People in India have been busy looking for spice and reasons to gossip in reality shows. For years, the audience celebrated drama, comedy, fights, and sometimes a few melodies. Shark Tank changed it all.
Introducing Shark Tank to the Indian audience was a blessing, not just for the viewers but even for the producers. Businesses in India now have a better platform and chance to showcase their project and get the best investment.
However, pleasing the investors on Shark Tank India isn’t easy. It includes various challenges and a lot of many processes, such as business valuation and a few more.
Here, we will go through a detailed study of calculating the valuation of a business or a company in Shark Tank India.
First things first, What is Shark Tank India? It is a reality show focused on businesses, where entrepreneurs present their projects, business ideas, products, etc. to the investors. If satisfied, the investors, also known as ‘Sharks’ help contestants on the show with a fund.
In return, these Sharks demand a particular stake in the business. This can vary from percentage of ownership and profit share.
This reality show even helps the entrepreneurs, persuading Sharks, to have access to the investor’s experience, suppliers as well as their network.
Do note that on this show, the Sharks are some of the country’s best and most successful businessmen and women.
Offer or counter offer are basically the negotiations between Sharks (investors) and entrepreneurs. The stage comes after the entrepreneurs have pitched the Ask.
Counter Offer usually comes if the investor thinks that the valuation of the business should be less than what has been asked. Similarly, a counteroffer is also something where the entrepreneur believes that the valuation should be greater than the offer presented by the investor.
Equity Share
It is the percentage of the business or company owned by the investor or shareholders.
How Valuation is Calculated in Shark Tank India
There are four rounds of valuation used by entrepreneurs for their companies. These four methods include Revenue Multiple, Future Market Evaluation, Earnings Multiple, and Intangibles of Valuation.
Let’s understand the process more elaborately.
Revenue Multiple
In this method, if the company is valued at INR 10 lakhs in sales, the Sharks (investors) would ask about the annual sales from the previous year. If the entrepreneur states that amount to be INR 2,50,000, it means that the company would take around four years to reach the sales value that has been quoted by the entrepreneur.
In a scenario where the entrepreneur states the sale from the previous year to be INR 75,000, the investors will question the value of INR 10 lakhs.
On the other side, if the company has landed in a sales agreement with a client to sell its product worth INR 5 lakhs the valuation would become more appealing to the Sharks, looking at the sale forecast.
Earnings Multiple
The companies or businesses coming on the reality show Shark Tank India are not publicly traded and hence they do not have the equity share or published earning multiples that can be studied by the investors.
However, the Sharks on the show can look at the company’s profit, and then compare it to the company’s valuation from sales revenue. This is how the Sharks can derive an earning multiple.
Future Market Evaluation
The Future Market Evaluation can be calculated in the exact way the revenue and the earnings multiples are done. Here, the only drawback would be that the numbers are forecasts and their potential inaccuracy.
The Sharks would be asking the entrepreneur about their forecasts for sales and profits in the coming three years. These sharks will then compare the stated numbers by the entrepreneur to the other existing businesses in the same industry.
Intangibles of Valuation
Well, it’s a reality show, which means it feels incomplete to not include some drama, right? So this method is solely present in Shark Tank India for excitement, some tears, and emotions.
Intangibles of Valuation is one aspect of the producers that has made the show this popular.
Here, the Sharks don’t consider the number and monetary value of the company. They simply look at the intangible aspects such as the story of the entrepreneur, dedication, the urge to grow, social responsibility, and more.
Although the numbers are important while investing in a business, these aspects also play a major role in the exercise. Another point that is considered in this method is a brand name in the local area. This is important as the business might have set itself up as a brand synonymous with quality.
Similarly, the experience of the entrepreneur and access to retail outlets for selling products are some other points considered in the ‘Intangibles of Valuation’ method.
Shark Tank India has introduced the Indian audience to brilliant entrepreneurs coming forth with extravagant ideas. Not just that, but now you know the many names in the business world who had struggled and eventually became successful to be on the panel of Sharks on this newly welcomed concept amongst other reality shows.
Valuation of a business is what Shark Tank is famous for. The methods and the rigorous challenges that are studied and considered might have even helped other entrepreneurs in the country.
Even if not in Shark Tank India, Indian entrepreneurs now might have an idea of how to prepare a perfect pitch and have their investors impressed in real life.
FAQs
What steps can entrepreneurs take to prepare themselves for their appearance on Shark Tank India?
To get ready for Shark Tank India, entrepreneurs should engage in meticulous market research, craft a compelling pitch deck, hone their presentation skills through practice, and foresee and address potential questions and objections from the sharks.
What is valuation in Shark Tank India?
Valuation is the total value of the company after the funding round has been closed. It is based on the amount that has been raised against the equity shares.
Who are judges in Shark Tank India 3?
The panel of season 3 includes – Varun Dua (Acko), Amit Jain (CarDekho), Deepinder Goyal (Zomato), Namita Thapar(Emcure Pharmaceuticals), Peyush Bansal (Lenskart), Ritesh Agarwal (OYO Rooms), Anupam Mittal (Shaadi.com – People Group), Aman Gupta (boAt), Azhar Iqubal, (Inshorts), Radhika Gupta, (Edelweiss Mutual Fund), Ronnie Screwvala (UpGrad), and Vineeta Singh (SUGAR Cosmetics).
How valuation is calculated in Shark Tank India?
In Shark Tank India, valuation is calculated by dividing the investment asked by the equity offered. For example, if an entrepreneur asks for ₹1 crore for 10% equity, the valuation is ₹10 crore. Sharks may adjust the valuation based on revenue, market potential, scalability, and the founder’s vision.
How to find valuation of a company?
A company’s valuation is found using methods like:
Revenue Multiples: Multiply annual revenue by an industry-specific factor.
Profit Multiples: Multiply annual profit by a set multiple.
Comparable Analysis: Compare with similar companies’ valuations.
Discounted Cash Flow (DCF): Estimate future cash flows and discount them to present value.
Startup Approach: Divide investment by equity offered.
BookMyShow is currently India’s largest online entertainment ticketing platform spread across 5 countries and operating in almost 60 cities.
It was earlier running under the brand of Big Tree Entertainment Pvt Ltd. BookMyShow was founded by Ashish, Parikshit, and Rajesh in the year 1999. It initially operated as a software reseller for movie tickets but gradually ventured into cloud-based events, sports, and movies. The company’s founders have seen several ups and downs since the inception of the company.
The proposition of selling entertainment tickets online was initially conceptualized by Ashish Hemrajani who started a small venture in his bedroom at the age of 24. Since its establishment, BookMyShow has been on a roller-coaster ride. The company has seen it all; it survived the Dot Com crash in 2007 and sailed through the global financial crisis of 2008.
It managed to sail through tough times and emerged as the hero in the end. BookMyShow has become a platform offering a plethora of choices for its customers. Customers can now book tickets and surf trailers anytime from anywhere. In this article, we will explore the BookMyShow Business Model, BookMyShow Revenue Model, and how BookMyShow earns money.
In the initial days of 1999, a software reseller for VISTA Group, a private company, was founded. This company was started under the Big Tree Entertainment Private Limited Company, known as a parent organization for BookMyShow. It was started by Ashish Hemrajani, Parikshit Dar, and Rajesh Balpand.
Later, when the dot com raised its peak, the company modified by focusing on sales rather than booking through the Internet. This finally dissolved in 2007, and the website – BookMyShow was started as a ticketing aggregator.
BookMyShow has grabbed it all: cultural events, parties, concerts, shows, plays, fairs, and other international events as well. The company also introduced tickets for activities happening in one’s vicinity. Booking has become easier than ever.
The company has been now following an upward trend in growth and innovations. In 2012, the company launched its Android and IOS app and since then, the company has never looked back. More than 30 million downloads have been made for the app version of BookMyShow.
It has over 16 million customers and 10 million+ tickets are sold per month. The funding of $150 million for BookMyShow comes from Accel, Network 18, Stripes, and Saif Partners. Now by looking at the current analytics and data, BookMyShow is the 34th largest website according to Alexa and India’s biggest website for booking tickets.
The app allows its users to check on any event happening in and around them: timings, reviews, availability, trailers, and much more.
BookMyShow Business Model is one of those rare business model examples based on the internet that actually make money as internet handling fees/convenience fees on consumer services.
Book My Show Business Model is very straightforward. It charges convenience fees on every ticket that is booked through the platform. They initially started out as free (zero convenience fee) for consumers and then when it gained popularity they started levying a 10% internet handling fee plus taxes.
How BookMyShow Works?
The working of the BookMyShow Business Model is brilliant. As we know BookMyShow does not charge any extra money on the hall services. So, how does it make the money? It works through the following sources:
Internet Handling/Convenience Fee
Whenever you book a ticket through the BookMyShow website, it charges you an additional price as the Internet Handling/Convenience Fee. This is basically a service fee that you have to pay to the company to provide you with the convenience of booking tickets easily online for any movie or event. This saves you from physically visiting and standing in line at the Ticket Centre.
Therefore, charging the Internet Handling or Convenience Fee becomes the major source of revenue for BookMyShow.
Ticket Sales Commission
BookMyShow is one of the biggest platforms for selling tickets. That’s why it charges a commission fee from the cinema hall and event organizers based on the gross value of total tickets sold from the website BookMyShow. This mainly depends on the popularity of the movie or event and the price of the ticket.
However, to save the little commission charge, the multiplexes or the event organizers put only a fraction of the total tickets on the BookMyShow website. That’s why sometimes when BookMyShow shows “sold out” on any event or movie tickets, it may be available on the counter of multiplexes.
Banner Advertising and paid promotion
BookMyShow often earns through the banner advertising of the upcoming or the latest movie or event. It promotes the show or movie through its banner in the form of advertisements. Also, it earns great revenue from the paid promotion of certain movies and events on its website to catch the eyes of viewers and regular consumers.
BookMyShow banner Advertising
BookMyShow Revenue Model | How Does BookMyShow Make Money
BookMyShow Revenue Model has almost 90% of the market share under the entertainment ticketing sector. It is called the king of all; despite emerging competitors, BookMyShow has managed to retain the leader’s position.
The company has always focused on discounts, especially on movie tickets, and promotes payments through BookMyShow wallets; its wallet is the major source of revenue that contributes about 60% of the total revenue.
The company charges a convenience fee over and above the price of the tickets. This difference is what BookMyShow keeps. As far as non-movie events are concerned, BookMyShow commission comes from the sale of such tickets.
BookMyShow Financials
BookMyShow Financials
FY22
FY23
FY24
Operating Revenue
INR 277 crore
INR 976 crore
INR 1,397 crore
Total Expenses
INR 395 crore
INR 941 crore
INR 1,320 crore
Profit/Loss
Loss of INR 92 crore
Profit of INR 85 crore
Profit of INR 109 crore
BookMyShow Financials
In FY23, BookMyShow had an operating revenue of INR 976 crore, but its total expenses were INR 941 crore, resulting in it making a profit of INR 85 crore. In FY24, the company’s operating revenue increased to INR 1,397 crore, while total expenses were INR 1320 crore. This change led to their profit rising to INR 109 crore. BookMyShow turnover or operating revenue for FY24 was INR 1397 crore.
BookMyShow follows a strategy of no refund after payment. It also has a source of revenue from non-ticketing means. Due to its large internet audience, it has the first-mover advantage and promotes new artists and their offerings, therefore catching up a significant part of the revenue from promotional methods as well.
BookMyShow has certain sources of revenue for the company. Its sources are:
Revenue through Tickets
On the selling of tickets for any movie or event, BookMyShow gets a commission from the organizer or cinema hall. This is a major source of revenue that comes to around 60% of total revenue. The commission comes around as:
From the additional charges of internet handling and gap on booking tickets.
Convenience fee over the pricing of tickets.
Commission through the ticket booking.
Revenue through Other Events
When a company wants to promote its new artwork, film, or artists, they sign BookMyShow for its promotion through its massive page views.
BookMyShow offers tickets from all categories and shows such as sports, dramas, plays, tours, and many more. You can search through the categories and find your interest-based show. Once the ticket is booked, it cannot be canceled or postponed.
The business thrived despite no investor support from 2002 to 2006. After the Dot Com boom settled, the Indian market was revamped with better internet services, credit, and debit card facilities, and infrastructure setup. The number of multiplexes across India also proliferated. With a favorable scenario in the backdrop coupled with BookMyShows’s promising business plan, investors were willing to put their money in BookMyShow.
BookMyShow has raised a total funding of over $224.5 million in 6 rounds. In the latest round of funding raised in January 2019, Singapore-based Jungle Ventures invested an undisclosed amount in Bigtree Entertainment Singapore Pte Ltd. (owned by BookMyShow SEA).
BookMyShow started operating in South East Asia in 2016 with its headquarters in Indonesia. With funding from Jungle Ventures, the company is now planning to shift its headquarters to Singapore. As confirmed by BookMyShow SEA’s CEO Kenneth Tan, the funds raised will be utilized to enhance the technological operations of BookMyShow SEA and to efficiently cater to the increasing number of users in the Southeast Asian region.
Sources say that before raising $100 million in funding from ‘TPG Growth‘ in July 2018, BookMyShow was valued at about $750 million. With the boost from TPG Growth, BookMyShow now hovers at around $850 million.
BookMyShow recently announced the release of its own video streaming platform. This launch can be a great success and a big revenue stream.
FAQs
What is BookMyShow?
Bigtree Entertainment’s BookMyShow is India’s largest entertainment ticketing website. Headquartered in Mumbai, it is the only destination for movie and non-movie options like events, plays, and sports.
What is the business model of BookMyShow?
BookMyShow operates on a commission-based model. It earns revenue by charging a fee on every ticket sold for movies, events, and shows. Additional income comes from advertising, partnerships, and convenience fees charged to users.
How much does Bookmyshow charge for listing?
BookMyShow charges sellers a listing fee of Rs 20 for the first book listing and Rs 10 for each additional book listing.
How BookMyShow earns money?
BookMyShow makes money through the following sources:
Ticketing revenue
Non-ticketing revenue
Is refund available in BookMyShow?
Yes, Select ‘Purchase History’ and choose the booking you wish to cancel and tap on ‘Cancel Booking’ available on the bottom-right of the screen. Then Refund to BMS cash will be credited within 4 hours and in case of original payment source, funds will reflect within 5-7 working days.
What are BookMyShow event listing charges in India?
BookMyShow charges a convenience fee for booking tickets. It also adds an internet handling fee of ₹5–25 per ticket, depending on the ticket price. Taxes are applied on the convenience fee, along with any government taxes.
How much commission does BookMyShow take?
BookMyShow earns revenue through various channels, including commissions from ticket sales, convenience fees, advertising, and partnerships. The specific commission rates charged to event organizers and venues are not publicly disclosed and can vary based on factors such as the type of event, venue, and location. Additionally, BookMyShow charges customers a convenience fee and an internet handling fee per ticket, which can range from ₹5 to ₹25, depending on the ticket price. These fees contribute to the company’s overall revenue model.
Does BookMyShow take extra money?
Yes, BookMyShow charges extra fees in addition to the ticket price, such as commission fee, internet handling fee, and taxes.
What is BookMyShow profit?
BookMyShow earned a profit of INR 109 crore in 2024.
Titan Company Limited, a pioneer in lifestyle retail, has firmly established itself as a leader in multiple verticals, blending innovation, craftsmanship, and customer-centric strategies.
Born from the Tata Group’s vision, Titan has grown from a watch manufacturer to a diversified powerhouse with a presence in jewelry, eyewear, accessories, and technology. With its commitment to redefining industries, Titan continues to embrace modernity while upholding traditional values, appealing to a broad demographic of consumers. The company’s innovative approach to design, backed by robust technological advancements, has led to iconic product lines and memorable campaigns that resonate with customers globally.
This post provides you with information about How Titan Company Limited started, its Startup Story, History, Tagline, Logo, Business Model, Funding, Revenue, Growth, and more.
Beginning its journey in 1984 with just one product, today, Titan stands as a powerhouse in India’s lifestyle industry, employing over 8,000 people directly and supporting around 38,000 individuals across its ecosystem. With 16 iconic brands and a sprawling network of over 2,000 retail stores, Titan continues to pursue growth that is both profitable and responsible, keeping its stakeholders at the heart of its mission.
Known as one of India’s most admired and respected companies, Titan leads the way in Jewellery, Watches, and eye care, earning trust through exceptional brands and customer-centric experiences. But they didn’t stop there—Titan has ventured into emerging categories like Wearables, Indian Dress Wear, Fragrances & Fashion Accessories. By understanding and anticipating customer preferences, they have carved a distinct identity in these competitive lifestyle segments.
India’s jewelry industry continues to shine, boasting a remarkable market size of USD 85.52 billion as of 2023. This growth trajectory is further fueled by key investments, such as the Malabar Group’s announcement in September 2023 to invest INR 1,000 crore (US$ 120 million) by 2025.
Foreign Direct Investment (FDI) has also played a significant role in shaping the sector. Between April 2000 and March 2024, cumulative FDI inflows in diamond and gold ornaments reached an impressive US$ 1,276.52 million.
India’s export numbers reflect its global dominance in the gems and jewelry space. Between April and June 2024, exports hit US$ 6.87 billion, with June alone contributing US$ 1.91 billion.
Globally, India holds the top position in exporting cut and polished diamonds. It also ranks second in gold jewelry, silver jewelry, and lab-grown diamonds, showcasing its stronghold across diverse jewelry categories.
Titan Company Limited – Founders and Team
Xerxes Desai – The Visionary Founder
Xerxes Desai – Founder, The Titan Company
Xerxes Desai, Titan’s first Managing Director, played a pivotal role in shaping the company’s legacy. A graduate of Elphinstone College and Oxford University, Desai joined Tata Administrative Services in 1961. During the 1970s, he proposed the idea of a watchmaking venture to Tata, which ultimately led to the founding of Titan in 1986 as a joint venture between Tata and the Tamil Nadu Industrial Development Corporation (TIDCO).
Desai’s visionary leadership extended beyond watches. He also established Tanishq, now one of India’s most iconic jewelry brands. His innovative thinking and ability to align strategy with opportunity laid the foundation for Titan’s success. Desai passed away in 2016.
Mr. C. K. Venkataraman – The Dynamic Managing Director
C. K. Venkataraman – Managing Director, The Titan Company
Mr. C. K. Venkataraman, Titan’s current Managing Director, brings over three decades of expertise in driving growth and innovation in the lifestyle industry.
Growing up in Coimbatore, Tamil Nadu, Mr. Venkataraman pursued a Bachelor’s in Mathematics before earning his PGDM from IIM Ahmedabad in 1985. He joined Titan in 1990 as Advertising Manager and excelled in various roles in the Watches Division for 14 years. Transitioning to the Jewellery Division in 2005, he headed the division for another 14 years, steering it to new heights.
In October 2019, he was appointed Managing Director of Titan, leading the company with a focus on excellence and strategic growth. Acknowledged for his exceptional leadership, Mr. Venkataraman was honored as the Business Leader of the Year at the Corporate Excellence Awards.
Ms. Suparna Mitra – The Transformative CEO of Watches and Wearables
Suparna Mitra – CEO, Titan Watches and Wearables
Suparna Mitra, CEO of the Watches and Wearables Division, is a trailblazer with three decades of experience in lifestyle and retail marketing. An electrical engineer from Jadavpur University and an MBA from IIM Calcutta, she began her career as a management trainee at Hindustan Unilever Limited before joining Titan.
In her first stint with Titan, Suparna held various marketing roles, both domestically and internationally. Her career then took her to Talisma Corp. as Director of Product Marketing and Arvind Brands Ltd. as Business Head for Lee. Rejoining Titan in 2006, she served as the Global Marketing Head for Titan, Regional Business Head for South India, and Chief Sales and Marketing Officer for Watches and Wearables.
Now leading Titan’s Watches and Wearables division, Suparna drives innovation and growth, particularly in the post-pandemic era. She also contributes to broader industry development, serving on the Board of Governors for IIM Kozhikode and previously on the board of Tata Power Solar.
Titan Company Limited – Startup Story
Xerxes Desai: The Pioneer Behind Titan’s Legacy
Xerxes Desai’s journey is one of vision, perseverance, and resilience, as he shaped Titan into a brand that became synonymous with aspiration for Indian households. After graduating from Elphinstone College and Oxford University, Desai joined Tata Administrative Services in 1961, where he worked across several Tata Group companies like Tata Press and Taj Hotels.
The idea for Titan first came to Desai in the 1970s. At the time, watches were either smuggled, state-supplied by HMT, or simply unavailable in the open market. Owning a watch involved a bureaucratic process: submitting an application, receiving departmental approval, and finally picking up the watch weeks later.
Desai recalled this scarcity vividly: “One had to write an application to HMT to get a watch. You couldn’t just buy it. It was a long process that reflected the frugal and restrictive times we lived in.”
Desai’s proposal to J. R. D. Tata in the late 1970s to start a watchmaking company was well-received. However, navigating the bureaucratic and regulatory hurdles of a closed economy delayed the project’s fruition until 1986. With support from the Tamil Nadu Industrial Development Corporation (TIDCO), Titan Watches Limited was formally launched in Hosur.
Overcoming Challenges to Build an Icon
Desai’s vision faced numerous obstacles, from struggling to find collaborators to the Swiss abruptly curbing exports of crucial components before meetings. India’s closed economy posed another challenge, as government approvals for manufacturing and marketing were entangled in red tape.
“One couldn’t start making and marketing watches unless we manufactured the movement—the heart of the watch. With foreign imports banned, we had to search relentlessly for a partner,” Desai shared.
The breakthrough came in the mid-1980s, as Prime Minister Rajiv Gandhi’s government revived Titan’s stalled application, ushering in a new era for Indian enterprise. By the time liberalization policies were rolled out in 1991, Titan had already carved a niche, introducing India to its first quartz watches.
Launched in Chennai on July 26, 1984, Titan Watches Limited quickly gained attention for its superior quality and innovative designs. By 1987, Titan’s first print advertisement showcased its wide range of watches, marking its entry into the Indian market with a bold statement.
The 1990s saw Titan emerge as a household name, symbolizing aspiration and modernity. Exports began in 1991 and by the mid-1990s, Titan was a trusted brand both domestically and internationally. Today, Titan stands as the world’s fifth-largest manufacturer of timepieces, continuing the legacy of precision, innovation, and design excellence that Desai set in motion.
To shape transformative experiences that inspire individuals and leave a lasting positive impact on the communities and industries they serve.
Mission
Titan thrives on a foundation of bold innovation and a values-driven culture. Their goals are to:
Continuously push the boundaries of creativity.
Achieve excellence in every performance metric.
Maintain world-class standards in all aspects of their operations.
With these principles, Titan goes beyond creating products—it delivers experiences that redefine expectations and drive meaningful change.
Titan Company Limited – Name, Tagline and Logo
Titan Company Logo
Name: Titan Company Limited
Tagline: “Be More”The remarkable success of Titan Company Ltd. reflects their unwavering dedication to excellence and their relentless drive to exceed customer expectations, perfectly encapsulated in their slogan, ‘Be More.’
Logo: The Titan logo is aquamarine and white, with the word “Titan” in grey on a white background.
Rebranded as Titan Company Limited, the organization introduced its new logo, the ‘Titan Star.’ This emblem symbolizes their dedication to fostering innovation, nurturing talent, delivering value, and delighting customers while upholding the highest global standards.
Titan Company Limited – Business Model
Titan Company Limited operates with a customer-centric business model designed to cater to diverse consumer needs. Their strategy focuses on several key pillars:
Diverse Product Portfolio: From watches and eyewear to wearables, Indian ethnic wear, fragrances, and accessories, Titan offers an extensive range of products to serve a variety of customer preferences.
Expansive Retail Network: With a robust presence across exclusive brand outlets, multi-brand stores, and e-commerce platforms, Titan ensures seamless access to its products.
Commitment to Quality: Renowned for delivering value for money, Titan prioritizes superior craftsmanship and reliable quality in all its offerings.
Exceptional Customer Support: By offering comprehensive product assistance and after-sales services, Titan builds lasting relationships and cultivates brand loyalty.
Innovative Research & Development: Continuous investment in R&D drives product innovation, ensuring Titan stays ahead in the lifestyle and technology markets.
Strategic Collaborations: Partnerships with designers and industry experts enable Titan to offer unique and trendsetting products.
Sustainability Efforts: Titan emphasizes eco-conscious practices, including renewable energy use, water recycling, and minimizing reliance on fossil fuels.
Social Responsibility: Safety and community-focused initiatives remain at the heart of Titan’s corporate ethos, reflecting its commitment to making a positive impact.
This comprehensive approach solidifies Titan’s position as a leader in the lifestyle industry, combining innovation, responsibility, and customer satisfaction.
Titan Company Limited – Tanishq, Titan Watches, Titan Eye+
Jewelry Business (Tanishq)
The jewelry segment, led by Titan’s flagship brand Tanishq, is the company’s primary revenue generator, contributing approximately 82% of total earnings. Tanishq is a trusted name, offering an extensive range of jewelry for diverse occasions, from weddings and festivals to daily wear. With a strong focus on high-value gold and diamond pieces, Tanishq caters to the premium market. Sub-brands like Mia target workwear and everyday jewelry needs, while Zoya specializes in luxury and bespoke offerings, addressing various consumer preferences.
Watches
Historically the foundation of Titan, the watches division now accounts for about 13% of the company’s revenue. It encompasses a diverse portfolio of brands, including the affordable Sonata, youth-centric Fastrack, elegant Titan Raga, and premium collections like Xylys and Nebula. Titan has also expanded into smartwatches and fitness wearables through collaborations with global tech firms, staying relevant in a tech-driven market. While the segment’s revenue share has decreased, watches continue to enhance Titan’s brand identity both in India and internationally.
Eyewear (Titan Eye+)
The eyewear division, branded as Titan Eye+, contributes around 2% of revenue. It offers a variety of products such as prescription glasses, sunglasses, and contact lenses. With growing consumer interest in eyewear as both a functional and fashion accessory, this segment has been experiencing consistent growth, even though it represents a smaller part of Titan’s overall portfolio.
Titan Company Limited – Challenges Faced
E-commerce Order Processing and Fulfillment
Titan Company faced significant hurdles in managing the seamless processing of orders through its backend systems. Specifically, the integration between the order management system (OMS) and the warehouse management system (WMS) created inefficiencies in fulfilling customer orders placed across various online marketplaces and websites. These complexities in handling diverse digital touchpoints impacted the efficiency of their operations. To address these challenges, Titan sought assistance from Qualitest, leveraging their expertise to design and implement a robust testing strategy that ensured end-to-end (E2E) functional flows on their new digital platform were reliable and scalable.
Economic and Geopolitical Challenges in FY 2023-24
The fiscal year 2023-24 presented its own set of challenges, including geopolitical tensions, rising gold prices, and persistent inflation, all of which dampened consumer sentiment. These macroeconomic factors had the potential to derail growth; however, Titan countered these obstacles by delivering compelling customer value propositions across its various business verticals. By staying attuned to consumer needs and maintaining an unwavering commitment to excellence, Titan successfully navigated these headwinds while delivering a robust financial performance.
Titan Turbo Ambition and Strategic Vision
In the fiscal year 2022-23, Titan’s leadership undertook its periodic five-year strategic planning exercise, an approach that has guided the company for over two decades. This forward-thinking engagement led to the articulation of the Titan Turbo Ambition and Strategy, aimed at setting new benchmarks of excellence across all its business verticals and subsidiaries. This bold vision was designed to elevate Titan to the next level, pushing the boundaries of innovation, operational efficiency, and customer satisfaction in an increasingly competitive market. The challenges and strategic focus outlined in this plan reflect Titan’s commitment to sustained growth and leadership in the industry.
Titan Company Limited – Investments
Titan drives growth and innovation through strategic investments across its brands, emerging businesses, and global markets.
Date
Organization Name
Funding Round
Amount
Sept 9, 2024
T1 (aka t1 Protocol)
Pre-Seed Round
$2.5M
Aug 9, 2023
CaratLane
Secondary Market
Rs. 46.2B
March 11, 2022
Great Heights
Corporate Round
$20M
Nov 21, 2017
KaHa Pte
Venture Round
$4.5M
Jul 20, 2015
Innoviti
Series A
Rs.300M
Titan Company Limited – Mergers and Acquisitions
Titan strengthens its portfolio through strategic mergers and acquisitions, enhancing its market presence and diversifying its offerings.
Acquiree Name
Date
Price
Noise
Mar 9, 2022
—
Hug Innovations
Feb 11, 2020
—
CaratLane
May 6, 2016
—
Titan Company Limited – Growth
Titan’s growth is driven by relentless innovation, strategic expansion, and a commitment to excellence across its diverse portfolio.
Fiscal Year
Operating Revenue
Total Expenses
Profit-Loss
FY22
INR 27,210 crore
INR 25,037 crore
INR 2,173 crore
FY23
INR 38,270 crore
INR 38,270 crore
—
FY24
INR 47,600 crore
INR 44,298 crore
INR 2,816 crore
Titan Company Limited Financials
In FY22, Titan Company Limited reported an operating revenue of INR 27,210 crore, total expenses of INR 25,037 crore, and a profit of INR 2,173 crore. In FY23, revenue increased to INR 38,270 crore, matching the total expenses, resulting in no profit or loss. By FY24, revenue rose further to INR 47,600 crore, with expenses at INR 44,298 crore, achieving a profit of INR 2,816 crore.
Titan Company Limited – Advertisements and Social Media
Campaigns – #MOMentsTogether
#MOMentsTogether Campaign – Titan
Titan’s #MOMentsTogether campaign encourages kids to give moms a break from endless questions by using Titan’s Ask A-आई Chatbot. The campaign created a buzz with playful posts of moms holding signs demanding “time off,” followed by reels, memes, and user-generated content. Prateek Gupta, Titan’s brand communication head, emphasized the campaign’s message: “Celebrate moms by giving them a much-needed breather from constant responsibilities.”
#IDidIt Campaign
Tanishq #IDidIt Campaign
Tanishq’s #IDidIt campaign, in collaboration with the Jaipur Literature Fest, celebrates women’s success stories. Women across India are invited to share their journeys, with select stories featured in an anthology introduced by publisher Urvashi Batalia. Launched on Tanishq’s social media, the campaign highlights empowerment, independence, and resilience, offering women a platform to inspire and celebrate their achievements.
Titan and its brands have garnered prestigious accolades, including sustainability rankings, product design awards, and recognition as India’s most desired and globally acclaimed retail brands. Some of the many are as follows:
2014
Best Employer for National Award for the Empowerment of Persons with Disabilities by the Government of India.
Ranked among Asia’s 100 Most Sustainable Corporations by Channel News Asia Sustainability Ranking.
Red Dot Award for “Best Product Design of the Year – Watches & Jewellery” for Skeletal Edge.
Bronze Medal at the Indian Effies for Fastrack.
2023
Ranked as “India’s Most Desired Brand” by TRA’s Most Desired Brands Report.
Tanishq won the Global Awards for Excellence in Quality Management & Leadership by the World Quality Congress.
Tanishq became the first Indian brand to enter the top 30 Best Retail Brands in the Asia Pacific, ranking #13, according to Interbrand.
Titan Company Limited – Future Plans
Titan’s Expansion Plans
Titan has ambitious plans to expand its retail network both in India and internationally. Its flagship jewelry brand, Tanishq, will open 45 new stores across India and six stores each in the United States and the Middle East. Meanwhile, CaratLane is set to grow its presence to 425 stores in over 200 towns. Mia, another Titan brand, aims to double its revenue within the next three years, reflecting its focus on scaling operations.
Growth in Emerging Businesses
Titan plans to triple the volumes of its emerging businesses, which include wearables, women’s handbags, and ethnic wear. Additionally, Titan is set to launch its exclusive ladies’ handbag brand, Earth, later this year, further diversifying its portfolio.
Jewelry and Eyewear
The company is aggressively expanding its jewelry footprint. In its eyewear division, Titan is targeting a compounded annual growth rate (CAGR) of over 20% in the coming years, demonstrating its commitment to strengthening its presence in this segment.
Innovation and Sustainability
On the sustainability front, the company is improving its Environmental, Social, and, Governance (ESG) performance through initiatives focused on energy efficiency, a circular economy, and responsible partnerships.
Titan Engineering & Automation Limited (TEAL)
Titan’s technology and manufacturing subsidiary, TEAL, is working towards establishing a significant niche for itself on the global stage. This underscores Titan’s commitment to technological advancements and innovation across its business verticals.
FAQs
What are the brands that come under Titan Company Limited?
Titan Company Limited has Tanishq, Titan Watches, and Titan Eye+ under its umbrella.
Who is the founder of Titan Company Limited?
Xerxes Desai founded Titan Company Limited in 1984.
What was the revenue of Titan Company in 2024?
Titan Company Limited generated an operating revenue of INR 47,600 in FY24.
Vishal Mega Mart, one of India’s leading value retail chains, has emerged as a dominant player in the affordable retail sector by focusing on providing quality products at competitive prices. With a robust presence across 30 states and union territories, the company has built a reputation for catering to the evolving needs of India’s middle- and lower-middle-income groups. Its extensive product portfolio, ranging from groceries and personal care to apparel and electronics, ensures that customers can find everything they need under one roof. The company’s focus on semi-urban and rural markets has also allowed it to tap into underserved regions, further driving its growth. Recent initiatives, such as piloting a quick commerce model and enhancing its e-commerce platform with two-hour delivery, highlight its commitment to adapting to modern retail trends.
With aggressive expansion plans and a strong emphasis on customer satisfaction through innovative loyalty programs and targeted advertising, Vishal Mega Mart is well-positioned to sustain its leadership in value retail. Its impressive stock market debut underscores investor confidence in its growth trajectory and long-term potential.
This post provides you with information about How Vishal Mega Mart started, its Startup Story, History, Tagline, Logo, Business Model, Funding, Revenue, Competitors, Growth, and more.
With over 400 stores nationwide, it’s a shopping hub that’s hard to miss. What began in 2001 as a small initiative by Ram Chandra Agrawal, offering primarily ready-made clothing, has transformed into a retail giant. Vishal Mega Mart is one of India’s largest retail chains offering a wide range of products, including clothing, groceries, household items, electronics, and more, at affordable prices. It operates as a value-focused hypermarket, targeting middle-income customers. With numerous outlets across India, Vishal Mega Mart aims to provide quality goods at competitive prices, catering to both urban and semi-urban areas.
Vishal Mega Mart – Industry
Market Size
India’s fashion retail sector was valued at a whopping INR 6 trillion in 2022. By 2027, this figure is projected to nearly double, reaching over 11 trillion rupees.
Leading Players
Aditya Birla Fashion & Retail Limited (ABFRL) leads the pack as India’s first billion-dollar fashion retailer. With a vast retail footprint of 11.9 million square feet, it has set the benchmark for large-scale operations in the industry.
Emerging Trends and Challenges
Performance Struggles: Established brands are grappling with inconsistent growth and struggling to maintain their dominance.
Competition from New Entrants: Digitally native brands, designed to cater to evolving consumer preferences, are outpacing traditional players.
Fast Fashion’s Boom: Fast fashion now makes up 60% of mass-market sales, climbing from 56% pre-pandemic, signaling a growing demand for trendy, affordable clothing.
Tier II and III Cities Rising: Organized retail is rapidly expanding into smaller cities, unlocking untapped markets and boosting growth.
Changing Urban Preferences: Urban shoppers are increasingly prioritizing experiences and luxury goods, shifting their spending away from traditional apparel purchases.
Ram Chandra Agarwal is the Chairman & Managing Director of V2 Retail Ltd. He is a trailblazing entrepreneur whose vision and leadership have left an indelible mark on India’s retail landscape. Starting his business journey in 1994 with Vishal Garments in Kolkata, Agarwal laid the foundation for what would become a retail revolution. By 1997, he had established Vishal Retail and in 2001, he took on the role of Chairman and Managing Director, guiding the company through its transformative journey.
Recognized as a pioneer in value retailing, Agarwal introduced the concept to India, reshaping how millions shop. With over 25 years of entrepreneurial experience, he is celebrated for challenging conventional wisdom and spotting untapped opportunities with remarkable agility.
For his groundbreaking contributions, Agarwal has been honored with numerous awards, including recognition from Ernst & Young, underscoring his role as a visionary leader and game-changer in the business world. Under his leadership, V2 Retail Ltd continues to thrive, embodying the innovative spirit he brought to the industry.
Vishal Mega Mart – Startup Story
Ramchandra Aggarwal’s story is one of grit, ambition, and relentless determination. It all started in 1986 when he borrowed money to open a humble photostat shop. While it wasn’t much, it was a beginning. His entrepreneurial journey soon took a turn as he ventured into the clothing business, managing a small shop in Kolkata for 15 years.
Driven by a bigger vision, Ramchandra relocated to Delhi in 2001 to lay the foundation for Vishal Retail. His dream of creating a retail empire took shape and what began as a single store quickly blossomed into Vishal Mega Mart—an iconic name in India’s retail landscape. The company even made its debut on the stock market, signifying a major milestone.
However, success didn’t come without its trials. The 2008 stock market crash brought his business to the brink, plunging him into debt and testing his resilience. Yet, Ramchandra refused to give up. With unwavering determination, he rebuilt the business, transforming it into an INR 1000 crore retail giant.
Ramchandra’s journey, from running a small shop to leading one of India’s largest retail brands, is an inspiring testament to the power of perseverance and vision.
Vishal Mega Mart’s mission is to make aspirations affordable for everyone. By offering an extensive selection of the latest fashion, general merchandise, and grocery items at competitive prices, the brand aims to cater to the diverse needs of its customers. Every product on the shelf reflects a commitment to delivering value without compromising on quality, ensuring that every shopper enjoys a fulfilling and budget-friendly experience.
Vision
Vishal Mega Mart envisions itself as the ultimate destination for quality and value. With a focus on providing customers with a unique shopping experience, the company strives to blend affordability with excellence. Through innovation and an unwavering dedication to customer satisfaction, it aims to redefine retail in India and set new benchmarks in the industry.
Vishal Mega Mart – Name, Tagline and Logo
Vishal Mega Mart Logo
Vishal Mega Mart Tagline: “Making Aspirations Affordable.” Vishal Mega Mart ensures that every shopper can fulfill their needs and desires while enjoying great value for their money. This promise has made it a trusted destination for millions across India.
Vishal Mega Mart – Business Model
Vishal Mega Mart thrives on a discount retail model, offering quality products at low prices by purchasing in bulk and passing on the savings to customers. This approach focuses on high-volume sales and affordability, making it a go-to destination for budget-conscious shoppers. Here are the key elements of its business model:
Diverse Product Range: Catering to a variety of needs, Vishal Mega Mart offers everything from groceries and personal care products to clothing, home essentials, and electronics. This one-stop-shop concept ensures convenience for customers by fulfilling multiple requirements under one roof.
Private Label Strategy: The retail chain manufactures and sells its own private-label brands exclusively in its stores. These products are priced lower than national brands, helping customers save money while boosting the company’s profit margins.
Focus on Non-Metro Markets: A significant part of Vishal Mega Mart’s success lies in targeting smaller cities and rural areas. By tapping into the increasing purchasing power of these regions, the brand has established itself as a key player in underserved markets.
Franchise and Ownership Model: Vishal Mega Mart operates through a mix of company-owned and franchise stores. This hybrid model allows for rapid expansion while minimizing capital investment, enabling the brand to grow its footprint efficiently across India.
With over half of its revenue coming from general merchandise, Vishal Mega Mart’s business strategy combines affordability, variety, and accessibility, ensuring its strong presence in the competitive retail market.
Vishal Mega Mart – Revenue Model
Vishal Mega Mart stands out in the retail sector due to its focus on high-margin segments, with general merchandise (GM) and apparel contributing approximately 72.5% of its total sales. This focus contrasts sharply with competitors like Avenue Supermart, which derives only 23.5% of revenue from these categories.
The emphasis on general merchandise and apparel works to Vishal Mega Mart’s advantage, as these segments typically deliver higher profit margins compared to groceries, food, and other fast-moving consumer goods (FMCG). This strategic revenue mix not only enhances the company’s profitability but also positions it well for long-term growth. By capitalizing on these high-margin categories, Vishal Mega Mart can maintain a competitive edge and drive future success in an increasingly crowded retail market.
Quick commerce is disrupting the retail landscape, fueled by the demand for instant delivery and convenience. Platforms like Zomato and Swiggy Instamart are expanding aggressively, introducing services such as large-order deliveries, white goods, and deep discounts. While Vishal Mega Mart’s reliance on in-house brands and high-margin items like apparel provides a buffer, the company must closely monitor this sector to adapt and stay competitive as consumer preferences shift rapidly toward speed-driven shopping experiences.
Slowing Sales Growth in Modern Trade
The growth of modern trade sales in groceries, personal products, and home care items has slowed significantly, marking a four-year low. This decline is attributed to a shift in consumer behavior toward online channels, especially quick commerce, and the closure of hundreds of stores by retailers aiming to boost profitability. With modern trade sales growing only 3.2% in July-August compared to 24% the previous year, Vishal Mega Mart faces pressure to navigate this challenging environment while maintaining its growth trajectory.
Balancing Traditional and Evolving Models
While quick commerce poses a significant challenge, Vishal Mega Mart operates on a unique model focused on affordability and high-margin products. This model may shield it from the immediate threats of quick commerce; however, the company must ensure it evolves in tandem with market trends. Striking the right balance between its traditional strengths and the need for innovation will be critical to sustaining its leadership position in the competitive retail space.
Vishal Mega Mart – Growth
Vishal Mega Mart has steadily grown into one of India’s leading retail chains, driven by strategic expansions, value-driven offerings, and a strong focus on affordability.
Fiscal Year
Operating Revenue
Total Expenses
Profit/Loss
FY22
INR 7586 crore
INR 7155 crore
INR 431 crore
FY23
INR 7618.7 crore
INR 7188.36 crore
INR 321.27 crore
FY24
INR 8911.9 crore
INR 8324 crore
INR 461.90 crore
Vishal Mega Mart Financials
In FY22, the company reported an operating revenue of INR 7,586 crore, total expenses of INR 7,155 crore, and a profit of INR 431 crore. In FY23, revenue slightly increased to INR 7,618.7 crore, with expenses rising to INR 7,188.36 crore, resulting in a reduced profit of INR 321.27 crore. By FY24, revenue grew significantly to INR 8,911.9 crore, while expenses reached INR 8,324 crore, leading to a profit of INR 461.90 crore.
Vishal Mega Mart – Advertisements and Social Media Campaigns
Vishal Mega Mart – Advertising Strategy
Advertising Strategy
Vishal Mega Mart (VMMG) places significant emphasis on advertising across multiple platforms to enhance brand visibility and customer engagement:
Print Media: Long-term advertisements in newspapers such as those under BCCL (Times Group) are utilized. This includes a five-year agreement covering print publications and other media outlets like the Internet, radio, and television.
Television: Campaigns featuring Tina Parekh aim to reach a broad audience.
Outdoor Advertising: Billboards and roadside advertisements enhance visibility in strategic locations.
Agency Collaboration: Cheil India has been engaged in integrated advertising solutions, offering expertise in creative, media, data, activation, and retail strategies.
Promotional Activities
Vishal Mega Mart employs a robust category management system (VRPL) to optimize promotions and ensure customer satisfaction:
Weekly Promotions: Regular promotional schemes help drive foot traffic and boost sales.
Slow Mover Strategy: Special promotional plans are created to improve sales of slow-moving inventory.
Store Layout and Visual Merchandising: The store layout, product positioning, and merchandise displays are strategically designed to attract customers and improve the shopping experience.
Co-Branded Card
In collaboration with SBI Cards & Payment Services Private Limited, Vishal Mega Mart introduced a co-branded card to enhance customer loyalty. Key features include:
An INR 250 discount voucher upon signing up
Reward points for every INR 100 spent
Sales Promotion Techniques
Vishal Mega Mart uses various promotional strategies to appeal to value-conscious consumers:
Buy-One-Get-One (BOGO): Offers and combo packs are frequently employed to boost sales.
Psychological Discounting: Pricing items at INR 99 or INR 49 influences customer perception of affordability.
Special Event Pricing: Discounts and special deals are rolled out during festivals like Diwali, Christmas, and New Year.
E-Commerce
Vishal Mega Mart’s eCommerce platform offers added convenience with features such as:
Two-hour delivery service
Flexible time slots to accommodate customer preferences
This multifaceted approach ensures Vishal Mega Mart remains competitive and relevant in the dynamic retail landscape.
Vishal Mega Mart – Awards and Achievements
Vishal Mega Mart has consistently earned accolades for its innovative loyalty programs and commitment to societal change, showcasing its excellence in the retail industry.
International Loyalty Awards
2024: Won the “Best Loyalty Programme of the Year – Food Retail and Non-Food Retail” category.
2023: Named the “Regional Winner Asia,” covering the Indian subcontinent and regions to the east.
Singapore’s Loyalty and Engagement Awards (2023)
Secured Gold in the category “Best Loyalty Strategy – Retail,” highlighting its customer engagement excellence.
Jagran Achiever Awards
Recognized for “Excellence in Value Retail – Bringing Societal Change through Advertising,” reflecting its impact on community welfare and value-driven retail strategies.
NCPDEP – Mindtree Hellen Keller Award (2020)
Honored for its efforts in creating an inclusive environment, showcasing a strong commitment to diversity and social responsibility.
Vishal Mega Mart – Competitors
Vishal Mega Mart faces competition from retailers that cater to similar value-conscious customers in India’s retail market, like the following:
Store Expansion: Vishal Mega Mart is aggressively expanding its footprint, with plans to add 80–100 stores annually. While already present in 30 states and union territories, the company aims to deepen its presence in Tamil Nadu, Gujarat, and Maharashtra.
Quick Commerce: The company is piloting a quick commerce initiative within a 7–10 kilometer radius of its stores. Customers can log into the Vishal Mega Mart app to view and purchase items directly from the inventory of their nearest store.
Affordable Retail: Catering to India’s middle- and lower-middle-income groups, Vishal Mega Mart emphasizes affordability by aligning its product offerings with consumer aspirations and leveraging its private-label brands to meet market demands effectively.
Stock Market Debut: Vishal Mega Mart made a stellar debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on December 18, 2024, with shares listing at INR 110 on the BSE—a 41% premium to the issue price of INR 78—and at INR 104 on the NSE. The company reported a profit of INR 4.6 billion ($54 million) on revenue of INR 89.1 billion for the fiscal year ending March 2024.
FAQs
What is Vishal Mega Mart?
Vishal Mega Mart is one of India’s largest retail chains offering a wide range of products, including clothing, groceries, household items, electronics, and more, at affordable prices.
Who is the founder of Vishal Mega Mart?
Ram Chandra Agarwal founded Vishal Mega Mart in 2001.
Who are the main competitors of Vishal Mega Mart?
The main competitors of Vishal Mega Mart include Reliance Retail, DMart, Trent, and others.
What was the revenue of Vishal Mega Mart in 2024?
Vishal Mega Mart earned an operating revenue of INR 8912 crore in 2024 at the profit of INR 462 crore.
The third cohort of India’s women-focused fintech program was jointly launched by the Reserve Bank Innovation Hub (RBIH) and IIMA Ventures. Fintech innovators can use SwanariTM TechSprint 3.0 as a platform to design, create, and scale solutions that cater to the particular financial needs of women. According to Aakarsh Naidu, head of fintech and startups at the Reserve Bank Innovation Hub, the cohort seeks to amplify effective solutions that not only improve women’s financial inclusion but also propel their economic empowerment by encouraging innovation and empowering fintech firms.
Through financing awards, professional mentoring, and other support, the initiative gives companies the chance to develop, improve, and scale their gender-inclusive financial solutions. Applications from entrepreneurs offering gender-focused financial solutions are presently being accepted into the program. In addition to having pre-seed to pre-Series A funding or quantifiable traction, eligible entrants must have a minimal viable product.
Collaboration Aims to Strengthen Fintech Startups
RBIH and IIMA Ventures are working together to support fintech companies in their efforts to develop solutions that will support women’s financial inclusion in India. 556 million women are intended to be impacted by the initiative. Startups like Kaleidofin, Merakal, Vitto, Anniyam Payment, MaksPay, and Manipal Business Solution are among the previous program winners. The fintech industry has seen numerous advancements in recent years. For example, digital payment aggregator PayU and Amazon Web Services (AWS) introduced inFINity 2.0, a fintech-focused accelerator program for early-stage Indian startups, in December.
Other Investments Porgammes
The business incubator India Accelerator launched its Cohort25 for IT startups, with intentions to invest $8–10 million in the flagship initiative. Accel, a multi-stage venture capital firm that has unicorns in its portfolio that includes Moneyview, Flipkart, Swiggy, and Moglix, announced the fourth batch of its flagship pre-seed investment program, Atoms, earlier in September. Funding raised by domestic fintech firms fell 19% to $2.5 billion in 2024 from $3.1 billion in the same period last year, according to Inc42’s Annual Funding Report, 2024.
Despite advancements in financial inclusion, women in India continue to encounter barriers to getting financial services that are suited to their needs. “Whether it’s inactive bank accounts, limited savings options, or the difficulty women entrepreneurs have getting credit, the Swanari TechSprint is a call to action for fintech innovators to address these gaps,” said Supriya Sharma, Partner – Insights, IIMA Ventures.
Previous Cohorts
Previous cohort winners have included Kaleidofin, Merakal, Vitto, Anniyam Payment, MaksPay, Manipal Business Solutions, Sampatti Card, Haqdarshak, and Agripal. A fully owned subsidiary of the Reserve Bank of India, the Reserve Bank Innovation Hub (RBIH) focuses on harnessing innovation and technology to give Indians convenient access to financing.
On January 9, M Nagaraju, the secretary of financial services, announced that the Union government would shortly introduce a new credit guarantee program for the MSME sector that would cover loans up to INR 100 crore.
He stated on the last day of Grameen Bharat Mahotsav that the centre is likely to implement a plan that was revealed by the Finance Minister, Nirmala Sitharaman at her most recent budget session and that might offer loans up to INR 100 crore without guarantee if they already have the business. According to the official, 50 million people are employed in the Micro, Small, and Medium Enterprises (MSMEs) sector. It is anticipated that the plan would shortly be presented to the Union Cabinet for approval.
Sharing his views on the development, Amit Sarda, Co-founder & MD, Soulflower stated, “For Soulflower, this initiative represents an opportunity to accelerate our mission of delivering sustainable, innovative, and high-efficacy personal care solutions. With access to affordable financing, we can expand our operations to new markets, invest in cutting-edge R&D for preservative-free and clinically proven products, and enhance our commitment to sustainability through biodegradable packaging and eco-friendly production methods, and most importantly, access to cheaper working capital as compared to venture capital funds.”
Similar thoughts were echoed by Abdul Nasir Shaikh, founder and CEO of Total Coaching and Mentoring Collective LLP (TCMC India); he said, “This scheme not only promises to bridge the financial gap but also instills confidence in entrepreneurs to pursue bold ideas and scale operations. By reducing the perceived risk for financial institutions, it paves the way for more inclusive credit disbursement, particularly for first-time entrepreneurs and businesses in underserved sectors. As someone deeply engaged in coaching and mentoring MSMEs and startups, I see this as a significant enabler of growth. The availability of guaranteed credit can allow businesses to invest in technology, enhance operational efficiency, and expand their market presence.”
“Well, it is a transformative step for small businesses and startups in India. Access to credit has long been a major hurdle for MSMEs, with many struggling to secure funding due to a lack of collateral or perceived risks. This initiative could provide the much-needed financial support to help these enterprises scale operations, invest in innovation, and navigate market challenges. For startups, this scheme opens doors to more robust growth opportunities, and it will allow them to focus on product development and market expansion. Moreover, it could encourage more and more entrepreneurs to enter the ecosystem, promoting job creation and contributing to the economy,” opined Tanay Sharma, Co-Founder & COO, CITTA.
Facilitating Term Loan for MSME
Sitharaman declared in the Union Budget 2024–2025 that a credit guarantee program will be implemented to enable MSMEs to get term loans for the acquisition of machinery and equipment without the need for collateral or third-party guarantees. According to her, each applicant will receive a guarantee cover of up to INR 100 crore from a separately established self-financing guarantee fund; however, the loan amount may be higher.
In addition to a yearly guarantee cost on the lowered loan balance, the borrower will be required to pay an upfront guarantee fee. From INR 3.95 lakh crore in 2020–21 to INR 12.39 lakh crore in 2024–25, MSMEs’ exports have increased dramatically.
“As India takes significant steps to strengthen its MSME ecosystem, the Loan Guarantee Scheme plays a crucial role in promoting financial inclusivity and growth,” said Nilesh Dungarwal, Co-founder & CEO, WorkIndia.
MSME Showing Remarkable Performance
Over the years, the MSME sector in India has made a substantial contribution to the GDP of the country by continuously exhibiting exceptional resilience and adaptability. MSMEs’ Gross Value Added (GVA) as a percentage of India’s GDP was 29.7% in 2017–18 and 30.1% in 2022–2023.
Nagaraju emphasised the significance of connecting microenterprises, self-help groups (SHGs), and rural producers with banking services and market prospects. India is a village-based country. “A lot of things in the country are actually driven by Grameen Bharat,” he remarked. And all around the nation, villages are the new hubs of development.
He praised the government’s main efforts to promote financial inclusion, pointing out that the Pradhan Mantri Jan Dhan Yojana (PMJDY) opened over 53 crore new bank accounts, with women from rural regions making up the bulk of the beneficiaries. Nagaraju further emphasised how SHGs help rural communities develop economic resilience and entrepreneurship.
The Scheme Aligns with Government’s Vision
The program supports the government’s goal of boosting rural entrepreneurship. In order to realise the Vikshit Bharat goal, Nagaraju stressed the significance of concentrating on quality, export connections, capacity growth, and all-encompassing support.
The declaration emphasises the government’s dedication to supporting sustainable economic growth and boosting MSMEs. The industry is well-positioned to boost local wealth and India’s standing in international trade with an emphasis on innovation and growth.
In a recent Rajya Sabha session, Union Minister of State for Commerce and Industry Jitin Prasada revealed that Uttar Pradesh (UP) has become a notable state, home to about 9% of all startups in India. To encourage creative business endeavours and strengthen the startup ecosystem, the Uttar Pradesh government has contributed INR 1,000 crore to the UP Startup Fund. Paytm, Paytm Mall, India Mart, Moglix, Pine Labs, Innovaccer, InfoEdge, and Physics Wallah are eight of the 108 unicorns in India that are based in Uttar Pradesh. With firms dispersed throughout all 75 districts, the state has surpassed its initial 2025 target and established 10,000 startups by mid-2023.
Growth of Startup Sector Reflects State’s Proactive Measures
This impressive expansion of UP’s startup scene is evidence of the state’s proactive efforts to create an atmosphere that is conducive to business. The Uttar Pradesh government has put in place a number of laws and initiatives to assist entrepreneurs and position the state as an innovation hub because it recognises the potential of startups to spur economic growth and job creation.
Through the creation of strong infrastructure, guaranteeing policy support, and encouraging innovation across industries, the state’s extensive StartInUP program seeks to create a world-class startup ecosystem. Creating one million square feet of incubation and acceleration space, supporting the growth of 10,000 companies (achieved before the deadline), building eight Centres of Excellence (CoEs) in high-potential regions, and constructing 100 incubators—one in each district—are just a few of its ambitious objectives.
Supporting New Businesses in Tier 2 and Tier 3 Cities
With almost half of the state’s startups originating from Tier 2 and Tier 3 cities, UP has concentrated on empowering entrepreneurs in these areas in an effort to decentralise startup growth. The state is facilitating economic growth in all 75 districts by encouraging innovation outside of large urban hubs. Around one lakh jobs have been created in the state as a result of this expansion, demonstrating the important role entrepreneurs play in fostering livelihood possibilities and enhancing local economies.
UP is working to create agri-tech companies that tackle issues including low agricultural yields, poor food processing, and waste in rural areas. To assist businesses in cutting-edge fields including artificial intelligence (AI), drones, medical technology, blockchain, 5G and 6G, quantum computing, additive manufacturing, and space technology, the state government has donated ₹1,000 crore to the UP Startup Fund.
Drafting Policies that Further Fuel the Growth
In order to encourage innovation and entrepreneurship, the state has implemented regulations that provide incentives like tax breaks, seed money, and infrastructure support. The Mukhyamantri Yuva Udyami Vikas Abhiyan (MYUVA) plan was introduced in early October 2024 with the goal of empowering young entrepreneurs by offering interest-free loans up to INR 5 lakh, with the goal of developing one lakh young entrepreneurs yearly. Similar to this, the Uttar Pradesh government has given the IT and IT-enabled services sector industry status in an effort to draw in multinational tech companies. This will allow these businesses to purchase property at industrial prices and strengthen UP’s standing as a major IT hub in North India.
The state’s industrial potential has been highlighted in large part by events like UPITS 2024, which give business owners a chance to connect, look for collaborations, and enter new markets. An agreement to build a semiconductor production plant in Jewar, Uttar Pradesh, was inked in September 2024 between the United States and India. An important turning point in India’s technical development will be reached with the opening of this state-of-the-art facility, called “Shakti,” which will be the first of its type in the nation.
The National Restaurant Association of India (NRAI) is expected to petition the Competition Commission of India (CCI) for intervention about the launch of the 10-minute meal delivery standalone apps, Bistro and Snacc, adding to the problems caused by Zomato and Swiggy’s anti-competitive conduct. According to a media story that quotes Sagar Daryani, the founder and CEO of Wow Momo, as well as the president of NRAI, NRAI is seriously considering pursuing legal action against both businesses. Daryani further stated that NRAI is not comfortable with Zomato and Swiggy selling food directly through Blinkit’s Bistro app and Swiggy’s Snacc app for speedy meal delivery, as well as with the two companies allegedly hiding consumer data.
Daryani further emphasised that although these platforms have access to important customer data, they do not provide restaurant partners with this information. All of our data is at their disposal, yet they choose not to share it with us. There is total consumer masking for us. “Whether it’s data from a tea brand, biryani, or momo, we have no reason to believe they are not migrating our customers to the products they sell as private labels on their apps,” the journal said, quoting Daryani. The NRAI is concerned that Zomato and Swiggy may use this information to entice users to buy their goods via these apps.
NRAI Already Battling Two Legal Battles Against Swiggy and Zomato
The startup led by Sriharsha Majety launched a new app earlier this week called “SNACC,” which aims to provide a 15-minute meal delivery service in a few areas of Bengaluru. Zomato then introduced its 15-minute meal delivery service. It is important to remember that in addition to being outspoken about its concerns about Zomato and Swiggy‘s business practices, the NRAI is also pursuing two lawsuits against the companies, claiming they have engaged in anti-competitive behaviour. In an effort to create a level playing field and safeguard eateries, delivery partners, and customers from potentially exploitative platform activities, NRAI requested just a day ago that the government provide industry status to the food services sector.
The food delivery giants were accused by the association of anticompetitive activities in the past, including service bundling, excessive commissions, delayed payment cycles, and the imposition of one-sided terms. According to reports, the CCI discovered a few months ago that foodtech giants Swiggy and Zomato had violated competition regulations by favouring certain eateries through their relationships.
Why there is a Need of Strict Guidelines
Based on a complaint submitted by the National Restaurant Association of India (NRAI) in 2021, the CCI had previously investigated both businesses in 2022. This is the main reason why many consumer service and e-commerce businesses are either trying to enter or are already in the rapid commerce market. This trend reflects the shifting preferences of consumers, who now want their purchases delivered quickly. Amazon, Flipkart, JioMart from Reliance, and Tata BBNow are just a few of the companies that have recently entered the market. Better anti-competition policies and procedures are therefore required in order to guarantee these restaurant partners—particularly the smaller ones—fair play.
Group CEO and co-founder Sriharsha Majety told a media outlet that Swiggy, a food and grocery delivery service, plans to release its rapid commerce offering, Instamart, as a stand-alone app as part of its multi-app strategy in response to changing consumer preferences.
Instamart will undoubtedly be available on the main Swiggy app. The business is aiming to target clients who are solely interested in a specific offering by releasing a different app. This strategy is similar to that of Chinese internet giants like Meituan and Alibaba, who combine a single app with a number of stand-alone apps designed for particular use cases.
Swiggy is taking a zero-based approach to the market and is operating in an unknown area. Cross-pollination continues to have a significant impact on the Swiggy app thanks to its integrated membership program, card, etc. However, Swiggy co-founder and group CEO Sriharsha Majety told a media outlet on January 9 that Instamart has the ability to surpass food delivery in terms of user base.
Swiggy developing several applications isn’t necessarily a novel tactic, Majety continued. The business has never referred to itself as a superapp. According to him, it is expanding on its strategy of having Supr Daily, Insanely Good, and Dineout as distinct apps.
App to go Live in Few Weeks
In a few weeks, a different Instamart app will launch. Majety added further, “In the early years, we did not see a world with more than 150 million users. Thanks to rapid commerce, we’re now looking at 300–500 million users.”
75 cities now have Instamart, along with new categories. Items are selling more and more when more categories are added. However, even for the rapid commerce category, the organisation has only completed 5–10%. Majety further stated that if fast commerce is to surpass the food delivery industry in terms of user base, the brand wants to gain an early understanding at the 5-10% stage.
According to Majety, the company’s plans for separate apps won’t have a big impact on its efforts to improve consumer recall. With this choice, the corporation is rarely making any new ground. There are numerous templates and businesses, and launching a distinct app is not a particularly novel experience. It is the same tool that customers are familiar with in a certain industry.
Continue to Roll More Apps
Snacc, Instamart, and Dineout will remain separate apps, according to Swiggy, but they will also coexist with the main app. According to media reports, Swiggy plans to release Pyng and another app for Rare in addition to these four.
It makes sense for Rare to be a stand-alone app given its extremely specialised user base, which, according to a media report, will only make up a small portion of Swiggy‘s total user population. With its most recent launch, Pyng, Swiggy will provide carefully chosen professional services like yoga instructors, certified public accountants, and more. Yello was the original name of Pyng, but Swiggy has chosen to change the product’s name. Justdial and Pyng are comparable, but Pyng takes a more targeted approach.
In an attempt to cut down on food waste throughout its value chain, listed foodtech giant Swiggy has started a new campaign called “Swiggy Serves.” In an effort to combat hunger nationwide, Swiggy intends to redistribute excess food from its restaurant partners to underprivileged areas, the firm announced in a statement. The non-profit Robin Hood Army, based in Delhi NCR, has partnered with the Sriharsha Majety-led company on the Swiggy Serves project. By the end of 2030, it hopes to deliver 50 million meals to underprivileged communities. With the help of more than 126 restaurant partners, the two have already redistributed 2,000 meals among 33 locations as part of the recently established campaign’s trial.
According to Rohit Kapoor, CEO of Swiggy’s food marketplace, the brand is already active in 33 cities and intends to expand this program to more locations. According to Swiggy, a number of well-known companies have joined the new effort, including Birayni By Kilo, Dana Choga, Vardhas, B.Tech Momos Wala, Samosa Singh, Babai Tiffins, Dosa Anna, and Urban Tandoor, among others.
Similar Initiative was Launched by Zomato
It is important to note that Zomato, Swiggy’s competitor, started a similar campaign in 2019 to combat hunger, malnutrition, and food waste in partnership with the nonprofit organisation Feeding India. The foodtech company led by Deepinder Goyal also purchased Feeding India in the same year. The Swiggy Serves campaign coincides with the foodtech giant’s transition from a single app to launching distinct applications for each of its products under the Swiggy name. Earlier today, a media outlet announced that Swiggy has extended its Instamart rapid commerce solution to 76 Indian cities. Additionally, the business intends to release a stand-alone Instamart app shortly.
Swiggy Launched Snacc
Earlier, Swiggy released a new app called Snacc that allows users to order meals, snacks, and beverages in as little as 15 minutes. The debut coincides with a race among Indian food delivery apps to deliver hot beverages and biryani to consumers’ doorsteps in less than ten to fifteen minutes. On January 7, Snacc, which has a bright fluorescent green background and dark blue writing, went online in a few areas of Bengaluru. The sources claim that Swiggy intends to expand the platform throughout the nation.
Chocolate cookies, Indian breakfast, coffee, tea, eggs, rolls and sandwiches, lunches, cold drinks, egg puffs, and cheese Maggie are among the foods offered at Snacc. Prior to that, Swiggy announced in December that it had expanded Bolt, its 10-minute meal delivery service, to more than 400 cities and towns nationwide. For the first time, fresh food from consumers’ favourite restaurants is being delivered right to their door. According to Rohit Kapoor, CEO of Swiggy’s Food Marketplace, fries are crispy straight out of the packaging, ice creams remain frozen, and idlis arrive warm and fluffy.
Damini Bhandary
