Bengaluru: What’s the market share of ride-hailing companies in India? Which grocery delivery company has the highest daily orders? And how did these companies arrive at the figures anyway?
Precise answers to such questions have remained elusive as real data-based market insights on India’s Internet companies and its investors remain hard to come by.
Market research and advisory firm RedSeer Management Consulting Pvt. Ltd is trying to capture this space. It provides timely and original data on India’s consumer Internet market by tracking the performance of Indian unicorns—those valued at $1 billion or more—and other fast-growing start-ups.
Started in 2009 by an Indian Institute of Technology-Delhi graduate, Anil Kumar, who previously worked with the consulting firm Zinnov Management Consulting, RedSeer, a boutique research and consulting firm based in Bengaluru, is currently working with about 150 clients across e-commerce, retail, healthcare, automotive and education sectors.
RedSeer’s biggest clients are large consulting firms, e-commerce companies and venture capital investors who are always looking for accurate and up-to-date data to assess the performance of individual companies.
Others firms such Tracxn Technologies Pvt. Ltd, Venture Intelligence Pvt. Ltd and CBInsights Inc. also track start-ups and collate data to provide detailed sector-wise analysis and company-specific insights. But the data provided by these firm are often based on secondary research—analysis of existing research findings, rather than original research in which they collect their own data.
The key differentiator for RedSeer is that it carries out both primary and secondary research. It uses traditional market research methods such as surveys, mystery shopping, interviewing domain experts and people directly involved in e-commerce. It also collects field data and deploys software programmes to collate data from the web, including social media sites.
“Our USP (unique selling proposition) is our primary data. There’s a lot of confusion out there about the state of the market, the exact growth numbers, where is the market growing, who is winning market share, who is losing market share, etc. We provide all this information across sectors in consumer Internet such as e-commerce, cab aggregators and hyperlocal. Ours is a premium product because this kind of data isn’t available anywhere else," RedSeer’s Kumar said.
Apart from providing primary data, RedSeer also provides consultancy services and conducts due diligence for venture capital firms on investments.
“It is super difficult to get market data and even when you get your hands on data, you cannot be sure on how accurate it is," said Nitin Saluja, founder, Chaayos (Sunshine Teahouse Pvt. Ltd.), a tea chain.
“We have to end up collecting data ourselves. Why should a company that is selling chai, like us, be getting into data collection? We can do it, but that’s not the best use of our time."
It’s this unique need that RedSeer is trying to fulfil.