Bengaluru-based Jodaro aims to simplify the process for Indian manufacturers to establish their brands and sell products in international markets.
As a global commerce company, Jodaro offers comprehensive services, including shipping, e-commerce support, and fulfillment. Besides facilitating global direct-to-consumer (D2C) business, the company assists with fulfillment and logistics for manufacturers’ business-to-business (B2B) orders.
Jodaro aims to capitalize on the anticipated surge in e-commerce exports—forecasted to reach $400 billion over the next six to seven years according to Directorate General of Foreign Trade’s (DGFT) chief Santosh Kumar Sarangi.
We spoke to company co-founders Rajiv Patki and Sambuddha Adhikari to delve into Jodaro’s business model, growth trajectory, and more. Here are the edited excerpts.
Help us understand how Jodaro functions. What makes it unique?
We primarily work with Indian manufacturers, helping them launch global brands. Whether they’re online domestically or not, we assist in establishing their global presence, covering both B2B and B2C exports. Our support extends to addressing various market inefficiencies like logistics, infrastructure, and marketing complexities, particularly in the competitive US market.
Regulatory challenges, especially in retailer B2C exports, pose significant hurdles for medium to small manufacturers. We manage the entire lifecycle of global commerce, allowing manufacturers to focus on product quality while we handle business processes, analytics, and technology. Essentially, we ensure seamless global trade operations for our clients.
B2C exports from India are relatively low compared to other markets and total exports from the country. The majority of Indian exports are B2B, where products are sold in bulk directly to business buyers, offering higher margins. However, there’s potential for significantly higher profit margins, around 1.5x to 3x, by exporting directly to consumers, especially in the US.
Currently, most of this activity, totaling below $10 billion, occurs through Amazon’s global selling program. However, this model restricts sellers to only Amazon’s platform, limiting their reach. They cannot utilize other B2C channels like Walmart, eBay, Etsy, or Shopify, which hampers demand generation. This narrow approach contributes to the current underperformance of B2C exports from India.
Please tell us about your growth, and plans to expand into markets other than North America.
We’re currently collaborating with six manufacturers and are set to onboard 20 more in the next few months. Our operations span across North America and India, representing six brands. By the quarter’s end, we anticipate reaching an annual Gross Merchandise Value (GMV) run rate of approximately $200,000, building on last month’s achievement of a $100,000 annualized GMV run rate in January.
Our primary focus initially is on North America, given its status as the largest target market. For the first six to seven months, our operations will concentrate on India and North America, as India presents low-hanging fruit for us. Following this phase, we aim to expand into EU countries, including major economies like Germany and France. Additionally, we plan to explore markets in the Middle East and eventually Southeast Asia. While we haven’t set specific timelines for these expansions, our priority is to establish a presence in the North American market first, considering its significance as the largest consumer product market.
How do you generate revenue?
Our revenue model is solely incentive-based, with commissions charged on sales facilitated through various platforms. A key aspect manufacturers appreciate is our commitment to transparency throughout the entire process—from warehouse to customer delivery.
Unlike legacy players, where opacity often prevails, we ensure manufacturers understand the revenue generated at each stage. This transparency brings trust and brand retention, as manufacturers realize the fair share they receive from end-consumer payments post rebranding and other processes.
