From the stage of luxury, the need for cars among Indians has become a comfort. It might soon become a necessity as the sale of cars depicts an increasing figure year on year. Excluding the pandemic years, the country’s car sales have shown a consistent rise. As per National Family Health Survey reports, the percentage of Indian households that own cars in India stands at 6.7% in 2022-23. Though this number looks small, it is considered to be a positive growth compared to the numbers derived during the beginning of this century, which stood at around 1%.
Unlike those days, people today have numerous choices of cars to choose from. Many companies have entered this industry, and they launch multiple models and price them accordingly to suit all categories of people. They come in different prices, sizes, comforts, mileage, and a lot more amenities. In addition, various institutions offer loans and finances for purchasing cars at the best rates. All these facilities attract, encourage and pave the way for people to own their cars regardless of any limitations.
To meet the rising sales of cars, there needs to be a car dealer in every locality to meet the sales requirements of people and for further assistance in car maintenance. Nowadays, all the companies place dealers in almost every district in the country to capture and retain their market. A car dealership is a good business, and if you ever get a chance to set one up, then never miss the opportunity. However, there are certain requirements, rules, and regulations to be followed before starting a car dealership business.
The motor vehicle and parts dealers market has seen strong growth in recent years. It is expected to increase from $5,429.77 billion in 2024 to $5,874.52 billion in 2025, growing at a CAGR of 8.2%. This past growth was driven by economic conditions, new technology, interest rates, changing consumer preferences, and environmental regulations.
This article covers the working of car dealerships along with the market awareness to possess and the procedures for commencing the business.
Car dealers procure cars from manufacturers and distributors to sell in their locality. They usually get the cars on credit or through floor planning from the manufacturer, where the latter assists the dealers financially. Also, financial institutions lend their hands to support dealers in their business.
The profit for the dealer comes in the form of commission, maintenance and repair charges, and the sale of accessories. The commission for the car dealership in India ranges between 2% and 6% as of now. However, certain brands, like BMW, offer a little higher commission of around 7%. The major profit for this business flows into the sale of accessories. A higher profit margin is fixed on those additional products, and it helps the dealers gain a considerable profit on their sales.
Global Car Dealership Business
Points to Consider Before Starting a Car Dealership Business in India
Starting a business without a plan results in self-destruction. So, for a big investment business like a car dealership, a perfect plan becomes a significant and prime need for its operation.
A few years of work experience in this field would be of great advantage. It gives you a clear understanding of the market.
You should be informed of the current market trends, prices, demands, and the issues faced by the industry. This is where planning becomes essential so that you can foresee and prepare yourself for the ever-changing market.
Further, there are some needs and regulations to be adhered to, which a dealer should be aware of.
Requirements and Procedures for a Car Dealership Business in India
The following are some of the primary requirements and legalities that you should follow before stepping into the car dealership business in India:
Basic Requirements
The essential requirement to start a car dealership business is space. You require an area to hold the cars, an outlet to display them, and the infrastructure for availing maintenance and repairs.
There has to be sufficient space for parking and storing the cars. The location need not necessarily be in the heart of the city. It needs to be situated in an easily accessible location. Since you are going to be the sole dealer for the manufacturer, customers will reach you once they are ready to buy the brand.
The next most important need is the employees. Hire experienced and suitable employees for marketing, customer relations management, and others. You also need people for maintenance and other related stuff. Ensure you choose the right person for the job.
Cost Structure
The minimal financial requirement to start a car dealership business in India is around Rs 60 lakhs. Since the value of the goods (here cars) you’re yet to receive has a high price and other expenses like land procurement and operational costs would pile up, you will need at least Rs 1 crore to enter this field of business. The process of registration is quite lengthy, and hence, you need to get the money beforehand to avoid any delay during the process. This initial amount varies depending on the manufacturers. It may go up as per the car’s brand value.
After all the initial plans and fund arrangements, you should obtain a license from the state to start a dealership business to sell cars. There are a few types of licensing that depend on the mode of operation. These types are listed below:
New Car Dealer Licensing
Used Car Dealer Licensing
Wholesale Car Dealer Licensing
Reconditioner Licensing
Rebuilder Licensing
Documentation
It is a lengthy and time-consuming process. This process includes obtaining surety documents, a license for operation, and other necessary related documents. The proceedings get started with filing the surety bonds with the Department of Motor Vehicles (DMV) of your locality. It acts as insurance that safeguards your customers in case of fraud.
The nature of your business further requires you to obtain certain bonds. If you are into wholesale car trade or used car trade, then the corresponding bonds need to be submitted for approval. An RV bond would also be required, which states that the manufacturer confines the agreement signed between him and the dealer.
Other Procedures
Obtain GSTIN by Applying for GST Online
After licensing and documentation are over, there are a few other procedures that need to be complied with. You need to open a bank account for your business and get the GSTIN (Goods and Services Tax Identification Number). Ensure your business is completely protected from any kind of loss. Tie up with banks or any other financial institution to help customers secure quick loans. Although the overall advertising for the brand would be taken care of by the manufacturer, you can market your business locally through newspaper ads and pamphlets. It is good to create a brand for yourself in association with the manufacturer.
Prominent Car Dealerships in India
Prominent Car Dealerships to Have in India
The following are some of the most prominent car dealerships (subject to availability) in India:
Since it is a business that involves huge investments, risks, and the public, there exist strict legal procedures and regulations. They are formed to ensure security and safeguard the interests of all the parties. All the rules, regulations, and requirements laid by the state have to be followed for the smooth and secure functioning of the business. The process might be lengthy, but proper knowledge about it would save you a considerable amount of time and get it approved as quickly as possible.
FAQs
How profitable is a car dealership in India?
The commission for the car dealership in India ranges from 2% to 6% and on spare parts, it ranges from 12% to 15%.
How to get car dealership in India?
To get a car dealership in India, choose a brand, ensure you meet its investment and space requirements, and apply on the company’s website. Submit a business plan for approval, sign the agreement, set up the showroom, and stock inventory. Finally, launch and promote your dealership to attract customers.
Is BMW dealership profitable?
BMW dealership is profitable as the brand offers the highest margin that is up to 7%.
What is car dealership investment?
The minimal financial requirement to start a car dealership business in India is around Rs 60 lakhs.
What is car dealership cost in India?
Starting a car showroom dealership costs between ₹10 lakh to ₹10 crore, in India, depending on the brand, location, and whether it’s an authorized, used, or multi-brand dealership.
How do dealerships make money?
Dealers mostly make money by leasing or financing cars. Also, there are other sources for dealers to earn profit like selling insurance, warranties or spare parts.
How to start a car showroom business in India?
To start a car showroom business in India, follow these steps:
Choose a Business Model – Decide between an authorized dealership, multi-brand showroom, or used car dealership.
Select a Brand & Apply – If choosing an authorized dealership, apply on the car company’s website and meet their requirements.
Arrange Investment – Costs range from ₹10 lakh to ₹10 crore, covering showroom setup, inventory, and operations.
Find a Suitable Location – A prime location with good visibility and space for display and service is crucial.
Complete Legal Formalities – Register your business, get GST, trade licenses, and dealership agreements.
Set Up Showroom & Hire Staff – Design an attractive showroom and hire sales and service professionals.
Stock Inventory & Start Marketing – Purchase vehicles, promote your business, and launch operations.
The rising traffic in most of the cities these days has become an unavoidable problem. Getting stuck in traffic in today’s metropolitan cities is one of the inescapable situations.
More often, there comes a time when you have to reach a destination, but there is no way for you to do so. In such times, you are frustrated and worried while thinking of some miracle to happen. But thanks to new-age technological advancements and innovative minds, we have companies like Rapido to rescue us in these kinds of situations.
You will just have to install the app, and you will be able to travel anywhere within the city. Rapido joined the Unicorn Club on 29 July 2024 with a $120 million investment from WestBridge Capital at a valuation of over $1 billion.
Here’s a look at the business model of Rapido and how it makes money.
Rapido is an Indian bike taxi and logistics service provider headquartered in Bangalore, Karnataka. Formerly known as the theKarrier, the company was founded in 2015 by two IIT alumni and PESU alumni – Aravind Sanka, Pavan Guntupalli, and Rishikesh SR.
Hero MotoCorp Chairman Pawan Munjal and former Google India Vice President Rajan Anandan are people who have stakes in Rapido. The company operates in almost 100+ cities and had 20 million+ customers in FY23.
Due to the increasing demand for Rapido, they have expanded their operations almost all over India. Some of the cities where Rapido operates are Coimbatore, Jalandhar, Patiala, Tirupati, Trichy, Kolkata, Udaipur, Amritsar, Bhubaneswar, Rohtak, Vishakapatnam, Sagar, Hyderabad, Gwalior, and many more.
Key Products and Services
Rapido is a bike taxi service provider, but along with that, they also have auto-rickshaw and third-party logistics services.
It was in 2020, after the COVID-19 outbreak, that the company decided to expand its logistics that offer hyperlocal delivery for local businesses and eCommerce companies.
Following that year, Rapido decided to expand its Auto services in 11 additional Indian cities in the states of Rajasthan, Gujarat, Uttar Pradesh, Punjab, and Andhra Pradesh, to name a few.
Rapido Auto
Rapido also offers a service called Rapido Corporate. It is an employee travel management for organizations. In this service, organizations need to partner up with them if they want to offer travel services to their employees.
Target Audience of Rapido
Rapido’s target audience is mainly commuters who travel in their day-to-day lives. Its main goal is to offer services to commuters who prefer open and safe commute options in comparison to over-expensive cab rides.
As per the latest reports in February 2025, Rapido has shifted to a SaaS model, removing daily commissions for drivers, says Co-founder Aravind Sanka. Drivers now pay a subscription fee upfront and keep 100% of their fares. The platform serves two million drivers monthly, focusing on value for both riders and customers.
Before this, the business model of Rapido was mainly B2C (Business-to-customer model). This means that they offer their services directly to their customers as a business entity.
In addition to this, they have also leveraged vehicle storage options to provide carriage services. Moreover, the end receivers of their product and services are customers like us.
Their B2C model allows consumers to book a bike ride through their app. Customers need to download the Rapido app, create a profile, and set pick-up and drop-off locations.
Upon successful booking, a driver known as the ‘Captain’ will be assigned with their details like name, photo, and other details. This gives assurance to customers regarding the driver with whom they are going to commute. Users can make payments either with cash or using a digital payment method.
For Captains, Rapido allows anyone with two-wheelers to register as Captains. They are free to choose whatever vehicle they want, like motorcycles, scooters, or e-bikes, but it cannot be older than 2010. They also need to have a phone with a 3G/4G mobile data connection.
Rapido encourages people between the ages of 18 and 50 to be Captains. Presently, the company is looking for more female captains to join their community.
How Does Rapido Make Money | Rapido Revenue Model
Rapido makes money through its bike and rental services. Rapido’s revenue model is mainly of two categories:
The Commission-based
Commission-basis means the company generates money by acting as an intermediary between the ‘Captains’ and the customer. They charge a fee of 20% of the entire fare.
The B2C commission-based
The other method through which Rapido earns money is through its B2C logistics services, Rapido Store. This is a major source of revenue as the company focuses on delivering the goods of logistics companies to their preferred location.
Advertising and Partnerships
Rapido works with businesses to show ads on their platform. They may promote local shops or display targeted ads for their users. They earn money through ad fees or paid promotions.
Delivery Services
Rapido doesn’t just offer rides but also delivers packages. Users can send parcels or documents through the Rapido app within the city. Rapido earns money by charging delivery fees.
Rapido Financials
Rapido Financials
FY23
FY24
Operating Revenue
INR 443 crore
INR 648 crore
Total Expenses
INR 1172 crore
INR 1066 crore
Profit/Loss
INR -675 crore
INR -371 crore
Rapido has grown 4.4 times over the past two years, with revenue rising from INR 145 crore in FY22 to INR 648 crore in FY24. The ride-hailing company also reduced its losses by 45% in FY24, helped by better cost management. In 2024, the operating revenue of Rapido increased by 46.3% to INR 648 crore from INR 443 crore in 2023. The company’s total expenses decreased by 9%, dropping to INR 1,066 crore from INR 1,172 crore. The company reported a loss of INR 371 crore in 2024 compared to INR 675 crore in 2023.
The Unique Selling Proposition (USP) for Rapido precisely gives it an edge over other forms of ride-hailing. It addresses some of the most critical needs of a typical urban commuter in India. In fact, unlike all the other different models, which are focused on levying high commissions, Rapido has gone to the subscription mode, providing rides at comfortable prices, especially for regular commuters and those living in smaller cities. This mode of transportation, which is speed and convenience-oriented, offers an easy and short bike taxi ride, which will save travel time by 50% in congested areas. Economically competing with taxi fares, Rapido is an alternative.
For safety, this platform boasts “Captains” who have undergone a rigorous vetting process, and the rides can also be tracked through GPS. The app ensures smooth riding experiences through real-time tracking, cashless payments, and customer service. Now, Rapido has also gone beyond bike taxis to include auto-rickshaws, cabs, and delivery services in its portfolio, strengthening its outreach and boosting user engagement. All put together, it’s a game changer in the ride-hailing landscape of India for affordability, speed, and reliability.
One of the most important things to look at in Rapido’s services is its affordability. For daily commuters, Rapido seems to be the perfect mode of transport. At any time, either day or night, a traveler’s trip is less expensive than most cab rides.
They provide helmets for safety.
The app has easy accessibility because it is available in five major languages.
There is also a speed-tracking feature that lets the Captains know their speed.
Rapido’s business model offers insurance for both parties – the driver and the rider.
Rapido SWOT Analysis
Rapido SWOT Analysis
Rapido Strengths
Dominance in the Market: Rapido’s former trust is reliant on its consumer consideration over its 65 percent market share in India’s bike-taxi industry.
Economical Services: Easy, affordable rides make an attractive option for budget-off commuters. Its pricing strategy fills a gap between traditional taxi riding and new-age app-based ride-hailing services, catering to a very large customer base.
Simple and Convenient: The company’s app is an apt source for booking rides easily and quickly, bringing the customer satisfaction clause into operation effect for the company.
Rapid Expansion: This company operates in about 100 cities and thus has successfully tapped into new markets and continues expanding.
Driver-focused Model: The platform provides a fixed payment fee structure to a driver rather than payment based on commission per ride, thus cultivating more trust and satisfaction among its driver partners.
Rapido Weaknesses
Perception Problems: Some would-be users may consider bike rides to be unsafe and so deter their usage. Some features for assuring safety have been put in place, but it is still very difficult to alter the perceptions of consumers.
Limited Service Diversification: Rapido has started diversifying into food and courier deliveries and can begin to move away from its emphasis on bike-taxi services; however, it could limit the potential to attract a wider customer segment compared to competitors offering various modes of transport.
Inconsistent Operations: Users experience non-uniformity of service even after developing all the backend technology, which hinders the overall trust in the service.
Rapido Opportunities
Unexploited Potential in the Market: Further market penetration across India opens good potential for Rapido to scale its customer base and market share.
Diversification into New Services: More channels, such as car-hailing or food delivery, can be innovated to attract additional customers and improve their stake in the competition.
EV Adoption: Adaptation to EVs may fall within the spectrometer of developing eco-friendly environment concerns and the government’s pro-poor approaches.
Rapido Threats
Intense Competition: Well-established competitors like Ola and Uber as well as newer emerging regional players, pose a challenge to Rapido’s market share as well as its pricing strategies. These competitors could also create pressure on profitability and growth.
Regulatory Challenges: The ongoing regulatory tussles concerning ride-hailing in India, coupled with possible changes in government policies, could impact Rapido’s operations and compliance costs.
Economic Factors: Any economic downturn or shift in consumer spending behavior could substantially impact demand for ride-hailing services, especially in the price-sensitive segment.
Conclusion
It is quite clear by looking at the business model of Rapido, that customers and drivers both benefit greatly. By always making constant app updates and improving the system, they wish to make their app user-friendly for every walk of life. They are soon going to launch special and simplified features for visually challenged people.
Since its inception in 2015, Rapido has come a long way and joined the unicorn club on 29 July 2024. Day and night they are striving hard to be the solution for India’s intra-city commuting problems. Rapido’s bike services are a boon for anyone who wishes to reach their destination in a jiffy.
FAQs
How does Rapido make money or what is Rapido revenue model?
Rapido earns money by charging a fee of 20% of the entire fare. The company also earns from its logistics services. Visit their website to learn about the Rapido fares chart.
Who are the founders of Rapido?
Aravind Sanka, Pavan Guntupalli, and Rishikesh SR founded Rapido in 2015.
What is Rapido business model?
The business model of Rapido is mainly a B2C, business-to-customer model. This means that they offer their services directly to their customers as a business entity themselves.
How to start Rapido business?
To start a Rapido business:
As a Rider – Register on the Rapido Captain app, upload documents, get approval, and start rides.
Rapido Franchise – Contact Rapido, check requirements, sign an agreement, and earn commissions.
What was Rapido turnover 2024?
The operating revenue of Rapido increased by 46.3% to INR 648 crore from INR 443 crore in 2023.
How does Rapido work?
Rapido connects users with bike and auto riders for quick rides. Customers book via the app, riders accept, pick them up, and drop them at their location. Rapido earns through ride fees.
What is Rapido net worth in rupees?
As of October 2024, Rapido’s net worth was valued at Rs 6,800 crore.
What is Rapido walk feature?
Rapido doesn’t have a walk feature, but it offers bike, auto, and cab ride options.
What is Rapido owner name?
Aravind Sanka, Pavan Guntupalli, and Rishikesh SR are the founders of Rapido and the parent organization of Rapido is Roppen Transportation Services.
How to earn money from Rapido?
To earn from Rapido, become a “Rapido Captain” by registering on the app and using your bike for rides. You earn money from fares, plus bonuses and incentives based on your performance.
Mumbai, March 25, 2025: Grow Indigo, India’s pioneering agri-tech company, has successfully raised $10 million from British International Investment (BII), the UK’s development finance institution and impact investor. Established in 2018, the Company is leading the carbon farming revolution with over 2.5 million acres of smallholder farmland already enrolled across 7 states. This strategic funding will accelerate the expansion of Grow Indigo’s transformative sustainability programs across India.
Tackling Climate Change Through Resilient Farming Practices
Agriculture contributes 14 percent of India’s total greenhouse gas emissions—over 400 million tonnes of CO₂ annually. Grow Indigo is addressing this challenge head-on through carbon farming, a set of sustainable agricultural practices that captures carbon in the soil while reducing emissions.
The company promotes sustainable techniques such as direct-seeded rice and no-tillage farming that deliver multiple benefits:
Enhanced soil health and reduced erosion
Preserved biodiversity
Improved water efficiency
Reduced manual labor, particularly benefiting women farmers
These interventions, which are also known as regenerative agricultural practices, are crucial for decarbonizing rice, wheat and maize production across India.
Creating New Income Streams for Smallholder Farmers
By encouraging farmers to adopt regenerative agricultural practices, Grow Indigo is creating a revolutionary income stream through soil carbon credits and sustainable produce for Scope 3 reductions. These credits, generated from carbon removals as well as greenhouse gas emissions reductions, are sold to corporations who seek to support resilient agri-food supply chains while meeting their sustainability goals. The majority of carbon credit revenue goes directly to participating farmers, improving their livelihoods.
With robust measurement, reporting, and verification (MRV) systems, Grow Indigo’s carbon programs offer corporations a transparent, high-impact option to meet sustainability goals while supporting smallholders and creating healthier rural livelihoods. The company also partners with food and fashion companies to facilitate sustainable sourcing and reduce supply chain emissions.
Grow Indigo believes carbon farming has the potential to become one of India’s largest agricultural export commodities by 2030, generating billions in additional income for smallholder farmers while boosting soil health, conserving water and reducing the country’s agri emissions.
With four carbon farming projects at different stages of development and the first carbon credits expected to be issued soon, Grow Indigo is positioned for rapid growth. The company aims to enroll millions of farmers and acres within the next two years.
“Regenerative agriculture is the future of farming, not only for improving soil health and conserving water but also for creating improved livelihoods for millions of smallholder farmers,” said Dr. Usha Barwale Zehr, Executive Director of Grow Indigo. “With this funding, we will accelerate farmer enrollment and scale carbon farming initiatives. Maintaining integrity of the sustainability outcomes, by way of carbon credits and Scope 3 emission reductions, is of utmost importance to us and will bring maximum value to farmers with our science-backed MRV offerings. We are thrilled to be partnering with BII to pursue these critical objectives for India’s sustainability objectives.”
Srini Nagarajan, Managing Director and Head of Asia at BII, said: “Rice, wheat, and maize are staple foods in India, cultivated by numerous smallholder farmers who are vulnerable to the impacts of climate change. Through our innovative pools of capital, we are proud to support pioneering businesses like Grow Indigo that address adoption barriers by harnessing the potential of carbon markets. This initiative not only reduces carbon emissions but also enhances farmers’ climate resilience and increases their incomes. This is aligned with the Government’s policies to support regenerative agri practices.”
Jennifer Kaul, Deputy Director, Investments, South Asia at the British Deputy High Commission in Mumbai, said: “India’s strong resolve in the adoption of regenerative agricultural practices is noteworthy. The agricultural sector plays a key role both for food security and as a valuable export commodity. The UK government is committed to investments that support our climate and sustainability goals, not least in the agricultural sector. British International Investment’s support to Grow Indigo is a welcome step in this direction and reflects the deep partnership between our nations, which is underpinned by growth and sustainability.”
About Grow Indigo
Grow Indigo, company established by Mahyco Private Ltd and Indigo Ag, is engaged, in the business of research and development, production, processing and marketing of biologicals and linking farmers to voluntary carbon markets by farmer enrolment, advisory, monitoring, reporting and verification of regenerative agricultural practices adopted by the farmers for carbon removal units and sustainable produce. Grow Indigo is the leading Agri-solutions provider for sustainable and regenerative agriculture, having a presence across 16 states with 2000+ distribution partners and 600+ feet on the ground team offering products from seed treatment to harvest.
About British International Investment
British International Investment is the UK’s development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia and the Caribbean, BII invests to create productive, sustainable and inclusive economies in our markets. Between 2022 and 2026, at least 30 percent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion.
Remember the last time you watched a sport on TV or experienced one at the stadium – the joy, the roar of the crowd, everyone sharing the same level of excitement? Now, think of using those same energies to sell products, create a new brand, and create new experiences.
Sports marketing is all about connecting sports and business excitingly and powerfully. Whether you’re a sports enthusiast or business owner looking for ways to reach a passionate audience, we have got you covered.
We will have a look at what it is, the different types, real examples, and some smart winning strategies that will hook you throughout the blog.
Sports marketing is considered a tactic for promoting sports events, teams, and athletes to connect with potential audiences. But it’s not just limited to selling tickets to a game or jerseys with a player’s name on it.
One of the primary focuses is to create a connection between the audience and the brand, following the passion and dedication that sports fans have.
Moreover, sports marketing also demands interesting storytelling. It’s about crafting narratives that are relevant to fans, whether it’s the underdog team fighting for victory, the superstar athlete’s journey to greatness, or the community coming together to support their local team. This emotional engagement is what makes sports marketing so distinctive.
Types of Sports Marketing
The goal of sports marketing is to reach as many people as possible. It comes in several forms, each with its own format and target audience. Here are the main 4 types:
Marketing of Sports
This involves promoting sports events, leagues, teams, or athletes themselves. The goal is to increase ticket sales, viewership, and fan engagement. Examples include advertising for the Super Bowl, the Olympics, or a local marathon.
Marketing Through Sports
This is where brands use sports as a platform to promote their products or services. Think of Nike sponsoring a football team or Coca-Cola being the official drink of the FIFA World Cup. It’s about aligning a brand with the values and emotions associated with sports.
Sports Product Marketing
This focuses on selling sports-related products like equipment, apparel, or fitness gear. For example, Adidas marketed its latest running shoes, and Wilson promoted its tennis rackets.
Digital Sports Marketing
With the rise of social media and streaming platforms, digital sports marketing has become a game-changer. It includes everything from live-tweeting during a game to creating viral challenges on TikTok. The goal is to engage fans online and create shareable content.
Why Sports Marketing Works: The Psychology Behind It
Sports marketing taps into the deep emotional connection people have with sports. Here’s why it’s so effective:
Dedication: Sports fans are some of the most passionate and loyal people. They don’t just watch a game; they live and breathe it.
Shared Experiences: Sports bring people together, whether cheering for a team at a stadium or watching a game with friends at home. Brands that align themselves with these shared experiences can create lasting impressions.
Hero Worship: Athletes are often seen as heroes or role models. When a brand associates itself with a popular athlete, it borrows some of that star power.
Real-World Examples of Sports Marketing Done Right
Let’s look at some iconic examples of sports marketing that hit it out of the park:
Nike and Michael Jordan
Nike and Michael Jordan
The partnership between Nike and Michael Jordan is the stuff of legends. The Air Jordan brand didn’t just sell shoes; it sold a lifestyle. By associating its product with Jordan’s greatness, Nike created a cultural phenomenon that is still going strong decades later.
Red Bull and Extreme Sports
Red Bull doesn’t just promote an energy drink; it also promotes an adrenaline-fueled lifestyle. By sponsoring extreme sports events like the Red Bull Stratos space jump, the brand has positioned itself as the go-to drink for thrill-seekers.
The FIFA World Cup and its Sponsors
The FIFA World Cup is a masterclass in sports marketing. Brands like Adidas, Coca-Cola, and Visa pay millions to be associated with the event, knowing that the global audience and emotional intensity will drive massive brand exposure.
Pepsi and the Super Bowl Halftime Show
The Super Bowl is one of the most-watched events globally, and Pepsi has masterfully leveraged its partnership with the halftime show. By sponsoring the performance, Pepsi ensures its brand is front and center during one of the most anticipated moments of the event.
The halftime show isn’t just about music; it’s a cultural phenomenon, and Pepsi’s association with it reinforces its image as a fun, youthful, and energetic brand.
Under Armour and Steph Curry
Under Armour’s partnership with NBA superstar Steph Curry is a textbook example of how to build a brand around an athlete. When Curry rose to fame, Under Armour didn’t just sell shoes; they told the story of an underdog who defied the odds.
The “Curry Brand” became synonymous with hard work, humility, and excellence, resonating with fans worldwide. Under Armour’s clever marketing campaigns, like the “Rule Yourself” series, showcased Curry’s dedication, inspiring millions.
Gatorade and the “Be Like Mike” Campaign
In the 1990s, Gatorade launched one of the most memorable sports marketing campaigns of all time: “Be Like Mike.” Featuring basketball legend Michael Jordan, the campaign tapped into the dreams of every kid (and adult) who wanted to emulate Jordan’s greatness. The catchy jingle and aspirational message made Gatorade the drink of champions, solidifying its place in sports culture.
ESPN and the “This is SportsCenter” Campaign
ESPN’s “This is SportsCenter” campaign is a brilliant example of humor and relatability in sports marketing. The commercials featured athletes, ESPN anchors, and quirky behind-the-scenes moments at the network’s headquarters. By blending sports with humor, ESPN created a campaign that was entertaining as well reinforced its position as the ultimate destination for sports fans.
Puma and Usain Bolt
Puma’s partnership with Usain Bolt, the fastest man in the world, is a masterclass in aligning a brand with an athlete’s persona. Bolt’s charisma, speed, and record-breaking performances perfectly complemented Puma’s image as a bold and innovative brand. The “Forever Faster” campaign celebrated Bolt’s achievements while positioning Puma as a brand that pushes boundaries.
Heineken and the UEFA Champions League
Heineken’s long-standing partnership with the UEFA Champions League is a prime example of global sports marketing. The brand’s campaigns, like “Champion the Match,” focus on the shared experience of watching football with friends. By associating itself with one of the most prestigious sports tournaments, Heineken has become synonymous with premium football experiences.
State Farm and the “Jake from State Farm” Campaign
State Farm’s clever use of humor and sports partnerships has made it a standout in the insurance industry. The “Jake from State Farm” campaign, featuring NFL stars like Patrick Mahomes and Aaron Rodgers, blends sports with everyday life. By positioning itself as a relatable and trustworthy brand, State Farm has successfully connected with sports fans and non-fans alike.
Beats by Dre and Athlete Endorsements
Beats by Dre and Athlete Endorsements
The use of celebrity endorsements has helped Beats by Dre become a cultural icon. From Serena Williams to LeBron James, Beats has partnered with some of the biggest names in sports to promote its headphones. The brand’s “Hear What You Want” campaign, featuring Colin Kaepernick, also showcased its commitment to social issues, resonating with a younger, socially conscious audience.
Budweiser and the FIFA World Cup
Budweiser’s “Light Up the FIFA World Cup” campaign is a stellar example of experiential marketing. The brand created interactive light-up cups that fans could use during matches, turning stadiums into dazzling displays of unity and excitement. By enhancing the fan experience, Budweiser strengthened its connection with football enthusiasts worldwide.
NBA and Social Media Engagement
The NBA has revolutionized sports marketing through its innovative use of social media. From viral highlights on Twitter to behind-the-scenes content on Instagram, the league has mastered the art of engaging fans online. The NBA’s partnership with platforms like YouTube and TikTok has also helped it reach younger audiences, making basketball a global phenomenon.
Adidas and the “Impossible is Nothing” Campaign
Adidas and the “Impossible is Nothing” Campaign
Adidas’ “Impossible is Nothing” campaign is a powerful example of storytelling in sports marketing. Featuring athletes like Muhammad Ali, David Beckham, and Lionel Messi, the campaign celebrates perseverance and determination. By aligning with these inspiring stories, Adidas has positioned itself as a brand that empowers athletes to achieve greatness.
Coca-Cola and the Olympics
Coca-Cola and the Olympics
Coca-Cola’s partnership with the Olympics is one of the longest-running and most successful sports marketing campaigns. The brand’s “Share a Coke” campaign featured during the Olympics encouraged fans to connect, reinforcing Coca-Cola’s message of unity and happiness. By associating itself with this global celebration, Coca-Cola has become a symbol of togetherness.
Winning Strategies in Sports Marketing
Ready to get in the game? Here are some proven strategies to make your sports marketing campaign a success:
Leverage Star Power
Partnering with athletes or teams can give your brand instant credibility and visibility. Just make sure the partnership feels authentic and aligns with your brand values.
Create Experiential Marketing Campaigns
Fans don’t just want to watch; they want to participate. Create experiences like meet-and-greets with athletes, selfies, or interactive social media campaigns.
People connect with stories, not products. Whether it’s an athlete’s journey or a team’s comeback, use the storytelling format to create an emotional bond with your audience.
Go Digital
Social media, live streaming, and influencer partnerships are essential in today’s sports marketing landscape. Engage fans where they spend most of their time—online.
Focus on Community
Sports are all about community. Show your support for local teams, sponsor youth sports programs, or create campaigns that bring fans closer.
Use Data to Personalize Campaigns
Leverage data analytics to understand your audience better and tailor your campaigns to their preferences. For example, fantasy sports platforms like DraftKings use data to create personalized experiences for audiences, increasing engagement and retention.
Create Shareable Content
In the age of social media, shareable content is king. Create videos, memes, or challenges that fans can easily share with their networks. The NFL’s “My Cause, My Cleats” campaign, where players wear custom-designed cleats to support charitable causes, generates tons of shareable content and positive buzz.
Tap into Nostalgia
Nostalgia is a powerful emotion. Use it to connect with fans by revisiting iconic moments, retro branding, or classic matchups. For example, the NBA’s “Hardwood Classics” line of jerseys brings back memories of legendary players and eras, appealing to both older fans and younger audiences who appreciate this.
Collaborate with Influencers
Influencers, whether they are athletes, celebrities, or social media personalities, can amplify your brand’s reach. Partner with influencers who align with your brand values and have a genuine connection with their audience. For instance, Peloton’s collaborations with fitness influencers have helped it build a strong online community.
Focus on Inclusivity
Sports are for everyone, and your marketing should reflect that. Create campaigns that celebrate diversity and inclusivity. For example, Adidas’s “She Breaks Barriers” initiative supports female athletes and promotes gender equality in sports, resonating with a wider audience.
Gamify the Experience
Gamification adds an element of fun and competition to your campaigns. Create contests, quizzes, or challenges that encourage fan participation. For example, Coca-Cola’s “Shoot for Happiness” campaign during the FIFA World Cup allowed fans to play a virtual penalty shootout game, blending sports and entertainment.
Leverage Live Events
Live sports events are a goldmine for marketing opportunities. Engage fans during games by tweeting, watching replays, or engaging with polls during real-time marketing.
Oreo’s famous “You Can Still Dunk in the Dark” tweet during the 2013 Super Bowl blackout is a classic example of real-time marketing done right.
Create Limited-Edition Products
Scarcity drives demand. Launch limited-edition products or merchandise tied to sports events or athletes. For example, Nike’s limited-edition sneakers tied to different sports events often sell out within minutes, creating hype and exclusivity.
Focus on Emotional Triggers
Sports evoke strong emotions—joy, excitement, pride, and even heartbreak. Tap into these emotions to create campaigns that resonate deeply with fans. For instance, Budweiser’s “Whassup?” campaign tapped into the camaraderie of watching sports with friends, creating a lasting emotional connection.
Invest in Cause Marketing
Align your brand with a social cause or charity to build goodwill and connect with socially conscious consumers. For example, the NFL’s “Crucial Catch” campaign raises awareness and funds for cancer research, showing that the league cares about more than just football.
Humor is a universal language. Use it to create memorable and relatable campaigns. The “Jake from State Farm” commercials featuring NFL stars are a great example of how humor can make a brand stand out in a crowded market.
Focus on Visual Storytelling
Try to invest in high-quality photography, videos, and graphics to tell your brand’s story in a world dominated by visuals,. For example, GoPro’s partnership with extreme sports athletes showcases the brand’s cameras in action, creating visually stunning content that resonates with adventure enthusiasts.
Engage Fans Year-Round
Don’t limit your marketing efforts to the season or event. Engage fans year-round with content, promotions, and activities that keep audiences engaged to your brand. For example, the Premier League’s social media channels consistently share content, even during the off-season, to keep fans engaged.
Collaborate with Other Brands
Partner with complementary brands to create unique campaigns that appeal to a larger audience. For example, the collaboration between Gatorade and Fortnite brought together sports and gaming, two of the most popular forms of entertainment, creating a buzz among fans of both.
Measure and Adapt
Finally, always measure the success of your campaigns and be ready to adapt. Use analytics to track engagement, reach, and ROI, and adjust your strategies based on what works. Continuous improvement is key to staying ahead in the competitive world of sports marketing.
The Future of Sports Marketing: What’s Next?
Global Sports Market – Top 6 countries
There has been an explosion in the growth of sports marketing in recent years. The way brands connect with audiences is changing as a result of technological advancements, shifting fan expectations, and digital trends.
So, what’s next? Let’s have a look at the game-changing trends that will define the future of sports marketing.
Virtual Reality (VR) & Augmented Reality (AR)
Imagine yourself sitting courtside at an NBA game, experiencing every dribble and dunk as if you were there—all from the comfort of your couch. That’s the power of VR and AR in sports marketing.
Brands are investing in immersive fan experiences, from virtual stadium tours to AR-powered player stats displayed in real-time during broadcasts. Expect to see more brands embracing these cutting-edge technologies to bring fans closer to the action.
Live-streaming & Interactive Content
Gone are the days when sports fans relied solely on television to catch their favourite games. The rise of live-streaming platforms like Twitch, YouTube, and social media has transformed how fans consume content. But here’s the kicker—fans don’t just want to watch; they want to interact.
That’s why brands are creating behind-the-scenes content, real-time polls, and even letting their brand ambassadors provide alternative game commentary to make sports marketing more engaging than ever before.
NFTs & Digital Collectibles
Remember collecting trading cards as a kid? Now, think of owning a one-of-a-kind digital version of your favourite athlete’s best game moments. NFTs (non-fungible tokens) are taking the sports world by storm.
The NBA’s Top Shot NFT marketplace is a prime example, allowing fans to buy and trade exclusive digital highlights. This trend opens a new revenue stream for teams, athletes, and brands while giving fans a unique way to own a piece of sports history.
Metaverse & Virtual Sports Events
The metaverse isn’t just a futuristic concept—it’s already here. Imagine attending a Super Bowl watch party in a virtual stadium, interacting with fellow fans, and even buying digital merchandise for your avatar.
Sports brands and leagues are actively exploring ways to integrate sports into virtual worlds, creating fruitful opportunities for sponsorships and fan engagement like never before.
AI-Powered Fan Personalization
Personalization is the name of the game. By utilizing artificial intelligence, brands can now analyze fan behaviour and preferences to deliver customized content, promotions, and recommendations.
Whether AI-driven chatbots provide real-time game updates or predictive analytics suggesting personalized merchandise, sports marketing is becoming advanced, faster, and more targeted.
Sustainability in Sports Marketing
Nowadays, fans care about more than just the game—they care about the planet. That’s why brands are stepping up their sustainability game. From eco-friendly jerseys and carbon-neutral stadiums to promoting green initiatives, sports marketing is shifting toward a more environmentally responsible approach.
Adidas’s fully recyclable running shoes are a perfect example of how brands can make an impact while staying relevant to today’s conscious consumers.
Women’s Sports & Inclusive Marketing
The rise of women’s sports is one of the significant growth opportunities in sports marketing. Events like the FIFA Women’s World Cup and the WNBA are gaining record-breaking viewership, and brands that invest in women’s sports are tapping into a loyal and passionate audience. It’s not just about representation—it’s about recognizing the immense value of female athletes and their fan base.
Esports & Gaming Integration
If you think traditional sports are the only players in the marketing game, think again. Esports is now a billion-dollar industry, attracting massive audiences worldwide. Brands are blindly following this trend through sponsorships, in-game advertising, and partnerships with gaming influencers.
The blend of esports and mainstream sports is creating a new era of cross-industry marketing, bringing together traditional sports fans and digital-native audiences.
Wearable Tech & Smart Data
Imagine if your fitness tracker could sync with your favourite sports team’s training program, giving you customized workouts based on authentic athlete data. Wearable technology is revolutionizing the way fans engage with sports and their fitness. Smart jerseys, biometric analysis, and interactive apps are helping brands provide fans with unique and personalized experiences.
Final Thought: Why Sports Marketing is a Winning Play?
Sports marketing is more than just a business strategy; it’s a way to connect with people on a deeper level. By tapping into the passion, loyalty, and shared experiences that sports create, brands can build lasting relationships with their audience.
Sports marketing is an evergreen field with countless opportunities for businesses and marketers. A brand seeking to promote its brand or a marketer searching for the next big idea can benefit from sports marketing. Create engaging experiences that connect with your audience and tell a compelling story.
Now, it’s your turn to step onto the field and make your mark. Game on!
FAQs
What is sports marketing?
Sports marketing involves using sports to market products or services or marketing the sports themselves (teams, athletes, events).
Why is sports such a powerful marketing platform?
Sports evoke strong emotions, create passionate fan bases, and offer high visibility, making it effective for brand building and reaching target audiences.
What are some key strategies in successful sports marketing?
Key strategies include sponsorship, athlete endorsements, content marketing, experiential marketing, and leveraging digital platforms.
New Delhi [India], March 25: Ok, let’s get straight to the point: managing accounts manually is a nightmare. If you’re still buried under spreadsheets, flipping through receipts, and stressing over missing numbers, you’re doing SME’s business the difficult way. It’s like using a typewriter when the world has moved on to voice-to-text—literally!
Welcome to cloud accounting—the smartest, easiest way to manage your finances without losing sleep (or your data). If you’re wondering, “Do I really need this?” keep reading. By the end, you’ll be asking yourself, “Why didn’t I switch sooner?”
First, What Even is Cloud Accounting?
Imagine all your financial data—your invoices, transactions, reports, and expenses—securely stored online and accessible anytime from any device. No more “I left that file on my office laptop.” No more “Where did I save last month’s report?” No more “Oops, my hard drive crashed, and I lost everything.” Everything stays safe, updated, and accessible, no matter where you are. Sounds like a dream? It’s reality. And that’s why SMEs everywhere are moving to cloud accounting.
Why Cloud Accounting is a No-Brainer for SME’s
Still unsure if cloud accounting is worth it? Let’s break it down.
Your financial data isn’t trapped on one computer—it’s everywhere you need it to be. You can check your cash flow while sipping chai at your favorite café, approve invoices while stuck in traffic (as a passenger, of course), and access reports from your phone when a client suddenly asks for details. SME’s business isn’t tied to one place, so why should your accounting be? With hisabkitab’s mobile app, available on both Android and iOS, you can manage your SME’s business finances from anywhere—whether you’re in the office or on the go.
Nobody starts an SME’s business because they love manually entering numbers. Cloud accounting automates all those time-consuming tasks, making SME’s business operations smoother. Invoices get sent automatically, expenses are tracked in real time, and payment reminders go out on their own. This means less work, fewer mistakes, and more time to actually grow your SME’s business.
You know that mini heart attack you get when your laptop crashes and you haven’t backed up your files? That doesn’t happen with cloud accounting. No more lost receipts, no more corrupt files, and no more scrambling to find missing reports. Everything is backed up automatically, so your financial data stays safe—no matter what happens to your device. Hisabkitab’s mobile app securely stores your financial records and makes them accessible across devices, making accounting truly hassle-free.
Spreadsheets are great… until they aren’t. One wrong formula, one deleted cell, and suddenly, your entire report is a mess. Cloud accounting keeps everything organized, error-free, and far less stressful. Reports are generated automatically, cash flow updates in real time, and financial statements are one click away—not buried in twenty different folders. This means less stress and more clarity in financial planning.
Why SME’s Are Choosing hisabkitab for Cloud Accounting
So, we’ve established that cloud accounting is the future. However, not all cloud accounting tools are created equal. That’s where hisabkitab comes in. It’s built specifically for Indian SME’s- whether you’re a freelancer, a startup, an SME’s business, or an agency, it’s designed to make accounting simple, seamless, and stress-free.
SME’s are switching to hisabkitab for a reason. With a 4.5+ rating on Google Play and the App Store, it’s trusted by thousands of SME’s across industries. It’s easy to use, with no confusing menus or complicated finance terms. Being 100% cloud-based, your data is available anywhere, anytime. The pricing is affordable, with no hidden costs, just real value for money.
The platform is also accessible across multiple devices, allowing you to switch between desktop, mobile, or tablet without any hassle. Basically, it’s like having a full-time accountant—without the hefty salary.
The Future is Here—Are You Ready?
We’ve automated our food orders. We’ve automated our shopping. We’ve even automated our reminders to drink water. So, why are we still managing our finances the old-school way? Cloud accounting isn’t just an upgrade—it’s a necessity for SME’s that want to save time by automating financial tasks, cut down errors, and keep records accurate while making smarter SME business decisions with real-time insights. The best part? Getting started is ridiculously easy.
Switch to Smart Accounting with hisabkitab
Managing your SME’s business finances doesn’t have to be a headache. With hisabkitab’s cloud accounting solution, you get instant access to financial data anytime, anywhere, automated bookkeeping and invoicing so you can focus on growing your SME’s business, and secure, hassle-free accounting—no more lost files or spreadsheet disasters.
So, what’s the plan? Are you sticking with outdated methods or upgrading to smarter, cloud-powered accounting?
The future is here—let’s make the switch. Join thousands of SMEs using hisabkitab today!
The Unified Pension Scheme (UPS) for central government employees will go into effect on April 1, 2025, according to a notification from the Pension Fund Regulatory Authority of India (PFRDA).This implies that central government workers who are now employed and covered by the National Pension Scheme (NPS) as well as newly hired workers on or after April 1, 2025, will be enrolled under UPS, a news outlet reported.
What UPS Offers?
Prior to superannuation, UPS guarantees government workers a pension equal to 50% of their average basic pay earned throughout the previous 12 months. Superannuation is the term used to describe a company’s pension plan, or the retirement plan that businesses provide to their workers. This allows tax benefit money to be deposited into each employee’s account until they reach retirement age.
Eligibility for UPS
In India, 23 lakh central government employees have access to the NPS and UPS choices. This does not, however, apply to workers who have been fired, removed from service, or quit. Starting on April 1, 2025, all central government employees can access the enrolment and claim forms online at Protean CRA’s official website. Submitting the forms in person is also an option for those who prefer.
The UPS, What’s the Latest Developments?
According to a report, the entire rate of guaranteed payment with the UPS is 50% of 12 months’ average basic pay just before superannuation for a minimum qualifying service of 25 years against a payout tied to market returns under the NPS. While the NPS went into effect on January 1, 2004, the UPS was approved by the Union Cabinet, led by Prime Minister Narendra Modi, on August 24, 2024. Employees must contribute 10% of their base pay and dearness allowance to the UPS, which is also contributory in nature. The central government, the employer, will contribute 18.5%. The market returns on that corpus, which is primarily invested in government debt, also affect the final payout.
How is UPS’ Guaranteed Payout Determined?
The Finance Ministry’s frequently asked questions provide specifics on how UPS calculates guaranteed payouts. Just prior to superannuation, the entire assured payout rate will be 50% of the average basic wage for 12 months. After at least 25 years of qualifying service, a full assured payout is due. If the qualifying service duration was less, a commensurate payment would be allowed. According to the standards set forth by the Finance Ministry, if superannuation occurs after ten years or more of qualifying service, a minimum guaranteed payout of INR 10,000 per month will be guaranteed, provided that contributions are credited on time and regularly and that no withdrawals are made. When an employee voluntarily retires after completing a minimum of 25 years of qualifying service, the guaranteed payout will start on the day the employee would have superannuated if he had stayed on the job.
In a regulatory statement on 25 March, Ola Electric Technologies Private Limited, a division of Ola Electric Mobility Limited, stated that it had settled its financial disagreements with the Rosmerta Group and that as a result, insolvency proceedings had been withdrawn against it. Earlier insolvency filings against Ola Electric Technologies were filed by the Rosmerta Group, which cited unpaid debts. According to earlier media reports, Rosmerta Digital Services demanded payment of slightly over INR 22 crore (about $2.5 million) in unpaid debts, while Rosmerta Safety Systems requested payments of almost INR 2.5 crore. The National Company Law Tribunal (NCLT) in Bengaluru received a request from Rosmerta to withdraw its insolvency proceedings after Ola Electric declared on March 25 that all outstanding debts had been resolved amicably. The business underlined its dedication to keeping solid business ties and making sure that any commercial concerns are promptly resolved.
Ola Clarifying the Mismatch of Data
This decision was made in the midst of Ola Electric’s operational optimisation efforts. Ola Electric also claimed that discussions with its vehicle registration vendors were the cause of a discrepancy in February between government registration data and sales data supplied by the company. The government has requested details on the issue, but the corporation claims that the backlog caused by the data mismatch has been resolved. According to the corporation, its sales are still strong, and the brief backlog in February was brought on by continuous discussions with our partners that handle vehicle registrations. With daily registrations surpassing 50% of its three-month daily sales average, this backlog is being quickly cleared. By the end of March 2025, the remaining backlog will be completely resolved, with almost 40% of the February backlog already cleared. On March 24, the shares of Ola Electric Mobility Limited closed at INR 55.72 per share. Ola Electric’s shares are down roughly 27% since listing in August, however they have somewhat recovered from a record low since it notified investors of the insolvency petition.
Over 1,000 Workers are Let go by Ola Electric
According to a media agency, Ola Electric Mobility Ltd., under the leadership of Bhavish Aggarwal, is laying off over 1,000 staff and contract workers in an attempt to reduce the company’s growing losses. As the electric two-wheeler (2W) manufacturer goes through a significant reorganisation, the employment cutbacks impact several departments, including procurement, fulfilment, customer relations, and charging infrastructure. In less than five months, this is the company’s second round of layoffs. About 500 workers were let go by Ola Electric in November 2024, and the most recent round of layoffs represents more than 25% of the company’s 4,000-person employment as of March 2024. However, since they are not included in the company’s formal disclosures, contract workers are not included in this statistic.
India has accused South Korean tech giant Samsung of tax cheating in the purchase of necessary telecom equipment and has imposed a $601 million tax demand on the company. One of the largest orders in recent years, it may have a significant impact on Samsung’s net profit in India, which was $955 million in 2024. It may be contested in court or before a tax tribunal. The company was warned in 2023 for misclassifying imports to avoid 10% or 20% tariffs on a crucial transmission component used in cell towers. The corporation also imports telecom equipment through its network segment.
Tug of War Between Samsung and Custom Authorities
By arguing that the component did not incur taxes and that officials had been aware of its classification method for years, Samsung persuaded India’s tax office to end the investigation. However, customs officials disagreed in a private order dated January 8 that was examined by a media outlet. Samsung “knowingly and intentionally presented false documents before the customs authority for clearance” and “violated” Indian regulations, according to the ruling issued by customs commissioner Sonal Bajaj. Investigators discovered that Samsung violated all industry norms and commercial ethics in order to fulfil their exclusive goal of maximising their profit by cheating the government exchequer, Bajaj continued. Samsung was mandated to pay 44.6 billion rupees ($520 million), which included a 100% penalty and outstanding taxes. It imported and sold these goods to Reliance Jio, the telecom powerhouse owned by billionaire Mukesh Ambani.
The ruling stated that seven executives in India, including Sung Beam Hong, the vice president of the network business, Dong Won Chu, the chief financial officer, and Sheetal Jain, a general manager for finance, as well as Nikhil Aggarwal, Samsung’s general manager for indirect taxation, face fines of $81 million.
Samsung’s Response
In a statement, Samsung stated that it conformed with Indian legislation and that the problem was with the way customs classified the goods. To make sure its rights are completely safeguarded, the business is evaluating its legal options. The event occurs when India tightens its regulations on foreign businesses and their imports. Due to incorrectly classifying automobile parts, Volkswagen is contesting a record demand of $1.4 billion in import back taxes in a legal dispute with New Delhi. The issue has reignited the concerns of foreign investors regarding tax battles, but the German corporation denies any wrongdoing in what it described as a “matter of life and death” for its India operation.
The Samsung probe started in 2021 when tax officials raided the company’s offices in Gurugram, which is close to New Delhi, and Mumbai, the financial capital, and confiscated records, emails, and a few electronic devices. Later, senior executives were questioned. A radio-frequency circuit housed in a compact outside module, the “Remote Radio Head” is “one of the most important” components of 4G telecom networks, according to tax officials, and its imports are at the heart of the Samsung controversy.
The Bengaluru-based startup Aukera Jewellery, specialising in lab-grown diamond (LGD) jewellery, is in talks to raise $15 million in a Series B funding round led by Peak XV Partners. This funding will help scale operations for the company due to increasing competition in the $2.6 billion LGD market in India.
Company Overview
Established in the year 2023, Aukera was co-founded by Lisa Mukhedkar and Kumar Saurabh. It has occupied space as an emerging player in the LGD segment. The range of products includes diverse jewellery items, such as bracelets, earrings, pendants, and necklaces, made of gold and silver. The company believes in its art form and craft and works with integrity to create beautiful and precious fine diamond jewellery.
Previous Funding and Growth
Aukera raised INR 26.7 crore (nearly $3.2 million) in a Series A funding round in August 2024, with Fireside Ventures being the lead investor. The funding was also significant because it was the company’s first institutional funding and highlighted growing interest among investors in the lab-grown diamond space. The money was intended for expansion and general corporate purposes, while Fireside Ventures now holds a 19.20% stake in the company.
Lab-Grown Diamond Market in India
Consumer demand for sustainable and ethically sourced jewellery is driving significant growth in India. India’s lab-grown diamond market was valued at $2.61 billion in 2023 and is expected to grow at a 13.73% CAGR, reaching $8.31 billion by 2032. This means ample opportunities for companies like Aukera to innovate and gain some market share. The acceptance of lab-grown diamonds, allied to their price positioning below-mined diamonds, has further augured well for this trend.
Strategic Implications of the Funding
The expected funding from Peak XV Partners for an amount of $15 million is anticipated to be utilised for scaling the operations of Aukera, enhancing products, and establishing further presence in the market. It is in accordance with the company’s strategy to catch up with the dynamically changing trends of the LGD market and consumers’ preferences. It also includes existing investors like Fireside Ventures in this funding round, proving their faith in the business model and future growth potential of Aukera.
It is the pursuit of additional funding by Aukera Jewellery, which reiterates the purpose of growth and innovation in the lab-grown diamond industry. The company, supported by important investors, will be able to swim itself in the competing terrain into which it has to grow while also catering to the rising demand for sustainable and ethical luxury. It is true that they are sustainable and interesting in that regard.
After turning down a takeover offer from its departing CEO, the US genetic testing business 23andMe has declared bankruptcy and is searching for a buyer. Late on 23 March, 23andMe, a company that charges less than $200 for a mail-back saliva test that can identify ancestry or specific genetic features linked to health, announced that it had “filed a voluntary petition for reorganisation” with a Missouri state bankruptcy court. Additionally, the Silicon Valley-based company stated that it plans to carry on with business as usual during the selling process. Furthermore, it stated that there would be no modifications made to the way consumer data is stored or protected.
23andMe Rejected Takeover Offer
According to the announcement, 23andMe declined a takeover approach from its CEO and co-founder, Anne Wojcicki, who has resigned but will continue to serve on the board of directors. Wojcicki wrote on X that she was upset by the brand’s decision to reject her bid, but she nevertheless offered the business her entire support. Strategically, she claimed, she resigned as CEO in order to “be in the best position to pursue the company as an independent bidder.” Despite the company’s difficulties, Wojcicki, who co-founded 23andMe 19 years ago, highlighted her “unwavering” faith in its future. According to regulatory documents, 23andMe, which claims to have 15 million clients, has suffered a drop in sales in recent months and has also agreed to pay about $37.5 million to settle allegations relating to a 2023 data breach. Due to the challenges, 23andMe said in November that the company was firing around 200 employees, or 40% of its workforce. Additionally, it halted its research initiatives.
What will Happen to the Genetic Data Collected by the Company?
Although 23andMe’s privacy regulations state that the genetic data may be sold to other companies, officials, including California Attorney General Rob Bonta, had expressed concerns about what would happen to the data. According to the enterprise, the bankruptcy procedure won’t have an impact on how it handles, preserves, or maintains client data. When 23andMe went public in 2021 at a $3.5 billion valuation through a special-purpose acquisition vehicle (SPAC) led by billionaire Richard Branson, it attracted a lot of interest from investors. Due to a surge in demand for DNA testing kits, its market value reached a peak of about $6 billion later that year. However, since then, demand has decreased, harming 23andMe and its rival AncestryDNA, which is owned by Blackstone. The holiday season usually saw a spike in sales of the consumer kits, but 23andMe has had trouble keeping consumers because they would use the kits just once and find little incentive to buy more.
The market for ancestry testing kits may be nearing saturation, according to Bernstein analysts. Over the course of five months in 2023, hackers compromised the personal information of around 7 million 23andMe consumers, severely harming the company’s reputation and making its growth issues worse. Customers who were worried about their privacy and the way DNA testing companies handled their data were alarmed by the incident. In a lawsuit pertaining to the breach, 23andMe ultimately consented to a $30 million settlement late last year. As part of what will be a significant restructure, the San Francisco-based company has also terminated the development of all medicines and fired off 200 people.
Rishita Jain
Kimi Dutta
