Hiring has been in a state of flux since the beginning of the Covid-19 pandemic. Recruiters have wrestled with evolving options, from fully remote, tech-driven interviews to in-person interactions triggered by the current back-to-office mandates. Jobseekers, too, have seen tectonic shifts, as the ‘Great Resignation’ has given way to mass layoffs, with tech giants amid widespread cuts. But despite a volatile job market, getting suitable candidates through the door remains as challenging as ever. Consequently, companies and hiring managers want to future-proof recruitment and build a talent pipeline efficiently and cost-effectively.

A successful talent hunt has many components, from searching for the right candidate to building an engaging application experience to offering personalised growth plans. Moreover, staffing needs to be fast and scalable, or companies tend to lose out on top talent, revenue and brand credibility. In essence, nothing works better than swiftly finding best-matching candidates for job roles and getting tasks automated to stay ahead of the curve.   

Ajay Goyal, a fashion student at Amity University, saw the other side of the coin, though, when volunteering for his university’s campus-to-corporate programme in 2019. At the time, it was evident that traditional hiring would require fixing due to its lengthy cycles, delayed responses to candidates and overall impersonal approach that failed to attract or cater to top talent. 

Not one to let things drift, Ajay approached his father, Dr Ravinder Goyal, who had nearly three decades of professional experience in vocational training and placement. Together, they set up Erekrut in 2020, which uses advanced technology to connect recruiters,  jobseekers and campuses on a unified platform, automates tasks and streamlines the hiring and placement process to mitigate delays.

A key feature of this platform is a remote pre-hiring assessment tool that identifies the best-fit talent for a specific job role. A recruiter can customise the pre-employment test based on their requirements and quickly determine who has met the threshold, which will speed up their candidate search. The platform also uses ethical AI and data analytics to evaluate job applications and match those with suitable openings for bias-free candidate matching. Earlier, hiring teams had to sift through résumés manually for hours and might still miss an excellent candidate.  

Erekrut’s hiring tech solutions have resonated well with employers/recruiters (B2B segment) and jobseekers (B2C). It claims a talent pool of more than 4.6 Mn and has partnered with 1.7K+ companies, including industry giants like Paytm, Zomato, Amazon India, Swiggy, Myntra, Indigo and more. The startup has also onboarded 700+ academic institutions to facilitate campus recruitment. 

The startup focusses on several industry segments such as marketing and advertising, consumer service, human resources, programme development, sales and more. 

In May 2022, the startup raised INR 35 Cr in its pre-seed funding round, which included an INR 1 Cr fund infusion from its founders. 

As part of its ongoing bridge funding round, Erekrut plans to raise INR 2.5 Cr in the next two months and another INR 25 Cr in the next six months in its pre-series A funding round to scale and grow.

How Erekrut’s Proprietary AI Tech Matches Employers With Top Talent

Using AI algorithms, Erekrut has developed its proprietary solution for precision-matching candidates with jobs that fit their skills and preferences. 

At the B2B level, access to these talent analytics is vital for companies and recruiters to ensure fast candidate screening and spearhead their organisations’ growth. They can customise the assessment process, guide candidates through different assessment levels. Additionally, one can manage candidate profiles using the platform’s application tracking system (ATS) and can effectively communicate via SMS and email by sending notifications using Erekrut tools. Erekrut has also set up a student and alumni management tracker system similar to ATS to enable hassle-free campus recruitment and placement. 

Here is a look at how jobseekers and recruiters can leverage the platform to make hiring easy.

A jobseeker’s journey on Erekrut: After signing up, one must create a detailed profile, which will feature qualifications, skills, experience, preferences, personality traits and learning styles. Next, they can explore the featured jobs and the pre-employment assessment tool on Erekrut helping jobseekers gauge their aptitude and benchmark their competence. When candidates write the pre-hiring test, their responses are automatically analysed, providing the recruiter insights into their skills and readiness for the job. This leads to a faster and more efficient hiring process.

Ajay claims that the startup’s integrated database has 102K questions customised for 1.29K distinct job roles to deliver comprehensive assessments. In the next four months, the startup aims to create another set of 80K questions for 1k job roles. The startup deep-dives into candidate data and uses analytics to provide a nuanced understanding of a candidate’s suitability, the CEO added. Using the premium features, candidates may even reach out to recruiters directly through SMS-to-Recruiter.

A recruiter’s journey: Recruiters must register and set up their profiles to post jobs on Erekrut. The platform offers an ATS to facilitate quick and efficient application screening while hiring professionals can customise pre-hiring assessments or add tests to conduct a thorough evaluation of candidates. The startup provides candidate data analytics to offer data-driven insights, enabling hiring teams to refine their strategies. Additionally, recruiters can use communication tools to interact with applicants and potential candidates for better reachout. Once the selection process is complete, a recruiter can extend a job offer by issuing a letter of intent (LoI) directly through the platform, expediting the hiring process.

The platform has also developed Campus Connect, a feature connecting recruiters with educational institutions for hiring freshers. Some of the features of Campus Connect are SMS and email notifications to connect with potential candidates, access to a vast pool of pre-hiring assessment questions (100k+), a library of 2500+ job description templates, advanced filters in ARDEX (advanced candidate database search) for precise candidate searches. 

Revenue generation: Erekrut generates revenue from B2B and B2C users – recruiters, campuses and jobseekers – through various subscriptions and service offerings. For recruiters, it offers four subscription plans: Amateur (free for 90 days), Startup (INR 8K for 365 days), Pro (INR 15K for 180 days) and Enterprise (INR 35K for 365 days). These plans enable job posting, email alerts, access to applicants/talent pool and other plan-specific features.

Campuses can use the Campus Connect tool for free or pay for a Pro plan (INR 25K for 180 days) to access limited company invites.

Jobseekers can opt for Pro Candidate (INR 300 per month) and Erekrut Premium (INR 500 per month). They pay for job applications, video resume uploads and contacting recruiters via SMS. 

Erekrut plans to earn from promotions and advertisements on its website, expanding its revenue channel.

From Initial Hiccups To Product-Market Fit: How Erekrut Hit Its Hiring Nous

Even before the beta version was launched in 2020, the Goyals were aware of the fundamental challenges the startup would face – namely, market penetration, rapid adoption of a tech-driven hiring process and creating brand credibility among corporate users and jobseekers. A lack of resources in terms of workforce and finances also hit them hard.

It meant that the new kid on the HRtech block had to be frugal and identify the areas that would yield the highest return on investments. Given the ground realities during the pandemic, Ajay knew that ‘online’ and ‘remote’ would be the buzzwords, at least for the next few years, and companies ready to recruit would prefer tech-driven platforms and automated tools to future-proof hiring. In essence, falling behind in technology could hinder Erekrut’s growth potential.    

Keeping up with the latest technology trends was a challenge in pandemic times. However, Ajay decided to counter it by instilling a culture of continuous learning within the organisation. This involved organising regular training sessions and workshops to keep the team up-to-date with the latest developments in the hiring sector and maintain a competitive edge in the market.

Building brand credibility was not easy, though, for a new player. But throughout Erekrut’s journey, its founders have focussed on a positive user experience and robust customer support to ensure operational excellence. The CEO recalled how customer care responded with a swift resolution as soon as a glitch occurred. 

“We want our users to have faith in our UX design. A smooth, seamless user experience keeps people engaged, leading to greater usage and adoption,” he added. 

Ajay is optimistic that Erekrut will scale up without compromising user experience due to increasing traffic. To ensure excellent UX even during traffic spikes, the startup has invested in robust backend infrastructure and adopted scalable cloud solutions. 

Achieving a successful product-market fit required strategic marketing campaigns, extensive digital outreach and constant product enhancement powered by feedback from Erekrut’s fast-expanding user base, according to Ajay. 

For instance, when the platform was in alpha, it started reaching out to corporations and campuses via digital giants like Google, Meta and the like. As technology increased its reach and fit as a hiring enabler, Erekrut saw daily registrations of jobseekers between 500 and 1K and more than 15K individuals started writing assessment tests.

How The Future Will Pan Out For Tech-Assisted Smart Hiring

In a global market flooded with HRtech/worktech solutions, technology is dramatically changing the entire hiring process, and the number of digital job searches is growing phenomenally. For instance, 61 Mn users look for jobs on LinkedIn every week and Erektut’ founder-CEO, Ajay Goyal, puts it at 300 Mn per month on Google. More importantly, almost all job search portals now offer premium services to corporate houses for screening and vetting candidates.

Globally, the online recruitment tech market is estimated to grow from $11.9 Bn in 2023 to $30.9 Bn by 2030. By that time, India will be home to 1 Bn working-age adults, according to an EY estimate, which is likely to drive tech-assisted smart hiring further.                

The Erekrut CEO thinks there will be excellent growth opportunities in the near future and has set his eyes on ambitious goals. By the end of Q4 FY24, the startup aims to reach 10 Mn jobseekers from the current 4.6 Mn, a 117% jump, and 100K daily visitors. It will also engage with 3K+ recruiters and 2K+ academic institutions for corporate and campus hiring. 

Additionally, it will expand its network through strategic partnerships, participate in career fairs and drive word-of-mouth marketing to effectively promote the platform among students, alums and campus hiring teams. These endeavours are part of Erekrut’s multifaceted strategy to drive growth.

Ajay thinks that in the next two to three years, the hiring landscape will witness significant transformation driven by next-generation AI/ML, virtual reality and augmented reality, which will enhance UX for jobseekers and recruiters. 

“Erekrut will further integrate various methods such as psychometric, adaptive and gamification assessments to improve its measuring standards,” he added.

Industry experts also believe that future focus will be more on the quality of automated solutions, and companies with limited resources may find it challenging to match up.

“Think of the era of print resumes and how candidates thrived on years of experience. Now it is all about skill acquisition and problem-solving, how fast new skills are acquired and contextually used,” said the senior manager of a Pune-based HRtech firm. 

“Similarly, companies specialising in hiring tech will need to track not only a candidate’s competence and aptitude but also their potential cultural fit. The use of new-age tech like generative AI can play a pivotal role here.”        

Emerging at the forefront is an overarching trend where big players with deep pockets are creating unified platforms for finding jobs and hiring talent – all in one place. Competing with the likes of LinkedIn, Indeed, Glassdoor, or Naukri could be tough for Erekrut, ZingHR, HYRGPT, CredoHire and the rest of the innovative startups trying to reimagine recruitment as we know it.

Can they emerge as powerful disruptors?  

The post How HRtech Startup Erekrut Is Changing The Way Companies Hire, People Job-Hunt appeared first on Inc42 Media.

As the world has become an interconnected global village, it not only poses fewer barriers to trade and commerce but also drives the free flow of culture and education. But there is a catch. Although technology has become ubiquitous in new-millennium learning and students can access a few courses online, higher education from premier institutions has yet to witness the much-desired blurring of borders. In-person classroom learning is still the best option for aspiring youth keen to pursue the global curricula of their choice from world-class foreign universities.

Closer home, India has seen a record number of students heading out to study abroad. According to government data, more than 13 Lakh students were studying in 79 countries in 2022, and the number will likely reach 18 Lakh by 2024, per a Redseer report. Although most global universities spend a sizable sum to attract international students, the US remains the most preferred destination for Indians, and the country hosted more than 4.65 Lakh students in 2022. 

According to industry experts, the attraction of the elite Ivy League, along with economic and societal factors (career growth, better pay, quality of life), initially triggered the exodus. Currently, India is the second-largest sending country to the US after China, underscoring the young people’s intent to grow globally. However, making the cut becomes increasingly difficult due to a competitive and complex selection procedure.

This is where Athena Education comes in with its holistic solutions, preparing applicants for admission to top university programmes while helping them stay aligned with their passion and educational interests. The aim is to ensure that all their goals and aspirations reach a culmination through these courses and the promise that these students bring is fully realised in the long run. This is an innovative approach, unlike many overseas admission consultancies that rarely explore students’ interests or activities to understand their life’s purpose.         

The decade-old consultancy was set up by Princeton University graduates Rahul Subramaniam and Poshak Agrawal. It claims to have trained and mentored more than 800 Indian students, helping them get into their preferred universities across 15 countries. Students also get help with academic scores and English proficiency, which is needed for writing killer essays and compelling letters of intent. In 2022, as many as 68 Athena Education students were accepted by Ivy League schools, while 30 were admitted to MIT, Stanford University, Caltech and 20 other universities in 2023. 

A Leap Of Necessity From Offline To Online

Upon their return to India, the founders began to mentor the children of their friends and relatives for overseas admissions. At first, it was done informally, but the duo soon noticed that the country’s startup ecosystem was picking up the pace. They swiftly transitioned their offerings to a structured business and Athena Education was born. 

The onset of Covid-19 in 2020 put international admissions into turmoil as borders closed and lockdowns were extended to cope with multiple pandemic waves. Undeterred by the massive disruption, Athena Education shifted to the online mode and focussed on building student profiles and their applications to stay prepared for the future. 

Once the offline mode started picking up, the startup invested extensively in state-of-the-art facilities, including an in-house robotics laboratory, a design studio and a recording studio to provide students with hands-on learning experiences. 

Recalling the chaos, Subramaniam said the real challenge lay in helping students transition from offline to online learning as the seismic shift psychologically impacted them. To address this, Athena Education created engaging online modules and tailored its coaching style to service individual requirements. 

In addition, it started a YouTube video series titled Your Friendly Neighborhood College Counselor in 2023 to explain the intricacies of college admissions to its target audience. Clearly, the online reachout has worked well as the student community has grown 2.5x and the team strength has gone up 5x to manage the growth. 

A Deep Dive Into Athena Education’s Training Modules & Core Philosophy

Talking to Inc42, Subramaniam detailed the eligibility criteria to qualify for an Athena programme, the screening tests post onboarding and the mentor-driven preparation procedure. 

To begin with, students approaching Athena Education must secure a minimum of an aggregate  80% of all subjects and qualify in the interview conducted by Team Athena to gauge their potential.

During the orientation week, selected students have to write two psychometric tests. One has been designed to gauge their interests, strengths and goals, while the other delves deep into one’s life experiences to understand what has shaped the personality.

Subramanium emphasises that these assessments leverage the Japanese philosophy of ikigai (raison d’être or life purpose). Mentors hold one-on-one sessions with students to find their ‘purpose’ that will be nurtured throughout their journey and included in their curricula. 

These mentors at Athena Education are individual subject matter experts to work with based on their subject interest. “For example, a CS student would work with our senior technology and data science mentors, while an economics student would work with an economics researcher and expert.” said Subramaniam. 

A customised curriculum is thus developed based on the test outcomes that combine aptitude, interests, earning potential and societal value creation. Mentor-matching is also done, keeping these factors in mind. Each student is assigned a mentor for the rest of the journey until applications are sent to universities.

Mentors play a crucial role at Athena Education as they create ‘student brands’ (read profiles), help them execute capstone projects and keep track of their weekly progress. They also supervise SAT preparations, writing skill development and composition of college essays. For context, a capstone project demonstrates how well a student can put subject expertise to practical use, underscoring the person’s involvement and adding value to the profile. 

According to Subramaniam, academics are a foot in the door for Ivy League aspirants. What differentiates the crème de la crème is the social impact they create outside of school education. Based on Athena’s interdisciplinary courses (say, a combination of liberal arts and STEM subjects) and experiential learning, the capstone projects done by its students can create that kind of real-world impact. 

Athena Education’s founder shared how a capstone project achieved this goal. A student at Athena Education was passionate about music and had an academic interest in mental health (he had studied psychology in school), but lacked coding skills. So, the mentors from Athena Education’s Knowledge Center trained him and the student came up with an app that recommends therapeutic music to lift the mood of individuals suffering from mental health issues. Subramaniam claims that a Gurugram-based hospital is now using the app.

Admission Consultancy Is Booming, But Here’s The Caveat  

While the Ivy League and other premier universities will always be the first preference, the competition gets more challenging every day. For instance, Cornell University (ranked 13th on the QS World University Rankings 2024) has an acceptance rate of around 9%, the highest among Ivy League schools. Moreover, non-STEM students find fewer job opportunities in a slowing market, while those pursuing STEM programmes also face a tough environment as tech companies have resorted to mass layoffs due to macroeconomic headwinds.

But pitted against these realities is the prestige associated with foreign degrees (regardless of the education quality) and the lure of working and settling abroad.

According to recent industry reports, India has seen a 35% YoY jump in students admitted to US universities. More interestingly, American institutions also prioritise Indian students for undergraduate and graduate recruitment (70% and 80%, respectively) per the Fall 2023 Snapshot survey for the academic year 2023-24. Therefore, it is not surprising that more Indians, especially aspiring youth from Tier II and III locations, will be flocking overseas to study in not-so-premier institutions.  

This may result in an immediate boom for edtech startups (both marketplaces and pure-play entities) like Leverage Edu, iSchool Connect, AdmitKard, Admission Overseas and Athena, and the Indian market will only keep growing. A study by HolonIQ further predicts that the international education market is set to reach $433 Bn by 2030, while 70% of the global demand is in Asia and Africa. This is expected to grow exponentially and admission consultancy players will grow in sync.      

However, growth will depend on various factors such as the quality of solutions, worldwide reach and success rates across elite institutions like Ivy League schools. Too much focus on Tier II and III universities may backfire as candidates soon realise that those degrees will not fetch a significant premium in the job market despite the high cost of overseas education.

Technology, too, will play a pivotal role as many players are rapidly adopting cutting-edge SaaS solutions and emerging tech like generative AI to increase their efficiency. Although tech adoption across education businesses empowers all stakeholders and ushers in a seamless knowledge flow, a holistic approach involving diverse interdisciplinary learning, personalised training and focus on achieving social good through education may help students power ahead.

As the Harvard guidelines say: Our Admissions Office chooses carefully from a broad range of applicants who seem to us to offer the most promise for future contributions to society. Not all of the students who are best prepared for college will be among those with the most future promise, nor are all of the most promising well prepared academically. 

The post How Athena Education’s Three Pillars Of Training Prepare Ivy League Aspirants As Overseas Admission Gets Tougher appeared first on Inc42 Media.

In a post-pandemic world, regulated industries and new-age businesses have jumped on the digital bandwagon to optimise reach and maximise profits. Consumers have evolved in sync, happy to access every convenience with a click or a tap. But super-exposure to cyberspace leaves the world increasingly vulnerable to cybercrimes, and businesses, ranging from SMEs to BFSI leaders, tend to suffer the most. 

Consider this. Cyber-financial fraud accounted for 77.4% of the cybercrimes in India between January 2020 and June 2023, per a survey by the Future Crime Research Foundation (FCRF). A 2023 India Threat Landscape report by Cyfirma says startups and SMEs top the ‘most targeted’ list in 2023, while banking and financial services institutions saw 9.5% of all cyberattacks in the last three years. The losses of India Inc. are still not quantified, but globally, cybercrime costs can reach $10.5 Tn annually by 2025, according to industry research and media organisation Cybersecurity Ventures.   

As businesses across industry segments, especially those in the financial sector, are compelled to navigate a fast-growing digital minefield, they require cutting-edge financial crime solutions for protection against sophisticated cyberfraud.

To help tackle online fraud at scale, serial entrepreneur Ranjan R Reddy launched the B2B SaaS startup Bureau ID, a global, real-time risk decisioning platform for identity verification, fraud prevention and compliance management in sync with country-specific cybercrime laws and anti-money laundering (AML) checks. It primarily enables banks, fintechs, financial institutions (FIs) and enterprises to fight fraud, and compliance abuse across the customer journey, using its proprietary fraud detection suite. 

Using link analysis (examines data connections and relationships for potential fraud) and its predictive AI models, Bureau employs an identity graph to detect fraud networks. This is a critical step when securing a business against use-cases such as fraud rings, money mules and synthetic identity frauds amongs others. Bureau uses its proprietary technology and alternate data points to validate and match digital identifiers to physical identities and analyse their unique behaviour patterns to track anomalies in real-time.     

An identity network is thus built over time, securing businesses against cyberfraud throughout users’ life cycles and protecting users when they interact and transact with businesses. Bureau monitors all transactions in real time and provides data insights to companies via a unified dashboard. 

The startup’s mission is to provide an all-in-one risk decisioning platform for fraud detection and prevention that ensures digital trust. With its no-code workflows and a single API integration, businesses can validate their customer’s identities, and get continuous fraud monitoring at onboarding,  as well as the transaction stage. Reddy claims businesses can reduce fraud by 80% and speed up identity decisioning time by 95% using Bureau solutions.

The startup claims to have serviced organisations worldwide including banks, NBFCs, micro-finance institutions, BaaS platforms and companies in the gig economy, insurance, gaming and payments. Bureau’s customer base spans India, South-east Asia, Middle east and North America. According to Reddy, the startup has successfully verified 400 Mn+ identities and protected over $500m of digital transactions against vulnerabilities to date. Some of Bureau’s customers include US-based FIS Global and Enformian, KSA’s Tweeq and companies like Goibibo, Rapido, Bajaj Finance, IIFL and others from India.

Bureau has raised over $20 Mn since inception, most recently from a clutch of global investors such as GMO VenturePartners, Quona Capital and Commerce Ventures. Noted angel investors, including Mark Britto, EVP-chief product officer at PayPal, and Bobby Mehta, former president and CEO of TransUnion, also supported the cyber fraud prevention platform. 

Inside Bureau’s State-Of-The Art Fraud Prevention Offerings 

Going by its overarching cybercrime prevention strategy, it is clear that Bureau was not built in a day. For starters, Reddy dedicated much of his career to building and scaling businesses in the mobile payment space. In 2012, he founded Qubecell, a Mumbai-based payments startup, acquired a year later by San Francisco-based mobile payments company Boku. At Boku, a now publicly listed company, he served as chief business officer in his last leadership role.

Reddy elaborated that during his time at the company, he incubated and scaled its identity division which was later sold to Twilio. This experience made him realise that the existing cybersecurity solutions were fragmented and  siloed when it came to crucial components like compliance, fraud and security.

“I aspired to build a single platform, with a single API integration, that proactively and holistically monitors identities and transactions against fraud and abuse by providing real-time decisions,” said Reddy.

Hence, Bureau ID was set up in 2020 to accomplish that through its comprehensive fraud detection suite that includes no-code workflows, device intelligence, behavioural AI, compliance APIs, alternate data solutions, visualised through an identity graph. 

Regarding the issue of increasing cyberfraud, Reddy stresses that smart identity decisioning should consider how fraudsters use mule accounts to launder stolen money. Money mules are mostly individuals typically recruited by fraudsters to transfer huge sums between accounts and across locations until all links to the eventual receivers are lost (however, some mule accounts are also opened by bots). 

As human mules use multiple phone numbers, email IDs, stolen or spoofed identities for these activities, mapping digital and physical identity verifications through alternate data solutions plays a critical role in detecting them, especially when businesses onboard new customers.

Next comes device intelligence, making the procedure more foolproof. Bureau cross-checks device fingerprints, which are unique patterns generated through device configurations and usage. Pitting a device ID/fingerprint against a specific user helps prevent a fraudster from switching devices too frequently. The platform also validates IP addresses, operating systems (to analyse if they are genuine or spoofed), VPN and tracks remote desktop and malware, which are commonly used by  mules to bypass security measures.

“Mules open multiple accounts for money transfers from different devices in a very short period. With data intelligence, we can identify anomalous activity,” explained Reddy.

Bureau identifies bots in action and scans user behaviour with behavioural AI tools that look at unique human behaviour patterns such as, typing speed, scrolling patterns, and hesitation percentage to successfully authenticate an identity.

“A criminal using stolen identities to open accounts is unfamiliar with personal data. Hence, the person may display hesitation or rely on copy-pasting to enter account details,” the Bureau CEO said. 

Finally, an identity network is created with the help of link analysis. “The risk associated with an identity is assessed based on the type and number of such links while factoring in indications of past fraudulent activities reported by Bureau’s customers,” he added. 

Bureau’s no-code solutions can be easily integrated with business backends via API, allowing companies to set up customised security features as easily as dragging and dropping pre-configured blocks created for every step of the customer journey. 

According to Reddy, the startup has secured SOC2 compliance, a voluntary compliance standard developed by the American Institute of CPAs (certified public accountants) that specifies how service organisations should manage customer data. More importantly, unlike many data brokers, Bureau does not store personally identifiable information (PII) and only relevant, tokenised insights are generated for identity verification.

The startup has set up a pay-per-API revenue model, where businesses pay for the APIs and workflows tailored to suit their specific needs. It also generates revenue through a fixed monthly/annual platform fee for essential functions like building workflows, transaction monitoring and continuous screening, regardless of API usage. 

Tapping Into Investors’ Network For Growth

Although Bureau’s strong value proposition positioned it well in the niche space, raising awareness and onboarding B2B customers proved difficult for the early stage startup. Promotion through digital marketing is a common but costly tactic. What if a startup could capitalise on its investors’ network to expand its customer base? That’s precisely what Bureau did.

The startup recently raised additional capital in a Series A funding round in July 2023. Japan’s GMO VenturePartners (GMO-VP) was the lead investor in this round, and its sister company GMO Payment Gateway, the largest payment service provider in Japan, also pitched in along with existing investors. As part of the Japanese internet conglomerates GMO Internet Group, both firms specialize in fintech investments within the Indo-Pacific region, promoting cross-border innovation. GMO Payment Gateway also runs an AIF in India, providing debt funding to fintech startups.          

While the funding helped Bureau enhance its data and AI capabilities, Reddy was more than impressed when his investors stepped in to help with customer acquisition.

Leveraging GMO-VP’s connections, Bureau serviced Jai Kisan, GroMo, OTO, Niro and MobiKwik of its portfolio companies. 

“GMO has been an invaluable partner in our journey. Its extensive scale and unique perspective make it an exceptional guide and partner. Bureau has already reaped significant benefits due to its impressive portfolio and network,” he said.

Asked about this holistic hand-holding, Ryu Muramatsu, director and founding partner from GMO-VP said the benefits were mutual. “Digital trust is pivotal for all financial transactions where many challenges originate, especially the upsurge in fraudulent activities. Tackling these hurdles is crucial for the entire fintech sector. That’s why we think Bureau is a significant player [in the identity decisioning space].”

Bureau has reportedly agreed to a strategic partnership with GMO Payment Gateway. Bureau is eyeing expansion across the Middle East and Southeast Asia and aggressively marketing its solutions to increase awareness. It will also cater to more institutional players, especially in the banking sector. This makes ample sense as the BFSI sector remains the primary target for cyberattacks and accounted for more than 70% of the spend on anti-fraud measures in 2022. 

To speed up its operations, Bureau completed its strategic acquisition of Delhi-based inVOID in 2023. The digital identity verification and KYC authentication platform typically works with fintechs and FIs.

“This is a timely acquisition as the convergence of new regulations and a sharp uptick in fraud cases in recent years have escalated the demand for robust compliance and risk management solutions,” said Reddy.

The Future Is Now For Fraud Detection Businesses

Globally, the fraud detection and prevention market is estimated to reach $66.6 Bn by 2028 from $27.7 Bn in 2023, growing at a CAGR of 19.1%, a report by MarketsandMarkets says. Although this augurs well for FDP players, businesses are still not looking at the problem in its entirety. 

As a Deloitte report points out, most organisations depend on homegrown systems where fraud detection rules are framed on an ‘if-then’ scenario. This logic works well in a structured data environment. However, given the humongous and complex data in circulation, complete automation and advanced AI/ML will be required instead of the traditional logic.  

Moreover, organisations still seek use-case-specific solutions or try to integrate authorisation logic in disparate tools instead of opting for a centralised ecosystem. Unless identity decisioning is embedded as a core solution, it cannot secure the end-to-end digital journeys of businesses and their customers in real time.    

Reddy seconds this, saying businesses must leverage tools and technologies to champion consumer trust and proactively prevent fraud, instead of waiting for the regulators to introduce and enforce penalties that focus more on compliance. 

Currently, Bureau does not face direct competition from Indian players, although startups like HyperVerge and Helloverify exist in niche segments of fraud detection. The platform also holds a distinct advantage with a global presence across three regions.

Nevertheless, there is no shortage of global players in the market, including Bureau ID, New York-based Alloy, London-based Onfido and others that provide comprehensive fraud detection solutions. This also highlights that the West has recognised the need for comprehensive identity verification due to the increasing financial fraud.

Will the homegrown startup ecosystem gear up similarly and emerge as a major FDP hub, catering tailored solutions that align with the unique compliance needs of Indian banks and FIs?

The post How GMO Backed Bureau ID Is Helping Businesses Curb Financial Fraud, Protect Their Users appeared first on Inc42 Media.

As businesses must embrace tech-driven strategies in times of rapid digitalisation and industrial automation, adopting digital escrow services is increasingly sought for fast and reliable digital payments. 

The traditional escrow infrastructure has been here for a long time, though. Put simply, it is a legal arrangement where a neutral third party (usually a bank/financial institution) holds assets/funds on behalf of the transacting parties until the deal is closed satisfactorily after meeting the terms and conditions mutually agreed upon. Escrow keeps transactions safe and protects buyers and sellers from financial fraud or non-fulfilment of obligations. However, the traditional route to escrow operations has been inconvenient and time-consuming all along.

It was early 2020 when Vineet Singh (former CBO of the fintech unicorn MobiKwik) sold his car to an online platform that promised a fund transfer within 30 minutes. But after numerous follow-ups and a 10-day payment delay, frustration peaked, prompting him to find a way out of transaction mismanagement. But setting up an escrow account via the traditional route could have taken up to 140 days due to the enormous paperwork and lengthy verification procedures.

Taking note of the growing demand for plug-and-play digital escrow capabilities, Singh and Dinesh Kumar (former sales head at MagicBricks) launched Castler in 2021, a cloud-based EaaS (escrow as a service) web platform offering domestic and cross-border solutions for enterprises. In May 2023, Kumar Amit (former VP of enterprise business at Razorpay) joined the startup as cofounder & COO. Five months later, Ritesh Tiwari (former senior executive at Visa, the UK and Ireland) came in as cofounder and chief product officer. 

The core mission of Castler is to significantly reduce the turnaround time required to open escrow accounts and provide quick and secure digital escrow solutions for B2B and B2C customers. The startup takes 14 business days to open a fully functional digital escrow account as it automates sign-ups, handles identity verification through eKYC, enables online e-agreement signing via eStamp and verifies the merchant’s identity at the time onboarding using AI/ML once the merchant is onboarded.

Post these procedures, it opens an escrow account on behalf of the transacting parties. Next, buyers can deposit the money in the escrow accounts; sellers can monitor the fund status, and the money is finally released from escrow accounts and sent to sellers’ accounts when buyers get their products.   

The fintech SaaS startup has a subscription-based revenue model and caters to various industry segments such as logistics, retail, real estate, fintech and more. It has partnered with nine leading banks to help customers operate escrow accounts. Castler also raised $7 Mn from marquee investors, including Venture Catalysts++, Flipkart Ventures, Capital 2B (an Info Edge fund) and IIFL Fintech Fund, Zerodha’s Rainmatter, 9Unicorns among others.

According to Singh, the platform has more than 5K active escrow accounts and completed 5 Lakh transactions in November 2023. The fintech SaaS boasts a customer retention rate of 80%, clocked INR 1 Cr in revenue in FY23 and targets 6x revenue growth in the current financial year. 

Bridging The Trust Gap: The Castler Way

“Globally, escrow has been proven effective in addressing trust deficits, securing financial transactions and verifying identities. With India poised to become a $5 Tn economy by 2025, the potential for escrow to solve key challenges faced by businesses and consumers is immense,” said Singh.

A look at India’s global status further solidifies his statement. According to a World Bank report, India ranked 163 in 2020 out of 190 countries in the ‘enforcing contracts’ category. To climb the ladder further and be in the top echelon, the country will require more streamlined processes, seamless payments management and enhanced transparency to iron out trust issues. Digital escrow could be the ideal solution to achieve these and more.

The startup lists various use cases demonstrating how customers can benefit from a fast and secure transaction ecosystem. Castler covers each service component, from business verification and opening escrow accounts (for sales, business deals, property leasing, lending, brokerage and more) to transaction processing and transaction management through a dedicated CRM system. In addition, transacting parties have constant access to a web dashboard for real-time status tracking.

Castler enables seamless API integration, allowing a user to sync its escrow solutions with existing systems and applications. Besides, API integration with partner banks helps it service various business requirements, such as cash collection or invoice discounting.

The startup has built multiple layers of protocols to ensure compliance and risk management per banking norms. Each transaction on the platform undergoes verification and approval by a SEBI-backed trusteeship company responsible for safeguarding assets or funds until the pre-set terms and conditions are fulfilled by all parties and the deal is completed.

Additionally, it is a PCI DSS-certified startup working closely with leading banks, which have in-house data security and compliance audit systems. For context, PCI DSS, short for Payment Card Industry Data Security Standard, is a compliance standard mandatory for any organisation handling card payments.

“Our PCI and bank partners conduct audits per defined time intervals to ensure there is no security or compliance gap in the system,” said Singh.

Apart from digital EaaS, the startup caters to B2B customers in various capacities. For example, it works like a trusted intermediary in digital lending scenarios, ensuring that loan disbursals and repayments are processed smoothly and securely. In the case of invoice discounting, it can assist lenders in securing their receivables. 

In the B2C space, Castler currently provides escrow services for tenants’ security deposits. When a tenant moves into a rental property, a security deposit is typically paid to the landlord to cover potential damages or unpaid rent at the end of the lease. Now, a landlord can open a digital escrow account on Castler to safeguard this amount until the lease ends.

Castler has two revenue streams. On one hand, it operates like any other SaaS platform and charges a monthly or annual subscription fee to its customers. On the other hand, it works as TSP to banks.

Pitfalls And Growth

At first, Castler’s chances to hit it big dwindled as incumbent banks were sceptical about partnering with a digital escrow startup. The founders also realised that hard-selling their business pitches would not get a stamp of approval from these banks. To win them over, they sought investors who could validate the startup’s credibility. Once the startup proved its potential to the marquee investors, the banks followed the suit.

“We reached out to Venture Catalysts++ (VCats) during our idea stage in Jan 2021 and raised $1 Mn at the ideation stage,” said Singh.

Set up in 2016, Mumbai-based VCats is a sector-agnostic and multi-stage VC investor with BluSmart (EV ride-sharing), Beardo (D2C brand for men’s grooming), fintech unicorn BharatPe, Shiprocket and others in its portfolio. Given its track record, VCats’ backing turned out to be a game-changer for Castler, increasing its credibility among bankers and providing lucrative opportunities to expand its customer base through the VC firm’s extensive industry connections. 

“VCats’ vast and active founders’ network enabled us to offer our escrow services to many startups seeking funding through the VCats syndicate,” added Singh.

Additionally, the VC firm gave access to top funding events attended by large domestic and global VCs and family offices. 

Castler leveraged this exposure well and raised two more rounds of funding. In May 2023, it raised $5 Mn in a pre-Series A round led by Capital 2B (an Info Edge fund) and IIFL Fintech Fund. This round also saw participation from Venture Catalysts along with Stride Ventures, Rainmatter, 9Unicorns and FAAD Network. In September, it bagged an additional $5.5 Mn as part of its ongoing pre-Series A and got Flipkart Ventures to be part of this funding. 

Castler aims to bolster its expansion strategy for both domestic and cross-border escrow services and establish partnerships with over 25 banks, targeting substantial growth in the coming years with the fresh funding. 

Can New Entrants Dominate The Digital Escrow Market In India?

Globally, the SaaS escrow market is estimated to reach $18.4 Bn by 2031 from $5.4 Bn in 2021, growing at a CAGR of 13.4% for the projected period, a report by Allied Market Research says. It also suggests that the growth was fuelled by the Covid-19 pandemic when an increase in digital payments prompted the need for secure and cloud-based solutions.

Closer home, things could only get better. According to a Redseer report, India’s overall B2B payments market is estimated to grow from nearly $8 Tn in FY22 to $10-11 Tn by FY26. However, 50-60% of the current payments are done via cash and cheque. Given the growing adoption of digital payments, escrow transactions can rise exponentially, enhancing contract compliance and quickly resolving business disputes. 

Aware of the shape of things to come, homegrown fintech super-apps like Razorpay and Cashfree Payments or proptech startup Square Yards have diversified into the digital escrow space, challenging a host of pure-play startups like Castler and Escrowpay. 

One way to survive the growing competition is to move away from the broad-range escrow space and develop specialised services for niche customers. After all, various escrow markets are now emerging fast, dealing in M&A, real estate or even intellectual property. Others may look at focus and technology shifts and explore the scope of a decentralised escrow payment system, as blockchain technology is a core element triggering escrow growth. Think of Descrow and its community-driven solutions, which can give banks and big fintechs a run for their money.

However, industry insiders are still betting big on digital escrow players like Castler and its ilk, as this sub-industry is still scratching the surface. With the rise in digital-first enterprises and borderless business transactions, winners will be those who can improve and diversify their escrow services, prioritise data security and keep expenditures on a tight leash. 

That’s a tall order, but certainly not undoable.

The post How Ex MobiKwik & Razorpay Execs’ Escrow As A Service Startup Castler Is Transforming B2B Payments appeared first on Inc42 Media.

There is hardly any middle-income family in India that may not be familiar with the challenges that parenthood brings with it, especially when it comes to burning holes in the not-so-deep pockets of an average Indian household. 

Well, if you think that education is the biggest expense that every Indian parent has to bravely endure, then consider speaking with the ones with newborns, infants or even toddlers. Ranging from expensive vaccines and baby food to high-priced nifty infant clothing and diapers, there is hardly any relief for parents.

While the challenges are galore, baby care brand Bumtum aims to give a much-needed respite to the pockets of Indian parents by offering economical and quality baby diapers. However, this Rome, too, was not built in a day.     

Post his return from the UK, Mayank Beria, a business student, closely observed the Indian baby care market, only to discover the opportunities waiting to be untapped. 

With a family background in manufacturing, it was natural for him to stay away from third-party manufacturers, as he planned to foray into the baby care segment.

Finally, Beria joined forces with his siblings, Chirag Beria and Neelima Beria Bhimsaria to launch Bumtum. While Bumtum has been present in the market since 2017, it was officially launched in 2021.

However, later, the founders ventured into adult hygiene care with Elduro, feminine hygiene care with Freeme and preteen skin care with Amigo, all operating under their parent company, Familycare Consumer.

Initially, Bumtum products were manufactured and sold on the parent company’s website. However, to boost visibility, the founders later started selling the baby care products on Flipkart and Amazon.

Meanwhile, the baby care brand, Bumtum, strengthened its ties with retailers across Lucknow, Kanpur, Patna, Ranchi, Indore and Ahmedabad. The company claims to have sold its baby care products to 60K customers to date.  Along with 500+ SKUs, Bumtum has baby products across 30 categories, including diapers, baby wipes, lotions, fleece coverings and more. 

The founders claim that the parent company has generated a revenue of INR 150 Cr in FY23, up 150% YoY from INR 65 Cr in FY22. Beria has now set his eyes on garnering INR 500 Cr in revenue by the end of FY24, which would be a gigantic leap of 233% YoY. 

To achieve the set target, Bumtum’s parent company, Familycare Consumer, partnered with 3PL player Emiza to deliver the Bumtum, Eduro, Freeme and Amigo range of products. 

Standing Tall Against Established Brands

Bumtum emerged as a brand with the core purpose of simplifying the lives of parents, particularly in India, where the expense of baby care products is equal to spending on luxury. This is why Beria envisioned Bumtum primarily serving Tier II and III regions, where household incomes may not match those of Tier I counterparts. 

However, a major challenge before its launch was that the market was dominated by bigger brands. Speaking with Inc42, Beria said that brands such as Mamy Poko Pants, Huggies and Pampers hold a market share of no less than 96%. 

“To stand tall against these brands, we decided to launch Bumtum as a private label and started manufacturing and selling products under the brand name on marketplaces like Flipkart and Amazon. We took the brands offline, targetting smaller towns and positioning ourselves as ‘small town India’s favourite diaper brand’,” the founder said, looking back on his journey.

As the founders forged their journey, another challenge awaited. This time the founders were struck with the dilemma of creating with brand recall while competing with established players in smaller cities and towns.

After much deliberation, the founders decided to keep the communication simple. They even picked a cartoon character, Chota Bheem, to go on the packaging of baby diapers, solving the brand recall issue. Further, every marketing campaign they did was in Hinglish. 

“For our Father’s Day campaign, we launched one of our digital ads in a Hinglish title, while the rest of the content was in Hindi. The campaign garnered 2 Mn views,” Beria said, adding that the brand recall strategies have worked wonders and the brand’s customer retention has grown by 50% since its launch. 

Quality Meets Affordability

The founders of Bumtum were quick to identify that they could increase customer stickiness with just the right pricing strategy. According to Beria, the brand’s products are at least 25% cheaper than bigger brands. He, however, stressed that despite offering competitive pricing, they do not compromise on quality. 

Interestingly, to ensure that all their products are of good quality, they have set up a manufacturing plant fully certified by International Organization Standardization, Sedex, Good Manufacturing Practice and Conformité Européenne (CE) in Pithampur, Indore. Moreover, the brand has a dedicated R&D team with its labs set up in the manufacturing unit. 

Mayank revealed that the brand generates 65% of its revenue from marketplaces such as Amazon and Flipkart, while offline sales account for 35% of its total sales. 

In terms of sharing revenue with ecommerce and logistics partners, it pays a commission to its partners. The cost for logistics partners is approximately 5-6% of their overall sales. Further, Mayank said that 90% of Bumtum’s revenue is generated from Tier II and III cities and towns, with the remaining 10% originating from Tier 1 users. 

Banking Big On Third-Party Order Fulfilment

Bumtum understands the importance of adopting an omnichannel approach to cater to the essential needs of its customer base in Tier 2 and 3 regions. While it has a robust online presence, it acknowledges that offline presence is equally significant.

Bumtum recognises that this helps in building trust and confidence in the brand. It’s also worth noting that users in these regions may not be comfortable making online orders. By taking an omnichannel approach, Bumtum has ensured that it remains accessible to all its online and offline customers.

Meanwhile, to ensure that Bumtum has an efficient offline presence, it is focussed on strategic warehousing. For this, it partnered with Mumbai-based 3PL warehousing company Emiza, which provides tech-driven warehousing management with a network of over 22 fulfilment centres across Tier 2 regions such as Indore, Lucknow, Patna and more. These tech-enabled warehouses offer multi-tier shelving systems for easy order processing and a host of safety and security features. 

Founded in 2015 by Ajay Rao and Jitendra Kumar, Emiza claimed that it works with 200 clients including Marico, Mamaearth, Clovia, The Souled Store and more.

The strategic partnership with Emiza helps the baby care product brand leverage the former’s efficient SDD/NDD deliveries and cost-effective fulfilment specifically tailored for low-priced daily consumption items.

Emiza also serves Bumtum’s parent company Familycare Consumer and provides warehousing services for the brands Freeme, Amigo and Elduro. 

When Familycare Consumer joined hands with Emiza in October 2022, it had a warehouse only in one location. Since then, the company has expanded its warehouses to 17 locations, with three more in the pipeline. Rao claimed that Emiza handles 80% of Familycare Consumer’s total volume. 

Rao said that Familycare Consumer had three prerequisites for its fulfilment partner before onboarding them as a 3PL partner. Firstly, the partner needed to execute SDD/NDD deliveries, given the parent company focusses on selling daily consumption items like toiletries. Secondly, the fulfilment services provided by the 3PL partner had to be cost-effective, considering the relatively low average selling price of these products. Lastly, the selected partner should be experienced in delivering products across diverse categories. Rao said, “Emiza fit the bill,” indicating Emiza’s suitability for the role.

Emiza also manages fulfilment services for Familycare Consumer and ensures same and next-day deliveries. Ajay Rao, founder and CEO, Emiza said that until September 2022,  Familycare Consumer’s delivery duration stretched to four to five days in remote areas. In the toiletries category, deliveries now reach customers within 24-48 hours.

What Does The Future Hold For Bumtum?

For decades now, people have been buying baby care products from legacy players like Huggies, Pampers and Mamy Poko Pants. This allowed white space for smaller brands like Super Bottoms and Bumtum to experiment with packaging and materials. 

For instance, Super Bottoms uses organic cotton jersey fabric in its diapers, which is safer for toddlers, while Bumtum leverages a popular Indian cartoon character to establish its brand recall.

Not just this, Bumtum’s playbook to penetrate deeper into the nation with affordable yet quality products appears to be a great strategy to woo Indians in the long run. Given that the company saw a 150% YoY growth in its revenues, the founders’ projections to clock in INR 500 CR in revenues looks achievable. This is more because of the market in which they are operating.  

According to a report, the baby care market is projected to reach $38.51 Bn by 2029, growing at a CAGR of 17.5%. This mirrors an immense opportunity for smaller baby care brands, which can leverage the white space created by bigger brands and continue experimenting with their products. Not to mention, technology will also play a key role in giving a much-needed boost to baby care product manufacturers going ahead. Given the tailwinds, brands like Bumtum seem poised to thrive and carve out a successful niche in the evolving market.

The post How Bumtum Is Making Quality Baby Care Accessible in India’s Tier II and III Regions appeared first on Inc42 Media.

No business can survive without book-keeping and accounting, as these help organisations record, streamline and analyse financial data for efficient operations. India is home to 63 Mn MSMEs (micro, small and medium enterprises), collectively contributing nearly 30% to the country’s GDP but lacking the deep pockets to set up the operations in-house or opt for expensive full-service solutions. Even now, many companies do billing and accounting manually or rely on traditional spreadsheets.  

Aware of the techno-financial requirements of new-age small businesses, many SaaS (Software as a Service) startups in India have ventured into the accounting space with a wide range of affordable and scalable solutions based on pay-as-you-grow subscription models. However, meticulous tracking and calculation of expenses and earnings tend to get more complex when small businesses expand their customer pools, explore cash flow management through business forecasting or seek improved workforce management for cost optimisation.

Gurugram-based Unesync is a new kid in the accounting space. But unlike pure-play SaaS players in this segment, the startup has adopted a holistic approach and put together a wide range of services to empower small and midsize enterprises (SMEs) in more ways than one. 

Set up by serial entrepreneurs and childhood friends Rohan Chopra and Ujjwal Agarwal, the two-month-old startup provides end-to-end accounting services and inventory and team management tools to streamline processes. Plus, it helps SMEs communicate with external stakeholders such as vendors and customers instead of subscribing to a full-fledged (and expensive) CRM system.

Ever since starting its operations in October 2023, the startup has onboarded partners like Delhi-based café Chai Lelo, edtech platform Victory Point and advertising agency Span Advertising, among others. Furthermore, it aims to onboard 1K+ B2B customers by the end of FY24.

The web-based platform is also developing Unesync Capital, a tool to predict when companies may require credit, and provides them easy access to small-ticket business loans. Unesync uses data analytics and AI to enable these predictive analyses.

“Rather than businesses realising [at the eleventh hour] that they need credit for orders or projects, our platform helps them understand these requirements at the invoicing/purchase stage,” explained Chopra.

The credit market typically operates in a flow, from inquiry to approval, and raising back-to-back loans is not easy. However, the initial amount requested by a business often fails to suffice, as cost projections are not always reliable. Unesync aims to assist SMEs with more accurate calculations so they do not fall short or borrow more than needed.

To ensure easy access to small business loans, the startup has partnered with credit aggregators like Recur Club and Inca Fintech. The focus is on the micro-lending segment to help businesses raise capital for day-to-day operations.

Unesync Capital is still a nascent offering, available to a few B2B customers. Chopra says the service is still in the testing phase. Based on customer feedback, the platform will tie up with more fintech partners to open the feature to a bigger user base. The startup aims to onboard 1,000+ businesses by the end of FY24 and will also look for seed funding in 2024.

How Unesync Layers Tailored Solutions For Critical Tasks, Plans To Thrive On Scalability 

Before starting Unesync, the founders set up Decimal Space in 2019. While running the software development firm, the duo acquired diverse businesses from the fintech sector and observed a crucial gap in terms of accounting solutions in the market. 

According to the founders, most SMEs are compelled to outsource payment processing, tax compliance or credit line management in the absence of trained in-house staff. A few also purchase software programmes for digital accounting. However, aligning these critical tasks at the end of a financial year could be challenging for the uninitiated. 

Recognising the necessity for a unified approach, the duo started Unesync to offer one-stop accounting solutions for SMEs with a yearly turnover of INR 5 Cr – INR 25 Cr. The revenue bracket has been strategically chosen to drive growth as Indian businesses with an annual turnover of INR 5 Cr or more must do e-invoicing for B2B transactions under the GST regime. 

Queried about the core tech used for accounting, Chopra likens Unesync to Tally, which helps users generate E-Way bills and e-invoices (payable and receivable) without any hassle. The startup, too, has designed a data engine to gather information from various financial sources such as the GST E-Invoice portal, the GST E-WayBill portal and bank statements from account aggregators to streamline and automate a number of compliance procedures typically handled by chartered accountants.

For instance, a CA performs various tasks at the invoice level, including verifying GST returns and checking if suppliers have uploaded GST information correctly for credit processing. As the platform has enabled GST data integration, it can gather vendor data and retrieve their returns directly from the portal without requiring manual intervention.

The platform can track payments dues and manage payments. Besides, it provides various value-added solutions, including inventory management, team management and its proprietary credit prediction tool.

 The startup’s ability to scale and conform to all new policies will also help it serve businesses of all sizes – a key differentiator that sets it apart from the rest. Chopra explained it with a simple use case.

“A business, starting with modest revenues, may opt for a product like Khatabook, which primarily caters to companies with an annual turnover of less than INR 5 Cr. It makes ample sense, given their limited requirements. As they progress, they may move up to a solution like myBillBook that focusses on SMEs [those earning INR 5 Cr and above a year, as per government definition]. But when these businesses reach a certain level, these products may be inadequate to address their requirements,” he pointed out.

Although Unesync is currently targeting the same clients as myBillBook, it will soon introduce enterprise-level solutions to serve the entire spectrum of businesses and gain a cutting edge.

Like most SaaS platforms, Unesync earns revenue through a pay-as-you-grow business model, spanning monthly, quarterly and yearly subscriptions. For basic accounting solutions like e-invoicing, the monthly fee starts at INR 250 and goes up to INR 900 if customers want to add additional features such as inventory and workflow management.

The Way Ahead For Unesync 

Initially, enterprise tech incumbents paid scant attention to SaaS disruptors, predicting that old-timers (businesses minus digital-age tech exposure) would not find implementing brand-new technology easy. However, small, cash-strapped entities learnt to ‘adapt’ quickly after tasting the cost-efficient, consumption-based success sauce whipped up by SaaS players.

According to industry experts, the accounting and finance landscape is becoming digital worldwide, and the Asia-Pacific will witness the highest growth in this space. SaaS accounting software is driving this digital transformation to a large extent, given the emergence of small businesses and increasing investments by SMEs in the SaaS and cloud market. Globally, the market for online accounting software is estimated to reach $38 Bn by 2030, expanding at a CAGR of 8.1%.     

Small businesses in India are also leaning towards digital tech and getting ‘SaaSy’ in a post-Covid world. An IDC report predicts that 30% of small and medium enterprises will shift one-third of their core workload to the cloud by 2024. This will broaden the integration of SaaS-based digital accounting (including data analytics and reporting) and lead to value-added offerings such as data-driven advisory services, business valuation, budgeting, financing and more.

However, scripting a success story in this space may be difficult due to an intensely competitive landscape. Think of the homegrown and bootstrapped unicorn Zoho, which claims India may soon become their second-largest market (after the US), powered by SMB and enterprise growth. Essentially, the market is rapidly getting crowded as desi and global firms like Zoho, FreshBooks or Vyapar have made successful inroads.    

Chopra is not unduly worried. He insists that the market is wide open and the competition is healthy as more businesses adopt billing and accounting software. Unesync also recognises untapped potential as companies are willing to experiment with new products and services that correspond with their fast-changing requirements.

Aware of this evolving market, the founder has tweaked the startup’s promotional strategy and did not go for a marketing blitzkrieg. “SaaS-based offerings in our niche [accounting] is not a novel concept. End users are well versed in this model and have adopted it over the past decade, allowing us the freedom to do away with excessive marketing,” he said.  

Instead, Unesync has gone ahead with word-of-mouth promotion and involved chartered accountants working with small businesses. The platform encourages CAs to sign up for free trials. After that, its customer support team guides them and helps them understand how the platform works. 

 Chopra says this approach has yielded positive results, and Unesync aims to onboard 1 Lakh customers in the next two years.

Amid the growing demand for digitalised business processes, SaaS-based accounting solutions are gaining traction among Indian SMEs. Moreover, SaaS providers can attract a diversified customer base with increased verticalisation or never-before silo-breaking. While established players cater to mainstream requirements, newcomers like Unesync seek to stand out with their unique value proposition – a combination of accounting, process management, and financing capabilities.

Of course, opportunities to innovate in SaaS are far from over. But savvy businesses that can develop more unified solutions to meet broader needs may have the potential to corner success. It will also benefit the SaaS industry, which can seize the future by evolving in sync with emerging trends.

The post How SaaS Startup Unesync Is Simplifying Accounting, Streamlining Processes For Indian SMEs appeared first on Inc42 Media.

Mumbai-based GetSetHome, an online platform that manages and provides accommodations on rent, has raised $1 Mn in a seed funding round from Mumbai-based VC firm Mistry Ventures. The startup plans to use this capital to accelerate growth by expanding its presence into new micro markets, enhancing its platform and UX to strengthen its customer presence in Mumbai and Pune, where it currently operates. 

Founded in 2014 by Junaid Shaikh, Shabnam Virani and Muddassar Virani, GetSetHome offers fully furnished accommodations on a shared and non-sharing basis on rent. 

The startup primarily serves students and professionals relocating to and within these cities. Junaid claimed that to date, the startup has helped over 12,000 individuals secure accommodation and that all its partner properties run on more than 90% occupancy rate. 

GetSetHome aims to increase its user base to 50,000 within the next two years.

Finding rental accommodation often involves dealing with a fragmented brokerage system, high upfront payments, extensive travel and accommodations that lack amenities. 

To streamline this house-hunting process, the trio set up GetSetHome. It allows users to explore homes through verified photos and book accommodations directly. 

Further, the startup claimed that it improves rental yields of residential real estate assets for property owners, including developers, from a typical 2% industry standard to an average of 6%.

Junaid noted that once properties are listed, owners are relieved from frequent broker calls and showing properties to potential tenants. 

Additionally, property owners listing with GetSetHome are freed from the burden of follow-up calls for timely rent collection and navigating complex documentation, among other responsibilities.

While talking to Inc42, Junaid said, “Over the last few years, we have leveraged our understanding of the rental ecosystem and demand trends in different micro markets to develop a robust rental stack solution.”

GetSetHome provides rental solutions utilising AI, ML and big data for insights on micro market demands, predictive analytics and matches property owners with suitable tenants and conducts risk assessments. The startup stands in competition with other startups like Ishtara, Stanza Living, Nestaway, Zolo, among others.

Commenting on the investment in GetSetHome, Zahan Mistry of Mistry Ventures, said, “GetSetHome’s technological and operational capabilities address key pain points for tenants and owners within the rental ecosystem. Their strength is their ability to use capital efficiently which they have demonstrated through the pandemic. This shows the resilience of their business model. With a strong leadership team in place, we are excited to partner with them in their next growth phase.”

Mistry Ventures was founded in 2018 by late Cyrus Mistry and is currently led by Ashish Iyer , the firm’s managing director. Mistry Ventures funds startups across various stages to aid their growth and scaling efforts. The venture capital firm has made investments in diverse sectors such as D2C, SaaS, agritech, among others.

Poised to be a $1 Tn opportunity by 2030, India’s proptech sector has seen remarkable growth, with coliving being one of the key drivers. Early players like NestAway, Zolostays and Coho, all launched in 2015, have been pivotal in harnessing technology for growth in this specialised market.

Investments in Indian proptech startups have also soared, with $4 Bn being raised between 2009 and 2022. For instance, since launch, Zolostays has raised a total of $98 Mn in funding, while Stanza Living has raised a total of $227 Mn. Meanwhile, NoBroker became the first unicorn in proptech after it raised $210 Mn in 2021.

The post Proptech Startup GetSetHome Bags Funding From Mistry Ventures To Simplify House Renting appeared first on Inc42 Media.

The world is still recovering from the crazy days when OpenAI CEO Sam Altman was fired after a board coup and rehired after staff support and a nudge from its biggest investor, Microsoft. Ironically, the chaos that ensued is part of the massive disruption triggered by generative AI (GenAI). 

Unlike traditional artificial intelligence that mostly makes sense of large amounts of data, the ‘generative’ power of the new AI threatens to topple the innovation landscape, work processes and the entire economy. In essence, most businesses and industries are left gasping by its potential impact on manufacturing and services, productivity and efficiency as the next epoch of enterprise revolution takes over.

While business leaders try to assess the overall impact of GenAI, India has geared up fast to become a part of the new ecosystem. The country boasts more than 70 native GenAI startups backed by 80+ Indian institutional investors and $440 Mn+ in funding since 2019. And here’s the cherry on the top – Adobe recently acquired Bengaluru-based AI video creation platform Rephrase.ai. India’s generative AI market, valued at more than $17 Bn, is undoubtedly making its mark.

To dive deep into the nuances of the ongoing tech revolution and address the concerns of industry stakeholders, Inc42 and Google Cloud organised a roundtable titled Generative AI, Cloud And Startups: A Power Trio Redefining India’s Techscape!

The session covered various critical topics, including:

• Decoding the real-world impact of GenAI
• Strategies to tackle market-entry challenges posed by generative AI
• Navigating the changing landscape of workforce skills

The roundtable brought together technology decision-makers from diverse industry segments. Among them were Avneesh Goel, SVP (product & technology) at Awfis; Prince Singh, house owner (product) at OneBanc; CredFlow CTO Shalabh Aggarwal; Nitin Jain, cofounder & CBO at Oxyzo; Rajan Nagina, head of AI practice at Newgen Software; Deepak Mishra, VP (data science) at FarMart; Naman Khator, lead of solutions architect at QueueBuster; Souparno Bagchi, COO at BalanceHero India, and Gurpiar Sibia, head of customer engineering at Google Cloud. 

The session was moderated by Vishal Agarwal, partner at EY and currently leading its data analytics practice. 

The Road Ahead: Embracing GenAI Opportunities And Navigating Challenges

In the past decades, cloud technology has transformed how startups and enterprises work, scaling up operations, unlocking innovations and accelerating business success. Within India’s burgeoning startup ecosystem, ranked third globally behind the US and China, cloud-native startups have emerged as a global SaaS (software as a service) hub and rapidly expanded into critical areas like IaaS (infrastructure as a service), PaaS (platform as a service) and BaaS (banking as a service).

Per a Bessemer Venture Partners report, among the VC-funded Indian startups in 2022, 20%, or 468, were cloud and SaaS entities. Cloud spending also grew by nearly 22% that year, almost equal to the entire continent of Europe. This indicates how cloud computing, in its many avatars, is rising even when the funding winter has paused frenzied growth activities across the ecosystem.

Interestingly, artificial intelligence (AI) has been an innovative component in cloud play for service enhancements. Now, the country’s mature tech ecosystem is breaking frontiers to become a part of the ongoing tech revolution – generative AI.

“I am most excited about the rise in productivity that it [GenAI] ensures across different divisions of an organisation, be it marketing, content or [software] development. And I think that is perhaps the most mature use case right now where the risk is under our control,” said Deepak Mishra of FarMart.

But adopting technology can be challenging, be it a decades-old ecosystem like enterprise cloud or the latest GenAI breakthrough. For instance, a significant concern in an ML-driven tech landscape is model collapse. This occurs when an AI model trained on synthetic data generates progressively less diverse and more repetitive outputs (even LLM or large language models can fall prey to it).

“I think we cannot let go of the human angle around it, and that applies to everything AI. If we allow AI to learn from itself [and create], it will eventually lead to a self-collapse,” said Shalabh Aggarwal, CTO of CredFlow.

Watch the roundtable titled Generative AI, Cloud And Startups: A Power Trio Redefining India’s Techscape to gain more insights.

The post Generative AI, Cloud And Startups: A Power Trio Redefining India’s Techscape! appeared first on Inc42 Media.

Where would social media go next? Will it unlock more disruptive innovations or go round in circles like fashion, bringing back old formats in red hot garb? Among social media startups, repeats and replications with some incremental value additions are not uncommon, but the outcomes are far from satisfactory. If Dispo enthralled Insta fans before the pandemic, the hype is gone, and Lapse from the same genre is taking over (both are photo-sharing platforms with a tweak). If text messaging was discarded as uncool after WhatsApp and Snapchat, think again. Text message company Community (founded by Ashton Kutcher and Guy Oseary) is making big strides again, thanks to the business value of the older format. 

True to the see-saw ride their counterparts experience worldwide, a handful of Indian social media startups also had a chequered performance when they emulated their wildly popular global peers. As their growth momentum faltered after a while, the field has been left wide open for novel initiatives like Khul Ke. The new kid on the block is looking beyond user-created content and targeting core ecosystems, including education, healthcare and the law, to generate value.

Made-in-India social media platforms had their moment in the sun after the Indian government banned more than 200 Chinese apps and websites from 2020 onwards following geopolitical tensions. As around 150 Mn monthly active users from India were forced to stop using Chinese-owned short video-sharing app TikTok, the likes of Moj, Josh and Roposo gained significant traction as they used local languages and tried to capture the country’s diverse cultural nuances. 

The landscape got bigger as vernacular social networks like ShareChat (run by the unicorn owner Mohalla Tech, which is also operating Moj), Koo (India’s answer to X) and Trell (short video-driven social commerce app) played the India card well.

But by 2023, the made-in-India sheen nearly wore off and funding winter hit most social media apps. Inadequate cash flow and a stringent focus on profitability resulted in various cost-cutting measures such as mass layoffs. Even key stakeholders (read cofounders) exited from leading startups like ShareChat and Chingari. 

So, when a new social platform hits the market at the fag end of the calendar year (Oct. 2, to be precise) amid the chaos of dwindling downloads and shrinking engagement, one is bound to wonder how different it is from existing players. 

For the record, Mumbai-based Khul Ke (which means ‘speak freely’ in Hindi) was set up by serial entrepreneur Piyush Kulshreshtha in 2021 but spent nearly two years in the ‘test zone’ to do its homework before tapping into people’s power to generate a positive impact across its target ecosystems. Simply put, the social networking platform enables informed discussions among experts and users, deals with misinformation and eliminates fake news to ensure the quality of its content.  

Currently available in English, Hindi and Tamil, Khul Ke’s app and website offer a host of cutting-edge communication tools to keep conversations flowing. Its key features include Roundtable, which enables live-streaming online discussions and accommodates several participants; Khul Ke Meetup, an online meeting application similar to Google Meet, and Yapp, a private messaging feature akin to Facebook Messenger. Users can also share text, images, audio, upload documents, run polls and share short video content.

Although it has been operational for a little over a month, Khul Ke’s founder claimed that the startup has secured funding in a Series A funding round. However, the details regarding the funding amount and participating investors were not disclosed by him. 

Why Khul Ke Wants To Build Large-Scale Ecosystems For ‘Social’ Success  

Ask the founder what inherent value is generated by free social media resources and he gets sceptical. “Although half the global population is on social networks, the industry seems to have made minimal positive and productive contributions to society,” said Piyush Kulshreshtha. 

The reason? The algorithms running these platforms tend to create echo chambers and constantly circulate content that aligns with a user’s perspective. This limits our exposure to different viewpoints, reinforces our beliefs and often leads to confirmation bias and the spread of misinformation.

The Covid-19 pandemic is a case in point. According to the World Health Organization, an infodemic, or overabundance of information (both accurate and inaccurate), triggered misinformation ranging from downplaying the severity of the health crisis to promoting conspiracy theories that said vaccines could modify human DNA.

More alarmingly, a 2023 Reuters Institute survey found that 30% of respondents relied on social media as their primary news source. 

Khul Ke has adopted a holistic, ecosystem-oriented strategy to contain misinformation and benefit its users. The platform connects domain specialists with individuals across its target sectors (education, healthcare and law) to foster meaningful interactions and promote information-gathering from credible sources instead of browsing through random data that may not be reliable. Khul Ke’s content team is responsible for curating topics and inviting speakers and experts. 

Kulshreshtha mentioned an education sector use case to detail the potential benefits of an ecosystem/expert-centric approach. Think of a scenario where an engineering student wants to present a project to a startup incubator. However, it is often difficult to find specific information about a suitable facility or helpful connections on social media platforms, given its humongous data volume. Again, incorrect or misleading information will further waste one’s time and effort. 

“To address these issues, we foster a conducive environment and enable interactions between incubators and students through sessions, open mic events and similar initiatives,” the founder said. “Cultivating an empowering atmosphere will inspire students to showcase their talent confidently and this will help them land better opportunities.”

Although Khul Ke is headquartered in Mumbai, the team has started onboarding schools and colleges in Tamil Nadu and Uttar Pradesh by leveraging their personal networks. The platform has registered around 20 schools in Chennai around 12K college students from Muzaffarnagar, Saharanpur and Khurja in Uttar Pradesh. Next, it will invite mentors and educators and host interactive educational sessions on the platform.

Eventually, Kulshreshtha aims to build a pan-India educational ecosystem to bring schools, colleges and university faculty members and students on a single platform. “We are already receiving a positive response as institutions understand and approve our value proposition,” he added. 

The startup is still finalising its revenue model, but the founder anticipates earnings from advertisements and user subscriptions (the platform will turn freemium in the long run).

More On The To-Do List: Curbing Fake News, Promoting Quality Content

Despite its targeted ecosystem strategy and focus on relevant content, Khul Ke has enthusiastically welcomed what is known as the lifeblood of social media – user-generated content. Kulshreshtha emphasises that the startup will stick to freedom of speech and expression and does not intend to monitor public posts unless they violate user guidelines. 

“At times, user content may not be what we would like to see. But we will work patiently on these issues to ensure that users on this platform generate quality content,” he said.

To weed out content that violates broad social media guidelines, including fake news and disinformation, hate speech and material promoting bullying, violence or illegal activities, the platform has established a robust framework with five distinct labels: Verified, verifiable, unverified, unverifiable and fake. While fake news is immediately removed, Khul Ke’s fact-checking team refrains from deleting other content pieces. Instead, it contacts users whose content breaches guidelines and requests them to take it down. The platform uses an open source code for content fetching and category detection. While the system doesn’t give a direct score for fake news, it gives a headway to the team that ultimately weeds out fake news. 

Khul Ke also completed its geo-tagging project in November to set up hyperlocal content-sharing similar to Public, a social network for local information. When the feature goes live, it will provide users with more relevant content that directly impacts their daily lives. The platform is also building a report-and-feedback mechanism for posts and Roundtables to access user requests and responses without delay.

Additionally, it will broaden its ecosystem approach by including more domains such as government policies, business, sports, movies and entertainment in the coming months and enter 12 more states in the next four to six months.  

“We anticipate 60-80 hours of long videos, 125 hours of short videos and nearly 50% user-generated content daily in the next six to eight months,” said Kulshreshtha.

Can Homegrown Platforms Reimagine Social Media? 

Social media has reshaped our culture and communication, giving birth to the much-touted attention economy and making people prone to vulnerabilities and manipulations. But there is another side to this social coin. The fact that many are now trying to disengage from it (much like the early cord-cutters) to claim back their privacy and personal time underscores that mass social media is ripe for redemption.

The only glitch: People have conflicted relationships with social media, and the fear of missing out on all that’s happening and important keeps them detachedly attached without abandoning it altogether. 

It may sound like a catch-22 situation, but social media/behavioural science experts have already recognised a way out. It is all about ‘changing’ the current format into a streamlined, value-generating, user-friendly experience that can gradually eliminate exploitative and manipulative elements and establish a positive impact. Of course, technology plays a key role here, as owning the servers gives tech giants full-fledged access to user data and activities. In contrast, the likes of Mastodon (popularly known as a Twitter alternative) leveraging decentralised servers can free users from overwhelming control of social networks.              

Although Khul Ke is not using new tech capabilities like Mastodon or IndieWeb to usher in much-needed changes, its distinctive focus on leveraging ecosystems for use case-driven value creation could transform the traditional social media landscape. Over time, it may resemble Reddit and become a valuable source of trustworthy information but with additional capabilities spanning audio, video and interactive features.

“Existing technologies are well-established, and social media giants excel in that space. We are not in direct competition with them. Instead, our priority lies in content quality and authenticity, as that will be the ultimate measure of our success,” explained Kulshreshtha.   

This also makes sound business sense. 

According to Mordor Intelligence, the social networking market size is expected to grow from $69.54 Bn in 2023 to $153.06 Bn by 2028, growing at a CAGR of 17.09%. Moreover, India remains one of the largest social media markets, although only a little over 41% of its population is on social media. 

Given this data, it is pretty clear that the ‘social’ business is not going away anytime soon. But the walled-garden networks are bound to change in terms of technology, interface, usage and value generation. That is what new-age social networks across the globe are trying to achieve. 

Will Indian platforms like Khul Ke or its global peers, with their novel USP, find the product-market fit? Will they generate the stickiness that fuelled the success of global giants like Facebook, X (Twitter) or Instagram? 

It is still too early to predict how social media will change and whether newbies can adapt and grow in sync. Meanwhile, creating a true sense of community, especially among young people and across major ecosystems, providing access to unbiased data and ushering in the proverbial appeal of freethinking will help them pave the path to success.

The post How This Startup Wants To Redefine Social Networking With Its Ecosystems Approach appeared first on Inc42 Media.

Pan IIT Alumni India is all set to host the “PIWOT (World of Technology) – Global Technology Summit” scheduled for December 8-9, 2023, in Bengaluru. The two-day hybrid event will bring together tech leaders from India’s startup ecosystem for discussions on ‘fostering innovation for societal change.’ 

Established in September 2006, Pan IIT Alumni India represents alumni from all Indian Institutes of Technology (IITs) across the country. Founded with the vision to provide networking and mentorship opportunities to its members, it currently maintains an active presence in the United States, Canada, the United Kingdom, South Korea, Singapore, and Australia.

PIWOT, an annual event organised by the Pan IIT Alumni India network, is dedicated to nurturing innovative ideas and inspiring participants to develop solutions with a positive societal impact. 

In its upcoming edition, the two-day event will attract industry leaders, high-net-worth individuals (HNIs), investors, government officials, and startup founders to engage in discussions and collaborative initiatives. The event will feature activities such as a hackathon, pitching sessions for fundraising, and four masterclasses led by venture capitalists (VCs).

Debashish Bhattacharyya, chairman, Pan IIT said, “PIWOT is structured around the themes of dialogue, practical application and exhibition and serves as a hub for technology professionals, innovators, researchers, startups, academics, investors and policymakers. Its primary focus is on promoting collaboration to develop a fresh approach to operations.” 

Recognising the imperative role of innovation in the rapidly evolving landscape, he emphasised that the conference is centered around in-depth discussions, hands-on learning experiences and the showcasing of innovative ideas. The event aims to unite technologists, innovators, researchers, startups, academics, investors, and policymakers, fostering a collaborative environment for impactful collaboration.

The event will host 100+ speakers, 5,000+ attendees including startups, investors, and corporates. The event will host speakers such as — AS Kiran, former chairman, ISRO; Kris Gopalakrishnan Executive Vice-Chairman, Infosys; Sudipta Bhattacharya, group CTO, Adani Group and Shailesh Kumar, head – AI, Jio, among others. 

The sessions will be themed around topics such as ‘Digital First India’, ‘Core Research Areas Driving Breakthroughs’, ‘AI Advancements and Innovations’, ‘Enabling Social Impact’ and more. 

Here Are The Other Key Highlights Of PIWOT

• Hackathon: A diverse group of developers from various cities, colleges and IITs across India will actively participate in a collaborative Hackathon. The hackathon will focus on fostering teamwork and building products that address industry and governance-defined challenges, with a particular emphasis on creating solutions with a positive social impact.
• Investor Startup Meet: The summit will feature a ‘Mega Investor Startup Meet,’ providing an opportunity for eight early-stage startups to participate in a live pitch program conducted by ‘super angels.’ Selected startups that impress investors will receive on-the-spot funding of up to $500K. Additionally, startups seeking funding between $1 Mn and $5 Mn will have a Demo Day
• Exhibition: The exhibition serves as a showcase event, allowing startups to exhibit their products and services to corporates, creating opportunities for networking and collaboration.

The post Pan IIT Global Tech Summit 2023 To Bring 5,000+ Startups, Investors, Corporates Under One Roof appeared first on Inc42 Media.

Edtech giant upGrad’s revenue almost doubled during the year ended March 31, 2023. The startup said its revenue soared 96% to INR 1,194 Cr during the financial year 2022-23 (FY23) from INR 608 Cr in the previous fiscal year on the back of a strong growth in its paid-learners base.

upGrad said while its gross revenue stood at INR 1,530 Cr, it was adjusted after the startup moved to the widely accepted IndAS accounting standard during the year under review, in line with its long-term public listing plans. It added that its revenue would have been even higher in FY23 if not for deferment of collected revenue of INR 443 Cr. The startup carried forward this revenue into the next financial year as some of its mergers and acquisitions did not consolidate in FY23.

It must be noted that upGrad was on an acquisition spree in 2022, buying a number of edtech companies like data science institute INSOFE, Harappa Education and corporate training solutions provider Centum Learning.

Meanwhile, the strong growth in revenue helped upGrad marginally reduce its adjusted EBITDA loss to INR 558 Cr during the year under review from INR 572 Cr in FY22.

Founded in 2015 by Ronnie Screwvala, Mayank Kumar, Phalgun Kompalli and Ravijot Chugh, the Mumbai-based unicorn offers higher education courses and skilling programmes in collaboration with universities. It is backed by the likes of Temasek, Murdoch’s Lupa Systems, International Finance Corporation, and IIFL. 

upGrad competes with the likes of Coursera, Udemy and Simplilearn. 

The startup said its overall learner base crossed the 10 Mn mark in FY23, with the number of paid learners growing 54% year-on-year (YoY). It claimed it helped 55K learners transition into better job opportunities in the last financial year. 

Where Did upGrad Spend?

upGrad’s non-cash expenses stood at INR 584 Cr in FY23. Of this, goodwill write-down costs stood at INR 410 Cr, while depreciation and amortisation expense amounted to INR 140 Cr. Finance costs came in at INR 34 Cr.

Consequently, its net loss rose over 76% to INR 1,142 Cr from INR 648 Cr in FY22.

Among the major direct costs, upGrad was able to reduce its marketing costs to INR 371 Cr during the year under review from INR 403 Cr in FY22. At 36% of the total expenditure in FY23, employee costs continued to account for the biggest chunk of expenses. Employee expenses stood at INR 707 Cr in FY23 and also included some non-cash ESOP costs.

Direct costs, including content development expenses, content delivery costs, and university fees, grew 1.8X to INR 382 Cr from INR 211 Cr in FY22 as the company continued its investments in content development, content delivery, and university fees, in line with the growth in its revenue.

Business Outlook

upGrad cofounder and MD Kumar, in the statement, said that while the startup respects profitable growth, it aims to strike the right balance as it continues to make new investments with an eye on the long-term potential of skilling, careers and job placements, formal learning and workforce development space.

“Our gross margins are close to 80%, we have zero net debt and have one of the best ROCE (Return on Capital Employed) ratios for a new-age company, having raised a tight $265 Mn since inception. We are tracking H2 of FY24 and onward to be operationally profitable on an ongoing basis and will continue to look for organic, linear and non-linear opportunities for growth in Asia and around the world,” Kumar said. 

Highlighting its strong enterprise play, upGrad claimed to have served 1,110 clients in FY23 and said it expects to retain at least 75% of these clients in FY24. 

The edtech startup said its enterprise arm has expanded its global footprint and now expects international revenue to account for 21% of its total revenue in FY24 as against 10% in FY23.

The startup also claimed that it did not undertake any ‘material’ layoffs in the last 12-18 months, during which a number of edtech unicorns fired employees amid the ongoing funding winter. However, it is important to note that upGrad laid off 40% of the workforce at Harappa Education in January 2023. It also fired 120 employees at its video learning arm upGrad Campus in March this year. 

upGrad stated that the layoffs affected less than 4% of its total workforce (or 193 employees), out of its overall headcount of around 5,100.

It is pertinent to note that upGrad is among the few major edtech startups in India that have revealed their financials for FY23. In October, Tiger Global-backed Classplus disclosed that it recorded a 4X jump in its operating revenue to INR 102.04 Cr in FY23 from INR 25.9 Cr in the previous year. The edtech soonicorn’s net loss also grew 57% to INR 256.6 Cr from INR 163.5 Cr in FY22.

The post upGrad’s FY23 Revenue Almost Doubles To INR 1,194 Cr, Adjusted EBITDA Loss Shrinks appeared first on Inc42 Media.

It’s not every day that one gets to listen to the stories of entrepreneurs who carved a niche for themselves in a sector highly dominated by either unorganised or legacy giants. Well, the entrepreneurial journey of Vijender Reddy Muthyala and Manas Ranjan Hota, the founders of Bengaluru-based watertech startup, DrinkPrime starts with a similar hook and an epiphany, of course, one of the most common ingredients in the story of any entrepreneur.

Founded in 2016, DrinkPrime provides subscription-based water purification services to Indian households at costs as low as INR 333 a month, installation and maintenance included. The startup’s RO machines come loaded with IoT tech and are customised to cater to the water purification needs of families living in different localities. 

Since its inception, the startup has raised more than INR 70 Cr from the likes of Venture Catalysts++, PeakXV and Omidyar Network which reflects investors’ trust in the founders’ business model.   

 Interestingly, had it not been for the water-scarce city of Bengaluru and their daily struggle to find safe drinking water, Muthyala would still be working as a software developer and Hota as a marketing professional. But destiny had different plans for them.

The story of the duo’s entrepreneurial journey starts with their heavy reliance on plastic drinking water cans. While they were not alone in lamenting about the quality of water they had been exposing their bodies to for quite a long time, they were surely the ones who stood up to bring about change.

The Genesis Of DrinkPrime

Interestingly, DrinkPrime did not come into existence right away. Before its launch, the founders floated an app, Waterwala, to deliver drinking water cans to people. This small-time gig helped the founders study the market closely and comprehend what had yet to be done in a bid to provide access to safe drinking water to families. 

But much had yet to be done, as the idea of a more scalable solution to address this challenge kept them awake at night. However, much to everyone’s chagrin, the issue was grimmer than the founders’ anticipation. This is because the water quality varied area-wise, which also meant different contamination levels to deal with and the one-size-fits-all approach would hardly be of any value if they truly wanted to bring change.  

The duo then decided to offer subscription-based customisable water purifiers, leading to the incorporation of DrinkPrime. But as they were still in their nascent stages, they knew that investor funding was not an option for them at the outset.

Therefore, as they say, “Innovation is the hallmark of entrepreneurship,” the founders got into revenue-sharing agreements with water purifier manufacturers. 

Under this regime, the duo saved themselves from incurring upfront manufacturing costs, a strategy that worked as a major growth catalyst for their newly formed venture. 

Today, the founders claim to be EBITDA positive, with the startup catering to more than 1 Lakh Indian households, several hospitals, corporations and schools like Government Higher Primary School, Bidaraguppe, YMC Kayaking Training Centre and Government Lower Primary School, Suggatta.

“We found that many brands used technical terms and technicalities of water purifiers to sell their purifiers, which confuses buyers. But we kept it simple. Our marketing has been all about promising safe drinking water,” Hota said, underlining the core principle of DrinkPrime’s marketing strategy that has helped the startup scale so far.

DrinkPrime’s Hi-Tech Water 

The startup’s water purifiers not only offer a seven-stage filtration process but also come with several tech-loaded features. DrinkPrime claims to reduce germs in drinking water while preserving essential minerals. Users can also monitor water quality with the help of the DrinkPrime app.

DrinkPrime’s purifiers are IoT-enabled and employ data analytics to continuously monitor and maintain water quality, all while enhancing user experience. The startup gathers water quality data on parameters like pH levels, total dissolved solids (TDS) and water hardness from different areas. This helps the startup understand the specific purification needs of each area.

The startup’s mobile app is a significant part of its service, as it simplifies the process of renting and managing water purifiers. The app allows users to recharge purifiers, track water usage, and renew or cancel subscription plans. It also enables direct communication with the support team, ensuring users receive prompt free-of-cost assistance.

DrinkPrime also uses analytics to gain insights into improving services and maintaining water quality. It incorporates customer feedback around the clock to improve its services.

Meanwhile, on the support end, DrinkPrime has employed a ticketing system. Subscribers raise inquiries or concerns on the app, enabling its support team to respond swiftly. 

Providing Access To Affordable Clean & Safe Drinking Water 

DrinkPrime’s value proposition lies in its pricing strategy. It offers purified water with zero purchase, installation and maintenance costs. In contrast, other similar-quality purifiers can cost more than INR 20K, excluding installation and annual maintenance between INR 4K and 5K. 

According to the founders, DrinkPrime stands out as the more affordable choice for users, as the company does not charge even a single penny over and above its subscription cost. 

“We have crafted well-researched subscription models under which users pay as per their consumption needs. For instance, solo consumers can take a yearly subscription for INR 4K, giving access to 1,500 L of purified water. While a family of more than four can opt for the unlimited supply of purified water for INR 6,400 L,” Hota said, adding that the startup currently has four subscription plans in place.

DrinkPrime’s Future Roadmap  

The founders told Inc42 that they approached Venture Catalysts++ in 2022, as the investment firm has a proven track record of supporting successful companies. 

“The investors liked our business model and went beyond offering just financial aid. The mentorship and strategic insights have helped us sharpen our business strategies and effectively navigate challenges,” the founders said.

With the ongoing support from Venture Catalysts++, the founders plan to expand their footprint to new geographies. Currently operational in seven cities, including Delhi-NCR, Mumbai and Bengaluru, the startup is also running a CSR campaign, #DonatewithDrinkPrime, under which it is providing safe drinking water to over 750 students in Bengaluru’s government schools.

“Moreover, we plan to diversify our offerings to cater to a broader audience,” said Hota. To do this the founders said that they aim to launch water purifiers that could dispense sparkling water or get you a glass of water as per your desired temperature. In the near term, the startup also plans to offer vitamin and protein-based drinks.

According to the founders, this is the right time to make waves in the industry as the investor sentiment is currently ripe towards the Indian water tech space, with quite noteworthy innovation happening in the sector.

It is pertinent to mention that DrinkPrime competes with the likes of Swajal, OwO, OCEO, Livpure, et al. to tackle the challenge of water contamination across India. 

“Investors recognise the potential for innovation in addressing this widespread issue. They understand that the major growth drivers for this sector are tech innovations and people’s growing awareness of having access to clean and drinking water, which is also increasingly becoming a basic human need,” the founders said, adding that only 10% of Indians today have access to water purifiers, which makes for a huge white space to be filled in a country where clean drinking water is just another pressing issue. 

According to a 2021 report, freshwater resources, vital for the survival of humans, are deteriorating rapidly due to increasing pollution and contamination and disappearing at an alarming rate due to human interventions. Not just this, waterborne diseases affect millions annually, causing serious illness and even death.

Another report, published by the Telegraph in 2022, highlighted the Centre for Science and Environment (CSE) data, which revealed concerning levels of at least one heavy metal that is deemed toxic to human health in the waters of 117 rivers of India.

In the larger scheme of things, startups like DrinkPrime, incorporated to solve real-world problems, seem well-poised to grow in the long run. Some of the factors that will play a crucial role in their success will be investors’ trust, cheaper solutions, and tech innovation.  

In addition, other things that constantly peeved the two were inconsistent deliveries, unhygienic containers and unreliable water suppliers – and this was besides the questionable water quality that they, and many others like them, were exposed to.     

The household drinking water segment was crying a disruption — for there wasn’t even a single startup that was offering access to safe and affordable clean water solutions to the masses back in 2016 , the founders reminisced. 

“This got us thinking about how to eliminate the reliance on harmful plastic cans for drinking water, which usually remain exposed to the Sun, resulting in water getting contaminated with microplastics,” Hota said. 

That was the time when the duo decided to get their hands dirty and synergised to provide safe drinking water to families heavily reliant on plastic cans. According to the cofounders, at the time when they were still fidgeting with the idea of floating their startup, less than 10% of Indians owned water purifiers.   

At this first beacon of opportunity, the duo decided to take the leap of entrepreneurial faith, committed to the intent of providing safe drinking water to many like them.

The post Here’s How DrinkPrime Is Quenching The Thirst Of Indians For Safe Drinking Water appeared first on Inc42 Media.

The world of snacking, brimming with options from delectable sweets to savory treats that combine flavor with nutritional value, is increasingly appealing to modern consumers who crave indulgence alongside health-conscious choices. This shift in consumer preference has given rise to a plethora of brands within the D2C segment, each vying to establish a direct connection with customers and become their preferred choice.

However, penetrating the competitive snacking industry is a daunting challenge, as these new brands face the task of competing with well-established consumer habits rooted in traditional snacking items. Transforming casual customers into brand loyalists is not a straightforward journey. Yet, with a strategic mix of business acumen, resource allocation and sustained support, achieving this ambitious goal is within reach.

In the dynamic snacking market, where new brands face the challenge of shifting consumer habits from traditional snacks, Mondelez India, the giant behind brands like Cadbury, collaborated with Indian accelerator Huddle to launch CoLab in August 2023, a 12-week programme designed to nurture innovative Indian D2C snacking brands.

From a pool of roughly 250 D2C brands, Mondelez India selected five promising brands: Happy Jars, TruVitals, Nova Nova, Evolve Snacks and Flyberry. These brands underwent a rigorous journey of training, mentorship, and workshops, all leading to the programme’s showcase event. 

Held on October 31 in Mumbai, the CoLab Showcase, orchestrated by Mondelez India in partnership with Inc42 and Huddle, was a vibrant gathering of over 70 investors, D2C founders and industry experts. The event not only offered unique funding and networking opportunities to these emerging brands but also celebrated the evolving landscape of snacking.

CoLab Showcase 2023: Key Highlights

The CoLab Showcase kicked off with opening remarks from Sonali Mitra, Director of Strategy at Mondelez India, and Richie Gray, VP and Global Head of Mondelez Snack Futures. They shared insights into the vision behind CoLab and Mondelez’s strategies for shaping the future of snacking in India.

This was followed by a fireside chat between Nikhil Doda, cofounder and COO of Lahori Zeera and Arjun Vaidya, cofounder and partner at V3 Ventures, who delved into the unique challenges Chandigarh-based Lahori Zeera faced, its brand development journey and the hurdles encountered by early-stage F&B brands. It also explored strategies for overcoming obstacles and adapting to changing consumer preferences.

Following this, five startups took the stage to present their business ideas to an exclusive audience. The presentations were followed by engaging Q&A sessions, allowing attendees to interact directly with the featured startups.

For the last session of the day, we hosted a panel discussion with Bharat Sethi, founder and CEO of Rage Coffee; Prasun Agarwal, partner at A91 Partners; Desmond D’souza, Senior Director of Sales at Mondelez India and Sanil Sachar, founding partner at Huddle. They discussed strategies for unlocking India’s snacking market potential and the key elements for establishing a successful F&B brand. The conversation also captured the role of technology in scaling businesses, potential learnings between established and D2C brands and investor perspectives on the F&B sector.

The sessions were followed with a networking session, offering an opportunity for interaction among the cohort startups, Mondelez leaders, speakers, and attendees over food and drinks.

Events like the CoLab Showcase underscore the importance of blending tech-driven growth with traditional expertise. The collaboration between industry giants like Mondelez India, disruptive newcomers, savvy investors and experienced industry experts is vital for the growth of India’s rapidly expanding online F&B market. 

According to Inc42’s ‘State of Indian Ecommerce Report’, India’s food and FMCG market is projected to reach $68 Bn by 2030, growing at a CAGR of 25%. This market presents an excellent opportunity for both established and emerging players to combine their strengths in creating health-conscious snacks that will lead the next wave of innovation in the Indian snacking sector.

The post CoLab Showcase 2023 Brings Together D2C Stakeholders To Discuss The Future Of F&B Brands In India appeared first on Inc42 Media.

What was the biggest challenge manufacturers of all sizes used to face even before Covid-19 hit the world? A less-than-optimum supply chain plagued by procurement risks and costs – a good many companies would tell you. If procurement was challenging earlier, the global supply chain was really and truly broken during the pandemic. Even now, many businesses are working on future-proofing their sourcing and procurement operations to boost bottom-line growth.

But long before the global debacle, brothers  Akash and Akshay Hegde, who joined their family business to make industrial tools and tackles in 2015, knew the challenges of a small manufacturer. With meagre buying volumes, limited resources, and a lean team of 30, they often ended up negotiating sub-optimally with suppliers. But what hit them most was the lack of price transparency and reliability in fulfilment, resulting in low net profit, inventory challenges, quality issues and production loss. 

Large enterprises did not fare well, either. Most struggled with managing multiple vendors, lack of product standardisation and on-time delivery. 

Consider this. Even in 2022, 60% of small and medium businesses lost up to 15% or more in revenue due to supply chain delays, per a survey commissioned by the supply chain visibility platform Anvyl. Worse still, 56% of the SMBs had reportedly changed their suppliers/vendors due to costs and consistent delays.    

Knowing first hand that an inadequate procurement process could do more harm than good, the Hegde brothers decided to build a technology-enabled platform to transform B2B commerce. Their goal was to create an agile and efficient process for easy transactions and a seamless customer experience. The duo teamed up with Santhosh Reddy, a product development architect, and ShakeDeal was launched in 2016.

The B2B marketplace connects enterprises and MSMEs with OEMs and bulk suppliers of industrial goods and business supplies. It also provides a host of proprietary tools, enabling quick and quality procurement, purchase and payment visibility and extensive savings through price analysis. 

The platform deals in a broad range of industrial products, including safety equipment, hand and power tools, pumps and motors, testing and measuring instruments, IT and electronics, electricals, automotive, agricultural products and many more. Currently, it features more than 40 categories, offers 5 Lakh SKUs and also sells a vast selection of customised corporate gifts.

Procuring via the ShakeDeal website is simple, thanks to the platform’s fully digitalised  workflows and robust customer support. As in Amazon’s B2B marketplace, buyers can find product specifications on the site and manage their inventories easily with ShakeDeal’s procure-to-pay platform and Mozart, a vendor management system (more on that later). 

But ShakeDeal offers more than just operational ease. The platform consolidates bulk orders from buyers to ensure discounted pricing that is 8-10% lower than current market rates.  Further, to reduce fulfilment costs, shipment consolidation is achieved by combining multiple orders from different sellers into a single shipment when a buyer places several orders. 

Also, managing a large number of suppliers can be a challenging task for enterprises, as it takes up a lot of time and effort. To simplify this process, the platform has introduced ShakeDeal Mozart, an all-in-one vendor management system (VMS) that streamlines the downstream supply chain and ensures seamless operations (more on that later). 

ShakeDeal currently serves more than 10K MSMEs and 250 large enterprises and has a network of 4K+ suppliers. Among its notable enterprise customers are industry giants such as Adani and Vedanta groups, Siemens, Nayara Energy and Bharat Heavy Electricals (BHEL). 

The B2B platform has partnered with reputed third-party logistics (3PL) companies and ships to more than 20K pin codes across India, ensuring accessibility for businesses nationwide.

How ShakeDeal Mozart, OTIF Deliveries Are Powering E-Procurement

ShakeDeal’s journey started with a vision to create a strong procurement network of B2B buyers and suppliers. Although the Hegde brothers were familiar with industrial goods and supply chains, they were looking for a tech-savvy cofounder who could help them redefine B2B commerce. They met Santhosh Reddy at a networking event and bonded over the challenges and opportunities in the supply chain. Eventually, the three of them set up ShakeDeal in 2016.

In 2018, Mahendra Vora, founder of the PE firm Vora Ventures, joined the board as chairman and entrepreneur Kris Nair joined as president and CEO. Vora and Nair have brought their expertise in SaaS and enterprise domains. Nair has run an AI-focussed technology company, Ascendum, while Vora’s company, Acquiire, a P2P software company was acquired by Coupa, a business spend management company.

A year later, the startup ventured into the corporate gifting, and rewards and recognition space. Its goal was to help companies retain its valued customers, business partners and employees. According to Akash, businesses often face difficulties in managing their corporate gifting programmes, ensuring reliable delivery and handling multiple suppliers transparently. However, it is an essential brand-building exercise that should not be overlooked. Hence, ShakeDeal optimises procurement costs and ensures timely delivery of physical gifts and digital rewards to help maintain crucial relationships.  

The platform faced its biggest challenge during the pandemic. Much like online shopping, procuring industrial supplies and businesses digitally was the need of the hour when physical markets were shut down for months. However, a large number of enterprises and MSMEs still needed to be technologically equipped to initiate that process.

Undaunted by the turn of events, the platform helped businesses of all sizes with easy order-placing and transactions and pushed a robust CRM for constant hand-holding. It also rolled out ShakeDeal Mozart, a comprehensive vendor management system (VMS) powered by a rules engine, which serves as a supply chain control tower for carrying out critical tasks. 

For instance, it syncs with various ERPs to understand enterprise-specific purchase order (PO) formats, interacts with several business software programmes for data exchange, routes orders accurately and provides end-to-end order and shipment tracking. The VMS also features a single dashboard for complete visibility of POs and payments. These vendor management and supply chain optimisation services on ShakeDeal Mozart are available for a subscription fee.

To ensure timely delivery, ShakeDeal has built a network of fulfilment centres (FCs) for specific tasks. Urgent procurement is the priority here and the platform works closely with top suppliers for drop shipping (sellers shipping directly to customers). Just-in-time (aka JIT, where inventory does not need to be stored or managed until a purchase has been made online) model is available for less time-sensitive orders, while sellers’ fulfilment centres serve as inspection/quality control hubs for standard orders before packages are shipped out. 

Additionally, ShakeDeal keeps an inventory of fast-selling items in dedicated FCs, mainly near B2B buyers, especially those who prefer vendor-managed inventories (VMIs). This has helped it achieve on-time and in-full (OTIF) delivery rates consistently exceeding 95%, claims Akash.

The startup works with logistics players handling land and air freight across India to maximise OTIF. When an order is placed, ShakeDeal website automatically selects the most suitable shipping company for the job based on the shipment type and volume. This approach keeps shipping costs low, guarantees safe and timely delivery and allows customers to track their orders from start to finish.

How ShakeDeal Negotiates & Analyses Pricing To Trigger Up To 10% Savings

ShakeDeal stands out among B2B marketplaces due to its unique focus on price negotiations and cost savings for MSME buyers. The startup collates purchase requirements on its website and aggregates the vast demand (given its 10K+ customer base), thus paving the path for negotiations with sellers and securing cost-saving deals. In return, it retains a part of the savings as commission while passing on the rest to its buyers. All transactions are 100% GST-compliant and save 5-18% compared to B2C market rates, claims Akash.

On the other hand, enterprise customers can access a product catalogue with pre-negotiated rates and pay portal charges based on transactions. 

Sellers, too, have to pay a commission on every successful deal. 

This means ShakeDeal has a three-tier revenue model – earning transaction-based commissions from buyers and sellers and a fee for its Mozart services. According to Akash Hegde, ShakeDeal has always focussed on unit economics to drive growth. 

It is worth noting that base prices on the site remain competitive due to ShakeDeal’s Intelligent Engine. This tool rationalises costs by comparing product prices on websites/apps, as well as tracking sales history, supply chain expenses and other relevant market data. As a result, base prices for MSME customers are 8-10% lower than the average market rate, creating a win-win situation for buyers and sellers.

Have these measures enhanced buyer and seller stickiness?

Akash says that the startup initially used outbound marketing to reach out to vendors. But they are now voluntarily signing up to access the fast-growing customer pool. ShakeDeal aims to expand its vendor network further to improve overall engagement.

It will also enter new categories, such as production consumables and raw materials, opt for cross-selling to add value and target a revenue of INR 1,000 Cr in the next few years.

Bringing in new buyers is the most critical task to reach those ambitious goals. So, the startup is using organic and inbound marketing to gain traction in the long term. ShakeDeal hopes to disrupt the market more with content and brand campaigns. It also attends industry events to network with decision-makers and supply chain professionals, sharing insights and successful case studies to attract bigger clients. This approach has paved the path for chaperoning enterprise clients in their digital transformation journeys and deepening relationships with the existing ones. 

Could B2B Marketplaces Reshape The Future Of Procurement?  

The world has gone off its traditional trajectory in a post-Covid world and the procurement/supply chain segment has changed for good. However, not all MSMEs can develop in-house e-procurement systems, and many look forward to seeking help from enablers like ShakeDeal, IndiaMART, TradeIndia and the rest. With the country’s online B2B marketplaces expected to present a $200 Bn opportunity by 2030, compared to $20 Bn in 2022, per a Bessemer Venture Partners report earlier this year, the growth path is wide open. 

Akash of ShakeDeal also believes that B2B ecommerce focussed on industrial goods and business supplies procurement is growing exponentially as the right growth drivers are present at the right time. In fact, the rise of digital marketplaces is a given across B2B and B2C sectors due to maturing digital technologies, their fast adoption since the Covid-19 pandemic and favourable regulatory measures pushed by the government.

Tech enablement in supply chains is further driving user expectations, the founder says. As in the B2C space, B2B buyers are also looking for easy-to-use, customised solutions to meet their specific requirements. Options (read multiple suppliers), value and efficiency are key to unlocking that buyers’ market. Again, sellers can access a humungous customer pool without adding too much to operational costs if enablers help them navigate the initial hurdles of e-procurement.    

With their evolving technologies and business models, the likes of ShakeDeal have the potential to reshape the future of procurement and B2B ecommerce in India. But as Akash said, the outcome will depend on utilising the capability of these marketplaces to enhance operations and reduce costs.

Getting the digital environments, operational models and specialised scenarios for buyers and suppliers right at the first go is crucial in a nascent market like India (B2B ecommerce accounted for just 1% of the total B2B market in 2022, says Bessemer). Otherwise, the early mover advantage and trust in the brand may not work out as expected.

The post How ShakeDeal’s Tech Transformed Industrial Procurement For 10K+ MSMEs, 250+ Enterprises appeared first on Inc42 Media.

Who isn’t familiar with the horrors that the Covid-19 pandemic brought upon humanity? While the initial days were fun to stay inside the confines of the homes, everything started getting out of hand after that.  

And while the 21-day nationwide lockdown hardly did the trick to contain the spread of the deadly variant of the coronavirus family, it certainly led to behavioural and mental health issues among the population, with the elderly being hit the most.

According to a study by the Agewell Foundation, the elderly went through high degrees of Covid-19-related anxiety, insomnia, panic attacks, depression and chronic stress. 

“The pandemic took a heavy toll on the elderly due to their weak immunity. To make matters worse, many fell prey to depression due to loneliness at the time when social distancing was the new norm,” said Lavender Singh Rathore, the founder and CEO of healthtech startup Sarathi Healthcare, which provides holistic care to the elderly.

According to Rathore, the situation was all the more gruesome for the elderly, whose children or other family members were away and couldn’t travel as transportation services across the country came to a screeching halt. And then there was a flow of negative news from all possible means — TV channels, WhatsApp groups and social media platforms.

“My friends living away from their parents in different cities constantly asked me to keep a check on their parents and it was painful for me to see them in a constant state of fear,” Rathore said, adding that it proved to be the tipping point that triggered him to do something for the old. 

It was then that Rathore joined forces with Sushil Sharma, CEO and founder of Marwari Catalysts to launch Sarathi Healthcare in September 2020 to give the elderly the care they needed, both physical and mental, as the virus wreaked havoc. Rathore raised INR 5 Lakh seed funding from Marwari Catalysts, paving the way for the startup’s launch.  

Later,  in September 2023, dentist Saloni Munot joined Rathore’s startup as the cofounder and COO, while Rathore assumed the role of CEO and cofounder. Meanwhile, Sharma is the director of Sarathi Healthcare.

The Jodhpur-based healthtech startup provides the elderly access to medical services like health monitoring, homecare assistance, doctor consultations and other medical facilities (more on this later). Besides physical health services, the startup provides nutritionists, ‘concierge’ services (caretakers), wellness and health counsellors.

All these services and facilities can be accessed by the elderly (and their caregivers) 24/7 via the company’s website. The startup is also working on its app, HealthSarathi, which will be ready by March 2024. 

Meanwhile, the users can leverage the Sarathi website to book blood tests and body checkups and order health supplements. For this, the startup has a network of 12 hospitals, 38 super speciality doctors, 13 healthcare providers (concierge), 3 nutritionists, 3 counsellors and 12 healthcare brands.

Further, the services of the startup, which predominantly operates in Jodhpur, have already been used by over 6K individuals across Rajasthan. The startup also has the state government’s support under the iStart initiative. 

According to Rathore, iStart has been one of the earliest supporters in their journey. Under the state’s initiative, not only did the startup receive financial aid when it was in its nascency but also expert assistance in understanding the legalities of starting a company. 

The iStart programme of the state government proved to be a shot in the arm for the healthtech startup, which then soon lapped up investments from Ah! Ventures and a clutch of high-networth individuals based in Jodhpur, Nashik and Pune. To date, Sarathi Healthcare has raised INR 93 Lakh in Seed funding. 

Pertinent to mention that the startup clocked INR 1.02 Cr revenue in FY23 and is now looking at a 145% YoY increase in the metric. 

Meanwhile, without divulging many details, Rathore hinted that the startup was working on building a proprietary tech stack that would help bridge the communication gap between senior citizens and their families.

From Catering To Legacy Pharmas To Creating A Social Impact

Before embarking on his entrepreneurial journey, Rathore served the pharma sector for three decades, working with legacy players like Zydus Cadila, USV and Boehringer Mannheim.

It was not until the pandemic that the gaps in the country’s healthcare system started making sense, inspiring him to set up Sarathi Healthcare. 

Upon the startup’s launch, the founders encountered their first major challenge, which was navigating the complex legal and regulatory requirements associated with establishing a private limited company. Understanding legal compliance proved to be a daunting task.  However, Rathore said he was fortunate that the Rajasthan government intervened to simplify the processes for Sarathi Healthcare.

Now, the next challenge was to optimise the company’s operational systems. This obstacle was addressed by assembling a team of experts, addressing core issues and systematically tailoring solutions. 

Rathore said that this combination of experience, dedication and strategic problem-solving boosted Sarathi Healthcare forward, enabling it to have a meaningful impact in the healthcare sector.

The results of their efforts became evident when the startup onboarded the first 100 patients within three months of its launch and 800 users in the first five months. 

How Sarathi Healthcare Became A True Companion For The Elderly

Rathore told Inc42 that Sarathi Healthcare was founded based on the core belief that elderly care goes beyond just medical needs. Therefore, the Sarathi Healthcare team has been focussed on providing holistic care, encompassing all aspects of human well-being.

“Emotional well-being is just as crucial as physical health. If ignored, this could manifest in physical ailments,” the founder said, adding that Sarathi Healthcare harnesses the power of technology to provide round-the-clock healthcare services to the elderly.

While the startup understands the importance of wellness and emotional and medical care, it has not overlooked the social needs of the elderly. To further inculcate a sense of belonging, the startup has created a WhatsApp group for those who have signed up on the website to foster peer-to-peer interaction. The group also has doctors who share medical advice with the group. 

Moving on, Rathore and his team also acknowledge the fact that a lot of senior citizens may not be tech-savvy, and this is why Sarathi Healthcare provides 24/7 customer service to its users via a number on its site. 

Meanwhile, here’s a brief snapshot of the startup’s array of services for the elderly.

In addition to these services, users can order essential supplements, basic medical gadgets and first aid supplies. 

While talking about the startup’s plans, Rathore said that users can subscribe to all their services for INR 3K for three months, INR 5.4K for six months and INR 9.9K for a year.

According to the founder, 15% of the startup’s revenue is generated from caretaking services, 10% from nutrition consultancy and physiotherapy services, 15% from well-being and emotional counselling, lab and radiology services, and the remaining 60% from retail.

What’s On The Horizon? 

As of now, the founders of Sarathi Healthcare have set their eyes on setting their footprint in Tier  II and III cities of the country, with better healthcare facilities for the elderly.

To fuel its expansion plans, Rathore said, the startup is actively engaging with potential investors and VC platforms like GSK, Hello Tomorrow, PadUp Ventures, Build3 Accelerator and Goa Angels. 

Recognising that the startup cannot replace the role of actual family and children in the lives of the elderly, Rathore said that his team is laser-focussed on providing professional care tailored to meet the needs of senior citizens.

The need to address substantial gaps in elderly care, particularly in underserved areas and Tier II and III cities, cannot be undermined. This is because the country’s elderly population today accounts for more than 35% and the need to give them access to high-quality healthcare, both mental and physical, is greater than ever.

Fortunately, a growing number of startups like Sarathi are committed to tackling this issue with an iron hand. For instance, Sarathi Healthcare competes with names like 60Plus India, Alserv, ElderAid, and GetSetUp in the country’s geriatric care market, which is expected to become a market opportunity of more than $41 Bn by 2028.

The post How Sarathi Healthcare’s Holistic Care Approach Is Elevating The Lives of Senior Citizens In Rajasthan appeared first on Inc42 Media.

The auto financing landscape is driving a wealth of opportunities at home and abroad, thanks to the rise in vehicle demand and tech-powered business models. Of late, a growing number of lenders have shown interest in this consumer asset class propelled by online marketplaces, innovative loan service platforms, robust analytics (to determine creditworthiness) and rapidly growing dealership networks, increasing customer stickiness by assuring them auto loans. 

Globally, the market for car loans is projected to grow at a CAGR of 6.5% to reach more than $385 Bn by 2028, per a report published by Fortune Business Insights. But car ownership is still significantly low in India – only 8% of Indian families or one in 12 Indian households own four-wheelers. 

This is not likely to deter the overall growth of the auto loan segment, as used car financing has become popular among cost-conscious or first-time buyers, especially from Tier II and III cities. The market is growing at a fast clip, given many lucrative options such as zero down payment, attractive interest rates and flexible repayments. In fact, the used-to-new car ratio may reach 1.9 by FY27 and the number of pre-owned units in circulation may surpass 8 Mn by FY27, per a report jointly published by IndianBlueBook and Das WeltAuto. 

To ensure that loans for used and new cars, two-wheelers and electric vehicles (EVs) are accessible and affordable throughout the country, digital lending platform Rupyy was launched in April 2022 by CarDekho, a unicorn that has consolidated its position as a reliable marketplace for new and used cars and other personal vehicles. Rupyy also offers personal loans and loans against cars, but unlike many lending tech startups, it has a long backstory.  

CarDekho’s financial arm was set up in 2016 to service India’s steadily growing auto loan market. During the Covid-19 pandemic, the autotech group took note of the rollicking party witnessed by the used vehicle segment (buying one was a surefire way to stay off public transportation and health risks) and anticipated a long-term spike in demand across India, especially in non-metro regions. Also, CarDekho’s parent company, Girnar Software, obtained an NBFC licence in 2022 

Interestingly, the bet was not so much on the pandemic boost, which would cool off in time, but a deep dive into India’s rising socio-economic aspirations to own personal vehicles. Therefore, an end-to-end digital lending platform was built to connect buyers, dealers (deemed as owners of the vehicles in their respective inventories) and lenders (banks and other FIs), aligning hassle-free financing options with one’s budget and requirements and providing superior customer support. 

CarDekho Financial Services (CDFS) has merged with Rupyy to create an efficient ecosystem that covers the entire loan process – from application to approval to quick disbursal. The group’s NBFC arm also lends from its books, providing automotive loans to individuals and short-term financing to car dealers for acquiring inventories. 

Speaking to Inc42, Rupyy founder Namit Jain said that the platform has tied up with car dealers hailing from 90% of India’s pin codes and onboarded more than 37 lending partners such as HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra and YES Bank. It claims to have a strong presence in more than 1500 locations, including Delhi, Mumbai, Hyderabad, Bengaluru, Chennai, Jaipur, Kolkata, Pune, Surat, Coimbatore, Chandigarh, Kochi and more. 

As of August 2023, Rupyy claimed an annualised run rate of disbursement of INR 12,000 Cr loans and served an annualised customer  base of  2 Lakh+ customers. Jain did not reveal the numbers but said that Rupyy’s revenue soared by 88% YoY and its customer base increased by 82% in the same time.

The Rupyy Blueprint For Loans  

“Before 2016, securing a loan to purchase a used car was a rare occurrence in India. Only two to three out of every 100 used cars were sold with financing plans,” recalled Jain.

Rupyy was set up to address the need for a targeted solution, especially as the market for used car financing was largely fragmented and dominated by unorganised players. 

The leadership team at the erstwhile CarDekho Financial Services had already ventured into that space with a similar vision and tasted success. It was introduced to bring convenience and transparency to automobile loans when individuals buy pre-owned vehicles. But what started as a modest project soon evolved into a major business in the vehicle financing space. With further rebranding and reinforcements in place for Rupyy’s launch, the combined team has taken its efforts to the next level.

“Rupyy is committed to removing all traditional barriers across automobile financing. We offer a platform that is as accessible in bustling metros like Delhi as in quieter, semi-rural areas of Kerala,” said Jain. 

According to CarDekho, CDFS had a monthly run rate (MRR) of INR 400 Cr in used car loan disbursements at the time of Rupyy’s launch and an annualised run rate of INR 5K Cr in total loan disbursements in FY22.

In the past 19 months, Rupyy has expanded its loan offerings beyond the used car segment and explored new verticals. After successful pilots in new car financing in FY22, the platform has turned it into a full-fledged category and also entered other segments like two-wheeler loans.  

As a financial product distributor, Rupyy gets a commission from lending partners on every loan disbursed through its platform. According to Jain, the used car loan vertical is the most popular now, accounting for 91% of Rupyy’s revenue in FY23.  

To secure a loan from Rupyy, customers can apply on its website providing necessary documents like income proof and ID. They are then required to complete video KYC and sign the digital loan agreement. Rupyy partners with major banks, providing up to 90% of the asset’s value as a loan and subsequently, customers receive the money in your bank within 48 hours. In addition, Rupyy handles the transfer of ownership papers to the new owner through the regional transport office (RTO).

Riding on the tech wave, the brand had also launched a QR code-based onboarding system built on a microservices architecture (needed for developing and deploying a collection of services for ease of use). This solution helps users scan a QR code at any partner dealership and apply for a loan. Rupyy also uses AI/ML algorithms to automate document verification.

How Rupyy Navigated Speed Bumps To Carve A Niche

The car financing landscape has undergone a remarkable transformation in terms of scale and convenience, thanks to a strong focus on digitalisation. But ask Jain about the initial hurdles, and he would say it was not a large enough market at first. 

“As finance penetration was less than 3% in the pre-owned car segment, there wasn’t a slice of the pie to grab [in that niche space]. A whole new pie had to be baked,” he said.

Add to that a host of incumbents dominating the market – the likes of CARS24 Financial Services (a wholly owned subsidiary of the used car marketplace CARS24) and legacy players, including Mahindra Finance, the State Bank of India, Bajaj Finserv and Tata Capital. Undoubtedly, it was difficult for CDFS and its successor, Rupyy, to carve a niche.

But the biggest hurdle is the risk-averseness of lenders, as rising credit card and car loan defaults are hitting even developed economies like the US. In India, too, credit card dues surpassed INR 2 Lakh Cr in April this year, while outstanding personal loans increased by 20% in FY23 (INR 40 lakh Cr in February 2023), driven by vehicle and home loans.

Understandably, banks and other FIs were reluctant to tie up with a new lendingtech platform, although car loans are primarily secured – the automobile being the collateral. However, Rupyy has developed a data-backed asset pricing engine to help its lending partners calculate loan risks more accurately.

The intricacies of title transfer from the seller to the buyer were another critical challenge. The legal obligation lies with the buyer to transfer vehicle registration and pay all relevant fees. But processing these documents requires a lot of time and effort, especially when the parties concerned live in different cities. 

Rupyy has built a massive network of agents who cover more than 1,100 RTOs across India to address this issue. The platform has also developed proprietary software to set up a hyperlocal network of car dealers and display the nearest ones to potential buyers. Powered by these initiatives, customers can quickly pick up their vehicle documents and transfer car ownership without hassles.  

“Also, our platform gives visibility to small dealers previously overlooked by customers,” said Jain. “This has created a win-win-win situation. Lenders have expanded reach; dealers do more business and consumers have a bigger inventory to choose from.”

Tier II And Beyond Fuelling Pre-Owned Auto Loans, But Will It Be Sustainable?

Rupyy’s primary market research shows that the Indian used car financing market, valued at $ 6.82 Bn, is projected to reach a value of $13 Bn at a CAGR of approximately 24% during the forecast period from FY2024 to FY2027.

“This heightened demand for used car loans is poised to continue its upward trajectory, presenting significant opportunities for us,” said Jain. Rupyy is bullish about the burgeoning market and aims to achieve a 100% YoY revenue growth in FY24.

The platform has an ambitious growth plan of expanding its geographic coverage up to 97% of pin codes in next three-four quarters. It aims to capture more than 20% market share in the used car loan segment and will also focus on the new car loan category.

As a KPMG report points out, “motor finance is at the crossroads between the automotive and finance sectors”, evolving fast in sync with users’ requirements. With the loan market for used cars getting more organised, powered by the entry of more OEMs, new dealerships and tech-enhanced lending platforms, there will be more traction for certified pre-owned vehicles in India. But the bet on quality and reliability may drive up the price. 

Besides, people change cars more frequently nowadays – within three to five years – which means pre-owned cars are usually in good condition and will cost more. Some buyers are also open to pre-owned luxury vehicles due to their features and value for money. Essentially, used car prices are expected to rise as raw material and production costs go up, along with inflation and interest rates.  

Will it signify fewer sales in the long run, more loan defaults and neck-and-neck competition among digital lenders keen to leverage a booming yet affordable used car market? Will low-income earners-turned aspirational buyers be compelled to leave due to surging prices?  

Industry insiders think there is little risk of a sales crunch just now, as the Indian market for new and used cars is far from saturated. In fact, the latter has significant potential for growth and innovation if it can provide price transparency and ensure an excellent customer journey. More importantly, lending continues to play a critical role in both segments, as 65-75% of the cars in metros and non-metros are now purchased with financing. 

That is good news for finance providers like Rupyy who want to grow. Meanwhile, they must understand unique needs, build trust and tailor customer journeys to stand out.

The post How CarDekho’s Rupyy Is Democratising India’s Auto Loans Landscape appeared first on Inc42 Media.

A decade ago, most Indian consumers used to be hesitant about making online purchases. Instances like receiving wrong orders or not receiving them at all made most of us avoid the “Buy Now” button.

Fast-forward to today, ordering online has become a daily errand. This shift is not solely a matter of convenience, but rather it reflects a profound change in the way technology has permeated daily lives and redefined consumer expectations.

Upping the ante, third-party logistics (3PL) players have stepped in to respond to the evolving consumer demands. In the digital era, these 3PL players know that adaptability and scalability are the crucial elements for staying abreast of the preferences of today’s dynamic consumers.

Therefore, these players are laser-focussed on empowering traditional enterprises to scale their operations, enhancing both agility and cost-effectiveness flexibly. Not just this, many 3PL providers offer advanced data analytics, facilitating a deeper understanding of consumer behaviour and supply chain optimisation.

“With ecommerce and quick commerce coming in, traditional enterprises are now thinking about how to be present closer to the consumption centres. So, enterprises have outsourced fulfilment to 3PL providers with plug-and-play operations in all the major consumption centres and can ensure order fulfilments within 24 to 48 hours,” Ajay Rao of Emiza said.

Founded in 2015 by Ajay Rao and Jitendra Kumar, Mumbai-based Emiza serves as a supply chain enabler for consumer brands, assisting them in expanding their businesses both online and offline. Currently, Emiza works with more than 160 brands, has a presence in 12 Indian cities and operates a network of over 24 fulfilment centres.

In the contemporary landscape, where ecommerce, shorter delivery timeframes and the need for low-cost solutions dominate, the logistics industry is experiencing a surge in activity. To provide some perspective, data from IMARC Group indicates that the Indian logistics market achieved an impressive valuation of $259.5 Bn in 2022. Projections for the future are equally promising, with expectations of reaching $432.4 Bn by 2028, showcasing a robust CAGR of 8.8% between 2023 and 2028.

While technology has undeniably spearheaded numerous advancements in the logistics sector, this transition necessitates careful consideration of factors like scale, efficiency and regulatory compliance.

So, what does the founder & CEO of Emiza, Ajay Rao, recommend? Watch Rao’s interaction with Inc42’s Tapanjana Rudra on how third-party logistics players are changing the face of traditional enterprises.

The post How Third-Party Logistics Players Are Changing The Face Of Traditional Enterprises appeared first on Inc42 Media.

As new technologies are emerging faster than our institutional prowess to adapt and integrate them, business leaders are often at a crossroads, wondering if they should build technology tools in-house or procure off-the-shelf solutions. This classic dilemma, which is now more relevant than ever, has the potential to shape the future of a tech company, impacting its efficiency, growth and ability to innovate.

Talking about current business models which are running successfully worldwide and those that worked well in the past, Saket Agarwal, founder and CEO of the Mumbai-based SaaS consulting company Onnivation, said, “If you look at McDonald’s, Boeing, Wells Fargo, most of the banks, or most of the companies which literally print money, you will be surprised to know that they don’t make anything themselves.”

Build-versus-buy has its pros and cons. Developing the software programme in-house guarantees a level of customisation that is well-aligned with an organisation’s needs. It will also be cost-effective in the long run as the company does not have to pay licensing fees. On the other hand, buying the software is a quick solution. It helps embed extensive domain knowledge and industry best practices that may exceed the capabilities of an in-house IT team. Therefore, companies today need to go hybrid, introducing a mix of best-in-class ready-made solutions and differentiated, custom-built offerings.

“If your core business is to sell burgers or planes, thousands of components will be involved. If you start backward integrating into everything, you risk diluting your expertise in your core business,” explained Agarwal. 

Will Tech Collaboration Hurt Innovation, Integrity?

While the decision to collaborate with external entities presents a complex web of challenges and advantages, a fundamental question is at play: How does it impact the core value proposition of a tech company?

Interestingly, tech companies are expected to prioritise technology in their value proposition when responding to investors’ queries. Neither markets nor investors take kindly to the notion that a tech company may not have complete control of its intellectual property.

Dhruvil Sanghvi, founder and CEO of the logistics SaaS startup LogiNext, also raised this concern. “If something critical on your platform is not controlled or developed by you, it is not your intellectual property in this new-age business scenario. It’s not really flying.”

Therein lies the paradox. Such collaborations can amplify the reach of a technology company, enhance products/services, or address market gaps. But they can also introduce elements beyond one’s control, diluting the company’s tech identity.

But that is not to say that partnerships should be shunned entirely. These can help scale up a tech business, gain entry to new markets and offer diverse solutions. The challenge lies in maintaining a delicate balance between collaboration and uniqueness.

Sanghvi delved deeper into the complex dynamics, especially in the Indian context. “Does this inclination to do everything in-house indicate where a company’s focus lies?” he queried.

“In India, there is a tendency to handle tasks internally rather than seeking external partners. It is partly due to a less mature vendor ecosystem and vendor relationships compared to other parts of the world,” he observed.

Agarwal of Onnivation drew an analogy between such business compulsion and the must-do of a skilled batsman. “Often, we hyper-optimise, focussing on our weaknesses. But if one is a great batsman, every minute he spends learning how to bowl [because he does not bowl well and considers this a weakness] is a minute lost when he could have become a better batsman.”

His perspective underscores a common trend within the startup ecosystem – the inclination to manage everything internally. This can lead to dwindling focus away from what should be a priority, a reluctance to delegate tasks and an unwillingness to relinquish control.

Eventually, it is all about walking the tightrope that requires purposeful navigation, a sense of unwavering priority and the capability to adapt. In essence, businesses must operate holistically in sync with the challenge and promise of a tech-driven future.

In this episode of the Masters Of SaaS series hosted by Inc42, watch Dhruvil Sanghvi of LoginNext in conversation with Saket Agarwal of Onnivation explore the delicate balance between autonomy, collaboration and innovation in a fast-evolving SaaS landscape.

The post Build Or Buy? How Tech Startups Can Collaborate And Customise To Corner Success appeared first on Inc42 Media.

After a long period of relative dormancy due to travel restrictions and consumer fear, traveltech companies are seeing a surge in bookings, thanks to a strong rebound of business and leisure travel. 

In fact, The United Nations World Tourism Organization (UNWTO) suggests that about 235 Mn tourists travelled globally in the first three months of 2023, an 80% increase from pre-pandemic levels. Other reports show that the number of foreign tourists who arrived in India between January and June 2023 was 106% more than the figure in the previous year. 

Of course this surge has opened a door of opportunities for India’s traveltech startups and while most can boast of providing end-to-end value in the travel chain, standing out among the plethora of rivals is a matter of customer experience and personalisation. It’s not enough to just offer travel and hotel bookings, or features to ease check-ins and the boarding — the focus is on personalisation that caters to the unique needs of each traveller.

In the post-pandemic world, there’s also a heightened focus on health and safety which has made customer communications key for gaining trust, building engagement and repeat bookings. 

Simply put, it is vital to effectively and conveniently communicate with travellers at the right time and place. And in this day and age that means WhatsApp. 

With more than 2 Bn users across 180+ countries, Meta-owned WhatsApp is the most popular global messaging app and it’s an opportunity that businesses can no longer ignore. 

“Leveraging the dynamic capabilities of WhatsApp, Karix enables two-way communication stream, fostering instantaneous and impactful customer engagement,” explained Sonia Kaul, vice president, product marketing of Mumbai-based martech platform Karix. 

She further said that WhatsApp as a platform transforms the narrative of customer interactions, allowing businesses to deliver not just booking confirmations and travel updates, but an enriched customer experience.

Even though WhatsApp seems like the obvious solution to enhancing the customer experience, differentiation through targeted communication is essential. In the context of travel, for instance, if a customer seeking to advance their booking arrangements receives reminders about their existing booking, the intended purpose is defeated. 

This is where WhatsApp Business Solution Providers (BSPs) like Karix come into play, easing the path for traveltech platforms to implement WhatsApp Business APIs to enable personalised customer support.

Karix’s capabilities include chatbots that help businesses reduce call centre loads and improve turnaround time for customer support. Chatbots can automate query handling and offer features such as quick replies to resolve queries faster. Besides seamless customer support, Karix adds value by enabling convenient handling and management of bookings directly through WhatsApp.

Karix has tied up with large traveltech players such as MMT for flight, bus and train booking. Besides MMT, it has also partnered with bus and train ticketing platform redBus and the Chennai Metro Rail Limited — more on how this works later. 

Smart Personalisation With WhatsApp

In a sea of automated marketing solutions, WhatsApp commerce stands out because of the reach and the direct model of conversational commerce — companies can connect with users more intimately, and showcase products or services directly without a break in the user journey. The convenience is undeniable, and the evolving preference of individuals to gravitate towards new-age messaging apps, in lieu of tools like email, calls and SMS is also clear. 

WhatsApp’s familiarity is great, but the fact businesses can enhance their communication strategy through rich media content like videos, photos, voice notes and stickers is even more appealing. A Kantar study reveals that over 70% of Indians prefer messaging apps over emails or website visits to resolve issues, making WhatsApp a powerful business and brand communication channel.

“WhatsApp transcends traditional communication barriers, creating a fertile ground for meaningful and enduring conversations with a global audience. Its intuitive interface, coupled with the economic advantage and the capability to curate comprehensive catalogues, empowers travel platforms to disseminate not just information but experiences,” said Kaul.

She recommended using the ‘Click-to-WhatsApp’ feature that lets partner businesses embed a click button on their ads to encourage their user to connect on WhatsApp directly. 

Backed by in-house AI capabilities, Karix enables data collection and real-time customer data analysis across touchpoints and helps traveltech businesses improve customer segmentation based on behaviour and their unique needs. Most communication on WhatsApp is automated because the API can be connected to the booking systems. This allows businesses to initiate relevant messages, enabling personalised and effective communication with customers without much human intervention 

In addition, Karix’s chatbot builder allows them to build customised WhatsApp chatbots and resolve queries quickly. In case queries are too complex, the chatbot lets customers transfer the queries to a human agent, thereby working as a smart filter. 

How Karix Helped MMT, redBus

Despite being one of the oldest and largest traveltech players in India, MMT wanted to up its game and make a lasting impression on its consumers, especially non-app users and wanted to connect with them on a real-time basis. The traveltech player was also looking for a way to capture customer feedback and enhance the net promoter score, which helps it gauge the possibility of repeat usage. 

In 2021, it partnered with Karix to address these challenges. Through this partnership, it decided to leverage WhatsApp to promote its reward-based programme MMT Black and communicate with its high-value customers.

With this integration, MMT was also able to send interactive messages and timely responses to customers. Karix also helped the company share highly customised messages, allowing it to reach the right audience and increase the relevance of the conversation. For example, it was able to contact flight bookers just a few hours before their departure with personalised cross-selling communication on WhatsApp such as offering airport cabs at reduced fares.

Users have shown a higher affinity for WhatsApp messages, leading to a significant improvement in MMT’s click-through-rate compared to app-based push notifications, revealed Kaul. Although she did not disclose the number, she said that the integration of automated invitations and one-click signups has remarkably expanded the subscriber base of its MMT Black programme.

For redBus, WhatsApp integration proved to be a game-changer. The brand claims that 22 Mn+ people travel on intercity trains daily (redRail) but they find it difficult to login to different apps to know details like the PNR status or tracking the train on its journey.  

In May 2022, redBus tied up with Karix to allow its customers easy access to their PNR status and live train status on WhatsApp.

This ensured a seamless train journey which could otherwise feel long and exhausting for most customers due to lack of visibility on such information. 

The PNR and LTS (live train status) have become extremely popular among redBus users, Karix claimed. In fact, the LTS feature saw a 5X uptick in usage in just two months after it was launched on WhatsApp.

“Through our partnership with redRail, we are making use of the latest technology to deliver real value for consumers and travellers. With advanced platform capabilities and the dedicated efforts of the teams, we are committed to innovating and building the next generation of digital customer experiences,” said Kaul. 

The Future Of Travel 

According to an Inc42 report, internet penetration in India currently stands at 61% and the number of Indian internet users will likely exceed 1.3 Bn by 2030. As in other consumer services, rising internet adoption will change how Indians travel — there’s little doubt that digital platforms will continue to flourish. 

But when it comes to the competitive edge, a lot hinges on personalised communication and customer support.

“Keep the safety of your users at the core of your communication strategy. Also, leverage an omnichannel presence and strive to make the entire process frictionless and convenient by offering a one-stop solution for all their requirements,” advised Kaul. 

She added that besides communication, traveltech platforms can leverage WhatsApp for revenue-centric activities — personalised discounts and offers, loyalty programmes and content marketing to drive upselling. 

While private travel players have already begun using WhatsApp and messaging apps, even public transportation authorities have shown the appetite to move to conversational customer experience (CX) solutions. In May 2023, Karix partnered with Chennai Metro Rail Limited to allow more than 2.5 Lakh daily commuters to get timely information and access services such as checking fares, booking tickets and route maps— all through WhatsApp.

Sonia claimed that the WhatsApp chatbot has witnessed a great response, garnering over 50K users within a few hours of its launch. “The overwhelming response from the commuters demonstrates a strong desire for an efficient and user-friendly ticketing solution,” shel added. 

According to Business Wire, the value of transactions enabled by conversational commerce  is set to surge from $21.9 Bn in 2023 to $51.9 Bn by 2028. Adoption of conversational commerce by large companies and institutional players will drive this growth. 

Messaging apps such as WhatsApp are constantly improving their business-centric APIs and tools. And how Karix, WebEngage and others of their ilk make conversational commerce more personal is definitely something worth watching.

The post How WhatsApp Commerce Is Enabling Traveltech Startups To Rewrite Their Communication Playbook appeared first on Inc42 Media.

The Birla Institute of Technology and Science (BITS), Pilani, successfully concluded the 19th edition of its student-led startup accelerator programme, Conquest, with a Demo Day in August.

Over a period of six weeks, the selected cohort of 11 startups benefited from comprehensive online mentorship, networking opportunities, and skill enhancement through hackathons and virtual entrepreneurial sessions. The programme culminated in the ‘finale week,’ featuring an in-person demo day event in Bengaluru.

This year’s Conquest attracted around 2,200 applications from entrepreneurs across India. From these, the chosen 11 startups were awarded an equity-free grant of $12K (approximately INR 10 Lakh) each, with the opportunity to secure additional funding from an investment pool of $5 Mn. 

The panel of investors included industry stalwarts such as Pranav Pai from 3one4 Capital, Sharan Aggarwal from Leviosa, and Sameer Brij Verma from Nexus Venture Partners, among others.

The 2023 cohort showcased a diverse range of startups operating in sectors such as AI, social impact, agritech, SaaS, fintech, and robotics. 

Here Are The Startups From Conquest Accelerator Programme

Glovatrix

• Founded In: 2021
• Founders: Aishwarya Karnataki, Parikshit Sohoni
• Headquarters: Pune, Maharashtra
• Sector: AI, social impact

Launched in 2021 by Aishwarya Karnataki and Parikshit Sohoni, Pune-based Glovatrix aims to revolutionise communication for individuals with hearing impairments. Its product ‘Fifth Sense,’ is an AI-driven device that facilitates communication by converting sign language gestures into spoken words and text.

The ‘Fifth Sense’ is a wearable device resembling a glove. It’s engineered to convert sign language gestures directly into audible speech and written text, making sign language accessible and comprehensible to all. It allows users the freedom to engage in everyday activities, from medical consultations to office presentations, independently, without the intermediary of sign language interpreters. 

Equipped with sophisticated sensors that detect intricate finger movements, the device is adeptly trained in Indian Sign Language, incorporating a real-time feedback system for continual improvement. Glovatrix unveiled the ‘Fifth Sense’ on September 17, 2023, in conjunction with World Deaf Day, marking a pivotal moment in the company’s journey.

Verdant Impact

• Founded In: 2020
• Founders: Manish Kumar
• Headquarters: Jaipur, Rajasthan
• Sector: Agritech

Jaipur-based Verdant Impact is dedicated to empowering farmers with advanced livestock management and agricultural techniques. As a comprehensive full-stack animal husbandry platform, it harnesses the power of technology to provide a suite of services tailored for modern agriculture. 

One of the key innovations of Verdant Impact is its adoption of blockchain technology to create a secure and transparent online marketplace where farmers can trade livestock with ease and confidence. 

Additionally, Verdant Impact integrates RFID technology through smart ear tags, enabling farmers to monitor and evaluate the health and quality of their livestock. This technological synergy assists farmers in making well-informed purchasing decisions. 

The startup also prioritises animal health through its ‘animal ICU’ service. This aspect of the platform gives farmers regular health check-ups, vaccinations, and the ability to quickly find medical help in emergencies. Complementing these services is ‘Kisan Radio,’ a round-the-clock broadcasting service that shares vital agricultural information with the farming community. 

To address the critical need for quality animal feed, Verdant Impact retails these essentials via its online portal. They further distinguish themselves with their innovative ‘cattle credit card’ programme, allowing farmers to acquire feed on credit, thus maintaining a continuous supply of necessary nutrients for their livestock. Verdant Impact takes pride in having positively impacted over 4.5 Mn farmers across the country.

Greenpod Labs

• Founded In: 2019
• Founder: Deepak Rajmohan
• Headquarters: Chennai, Tamil Nadu
• Sector: Agritech

India ranks as the world’s second-largest producer of fruits and vegetables, yet an alarming 40% of this bounty deteriorates before it ever reaches the consumer. 

Observing this critical issue, Deepak Rajmohan established Greenpod Labs, a startup focussed on extending the freshness of produce. 

Greenpod Labs has developed an ‘Active Packaging’ (FSSAI certified) solution designed to prolong the shelf life of fruits and vegetables. This packaging technology decelerates the ripening process and prevents the growth of detrimental microorganisms. 

Each packet is meticulously tailored for specific types of produce, ensuring optimal preservation. This advanced packaging has demonstrated the capacity to extend the longevity of fruits and vegetables by 40-80%, a significant leap in combating food wastage. 

Moreover, Greenpod Labs claims that its packaging leaves no harmful residues on the produce and retains the essential nutrients. 

Flo Mobility

• Founded In: 2019
• Founders: Manesh Jain, Mohan Sivam
• Headquarters: Bengaluru, Karnataka
• Sector: AI, Robotics

Founded in 2019, Bengaluru-based Flo Mobility aims to democratise autonomous technology, making it both affordable and accessible. 

The startup’s premier product, Flo Atom, is an autonomous electric outdoor mover that can be operated remotely. It not only facilitates the management of vehicle fleets but also provides real-time data crucial for operational efficiency. 

Originally, Flo Mobility concentrated its efforts on the construction industry by automating vehicles such as dumpers. With time, the startup broadened its technological applications to encompass sectors like hospitality, mobility, agriculture, and warehousing. 

The primary objective is to streamline the adoption of self-driving technology across various industries. The founders’ compelling vision and the transformative potential of their technology have captivated investors. Notable backers include DevX Venture Fund, Venture Garage Angels, and Blume Founders Fund, collectively contributing $400K in funding in 2021.

Hackrew

• Founded In: 2018
• Founders: Sai Krishna Kothapalli
• Headquarters: Hyderabad, Telangana
• Sector: SaaS

In 2018, Sai Krishna Kothapalli identified two significant cybersecurity hurdles for businesses: escalating data breaches and the complexity of regulatory compliance for data protection. In response, Kothapalli founded Hackrew to streamline security testing and regulatory adherence for businesses. 

Hackrew offers a unified dashboard designed for both internal and external security and development teams in organisations. This tool facilitates the detection of security vulnerabilities, sharing of penetration testing reports, and proactive measures to prevent future security weaknesses. 

Paddleboat

• Founded In: 2022
• Founders: Shaswat Mishra, Ashutosh Raj, Sri Prasad Rajendran
• Headquarters: Chennai, Tamil Nadu
• Sector: SaaS

PaddleBoat offers a dynamic knowledge-sharing platform for companies, infusing gamification to stimulate employee learning. It promotes a culture of mutual learning among peers, accelerating onboarding processes, enhancing productivity, and fostering teamwork. 

Dew, PaddleBoat’s AI assistant, boosts personal productivity by providing customised suggestions, aiding in brainstorming, and facilitating collaborative creation. Dew also acts as a knowledge repository, enabling team leaders to monitor training time investments, recognise significant contributors, and pinpoint skill deficiencies among their teams. 

For instance, consider the collaboration between PaddleBoat and the digital sexual wellness clinic Allo Wellness. Allo struggled with a scarcity of sexual health experts and limited treatment offerings. Their primary hurdle was to onboard and train healthcare professionals efficiently, create compelling content, and ensure accountability. 

PaddleBoat addressed this challenge by offering an intuitive, cross-learning platform that streamlined the training process for health experts. This partnership resulted in rapid onboarding and an enhanced quality of sexual wellness services provided to Allo’s clients.

Swift Robotics

• Founded In: 2020
• Founders: Sunny Duseja, Michael Kostyal
• Headquarters: Mumbai, Maharashtra
• Sector: Robotics

Frustrated by the lengthy queues in mall food courts and the slow pace of medicine delivery and report handling in hospitals, software engineers Sunny Duseja and Michael Kostyal took the plunge to solve it. 

Swift has developed robots that enhance indoor food delivery efficiency in malls and speed up medicine distribution in hospitals through automation. It aims to reduce human dependency, allowing people to move away from monotonous tasks and ultimately elevating service standards. 

The startup has made its mark in locations such as Delhi’s Ambience Mall, an NHS hospital in London and Mumbai’s Reliance Hospital. Duseja and Kostyal envision deploying 1,500 robots in the near future, transforming service delivery mechanisms. 

Ving Hybrid

• Founded In: 2020
• Founders: Aditya Pisupati, Amitabh Patney
• Headquarters: Bengaluru, Karnataka
• Sector: SaaS

During the COVID-19 pandemic, as the global workforce transitioned to a new working paradigm, Aditya Pisupati and Amitabh Patney, product developers at CISCO, recognised the critical need for tools that support a hybrid working model. 

Experiencing the challenges of remote work firsthand, they understood the importance of fluid communication and seamless virtual collaborations, particularly for meetings. In response to this need, they developed Ving Hybrid, a video conferencing platform designed to streamline remote collaboration. 

Ving Hybrid distinguishes itself with a user-friendly interface that initiates meetings through a simple QR code scan, eliminating the complexities often associated with virtual meeting setups. The platform claims to be cost-efficient, reducing licensing and hardware costs by 70%, presenting organisations with an economical solution for their communication needs. 

It’s designed for universal compatibility, ensuring that users can connect effortlessly across various devices. 

VouchPay

• Founded In: 2020
• Founders: Nithin Prakash, Krishna Jonnakadla
• Headquarters: Bengaluru, Karnataka
• Sector: Fintech

Nithin Prakash and Krishna Jonnakadla launched VouchPay in 2020, focusing on enhancing trust and security in escrow transactions. Escrow services play a pivotal role in safeguarding both buyers and sellers by holding the payment in a secure account until the terms of the agreement are met.

Recognising that trust is a fundamental component in transactions, VouchPay expedites the trust-building process. The platform offers a digital escrow dashboard, designed to cater to diverse transaction needs, streamlining the process for individuals and businesses alike. Its efficiency in facilitating trust makes it easier for users to execute and receive bulk payments securely.

With a positive impact on over 50 organisations, startups, and businesses, VouchPay has established its value in the market. The startup is now setting its sights on expanding its services to accommodate international payments, broadening its scope and potential impact.

Workroom Automation

• Founded In: 2022
• Founders: Abhinav Atthota, Rohan Agarwal
• Headquarters: Hyderabad, Telangana
• Sector: SaaS

Recognising the inefficiencies plaguing manufacturing enterprises, such as manual operations, scattered data, and lack of real-time insights, software engineers Abhinav Atthota and Rohan Agarwal founded Workroom Automation. The startup’s no-code application, ‘Connected Factory’, addresses these challenges head-on. 

‘Connected Factory’ enables manufacturers to easily create custom apps without any coding knowledge, effectively centralising shop floor data. This consolidation of information enhances visibility, efficiency, and product quality. By integrating people, processes, and machines into a singular system, ‘Connected Factory’ facilitates the collection and analysis of real-time data. This allows manufacturers to streamline their operations, improve decision-making, and ultimately boost productivity.

Zeyka

• Founded In: 2021
• Founders: Yug Aggarwal, Vipul Takkar
• Headquarters: Gurugram, Haryana
• Sector: AI

Zeyka has developed a 3D design software that revolutionises the designing and planning processes for designers and architects, enhancing their productivity. 

Cofounded by Yug Aggarwal and Vipul Takkar in 2020, Zeyka cuts the time required for design projects by 58%. The platform allows architects and designers to incorporate real materials and products from leading brands directly into their design phase, facilitating accurate visualisations and minimising the need for subsequent revisions. 

By streamlining material discovery, selection, and procurement, Zeyka enables architects to focus their expertise on the creative aspect of designing, optimising both time and resources.

The post Meet The 11 Early Stage Startups From BITS Pilani Conquest’s 19th Edition appeared first on Inc42 Media.

Kerala has created a vibrant startup ecosystem over the years, with the state now boasting more than 4,000 startups. These startups have flourished in the state as educational institutions, government initiatives like the Kerala Startup Mission (KSUM), and startups have worked together to drive innovation and entrepreneurship. 

The increase in the number of startups in the state has also grabbed investors’ attention, with Kerala-based startups attracting $551 Mn in venture capital through 110 funding deals between 2016 to 2022. 

Now, in order to further bolster the state’s startup ecosystem, the KSUM, which is backed by the Kerala government, is hosting the fifth edition of its beach startup festival, Huddle Global, from November 16-18, 2023 in Thiruvananthapuram.

The event will bring together industry leaders, high-net-worth individuals (HNIs), government officials and innovative startup founders under one roof for networking, collaborations, pitching sessions to raise funding amid the ongoing funding winter, among others.

The KSUM is the Kerala government’s nodal agency for promoting entrepreneurship and incubation activities and intends to create opportunities for startups to secure financial and technical support.  

Commenting on the event, Anoop Ambika, CEO of KSUM, said, “Huddle Global 2023 will facilitate entrepreneurship and explore avenues for startups to achieve unprecedented growth and speed.”

About 15,000 attendees, including 5,000 startup founders, 400 HNIs, 300 mentors, 200 corporates and 150 speakers, are expected to attend the event, which will promote collaborations and partnerships in areas like augmented reality (AR), virtual reality (VR), fintech, life sciences, spacetech, healthtech, blockchain, Internet of Things (IoT), egovernance, artificial intelligence (AI), machine learning (ML), among others.

The event’s programme includes a startup expo for founders to showcase their products and services, corporate and investor-led masterclasses and workshops, a coding programme, pitching sessions, roundtable discussions, investor meetups, and opportunities to get mentored by industry leaders.

Industry leaders and government dignitaries like PA Mohammed Riyas, minister for public works department and tourism, Kerala; Shashi Tharoor, MP; Rathan U Kelkar, secretary, electronics and IT, Kerala;  Federico Salas Lotfe, ambassador of Mexico to India; Achim Burkart, consul general, consulate general of the Federal Republic of Germany in Bengaluru; Hans-Joerg Hoertnagl, commercial counsellor and trade commissioner, Advantage Austria; Ajai Chowdhry, cofounder of HCL; Lal Chand Bisu, cofounder and CEO of Kuku FM; Sneha Rachel Mathew, strategy and operations at Google, among others, will be present during the event. 

Kerala CM Pinarayi Vijayan will also be attending the event, as per information available on Huddle Global’s website. 

The leaders will give keynote sessions, hold leadership talks and discuss technology. Bringing in a global perspective will be international embassies who will hold conversations with industry experts, investors, venture capitalists and corporate leaders. 

These industry leaders will delve deep into understanding products, services, design, marketing strategies, capital structuring, fundraising and business development and decode the learning to the budding startup founders. 

Additionally, startup founders will get an opportunity to pitch their ideas to investors and coders from Kerala will get to showcase their coding skills that could hold the potential to solve tech challenges.

Huddle Global 2023 is supported by Startup India, Headstart, TiE Kerala, GTech, Startup Middle East, Habitat for Humanity and Technopark Today.

The fourth edition of the event, held in 2022, witnessed the participation of 3,000 startups, 200 mentors, 100 corporates, 80 speakers, 70 investors and 50 exhibitions. Industry leaders and government dignitaries like Mohit Gupta, cofounder of Spinny; K M Abraham, chief principal secretary to the chief minister of Kerala; Prateek Maheshwari, cofounder of PhysicsWallah; Sairee Chahal, CEO & founder of SHEROES and Mahila Money participated in the event.

Now, let’s take a look at the key highlights of Huddle Global 2023.

• Marketing Insights, a session on marketing, will decode the cost-effective marketing tools and techniques to early stage startup founders to help them boost the market presence and brand recognition of their startups.
• Founders Meet will unite successful startup founders and entrepreneurs for collaborative discussion and to create a community of entrepreneurs.
• Kerala Top 100 Coders will throw a spotlight on top coders in the state, facilitating connections with startups and industry leaders to bring Kerala’s tech talent to the global forefront.
• ‘Impact 50’, a startup showcase, will give them an opportunity to present their products and services to potential investors.
• Pitch It Right will equip startups with essential knowledge of investor expectations for pitches, covering topics like team dynamics, problem statements, product development, market strategy, financials, revenue models, target audience and pricing.
• Tigers’ Claw will provide a platform for investors to evaluate startup pitches with a benchmark scorecard.
• Close the Deal will facilitate connections between startups and corporate entities/governments for potential funding opportunities. 

Events like Global Huddle have been instrumental in making Kerala a thriving startup landscape. In 2023, 652 new startups were registered in the state, with Ernakulam leading with 180 new startups, followed by Thiruvananthapuram with 71. Going ahead, this growth, with support from initiatives like KSUM, will contribute significantly to driving India’s economic growth.

The post KSUM’s Huddle Global 2023 To Bring Together Founders, Investors To Boost Local Startup Ecosystem appeared first on Inc42 Media.

After three years into a debilitating pandemic, the job market has changed worldwide and India is no exception. Since the ‘great recession’ triggered by Covid-19, traditional nine-to-five jobs gave way to gig work, work from home (WFH) and remote jobs. Next came the ‘great resignation’, the ‘quiet’ and the ‘loud’ quitting’. But the workforce pushback saw enough backlash in large-scale tech layoffs and the latest back-to-office mandates.

As the frequent waves of change continue to rock a once-placid hiring market with its conventional norms and red flags, reinventing recruitment becomes the hallmark of new success stories that companies aspire to achieve.

In a fast-evolving jobscape where adaptation is critical, practical application of degrees matters most and diversity dictates the talent hunt, most organisations are embracing new-age hiring strategies for optimum outcomes. From using AI and automation for talent scouting to remote interviews, skill-based assessments and online onboarding for real-time collaboration from anywhere, the tech-age tools and methods have unlocked value-added features for maximum productivity and professional growth.

To understand where the best candidates are and how to recruit them, Inc42 joined hands with Fountain, a leading platform for high-volume hiring, to host The Focal Point Roundtable on The Future Of Work: Reimagining Hiring In The World Of AI And Tech. The event explored the role of AI/ML in recruitment, the significance of employer branding and how smart hiring practices could address various concerns and challenges.

A wide range of critical topics were discussed, including:

• The driving forces behind the changing landscape of recruitment practices
• The impact of AI/ML in reshaping the recruitment process
• Effective strategies for communicating the employer brand to the emerging Generation Z workforce

Chandana GC, director of workforce transformation at PwC India, moderated the roundtable.

A host of hiring decision-makers from various startups were also present at the session. Among them were Darshith Satheesh, head of HR at Portea Medical; Naveen Tom Alex, HR director at Shadowfax; Seema Vijay Singh, CHRO of MediBuddy; Ketan Krishna, people and governance head at RentoMojo; Ashish Bansal, VP (HR) at BlueStone; Anvith Murthy, VP-HR (IT, admin and procurement) at Rapido; Rupini Raman, HR head at Yulu; Farhan Ahmed Hazarika, head of talent and people, Teachmint; Maxson Lewis, founder and MD, Magenta Mobility; Ravi Loyal, GM (talent acquisition) at Swiggy; Naveen Kumar N, HR head at Licious; Vinayak Srigovindan, HR expert, and Sean Behr, CEO of Fountain.

Hiring Innovations: The Use Of AI/ML & The Complexities Of Modern Practices

With the employment landscape undergoing a technology-driven transformation, the latest trends driving the hiring process reveal a complex interplay encompassing possibilities and obstacles. Therefore, a change in mindset is required to sync technology and human hiring to help businesses and the workforce move forward.

“Hiring tools have evolved in surprising ways,” said Seema Vijay Singh of MediBuddy. “I never expected we would use platforms like Instagram for recruitment, but it is becoming prevalent. This shift is quite remarkable, as any technological changes we introduced were often met with resistance in the past. So, we had to push for adoption, resulting in many follow-ups and challenges. But the current landscape is quite the opposite.”

While social media is driving the diversity pool and redefining work culture, tech advancements in areas like AI/ML provide valuable solutions for managing the high volume of job applications companies regularly receive. AI-powered applicant tracking systems (ATS) are particularly helpful here as they can swiftly scan and rank resumes, allowing recruiters to focus on the most promising candidates.

In addition, tech tools can ensure more objective evaluations by eliminating human biases, thus reducing potential discrimination and fostering fair hiring. But the question is: What additional benefits can these tech innovations bring to add value?

“In my experience, leveraging technology is not only about sourcing profiles. It is about understanding capability gaps within an organisation, comprehending the risks in the current talent landscape and the ability to come up with suitable solutions,” said Naveen Kumar N of Licious.

For a deep dive into the trends shaping the future of hiring, tune in to the roundtable discussion – The Future Of Work: Reimagining Hiring In The World Of AI And Tech.

The post The Future Of Work: Reimagining Hiring In The World Of AI And Tech appeared first on Inc42 Media.

In the past eight years, Inc42 has extensively documented how Indian startups have increasingly attracted global investors. Top investment titans including the likes of Tiger Global, Peak XV, SoftBank, Accel, Temasek and more put their trust in young Indian ventures. Many of these bets have quickly grown, showing strong margins and achieving the coveted unicorn status with $1 Bn+ valuations. 

In fact, a Dealroom-London & Partners report said India ranked fourth in tech venture capital investments in 2022 despite a tough macroeconomic environment. The top three countries were the US, China and the UK. 

Given this momentum, it is no surprise that Mondelez International (previously known as Cadbury), a 100+ year old  F&B giant, has forayed into India’s dynamic startup ecosystem. In  its 75th  year in India, the parent company of iconic brands like Cadbury, Oreo and Tang launched the CoLab accelerator programme in partnership with Huddle, an Indian startup accelerator and VC fund. The initiative took off in August 2023, and the shared vision is to foster early stage startups to create mutual synergies.

Out of approximately 250  applications received, CoLab handpicked five innovative snacking brands for the 12-week programme. Besides, $20K equity-free grant, the selected startups received extensive training and mentoring from the seasoned leaders of Mondelez and distinguished veterans of Indian startups.

It’s time to turn the spotlight on the final phase – a ‘startup showcase’ where the five brands will showcase their disruptive business ideas to an exclusive audience.

Mondelez India, in association with Inc42 and programme partner Huddle will now host the CoLab’s ‘Showcase’ event in Mumbai on October 31, 2023, to celebrate the ‘burst’ of startup flavours and offer the chosen five yet another funding opportunity.

“We launched CoLab India to reinforce our commitment towards consumer-centric innovation in a dynamic market such as ours. As we celebrate 75 years of being in the country, we are seeking to provide our strong experience and deep consumer understanding to disruptively delicious startups, in capitalising on new trends, capabilities and consumer preferences” said Sonali Mitra, director strategy, Mondelez India.

She further added that CoLab India delivered on the company’s intent and ambition. “Through the 12-week accelerator journey, together we have unpacked some exciting insights and opportunities within the Indian snacking landscape,” she said.   

“The journey for the CoLab India Class of 2023 has been impressive throughout these 12 weeks of sustained efforts in understanding the pervasive functional efficiencies, innovative capabilities and scale. CoLab hasn’t been just an accelerator for the founders, it’s been a nexus of equity, social infrastructure and invaluable connections,” said Sanil Sachar, founding partner at Huddle. 

The event will bring together more than 80 D2C-focussed investors, stakeholders from the VC ecosystem, family offices, accelerators and incubators, and D2C ecosystem enablers. 

Five F&B Startups To Showcase Innovations In Healthy Snacking 

India’s fast-evolving digital commerce market presents a wealth of opportunities for VCs to explore. Besides, the food & beverage (F&B) sector, second only to beauty and personal care, is a particularly promising area. According to Inc42’s data, it is expected to reach $68 Bn by 2030, growing at a CAGR of 25%.

An interesting global trend in the F&B sector is the rising demand for healthier snacking options without compromising flavours or tastes. Aware of this new craving for healthy yet tasty food items, new-age F&B brands in India offer guilt-free snacks that meet nutritional needs.

The event will provide the opportunity to five promising startups from the first cohort of CoLab to present their business models to a discerning audience from the VC ecosystem.

The upcoming event will also feature in-depth discussions with the founders of high-growth F&B brands. The invite-only sessions will explore numerous industry opportunities, sustainable scaling strategies despite fierce competition and the 

Here are the five F&B startups from the Mondelez CoLab cohort that will showcase their innovations at the event:

• TruVitals: Set up in 2022, TruVitals offers biscuits, protein powder, protein-based bars and cookies, protein pasta and fibre gummies for children.
• Nova Nova: It offers a wide range of handmade chocolates, waffles, breakfast essentials, healthy snacks and more. Started in 2014, it runs more than 25 outlets and has partnered with multiplexes like PVR and INOX.
•  Flyberry Gourmet: Founded in 2017, the brand’s savoury range of vegetable chips is pre-treated for filler-free ingredients and vacuum-fried using 70-80% less oil to preserve nutrients.
• Evolve Snacks: Set up in 2017, the brand offers a host of healthy Indian snacks such as multigrain puffs, oat, ragi and pita chips, roasted seeds, makhana and bhakarwadi (stuffed and round-shaped snacks popular in Western India).
• Happy Jars: Started in 2016, this F&B brand makes nutritious nut butter from almonds and cashews, unsweetened peanut butter and dark chocolate peanut butter.

Know more about these startups here. 

The post CoLab Showcase To Bring Together 80+ Investors, Ecosystem Enablers Under One Roof appeared first on Inc42 Media.

In a bid to boost employment opportunities in the state, the Rajasthan government recently (on October 6) launched the ‘iStart Talent Connect Portal’ at Jaipur’s Techno Hub. The portal, which has been unveiled under the state government’s flagship initiative, iStart Rajasthan, in collaboration with Jaipur-based startup Hyrefox, has been developed to serve as a user-friendly platform for both job providers and job seekers. 

The platform not only allows companies to discover potential talent but also lets them post job openings and connect with their future employees.

Prateek Jain, the CEO and cofounder of HyreFox said, “The website aims at catalysing the synergy between emerging businesses and skilled professionals, ultimately fostering a thriving work environment.”

Founded in 2018, HyreFox is a job hiring aggregator startup that connects startups and corporates with recruitment firms across India via its website. 

At the event, Navaldeep Singh, director, HyreFox, highlighted how the Talent Connect Portal can address the challenges faced by corporates and startups in finding the right candidates.

Chiming in, Jain said that the portal aims to bridge the divide between companies and job seekers while fostering connections between corporations, academic institutions, the government and students. 

The primary value proposition lies in efficient talent discovery and the absence of portal usage costs makes hiring cost-effective for businesses. The platform will also maintain a user database, facilitating the search for the right employees or companies.

The Talent Connect Portal is just one of the many initiatives taken by iStart to empower its startup ecosystem. Since its launch in 2017, iStart has played a pivotal role in nurturing local talent and supporting diverse new-age sectors and ventures. 

The state government’s iStart initiative provides a plethora of opportunities, including incubation centres, mentorship, networking and essential business support services, to regional startups. 

The initiative has resulted in the creation of more than 29,000 jobs in the state since 2017. While these efforts continue to nurture startups in the state, iStart has also attracted investor attention. 

Notably, Rajasthan-based startups have collectively raised more than $307 Mn between 2014 and H1 2023 from Indian and global investors like Peak XV Partners, Y Combinator, LetsVenture, Marwari Catalysts and Avaana Capital.

The post Rajasthan Govt Launches ‘iStart Talent Connect Portal’ To Boost Employment Opportunities In The State appeared first on Inc42 Media.