The parent company of the massive beauty e-commerce company Nykaa, FSN E-Commerce Ventures, has established Nysaa Cosmetics SPC as a new wholly owned subsidiary in Oman. The new company would engage in the “international and domestic” sale and trade of beauty and personal care (BPC) products, such as cosmetics, fragrances, and other associated items, through both online and offline channels, according to a filing Nykaa made with the exchanges. Nessa International Holdings Limited, a step-down subsidiary of the corporation, has established a new wholly owned subsidiary in Oman, Nysaa Cosmetics SPC, the company said. OMR 30,000 (INR 6 lakh) was used as the initial share capital to establish the new subsidiary. Nessa International, a subsidiary of Nykaa, will own a 100% share in the recently listed business.
Nykaa’s Global Expansion Plan
The opening of Cosmetics SPC in Oman is consistent with Nykaa’s objectives to expand globally, with a particular emphasis on the Middle East. The company entered the Gulf Cooperation Council (GCC) area in 2022 by partnering with Apparel Group, one of the biggest omnichannel retailers in the United Arab Emirates. Since then, Nykaa has established subsidiaries in a number of GCC nations in an effort to reach new clientele and serve the local Indian expat community. The massive beauty e-commerce company established a wholly owned subsidiary in Qatar in July of last year. In response, the business established Nysaa Trading LLC, a new wholly owned subsidiary, in Saudi Arabia. Last year, it also opened the first Nysaa physical store in Dubai.
Financial Outlook of Nykaa
Over the next four years, Nykaa hopes to open 70 outlets under the Nysaa brand across the GCC, aiming for a 7% market share in the GCC beauty industry. In the second quarter (Q2) of the fiscal year 2024–25 (FY25), Nykaa’s consolidated net profit increased by 66.3% to INR 12.97 Cr from INR 7.8 Cr in the same period last year. Operating revenue increased 24.4% from INR 1,746.11 Cr in Q2 FY24 to INR 1,874.74 Cr in the reviewed quarter. Nykaa’s stock ended the trading session on the BSE 3.3% higher, at INR 170.73, on 23 January.
About Nykaa
In addition to redefining the art of e-retailing beauty and personal care in India since its introduction in 2012, Nykaa asserts that it has played a significant role in supporting the development of an ecosystem that was only just getting started. With over 72 Luxe and On-Trend and Kiosk Stores, an ever-expanding online community for beauty enthusiasts, a beauty helpline, and a variety of domestic and international brands, luxury and prestige brands, premium brands, niche and cult brands, as well as expert advice and videos, Nykaa goes above and beyond to provide its customers with only the best. With over 2400 brands that are 100% genuine, Nykaa provides a carefully chosen assortment of products in the areas of makeup, skincare, haircare, bath and body, fragrance, grooming tools, personal care, and health & wellbeing.
Amazon Web Services (AWS) has reportedly agreed to investing INR 60,000 Cr (about $7 billion) to establish data centres in Telangana, which would significantly strengthen the state’s IT economy. With plans to invest an additional INR 60,000 Cr, AWS will be significantly growing its data facilities in Hyderabad. As a result, the Hyderabad AWS region will be crucial to AWS’ future expansion of cloud services in India, including AI, a chief minister’s (CM) office official told a major media house. The news report further states that AWS asked the state authorities for a second piece of land for the expansion plans, and the government granted the request. Following a meeting with Amazon executives on the outskirts of the World Economic Forum’s annual summit in Davos, Switzerland, a delegation led by Chief Minister Revanth Reddy and State Industries Minister D Sridhar Babu made the commitment.
Telangana Chief Minister praised the significant investment decision, saying the government is thrilled that international companies like Amazon are becoming more confident in the state and making larger investments than ever before. The past year’s efforts have really paid off, he added.
Tillman Global Holdings and Blackstone Following the Footsteps of AWS
In addition to AWS, Tillman Global Holdings and Blackstone also committed INR 20,000 Cr to establishing data centres in Telangana alone. Blackstone agreed to invest INR 4,500 Cr to build a 150 MW data centre in Hyderabad, while Tillman Global Holdings, a US-based company, will invest INR 15,000 Cr to build a 300 MW data centre in Hyderabad. Telangana has signed agreements totalling INR 80,000 with the three businesses. The most recent development occurs five months after Amazon revealed plans to construct a new, hyperscale data centre in Hyderabad, which is reportedly essential for services enabled by machine learning (ML) and artificial intelligence (AI).
AWS Network in the State of Telangana
According to reports, Amazon also revealed plans to invest an extra $2 billion in Telangana in September of last year in order to increase the state’s capacity for data centres. AWS has invested about $1 billion in Telangana and currently runs three data centres there. AWS is actively growing its footprint in the nation. For more than INR 450 Cr, it allegedly purchased a 38.18-acre plot of land in Palava, close to Mumbai, from Lodha Group in December of last year with plans to construct a hyperscale data hub. In addition to Amazon, several major IT companies are constructing data centres in the nation. Google and real estate developer Anant Raj inked a memorandum of understanding (MoU) last year to provide cloud computing services and data centre infrastructure to businesses. Additionally, Oracle announced in May of last year that it intends to treble its expenditures in India, concentrating on data and artificial intelligence.
India’s home décor industry is growing fast and is expected to increase by 8.67% between 2025 and 2029, reaching a value of $2.97 billion by 2029. In this growing market, a name that is standing out and making a mark for itself is Urban Space. Urban Space is a home decor brand that provides premium home furnishing products at affordable prices. The brand combines traditional craftsmanship with modern designs and materials to create unique and stylish furnishings. With a focus on innovation and customer satisfaction, Urban Space is all set to make an impact in the home decor market.
In this article, learn more about Urban Space, its founders, its business model, the challenges it faced, how its appearance on Shark Tank India helped boost its visibility and success, and more.
Urban Space is a home décor brand from Ahmedabad, India’s textile hub. The brand offers a wide range of products, including curtains, bed linen, dohar blankets, bed covers, mats, rugs, and table linen, all available for convenient online shopping.
With in-house design, manufacturing, and packaging facilities, Urban Space provides tailored solutions to meet various needs in fabric, colour, design, and pricing. The brand focuses on delivering high-quality, unique pieces to refresh and inspire living spaces, making them instantly appealing.
Urban Space is committed to enhancing customer experience and creating better homes by offering premium home furnishing products at affordable prices.
Urban Space – Industry
Urban Space, a D2C brand in the home decor industry, operates within a rapidly expanding market in India. The home décor market in India is expected to grow by 8.67% between 2025 and 2029, resulting in a market volume of $2.97 billion in 2029.
Urban Space primarily targets the mass-premium segment, offering quality, affordability, and contemporary designs to middle- and upper-middle-class consumers. The brand focuses on providing stylish, premium products at accessible price points, catering to a customer base that includes young professionals, newlyweds, and families aiming to enhance their living spaces. The mass-premium segment, particularly strong in urban areas and Tier 2/Tier 3 cities, boasts an estimated market size of 200-250 million potential customers.
As a competitor in the fast-growing online market, Urban Space actively engages with major e-commerce platforms such as Amazon and Flipkart, as well as Q-commerce platforms like Blinkit and Zepto. Although exact market share figures are not publicly available, the brand estimates its share in the online home furnishing sector to be around 1-2% in its initial 3-4 years of operations. This figure is expected to increase significantly as the brand scales operations, enhances brand awareness, and diversifies its product offerings.
Industry Outlook for the Next 5 Years
The home furnishing industry in India is poised for strong growth over the next five years. The following trends are expected to drive this growth:
Increased Digital Penetration and E-commerce Growth: The shift towards online shopping, driven by increased internet penetration, is set to continue. As a D2C brand, Urban Space is well-positioned to benefit from this trend, especially with the rise of quick commerce platforms.
Growing Focus on Quality and Sustainability: Consumers are becoming more conscious of quality and sustainability. There is a growing demand for eco-friendly products made with sustainable materials, which is a trend the brand aims to capitalise on by offering products that are both stylish and environmentally friendly.
Increased Disposable Income in Urban and Semi-Urban Areas: With rising disposable income, especially in Tier 2 and Tier 3 cities, there will be greater demand for premium yet affordable home furnishing products.
Personalised and Customisable Home Furnishing: The demand for personalised and customisable home decor items is expected to rise. Consumers are increasingly looking for products that reflect their unique style.
In the next five years, the industry is expected to grow at a rate of 10-12% CAGR, and Urban Space is expected to capture a larger share of the D2C home furnishings market.
Urban Space’s Vision for the Next 5-10 Years
Urban Space aims to establish itself as a market leader in the Indian home furnishing sector, particularly in the online and D2C segments. The brand’s strategic goals include:
Brand Expansion: Expanding its presence in online and offline channels, offering more localised designs, and enhancing its product portfolio to include a wider range of premium home furnishings.
Product Diversification: Introducing new categories like rugs, lighting, and home accessories, which will allow Urban Space to become a one-stop shop for all home furnishing needs.
Sustainability Initiatives: Launching eco-friendly collections and building a strong reputation as a sustainable brand. This will resonate with the growing segment of eco-conscious consumers.
Global Expansion: While Urban Space will continue to strengthen its position in the Indian market, it will also see an opportunity to expand to international markets.
Technological Integration: Leveraging AI and data analytics for personalised shopping experiences, improving customer service, and enhancing supply chain efficiency. Urban Space will likely integrate augmented reality (AR) features in its shopping experience to help customers visualise home furnishings in their spaces.
Urban Space – Founders
Urban Space Founders – Rohit Agarwal and Radhika Koolwal
Rohit Agarwal and Radhika Koolwal are the co-founders of Urban Space. They are married and work together to run the business, using their combined skills and vision to grow the brand in the home décor industry.
Rohit Agarwal
Rohit completed his Engineering in Mechanical and then pursued an MBA from MDI Gurgaon. He worked with Nokia for a couple of years before joining the family fabric manufacturing business.
Radhika Koolwal
Radhika completed her Engineering in Computer Science, worked with Infosys for a couple of years, and then did her MBA from IMI Delhi. She worked in a real estate firm in Dubai for some time before moving to Ahmedabad in 2016 for marriage.
Rohit handles manufacturing and supply for the brand, while Radhika is responsible for sales and marketing. Both founders jointly manage social and product development.
Urban Space’s Hiring Philosophy:
Given the fast-paced nature of Urban Space, the founders’ hiring philosophy revolves around finding people who can thrive in a dynamic, innovative, and collaborative environment. They look for individuals who are not only qualified but also align with the brand’s values of creativity, agility, and customer-first thinking.
Here are some qualities the founders of Urban Space look for in an individual:
Growth-Orientated Individuals
Entrepreneurial Spirit
Diversity of Thought and Experience
Technical Expertise and Creativity
Problem-Solving Ability
Alignment with Company Values
Adaptability and Team Spirit
Digital & E-Commerce Expertise
Urban Space – Startup Story
The inspiration behind starting Urban Space stemmed from years of experience in manufacturing and creating products for other brands. While working behind the scenes, the founders recognised a gap in the market for high-quality yet affordable home décor products that could bring beauty and comfort to every home.
This vision of democratising home décor and making it accessible to everyone sparked the idea for their own brand. Drawing upon their background in manufacturing and sales, they gained deep insights into customer preferences, market demands, and industry trends. They carefully analysed consumer needs—what people sought in home décor, what they valued most, and where they felt underserved.
To validate the concept, they studied competitors, engaged directly with potential customers, and gathered feedback from their networks. Observing a clear demand for affordable, high-quality home décor reinforced their confidence in the brand’s potential.
The journey began with translating their vision into actionable goals. Ideas were brainstormed for products that were both stylish and functional, catering to a wide range of tastes and needs. The design and prototyping processes were meticulous, leveraging their expertise in manufacturing to ensure a focus on quality and affordability. Each product underwent multiple iterations to meet their exacting standards and deliver value to customers. Attention was paid to every detail—materials, finishes, and usability—so that the products could effortlessly enhance homes.
The initial idea was shared with close friends, family, and trusted colleagues in the manufacturing and sales industries. The response was overwhelmingly positive, with many resonating with the concept of making high-quality home décor accessible. Their feedback and insights played a crucial role in refining the vision.
The encouragement received, combined with constructive feedback, strengthened their determination to move forward. The belief in their expertise and mission reassured them that they were on the right path and that the brand had significant potential.
Urban Space – Mission and Vision
Urban Space’s long-term vision is to become the go-to destination for everything related to home décor, encompassing all aspects of creating and styling a home. The brand aspires to be synonymous with beauty, quality, and accessibility within the home décor industry.
In the short term, the company is focused on expanding its product range, refining its offerings, and reaching more homes to establish itself as a trusted name in affordable, high-quality home décor. Urban Space remains committed to building strong customer relationships by consistently delivering products that align with their needs and style preferences.
The core belief driving Urban Space is simple yet profound: “Everyone deserves a beautiful home.” The company upholds the idea that a well-decorated home is not merely a luxury but a source of happiness, comfort, and pride. Its goal is to make home décor accessible to all, ensuring that everyone, regardless of budget, can create a space that reflects their personality and provides a sanctuary of comfort and style.
💡
“Everyone deserves a beautiful home” encapsulates Urban Space’s mission to empower individuals to create spaces they love without compromising on quality or affordability.
Urban Space – Products/Services
Urban Space Products
Urban Space is an e-commerce brand specialising in home décor, with a primary focus on soft furnishings. Its product range includes bed linen, curtains, table linen, rugs, and even ceramics. The company’s platform is simple and intuitive, enabling customers to explore and shop for high-quality, stylish, and affordable home décor products from the comfort of their homes.
Urban Space’s USP lies in its in-house manufacturing. By controlling the production process, it ensures top-notch quality while keeping costs low. This allows Urban Space to deliver products that reflect the elegance of luxury décor but remain accessible to a broader audience.
The brand’s innovation lies in its ability to merge traditional craftsmanship with modern designs and materials. This balance allows it to offer unique, trend-forward products that meet both aesthetic and practical needs. Urban Space leverages advanced manufacturing technology in its facilities to ensure precision, efficiency, and consistency in product quality.
On the e-commerce side, it uses a robust platform optimised for seamless navigation, secure payments, and a user-friendly shopping experience. Data analytics also play a key role in understanding customer preferences, optimising inventory, and personalising its offerings.
Urban Space has stayed true to its focus on home décor since its inception and has not pivoted. However, the brand is constantly evolving and expanding its product range. What started as a brand focusing solely on soft furnishings has grown to include ceramics, crockery, and even handbags, as it aims to cater to every aspect of home décor.
Urban Space follows a Direct-to-Consumer (D2C) model, which means that it sells directly to consumers through its website and various online marketplaces, bypassing traditional retail channels. This allows the brand to have better control over pricing, customer experience, and brand positioning. Here are the key elements of Urban Space’s business model:
E-commerce Sales: Urban Space sells on prominent platforms like Amazon, Flipkart, Myntra, and other specialised home décor portals.
Q-Commerce: Urban Space also sells through hyper-local delivery platforms such as Blinkit and Zepto, which cater to quick deliveries in urban areas.
Brand Website: Urban Space’s own website also serves as a critical channel, offering exclusive collections and a direct relationship with customers, where they can access special offers, promotions, and loyalty programs.
Urban Space’s revenue model is a product-based sales model, where it generates income by selling individual products or bundles of home furnishings directly to customers.
Product Sales
Revenue is primarily driven by the sale of bed linen, curtains, blankets, and table linens. The brand maintains a large catalogue of products across different designs and price points to cater to a wide customer base within the mass-premium segment.
Product Pricing
The pricing of Urban Space’s products is designed to be affordable yet premium. Its pricing strategy aligns with the mass-premium market, ensuring that the products are accessible to a broad audience while maintaining a premium feel.
Bedsheets: INR 699 – INR 1699 (depending on material, design, and size)
Curtains: INR 999 – INR 1999 (based on fabric, design, and customisation options)
Blankets: INR 999 – INR 2,499 (depending on material and size)
Table Linen: INR 499 – INR 2,499 (for a set of placemats, table runners, etc.)
The pricing is competitive, with a focus on offering high-quality products at affordable prices compared to other premium brands in the market.
Urban Space operates at a gross profit margin of 15% at the brand level.
Commission structure
E-commerce companies charge from 20-35% commission based on their product category. After this, the brand incurs logistics costs and marketing costs too.
Urban Space – Launching Company Strategies
Listing on e-commerce platforms was one of the brand’s early strategies, enabling it to reach a wider audience and establish a strong online presence.
Urban Space’s products were listed on prominent e-commerce platforms like Amazon and Flipkart during the launch phase. These platforms have a massive built-in customer base, and the brand capitalised on this by running sponsored ads and discount offers for first-time buyers.
Offering time-limited discounts and launch offers on these platforms helped the brand increase visibility and attract early buyers.
Results: These platforms allowed Urban Space to quickly build trust with users and bring in the first 100 customers who were willing to try products from a new, emerging brand with competitive pricing and quality.
Urban Space’s price offering vs. the quality offering was an attractive buy for the consumer, and it translated into an instant pick-up in sales. The positive feedback and reviews bolstered the founders’ belief in the brand.
Urban Space – Customer Growth and Retention Strategies
Going from acquiring the first 100 users to scaling to 10,000 users is indeed a much larger challenge, requiring a more refined strategy, increased investment in marketing, and often experimentation with different growth tactics. At this stage, it’s crucial to focus on not just attracting more users but also building a strong community, leveraging data-driven insights, and amplifying brand presence through various channels. Here’s how Urban Space achieved this exponential growth:
1. Leveraging Performance Marketing (Paid Ads)
As Urban Space scaled, paid advertising strategy became a key driver of growth. The brand allocated a larger portion of the budget to performance-based channels, focusing on maximising the return on ad spend (ROAS).
Marketing Budget Allocation:
Urban Space allocates 5% of its monthly revenue towards performance marketing, taking pride in achieving some of the industry’s best ROAS, which highlights the brand’s strong in-house marketing capabilities.
As positive results and ROAS improvements were observed, the marketing budget increased to 10-15% of revenue, particularly during key sales periods such as festive sales (Diwali, New Year) and Amazon Prime Day.
2. Influencer Marketing and Partnerships
Influencer Marketing: After acquiring its initial user base, Urban Space leveraged influencer marketing to build credibility and scale rapidly. The strategy evolved from working with micro-influencers to implementing a more diversified influencer approach.
Q-Commerce Partnerships (Blinkit, Zepto): Urban Space expanded its reach by partnering with quick-commerce platforms like Blinkit and Zepto. This allowed customers to order home essentials, including home linens and décor, with hyper-fast delivery. These partnerships enabled the brand to tap into the hyper-local market and cater to customers seeking quick access to home essentials.
Urban Space gained significant visibility and trust after being featured on Shark Tank India in February 2024. The feature gave a face to the brand and led to a 100x spike in searches on the day the episode aired. Following this milestone, the brand experienced substantial growth in its journey.
One of the biggest challenges Urban Space faced was transitioning from a B2B (business-to-business) model to a B2C (business-to-consumer) model. This shift required rethinking every aspect of operations, from manufacturing and inventory management to customer acquisition and order fulfilment.
Stocking and Inventory Management: In the B2B model, production was demand-driven, with bulk orders. However, for B2C, it became essential to anticipate customer preferences, manage a wide range of SKUs, and ensure sufficient stock to avoid delays. Urban Space implemented data-driven forecasting systems to analyse demand trends and optimise inventory levels.
Customer Acquisition: Unlike B2B, which relies on industry networks to build relationships, B2C requires creating direct connections with individual consumers. Urban Space invested in developing a strong online presence, leveraging social media marketing, and collaborating with influencers to reach its target audience. Campaigns focusing on the brand’s “luxury meets affordability” USP played a crucial role in building customer trust.
Order Fulfilment: The shift from bulk shipments to managing thousands of smaller orders was a major operational change. Urban Space streamlined logistics by partnering with reliable delivery providers and establishing efficient order management systems to ensure fast and accurate deliveries.
Maintaining Quality: The transition to B2C increased scrutiny of product quality. To ensure consistency, Urban Space doubled down on quality control processes at every stage, from manufacturing to packaging, to meet and exceed customer expectations.
Urban Space – Marketing Campaigns
Urban Space on Shark Tank India
Urban Space was featured on Shark Tank India in February 2024, which provided the brand with significant visibility and credibility. This feature gave a face to the brand and instilled trust in its quality. On the day the episode aired, there was a 100x surge in searches, and the brand has continued to experience remarkable growth since then.
Additionally, Urban Space has been featured in various web series and movie collaborations, further enhancing its brand recognition and visibility.
Urban Space has been awarded Myntra’s Best Brand in Home & Living 2024.
Urban Space – Competitors
Urban Space’s competitors span across several segments, ranging from mass-market players like Bombay Dyeing and Trident Group to more premium brands like Fabindia and Home Centre.
Urban Space’s focus on quality, design, and affordability positions it well against these competitors, especially in the growing online-first home furnishing market. Expanding product lines, focusing on sustainability, and building a stronger digital presence will be key to differentiating itself and competing effectively in this dynamic space.
Urban Space – Future Plans
Urban Space’s key future plans include:
Entering the Offline Market by Starting Exclusive Brand Outlets— 95% of the market is still offline, and it is important for the brand to be present in all selling mediums. Customers get a touch and feel of the product, and the brand gets more authenticity.
Expanding its product range and foraying into home decor with sustainable and customisable options.
Enhancing digital and e-commerce capabilities through AR features and loyalty programs
Geographic expansion into Tier 2/3 cities, regional warehouses, and international markets.
FAQs
What is Urban Space?
Urban Space is a home décor brand from Ahmedabad, India’s textile hub. The brand offers a wide range of products, including curtains, bed linen, dohar blankets, bed covers, mats, rugs, and table linen, all available for convenient online shopping.
Who are the founders of Urban Space?
Rohit Agarwal and Radhika Koolwal are the co-founders of Urban Space.
When was Urban Space founded?
Urban Space was founded in 2018.
Did Urban Space appear on Shark Tank India?
Yes, Urban Space was featured on Shark Tank India in 2024. On the day the episode aired, there was a 100x surge in searches, and the brand has continued to experience remarkable growth since then.
StartupTalky presents Recap’24, a series of exclusive interviews where we connect with founders and industry leaders to reflect on their journey in 2024 and discuss their vision for the future.
The beverages market in India is projected to grow by 3.43% from 2025 to 2029, resulting in a market volume of $4.6bn by 2029. The industry is experiencing a growing demand for premium, innovative, and ready-to-drink (RTD) products that fit modern consumer lifestyles. One company leading the way is Salud Beverages, a brand that has redefined social drinking with its unique range of RTD beverages.
In this edition of Recap’24, we spotlight Mr. Ajay Shetty, Founder, and CEO of Salud Beverages Private Limited. From conceptualising the idea to creating one of India’s most exciting lifestyle brands, Shetty shares valuable insights into the company’s journey, key milestones, and vision for the future of the RTD beverage market.
StartupTalky: Could you briefly share the story behind Salud Beverages and how it evolved from an idea to a leading RTD lifestyle brand in India?
Mr. Shetty: Salud Beverages was founded with the vision of creating a unique ready-to-drink (RTD) beverage that combines convenience, innovation, and lifestyle. Recognizing a gap in India’s beverage market for premium, pre-mixed drinks that cater to evolving consumer preferences, Salud set out to redefine social drinking experiences.
The brand’s journey began with its flagship product, Salud G&T 2.0, a refreshing gin and tonic crafted with high-quality ingredients and a focus on simplicity and flavor. The brand now emphasizes its dynamic range of flavored RTD beverages, including Salud Cranberry, Viking, and Fiesta. Each variant is crafted to deliver a distinct and refreshing experience that caters to diverse palates, reinforcing Salud’s commitment to innovation and quality.
In addition to beverages, Salud is also focused on strengthening its merchandise category. Recognizing the growing consumer desire for lifestyle products that reflect personal style and brand affinity, Salud is creating a curated range of premium merchandise. This includes clothing and accessories designed to embody the brand’s ethos of fun, freedom, and modern living. The merchandise line complements Salud’s core products, fostering a holistic brand experience that resonates with its community of young, trend-conscious consumers.
From its inception, Salud positioned itself as more than just a beverage company—it embraced a lifestyle ethos that resonates with the millennial and Gen Z audience. Its identity blends music, fashion, and culture, fostering a dynamic community around the brand. Collaborating with artists, hosting events, and curating experiences, Salud quickly grew into a lifestyle-driven label with a global outlook.
With a strategic focus on beverage innovation and a growing merchandise line, Salud is creating a holistic brand ecosystem. This approach positions Salud as more than a drinks label—it’s a cultural force at the intersection of premium beverages, contemporary fashion, and modern living.
StartupTalky: What are the key trends and opportunities shaping the Ready-to-Drink (RTD) beverage market in India?
Mr. Shetty: The Indian beverage market is undergoing a dynamic transformation, driven by changing consumer preferences that emphasize convenience, wellness, and premium experiences. Modern consumers, particularly millennials and Gen Z, are no longer looking for just a drink to quench their thirst—they seek products that resonate with their values and enhance their lifestyles. This shift has fueled the growth of the RTD (Ready-to-Drink) segment, which offers the perfect blend of convenience, premium quality, and innovative flavors.
With an increasing preference for mindful indulgence, RTDs have become the drink of choice for social gatherings and casual occasions, offering a balance of exciting flavors and ease of consumption. The rising demand for conscious, low-alcohol, and functional beverages reflects a growing focus on wellness, pushing brands to innovate and expand their portfolios to remain relevant.
In this rapidly evolving market, brands that prioritize premiumization, conscious options, and lifestyle-driven experiences are gaining traction. Today’s consumers seek more than just products—they value experiences that foster community, connection and shared passions. This shift from a product-centric approach to an experience-driven strategy is a defining trend in the industry, with success relying on meaningful engagement, the creation of brand loyalty, and the ability to adapt to future trends.
StartupTalky: How has the Indian consumer’s approach to RTD beverages changed in recent years, and how does Salud cater to these shifts?
Mr. Shetty: In recent years, the Indian consumer’s approach to RTD beverages has shifted significantly, reflecting broader changes in lifestyle, preferences, and wellness. Modern consumers, particularly millennials and Gen Z, are increasingly seeking convenience without compromising on quality. They are moving away from traditional, heavy alcoholic drinks in favor of lighter, ready-to-consume options that are both indulgent and mindful. This shift is accompanied by a growing demand for low-alcohol and functional beverages that align with their wellness goals.
Additionally, there is an increasing preference for premium, unique, and flavor-forward experiences in RTDs, as consumers are looking for drinks that offer more than just refreshments but also enhance their social and lifestyle experiences. As a result, RTDs are becoming more popular for casual consumption, house parties, and social gatherings where convenience and quality are paramount.
Salud Beverages has effectively tapped into these evolving consumer preferences by offering a range of premium, innovative RTD products that cater to the changing demands of the modern Indian drinker. The brand’s focus on creating high-quality, ready-to-serve beverages with unique flavor profiles positions Salud as a go-to brand for consumers looking for a balance of convenience and indulgence.
Salud’s portfolio, which includes drinks like Salud Cranberry, Fiesta, and Viking, offers a refreshing take on classic beverages. Additionally, Salud’s efforts to build a strong merchandise category and connect with consumers through experiences, such as branded events and collaborations, reflect the growing trend of lifestyle-driven consumption. By staying attuned to the needs of today’s conscious, experience-driven consumers, Salud is continuing to shape the future of the RTD market in India.
StartupTalky: Your production model leverages leased facilities. How has this strategy helped Salud scale operations while maintaining profitability?
Mr. Shetty: Salud operates through a leased production model, enabling the company to scale operations efficiently while maintaining profitability. This approach eliminates the need for significant upfront investments and the time required to build and own a distillery, allowing Salud to focus on product innovation and market expansion. Despite leveraging leased facilities, the company retains full ownership of its products, branding, and operations, ensuring complete control and consistency across all offerings.
StartupTalky: How was 2024 for Salud? What new products were added, and how did they perform?
Mr. Shetty: Last year, Salud focused heavily on expanding both its Ready-to-Drink (RTD) beverage offerings and merchandise category, with a strategic emphasis on strengthening the lifestyle aspect of the brand.
The RTD segment continued to thrive as consumer demand for convenient, high-quality, and innovative beverages grew. Salud maintained its position as a leader in this space with products like Salud Cranberry, Fiesta, and Viking, which offered a mix of premium flavors, quality, and ease of consumption. These RTDs cater to the growing trend of indulgent yet mindful drinking, appealing particularly to the millennial and Gen Z audiences who seek both convenience and wellness in their beverages.
Building on their success in RTD beverages, Salud launched limited-edition collections during the holiday season, specifically designed to appeal to Gen Z and Millennials. These ranges were a significant part of their strategy to diversify and connect with broader audiences. These unique, limited-edition collections generated significant excitement and bolstered Salud’s presence in both the RTD beverage and lifestyle categories.
This dual focus on innovative beverages and exclusive merchandise helped Salud not only expand its product offerings but also strengthen its cultural relevance, positioning itself as more than just a beverage brand but as a lifestyle movement.
StartupTalky: Salud has expanded into lifestyle merchandising and NFTs. How do these offerings align with your brand’s vision and consumer engagement strategy?
Mr. Shetty: Salud’s expansion into lifestyle merchandising and NFTs is a natural extension of the brand’s vision to not only provide premium beverages but also create a holistic cultural experience that resonates deeply with its community. At the core of Salud’s identity is a commitment to blending beverages, fashion, music, and pop culture into a unified lifestyle brand. This approach ensures that consumers are not just purchasing a product but are becoming part of a larger, shared experience that celebrates individuality and modern living.
The lifestyle merchandising initiative—featuring exclusive apparel, accessories, and collaborations—strengthens this brand ethos by offering products that align with the values and passions of Salud’s audience. This shift goes beyond traditional product offerings, creating a deeper connection with the consumer, and allowing them to engage with the brand in different ways, whether through fashion, experiences, or events.
Moreover, Salud’s foray into NFTs taps into the growing trend of digital ownership and collectibles, engaging tech-savvy and culturally aware consumers who are increasingly seeking exclusive, digital-first products. NFTs provide an innovative avenue for the brand to offer unique, limited-edition digital assets that resonate with the lifestyle of the modern consumer.
Both initiatives—merchandising and NFTs—are key components of Salud’s broader engagement strategy, designed to build community, foster loyalty, and position the brand as a cultural movement rather than just a beverage company.
StartupTalky: What challenges have you faced in the RTD industry, and how did you overcome them to make Salud successful?
Mr. Shetty: In the RTD (Ready-to-Drink) industry, Salud has faced several challenges, particularly in adapting to the rapidly changing market and understanding diverse consumer preferences.
One of the key hurdles was ensuring that our products aligned with the evolving tastes and expectations of modern consumers. As younger, urban consumers increasingly demand convenience, premium quality, and innovative flavors, Salud needed to stay ahead of these trends while maintaining the authenticity of our brand. We tackled this challenge by investing heavily in research and product innovation, ensuring that our RTD offerings not only met but exceeded consumer expectations for flavor, quality, and convenience.
Another significant challenge was navigating the complex regulatory landscape in India. Each state has its own set of regulations governing production, labeling, and distribution, which made compliance a careful and often time-consuming process. We overcame this challenge by building a strong understanding of the regulations in each market we entered and collaborating closely with local partners to ensure smooth operations.
Moreover, building a reliable distribution network was crucial. The RTD market is highly competitive, and finding trustworthy local distributors who aligned with our values was essential. By focusing on strategic partnerships and continuously adapting to market dynamics, we were able to successfully position Salud as a leading RTD brand in India. Our commitment to offering high-quality, innovative, and convenient products helped us not only overcome these challenges but thrive in the competitive RTD landscape.
StartupTalky: What are your plans to expand into new markets and launch new products to keep growing Salud?
Mr. Shetty: At Salud, we are actively focused on expanding our presence both locally and internationally to fuel our growth. Domestically, our strategy involves strengthening our footprint in key markets such as Pondicherry, Haryana, Rajasthan, Telangana, and Punjab. Internationally, we’re making significant strides through strategic partnerships that allow us to reach global audiences.
A pivotal step in our global expansion is our distribution agreement with Maritime and Mercantile International (MMI), a part of the Emirates Group. This 11-country, intercontinental partnership, starting with a successful launch in the United Arab Emirates, paves the way for further international growth. Moving forward, we aim to explore new markets that align with our brand ethos and premium offerings, targeting regions with a strong demand for high-quality spirits and RTD beverages.
Our expansion plans are guided by in-depth market research, localized marketing strategies, and scalable distribution channels to ensure that Salud resonates with diverse consumer bases while maintaining our brand’s core values. We are also actively seeking partnerships and collaborations that enable us to connect with international audiences on a deeper level.
On the product front, our commitment to innovation drives us to continuously develop new flavors and premium offerings that cater to the evolving preferences of our consumers. As part of this vision, we are thrilled to announce the launch of our brand-new Salud Shots in Goa. These shots are designed to resonate with our audience, seamlessly aligning with our expansion and product strategies.
By delivering an immersive and premium lifestyle experience, we aim to position Salud for global growth and make a lasting impact on the beverage industry.
StartupTalky: As a founder, what advice would you give to entrepreneurs entering the RTD market or similar industries?
Mr. Shetty: As a founder, one of the most valuable lessons I’ve learned is the importance of perseverance and adaptability. Challenges are inevitable in any venture, but your ability to navigate setbacks and stay resilient will define your success. Stay focused on your vision while remaining open to pivoting when necessary.
Understanding your market and customers is critical—seek feedback, listen to your audience, and consistently improve your product to meet their needs. While passion is essential, it’s equally important to approach business decisions with a level head. Keep emotions in check, maintain a strategic mindset, and view both successes and failures as opportunities to learn and grow.
Entering the RTD market or similar industries requires a balance of creativity, market insight, and a commitment to delivering quality, all while staying agile in the face of change.
Abhiraj Bhal is the co-founder and CEO of Urban Company (formerly known as UrbanClap). He is known to be the real transformational force that has swept through the Indian startup ecosystem. With his innate passion for solving real-world problems and commitment to customer satisfaction, Abhiraj has succeeded in developing a platform that is changing the way home services are being delivered inside India and beyond. Under his leadership, Urban Company has emerged as a household trusted name for availing beauty, wellness services and even home repairs.
Abhiraj’s entrepreneurial journey has been very interesting – by utilizing technology, and finding gaps in the market, he came up with solutions that empower not only the consumers but also the service professionals that form the backbone of his company. His vision does not rest on better business growth but on creating a sustainable economy in which the service professionals are skilled, respected, and financially secure.
What makes Abhiraj different from other entrepreneurs is that he can merge innovation with empathy, making sure the company remains not just successful but socially responsible. He positioned Urban Company as a global market leader in home services with international expansions, well-rounded funding, and a relentless focus on ensuring quality.
In this StartupTalky article, we will explore Abhiraj Bhal’s success story, including his early life, history, net worth, childhood, personal life, education, achievements, and more.
Abhiraj Bhal – Biography
Full Name
Abhiraj Singh Bhal
Birthplace
Patna, Bihar, India
Nationality:
Indian
Education
Bachelor’s degree in Mechanical Engineering, Indian Institute of Technology (IIT) Kanpur Master’s in Business Administration, Indian Institute of Management (IIM) Ahmedabad
Abhiraj Bhal was born in Patna, Bihar, and raised in an academically oriented family that harped on the virtues of hard work and discipline. Abhiraj had shown great curiosity from a tender age and had a great interest in solving problems.
After school, he went to IIT Kanpur for Mechanical Engineering. Here Abhiraj not only excelled in education but also took part in extra-curricular activities that helped build his leadership and collaborative skills. He later did his MBA from IIM Ahmedabad, one of the finest business schools in the country that helped cultivate his interest in entrepreneurship and the changing on-ground dynamics with technology that was gaining considerable momentum during this period at IIM.
Abhiraj Bhal – Personal Life
Abhiraj Bhal keeps his personal life very far away from the limelight. He is married and likes spending time with family when not working. He loves traveling and is a voracious reader, drawing inspiration mostly from entrepreneurs around the world and success stories.
In addition, Abhiraj takes a keen interest in mentoring young startups, and offering guidance and support to budding entrepreneurs. His grounded nature and commitment to social change make him a respected figure in the startup ecosystem.
Abhiraj Bhal – Career Highlights
After passing out from IIM Ahmedabad in 2011, Abhiraj worked for The Boston Consulting Group global management consulting firm. During three years at BCG – he gained immense knowledge of problem-solving and strategy development by understanding consumer behavior across industries. His time at BCG acquainted him with the problems of the unorganized sectors in India; therefore, this led to the conceptualization of inefficiency in-home services.
In 2014, the trio of Abhiraj Bhal, Raghav Chandra, and Varun Khaitan started UrbanClap (now Urban Company) in Gurugram, Haryana. This service was an endeavor to connect consumers with certified professionals providing home service by bridging inefficiencies that are otherwise scattered within the disorganized sector.
The early version of UrbanClap focused on services related to beautification, repairing appliances, and cleaning. They envisioned a marketplace that empowers service professionals and assures seamless, high-quality services for customers.
UrbanClap rebranded itself as Urban Company in 2020, marking the beginning of its journey to transition into an all-inclusive platform offering various home services on one portal. The categories it deals with include deep cleaning, pest control, fitness training, and home repairs for individuals and corporations.
Abhiraj-led expansion plans have seen Urban Company moving internationally into Australia, Singapore, the UAE, and Saudi Arabia. He has set the benchmark for home services platforms that can be successful globally yet maintain a localized approach. Success in other international markets is testimony to Abhiraj’s ability to adapt a business model to address diverse cultural and market needs.
A key aspect of Abhiraj’s vision for Urban Company has been empowering the service professionals on the platform. From providing training programs and financial benefits to offering health insurance and other social security initiatives, Urban Company has redefined the gig economy in India. The company ensures fair earnings, skill development, and job satisfaction for thousands of service partners.
So far, Urban Company has raised over $500 million from marquee investors such as Tiger Global, Prosus Ventures, and Elevation Capital for a valuation of over $2 billion, led by Abhiraj. The funds have been deployed for scaling operations, technological advancement, and expanding the platform’s reach.
Abhiraj Bhal and Raghav Chandra – GQ50 Most Influential Young Indians
The contribution of Abhiraj Bhal to the transformation of home services is highly appreciated and included in such listings as:
Forbes Asia 30 Under 30, 2017: Abhiraj was featured for his entrepreneurial contribution and innovation in building an Urban Company.
GQ50 Most Influential Young Indians – 2017
Business Today India’s Coolest Start-Up: Recognized as one of the most innovative and impactful startups in India, 2018.
Economic Times Start-Up Awards, 2019: Abhiraj was conferred the “Start-Up Leader of the Year” for taking Urban Company to new heights.
Fortune India 40 Under 40, 2020: Abhiraj secured a place in the most populous list of achievers for changing the way home services function.
Startup India Awards: Abhiraj and Urban Company were recognized for the novelty of their solutions and their contribution to the gig economy.
Abhiraj Bhal – Philanthropy
Abhiraj Bhal is committed to a positive social impact through his work. His initiatives are targeted at empowering service professionals, improving their livelihoods, and giving them financial security.
Urban Company has complete training programs for service professionals at the platform, which helps in enhancing their skills and capacities to render quality services. It will help increase customer satisfaction and also improve the confidence of service professionals.
Abhiraj has introduced several measures to improve the financial stability of service providers. These include offering insurance coverage, loans, and savings plans, ensuring that the gig workers on the platform feel secure and valued.
Urban Company has taken concrete steps to include more women in the workforce, especially in categories such as beauty and wellness.
He also launched its eco-friendly drive by bringing on board eco-friendly cleaning agents, coupled with the adoption of greenways amongst its service providers.
Urban Company co-founder and chief executive Abhiraj Bhal also made headlines several times during his tenure.
Accidental E-mail Response (2018): In May 2018, Bhal accidentally sent an e-mail meant for internal staff to customer Rakesh Verma, who had complained about poor repair services relating to air conditioners. In the email, Bhal wrote, “Please ignore him completely. No one should answer his queries.” This incident gained attention on Reddit, where users criticized Bhal’s response and shared negative experiences related to UrbanClap’s customer service and internal culture.
Gig Worker Protests (2023-2024): Urban Company faced protests from its service partners, particularly in the beauty segment, over policies such as ID blocking due to low customer ratings and the ‘auto assign’ feature. Workers claimed these policies led to job insecurity and challenging working conditions. In response, Bhal defended the company’s policies, stating that the average service partner rating was around 4.83 out of 5 and that local politicians and unions were exploiting these disagreements to pressure the company.
Abhiraj Bhal – Facts
Here are some interesting facts about Abhiraj Bhal:
Abhiraj is an alumnus of IIT Kanpur and IIM Ahmedabad
He had worked for The Boston Consulting Group before founding Urban Company
He has revolutionized the gig economy through Urban Company, giving financial security and skill-building opportunities to thousands of professionals in the country.
Abhiraj has been able to take Urban Company to international markets, which means that its business model is scalable.
He insists on a very strict quality control process for the onboarding of professionals on the platform.
Abhiraj’s leadership has been characterized by an unstinting effort towards customer satisfaction and experience.
He is a firm believer in the transformative power of technology to solve real-world challenges.
FAQs
Who is Abhiraj Bhal?
Abhiraj Bhal is the co-founder and CEO of Urban Company, a platform that connects customers with home service professionals like cleaners, beauticians, and technicians.
What is Abhiraj Bhal education?
Abhiraj Bhal studied Mechanical Engineering at IIT Kanpur and completed his MBA at IIM Ahmedabad.
What is Abhiraj Bhal net worth?
Abhiraj Bhal net worth as of 2024 is INR 2200 crore.
In order to safeguard customers against dishonest activities in the quickly growing online retail industry, the Centre has put up draft guidelines for e-commerce platforms that need self-regulation measures. Under the direction of the Ministry of Food and Consumer Affairs, the Bureau of Indian Standards (BIS) created the draft rules, titled “E-commerce Principles and Guidelines for Self-Governance,” and requested feedback from interested parties by February 15.
According to the draft, the growth of e-commerce has brought forth new difficulties, especially with regard to consumer trust and protection. In this context, it is impossible to overstate the significance of effective and transparent regulations and standards for self-governance in e-commerce. For e-commerce operations, the framework presents three-phase principles that address the pre-transaction, contract generation, and post-transaction phases. Prerequisites for the transaction Businesses should, therefore, perform comprehensive KYC on their business partners, particularly third-party suppliers. In order to assist customers in evaluating the features and usefulness of products, the draft also requires comprehensive product listings that contain the title, identification number, seller contact information, photo, and videos.
Bringing More Transparency in the Sector
According to the draft, all e-commerce businesses must document customer consent, permit transaction review, and uphold clear cancellation, return, and refund policies in order to preserve openness. All e-commerce platforms must offer a variety of payment methods, such as bank transfers, e-wallets, mobile payments, and credit/debit cards, in order to ensure safe and equitable payment procedures. Platforms for imported items must prominently disclose information about the importer, packer, and vendor. Platforms are required to document customer permission throughout contract formation, permit transaction scrutiny, and uphold clear cancellation, return, and refund rules.
Additionally, the proposed regulations require safe payments through the use of two-factor authentication and encryption in payment systems. Additionally, cash-on-delivery needs to be handled according to customer preferences. After the transaction The proposal states that the platform must have distinct policies for counterfeit goods and clearly define the timeframes for exchanges, refunds, and replacements. Additionally, the plan suggests banning the sale of things that are prohibited.
Giving More Clarity to Seller and Customers
Along with seller onboarding, the e-commerce company must compile and distribute a list of prohibited products. In addition to the aforementioned recommendations, the document also includes general guidelines, such as conducting business fairly and without giving any seller on the platform preferential treatment. Customers should be made aware of any promotional agreements the e-commerce company may have with brands.
Amazon and Flipkart, two of the biggest online retailers, are currently at odds with the Competition Commission of India (CCI), which has accused them of engaging in anti-competitive behaviour. Furthermore, both businesses have been bypassing laws by using proxy vendors to manage inventories and monitor listings on their platforms, according to the Confederation of All India Traders (CAIT). Additionally, it said that whereas independent traders are forced to pay much higher costs, which distort the competitive landscape, these sellers get lower fees and access to exclusive product launches.
Dixon Technologies, an electronics company, is in talks to establish a $3 billion display fabrication plant in India as part of its expansion into the electronics components market. During the Q3 results call, Dixon’s managing director, Atul Lall, made the announcement. He claimed that the giant from Noida is in negotiations to develop this facility with a multinational tech company. According to Lall, the company is actively negotiating with a worldwide technological partner to establish a top-tier display factory, which is a crucial component in the consumer electronics, IT hardware, and mobiles sectors. The industrial giant hopes to reduce costs, gain control over the supply chain, and localise output via this entity. In order to proceed with this initiative, Dixon is also awaiting the center’s guidelines for the India Semiconductor Mission (ISM) phase 2.
How Firm Plans Utilise Funds?
Regarding the capital investment, Lall stated that approximately $3 billion will be invested in the project at first, with 60% going towards televisions and 15%–12% going towards the production of mobile phones. It’s important to remember that the business wants to use government funding to support this endeavour. In terms of finances, Dixon reports that its consolidated revenues were INR 10,461 Cr at the end of the December 2024 quarter, up 117% from INR 4,821 Cr in the same quarter of the previous fiscal year.
More Details About the Proposed Manufacturing Unit
When it comes to producing devices and products, India’s electronics manufacturing sector has matured. A robust component ecosystem is necessary to maintain and expand. In addition to mechanical and other modules, the company has also introduced a display module that will be operational in the upcoming two to three quarters, according to Lall.
In collaboration with HKC, the firm has also decided on a location for display manufacture, and it anticipates that production will begin in the first or second quarter of the upcoming fiscal year. Trial production of Dixon’s specialised IT hardware manufacturing facility is scheduled to start in February, and mass production is scheduled for the first quarter of FY25–26. Devices for Asus and HP will be produced in large quantities by the facility. According to Lall, mass production for Acer and Lenovo has already started.
India’s PLI Scheme Attracting Players
At the same time, Dixon and manufacturing giant Foxconn have recently exhorted Indian authorities to settle their outstanding dues, which amount to INR 700 crore. This development has occurred recently. These incentives are available to both giants through the Centre’s production-linked initiative (PLI) program. Dixon has recently expressed optimism that the nation’s manufacturing will increase. For example, it signed an agreement with Vivo India last month to establish an OEM plant through a joint venture. Dixon’s subsidiary Padget Electronics and HP India inked a memorandum of understanding (MoU) in September 2024 to produce laptops and personal computers (PCs).
On January 22, Hindustan Unilever (HUL) declared that it had finalised a deal to purchase 90.5% of the high-end actives-led beauty brand Minimalist through secondary buyouts at a pre-money enterprise value of INR 2,955 crore, subject to primary infusion and adjustments based on transaction documents.
According to the conditions outlined in the sale paperwork, HUL stated in its presentation that it will purchase the remaining 9.5% ownership from the founders in two years. According to HUL’s statement, this acquisition represents yet another phase in the transition of its Beauty & Wellbeing portfolio towards changing and higher-growing demand markets. It is anticipated that the deal will be finalised during the first quarter of the upcoming fiscal year (Q1FY26).
HUL Expanding its Beauty and Wellbeing Portfolio
The acquisition is another important move to expand HUL’s beauty and wellness portfolio in high-growth, premium-demand areas, according to Rohit Jawa, CEO and MD of HUL. A fantastic brand based on research, product efficacy, and transparency has been established by Mohit, Rahul, and the team.
In the press announcement, Ritesh Tiwari, executive director of finance and IT and chief financial officer of HUL, added that the company is thrilled to collaborate with the Minimalist team in order to create value through synergies and jointly grow the brand by utilising our complimentary skills. Tiwari added that the affluent and affluent-plus customer segment accounts for half of the approximately INR 68,000 crore beauty market in India.
The brand Minimalist is firmly positioned in the alluring beauty market. He noted that the company has a strong foundation in customer love and product efficacy. Tiwari went on to say that the premium category becomes crucial to the company’s goal for the market, which is to create the nation’s top beauty portfolio.
HUL intends to contribute 900 basis points (bps) to its portfolio shift in beauty and wellness over the ensuing years. This upscale and affluent-plus market is served by the brand Minimalist. According to Tiwari, the masstige pricing point provides HUL with an additional weapon to strengthen its premium segment position in the beauty and wellness space.
About Minimalist
According to the statement from HUL, skincare brand Minimalist, which was founded in 2020 by Mohit and Rahul Yadav, is one of the fastest-growing digital-first brands that resides at the nexus of active science and beauty. The company has a four-year annual revenue runrate (ARR) of INR 500 crore, and this purchase would be a part of the consumer goods major’s beauty and wellness segment. Harman Dhillon, executive director, beauty & wellbeing, HUL, is in charge of the division. The firm will continue to be run in partnership with HUL by the current Minimalist team, which is headed by Mohit and Rahul.
With the distribution of approximately 1.2 Cr in stock options to qualified employees, foodtech giant Zomato has increased the size of its employee stock option plan (ESOP) pool. The company, managed by Deepinder Goyal, announced in an exchange statement on October 2 that its board has approved the issuance of 1,19,97,768 stock options under various ESOP schemes. 116 stock options under the Foodie Bay ESOP 2014 plan and 1.19 Cr stock options under the Zomato ESOP 2021 scheme have been given by the meal delivery and fast commerce behemoth. Under its ESOP schemes, each stock option is convertible into a single fully paid-up equity share with a face value of INR 1 each. These options can be exercised within 10 years of the options’ vesting date or 12 years of Zomato’s public listing date, whichever comes first. According to the filing, lock-in will not apply to the equity shares that will be distributed following the exercise of the stock options. According to the stock’s most recent opening price, the freshly allotted shares are worth a total of INR 328.91 Cr.
The Move to Retain Top Executives and Allure Fresh Talent
Zomato has floated new ESOPs many times this year in an effort to draw in talent from international startups and to retain top executives. Zomato distributed about 35.17 lakh stock shares in August. The foodtech giant had previously announced that it had won approval from shareholders to adopt and execute Zomato ESOP 2024, a new employee stock option plan that would award 18.26 Cr in stock options to employees. The changes coincide with Zomato’s steady increase in profit margins due to the company’s robust business growth, especially in its rapid commerce vertical, Blinkit. While Zomato’s operating revenue increased 74% year over year (YoY) to INR 4,206 Cr in Q1 FY25, the company’s consolidated net profit increased multifold year over year (YoY) to INR 253 Cr. By concentrating on going-out business, the company hopes to further stabilise its revenue.
Adding New Feature for Further Expansion
In addition to launching the “Book Now, Sell Anytime” functionality for tickets purchased for any live event on the Zomato app, Zomato has also acquired Paytm’s movie and events ticketing businesses. Additionally, Zomato has been dropping unsuccessful products and introducing new features to attract users. In order to facilitate the control of food expenses for corporations and their registered personnel, Zomato recently launched “Zomato for Enterprise” (ZFE). But the foodtech major’s tax problems are getting worse. The company was hit with a new goods and services tax (GST) demand and penalty order for more than INR 17.70 crore by West Bengal GST officials last month. Authorities in West Bengal and Tamil Nadu fined Zomato INR 4.59 Cr in August for GST violations.
According to Aravind Srinivas, creator and CEO of Perplexity AI, the AI search engine offers its premium subscription plan to staff and students at his alma mater, IIT Madras, for free. All IIT Madras instructors, staff, and students, where the CEO completed his undergraduate studies, have received complimentary Perplexity Pro from the company. In an X post, Srinivas stated that he was “extremely excited to start there as the brand begins its expansion for Indian campuses.” This is consistent with remarks made by Srinivas in December 2024, in which he stated that he was amenable to “figuring out” an economic arrangement with Prime Minister Narendra Modi in order to provide Perplexity Pro to Indian academics, faculty, and students.
He also met with Prime Minister Modi in New Delhi last month to talk about the prospects for AI adoption in India and globally. Srinivas stated that he is prepared to devote $1 million personally and five hours per week to a “group of people” who will make India “great in the context of AI” in a different post on X on January 22. Srinivas added that he is prepared to personally invest $1 million (sic) and five hours per week in the most capable team that can achieve this at this moment to restore India’s greatness in the context of artificial intelligence. Think of this as a promise that is irrevocable. The team must open source the models under an MIT license and be as fixated on it as the DeepSeek team.
Investing 10 Million More in Indian Startups
The cofounder of Perplexity added that he would put an additional $10 million into the Indian business if it could “rigorously” outperform DeepSeek R1 on all metrics. Large language models (LLMs) have been created by the Chinese AI startup DeepSeek, which is regarded as a serious rival to OpenAI. To compete with platforms like OpenAI-o1, DeepSeek introduced its newest reasoning models, DeepSeek-R1 and DeepSeek-R1-Zero, earlier this week with less than $4 million in funding.
Motivating the AI Sector of India
Pratyush Kumar, a cofounder of SarvamAI, an LLM maker with an Indic focus, responded to the Perplexity cofounder’s post by pitching his own firm. Aravind is creating sovereign models at @SarvamAI, a brand that combines deep reasoning with proficiency in the Indic language. I hope you will join this expedition! Kumar said. This occurs one day after Srinivas caused a stir in the Indian AI community by stating that Indian businesses had to concentrate on building their models from the ground up rather than optimising pre-existing basic models. Srinivas urged Indian businesspeople to demonstrate to the world that they can develop AI with ISRO-like capabilities, despite pointing out that training thinking models is expensive. He was alluding to the Indian space agency’s economical strategy.
Nitin Konde
