Unicommerce CEO Kapil Makhija on tech innovations, omnichannel trends in e-commerce

Founded in 2012 and went public last month, Unicommerce is an e-commerce Software-as-a-Service (SaaS) startup that streamlines inventory management across various online marketplaces.

In an interview with TechCircle, Kapil Makhija, MD & CEO of Unicommerce eSolutions, shared insight into how the company is harnessing technology to boost its services, the role of advanced technologies like artificial intelligence (AI), and the influence of omnichannel retailing on their operations. He also shared his perspectives on the evolving trends in e-commerce and Unicommerce's strategic plans for future growth. Edited excerpts:  

How does Unicommerce utilise technology to enhance its services? 

We are a tech company that helps brands sell online. When you place an order as a consumer, you see the website and the delivery person who brings your package. Our technology powers everything that happens between those two points. Brands face many challenges in this process, and we offer a stable and scalable platform to handle these complexities, allowing them to focus on their core business while we simplify e-commerce for them. 

In e-commerce, technology is the key driver. The right technology determines the customer experience. In today’s competitive market, our platform ensures brands can provide faster, error-free shipping, with real-time updates on order processing after the purchase. We aim to be a one-stop shop for e-commerce enablement, currently focusing on the post-purchase operation management. 

The e-commerce value chain has three layers. First is customer engagement, where platforms like Shopify, Flipkart, and Amazon allow customers to place orders. The second layer is transaction processing, which includes everything that happens after the "buy" button is clicked. This involves order fulfillment decisions, stock management, invoicing, priority picking, and handling returns. We manage these processes for brands. 

The third layer is order fulfillment, from dispatch to delivery, where platforms like Delhivery and Xpressbees come in. Technology is vital throughout the entire e-commerce chain, with the transaction processing layer serving as the backbone for brands. E-commerce has become a major growth channel, and we act as a pseudo-ERP (Enterprise Resource Planning) system, helping brands manage their data effectively. I hope this explains our platform's capabilities. 
 
What role does AI, machine learning, or other advanced technologies play to make your platform more efficient and effective? 

Our goal is to simplify e-commerce selling by handling the complexity of brands. Our platform is highly scalable, processing over 850 million order items annually, which is about three million daily. We have a client base of more than 3,600 clients across various industries, including fashion, beauty, FMCG (Fast-Moving Consumer Goods), and both traditional and digital brands like Marico, Emami, Lenskart, and Mamaearth.

Our middleware seamlessly integrates with different tech ecosystem players, making it flexible and stable at scale. With e-commerce rapidly growing, particularly in India, there's significant room for expansion. For example, India processed 4.5 billion shipments last year, while China processed over 130 billion. As e-commerce expands, complexity increases, and our platform is designed to handle that growth securely and flexibly.

E-commerce, once a niche channel for many brands, is now mainstream. We regularly upgrade our tech stack to meet new demands, so brands can manage everything related to e-commerce from one platform. We’ve also introduced an AI tool, UniGPT, to help sellers stay updated with the latest trends. This tool is available for free on our website.

Additionally, we offer logistics solutions, like AI-powered courier selection and order allocation to the nearest warehouse or store. Our use of AI and machine learning focuses on practical applications to simplify e-commerce operations, ensuring we remain a reliable partner for brands. 
 
What trends do you see shaping the current e-commerce in India? 

The trends are evolving quickly. A few years ago, the focus was not so much on omnichannel. Now, not only established brands like Fab India and Paragon but also newer brands like Sugar and Rare Rabbit are using our platform for omnichannel. Digital-first brands are expanding offline, and traditional brands are going online to directly engage with customers. 

In recent years, the key focus has been on providing customers with an omnichannel experience. Over the past year, e-commerce has gained prominence, and our tech stack aims to be a one-stop solution for e-commerce in India. We enable brands to maintain customer trust and manage their online and offline commerce through a single platform.

We are also observing several emerging trends. First, there’s growth in smaller towns, with increasing online orders from tier-2 and tier-3 cities. Second, we see a shift toward digital e-commerce, including traditional websites and new concepts. Third, the trend of omnichannels continues, with technology enhancing both online and offline customer interactions, such as the use of Augmented Reality (AR) and Virtual Reality (VR) in offline retail. Lastly, many Indian brands are going global, expanding their reach beyond India. 
 
How do you see the role of SaaS in the broader digital transformation journeys of any kind? 

Let me start by discussing e-commerce. As I mentioned, e-commerce is rapidly evolving, which is why brands prefer cloud-native and SaaS platforms like ours. They know they'll always stay updated with the latest changes. Using on-premise solutions makes it hard for them to keep up with the fast pace of e-commerce changes. 

We charge a nominal fee for using our platform. Our enterprise customers, which account for about 90% of our revenue, pay a monthly subscription that includes a set number of transactions. Once they exceed this quota, they pay based on their additional usage. This model benefits both sides, allowing brands to scale without it becoming a burden. As a SaaS provider, this transaction-based approach builds trust, and our solutions tend to be long-term commitments for our clients. 

Our platform often becomes like a nerve center for brands in managing their e-commerce needs, leading to long-term partnerships. This trend has also reached retail, which has traditionally relied on legacy systems. With Omnichannel strategies blurring the lines between online and offline shopping, retailers are upgrading their systems to offer a seamless experience. 

Today, many point-of-sale (PoS) systems are moving to SaaS, making integration with online systems easier. This shift is driven by customer demand for Omnichannel experiences, especially in areas like fashion and accessories. Brands are improving delivery speed and customer experience to meet these demands. Ensuring a smooth, error-free process is crucial for building customer loyalty, which has now become a basic requirement. As customers grow more impatient, they expect quick access to products. This has led many brands to partner with SaaS solutions to meet these expectations and thrive in a competitive market. 
 
How has the rise of omnichannel retailing affected your business, and how will your company help clients adapt to this trend?

We launched omnichannel about 3-4 years ago to help businesses integrate their online and offline operations. Our solution connects with PoS systems, ERP platforms, and online demand channels. This allows for use cases like "ship from store”, where an online order placed by a customer in a specific location, such as Thane, can be fulfilled by a nearby store. We also enable "endless aisle" scenarios if a customer visits a store and a desired item is unavailable in their size, the store manager can order it for home delivery. 

As e-commerce continues to evolve, adding more complexity each year, our platform simplifies the process for brands by managing these challenges. This is why many brands choose our SaaS platform to streamline their operations and adapt to the growing demands of e-commerce.

Given the competitive landscape of e-commerce enablement platforms, what do you believe sets Unicommerce apart from its competitors? 

We offer a comprehensive solution for managing all e-commerce supply chain challenges, serving as the central hub for backend e-commerce and retail operations that support the daily functions of brands. Our platform is designed to meet the diverse needs of businesses across various industries. It can address specific challenges and adapt to industry requirements, ensuring that both online and offline retailers of all sizes can efficiently manage their operations.

For example, pharma brands benefit from features like expiry management, while fashion brands require faster inventory updates to keep up with rapidly changing trends. Unicommerce’s platform is quick to implement, with a plug-and-play setup that can be easily customised to fit the specific needs of any business.

Our pricing is cost-effective, offering a subscription-based model with usage-linked pricing. Brands can opt for higher plans as their business grows or their needs change. With a secure and reliable network, Unicommerce integrates with over 250 industry solutions, including marketplaces, logistics providers, ERP, PoS, and accounting software. This extensive integration enables us to deliver industry-specific solutions backed by a deep understanding of market demands.

Looking ahead, are there any significant investments Unicommerce is planning to make in specific technologies?

Unicommerce is a SaaS company that provides a full range of solutions to manage e-commerce operations for brands, retailers, and logistics providers.

Its technology architecture is built on ongoing research and development. Along with improving existing products, the company plans to develop new ones. Recent additions include UniShip for post-shipment management, UniReco for marketplace reconciliation, and UniGPT, a generative AI tool.

Unicommerce will focus on enhancing integrations with quick commerce platforms, improving returns management, and meeting the needs of current clients to guide future product development.