Hitendra Chaturvedi’s GreenDust.com to cross $100 Million in Revenue at the End of this Financial Year
Delhi-based Reverse Logistics Company Pvt Ltd (RLC) a reverse supply chain firm that also runs an e-commerce site called GreenDust.com which sells refurbished goods claims to be moving towards profitability at a break-neck speed. “We will cross $100 million in revenues at the end of this financial year and become the first e-commerce company to turn profitable,” said Hitendra Chaturvedi, founder and CEO.
Founded by Chaturvedi in 2008, RLC has adopted a multi-layer and multi-channel distribution model. It collects second-hand, rejected or returned goods from OEMs (original equipment manufacturers), retailers and e-tailers. Products are either purchased from these vendors or procured on a consignment basis and later sold by GreenDust, and the profits are shared on those goods.
“Currently, the majority of our goods are purchased from vendors. But we opt for a consignment-based model for products that lose value very fast,” shared Chaturvedi.
Once these products are collected, the process of refurbishment starts. The goods are meticulously checked and refurbished to be sold via its portal GreenDust.com and through its network of 170-plus franchise stores across India, and also to resellers. During the whole process, the entire backend IT and supply chain are managed by RLC with the help of a 400-member pan-India team.
Sharing the growth metrics of the company, Chaturvedi said that the online B2C business GreenDust.com contributes about 25-30 per cent of the revenues and it is doing around 20,000 transactions on a monthly basis (transactions amounted to 18,000 or so a year ago) with an average order value of around Rs 5,000. As for the remaining 70 per cent of the revenues, resellers and the franchise stores contribute 35 per cent each.
In terms of capital, the company is in a very comfortable position right now, the founder said. Last June, RLC raised a Series B round of $40 million from Vertex Venture Holdings Ltd and existing investors Kleiner Perkins Caufield Byers (KPCB) and Sherpalo Ventures. “But we don’t believe in spending VC money that much. We have generated a lot of investor interest, but are not actively looking for funds right now. However, should a good opportunity come our way, we wouldn’t say no,” said Chaturvedi.
The firm is keen to expand into other emerging markets where refurbished goods will have a significant scope. “We want to take it to other markets like Thailand, Bangladesh, the Philippines, Sri Lanka, etc. It’s an imitable and adaptable model, which can be scaled in such territories,” said Chaturvedi.
The company is also looking at inorganic expansion for which it will require capital. And the third area will be category expansion. “We want to enter all possible categories for this business. For instance, apparels and medical equipment could be our next foray,” added Chaturvedi. And finally, he would also like to invest more in IT which is the backbone of the company.