Vertical e-commerce is a safe bet than capital intensive horizontals: Mukul Arora, SAIF Partners

With big bets placed in various niche and vertical plays within ecommerce, Mukul Arora, Principal at SAIF Partners in a discussion with Ashish Goel, founder and CEO of Urban Ladder says why he would rather make a bet on differentiated vertical e-commerce than capital intensive horizontals.

Mukul Arora:

Horizontal e-commerce players will always compete on assortment of products, convenience and price. Also, they will remain more capitalised than vertical plays. Therefore, vertical players have to go after complex categories and create highly defendable business models. We are big believers in internet-first brands. Furniture is a complex category but if executed well, it's a defendable.

Ashish Goel:

We look at the category more from a perspective of home rather than furniture. We are looking at what goes into making a home beautiful. You need the products and the inspiration to put them together.

Mukul Arora:

Is services a natural extension for Urban Ladder in the home space?

Ashish Goel:

We are essentially a tech company but would like to give users the power to design their homes. We are building a business where users can create a dream home on the platform.

Mukul Arora:

Services space is a highly un-organised and large market with no price transparency. Services are an attractive addition for Urban Ladder.