Rahul Agarwal and Harihar Balsubramanian BuyEazzy began by drawing on what they learned in supply chain management and logistics at BCG and their personal experiences with family businesses.
Founded in 2021,It is an e-commerce platform focused on beauty and personal care products. The Mysuru-based startup aims to be the premiere shopping destination for Tier 2 cities and beyond.
BuyEazzy has been growing at a rate of 100% on a monthly basis for the past six months and is currently completing more than 2,000 orders per day. The startup operates in eight cities in Karnataka: Mysuru, Hubli, Dharwad, Mangaluru, Bellagavi, Coorg, Hassan and Tumkur.
It claims to have hired more than 75,000 first-time online shoppers while working with more than 1,000 stores in the neighborhood. About 50% of BuyEazzy orders come from remote towns and villages that are tagged in these cities.
During his previous role as Project Lead at the Boston Consulting Group (BCG), Rahul worked across sectors in remote areas such as Dhanbad, Gunpur, Anjul and Sultanpur.
During a project at BCG, he met Rahul Harir, an engineer and MBA graduate. The two were supposed to travel to London for the project when the pandemic hit. This changed their career path.
“I am a fourth-generation businessman in my family. I own small sweets and clothing shops in Delhi. Business is something that comes naturally to me. Harrier has a deep understanding of the South Indian retail market,” says Rahul.
“We have always wanted to build a consumer-oriented business but by leveraging our understanding and experience in the supply chain (at BCG). The market we are looking at and the white space we are targeting which is Bharat is a challenging area,” he adds.
Since the co-founders are based in Delhi and Chennai, the question arises as to why would Mysuru choose to set up a company.
“We wanted to capture a city that was truly representative of the middle class that is our target user base. We also had to think about the long-term, as we thought about the availability of tech talent. Mysuru provides this kind of strategic advantage as it is three hours away from Bengaluru. At the same time, it provides Reach all southern states through overnight delivery mechanism,” says Rahul your story.
How it works
Instead of digital marketing, BuyEazzy has a unique customer acquisition model where it strengthens the relationships small business owners have with their customers to convert them into BuyEazzy users.
For example, an e-commerce platform cooperates with a salon that receives 12-15 clients per day. The salon promotes the app and gets a commission for the subscriptions. BuyEazzy has many partnerships across Kirana stores and salons in these second tier cities.
“We are taking advantage of the trust that already exists between these smaller stores and the end users who come into the store, who have already taken advantage of some of the services, or were buying from these people. These companies have a very unique proposition that I have started an online business with this company,” he says. Rahul explains here, this business owner is up front, but the customer is also aware of the BuyEazzy brand.
“These people can earn up to 50% of their current income without affecting their business,” he adds.
The startup has its own delivery fleet, and takes care of sourcing and logistics.
Being a marketplace for beauty and personal care products, BuyEazzy has put in place strict quality control measures. They also ensure that they work with only a few suppliers, and work directly with brands.
By working with local sellers and local distributors, the startup claims to be able to deliver orders within 24-48 hours. About 80% of the startup’s supply chain is localized.
“Other start-ups with a centralized supply chain are not able to do that,” says Rahul.
Brands in Mysuru
Rahul says Level 2 and beyond cities have unique brand consumption patterns and preferences your story.
“Specific regional beauty and personal care brands don’t have that kind of market share in Mysore, but there are some regional Ayurvedic brands that we work with,” says Rahul.
“D2C brands have great penetration in these cities and towns so far because they have been focusing on metro and level one through digital marketing. As we become the market of choice in these cities, we also become the go-to-market channel for these D2C brands as well.”
He concludes that Tier III and IV cities are availability-driven markets, and less of a consciousness-driven market.
The market plans to expand to 20 cities and introduce more than a million offline users to e-commerce within a year. Some of these cities include Coimbatore, Davanger, Shivamoja, Tirupur, Salem and Trichy.
In August 2022, BuyEazzy raised $1.3 million in an initial round led by Incubate Fund India and M Venture Partners, along with angel participation such as Superb Capital and others.
It plans to use this money for product improvement, team building, and expansion.
Other e-commerce startups outside of tier 2 and tier 3 cities include Kurseong-based Daammee, Bhubaneswar-based Maavni Designs, Jaipur-based MEDdelivery, Pune-based Flyseas, and Manira.
The Indian e-commerce industry has been on an upward growth trajectory and is expected to overtake the United States to become the second largest e-commerce market in the world by 2034. The e-commerce market is expected to reach $200 billion by 2026 from $38.5 billion in 2017, according to for a report by the IBEF.
With the lower cost of second tier service and other smaller cities, most of the e-retailing growth in the country will come from these areas. Overall, the number of online shoppers in India is expected to reach 220 million by 2025.