Macfos Limited- A niche E-commerce Company

[rk1771]

Macfos Limited is an e-commerce company that sells a wide range of electronic items through its website and mobile application, Robu.in. The Company has an extensive portfolio of 12,000+ electronic items including robotic parts, drone parts, E-bike parts, IoT & Wireless items, 3d printers & parts, DIY learning kits, development boards, Raspberry Pi (Single board computers& Peripherals), sensors, motors, motor drivers, pumps, batteries, chargers, electronic modules & displays and various other mechanical and electronic components. Further the company is also developing its own brand and developing certain products related to drone technology.
The company came out with IPO in February 2023, at price of Rs. 102. The IPO was offer for sale, i.e. promoters sold part of their shares. The IPO was highly oversubscribed. The stock is presently being traded at Rs. 270, commanding a market capitalization of Rs. 239 crores. Presently the stocks are available at a lot size of 1200 in SME exchange.
Promoters look humble and honest. They said in the investor meet,
“And the backstory of Robu is that, we are four friends first. We are all friends from engineering college, I can say. And before Robu, we have a failed business of doing chapati machines, 2011 to 2013. And that is where like we did one year in the industry, 2010 to 2011. And then we have this background of failed business. I’m just rushing through because I feel not the right venue. And because of that failed business background, we value every rupee that we spend. And that is how we started from scratch in 2014.”
Financials:
Company had a good financials. The topline has gone up from 16 Crores to 80 Crores in 3 years with decent margin.

Valuation:

It is fundamentally am e-commerce platform. Most of such platforms are struggling to generate profit, this company is doing very well- both in terms of increasing the topline at good pace, with decent margins without infusion of external capital. Even in the IPO, the company did not issued any share. The management said,
“We didn’t raise any money or, thought of growing exponentially by not raising the money. So from day one, we are bootstrapped. And initially you don’t do like, for three, four years, we’re just like, I’ll say we were trying to make sure that our business fix and it does not fail. Because initially, initially it was really not that big of a picture in front of us. And later on, we were getting sufficient funds from the bank for our business growth. So there was a time when, we were growing sufficiently with the bank funds and never thought of raising the money and so on.”
The company is valued around 3 times sales and almost 30 times earning. Though not cheap on any standard, not very expensive as compared to other E-commerce companies.
Competitive Advantage:

Though the company is a mere e-commerce platform, the business cannot be easily replicated. Presently they have more than 12000 SKUs, for 80 crores topline. Thus, revenue per SKU is less than 1 lakh! Sheer number of SKUs required in this particular line of business gives a moat to the company. The management explains,

“But yes, I think it’s not just a trading business. It’s more than that. I think we are into a technology business. And we are selling a complete technical solution to our customers. So our customers really value, we keeping all the products that we know that they’ll require for a solution. So for example, if you want to make a drone, you don’t just require motors. You require 20-odd products which are compatible with each other. And then you have to keep those products in optimized stock to serve the customer at the right point in time. So that is a way beyond trading. That is not just buying a motor and selling a motor. We believe that we are a technical solution provider kind of in our business sense. And I think that helps because we are technical people and we know our customers requirements. And we act on that basis.”

The margin the company is commanding, over a prolonged period of time shows that the company has a decent advantage in the business.

The company is also supplying marquee clients like ONGC, M&M, Hindustan Aeronautics Ltd., Tata Power Solar Systems Ltd., Central Electronics Engineering Research Institute, Pilani, Wipro Enterprises Pvt. Ltd., Bharat Forge Ltd., Tata Communications Ltd., Schneider Electric India Private Limited.

B2B and B2C segment is almost equally divided. Operating margins are 23% in B2B segment, whereas it is 30% in B2C segment.

Scalability:

The business looks scalable because the company is operating in a growing segment. Further, it has only 12000 odd SKU presently, whereas leading global companies in the segment offer around 3Lakh SKUs. Further, brand development and new product development undertaken by the company will add to topline. The company has already created a new warehouse wherefrom 5X order can be served.
Investor presentaion-
8d7a67c7-228a-4df2-aebc-0505fb1c3a65.pdf (1.3 MB)

Reasons for Investing:

1. An E-commerce company available at reasonable price.

2. Decent growth prospect with good margin and good RoE.

3. Area of operation expanding.

4. Management is expecting OPM at around 15% and maintaining historical growth [which is upward of 50% p.a.]

Risk:

1. Micro cap investment may result in loss of 100% capital.
2. The company has to maintain huge inventory, which may become obsolete/cheap.
3. The company is generating exceptionally high RoE, which may attract competitor or bigger players in the space.
4. Lack of competitors in the listed space making it hard to compare.

[Disclosure: Invested]

[jitendrajain17]

Unlike platform business, margins are alike brick & Mortar. Current TTM PE is ~40, appears to be rightly priced.

[ca.ankitarathi]

As Mentioned in CON-CALL

Manan Patel: Understood. And sir, in terms of you, very well explained in the inventory model. So, if
we are on a high growth path, do you think, we would need to raise substantial funding
from banks or maybe equity, going forward, a few years down the line?

Binod Prasad: Yes, that situation depends on, how much growth you are targeting. So, if you are
targeting, say, 5x growth, obviously you’ll be needing a lot of funds. So our, future
forecast and growth are such that, we should be able to maintain the whole thing with
our own cash flows, internal accruals and of course, with our bank limit, that we have.

The company does not have enough accruals in FY 23 which can suppoprt its working capital requirements.

It has Negative Net CAsh Flow in FY 23.

[Lynch]

Thanks for bringing up the company, seems like what could be an interesting growth story ahead if the management delivers. I found this interview interesting around the IPO time

Robu.in interviewed on CNBC Awaaz | CNBC News | Robu.in

Overall, a few positives that came to mind were:-

1. Yes inventory management is a risk but it would also be the strength of the business. Maintaining such a diverse portfolio would require experience in the space which the first mover in the country should benefit from

2. Margins here could expand long term due to operating leverage as growth comes in

3. This could be a high growth market ahead with thier product portfolio and in the short history the young founders have already built up a decent product portfolio

4. Growth could come in from not only customer addition but also maturing of existing customers.

5. Large number of employees on LinkedIn and thier profiles look decent + Glassdoor reviews seem alright

Discl : Invested in self and family accounts and biased

[kalpesh4430]

Does anyone have online vs offline revenue segregation of FY23?

[rk1771]

Management has stated that B2B segment is almost 55%, and B2C is 45%. In B2B segment the margin is 23%, whereas the margin is 30% in B2C segment. They have not stated specifically, but B2B should largely be offline orders. Page 5 of the follwing transcript-
8d7a67c7-228a-4df2-aebc-0505fb1c3a65.pdf (1.3 MB)

[rajpanda]

That B2B part is really worth admiration. I have used robu in the past to order few things that were required for a project. It’s a very well known destination in engg. college campuses which use it to source components for projects. So in that context B2B share in business is a new revelation. B2B, have the option of directly buying from chinese players like alibaba etc. but they opting for Robu, indicates they would perhaps like to have more control and assurance over their raw materials than opt for buying directly from chinese players. Margins in B2B are healthy too.

In this recent Manish Chokhani interview, he spoke about a new wave of Indian students liking to work in hardware (hw+fw+sw) than erstwhile software alone. I think robu can be a beneficiary of this trend of India’s resurgence as a manufacturing power.

Disc: Invested in last month.

[Dev_S]

has anyone looked at competitive aspects? competition like robocraze.com, flyrobo.in seem to be catching up …ranking/traffic trend etc on cursory look, as seen last 3 months Robu traffic is on downtrend - could be temp but worth finding out

last year was marred by supply chain issues, this year being normalized will bring in higher competitive intensity. If there is a true differentiation - will be quite visible in coming times as highly scalable biz.

[sahil_vi]

Macfos is a very interesting company. I think for companies at scale of macfos, it is not remunerative to look for moats, but to think more in terms of
(i) execution capabilities & competence
(ii) Tailwinds & base rates of success. How is the ecosystem evolving? With electronics, drone, robotics/automation manufacturing shifting to india, we might have an IT like setup for electronics to explode both in R&D in colleges, government institutes & also private companies.

Sharing my notes from until now which are complied from DRHP, investor presentation, youtube interviews, concall:

Challenges /risks:

1. Past: primarily revolving around two constant supply chain issues. Firstly, there were widespread shortages of materials across all semiconductor product categories. Secondly, the supply chain demonstrated inconsistency, resulting in low availability and high prices of products for both us and our customers.
2. The companies are situated in China. For some companies, it’s a mix where companies not situated in China, but we are still getting material out of China. And I’ll be very frank with you. Like if this question ultimately is directed towards dependency on China. So I’ll be very frank with you. The whole world is.

Business:

1. SPECIALISED ELECTRONIC PARTS E-COMMERCE STORE. Ecom platform. Full solution provider. 12700 SKU inventory holding
2. Specialized Ecom Store of only electronics items including robotic parts, drone parts, E-bike parts, IoT & Wireless items, 3d printer & parts, DIY learning kits, development boards, raspberry Pi (Single board computers & Peripherals), sensors, motors, motor drivers, pumps, batteries, chargers, electronic modules & displays and various other mechanical and electronic components
3. SKU wise breakup
4. 
5. Very insignificant returns & replacement costs
6. 
7. the OEM category or own products revenue. So the revenue is generally 2% of our total revenue right now
8. 90% of our sourcing is based outside India. China is a lot.

Growth:

1. Expanding into new categories, introducing new products, and acquiring new brands.
2. Optimising our supply chain
3. Emphasising the development of our proprietary products
4. Lastly, we successfully implemented a warehouse system during the previous year, enabling us to handle ve times our previous order capacity.
5. Exponential growth in both orders, SKUs, visitors, orders
6. 
7. Growth guidance: I mean, it will be in the same line of, I mean, what we are continuing to do. So it will be in the same line. It won’t be right to disclose the number, but yes.
8. So we have already mentioned that we are more bullish on development boards and drone parts. And also we see the business of IoT machine learning like the wireless stuff that is going to be a good growing sector for us in coming few years
9. B2G: government labs like Bhel, DRDO and all other institutes. So there are educational institutes like IITs where a lot of research is happening. So currently our strategy is getting in touch with them and because of smaller orders already, we have already interacted with them for smaller orders. So we are now getting in touch with them and trying to get these tenders for higher value orders. So we are currently trying to convert the smaller order that, we received into the high value orders
10. Have already created a new fulfilment center which can handle 5x the order volumes. For instance, we have recently obtained a property on lease at Chakan Industrial Area, Phase I, Mhalunge, Khed, Pune, which we plan to use it as fulfillment centre in future, after construction of building premises.

Profitability:

1. Furthermore, we aim to enhance operational eciency and accountability by maximizing the utilization of our ERP system
2. 23% gross margin in B2B, 30% GM in B2C
3. ROCE: 2.5-3 month inventory turnover is awesome. 14% EBITDA + 4x inventory turnover means high ROCE
4. ROCE: Out of Total Inventory (as on 31.03.2023), Only 2.33% Inventory is Very Slow-moving (not sold in last 9 months)
5. Operating leverage: So while our revenue has grown by 45%, some expenses have only increased by say, 10%, 20%, or 25% only. This indicates that we have the potential to leverage our PAT better in the future
6. Expenses: we try to keep our marketing expense below 2.5% of our overall revenue. the bottom line, we know that we want to maintain around 9% to 10%.
7. B2G: WC: Receivables: So even if we deal with them with credit terms, with the portals coming in and purchasing happening online, we see payments happening more or less on time. We will take a week’s delay here and there, but yes, it’s not the old days where, you see the government payments, which will happen, God knows when. So that is the reason with the orders.

Promoter / Management:

1. Atul Dumbre. I am Chairman and MD of Macfos Limited. Present along with me from our side today is Mr. Binod Prasad, who is CFO, and Mr. Nilesh Chavhan, who is a Whole-Time Director
2. When it comes to our expenses, we have been performing well, I’ll say, by keeping them in check and optimizing them continuously, which has become a kind of habit for a company like us, which is a bootstrap company
3. And the backstory of Robu is that, we are four friends first. We are all friends from engineering college, I can say. And before Robu, we have a failed business of doing chapati machines, 2011 to 2013. And that is where like we did one year in the industry, 2010 to 2011. And because of that failed business background, we value every rupee that we spend. And that is how we started from scratch in 2014
4. Being from the technical background helped us. We knew even today we believe that we knew how this segment works and what are the requirements of the customers
5. All 4 were doing robotics in college that is where the passion came from. Also, they now use SOPs, ERM, OKRs, clear division of responsibilities + 4 founders makes it very scalable
6. Understand the difference between personal finance & company finances. Very important to ensure promoter integrity

Strategic thinking:

1. we prioritized the growth of our high-value corporate customers, who are involved in production activities
2. we strategically adjusted our pricing, passing on some of the increased costs to customers while absorbing the remainder in our margins. Our decision was grounded in the belief that shortages are temporary, while customers are long-term
3. we are doing sustained investment and focus on building categories of development board and drone segment for last three, four years.
4. So for example, if you want to make a drone, you don’t just require motors. You require 20-odd products which are compatible with each other. And then you have to keep those products in optimized stock to serve the customer at the right point in time.
5. We are also working on three or four categories in coming year, which will act as a road driver in long term. Names confidential.
6. We tried to calculate the loss sales due to, let’s say out of stock, we call it that. So because the products are not in stock, how Macfos Limited June 07, 2023 Page 9 of 15 much sales we have lost.
7. Capital Allocation: Yes, that situation depends on, how much growth you are targeting. So, if you are targeting, say, 5x growth, obviously you’ll be needing a lot of funds. So our, future forecast and growth are such that, we should be able to maintain the whole thing with our own cash flows, internal accruals and of course, with our bank limit, that we have.
8. Decided to stop using amazon/flipkart (when revenue was 1.6 c, lost 40% of revenue then) so they can build their own brand & ensure alignment of incentives & practices.
9. This is possibly the most important part of their business model. Our ERP software has a function of inventory management system, which allows us to track the inventory level and movement of our SKUs on a daily basis thereby allowing us to control our inventories effectively. We place orders with our suppliers based on the results of our analysis of customer demand and product assortment requirements to fit our customers’ preferences. Orders are placed based on data generated from our ERP system in relation to current inventory levels as well as forecasted and historical inventory and sales data.

Competitive intensity

1. There are some companies & i have covered in separate section. Needs much deeper work to analyze each company along common dimensions.
2. Western companies: element14 or Farnell Group, Arrow. There is Sparkfun, Adafruit.

TAM:

1. Farnell/Element14 are having around 3 lakh products in their portfolio already. UK based co.
2. 
3. The base rate of success goes up when addressable market is growing at 17% CAGR & there is added tailwind of on-shoring/manufacturing of electronics in Bharat
4. BHAG of reaching 1000 cr in few years +10cr served customers by 2025 (my own expectation is might reach 10 cr customers by 2030 but even that would be epic)

Competitive advantages:

1. Currently, we have around INR16 crores, INR17 crores worth of inventory. So it’s just not any inventory. It’s a really curated inventory of what we have 15,000 products. So what product and what quantity, that is really important. And that knowledge that, we have built with our knowledge and experience of years. Right. So our inventory is our strength. That is what, we believe because it is right product in right quantity, which gets rotated in 2.5 months to three months
2. But can they get the website as popular as Robu even if they develop the website? We have developed our website since around eight years and it took that much time to develop all the content of our website, get the SEO right and to reach to the level, where there are five lakh people visiting our website every month, website plus app combined. So it’s just like building a brand. So tomorrow anybody can maybe make TVs, but we cannot assume that, the TV manufacturer will start competing with maybe LG or Samsung right day after. Even though, it looks very simple, anybody can just make some TVs, something like that
3. Quality of clients on B2B side is very good. Under the offline channel, we generally serve Corporates and large enterprises. Some of the esteemed customers which have been served by us include ONGC, M&M, Hindustan Aeronautics Ltd., Tata Power Solar Systems Ltd., Central Electronics Engineering Research Institute, Pilani, Wipro Enterprises Pvt. Ltd., Bharat Forge Ltd., Tata Communications Ltd., Schneider Electric India Private Limited etc.
4. Wide variety of components & services available enable the end user to make fewer context switches & makes their prototyping / R&D process easier.
5. 
6. 
7. 
8. I was chatting offline with dev, & he thinks that Robu’s catalog of choices for each item is wider than some competitors at least that he tried out.
9. Also, Our owned brand portfolio is executed by identifying gaps in the market, both across requirements of diverse consumers and multiple price points, and building brands to suit these needs, with a focus on high quality electronic components. This could potentially be higher margin than corporate & co could have a focus to grow this part of the revenue stream.
10. In addition to creating brands which plug whitespaces in components space, robu also offers value added services which again help complete the purchase order for the client. If client can get all their components & services (like laser cutting, 3d printing, custom li-ion batteries, PCB printing) done under 1 vendor/website, this simplifies life for the client.
11. 
12. One of things which i found quite fascinating about robu is that they are treating this as an ecosystem problem. Only way to build ecosystem is through education. In order to drive widespread product education, we frequently create content based videos and blogs which are displayed on our website and mobile application. Our content is majorly focused on the DIY electronic projects which can be made using the electronic parts available on our platform. We create and film a majority of our content in-house through the internal team. (these videos are shot in-house. Shows focus on austerity)

Bard on Robu:

Robu.in is a great option for buying electronic components in India. Here are some reasons why you should prefer Robu:

• Wide selection of products: Robu has a wide selection of electronic components, including resistors, capacitors, transistors, ICs, sensors, and more. They also have a good selection of kits and modules for beginners and hobbyists.
• Competitive prices: Robu’s prices are very competitive, and they often have discounts and promotions.
• Fast shipping: Robu ships all orders within 24 hours, and they offer free shipping on orders over ₹500.
• Good customer service: Robu has a good reputation for customer service. They are responsive to customer inquiries, and they offer a 30-day return policy.

Here are some additional features that make Robu a great choice for buying electronic components in India:

• Expert advice: Robu’s team of experts can help you choose the right components for your project. They also offer a blog and a forum where you can get help from other electronics enthusiasts.
• Educational resources: Robu offers a variety of educational resources, including tutorials, schematics, and datasheets. This makes it easy to learn about electronic components and how to use them.
• Community: Robu has a vibrant community of electronics enthusiasts. You can connect with other hobbyists and share your projects.

Overall, Robu is a great option for buying electronic components in India. They have a wide selection of products, competitive prices, fast shipping, and good customer service. I highly recommend them!

Competitor Analysis

Name	Robu/Macfos	ElectronicsComp	element 14 india	Digikey India	Flyrobo
Total visits similarweb	1.3M	700k	317k	360k
Google Playstore Rating	4.3	3.8		4
Google Playstore Downloads	1L	1L		1L
Google PS Reviews	7k	6k		1k
EPFO employees	118		591
EPFO EPF	3,64,000
Global Rank as per similarweb	44,378	83,553	6,00,000	1,60,913	3,02,760
Revenue	80 cr	13 cr	260 cr
EBITDA margin	14%	4%	11%
Revenue growth	50%	64%	35%

Distribution Analysis

Robu:

Digikey

Element14 (india)

Key ways to take analysis forward

Right now my competitor analysis table is incomplete. lot of work has to go into filling it up. Lot of it is manual labor since we need to find out things like CIN of the companies etc.

Disclaimer: I am invested & biased, have transactions in last 30 days

[lazy_investor]

If this segment really becomes large in the next few years what is stopping other suppliers to list these products on flipkart/amazon?
I’m assuming here that since it’s a small segment not many suppliers are trying to procure all the sku’s from china and list them on flipkart/amazon which is why Robu has an edge of being a one stop place. But, if the segment really grows wouldn’t other suppliers be tempted to?

[rk1771]

Competition is a way of life, and there is no way one can avoid competition. Yes, the company must be prepared to face competition.
Here competition can come in three-way and let us analyze that:

1. There are some websites outside India in similar line of business- Digikey.com
   Supply by these sites in India will not be able to compete against Robu.in as supplies will incur higher shipping cost, time lag, and custom clearance.
2. Large platform businesses like Amazon.
   Of course they have the financial muscle, but there business model cannot affect Robu as generally suppliers list their products on amazon. Thus, it is possible that manufacturers/suppliers may list their product there but one particular manufacturer or supplier list 5-10 products there. If a customer needs say, 30 products, he will need to order such items to different suppliers and supplies may not fit/ be compatible with each other. Thus, I dont see platform businesses as a great threat. Further, the niche is not big like groceries, where you expect Amazon to start a “fresh” type of platform.
3. Real competition may come from similar type of web offereings in India. Robocraze, bbotics, robodo etc. Here the competition is real and competition will be decided based on the execution capability of the players.
   In this space Robu.in has a first mover advantage. Further, they are doing branding in certain products, have a robust offline channel and developing certain products; the company look geared to face competition. From the reports, their inventory management and cash from operation looks inpressive. Their capital allocation/management looks good. Even in the IPO, there had been no dilution in equity.
   Thus, in my view, competition is there and the company has to face it. Let us see how they do.
   [Disclosure- Invested and biased]

[kalpesh4430]

FY 22 - our revenue from operations were Rs. 5551.47 lakhs of which 62.59% were from online mode (website and mobile application) and 37.41% were through offline channel (RHP)

Fy 23 - *So in terms of, I mean, division, you can say B2B is roughly, 55% of total revenue and B2C is *
roughly 45%. ( Concall transcript)

	Online	Offline	Revenue(Cr)
			Online	Offline
2022	62.59%	37.41%	34.74	20.77
2023	45%	55%	36.08	44.09

As can be seen in above table, online sales is stagnated in FY23,
It may mean they are near peak in online sales.

They can still grow revenue by increasing number of SKU’s in online business, but I hate the fact that management conveniently hide this data in investors presentation. This is one red flag for me.

They have a good runway in offline or B2B business.

Disc.: Not invested, may invest if it falls below 200.

[rajpanda]

They have clearly said in the con call that due to supply chain issues, product availability were low and they took a conscious decision to prefer B2B customers(let’s assume offline) over B2C (let’s assume online). How does that leave us with this conclusion ?

@kalpesh4430

online sales is stagnated in FY23,
It may mean they are near peak in online sales.

[rk1771]

Nobody knows the future, thus any statement about the future is speculation and at best a reasonable guess. But, I dont think anything was hidden by the management.
Quoting from Concall- Page 2
“This all achievement is despite of the challenges posed by a volatile global environment, which includes fears of war, also fears of recession, and also supply chain disruptions that we have seen over last year. And I believe that our business fundamentals are robust and strong, positioning us on trajectory of sustainable growth. Last year presented its fair share of challenges, I must say, primarily revolving around supply chain issues. In fact, there are two things I would like to highlight related to supply chain.
Firstly, there were widespread shortages about semiconductor products. You all must have heard about those shortages going around over the globe. And secondly, the supply chain was inconsistent. That means that when we require the material, sometimes the sea freight.”
They have specifically said that in the year, they prioratised corporate customes. Quoting,
“One is the shortages or lower availability of material, and second is pricing. So in response to shortages, what we have done is prioritize our sales to our corporate customers, because we know that these people are into some production activities. And also these corporate customers are generally high value per order customers for us. So we have prioritized those customers during the times of shortages. And as you can see in the numbers, this has resulted into higher number of corporate orders for us during last year.
And we believe that this focus on corporate customers last year will help us in coming time to grow even higher. Secondly, there was an issue of pricing, because of the shortages and intermittent supply, the prices were going up and down, mostly up. What we have done is we have absorbed some of the price jump into our margins and passed some of the prices to the customers. This was also a strategic decision driven by that the shortages and price jumps are short term, but the customers are long run.”
Thus, saying that management hide something may not be a correct inference; particularly for a company coming first time in a concall. But we all are free to draw our own inferences.
[Disclosure- Invested and biased]

[Puneet31]

Its too early to judge that as a stagnation
There are reasons shared by management

And this industry has a tailwind
many kids from 9-12 grade , College going students, startups need lot of such kits, parts which were not accessible earlier and now possible at single platform
Slowly and gradually this penetration will increase and its access and delivery at 10000 pin codes surely helps that to expand.
We have already see repeat orders from customers
So traction is there

as a model, i would put this company as growing company in a growing pond
currently pond is smaller but increasing rapidly
There is a space for 2-3 more players in coming decade if I understand the scope

[Nimit]

They are in early development stage. Comparing data for two years is insufficient to declare any stagnation.
They have also mentioned that they focused on large customers despite taking a hit on the margins for forming/keeping a long term relationship with them.

Also, the ratio of Sales+Marketing+Customer Success+Operations+Purchasing employees to Product development (Engineering + IT + Business Development) is not as skewed as mature products have.

I see Engineering+IT+Business development as Capex and others as Opex.
(Not a hard line but a proxy to it for ecom and similar businesses. I understand eng does maintenance work and sales secure new long term clients etc. Its a comparison technique. Also, Linkedin data is incomplete)

Disc: Not invested yet

[Kuldeepjadeja]

What MOAT this business have?
I guess nothing , to list 12k products is not worth 267 cr .which currently u r paying.
The same things were happned with Repro india they were talking about POD and listed 2mn titles, and bla bla bla…nothing happened …Malabar,Kedia and kacholia all r traped since 5yrs, means ur money was entirely washed.
Many people will argu Robu.in is not comparable with Repro, and Even vaibhav global my answer is think twice u will find both r apples.
They have become nothing to 250 cr and now beyond that they will have to fight at different level.
Why this business will grow beyond current levels…There always be supply chain issues and B2B is a joke nothing beyond certain limit will happen.

I will clearly wait for next 2 3 years and then take my call ,today many superior quality businesses are available <20 PE. then why to take such risky bet.

Disc. :- Not invested

[hunter]

Sharing few things which I observed recently.

Site Views are falling drastically in recent times. In march 2023 views were around 1.6 million. But in last 28 days views are standing at 1.03 million. Is there any seasonality in this business? During my engineering period we do final year projects in last semester ( jan - apr). Anything like that???

But their competitors views are mostly stagnant in last 3 month basis, at least not falling.

my understanding is price is the most crucial factor in this business. Recently i am continously getting paid ads for robocraze. most users are comparing the price and making their decisions. Off course return policies, fast shipping, these are the factors which may help macfos. But in my view competitors can also adapt these factors going forward.

Going forward offline business can suppport their growth. But in online sales tough competion is coming.
Happy to learn more views from the community.