Interview with Rajiv Kumar, Entrepreneur & Founder of Dream Ticket
Mr Rajiv Kumar, Founder and Mr Vinay Saini, Co-founder of Dream Ticket started the company’s operation in June 2018 with an objective to deliver happiness in the form of gold/diamond jewellery to daughters and wives of the low income group.
Till now, the company has invested Rs 82 lakh and has 4500+ happy customers associated with them, through their Mobile Apps.
Dream Ticket has 3 physical stores as of now in Delhi – in Bawana, Holambi & Shahabad Diary and is now planning to raise funds for expansion across India. The company’s last three year’s revenue was Rs 1.35 crores (FY 2022-23), Rs 74 lac (FY 2021-22) and Rs 55 lac (FY 2020-21).
Dream Ticket is a startup company that has come-up with a unique online subscription- based, group-buying business model to ease buying gold & diamond jewellery for lower income families.
Dream Ticket forms a group of 10 to 15 subscribers who subscribe for a fixed number of months by paying a fixed monthly subscription, through an Android App on their mobile phones (hence, no need to visit any store).
Each month a new name of customer is pulled out through their custom software and that person can buy gold/diamond jewellery of their choice of the total amount that he/she will pay till the end of their subscription tenure.
Can you please provide an overview of Dream Ticket and how it works?
Rajiv Kumar: Dream Ticket is an online, subscription-based group-buying business model designed to make the purchase of gold and diamond jewellery more accessible to low-income groups.
The concept involves forming a group of 10 to 15 subscribers who commit to a fixed number of months by paying a monthly subscription fee. For instance, a group of 12 individuals might contribute Rs. 2000 per month for a duration of 12 months.
Each month, Dream Ticket’s custom software randomly selects a subscriber’s name from the pool. The chosen subscriber is then able to order jewellery worth Rs. 24000, including making charges.
This pooling process continues until every subscriber has received their jewellery. Throughout the tenure, subscribers will continue to pay Rs. 2000 per month after receiving their jewellery delivery.
To summarise, Dream Ticket operates on a subscription model, where participants contribute a fixed monthly amount for a specific duration to form a group.
Through a random selection process, subscribers take turns ordering jewellery, and the process repeats until each member has had a chance to make a purchase.
How did you come up with the idea for this online subscription-based, group-buying business model for gold and diamond jewellery?
Rajiv Kumar: In India, low-income individuals face difficulties in purchasing gold jewellery despite sales, promotions, and discount offers.
This issue remains prevalent and unrecognized in society. Customers are required to bring 100% cash for their purchases, which has led to numerous feedback expressing the need for a transparent and trustworthy business model that provides convenience in the purchasing process.
What differentiates Dream Ticket from traditional jewellery buying methods? How does your platform create ease of buying for customers?
Rajiv Kumar: Dream Ticket enables customers to amplify their purchasing power by 10-15 times through a group subscription model.
Unlike traditional approaches that emphasize 100% cash payment, Dream Ticket disrupts the market with a credible and transparent business model that prioritizes the ease of buying for low-income individuals.
Jewellers may adhere to a cash-only approach, Dream Ticket’s innovative solution empowers people to make purchases according to their desires and preferences.
Could you explain the benefits that subscribers enjoy?
Rajiv Kumar: Dream Ticket significantly enhances the purchasing power of its subscribers, multiplying it by 10-15 times.
With a BIS hallmark license in place, Dream Ticket ensures that it exclusively delivers hallmark jewellery to its customers.
By providing a seamless buying experience, Dream Ticket eliminates the need of subscribers to worry about promotional sales, discounts, or buy-back offers.
Subscribers can confidently make their purchases with 10% cash in hand not 100% cash without any concerns, enjoying the convenience and peace of mind that Dream Ticket offers.
What kind of gold and diamond jewellery does Dream Ticket offer? Are there any specific criteria or standards you follow to ensure the quality of the products?
Rajiv Kumar: Dream Ticket offers 100% customized jewellery to its customer, which they choose within their budget. We follow a per carat choose, Dream Ticket deal in all specified carat as per govt norms.
How do you handle the logistics and shipping of the purchased jewellery? Can you elaborate on the process to ensure a smooth and secure delivery?
Rajiv Kumar: Dream Ticket has third party agreement with jewellery manufacturers to manufacture the design as per our customers’ preference. Our internal team care of logistic & delivery to customer.
Could you provide some insights into the pricing structure and affordability of the jewellery available through Dream Ticket? How do you ensure competitive prices?
Rajiv Kumar: My revenue model is same as any other jewellery business. Dream Ticket earn around 12 to 15% as making charges on jewellery.
And Dream Ticket expect this margin to go up to 25% as volume increase. To make it more clear, if total gold value is Rs 10000 & we charge making over gold value, which is 12%, now making charge is Rs 1200 & 3% GST( Rs 336). Now total invoice value is Rs 11536.
Are there any limitations or restrictions on the subscription or group-buying model?
Rajiv Kumar: Yes, any subscriber can take up to maximum 5 nos. of subscriptions at a time. In case of an old customer, it can go up to 8 subscriptions.
In a competitive market, what strategies or marketing techniques does Dream Ticket employ to attract and retain customers?
Rajiv Kumar: Our strategies are simple – it works like a cockroach model to spread in market. We target house-wife to bring customers & our retention ratio is up-to 60%.
What inspired you to enter the jewellery industry with a unique business model like Dream Ticket?
Rajiv Kumar: Though coming from a humble background, I had a desire to gift my wife a diamond ring on her first birthday after our wedding.
However, with only Rs 10000 in hand and a ring costing over Rs 55,000, I struggled to find a feasible option despite exploring various jewelry shops.
Most stores had sales promotions and discounts, but they required full payment upfront. As my wife’s birthday was only five months away, taking a loan with high-interest rates or processing fees was my only option but not feasible.
Unfortunately, I was unable to fulfill my wish and missed a precious moment in my life. This emotional conflict lasted for years.
This incident kept haunting me. And I thought that there must be many husbands/fathers like me, who want to give gifts to their wives/daughters.
After surveying 1500 people from low-income groups, I discovered that 645 of them had also experienced similar unfulfilled wishes.
With over 400 million people in India living in this social segment, I felt compelled to solve this unseen problem in society and hence, came up with Dream Ticket.
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