Countdown to Groceryshop 2018: Startup Pitch Competition Participant Profile, Part 11—Nextuple
The Coresight Research team will be attending and participating in the Groceryshop 2018 conference, which runs October 28–31 in Las Vegas. The team behind the Shoptalk retail and e-commerce conference founded this new event, which will cover the disruption of the grocery, consumer packaged goods (CPG) and related industries.
- The conference is expected to bring together 2,200 attendees and more than 150 speakers. Discussion topics will include the transformation of the retail industry, including convenience stores, supermarkets and e-commerce, and changes in the production and distribution of CPGs across multiple retail verticals. Additionally, the event will cover shifts in consumers’ shopping behavior and how they want to shop in the future in both brick-and-mortar and online formats.
- On October 28, Coresight Research CEO and Founder Deborah Weinswig will emcee a startup pitch competition featuring 12 innovative, early-stage technology companies that provide solutions to solve major problems in e-commerce, grocery retail, and/or the food or CPG sector.The participating startups are Adrich, Forager, IceCream Labs, IntraPosition, Locai Solutions, Nextuple, Observa, Packyge, Shelf.ai, Simplista, Tastry and Touchize.
- In this report, our 11thin a series of daily Countdown to Groceryshop 2018 reports, we profile Nextuple, which integrates real-time data from stores, fulfillment systems and delivery providers to enable store operations staff to identify and mitigate potential inventory and on-time fulfillment risks.
The Coresight Research team will be attending and participating in the Groceryshop 2018 conference, which runs October 28–31 in Las Vegas. The team behind the Shoptalk retail and e-commerce conference founded this new event, which will cover the disruption of the grocery, CPG and related industries. Coresight Research has previously partnered with Shoptalk to host that conference’s annual startup pitch competition.
Groceryshop is expected to bring together 2,200 attendees and more than 150 speakers. Discussion topics will include the transformation of the retail industry, including convenience stores, supermarkets and e-commerce, and changes in the production and distribution of CPGs across multiple retail verticals. Additionally, the event will cover the rapid shifts in how consumers discover, shop and buy—from the use of new technologies and business models to the latest trends in consumer behaviors, preferences and expectations.
According to Zia Daniell Wigder, Cofounder of Groceryshop and Chief Content Officer of Shoptalk, Groceryshop was created to meet the needs of a sector on the verge of a massive shift. The percentage of grocery sales made online in the US is only 2%–3%, significantly lower than for other categories such as apparel and electronics, where e-commerce accounts for about 20% of sales, Wigder said.
Over the next few years, new omnichannel grocery offerings will likely go mainstream, providing consumers with new experiences as well as more convenient delivery and pickup options. Digital platforms that offer the best mix of price, selection and convenience will see increased transaction volume, while physical stores will experience change and likely play a key role in online order fulfillment.
Startup Pitch Competition
On October 28, Coresight Research CEO and Founder Deborah Weinswig will emcee a startup pitch competition featuring 12 innovative, early-stage technology companies that provide solutions to solve major problems in e-commerce, grocery retail, and/or the food or CPG sector.
Each company will present its business to a panel of judges from the investment community and to the audience. Two winners will be announced, one chosen by the panel of judges and one by audience vote, and each winner will be awarded $10,000.
Groceryshop curated the participating startups based on their solutions to some of the most pressing challenges that grocery, e-commerce, food and CPG companies are facing. All of the participating startups have less than $3 million in funding, provide business-to-business (B2B) solutions and were founded in 2014 or later.
We categorized the 12 companies into four buckets of retail disruption:
- Sourcing, Merchandising and Cataloging: Shoppers are demanding more grocery choices than ever before, and grocery retailers face challenges in keeping their assortments up to date and in sync with consumer demand.
- Enabling Grocery E-Commerce: Providing engaging and personalized online experiences while meeting consumer expectations regarding fulfillment and delivery is crucial for retailers.
- Improved Shopping Experiences: Shoppers are demanding intuitive and more seamless grocery experiences both online and in stores.
- Tracking, Measurement and Insights: Digital technology is creating new metrics and capabilities for gleaning insights for grocery retailers and CPG manufacturers.
Below, we profile Nextuple, one of the companies participating in the startup pitch competition at Groceryshop. We categorize Nextuple as being in the Enabling Grocery E-Commerce group.
Nextuple helps online grocers achieve high levels of customer engagement and loyalty by using data science to measure and manage post purchase experiences. The company’s ControlTower solution integrates data from stores, fulfillment systems and delivery providers in real time to enable store operations staff to identify and mitigate potential inventory and on-time fulfillment risks. The solution leverages predictive analytics to help grocers manage shopper expectations and allocate resources while constantly monitoring on-the-ground conditions.
E-commerce represents an emerging opportunity for grocers. The online grocery market is estimated to reach $17.5 billion this year and grow to $100 billion by 2025, according to a study conducted by Nielsen. A key driver of customer retention is on-time fulfillment of online grocery orders:according to Nextuple, one study conducted by a leading grocer suggests that a fulfillment delay of more than 60minutes will cause a customer to be about 15%–20% less likely to order again. Given the growing competition in this sector, it is critical for grocers to proactively manage their fulfillment operations in order to reduce customer attrition.
What Problem Is the Company Solving?
Omnichannel retailers, including many grocers, often utilize stores to fulfill customers’ online orders. However, unlike traditional fulfillment centers, stores are highly unpredictable environments,and factors such as varying customer footfall, replenishment schedules, temporary staffing and physical layout impact stores’ ability to consistently meet customer expectations.
Nextuple’s ControlTower solution is designed to bring predictability to store-based fulfillment by enabling retailers to monitor transactions and store operations in real time and predict potential risks regarding the customer experience. The product also uses predictive analytics to recommend risk-mitigation strategies. For example, if a store team is unable to pick orders at the rate required to fulfill all orders on time, ControlTower may suggest a staffing change in the picking department.
Seed round ($1.5 million)
Nextuple’s ControlTower platform is hosted in the cloud and made available to clients on a subscription basis. Nextuple also offers architecture and data analytics services.
CEO Darpan Seth is an entrepreneur and angel investor with more than 20 years of retail, consumer goods and supply chain experience. Head of Customer Solutions Laxman Mandayam has more than two decades of experience in global enterprise software and consulting. Head of Product Devadas Pattathil is a product management and technology leader with more than 20 years of experience in retail/omnichannel commerce, online grocery and supply chain operations.
Nextuple is actively working on a beta pilot of its product with customers.