Zocket: Run your ads in 30 seconds

The Gap & Solution

SMBs are the backbone of India. There are over 65M+ SMBs in India employing over 110M people (that’s more than 40% of India’s workforce). Over the last few years, thanks to the tech and internet wave, SMBs have become more tech-savvy. Startups have taken this opportunity and have helped SMBs automate various functions, from payments to ERP. An area, which is yet to be catered to comprehensively is “marketing/advertisement – improving digital presence of SMBs”.

Social Media has transformed society’s landscape and it's imperative for a business to have a strong online presence to grow rapidly. Understandably, more SMBs want to go online now and tap the potential customers. However, it is extremely difficult for an SMB to set up an in-house marketing team or use the existing digital mediums for advertisements. Additionally, most of these people don’t have the required knowledge to get the best out of social media and ride the digital adoption wave. This is where Zocket comes into the picture. It aims to be an on-demand one-stop digital marketing solution for SMBs.

Zocket helps businesses create digital ads in <30 seconds and grow digitally across multiple digital platforms (Facebook, Google, Instagram, LinkedIn, etc.). They have followed a mobile-first approach and can launch campaigns in vernacular languages in minutes. The app has an extremely lucid interface, making it easy for an SMB owner to use and get the best out of it without any expertise. Their end-to-end proprietary tech stack combines 150 variables to generate content like ADs and visual design. The goal is to help SMBs achieve the highest ROI on their AD spending.

Traction – A beta version of the app has been launched on the Play Store. As of March 2022, Zocket had created 1,000+ unique ads across platforms.

The Zocketeers

Zocket is founded by seasoned serial entrepreneurs - Karthik Venkateswaran, Nandha Kumar Ravi, Mukund Srivathsan, and Sundar Natesan. All of them were involved in GoBumpr before and have successfully exited the venture, which implies a strong on-ground execution game.

Market Potential

Zocket is targeting the 65M+ SMBs in India. Using the top-down approach for market sizing – the total AD spends in India is ~$15B, out of which digital AD spend would be ~40%, making the total revenue pool ~$6B. The market is expected to grow at a CAGR of 12% till FY24 and digital spending is expected to reach 50% (from the current 40%). Out of this $6B, even if Zocket is able to tap 25% of the market, it is possible to command a revenue of ~$1.5B in India. Assuming a conservative margin of 15-20%, this becomes a $225-$375M EBITDA business at scale.

Taking a global view, there are more than 400M SMBs globally, with an ad spend market of $700B+. The overall market opportunity is huge for Zocket.

Revenue Model & Competition

Being a SaaS company, Zocket would follow a subscription-based model, which would result in recurring revenues. A B2B product like Zocket, typically sees low CACs and high retention (provided customer satisfaction), resulting in a high LTV. This should help the company make money in the long run.

At present, SMBs don’t have a single end-to-end platform offering social media-based campaign management software services in India. It has a differentiated tech stack using technology like Contextual Nudging & Targeting, Deep Learning, AI, and GAN, giving Zocket an edge.

The Bigger Picture

The SMB potential in India is huge and for India to reach the $5T economy target, SMBs would have to play a huge role. The number of SMBs have a digital presence has gone up rapidly post Covid and in long run, ~90% of the 65M SMBs in India are expected to have a digital footprint. A perfect time for Zocket, with its superior-tech and team, to tap this vast opportunity.

Lately, it has raised $3M in a seed round led by Kalaari Capital. It aims to expand its product offering and launch its end-to-end ADTech solution for SMBs in India. The company also envisions tapping the global market within the next 2 years – built in India for the World. Considering the vision, team, and macro-economic tailwinds, Zocket is well-positioned to grow beyond leaps and bounds.

Content Credits: Yogakshem Dangi