Hidden Startup Secrets of Doodhwala | Doodhwala Business Model

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Doodhwala, a startup established in 2015, failed despite having all the essentials for success. The product was of good quality. | Doodhwala Business
 

Company Details

City: Bangalore
Founders: Ebrahim Akbari & Aakash Agarwal
Founded: 2015
Industries: AgTech, E-Commerce, Food Delivery, Organic, Organic Food
Number of employees: 251-500
Revenue: $7.8M
Funding amount: $2,400,000
Official Website: doodhwala.com

Doodhwala Startup Story

Doodhwala, a startup established in 2015, failed despite having all the essentials for success. The product was of good quality, they had a market niche, the service was excellent, and the team was competent. Despite this, the two visionary co-founders still experienced failure.

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Therefore, How did this happen?

Like many other companies, Doodhwala was created to solve a problem. 

It was founded by Aakash Agarwal and Ebrahim Akbari, who saw the need for a more efficient way to deliver milk. After conducting market research, speaking with milk distributors, and identifying market gaps, they created an app to meet these needs. 

The beta version of the app was well received by users, and this was the beginning of Doodhwala.

Credit: digitalOdd

They conducted a study and found that while customers were willing to pay for premium milk, it was important for the milk to be 100% pure. Learn More About Hidden Startup Secrets Of 1mg

They started in Bangalore and surrounding areas with an initial 30,000 liters of milk per day. As the company grew, they expanded their offerings to include new items such as camel and goat milk. 

They opened branches in Pune and Hyderabad, and continued to add more food and fruit products to their menu. 

Their early morning milk deliveries were particularly popular among customers. From 2015 to 2018, Doodhwala experienced remarkable growth and received 2.4 million dollars in investment, leading many to believe that the company was destined for success. 

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Doodhwala Founders – Ebrahim Akbari and Aakash Agarwal 

However, something unexpected happened later on.

The company operated on the principle of purchasing milk from suppliers and packaging it for delivery to customers. 

However, due to the sudden closure of the startup, merchants lost their money, causing major problems. Some of the large milk vendors that Doodhwala worked with filed a FIR against the company, following a similar complaint from one of their team members. 

Other businesses they worked with also had issues, and customers experienced similar problems.

Doodhwala Startup had a sharp fall as a result of this.

Let’s emphasize the circumstances that led to the issue. One of the main causes was excessive spending without proper record-keeping. 

Vendors and customers reported that the company was operating on a narrow profit margin, resulting in difficulties in meeting their costs. 

They incurred high acquisition costs per customer, and the cashback and discount offerings were inconsistent, leading to significant problems that contributed to the collapse of the startup. 

With the emergence of well-funded competitors like Big Basket and Grofers, offering a wider range of products and more incentives, it became difficult for Doodhwala to compete and remain relevant. Learn More BigBasket Business Model

This ultimately played a role in their downfall.

They were counting on securing funding, but when it didn’t materialize, it became a major issue for the company, which heavily relied on financing.

Possible actions they could have taken:

  • They could have kept better track of their finances or sought advice from a strategist or someone with financial expertise.
  • They could have slightly increased the price of their product, as they were offering high-quality and pure milk.
  • They could have adapted to the competition by offering additional products and services, such as groceries and fruits.
  • If the financial firms had monitored the business and provided guidance on avoiding overspending, it may have prevented the significant problems and decline of the startup.

Doodhwala Logo And Tagline

The Doodhwala logo is a stylized representation of a milk bottle and the tagline is “India’s largest fresh milk delivery app”.

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Doodhwala Business & Revenue Model

Doodhwala is an online platform that provides fresh milk delivery services to its customers. 

It operates on a subscription-based model, where customers can choose to receive daily or weekly deliveries of fresh milk, as per their convenience. 

The company partners with local dairy farmers to source the milk and then processes and delivers it to customers’ doorstep. 

Customers can also place additional orders for dairy products such as curd, butter, and ghee through the platform. 

The company’s revenue is generated through the sale of these products and delivery charges. Read More GoMechanic Business Model

Doodhwala Competitors

Doodhwala has several competitors in the online milk delivery market, some of which include:

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  1. DailyNinjaDailyNinja is an Indian online grocery delivery service that provides daily essentials such as milk, bread, eggs, and other items to customers’ doorsteps. The company’s revenue is generated through the sale of its products and delivery charges.
  2. SuprDailySuprDaily is an Indian online delivery service that provides daily essentials such as milk, bread, eggs, and other items to customers’ doorsteps. It operates on a subscription-based model, allowing customers to receive daily deliveries of fresh milk and other products. The company sources its products from local suppliers and works with them to ensure the quality of its offerings. 
  3. MilkbasketMilkbasket is an Indian online grocery delivery service that provides daily essentials such as milk, bread, eggs, and other items to customers’ doorsteps. It operates on a subscription-based model, allowing customers to receive daily deliveries of fresh milk and other products. 
  4. MY MilkmanMY Milkman is an Indian online milk delivery service that provides fresh milk and dairy products to customers’ doorsteps.
  5. Dodla DairyDodla Dairy is an Indian dairy company that produces and supplies a range of dairy products including milk, curd, butter, and ghee. The company operates several processing plants across India and has a distribution network that covers several states.

These companies offer similar services as Doodhwala, delivering fresh milk and dairy products to customers’ homes on a subscription basis. 

The competition in this market is mainly based on factors such as price, product quality, delivery reliability, and customer service.

Why Doodhwala failed?

Doodhwala was an Indian startup that provided a mobile app-based platform for customers to order fresh milk and other daily groceries for delivery to their doorstep. 

The company faced a number of challenges and ultimately failed for several reasons: 

  • Intense Competition: The market for online grocery and milk delivery in India is highly competitive, with many established players in the space. Doodhwala faced strong competition from other startups as well as larger, more established players. 
  • Poor Unit Economics: Doodhwala struggled to make its business model profitable. The company offered free delivery and did not charge a premium for its products, which put pressure on its margins.
  • Operational Challenges: Doodhwala faced operational challenges such as supply chain management and logistics, which resulted in delayed or missed deliveries. These issues eroded customer trust and contributed to churn. 
  • Lack of Funding: Doodhwala was not able to secure sufficient funding to sustain its operations. This made it difficult for the company to expand its operations and compete effectively with its rivals.

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