End of "dark stores"? So, what's next?

Quick commerce is passe, dark stores are going to be history. Welcome KiranaPro, the new-gen shopping giant-in-the-making that will ride on over 13 million kirana (small retail outlets) stores spread across the length and breadth of India.

"The vision behind partnering with kirana stores is to empower small businesses with cutting-edge technology to compete with larger players," says Deepak Ravindran, Co-Founder and CEO, KiranaPro. "Kirana stores are the backbone of the Indian retail ecosystem, and with minimal digital intervention, they can transform their operations, enhance customer satisfaction and grow their revenue."

The acquisition of K.pro, a premium single-letter domain from Network Solutions, according to Ravindran, is a statement of commitment to innovation, simplicity and creating a global impact with the brand. "As the founder of KiranaPro, I couldn’t be more excited about this achievement. Previously known as KiranaPro, our brand has now evolved to embrace this shorter, sharper identity. A single-letter domain isn’t just rare - it’s powerful. It signifies authority, trust, and a bold vision for the future."

There have been reports that over 200,000 kirana stores have closed over the years due to intense competition from q-commerce firms like Blinkit, Zepto, Swiggy Instamart and BB Now. More serious players are now looking at the market - Flipkart Minutes and Amazon Now. The competition is only getting fiercer, and into the fire steps in KiranaPro with a key differentiator: they are betting on "bright stores" and not "dark stores".

Huh? What's a bright store? "Simply put, they are the regular kirana stores we see in every neighbourhood," says Ravindran. "Is there an actual need for any dark stores when we have so many bright stores across the country?"

The emergence of q-commerce has definitely disrupted traditional retail practices. "Large, well-funded platforms are capitalising on advanced logistics, data analytics and digital-first models to offer convenience and speed. This shift has created significant challenges for kirana stores including operational inefficiencies, limited access to modern technology and intense competition. k.pro seeks to address this gap by leveraging innovative technology and adapting a scalable, asset-light approach. k.pro will provide tools like voice-enabled ordering systems, predictive analysis for inventory management and integration with the Open Network for Digital Commerce (ONDC)," says a playbook released by KiranaPro.

Betting on ONDC
ONDC is a government initiative, and its primary goal is to increase the reach and penetration of digital commerce across India, the playbook added. "ONDC acts as an infrastructure that connects existing digital commerce platforms and applications. Businesses, platforms, and sellers can voluntarily choose to join the network, allowing them to be discovered and engaged by consumers through any ONDC-enabled application.

"ONDC works in three main parts: First, there are the apps that people use — shopping apps for customers to buy products, and business apps for sellers to list their goods. These apps are connected by gateway systems that help match buyers with the right sellers.

"Second, there's the technical backbone that allows different apps to work together smoothly and keeps track of who's participating in the network.

"Third, there are clear rules about how everyone should operate on the network, including how to handle customer data and resolve any problems that come up. In consultation with network participants, ONDC has developed rules and code of conduct for various activities that are performed by the network participants starting from implementation to run-time. These rules are published as ‘Network Policies’ and continuously updated as the network evolves."

KiranaPro comes in
KiranaPro bridges the gap between the traditional strengths of kirana stores and the operational efficiencies of q-commerce platforms. The playbook says: "Rather than competing with q-commerce giants, KiranaPro positions itself as a partner and enabler for kirana stores, integrating them into the quick commerce ecosystem.

"KiranaPro's significance extends beyond its business strategy. It addresses broader challenges posed by the rise of q-commerce such as the decline of traditional retail, increasing market consolidation, and the loss of local employment opportunities. By positioning kirana stores as central nodes in a digital retail network, KiranaPro provides a sustainable alternative to the disruptive impact of q-commerce.

"Unlike dark stores, which require significant real estate and energy investments, K.pro's decentralised model minimises environmental impact. By leveraging existing store infrastructure, the platform reduces the carbon footprint associated with large-scale warehousing and transportation. This holistic approach ensures that KiranaPro not only strengthens kirana stores but also promotes a sustainable, inclusive, and community-driven future for retail."

KiranaPro also offers the advantage of AI for efficiency and personalisation, even in small-scale businesses. "Kirana stores are increasingly open to tech adoption, as seen with the rise in digital payments and inventory management tools. AI simplifies complex processes like demand forecasting and customer engagement, making it easier for kiranas to scale sustainably," says Ravindran.

Damodar Mall, CEO, Reliance Retail Grocery backs the KiranaPro view: the most convenient and personalised way the consumer in India is served is by the kirana store.

"The mom-and-pop shop has accumulated learnings that are very rich and real about the preferences of families. There’s personalisation of the language to speak, the products to suggest. In practice, it becomes predictive as well. But it’s not modern," Mall says in an interview with Bain & Company.

"So, two things will happen with the democratisation of digitalisation. I believe mom-and-pop stores will also get modern and digital. And the larger corporate store providers will aspire to be as personalised and as convenient as the mom-and-pop stores, at scale, with the use of technology."

Quick home delivery, in one form or the other, will be significantly more digitised, according to Mall. "It is already. The eventual model - whether it is built out of dark stores, existing supermarkets or kirana stores participating in fulfillment - will play out downstream. And who will win - that will also emerge downstream."

KiranaPro's focus is on "optimising our tech stack, scaling our reach, and creating value for kiranas through personalised solutions," says Ravindran. "Unlike competitors with broad focus areas, our niche approach allows us to address specific pain points of kirana stores, creating a loyal partner base."

Kirana stores are increasingly open to tech adoption, as seen with the rise in digital payments and inventory management tools. AI simplifies complex processes like demand forecasting and customer engagement, making it easier for kiranas to scale sustainably.
-Deepak Ravindran, KiranaPro

What's different here?
Ravindran says: "Our voice-enabled cart system allows customers to place orders effortlessly via voice commands, breaking language and literacy barriers. This feature is designed to be intuitive and tailored for regional languages, which we believe gives us a unique edge. While competitors like Blinkit focus on urban tech-savvy audiences, our solution is centered on inclusivity, catering to diverse demographics."

The business model is also different - KiranaPro is offering stores two options - an annual fee of Rs 1 lakh per store or Rs 20 per lead...the model is being fine tuned, and will keep changing as the business matures, says Ravindran.

KiranaPro has successfully raised seed funding, with participation from early-stage venture capital firms such as Turbostart, Unpopular Ventures, Blume Founders Fund and Snow Leopard Ventures. Several prominent angel investors also contributed to the funding round, according to a report by CNBC TV18.

KiranaPro launched operations in Thrissur, Kerala recently, and is waiting to go national on the ONDC platform soon.