Amazon is strengthening Its operations in the local Kirana space. Amazon Technologies, the tech giant, has acquired Perpule to utilize its Ultra point of sale(UltraPoS) cloud-based product to automate the Kirana Stores businesses.
Details about the Current Acquisition of Perpule by Amazon
The recent acquisition by Amazon has a direct impact on the Kirana stores. With the help of Perpule technological product, Amazon is trying to intimate the automation process at the lower level of retail. The company paid Rs 107.6 crore all in cash to Perpule for closing the deal, as per the regulatory filing report.
As part of the deal, Amazon will pay extra remuneration to Perpule employee. Perpule is a Banglore based startup. Overall, Amazon will invest Rs 150 crore to acquire Perpule including the remuneration amount.
Amazon will provide UtraPoS technology to its Kirana partners so that they will be able to automate the buying-selling process. It is one more step towards the digitization of local Kirana stores of India.
Perpule investors will exit the firm with a 4x to 5x return. Perpule was founded in 2017 and has raised a total of $4.7 million from the investors. Investors list include Prime Venture Partners, Kalaari Capital, Venture Highway and Taxiforsure co-founder Raghunandan G.
All employees of Perpule will join Amazon and will keep working on the UPoS project. Amazon will also hire the co-founders Abhinav Pathak, Saketh BSV and Yogesh Ghaturle of Perpule.
UltraPoS is an advanced technology-oriented product of Perpule to automate the local stores. It has major functionalities like automation of inventory, online purchasing, digital customer billings.
How Perpule will Help Amazon and Offline Stores?
Amazon Spokesperson said:
“Perpule has built an innovative cloud-based POS offering that enables offline stores in India to better manage their inventory, checkout process, and overall customer experience. We are excited to have the Perpule team join us to focus on providing growth opportunities for businesses of all sizes in India while raising the bar of the shopping experience for Indian customers.”
Perpule co-founder Abhinav Pathak did not say anything related to the acquisition deal.
In 2020, Amazon started a new project called ‘Smart Store’. Its main objective is to help offline retailers to start their store on the Amazon platform. Currently, Amazon has a high network of 50000 offline retailers and the company is planning to make it double by the end of 2021.
Perpule has helped a total of 10000 stores with its UltraPoS product. These stores are located in India, South East Asia, and UAE. It provides different services like analytics, customer purchase patterns, customer demographics to these stores. Approximately 60% of UltraPoS users are international clients including Matahari Retail in Indonesia and Landmark Group in Malaysia.
In 2020, Perpule launched a new product called ‘StoreSe’ that helps offline stores to make the ordering solution online. Currently, it is not sure whether Perpule operations will remain separate or Amazon will mix it with its services.
One person without revealing the identity said:
“Currently the focus seems to be on the integration of Perpule’s POS product. Whether customers will move to the new integrated product platform is a call that Amazon may take eventually. The focus of the acquisition will be on Indian retailers for now.”
India’s Kirana-tech ecosystem has seen heightened competition from new-age players including Khatabook, OkCredit and Dukaan.