This year, Amazon plans to invest $233 million, or more than INR 2,000 crore, in India to develop and improve its operational infrastructure there.
As the Seattle-based e-commerce company competes with well-funded companies Zepto, Zomato, and Swiggy in the lucrative rapid commerce market, some of the funds will also be used to develop new tools and technologies for the company’s fulfilment network.
This additional investment builds on Amazon’s investments in building an operations network that enables the company to deliver to all operable PIN codes across India, the company said in a statement on June 19.
This investment will boost the company’s operations network’s efficiency, processing capacity, and fulfilment speed, enabling Amazon to service consumers in India more quickly.
Amazon Facing Stiff Competition in India
Competition has increased for Amazon, which entered the Indian market twelve years ago and for a substantial number of years was mostly a two-player e-commerce industry with Walmart-controlled Flipkart.
With the support of well-known investors like SoftBank, startups like Meesho are entering the market and making a name for themselves by focusing on an entirely new group of underserved clients.
E-commerce is also being invested in by conglomerates like Tata Group and Reliance Industries. Additionally, the Indian market for 10-minute delivery is expanding thanks to firms Swiggy, Zepto, and Zomato‘s Blinkit. This presents a new obstacle for Amazon, which was a latecomer to the rapid commerce field.
Amazon India Merged E-Commerce and Logistics Arms
According to Amazon’s regulatory filing with the Registrar of Companies (RoC), the merger was given temporary clearance by the Bengaluru bench of the National Company Law Tribunal (NCLT) on February 5, 2025.
In a second filing with the NCLT, the e-commerce giant stated that the action will assist Amazon in streamlining the business operations of the two companies and lowering legal and tax compliance.
It added that the proposed merger would enable the transferor company’s assets and reserves to be consolidated with the Transferee Company (Amazon Seller Services), strengthening the latter’s finances and enabling it to make more significant business-related investments.
A representative for Amazon India responded to a question from the media by stating that the merger will streamline the organisation’s structure.
Amazon has several subsidiaries worldwide, just like the majority of international corporations, and we frequently assess our organisational structure. According to the spokeswoman, the goal of this transaction is to streamline our organisational structure.
According to a media report published in March 2025, Amazon plans to spin off its Indian business with an eye towards going public here. However, the e-commerce giant has no intentions to go public in India, as per various media reports.
Flipkart, Amazon’s rival, is reportedly working on plans for its highly anticipated initial public offering (IPO) and has received board approval to move its headquarters from Singapore to India.
The article has been contributed byPushpank Kaushik, CEO & Head of Business Development (Subcontinent, Middle East and Southeast Asia) at Jassper Shipping.
In the past five years, India’s grocery landscape has undergone a digital transformation. Fuelled by rising smartphone usage, the spread of 4G networks, and a pandemic-induced shift in consumer behavior, online grocery delivery has emerged as a staple in urban and semi-urban households. As per RedSeer Consulting, India’s online grocery market is projected to reach $26 billion by 2027, up from just $3.8 billion in 2021. Platforms like Blinkit, BigBasket, Zepto, and Swiggy Instamart are not only promising convenience, but also altering consuming patterns.
At the heart of this hyper-efficient system are delivery partners, the unsung heroes who bridge the last mile between warehouses and doorsteps. They guarantee on-time delivery despite erratic traffic, weather, and infrastructure obstacles while frequently working under extreme time pressure.
The Evolving Grocery Delivery Landscape
The expectations from grocery delivery platforms are shifting rapidly. Consumers now demand:
Live tracking, real-time communication, and cashless payments
To meet these expectations, platforms rely on micro-warehouses (dark stores), real-time inventory tracking, and geo-optimization tools. But none of this technology matters without human mobility specifically, the delivery partner on two wheels.
A new class of gig workers has emerged, driven by flexible work hours and quick payouts. In 2023 alone, it’s estimated that over 2.5 million Indians worked as delivery personnel across food and grocery platforms. A problem is experienced by these workers—demand is increasing, but so are their expenses, especially for fuel.
Challenges Faced by Delivery Partners Today
Despite being the backbone of the logistics chain, delivery partners grapple with several pressing challenges:
High Fuel Costs: With petrol prices hovering between INR 95– INR 110/litre in major cities, two-wheelers often incur a fuel expense of INR 250–INR 400/day, eating into their daily earnings.
Income Insecurity: Many partners do not receive fixed incomes. Earnings are incentive-driven and vary depending on demand, delivery zones, and platform restrictions. After fuel, maintenance, and service expenses, net daily profits may decrease to INR 400- INR600.
Lack of Benefits: Most partners are classified as gig workers and lack health insurance, accident coverage, or retirement benefits.
Mental and Physical Fatigue: Long working hours, harsh weather, and traffic congestion all contribute to weariness, accidents, and burnout. According to an Aajeevika Bureau report from 2022, over 55% of delivery workers reported working more than 10 hours per day, often without breaks.
Given the rising operational costs and climate concerns, electric two-wheelers (E2Ws) are being hailed as a sustainable and cost-effective alternative. Electric vehicles (EVs) bring major benefits for delivery partners. Such as :
Low Cost Maintenance and Fuel: The biggest benefit is lower fuel costs—charging an EV costs only INR 10–INR 15 a day, compared to INR 250–INR 400 for petrol two-wheelers. Additionally, because EVs have fewer moving parts, require less maintenance, and have lower repair costs, maintenance is less expensive.
Higher Earnings: Partners can increase net monthly income by INR 4,000–INR 6,000 through fuel and maintenance savings. A NITI Aayog and Rocky Mountain Institute (RMI) study found that delivery partners using EVs could increase their net monthly earnings by INR 4,000–INR 6,000 due to fuel and maintenance savings. As with average monthly earnings of INR 25,000–INR 30,000, along with medical benefits and weekly offs, the reduced operating costs of EVs allow for better take-home pay.
Government Support: Support is being provided by the Indian government through the FAME-II scheme, which gives subsidies of up to INR 15,000 on electric two-wheelers, making them more affordable for gig workers.
Less Fatigue, More Deliveries: Smoother, quieter EV rides reduce physical strain, while fewer breakdowns and faster maintenance help delivery partners complete more orders in a day.
Vehicle Option: EV 3-wheelers and 4-wheelers offer delivery partners greater flexibility in cargo capacity and delivery types. This enables more efficient service for diverse customer needs, while benefiting from lower operating costs and environmental advantages. As a result, earning potential and job opportunities are expanded.
Improved job satisfaction and wider access: Lower costs and improved working conditions improve morale and retention, while affordable electric vehicles make delivery jobs more accessible to women and marginalized groups.
A Gender-Inclusive Opportunity
Interestingly, the EV movement in last-mile delivery also opens doors for greater gender inclusion. Women presently account for fewer than 2% of India’s gig delivery workers. Barriers include the following:
Safety concerns during travel
Lack of access to two-wheelers
Social stigma around riding petrol bikes or working late hours
EVs being quieter, lighter, and often more compact can help lower the entry barrier for women. Pilot initiatives have been introduced by Zomato and BigBasket to train and onboard women delivery partners. Leased EVs, safety equipment, and fixed routes are being provided. Gender-focused training sessions and onboarding drives are also being held in Pune, Bengaluru, and Jaipur by NGOs in partnership with EV-sharing startups.
An electric mobility transition can be not just green, but inclusive if paired with structural support for safety, flexible work hours, and micro-financing.
The rapid growth of online grocery delivery is transforming urban and semi-urban India but it risks overburdening the very workers who power it. For delivery partners, switching to electric vehicles (EVs) presents an opportunity for tangible, quantifiable improvements in their everyday lives in addition to environmental benefits.
However, this transition will only succeed through coordinated action. Quick commerce platforms, policymakers, and EV providers must work together to expand charging infrastructure, offer affordable financing options, ensure reliable repair services, and, most importantly, include delivery workers in decision-making. True sustainability in last-mile delivery depends not just on cleaner vehicles but on fairer, more supportive conditions for those who ride them.
Shiprocket is a prominent Indian logistics and supply chain solutions company that facilitates seamless e-commerce shipping for businesses of all sizes. The company offers a platform that enables users to ship products through various courier companies. It also provides a dashboard that enables users to track and manage orders and offers an API for developers to integrate the company’s services into their own applications.
About Shiprocket
Shiprocket was founded in 2017 by Vishesh Khurana, Gautam Kapoor, Saahil Goel, and Akshay Ghulati. Since then, it has been a dependable partner in the e-commerce industry. The company’s business strategy centres on giving retailers a complete, technologically advanced platform to effectively handle their shipping requirements. Order fulfilment, shipping, and tracking solutions are just a few of the services that Shiprocket provides.
Simplifying the logistics process for online retailers is the foundation of Shiprocket’s business strategy. Because the platform interfaces with numerous courier providers, merchants may select the most dependable and affordable shipping solutions. From order processing to last-mile delivery, Shiprocket’s technology optimises the shipping process. The company serves a wide range of customers, from tiny companies to major e-commerce organisations.
How Shiprocket Makes Money?
Shiprocket combines various business concepts to generate revenue.
Generating Revenue Through Per-Shipment Charges: Businesses must pay a fee to Shiprocket for each shipment handled via their network. Logistics and shipping aggregators frequently use this kind of income, which enables them to make money according to the volume of transactions.
Generating Revenue Through Subscription Plans: Medium and big merchants can choose from membership levels offered by Shiprocket. These programmes offer advantages including priority assistance, access to numerous e-commerce channel connections, and reduced shipping costs.
Generating Revenue Through Value-Added Services: Shiprocket provides its clients with a number of value-added services, such as order management tools, shipment tracking, courier suggestions, and automatic shipping labels. While some of these services might be offered without charge, some might have an additional fee.
USP of Shiprocket
Shiprocket’s strong technological infrastructure is its unique selling point. The platform provides a wide range of services, such as automated workflows, real-time tracking, and order fulfilment. The business enables smooth integration with well-known e-commerce systems including Shopify, Magento, WooCommerce, and BigCommerce by using APIs.
Shiprocket offers sellers a smooth delivery experience by integrating with a number of online marketplaces and shopping carts.
Shiprocket uses data analytics to give sellers insightful information on their shipping performance and clientele.
Weaknesses
For the actual delivery of items, Shiprocket mostly depends on outside logistics providers (courier firms), which may result in possible service interruptions or problems with quality.
Shiprocket is under constant pressure to maintain low pricing in the very competitive e-commerce logistics business.
After a shipment is turned over to a courier partner, Shiprocket, as a platform, has little control over the delivery procedure.
Opportunities
Shiprocket can look into ways to extend its offerings into new regions, both domestically in India and beyond.
They can launch innovative services like same-day delivery, expedited shipment, or tailored logistics for particular sectors.
Synergistic opportunities may arise from partnerships with other e-commerce enablers, such as marketing platforms or payment gateways.
Threats
The current logistics environment may be upended by new technologies; therefore, Shiprocket will need to innovate and adapt to stay ahead.
Customer data security and privacy must be guaranteed, and any breaches might seriously harm Shiprocket’s brand.
Shiprocket’s growth may be impacted by a possible economic slowdown, particularly given the current conflict scenarios amongst various nations, which could have an effect on consumer purchasing and e-commerce activity.
Conclusion
In general, Shiprocket’s business strategy is predicated on offering SMBs in India economical and effective shipping options. Shiprocket has built a profitable business that supports its clients’ growth and success in the e-commerce industry by utilising its ties with logistics providers and creating an intuitive platform. The corporation should now investigate the possibilities of new markets, especially in Southeast Asia and other developing nations.
Shiprocket is an Indian logistics and supply chain platform that simplifies e-commerce shipping.
Who are the founders of Shiprocket?
Shiprocket was founded in 2017 by Vishesh Khurana, Gautam Kapoor, Saahil Goel, and Akshay Ghulati.
How does Shiprocket make money?
Shiprocket generates revenue through per-shipment charges, subscription plans for businesses, and value-added services like order management tools, tracking solutions, and API integrations.
In a block transaction valued at INR 97.44 Cr, VC company Elevation Capital, formerly SAIF Partners India, sold more than 53.98 lakh shares of online travel aggregator (OTA) ixigo on June 19.
In contrast to the stock’s last closing price of 180.65 on the BSE on June 18, the investment firm, through Saif Partners India IV Limited, sold the shares at INR 180.50 per share, according to BSE data.
Schroder International Selection Fund Asian Total Return purchased 53.69 lakh shares of the shares that flooded the market at the same price, for a total of INR 96.9 Cr.
One of the largest investors in Le Travenues Technology Ltd, the parent firm of the travel technology company, is Elevation Capital. By the conclusion of the March quarter of 2025, it held a 14.02% interest in ixigo. Elevation Capital has divested its stake in the company for the second time in the past month. For INR 38.27 Cr, the venture capital firm sold over 21.5 lakh shares of ixigo in May.
ixigo Witnessing Upward Trend
Due to increased profitability and a growing top line, ixigo’s shares have been rising at the time of the block purchase. The company’s stock is up 5.19% year-to-date (YTD), and its shares have soared 31.56% in the last three months.
Since going public last year, the stock has increased by more than 89% from its INR 93 listing price.
In terms of finances, the OTA’s consolidated net profit jumped 127% from INR 7.4 Cr in the previous quarter to INR 16.8 Cr in Q4 FY25. From INR 164.9 Cr in Q4 FY24 to INR 284.1 Cr in the reviewed quarter, operating revenue increased by 72%.
ixigo’s Recent Business Developments
ixigo was first established in 2007 by Aloke Bajpai and Rajnish Kumar as a travel search engine to assist users in comparing airfares. Later, it changed course and became an online travel agency (OTA), allowing customers to buy hotel rooms, vacation packages, and tickets for flights, trains, and buses.
Additionally, it offers automated customer service and tailored recommendations. The corporation claims to have 83 million monthly active users and 544 million annual active users.
Hotel and flight reservations to Turkey and Azerbaijan were suspended by the travel technology company, which competes with MakeMyTrip and EaseMyTrip, last month as these countries supported Pakistan during recent Indo-Pak escalations.
ixigo management stated on their Q4 results call that if the circumstances alter, the company will reevaluate its position.
This transaction is representative of a new stage in the lifecycle of Indian entrepreneurs, one that combines global asset manager involvement, VC returns, and post-IPO investor trust.
Now that more than 100 Indian firms have joined the unicorn club, attention is focused on those that scale, sustain, and generate profits.
For the upcoming generation of Indian entrepreneurs, ixigo’s transformation from a resilient OTA startup to a publicly traded company drawing in foreign investment provides an encouraging path forward.
India has witnessed remarkable growth in the software industry over the past decade, sparking what many call a software business revolution. Today, India proudly holds the position of the third-largest software startup ecosystem in the world, making it a highly attractive destination for launching IT companies. With technology becoming an integral part of every business, starting an IT firm in India can be a highly profitable venture.
The country is home to several leading software giants like Infosys, Wipro, Tech Mahindra, and TCS, which provide end-to-end software solutions to global clients. These companies have a strong presence in major Indian cities, playing a key role in shaping the nation’s software development ecosystem. Additionally, global corporations such as Capgemini, L&T, Tata, and Mphasis have firmly established their operations in India and continue to grow, further strengthening the country’s reputation as a global software hub.
In this blog, we will guide you through the essential steps and strategies to kickstart and expand your software company in India. From market research and legal considerations to team building and scaling strategies, we’ve got you covered. So, let’s dive in and explore the exciting journey of establishing a thriving software venture in India.
Importance and Potential of Starting an IT Company in India
Starting an IT company in India holds significant importance and offers immense potential for growth and success. Here are some key points highlighting the importance and potential of venturing into the software industry in India:
Thriving software industry with domestic and international demand.
An abundance of highly skilled and talented software professionals.
Cost-effective solutions compared to other countries.
Technological expertise in emerging fields like AI, ML, and cloud computing.
A growing domestic market with increasing digitization.
Supportive ecosystem for startups and IT companies.
With the right strategies, innovation, and a customer-centric approach, software companies in India can achieve significant success and contribute to the country’s digital transformation.
The Indian software industry is growing fast. A new report says the market could reach $100 billion by 2025. It may grow five times bigger and hit another $100 billion by 2035, starting from $20 billion in 2025. This growth is happening because more people in India are using software, digital tools are becoming more common, and there is strong demand for Indian software from around the world.
The Indian software market is expected to grow to $10.66 billion by 2025, with most of the money coming from enterprise software (used by businesses). The total revenue of the Indian IT sector is likely to reach $245 billion in the financial year 2023, and out of that, $224 billion is expected to come from exports.
Types of Software Companies
The Software Companies in India can be categorized into types in how they function. To start a company, the right category needs to be chosen. There are mainly two types of software companies
1. Product-Based Software Company
The Product-based Software Company deals with end products and sells them to targeted customers. These types of IT Companies have products or a set of them that provide a major portion of the company’s revenue. Some best Software Product-based or development-based Software Companies in India are Amazon, Microsoft, Cisco, Google, Tally, and many more.
2. Service-Based Software Company
The Service-based Software Company deals with services that are to be performed and sells them to the targeted audience. The Services provided are Business Consulting, IT, Hardware, and Software Engineering, and outsourcing Services to clients.
The top Software Consulting or Service Companies in India are Wipro, Infosys, Accenture, Tech Mahindra, Oracle, and many more. These companies provide a wide array of services, including application development, ERP solutions, programming, quality assurance and testing, custom business solutions, database migration, collaborative commerce, and multimedia offerings. Their expertise and capabilities make them valuable partners for businesses seeking software solutions tailored to their specific needs. With their extensive service portfolios, these companies continue to drive innovation and deliver exceptional value to clients in the Indian software market.
Traditional Businesses depend on Bank Loans and other means, like asking for investment from friends, family members, but it is somewhat different from online businesses. In this industry, there are a lot of angel investors for the Software development of Software Companies. There are numerous financial ways the entrepreneurs adopt to collect funds from various means, and it is not as difficult as it seems.
Steps to Start a New Software Company
Steps to Start a New Software Company
Starting a software company requires careful planning and strategic steps. Here are the key steps to follow:
1. Understanding the Indian Software Market
Before venturing into the software industry, it’s crucial to gain a thorough understanding of the Indian market. Research the current trends, demand, and competition in the software sector. Identify target customers, their needs, and pain points. This knowledge will help you shape your company’s value proposition and differentiate yourself in the market.
By understanding the Indian software market, you can identify the right opportunities, position your company effectively, and develop software solutions that resonate with the needs of Indian customers. This knowledge will be instrumental in formulating successful strategies and driving the growth of your software company in India.
2. Develop a Business Plan
Create a comprehensive business plan that outlines your company’s vision, mission, goals, target market, product/service offerings, and marketing strategies. Define your unique selling proposition (USP) and identify your competitive advantage. A well-defined business plan will serve as a roadmap for your IT company’s growth and success.
3. Choose the Type of Business
Types of Software Requirements
Consider the factors like choosing the appropriate type of products and services, targeting the specific audience or market, profitability, and feasibility of the business. Software company entrepreneurs have to consider several situations before making a choice. Entrepreneurs should pay attention to targeting a niche market as the competition increases.
It is also required to focus on making use of new channels for distribution that effectively provide solutions. Software entrepreneurs are also supposed to give better economic solutions, making customers interested in buying their products and services.
4. Better Products
Entrepreneurs have to think and come up with a better version of their products, which is also called an update to the existing plan. Once a full-fledged and integrated product is developed and set out in the market, it should be protected through copyright and trademark.
Entrepreneurs also start marketing on a digital platform, as the software is mostly among the young crowd, it has to be noticed by them and create a space to promote the product. It can be started by creating a website and then providing a demo of the updated software. Suitable Platforms like Facebook, Twitter, and YouTube should be used for promotion, providing information on the new updates, and getting feedback from the viewers.
Register your software company as per the legal requirements in India. Choose an appropriate legal structure such as a sole proprietorship, partnership, limited liability company (LLC), or private limited company. Obtain necessary licenses and permits.
Licenses are meant to allow businesses to carry out the procedure without any legal interruptions. The STPI Licenses are exclusively for new software companies starting in India and provide them with several facilities and benefits, like no tax payment for 5 years or no import or export duty for software products. The license holders can also enjoy the facilities, like availing offices at lower than usual rates.
Consult with legal experts to ensure compliance with intellectual property laws, data protection regulations, and other legal obligations.
6. Deciding Office Spaces
When there is a plan for starting a software company, the entrepreneurs should also plan for ideal office spaces or working spaces. A location that has the most appropriate infrastructural facilities, such as a consistent internet connection and easy availability of resources, should be chosen.
The business owners should aim to make the minimum possible investment in securing the office spaces. There are options like renting or leasing office space. The necessary equipment, like computers and furniture, can also be purchased second-hand to easily start the operations.
7. Importance of Advisory Team
In the quest to find like-minded people who are willing to participate in the business. Business owners should find a similar level of enthusiasm, in addition to knowledge.
The collaborations are also helpful in providing distribution and marketing channels for the products and offering integrated solutions. The advisory team should comprise tech-savvy people, marketing professionals, and the design team, along with experienced industry professionals who can provide ideal advice.
Focus on creating a positive work culture that fosters creativity, collaboration, and continuous learning.
8. Planning the Human Resources
When the company is started and running, entrepreneurs should focus on recruiting a talented HR team. India is a place where there are plenty of well-trained professionals, especially in the software technology sector.
9. Develop High-Quality Software Products
Invest in developing high-quality software products that address market needs and provide unique value to customers. Emphasize user experience, scalability, and security in your software solutions. Keep up with technological advancements and ensure your products are up-to-date with the latest industry standards.
10. Establish Strategic Partnerships
Collaborate with other software companies, technology providers, and industry leaders to expand your network and access new opportunities. Partnering with established brands can help you gain credibility, reach a wider customer base, and enhance your product offerings.
11. Implement Effective Marketing Strategies
Develop a robust marketing strategy to promote your software company and reach potential customers. Utilize digital marketing techniques such as search engine optimization (SEO), content marketing, social media marketing, and paid advertising. Engage in thought leadership by publishing valuable content, participating in industry events, and building a strong online presence.
12. Focus on Customer Success
Prioritize customer satisfaction and build strong relationships with your clients. Provide exceptional customer support, listen to their feedback, and continuously improve your products and services based on their needs. Happy customers become brand advocates and contribute to the growth of your software company through positive word-of-mouth referrals.
13. Embrace Continuous Learning and Innovation
Software companies in India must embrace continuous learning and innovation. This is an ever-evolving industry, and staying ahead requires a mindset of constant improvement and adaptation. By embracing continuous learning and innovation, software companies can adapt to the changing landscape, deliver cutting-edge solutions, and maintain a competitive edge in the Indian market. Remember, the key to success lies in being proactive, agile, and willing to embrace new ideas and technologies.
Before starting a Software Business in India, entrepreneurs need a legal entity for Business. There is a popular legal entity that is enabled to start a Business in India.
Sole Proprietorship: Probably the best legal entity to try and start new ideas in starting with a nominal cost. It won’t be a company, but owners can say a Sole Proprietorship firm.
Partnership Firm: It is a good opportunity for businesses when the business owner has Co-Founders and tries collectively to work out the business idea with a minimum legal cost.
Private Limited Company: A Real Company for Businesses in India. Almost more than 90% of business owners register their Companies in India as a Private Limited Company.
Identifying Potential Challenges and Risks in the Software Industry
Identifying potential challenges and risks in the software industry is crucial for software companies to navigate successfully. Some key challenges and risks include:
Rapidly evolving technology
Intense competition
Talent acquisition and retention
Security threats and data breaches
Changing customer demands
Regulatory and legal compliance
Economic and market fluctuations
By identifying and proactively addressing these challenges and risks, software companies can enhance their resilience, competitive edge, and long-term success in the dynamic software industry.
Conclusion
Starting and growing an IT company in India offers immense opportunities and potential in today’s digital age. The thriving software industry, coupled with the abundance of skilled professionals and a supportive ecosystem, makes India an ideal destination for software entrepreneurs. By following the key steps outlined in this blog, such as understanding the market, embracing innovation, building a strong team, and leveraging government initiatives, aspiring software company owners can navigate the path to success. With dedication, continuous learning, and a customer-centric approach, entrepreneurs can establish and expand their IT companies, tapping into the vast potential of the Indian market and making a significant impact in the tech industry.
FAQs
How to start software company in India?
The following are the steps to start IT services company in India:
Understanding the Indian Software Market
Develop a Business Plan
Choose the Type of Business
Better Products
Legal Considerations
Deciding Office Spaces
Importance of Advisory Team
Planning the Human Resources
Develop High-Quality Software Products
Establish Strategic Partnerships
Implement Effective Marketing Strategies
Focus on Customer Success
Embrace Continuous Learning and Innovation
Which city has more software companies in India?
Bangalore is the IT Capital of India and a global information technology hub in the country. The city is known as the Silicon Valley of India, with a large number of software companies in India, and many top Indian firms like Infosys, Wipro, and Mindtree are headquartered in Bangalore.
How can I start my own software company in India?
Four major steps to register a company/ startup in India:
Step 1: Acquire Digital Signature Certificate (DSC) Step 2: Acquire Director Identification Number (DIN) Step 3: Create an account on the MCA portal- New user registration @ mca.gov.in. Step 4: Incorporate or Apply for the company to be registered.
Do software companies make money?
The software vendor gets recurring income and an opportunity to increase the subscription fees annually and upsell premium packages. The recurring revenue helps SaaS vendors achieve the break-even point faster than Licensed Software vendors and earn higher profit in the long-term.
How to get clients for a software company?
Getting clients for your software company is challenging. These are some ways to get potential clients-
Referrals previous clients. Getting referrals from previous clients is by far the best source of getting new clients.
Social media.
Directories & marketplaces.
Your company website.
Outbound sales.
Network.
Events & trade fairs.
Partnerships & resellers.
How do companies make money from free software?
Most free web services plan to make money by the following: Freemium model – sell a free product and plan to convert some of them to a paid plan. Majority of SaaS products use this model. Limited period promotion – Start with the free product for a promotional initial period and plan to charge it later.
Which are the top software companies in India?
Top software companies in India are:
TCS
Infosys
Wipro
HCL Technologies
Tech Mahindra
Larsen & Toubro Infotech Ltd.
Mindtree Ltd.
Capgemini India Pvt ltd.
Mphasis
Accenture
What legal requirements are necessary to start a software company in India?
To start a software company in India, you need to register your business as a legal entity, obtain necessary licenses such as STPI (Software Technology Parks of India) License, and comply with tax and regulatory obligations.
How can I find skilled professionals for my software company?
India has a vast pool of talented software professionals. You can leverage online job portals, professional networks, and recruitment agencies to find suitable candidates. Participating in industry events and building relationships with universities can also help you connect with fresh talent.
What is IT company startup cost in India?
Starting an IT company in India can cost anywhere between INR 1 lakh to INR 10 lakhs or more, depending on the size and services offered. Basic costs include company registration, legal fees, office rent, equipment, and salaries. If you’re starting small with a few team members and offering software or web development, you can begin with lower investment.
According to cybersecurity researchers, they have recently discovered a vast database that contains over 16 billion usernames and passwords, rendering it the most significant data exposure in history.
As per recent reports, the passwords that were revealed were probably created by several thieves who stole usernames and passwords using different types of infostealing software.
It turns out that these login credentials were collected from a variety of sources, including developer portals, business platforms, social media, and VPNs. Between tens of millions to over 3.5 billion records with accounts from Google, Apple, Facebook, GitHub, Telegram, and other platforms were found in 30 publicly available datasets of varying sizes, according to the researchers.
According to the study, “none of the exposed datasets were reported previously,” with the exception of the Jeremiah Fowler-reported collection that included over 184 million passwords.
Blueprint of Mass Exploitation
Researchers go on to say that this is a roadmap for broad exploitation rather than merely a leak. Cybercriminals now have unparalleled access to personal credentials that may be exploited for identity theft, account takeover, and highly targeted phishing, since more than 16 billion login records have been made public.
The structure and recentness of these databases are particularly worrisome; they are not merely repeated breaches from the past. This is large-scale, new intelligence that can be used as a weapon. Additionally, these recently found datasets were only made available online for a short time utilising unprotected Elasticsearch and object storage instances.
This was sufficient for security researchers to find the dataset without discovering who was in possession of it. According to the research, most of the data that was exposed comes from “a mix of details from stealer malware, credential stuffing sets, and repackaged leaks.”
Furthermore, these databases probably contain some duplicate information, even though there is no way to compare them. Because of this, it is challenging to estimate the number of individuals impacted by the data breach.
Datasets Recovered Followed a Set Pattern
The majority of the information in these datasets had a specific format, consisting of a URL followed by a username and password. For those who don’t know, this is precisely how malware that steals information gathers and transmits it to threat actors.
The researchers also discovered that phishing efforts, ransomware attacks, business email compromises, and account takeovers frequently employ these massive datasets of usernames and passwords.
Tokens, cookies, and metadata were also included in these accessible datasets, making them risky for businesses and services without multi-factor authentication. Additionally, some of these were only referred to as “credentials” and “logins”.
The way we save, invest, and exchange money is changing as a result of technological advancements in today’s lightning-fast financial industry. The pioneering force behind this transformation is fintech, an abbreviation for financial technology. When it comes to the stock market and online broking, Zerodha is what comes to the mind of an Indian. Zerodha is the most prominent and the leading discount brokerage company, founded in 2010. The company is the first-ever stock brokerage company that gave rise to discount brokerage options for investors as well as traders.
Today, Zerodha is the biggest brokerage company in India with a client count above 5 million. It is also known as the Robinhood of India.
The company contributes over 15% to every retail order volume in India on a daily basis through trading and investing in various stocks, Commodities, F&O, IPOs, and others. In this article, we have briefly discussed the business model and revenue model of Zerodha. Let’s get started!
About Zerodha
Zerodha is an Indian fintech startup that has been shaking up the conventional brokerage sector since its founding in 2010 by brothers Nithin Kamath and Nikhil Kamath. The company’s name represents its objective to remove hurdles and democratize finance. It is a mix of “Zero” and “Rodha,” the Sanskrit words for obstacles.
The largest online brokerage firm in India, Zerodha is widely famous for its discount brokerage option. Zerodha offers financial services with the main motive of providing low-cost services to customers. Zerodha is a significant member of BSE, MCX-SX, and NSE, which provides broking services to the traders of the stock market.
Zerodha is headquartered in Bengaluru and has a huge customer base. Zerodha is the first discount broker in India because of this, it gained huge support from the audience.
An essential part of Zerodha’s success has been its dedication to offering traders and investors products that are affordable, easy to use, and driven by technology. Belief in creating a world without brokers is Zerodha’s motto. The financial market players will benefit greatly from this ideology. In addition to meeting the unique demands of each client, the organization strives to offer cheap trade services and first-rate customer service. Using cutting-edge innovation, innovative ideas, and unparalleled customer service, Zerodha aims to build a world without brokerages.
Besides, the most intriguing thing about Zerodha is that it always comes up with brilliantly innovative ideas supported by several strategic and definite efforts. Zerodha runs with the tagline of “The Free Trade Zone“.
Moreover, Zerodha offers tons of open online education and community programs that uphold retail traders as well as investors.
Fintech platforms like Smallcase, Streak, Sensibull, Quicko
Technology service providers
Regulatory bodies like SEBI
Key Activities
Running trading platforms (Kite, Console)
Brokerage and margin trading operations
Developing fintech tools and APIs
Educating users through Varsity
Value Propositions
Zero brokerage on equity delivery trades
Flat ₹20 fee for intraday and F&O trades
Transparent and simple pricing
User-friendly tech tools and mobile platforms
Free mutual fund investment via Zerodha Coin
Customer Relationships
Self-service platform with online tutorials and support
Transparent reports and statements
Community building via social media and Varsity
Quick issue resolution through online support
Customer Segments
Young salaried professionals (below 30 years)
First-time investors
Active intraday and F&O traders
Tech-savvy developers and fintech enthusiasts
Key Resources
Trading and account management platforms (Kite, Console)
Kite Connect API
Skilled technology and support teams
Regulatory licenses and compliance systems
Channels
Zerodha website and mobile app
Social media platforms like Instagram, Twitter
Referrals and financial influencers
Educational platform Varsity
Cost Structure
Technology development and maintenance
Employee salaries and operations
Compliance and legal costs
Customer acquisition and marketing
Revenue Streams
Brokerage fees on intraday and F&O trades (up to ₹20/order)
Interest income from margin trading
Demat account DP charges
Subscription fees from partner tools (e.g., Streak, Smallcase)
Float income from idle client funds
Annual account maintenance charges (₹300/year)
Where does Zerodha operate?
Zerodha is a financial service company that offers various retail and institutional-based brokerage, bonds, mutual funds, and currency & commodities trades. Zerodha operates in various states of India, including Hyderabad, Bengaluru, and Pune.
Key Products and Services of Zerodha
The broking limited company, Zerodha, offers tons of key products to its customers. These products include Console for account management, Kite for trading platforms, Varsity for financial education, Quicko for the traders in Tax stems, Coin for Free Mutual Fund, Kite Connect API for the developers, Kill Switch for the risk management for retail traders, and Sentinel for the cloud-based market alert tool.
Zerodha majorly targets its potential audience in Pune, Bengaluru, and Hyderabad based on the average age group of people below 30 years. It focuses on those below 30 people who are new to their jobs and have already started saving from their salaries and are searching for better saving and investing methods to increase their money effectively. With its incredible services and products, it has gained over a million active users.
Zerodha Business Model
The most significant thing about the business model of Zerodha is the success and popularity it gained among the audience. Zerodha offers a very convenient service to its customers, because of which it gained absolute success in the strenuous market as well.
Zero Brokerage Model
When it comes to equity delivery deals, Zerodha stands out due to its zero brokerage strategy. This is a great alternative for long-term investors since it allows investors to purchase and hold equities without paying brokerage fees. They make money from many categories, including intraday trading, futures, and options, and others, by collecting a flat fee on each deal.
Transparent Pricing
Another important part of Zerodha’s business model is transparency. Importantly, being a fintech company they offer a straightforward pricing system. To prevent unpleasant unexpected events, traders can determine their trading costs in advance. Customers trust them more because of this openness, and they distinguish themselves from more conventional brokerages that have convoluted pricing structures.
Zerodha USP
The entire business model of Zerodha is very transparent and has no hidden costs later on. It lets you know all your transactions and also provides a quick tutorial on online trading.
It keeps all the information transparent and open to the customers. These facets help the company more vibrantly and gain more significant clients for trading.
The USP of Zerodha is its zero brokerage concept. Traders don’t need to pay to trade stocks if they plan to keep them for longer than a day. There is no brokerage fee; all the trader has to do is pay their taxes. Brokerage fees from intraday and derivatives trading are Zerodha’s main source of revenue. For FNO trading, Zerodha has a fixed brokerage fee of INR 20 per order.
Zerodha is the biggest trading network with the highest number of active users in India. People across India use Zerodha for investing and trading. Zerodha revenue sources include brokerage fees, interest on margin funding, and income from partner platforms and technology services. The company charges only Rs. 20 (or 0.03%) for every F&O and intraday capital trade.
Although its charge is pretty low, as a huge number of transactions take place, the company gains enough profit. Besides the account maintenance, it charges Rs. 300 annually.
From the records of the past few years, Zerodha experienced rapid growth. This results in the 2% contribution of investors in the stock exchange. This, later on, boosts the revenue of the company. With this revenue source, Zerodha raised its valuation worth $1 billion. The valuation of Zerodha is around $3.6 billion (2023).
Along with stock trading, Zerodha also provides a platform called Zerodha Coin where users may invest in mutual funds without paying a commission. Numerous clients seeking an easy method to put their money into mutual funds have taken advantage of this service. The larger movement towards digital wealth management and the use of the term “hire a fintech developer” to describe the process of creating and managing such systems is congruent with this.
Zerodha Financials
Particulars
FY24
FY23
FY22
FY21
Revenue
INR 9,994.5 Cr
INR 6,877.1 Cr
INR 4,964 Cr
INR 2,729.6 Cr
Expenses
INR 3,119.3 Cr
INR 2,992.7 Cr
INR 2,165.1 Cr
INR 1,260.2 Cr
Profit after Tax
INR 1,122 Cr
INR 2,094 Cr
INR 2,907 Cr
INR 4,700 Cr
Revenue Model of Zerodha
Zerodha has shown consistent growth in revenue and profit over the last few years. In FY24, the company saw significant growth in revenue and profit, continuing its upward trajectory from FY23.
Zerodha Revenue Breakdown:
Particulars
FY24
FY23
Revenue from operations
INR 9,372.2 crore
INR 6,832.8 crore
Other income
INR 622.3 crore
INR 44.3 crore
Total revenue
INR 9,994.5 crore
INR 6,877.1 crore
Zerodha’s revenue has consistently increased over the last few years, with a notable spike in FY24. Revenue from operations saw substantial growth, and other income showed a significant rise in FY24 compared to FY23.
Zerodha SWOT Analysis
Swot Analysis of Zerodha
Zerodha Strengths
Zerodha has shaken up India’s traditional brokerage market with its novel approach to trading, providing clients with commission-free trading.
Customers can rely on quick and dependable trading because of Zerodha’s powerful technological infrastructure.
To meet the demands of traders with varying skill sets, the firm has created several trading platforms and tools.
Thanks to its user-centric strategy and great customer service, Zerodha has a high customer satisfaction rating.
To meet the varied investing needs of its clients, Zerodha provides a comprehensive suite of financial products, including stocks, bonds, mutual funds, and derivatives.
Zerodha Weakness
The potential for growth and expansion is limited for Zerodha because its operations are limited to India.
Zerodha is at risk of cyber threats and system breakdowns because its business model is highly reliant on technology.
Brokerage fees and commissions are Zerodha’s only sources of income, which may lead to difficulties for the company down the road.
Zerodha Opportunities
Zerodha has a great chance for growth due to the continuously expanding population of retail investors and traders in India.
Zerodha has a golden opportunity to grow its business by taking advantage of the growing popularity of online shopping in India.
If Zerodha wants to diversify its revenue streams and access new markets, it might look into foreign expansion prospects.
Zerodha Threats
There is a lot of competition for Zerodha’s products and services from both well-established brokerage businesses and emerging startups.
Business operations and profitability at Zerodha are susceptible to changes in regulatory policies and guidelines.
Investor sentiment and trade volumes are influenced by economic uncertainty and market volatility, which in turn affect Zerodha’s revenue sources.
Even after this huge customer base, Zerodha is still working on expanding the company on a broad scale with a more significant client base. Nithin Kamath, the CEO of Zerodha, mentioned in an interview that he is aiming to take the company to a client base of 5-10 million in the upcoming years.
Zerodha believes in promoting its services, as the company hardly spends any money on advertising channels. The company holds a great reputation in the market because of its incredible services and customer interactions. This has resulted in the comprehensive and impeccable growth of the company.
Within the context of the Indian brokerage industry, Zerodha’s commission-free trading business model is characterized by an effective technological infrastructure, a high level of customer satisfaction, and diversified product offerings that offer significant value. These offerings are relatively uncommon and difficult to imitate, and a robust organizational culture supports them. This helps the company maintain its significant competitive advantage.
In the upcoming years, Zerodha is expected to grow even more and expand more promptly. Stay tuned for more updates!
FAQ
What does Zerodha do?
Zerodha Broking Ltd. is an Indian stock broker and financial services company. The company provides institutional and retail brokerage services, as well as currency and commodity trading. Additionally, Zerodha offers investment options in mutual funds and bonds.
Is Zerodha free?
Traders don’t need to pay to trade stocks if they plan to keep them for longer than a day. There is no brokerage fee; all the trader has to do is pay his taxes. For FNO trading, Zerodha has a fixed brokerage fee of INR 20 per order.
What are the strengths of Zerodha?
The strengths of Zerodha include commission-free trading, its technological infrastructure, versatile trading platform, high customer satisfaction, and its comprehensive financial products.
What is Zerodha business model?
Zerodha follows a discount brokerage business model, offering low-cost trading services in stocks, commodities, and currencies. It charges zero brokerage on equity delivery trades and a flat fee of ₹20 per order for intraday and F&O trades. The company earns revenue from brokerage fees, interest on margin funding, and its tech platforms like Kite and Coin. By focusing on technology and low costs, Zerodha has attracted a large base of retail investors.
How Zerodha earns money?
Zerodha earns money through brokerage fees on intraday and F&O trades, charging up to INR 20 per order. It also makes money from interest on margin funding, DP charges when clients sell shares, and subscription fees for premium tools like smallcase and Streak. Additionally, it earns float income from idle client funds.
Here’s your quick roundup of India’s top startup funding deals and key business developments from 19 June 2025. From major capital raises to regulatory approvals and strategic investments, here’s what’s shaping the ecosystem today.
🚀 Indian Startup Funding Digest – 19 June 2025
Company
Sector
Funding Raised
Lead Investor(s)
Mahaveer Finance
NBFC (Vehicle Loans)
₹200 crore
Elevation Capital, BanyanTree Finance, First Bridge Capital
One Hand Clap Media
Creative Agency
Undisclosed
Nikhil Kamath
Okinawa
Electric Vehicles
₹60 crore
Dhruv Khush Business Ventures
Mahaveer Finance Raises INR 200 Crore in Series C Round
Chennai-based NBFC Mahaveer Finance has secured INR 200 crore in Series C funding led by Elevation Capital. The round also saw participation from BanyanTree Finance and First Bridge Capital. Mahaveer, known for financing used commercial vehicles for underserved entrepreneurs, has expanded its loan book significantly from INR 50 crore in 2016 to over INR 1,000 crore as of mid-2025. The fresh funds will strengthen its credit infrastructure, branch network, and governance capabilities.
Nikhil Kamath Invests in One Hand Clap Media
Zerodha co-founder Nikhil Kamath has invested an undisclosed amount in Mumbai-based creative agency One Hand Clap Media. The agency was founded by Aakash Shah and Naveed Manakkodan, both formerly associated with comedy collective All India Bakchod (AIB). One Hand Clap has created campaigns for top-tier clients like Netflix India, Swiggy, Prime Video, CRED, and Ather. Kamath’s backing is expected to boost the agency’s storytelling scale and production capabilities.
Okinawa Secures INR 60 Crore in Fresh Funding
Electric two-wheeler manufacturer Okinawa has received a capital infusion of INR 60 crore from Dhruv Khush Business Ventures. The funding comes as the company navigates financial strain following issues related to the government’s FAME-II subsidy programme, which required a significant repayment. Okinawa had earlier been asked to return around INR 116 crore due to non-compliance. This round is expected to help the EV player stabilise its operations and address urgent financial challenges. Despite being a once-prominent player in India’s EV market, Okinawa is currently working to restore trust and rebuild momentum.
📰 Key News Highlights – 19 June 2025
Capillary Technologies Files DRHP for INR 430 Crore IPO
Capillary Technologies, a Bengaluru-based SaaS firm specialising in customer loyalty and engagement platforms, has filed its Draft Red Herring Prospectus (DRHP) with SEBI. The proposed IPO includes a fresh issue of equity worth INR 430 crore and an offer-for-sale of approximately 1.83 crore shares by existing shareholders. The proceeds will fund cloud infrastructure, R&D, and potential acquisitions. JM Financial, IIFL Capital, and Nomura are the lead managers.
Honasa Consumer Grants ESOPs Worth INR 1.6 Crore
Honasa Consumer, the parent company of Mamaearth, has granted 53,322 employee stock options under its 2018 ESOP plan. At current NSE trading prices (~INR 305), the total value of these options is estimated at INR 1.6 crore.
Amazon India to Invest INR 2,000 Crore in Operations & Infrastructure
Amazon India has announced it will invest $233 million (over INR 2,000 crore) in 2025 to expand and upgrade its fulfilment network. The investment aims to launch new facilities, enhance delivery speed and safety, implement tech solutions for monitoring delivery, and support employee wellness programmes—including rest hubs, financial education and health camps. This forms part of Amazon’s broader $26 billion commitment to India by 2030.
Starlink Receives Licence to Operate in India
India’s Department of Telecommunications has granted operating rights to Starlink, Elon Musk’s satellite-internet venture from SpaceX. Communications Minister Jyotiraditya Scindia confirmed the approval following a meeting with SpaceX COO Gwynne Shotwell. Starlink now joins Eutelsat OneWeb and Jio Satellite Comms in India, with future steps including securing spectrum and space regulator clearances. This decision marks a major step for rural connectivity, though affordability and regulatory alignment remain key next challenges
Statkraft, a state-owned utility in Norway, plans to reduce yearly expenses by 15% by 2027 in order to adjust to the shifting market conditions through cost-cutting strategies that include technical refocusing and layoffs.
By 2027, the business plans to cut salaries and other operating costs by about NOK 2.9 billion (USD 290.5 million/EUR 253.2 million) a year, it announced on 19 June. It follows the utility’s statement that it will no longer pursue new green hydrogen projects and that it has adopted a “sharpened strategy” to direct cash towards its core operations.
According to CEO Birgitte Ringstad Vartdal, Statkraft must adjust to the shifting market conditions and heightened geopolitical unpredictability.
Specific Measures to be Revealed in the 2nd Half of 2025
The second part of the year will see the identification of the precise actions that the business will take.
As the energy transition slows down owing to rising global uncertainties, rising costs, and falling power prices, Statkraft plans to focus its technological efforts on its flexible hydropower fleet in the Nordics, as well as solar, wind, and battery projects in Europe and South America.
Because the offshore wind business in Europe is developing slowly, no new offshore wind projects will be undertaken. The ruling also holds true for Norway’s next Utsira Nord allocation round.
According to Vartdal, the company can sustain its development and value creation by focusing on its core competitive advantages and giving priority to investments in short-term profitable possibilities.
She clarified that some portfolios will be sold off, while short-term profitable technologies like solar, wind, and batteries in fewer areas will be prioritised.
Future Investments of Statkraft
Statkraft will evaluate its investment position in solar, wind, and batteries in Poland as part of the refocusing, and it will stop developing in Portugal while continuing to operate in both nations.
The Norwegian company plans to invest between NOK 16 billion and NOK 20 billion in maintenance projects, onshore wind projects in Sweden and Norway, and significant hydropower capacity enhancements in Norway in the upcoming years.
Although at a slower growth pace than initially anticipated, it would endeavour to extend its activities in solar, wind, storage, and grid services across Europe and South America, the company stated.
In addition to the previously announced and ongoing divestment proceedings, the aforementioned steps will affect the development business in Croatia and the Netherlands, the district heating and biofuels activities in the Nordics, and the business activities in India.
The Colombian national oil firm, Ecopetrol, agreed to purchase Statkraft’s Colombian renewable energy portfolio, Enerfín Colombia, in May 2025.
Sam Altman, the CEO of OpenAI, has publicly slammed Meta Platforms for its aggressive hiring practices, claiming that the business failed to attract top OpenAI developers despite offering signing incentives of up to $100 million.
Speaking on his brother’s podcast, Altman made the argument that such large salary packages don’t foster the “right work culture” and aren’t conducive to long-term success in the artificial intelligence industry.
Additionally, he concurred that Meta views OpenAI as a major rival in the AI competition.
Meta Trying to Poach OpenAI Talent but Failed: Altman
Sam Altman has stated that Meta made large offers, some of which were apparently as high as $100 million, in an effort to entice important personnel away from OpenAI.
Altman asserted that Meta mainly “tried and failed” to poach his employees in spite of these startling statistics. Altman allegedly said, “We offer a different package, but it’s about the mission and the ability to do important work,” drawing a comparison between Meta’s and OpenAI’s retention tactics.
Altman also contended that while these enormous compensation packages could draw attention, they don’t encourage the development of revolutionary AI. “I don’t think that’s going to set up a great culture,” he remarked, referring to the practice of offering a large amount of upfront guaranteed compensation as the basis for recruiting someone.
While acknowledging that Meta views OpenAI as a major rival in the fight to create cutting-edge AI systems, Altman underlined that elite personnel are motivated by innovation and purpose rather than money alone.
Altman went on to say that there are a lot of aspects of Meta that he admires. However, he does not believe that they are an innovative company.
Meta is Lagging Behind in AI Race
While OpenAI, Anthropic, and Google DeepMind are operating at full capacity, Meta will need to assemble its new AI team in the upcoming year. OpenAI is anticipated to deliver an open AI model in the upcoming months, which will probably further distance Meta from the competition in the AI race.
Sam Altman discussed a social media feed driven by AI later in the podcast, which appears to be threatening Meta’s apps.
In contrast to the default, algorithmic feed found in conventional social media apps, the CEO of OpenAI expressed interest in investigating a social media app that leverages AI to provide personalised feeds depending on user preferences.
According to reports, OpenAI is internally developing social networking software. In the meantime, Meta is testing a social network driven by AI with its Meta AI app.
Nevertheless, it appears that some users have shared some really sensitive conversations with the public because they are perplexed by the Meta AI program. It’s unclear if social networks driven by AI will succeed. Meanwhile, it appears that Zuckerberg and Sam Altman will compete in the AI talent hunt.
