for us to scale. We plan to explore our options and strategically fund-raise by end of this year.
How is the platform useful for retail SMEs and F&Bs?
Zubairi: SMEs no longer have to rely on multiple vendors for their everyday procurement needs. The platform leverages data-driven technology and lists a diverse product portfolio from multiple vendors and leading brands. With a few clicks on their mobile phone, they can have access to their industry-specific related products, which also helps them streamline their operations with greater visibility and insights about their product categories and buying patterns.
What is the platform’s revenue generation model?
Zubairi: At the moment, our revenue generation model includes adding a mark-up on the bulk purchase prices we receive and list them on the app for several products. As the vendors save on the cost of sales and logistics, they pass that margin to us. Hence, we are able to maintain a viable price point for customers, which is very crucial in a B2B business. Our margins vary for different products, depending on the complexity of handling; swift movement; and logistics terms, including warehousing, first and last-mile; among others. In addition, we don’t charge any registration, listing or promotion fees to the vendors since the platform is new. In the future, once there is a significant momentum, we plan to introduce a cost to register and list products.
Please explain the platform’s scalability.
Zubairi: Being an entrepreneur and having witnessed the market trends in the UAE for over 12 years, DXBUY was designed keeping scalability in mind from day one. The application is built with a user-first approach; that’s why we have decided to keep DXBUY a mobile-exclusive ordering platform, considering the mobile internet penetration rate is the highest in the UAE. We have an in-house fleet of commercial delivery vehicles and a centrally located warehouse in Dubai to ensure timely deliveries. The first and last-mile deliveries are covered using cutting-edge logistics management solution with artificial intelligence (AI) and machine learning embedded into the software. With the existing infrastructure, we are equipped to handle up to a 5X surge in orders. We are continuously evolving and building our IT and logistics infrastructure to meet the domestic sector demands.