The Indian packaging industry is faced with numerous challenges, including a fragmented supply chain, lack of digitisation, poor capacity utilisation, complex procurement processes, and pricing abnormalities. Xetgo, a managed marketplace, aims to address these issues by streamlining procurement and providing a seamless experience. With its innovative approach, Xetgo offers a centralised platform that optimises the packaging supply chain, resulting in improved efficiency, cost savings, and enhanced visibility. The platform's key features include order management, centralised operations, streamlined collaboration, and intelligent insights, making it a game-changer in the packaging procurement space.
Xetgo's unique selling proposition lies in its ability to leverage advanced technology to revolutionise the packaging industry. By unifying platforms and employing tools such as manufacturer indexing & scoring, pricing calculators, forecasting engines and credit worthiness engine, Xetgo enables businesses to make data-driven decisions and optimise their procurement processes. Additionally, the platform offers an integrated tool that handles raw material procurement and ancillaries planning, production schedules, inventory management, and predictive forecasting. This comprehensive tech approach reduces manual dependencies, increases operational efficiencies, and provides a seamless end-to-end solution for packaging procurement.
Xetgo has demonstrated impressive traction and growth in the market. With a minimal marketing budget, the company has built an order book of $2.1M. Xetgo has successfully acquired 40 enterprise clients like Waree Energy, FirstCry, SESACare, Kapiva to name a few and achieved high customer retention rates of 92% and high OTIF rates of 98%. The platform's revenue and net margins have shown a consistent upward trend. This traction highlights Xetgo's ability to deliver value to its customers and position itself as a trusted partner in the packaging procurement space.
While focusing on the Indian market, Xetgo also has a long-term vision to expand its footprint globally. The company plans to enter markets such as the USA, Europe, and the Middle East and North Africa (MENA) region. By targeting specific segments within these regions, such as heavily taxed products from China, textile-based and paper packaging, Xetgo aims to tap into the vast market potential. This global expansion strategy will enable Xetgo to leverage its tools, processes, and technology to empower SME manufacturers for cross-border business. Through its SaaS enabled managed marketplace approach, Xetgo provides high visibility into its scalability and potential to develop deeper linkages and stickiness into existing relationships by providing access to working capital financing, BNPL for marketplace clients, carbon credits projects and enabling cross border business.
The founders of Xetgo, Vivek Vatsal, Nikhitesh Henrage, and Saby Varghese, bring a wealth of experience and complementary expertise to the platform. Vivek and Nikhitesh’s combined experience in Sales, Product Development and Business Development will be of prime importance in building relationships in the market and scaling the marketplace. Saby Varghese's expertise in data-driven decision-making and product development further strengthens the platform's tech capabilities. With their combined knowledge and skills, the founders are well-equipped to drive the growth and success of Xetgo in the packaging industry. This is reflected in their ability to onboard marquee clients and get sticky traction without significant marketing initiatives.
The Indian packaging sector is one of the fastest-growing globally, with a projected market size of $200 billion by 2025 at a CAGR of 25%. According to the Indian Institute of Packaging, packing consumption per capita in India has grown 200% in the past decade reaching 8.6 kg pppa in FY20 from 4.3kg pppa. This is still lower than some of the emerging economies like Malaysia (16.7kg pppa), Thailand (15.5kg pppa), Vietnam (12.93kg pppa) and Indonesia (12.5kg pppa) to highlight a few. We at 100X.VC feel there is ample headroom for future growth in industry driven by factors like formalisation of the economy, rising consumption of the Indian middle class, deeper e-commerce penetration in India and increased focus on food processing and manufacturing. A combination of these factors provide Xetgo with a huge market to cater to and build market depth in this industry through linkages like supply chain financing, cross border trade and sustainability transformation.
The packaging OS solution developed by the team is unique. The managed marketplace platform built by the team brings the much needed transparency in the whole procurement process. The creditworthiness assessment piece based on a large dataset will become a huge MOAT allowing them to build a scalable and sustainable business.
Xetgo's innovative managed marketplace approach addresses the challenges and inefficiencies in the Indian packaging industry. With a large and growing market opportunity, demonstrated traction and growth, and a clear vision for global expansion, Xetgo is well-positioned to disrupt the packaging procurement landscape. The company's focus on technology-driven solutions, coupled with its experienced team, equips it to capitalise on the unorganised market and create significant value for its customers. We, at 100X.VC, are excited to be a part of Xetgo's journey and are confident in their ability to drive transformation in the packaging sector.