This might be a little overblown:-
GoV per store per day (avg. Q4) = 9.2 lacs (mature stores would have upwards of 10 lacs)
Total GoV in a year = 33.58 crores
3% commission = 100 lacs
Salary + Rental (Annual) = 25 lacs + 25 lacs = 50 lacs ( i have assumed 6-7 employees… 20 seems too high)
Overheads = 15 lacs
Net income to franchise owner = 35 lacs
Some points to note:-
- average GoV per store per day likely to be significantly higher for mature markets of Delhi. At 15 lac per day (assumption) for mature stores, net income bumps upto 60 / 70 lacs
- GoV per store per day itself is trending up for the company
- At current net income levels, payback period for franchise owners is under 2 years (even if I include deposit which is refundable)
- As categories get added and Blinkit take rates go higher, some of it will percolate down to franchise owners, strengthening the model
Key Monitorable
- For q-com to succeed, GoV for MT / GT have to reduce in key urban markets - NCR, BLR & Mum - so keep an eye out for SSSG for Dmart, Reliance Retail, etc… the SSSG has to show stagnation or decline - same for Amazon GoV
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