Jasmeet Thind: Pivoting from Re-commerce to Transforming Retail Tech

In 2016, Jasmeet Thind embarked on a journey into the world of FMCG with Hindustan Unilever Limited (HUL). Little did he know that this experience would lay the foundation for a significant shift in his career. Working with the soap brand Pears for nearly three years, Thind found clarity and cleansing not just for his mind but also for his entrepreneurial spirit. By the second half of 2016, Thind, along with a group of friends, co-founded CoutLoot, a fashion re-commerce marketplace. Positioned as ‘closet managers,’ CoutLoot allowed users to buy and sell pre-owned clothes, accessories, and footwear. This venture entered a promising re-commerce space that catered to the aspirations of young consumers seeking branded items at affordable prices.

CoutLoot made a strong start, amassing an inventory of over 6,000 clothes and processing a daily listing of 300-400 items. With around 50 orders daily, funders saw the potential, and CoutLoot secured seed funding in 2016. In 2018, the startup raised $1 million in pre-series A funding, presenting a perfect blend of commerce and re-commerce. However, Thind soon encountered the challenges of the second-hand business. Stigma persisted, high returns, low conversion rates, and supply management became obstacles, and the re-commerce bubble seemed to burst. By the end of 2018, CoutLoot was on the brink of running out of money, with over a dozen investors declining to fund the venture.

Then came the pivotal moment. A trip to China sparked a shift in Thind’s perspective. He transitioned from branded to unbranded products, expanded from top cities to Tier II and beyond, and shifted from end-users to retailers. CoutLoot transformed into an offline-to-online (O2O) non-grocery retail platform for non-branded and non-fixed price products. The startup enabled offline sellers to list non-MRP, unbranded products across various categories while providing them with supply chain support, logistics, marketing services, data insights, automatic cataloging, and payment solutions. Buyers and sellers could negotiate and close deals through a chat feature. The results were encouraging, with operating revenues rising from Rs 10.8 lakh in FY17 to Rs 52.8 lakh in FY20. Then, the COVID-19 pandemic hit. However, the pandemic brought an unexpected silver lining. As the offline world rushed to establish an online presence, CoutLoot benefited from the tailwinds, closing FY22 with operating revenue of Rs 1.3 crore. Thind expects losses to decrease from Rs 19 crore in FY22 to approximately Rs 11 crore in FY23.

Having raised over $20 million and with backers including Ameba Capital, 9Unicorns, SOSV, and more, CoutLoot boasts over 10 lakh street shops and small businesses on its platform and nearly 17 million downloads. Thind’s vision extends to capturing the $300 billion non-grocery retail market in India, a vast opportunity awaiting exploration. Investors are optimistic about the potential of digitalization on the consumer side in India. Kevin Wang, Managing Partner of Ameba Capital, believes India’s consumer digitalization has the potential to match China and Southeast Asia, making it a long-term investment opportunity. CoutLoot’s founders possess the background necessary to succeed in India’s rapidly evolving consumption landscape.

Despite immense opportunities, CoutLoot faces challenges. India’s low GDP per capita and wealth inequality hinder e-commerce growth. Scaling quickly, reducing losses, and adapting to consumers transitioning from unbranded to branded products are critical. Thind believes that the unbranded story has a long tail, with affordability remaining a priority in smaller towns, cities, and villages. CoutLoot aspires to empower local players to build their brands, contributing to the evolution of India’s consumption landscape. Jasmeet Thind’s journey from FMCG to re-commerce and eventually transforming retail tech reflects his adaptability and resilience, traits crucial for navigating the dynamic Indian market. As CoutLoot continues to grow and adapt, it strives to play a transformative role in India’s non-grocery retail space.