In the next 2-3 years, IGP sets sights on Rs 1,000 crore revenue: Founder Tarun Joshi

Tarun Joshi, Founder and CEO of Join Ventures and IGP.com, shares insights into the brand’s journey, its operational and delivery strategies, technology adoption, expansion plans, and more

Bengaluru: India hosts over 50 major festivals annually that are widely recognised, and hundreds of smaller or regional ones. Counting local events and community-specific celebrations, the number could exceed 1,000 festivals across the year.

Renowned for their generous gifting traditions, Indians continue to uphold this cultural practice. Festivals, along with personal milestones such as birthdays and anniversaries, are often marked by thoughtful gifts and cherished rituals like midnight cake-cutting.

Recognising a gap in the organised gifting market, Tarun Joshi founded IGP in 2017 under the parent company Join Ventures Pvt. Ltd., as a one-stop destination for gifts, catering to all occasions and celebrations. 

Today, IGP is India’s largest multi-category gifting company, offering nearly 5,000 stock keeping units (SKUs) across categories including flowers, cakes,  gourmet foods, plants, fashion, beauty, home decor, and personalised options. Following seven years of thriving online, the brand launched its inaugural store in Mumbai in February 2024.

In addition to IGP, Join Ventures operates two other brands: Interflora India, a direct-to-consumer (D2C) brand offering premium floral services, and Masqa, a brand specialising in gourmet foods.

In an exclusive conversation with IndiaRetailing, Tarun Joshi, Founder and CEO of Join Ventures and IGP.com, shares insights into the brand’s journey, its operational and delivery strategies, technology adoption, expansion plans, and more.

Edited excerpts…

What is the story of IGP?

The journey began in 1999 with a very different business model under the name Indian Gifts Portal (IGP), which catered primarily to NRIs. In 2017, we acquired the platform and transformed it into an international gifts marketplace. The original Indian Gifts Portal was merged as a smaller segment of this new venture.

Why did you create a gift platform?

India’s culture is distinct from the Western world, marked by a rich tapestry of celebrations and festivals. The country observes 14 major festivals and over 80 smaller ones, alongside 

With a predominantly young population and a strong emphasis on f, we saw an opportunity to create a one-stop destination for all occasions and festivities. 

When did you bring Interflora to India?

Interflora was one of our brand extensions. About three years into the business of IGP, we identified a gap in the luxury flower market in India. As the world’s largest floral company, Interflora was the perfect fit, and we introduced it to India in late 2018. It quickly established itself, capturing the luxury segment as well as the weddings and events market.

How many stock-keeping-units (SKUs) were there in the beginning on IGP?

The business initially focused on catering to major Indian festivals like Rakhi and Diwali, primarily serving NRIs who wanted to send Rakhi and Diwali gifts to their families in India. Over time, we noticed a similar need among individuals who had migrated within India, such as someone living in Bengaluru wanting to connect with family back in Kerala. This desire to stay connected with loved ones became the foundation of our early operations.  

As we evolved, we saw a gap in how people celebrated birthdays at home, prompting us to introduce categories like flowers and cakes. We later expanded to include hampers for everyday gifting needs. Gradually, our offerings grew to cover the 14 major festivals throughout the year, starting with Lohri and Pongal in January, and extending to many others.

Any plans to add new categories?

Recently, we have expanded into home accessories and fashion accessories, recognising the appeal of utility products with a longer lifespan compared to fresh or consumable items. 

This growing category includes products such as perfumes, scarves, and towels. Additionally, we are actively developing the kids’ category to broaden our offerings.

What are your delivery options?

One key insight we gained is that most people remember occasions at the last minute. This makes 30 minute delivery, same-day delivery, midnight delivery or next-day delivery crucial for our business. 

To meet the demand for rapid delivery, we introduced a solution even before the advent of quick commerce: establishing our own dark stores. These 3,000 sq. ft. stores, now operating over 60 in nearly 30 cities, handle end-to-end product preparation. Cakes are baked fresh, flower bouquets are handcrafted, and hampers are assembled on-site. These items are then delivered directly to customers through our dedicated delivery fleet.

How do you manage delivery?

We run our own delivery fleet rather than relying on third-party services. Given the nature of our products, a specialised delivery approach is essential. Cakes, for instance, are highly delicate and easily damaged, while flowers require insulated packaging to maintain their quality. That’s why we handle all deliveries entirely in-house.

IGP’s first EBO was opened in 2024. How do these EBOs operate?

Our first three offline stores opened in quick succession—one in February, another in March, and the third in April—all located in Mumbai. 

These stores are a mix of dark stores and exclusive retail outlets, which can serve as fulfillment centers for online orders and can address the challenge of limited display space in smaller multi-brand retail locations.

Once customers visit a retail store, they often switch to ordering through our app, making repeated store visits unnecessary. These subsequent orders can then be fulfilled efficiently from nearby dark stores. 

How did these stores perform?

We are now nearing the completion of their first operational year, which is typically the timeframe needed for retail stores to achieve profitability. The results so far have been highly encouraging for three key reasons.

First, these stores enhance brand recall, helping customers perceive us as an omnichannel brand rather than just an online presence. 

Second, they generate additional revenue—not only by acting as delivery hubs but also by attracting walk-in customers who make on-the-spot purchases. 

Third, conversion rates in retail stores are high due to the immediate assistance provided by store managers. Unlike online shopping, where customers may have unanswered questions, in-store interactions drive higher intent to purchase.

What is your offline expansion plan for the coming years?

We have plans to open an additional 140 stores over the next three years, expanding our presence to a total of 50 cities. This translates to opening approximately three stores per month. The expansion will include increasing store density in existing cities and entering 20 new cities.

Moreover, we aim to increase our dark store network from 60 to 200 stores across 40 cities within 18 months, enabling faster deliveries and deeper penetration into tier-1 and tier-2 markets.

Which locations are you considering to enter?

We are considering certain regions that remain largely untouched, particularly in southern and eastern India. Key cities where we are currently absent include Kochi, Coimbatore, Surat, Nagpur, Mohali, and Jammu—areas with large populations, including many living outside these cities.

Are these franchise or company-owned stores?

All these stores are company-owned as we heavily integrate technology and centralised supply chain procurement into our operations. Everything is managed centrally, ensuring a completely company-operated and company-owned (COCO) model.

What is the current consumer base of IGP?

We serve approximately 60 million visitors annually, accounting for nearly 40% of the entire e-commerce population.

We have consistently observed nearly 50% year-on-year growth in the consumer base since our inception, and that growth trajectory remains strong. We are always expanding our delivery network to cover more cities and PIN codes, and with the increasing number of people coming online, the overall digital market is growing by over 10% annually.

Despite this, we believe we are only tapping into a small fraction of India’s over 1 billion population that is actively spending.

How do you integrate tech in business?

We are a tech-first company, both on the front end and back end. Our multiple web stores operate on our proprietary technology platform. On the back end, we have integration that tracks every detail, from the time it takes our bakers to make a cake or bouquet, to tracing the journey of each flower stem. 

For instance, every rose stem is barcoded at the farm, enabling us to track its origin, the date it left, storage conditions, and temperature fluctuations. This allows us to address customer complaints with precise information about the product’s journey.

We have also been leveraging generative AI to enhance our operations. This includes creating targeted marketing campaigns, generating personalized content, and improving our call center interactions. Our business is deeply rooted in emotions, so customisation and understanding are critical. Unlike typical e-commerce, where refunds might suffice, our customers expect us to resolve issues because these moments often carry emotional importance. 

Any challenges you are facing in the business?

The main challenges we face are primarily related to supply. With India growing at an incredible pace, the focus is on sourcing high-quality manufacturers, obtaining superior packaging materials, and ensuring efficient transportation. .

Overall, India does not face a demand issue; the real challenge lies in addressing supply-side factors and delivering a consistent experience to consumers. If that is achieved, success follows.

How was the festive season 2024?

This year we have grown by almost about 45% year on year (YoY).

Are you present in any global markets?

Three years ago, we launched in Singapore, marking our entry into the Southeast Asian market and about a year ago, we entered the Dubai market with a dedicated website, ae.igp.com, and established a 20,000 sq. ft. dark store to serve the entire region. 

Our goal is to leverage insights from Dubai to expand further into the GCC market, including Saudi Arabia and beyond. Moving forward, our focus is on growing in both the GCC and Southeast Asia regions.

What is IGP’s current financial position?

We are currently a Rs 400 crore revenue business, growing at an annual rate of approximately 45-50%. Over the next two and a half years, we aim to reach Rs 1,000 crore in revenue.