Business model
Who gets paid when you buy a handicraft
Today: a ₹3,000 product₹3,000
- Artisan · ₹300 · 10%
- Trader · ₹500 · 16.7%
- Wholesaler · ₹700 · 23.3%
- Retailer / brand · ₹1,500 · 50%
On Kaari: a ₹1,800 product₹1,800
- Artisan · ₹1,260 · 70%
- Shipping & packaging · ₹126 · 7%
- Platform operations · ₹216 · 12%
- Marketing · ₹90 · 5%
- Cluster head · ₹45 · 2.5%
- Payments · ₹63 · 3.5%
| Share | On a ₹1,800 order | Goes to |
|---|---|---|
| 70% | ₹1,260 | The artisan's bank account, untouched |
| 7% | ₹126 | Shipping and packaging, at cost |
| 12% | ₹216 | Kaari's operations pool (Kaari's only revenue) |
| 5% | ₹90 | Marketing |
| 2.5% | ₹45 | The cluster head |
| 3.5% | ₹63 | Payment gateway and store software |
At ₹216 an order, Kaari covers early fixed costs of about ₹20,000 a month at roughly 93 orders, about three a day.
| Plan | Year 1 | Year 2 |
|---|---|---|
| Clusters | 3 → 12 | 12 → 25 |
| Artisans | 25 → 130 | 130 → 260 |
| Orders | 4,300 | 16,800 |
| Orders a month by year end | 750 | 1,900 |
| Average order | ₹1,800 | ₹2,000 |
| Sales (GMV) | ₹77.4 lakh | ₹3.36 crore |
| Operations pool (12%) | ₹9.29 lakh | ₹40.32 lakh |
| Operating costs | ₹7.82 lakh | ₹24.00 lakh |
| Surplus | ₹1.47 lakh | ₹16.32 lakh |
Projections from our financial model. Seed capital needed: ₹5.5 lakh (platform ₹3 lakh, first three clusters ₹80,000, label printers ₹30,000, ONDC and API integrations ₹40,000, content ₹40,000, buffer ₹60,000).