American retail giant Walmart said on 19 November that its third-quarter foreign sales were boosted by Flipkart’s ‘Big Billion Days’ sales event in India. Walmart, which uses a fiscal year that runs from February to January, recorded sales of $31.5 billion from its overseas division, representing an increase of 12.4% in constant currency.
According to Walmart’s earnings announcement, the timing of Flipkart’s The Big Billion Days (BBD) event helped growth in Q3 and will have an effect on growth in Q4. Walmart International, which has operations in 18 countries outside of the US, including India, reported that Flipkart, Walmex (Mexico), and China were the top three nations in terms of sales growth.
Details of Q3 Sales’ Growth
Walmart International stated that marketplace and store-fulfilled pickup and delivery were the main drivers of the 43% increase in e-commerce sales in the third quarter. Furthermore, it stated that Flipkart spearheaded the 50% growth in Walmart International’s advertising division. For the 2024 festive season, Flipkart’s Big Billion Days sales event began on September 26 and ran through October 6.
However, Walmart also stated that the scheduling change of Flipkart’s The Big Billion Days (BBD) sales event, which was held earlier, “partially offset” its overall gross profit. The Flipkart Big Billion Days sale in 2023 ended on October 8 and ran through October 15.
Gross Profit Rate and Overall Performance of the Company
Compared to the same period last year, the company’s gross profit rate increased to 24.2% for the quarter. Walmart said that the schedule change of Flipkart’s BBD sales event largely negated the increase. In the meantime, the shift in BBD scheduling caused Walmart International’s gross profit rate to drop by 85 basis points. Growth in Q3 benefited from Flipkart’s BBD event timing, while growth in Q4 will be impacted.
Flipkart reported last month that it received 7.2 billion visitors during this year’s festive season. It further stated that over the festive season, vendors saw a 40–50% YoY increase. In the third quarter, Walmart’s operating income was $6.7 billion. This was a 14% decrease from the $7.9 billion in the previous quarter, but an 8% gain over the $6.2 billion in the previous year. Flipkart is currently trying to reduce its losses and strengthen its top line. In the fiscal year 2023-24 (FY24), Flipkart Internet, the company’s marketplace division, reported a 41% YoY decrease in its net loss to INR 2,358 Cr. Over the course of the year, its operating revenue increased by 21% to INR 17,907.3 Cr.
In 2018, Walmart paid $16 billion to acquire a 77% controlling stake in Flipkart. After that, it increased its ownership and currently holds more than 80% of the largest e-commerce company with its headquarters in Bengaluru.
According to Anil Kumar Lahoti, chairman of the Telecom Regulatory Authority of India (Trai), the organisation is expected to make its recommendations about spectrum assignment and satcom service price by December. Trai has examined all of the comments, rebuttals, and submissions from the industry following the open house discussion. After then, it will take us two months to arrive. Thus, Lahoti informed the media that at some point in December, Trai will be in a position to make its recommendations.
Additionally, he stated that before developing the suggestions, TRAI will consult the International Telecommunication Union’s (ITU) regulations, worldwide best practices, and stakeholder inputs. This occurs weeks after representatives of terrestrial and non-terrestrial network providers attended an open house discussion on satcom spectrum allotment hosted by TRAI.
Tug of War Between National and International Players
There were heated exchanges during the event as telcos like Reliance Jio and Bharti Airtel demanded that satcom spectrum be distributed through an auction to guarantee a “level playing field,” while Jeff Bezos’s Amazon Project Kuiper and Elon Musk’s Starlink made the case for administrative satcom spectrum distribution.
This comes after Jyotiraditya Scindia, the minister of communications, stated last month that satellite service spectrum will be distributed administratively but at a “cost” that would be determined by TRAI following thorough discussions with relevant parties. Chandra Sekhar Pemmasani, the Minister of State (MoS) for communications, stated earlier this month that satcom should be viewed as an adjunct to terrestrial networks like 5G and 6G in order to close the digital gap and improve last-mile connectivity in India.
The director of Starlink Satellite Communications, Parnil Urdhwareshe, stated during the open house that Indian consumers desire satellite broadband services and that these “intelligent consumers” are entitled to select an operator that will offer them a high-quality, reasonably priced service. He noted that Starlink’s website easily provides costs for any country and that the company takes pride in making satellite broadband accessible to those who have not yet had it.
Consultation Paper and its Aftermath
Notably, in September, TRAI released a consultation paper to investigate the process and cost of allocating spectrum to satcom firms. The study requested feedback on 21 topics, such as the process for calculating spectrum fees, satellite communications service frequency ranges, assignment duration, and provisions for spectrum surrender, among other things.
In response, telecom provider Reliance Jio sent several letters to TRAI requesting that the consultation paper on satcom spectrum distribution be withdrawn. The company said that the current paper “overlooks the critical point of ensuring” a level playing field between satellite and terrestrial services.
According to reports, the West Bengal government is planning to implement a number of policy frameworks in developing fields of information technology (IT) at a time when other governments are launching new projects and increasing funding to support entrepreneurs. A media outlet stated in its story that in order to draw in investment in semiconductors, drones, and the global capability centre (GCC), the Bengal government will implement new laws in these areas. To complete the GCC policies, the West Bengal government’s ministries and agencies are collaborating, and the entire framework is at the very last stages.
The semiconductor policy is, too, at its final stage. West Bengal’s IT and electronics minister, Babul Supriyo, was quoted in the newspaper as stating, “The government is making the necessary amendments to it, making it very up to date.” While speaking at the 9th Assocham-organized Tech Meet, Supriyo made his remarks.
The Bengal Global Business Summit
According to the news report, Supriyo added that the GCC policy is probably going to be implemented prior to the Bengal Global Business Summit (BGBS), which is set for February 5 and 6, 2025. The report went on to say that in order to draw in investment, the state administration will update its current drone policy while simultaneously looking to implement new initiatives. “I’ve met a number of young drone entrepreneurs and invited them to meet with the state administration to discuss their goals and any particular changes they would like to see. Additionally, a drone academy is being developed,” Supriyo stated.
This growth coincides with a number of initiatives being introduced by the federal government and numerous state governments to support entrepreneurs. For example, as part of the state’s endeavour to meet environmental targets, such as net-zero emissions, the Kerala Startup Mission (KSUM) invested INR 15 Cr ($150 Mn) in energy transition-oriented investor Transition VC one month ago.
Other States Attracting Foreign Investment in Tech Sector
Prime Minister Narendra Modi had previously met with US President Joe Biden in September to address a number of issues, including the establishment of a semiconductor fabrication plant in Kolkata and the MQ-9B Predator drone agreement. As of June, the Karnataka government was trying to get $6.2 billion in foreign investment in technology-related fields such biotechnology, artificial intelligence (AI), semiconductors, AVGC (animation, visual effects, gaming, and comics), and healthtech.
In the meantime, M.K. Stalin, the chief minister of Tamil Nadu, visited the United States in September to meet with representatives of several multinational corporations, including Google, Apple, and Microsoft, and to shake hands with corporate executives regarding fresh investments and commercial expansion in the state.
HDFC Bank, India’s largest private sector lender by market capitalization, has cemented its position as a leader in the banking industry with its focus on retail and digital banking.
Beyond banking, HDFC Bank’s revenue model strikes an effective balance between interest-based earnings and diversified income streams, bolstered by treasury operations and non-interest revenue sources. Its robust financial metrics, including a strong CASA ratio and healthy capital adequacy, highlight its readiness for long-term sustainable growth.
From HDFC ERGO’s insurance solutions to HDFC Credila’s pioneering role in education financing and HDFC Property Fund’s real estate focus to the philanthropic efforts of the HT Parekh Foundation, the bank seamlessly integrates business growth with social impact.
In this Startup Talky, we will explore HDFC Bank’s journey, its revenue model, growth strategies, and the innovative ecosystem that sets it apart as a market leader.
HDFC Bank Limited, based in Mumbai, stands as India’s leading private sector bank by assets and ranks among the top ten banks worldwide by market capitalization as of May 2024. This financial powerhouse has carved out a significant presence, not just domestically but also on the global stage.
The Reserve Bank of India (RBI) has designated HDFC Bank, alongside the State Bank of India and ICICI Bank, as “Domestic Systemically Important Banks” (D-SIBs), signaling their crucial role in India’s financial ecosystem. These banks, often labeled as “too big to fail,” are integral to maintaining economic stability.
In terms of market value, HDFC Bank boasted a capitalization of $145 billion as of April 2024, making it the third most valuable company listed on Indian stock exchanges. Following its merger with the Housing Development Finance Corporation (HDFC), the bank expanded its workforce to over 173,000 employees, placing it among India’s largest employers.
HDFC Bank – Industry
As of July 2024, India’s mutual fund industry managed an impressive Assets Under Management (AUM) worth INR 64.97 lakh crore (US$ 780.70 billion). From April 2023 to March 2024, systematic investment plans (SIPs) contributed a robust INR 2 lakh crore (US$ 24.04 billion).
Equity mutual funds also witnessed significant traction. By December 2021, these funds saw a cumulative net inflow of INR 22.16 trillion (US$ 294.15 billion). In December 2022 alone, the net inflows hit INR 7,303.39 crore (US$ 888 million), recovering from a 21-month low of INR 2,258.35 crore (US$ 274.8 million) in November of that year.
Another pivotal sector is India’s rapidly growing insurance industry. In FY23, life insurance companies recorded first-year premiums totaling US$ 32.04 billion. Meanwhile, the non-life insurance sector garnered premiums of INR 1.87 lakh crore (US$ 22.5 billion) by December 2022.
Adding to India’s financial ecosystem, the Bombay Stock Exchange (BSE) announced a partnership with Ebix Inc to launch a dedicated insurance distribution platform. The market also saw vibrant activity in the IPO space, with US$ 7.17 billion raised across 40 IPOs in FY23. The number of companies listed on the BSE has grown exponentially, rising from 135 in 1995 to 5,415 by June 2024.
HDFC Bank – Founders and Team
Hasmukhbhai Thakordas Parekh
Hasmukhbhai Thakordas Parekh Founder of HDFC Bank
H. T. Parekh, the visionary founder of HDFC, transformed the dream of homeownership for India’s middle class into a reality. Born in Surat and raised in a humble Mumbai chawl, Parekh’s journey from modest beginnings to leading one of India’s most valuable financial institutions is truly inspirational. A graduate in economics from Mumbai and a BSc in Banking and Finance from the prestigious London School of Economics, Parekh’s career spanned roles as a lecturer, stockbroker, and later a key leader at ICICI, where he retired as Chairman and Managing Director. Not content with resting on his laurels, Parekh founded HDFC at the age of 66 in 1977, laying the groundwork for a financial powerhouse valued today at INR 4.14 lakh crore—outshining even icons like Dhirubhai Ambani. A recipient of the Padma Bhushan, Parekh’s life epitomizes resilience, vision and a lasting impact on India’s banking and housing sectors.
Sashidhar Jagdishan
Sashidhar JagdishanMD and CEO of HDFC Bank
Sashidhar Jagdishan, the MD and CEO of HDFC Bank, is a homegrown leader who has spent 24 years shaping the bank’s extraordinary journey. A proud “Mumbai boy,” Jagdishan grew up in the serene suburb of Matunga, attending Don Bosco High School before pursuing a bachelor’s degree in Physics from Mumbai University. With a Chartered Accountant qualification and a Master’s in the Economics of Money, Banking & Finance from the University of Sheffield, UK, his academic pedigree laid a solid foundation for his career. Starting at Deutsche Bank in financial control, Jagdishan joined HDFC Bank in 1996 as a manager and climbed the ranks to lead the institution after the legendary Aditya Puri. Today, as the torchbearer of India’s largest private sector bank, Jagdishan exemplifies dedication, expertise, and the ability to drive growth in a rapidly evolving financial landscape.
HDFC’s transformative journey began in 1978 when it issued its first loan, setting the stage for a groundbreaking venture in India’s housing finance sector. By 1984, under the visionary leadership of H. T. Parekh, the company was approving loans exceeding INR 100 crore annually. Parekh’s relentless dedication earned him the Padma Bhushan in 1992, solidifying his legacy as a pioneer in financial innovation.
The story took a monumental leap in 1994 when HDFC Ltd secured approval from the Reserve Bank of India (RBI) to establish a private sector bank. Incorporated in August 1994, HDFC Bank began operations as a Scheduled Commercial Bank in January 1995, with its first office at Ramon House, Churchgate, Mumbai. This move aligned with the RBI’s efforts to liberalize India’s banking sector, marking the birth of a financial institution destined for greatness.
HDFC Bank’s early years were defined by its unwavering commitment to trust, customer-centricity and operational excellence. Guided by these core values, the bank quickly built a reputation for reliability and innovation, capturing the trust of customers across the nation.
HDFC Bank’s journey to becoming a financial titan included key mergers and acquisitions. In 2000, it merged with Times Bank, marking India’s first voluntary bank merger. This was followed by the 2008 acquisition of Centurion Bank of Punjab (CBoP) in a share-swap deal, further solidifying its footprint in the Indian banking landscape.
Decades later, the historic merger of HDFC and HDFC Bank created a financial behemoth valued at INR 4.14 lakh crore. From a single loan to a banking empire, the HDFC journey stands as a shining example of resilience, vision, and determination—transforming lives and reshaping India’s financial ecosystem.
HDFC Bank envisions being recognized as a world-class Indian bank that embodies trust, transparency, and service excellence. It strives to lead the banking industry by setting benchmarks in innovation, customer satisfaction, and financial stability, creating value for all stakeholders while contributing to the nation’s economic progress.
Mission
HDFC Bank’s mission is built on a twofold objective. The first is to be the preferred banking partner for both retail and wholesale customer segments by offering tailored and superior financial solutions. The second is to drive healthy profitability growth while maintaining a balanced approach to risk management. The bank is committed to delivering on these goals through a foundation of trust, transparency, and an unwavering dedication to service excellence.
HDFC Bank – Name, Tagline and Logo
HDFC Logo
Tagline: “We understand your world”
HDFC Bank’s tagline reflects its deep commitment to understanding and addressing the unique needs of its customers, ensuring a personalized and seamless banking experience.
Logo: The bank’s innovative musical logo, MOGO, serves as a vibrant representation of its values, harmonizing tradition with modernity while creating a distinct identity that connects with customers on a sensory level.
Core Values: HDFC Bank’s identity is rooted in its steadfast core values:
Customer Focus: Placing customer satisfaction at the forefront of its operations, the bank offers tailored solutions to meet diverse financial needs.
Product Leadership: Continuously innovating and introducing market-leading financial products that redefine convenience and accessibility.
Sustainability: Upholding environmental and social responsibility by integrating sustainable practices into its operations.
People-Oriented Services: Fostering a culture of inclusivity, empathy and service excellence, ensuring meaningful engagement with customers and employees alike.
HDFC Group has built a dynamic and diversified business structure that caters to a wide spectrum of financial needs. Its various subsidiaries and initiatives contribute to its standing as a leader in the financial services sector.
Comprehensive Protection with HDFC ERGO
HDFC ERGO, the general insurance arm of the group, offers a diverse portfolio of insurance products, including health, motor, and other general insurance solutions. Known for its straightforward and efficient claims process, it ensures customer confidence with its commitment to reliability and transparency.
Empowering Customers Through HDFC Sales
Initially established to promoteHDFC’s home loans, HDFC Sales has expanded to become the one-stop distribution network for the entire group’s offerings. From mutual funds to insurance and wealth management products, it provides seamless access to financial solutions under one umbrella.
Shaping Futures with HDFC Credila
Launched in 2006, HDFC Credila stands as India’s first company exclusively dedicated to education loans. Partnering with colleges across the country, it specializes in tailored loan solutions, empowering students to pursue their academic goals with ease.
Driving Real Estate Investments via HDFC Property Fund
As one of the largest private equity entities focusing on Indian real estate, HDFC Property Fund manages assets worth ₹72 billion. It plays a pivotal role in shaping the real estate landscape through strategic investments and fostering growth in the sector.
Transforming Lives with HT Parekh Foundation
The HT Parekh Foundation, the group’s philanthropic initiative, works tirelessly to uplift underprivileged communities. By addressing critical challenges in areas like education, healthcare, and livelihood, the foundation embodies HDFC’s commitment to societal betterment.
HDFC Bank’s revenue model reflects a balance between core lending operations and diversified income streams. By blending interest-based earnings with dynamic treasury operations and non-interest income, the bank ensures long-term profitability while delivering value to its customers and stakeholders.
1. Interest Income: Core of Banking Operations
The primary source of revenue for HDFC Bank comes from the interest earned on loans, advances, and investments in government securities and other financial instruments. These loans cater to a wide range of segments, including retail, corporate, and priority sectors, forming the backbone of the bank’s financial operations.
2. Non-Interest Income: Diversified Earnings
HDFC Bank generates substantial revenue from non-interest sources, emphasizing service-based offerings:
Fees and Commissions: Derived from services like credit card transactions, remittances, and trade finance.
Cash Management Services: Efficient solutions for businesses, contributing to steady income streams.
Other Financial Services: Advisory and wealth management services also add to this segment.
The bank’s treasury department plays a crucial role in generating income through:
Trading Activities: Profits from trading in foreign exchange, government securities, and other market instruments.
Asset Management: Effective handling of cash and liquid assets to maintain optimal liquidity.
Risk Management: Mitigation of interest rate and liquidity risks to safeguard financial stability.
HDFC Bank – Challenges Faced
HDFC Bank is leveraging its operational strength and market leadership to address these challenges. By recalibrating its strategies and focusing on sustainable growth, the bank aims to enhance long-term value for its customers and shareholders.
1. Deposit Growth vs. Credit Growth
The pace of deposit growth has raised concerns as it has not kept up with the bank’s credit expansion, creating a credit-deposit gap. To address this, the bank plans to prioritize deposit growth over advances, aiming to bring down its credit-deposit (CD) ratio to more sustainable levels.
2. Rising Cost of Deposits
The cost of deposits has surged due to recent interest rate hikes and the Reserve Bank of India (RBI) draining surplus liquidity from the market. This has increased funding expenses, prompting the bank to adopt a cautious approach toward loan pricing and deposit mobilization.
3. Changing Consumer Preferences
A noticeable shift in consumer preferences toward mutual funds, equities and real estate has impacted deposit growth. The bank is working on tailored products and innovative strategies to attract deposits and retain customer loyalty.
4. Increased High-Cost Borrowing
Post-merger, the share of high-cost borrowing in the bank’s total liabilities has risen significantly, from 8% to 21%. This change has led to increased interest expenses, posing a challenge to profitability. The bank is focusing on optimizing its borrowing mix to mitigate this impact.
5. Balance Sheet Realignment
HDFC Bank is undergoing a strategic realignment to integrate operations post-merger and ensure regulatory compliance. While this may result in slower growth in the short term, the bank is focused on stabilizing key metrics like net interest margin (NIM), credit-deposit ratio, and liquidity coverage ratio (LCR).
6. Concerns Over Elevated Valuations
HDFC Bank’s elevated valuations, especially as one of the most heavily-owned stocks in the market, have drawn scrutiny. Investors and analysts are closely monitoring the bank’s ability to deliver consistent growth amid heightened expectations.
HDFC Bank – Funding and Investors
HDFC Bank has been strategically investing in branch expansion, technology upgrades, and customer-centric solutions, driving growth and strengthening its market leadership. Their total funding amount is currently at $2 Billion after 5 rounds of funding. They are as follows:
Date of funding
Funding Amount
Round Name
Investors
May 17, 2024
Post-IPO Debt
$500M
International Financial Corp.
Feb 7, 2024
Post-IPO Debt
$750M
–
April 12, 2023
Post-IPO Debt
$300M
The export-import Bank of Korea
Dec 23,2023
Post-IPO Debt
$400M
International Financial Corp.
Dec 5, 2022
Post-IPO Equity
$6.8M
Life Insurance Corp.
HDFC Bank – Mergers and Acquisitions
HDFC Bank has expanded through mergers like Times Bank and Centurion Bank of Punjab, creating a robust and diversified banking entity. And many more like:
Date
Organization Name
Funding Round
Money Raised
April 16, 2024
GPS Renewables
Debt Financing
INR 4.1Cr
March 20, 2024
Fam Infinity
Grant
INR 425 K
Feb 17, 2024
Fruitoholic
Debt Financing
–
Feb 7,2024
Cashinvoice
Series A
INR 282 Cr
Jan 30, 2024
Blackopal Group
Debt Financing
INR 250 Cr
Dec 11, 2023
Thirumals Paper Arizona Pvt Ltd.
Debt Financing
INR 50 Cr
Jun 28, 2023
Bonito
Debt Financing
INR 400 Cr
Jun 15, 2023
IdeaForge
Venture Round
INR 600 Cr
April 24, 2023
Goa Digit-Life Insurance
Debt Financing
INR 218.6 Cr
Feb 21, 2023
MintOak Innovations
Series A
INR 1.7 Cr
HDFC Bank – Growth
1. Advances Growth: HDFC Bank has demonstrated robust growth in its advances, with a significant year-on-year increase of 54.39%. This growth outpaces the bank’s 5-year compound annual growth rate (CAGR) of 19.71%, reflecting strong demand for credit and the bank’s ability to meet the evolving needs of its customers.
2. Revenue Growth: The bank’s revenue has surged by 99.35% year-on-year, significantly outperforming its 3-year CAGR of 37.37%.
3. Profit Growth: HDFC Bank has consistently delivered strong profitability, posting a 25.03% profit growth over the past 3 years.
4. Income Growth: The bank’s income has grown by 28.82% over the past 3 years
5. CASA Ratio: The bank’s Current Account and Savings Account (CASA) ratio stands at a healthy 38.19% of total deposits.
6. Capital Adequacy Ratio (CAR): HDFC Bank maintains a strong Capital Adequacy Ratio (CAR) of 18.80%, which is well above the regulatory requirement.
HDFC Bank – Advertisements and Social Media Campaigns
HDFC Parivartan National Ad Campaign
HDFC Bank’s Parivartan Launched a National Ad Campaign on ESG (June 6, 2022)
In celebration of World Environment Day, HDFC Bank launched a compelling national advertising campaign focused on Environmental, Social, and Governance (ESG) initiatives under its flagship program, Parivartan. The campaign was aimed at raising awareness about pressing environmental and social issues, urging the public to act today for a better tomorrow.
Powerful Message Through Film: The campaign consisted of four unique and thought-provoking films, conceptualized by Leo Burnett, which utilize dramatic visuals to underscore the urgency of the current environmental and social challenges. Each film highlights a different cause supported by HDFC Bank’s corporate social responsibility (CSR) efforts. The visuals depict a bleak future that will become inevitable unless action is taken now and demonstrate how restorative measures are already underway through HDFC Bank’s Parivartan initiatives.
Call to Action for Change: The films showcase real steps being taken by the bank to address critical social and environmental issues. Through these narratives, the bank invites viewers to join in making a positive change, reinforcing HDFC Bank’s role as a socially responsible corporate entity. The campaign aims to spark a movement toward collective action to build a sustainable future.
Nationwide Activation and Street Play: In addition to the film campaign, HDFC Bank has planned an impactful activation across more than 40 locations nationwide. The bank will host short street plays at over 125 busy traffic signals, encouraging commuters to turn off their engines while waiting at the signals. This initiative seeks to reduce air pollution and promote sustainable habits among the public.
Parivartan’s CSR Focus Areas: HDFC Bank is one of the largest corporate CSR spenders in India, with Parivartan focusing on key areas such as climate care, rural development, education, skill development, healthcare and hygiene, and financial literacy. Through its extensive CSR work, the bank continues to champion social and environmental causes, aiming to make a significant impact on society and the environment.
This campaign represents HDFC Bank’s ongoing commitment to integrating ESG principles into its core operations, encouraging others to join in the effort to create a better and more sustainable future for all.
HDFC Bank – Awards and Achievements
Conscious Corporate of the Year 2023 – Awarded by the Economic Times Awards.
India’s Best Bank – KPMG Study (2016)
Most Valued Brand in India – BrandZ Rankings
Best Managed Public Company – FinanceAsia (2015)
Best Bank in India at Euromoney Awards (2021)
HDFC Bank – Competitors
Despite fierce competition, HDFC Bank stands out as India’s largest bank by market capitalization and the fourth-largest in the world.
1. ICICI Bank
2. Kotak Mahindra Bank
3. Punjab National Bank (PNB)
4. Bank of Baroda (BoB)
HDFC Bank – Future Plans
1. Branch Expansion: HDFC Bank is set to significantly expand its physical footprint, with plans to open 1,000 branches in 2024. Over the next three to five years, the bank aims to reach a total branch count of 13,000–14,000, enhancing its network to attract granular deposits and strengthen its presence in underpenetrated markets.
2. Core Banking System Migration: On July 13, 2024, HDFC Bank will migrate its Core Banking System (CBS) to a modern platform, underscoring its commitment to enhancing operational efficiency, scalability, and customer experience.
3.Credit-Deposit Ratio Management: To maintain financial stability and optimize liquidity, the bank plans to grow advances at a slower pace than deposits. This strategy aims to lower the credit-deposit (CD) ratio to pre-merger levels, ensuring a balanced and sustainable growth trajectory.
4. Employee Retention Initiatives: HDFC Bank is addressing employee attrition and aims to bring it down to 15% through targeted retention programs, better work-life balance initiatives, and career growth opportunities.
5. Technology Infrastructure: The bank has made significant strides in technology modernization by upgrading its core banking system, launching new digital solutions, and relocating its primary data centers to advanced facilities in Mumbai and Bengaluru.
6. Focus on MSME Lending: With an aggressive branch expansion strategy and a strong focus on MSME lending, HDFC Bank aims to capture growth opportunities in this segment. Analysts from Motilal Oswal Securities project the merged entity to achieve a loan growth of 12% for FY24, with a recovery to a 17% CAGR in loan growth over FY24–26.
FAQ
How did HDFC Bank start?
HDFC Bank was founded in 1994, and promoted by the Housing Development Finance Corporation (HDFC), to provide banking and financial services after India’s banking sector liberalization.
Is HDFC the No. 1 bank in India?
Yes, HDFC Bank is India’s largest private bank by market capitalization and assets.
One of the best and most efficient matrimony sites in India, Shaadi.com has brought together many like-minded people. It is recognized as one of the most prominent matrimonial sites, with a reputation for bringing together the most compatible couples. Millions of individuals use this site to find the best match for their children. The site has a fantastic record of over 3.5 million weddings from all across the world. It has become the most popular matrimonial website.
Shaadi.com was started by Anupam Mittal in 1996 with a single goal in mind: to give a better matching experience by increasing the number of possibilities to meet possible lifemates. Since then, Anupam Mittal and his team have built a globally recognized service that has impacted the lives of millions of people.
In this StartupTalky story, let us learn about Anupam Mittal’s success story, early life and childhood, life history, personal life, journey to success, education, Shaadi.com, Shark Tank India, and more.
Anupam Mittal Biography
Name
Anupam Mittal
Born
23 December 1971
Birthplace
Mumbai, India
Education
MBA in Operations & Strategic Management (Boston College, US)
Position
Founder and CEO of the People Group and Shaadi.com
Anupam Mittal, the founder, and CEO of People Group is now one of the most well-known figures in India’s e-commerce industry. Mittal has seen his valuations rise 10-fold in the last couple of years alone, thanks to more than 40 investments in a variety of interactive services (Shaadi.com, Ola cabs, Makaan.com, and Mauj mobile, among others) and is listed among the country’s 50 most powerful people by a leading business publication.
Shaadi.com was founded by Anupam Mittal with a novel concept that finally led to its massive success. Anupam Mittal was born on December 23, 1971. He graduated from Boston with a Bachelor’s degree. He also earned an illustrious MBA in Operations and Strategic Management. After meeting a marriage broker, he proceeded with the noble idea of launching a matrimonial website.
With time, Anupam Mittal’s profession and business have flourished. Anupam Mittal’s resume is embellished with his successful business methods and planning, which opened the route for popularity and prosperity.
Anupam Mittal with his wife Aanchal Kumar
Anupam Mittal married Aanchal Kumar – a model, and actress. Aanchal Kumar is a model-turned-actress who has appeared in films such as Bluffmaster and Fashion in cameo roles. She also made an appearance in the fourth season of Bigg Boss. She has received several modeling honors.
Anupam Mittal’s wife’s biography does not reveal much about her career, yet she is well-known in the film world. She married Anupam Mittal in 2013 after a long relationship. They have a daughter, Alyssa Mittal.
Anupam Mittal – How He Founded Shaadi.com?
Shaadi.com Homepage
Anupam returned to India after his studies. He used to sit in his father’s office and conduct web development work for other firms because he didn’t have much else to do.
At the same time, he ran across one of those old-school matchmakers who will go to any length to get you married. To protect his reputation, he attempted to place Anupam with some of his customers. A thought came to Anupam when the matchmaker was at the peak of his push, and it transformed his life forever.
Now, while he was attempting to get rid of the matchmaker, it occurred to Anupam that what if there was a portal that could operate as a virtual matchmaker for weddings, what if all of the information such guys possessed was posted on the World Wide Web and made available to anyone looking for a bride or groom? This would not only eliminate all inefficiencies and geographical limits but would also greatly simplify the procedure.
As a result, Anupam published the initial version of Sagaai.com in 1997 without much thought. At the time, this was more of an experiment than a steady enterprise. Even though he was active in the business as well, he only did so on weekends or so, and his primary attention remained on his employment. He invested all of the money he had or had saved for the web module’s development simply because it was the thing that brought the money in.
In the years 2000-2001, an intriguing turn of events occurred when the dot com bubble burst, and most of the firms in the surrounding area went bankrupt. Micro Strategy, the business with whom he was working at the time and which had a pre-dot com crisis worth over $50 billion, had also entirely collapsed.
At the same time, Anupam came across Shariah [SP].com and observed that there were a lot of individuals in the United States who were looking for lifemates. He saw that there was a significant pain point that they could address and that this had enormous potential!
After almost three years of running his website in India, he realized that the country had very limited internet penetration and that it still had a long way to go before becoming a legitimate business. Because India was missing out on the Internet, Anupam chose to focus his efforts on the US market.
Even though Shaadi.com was founded in 1996, it wasn’t until the years 2000-2001 that they began to focus on it as a company and devote all of their resources to it. And, since the stock market in the United States was on the verge of collapsing, the idea of quitting work and returning home began to take shape. After much deliberation and consideration, Anupam left Micro Strategy in 2001, returned to India, changed the name of Sagaai.com to Shaadi.com, and entirely shifted his emphasis.
Now that he’d made his decision, he needed to narrow down his target audience, and while doing so, he realized that there was a greater need for a service like Shaadi.com among NRIs, or ex-pats from the United Kingdom, the United States, and Canada, simply because these people were geographically separated from their homelands but still wanted to marry within their relevant communities, but couldn’t find the right one because they didn’t know where to look. This is when Shaadi.com could come in handy!
Anupam Mittal – The Succes of People Group
People Group Homepage
People Group, which comprises Shaadi.com, Makaan.com, Mauj Mobile, and People Pictures, is where Anupam began his entrepreneurial path. Anupam has taken People Group from one milestone to the next, and the company is now acknowledged as one of the most inventive in the country. He is known for his strong commercial acumen and attention to detail.
In 1996, Shaadi.com, the world’s largest marriage service provider, was created. Shaadi.com has become the foremost matching brand on the Internet, and the first business of its type in the world, with over 35 million users and millions of success stories to its credit.
Similarly, Anupam launched Makaan.com, India’s fastest-growing online real estate platform, and Mauj Mobile, India’s top mobile media firm, both of which have swiftly become household brands in their respective fields.
Anupam Mittal – Investments Besides People Group
Anupam is also a successful angel investor, having made over 200 investments in companies such as Big Basket, Interactive Avenues, Ola Cabs, Druva, Fab Hotels, PropTiger, DocsApp, Rupeek, Porter, Ketto, Trell, Lets Venture, others. He advises and invests in some of India’s top venture capital businesses.
He is enthusiastic about entrepreneurship and innovation and is well-known for his knowledge and perspectives on the subject. Anupam is the founding Co-chair of H2 India and a founding member and past chairman of the Internet & Mobile Association of India (IAMAI).
Anupam Mittal – Shark Tank India
Mittal has been a “Shark” on Shark Tank India for Seasons 1, 2, and 3 on SonyLiv. In Season 1, he invested INR 5.4 crore in 25 businesses. In Season 2, he again invested INR 5.4 crore in 25 businesses. In Season 3, his investment grew to INR 8.05 crore in different companies. He will be seen in Season 4 too.
In Shark Tank India, Anupam Mittal is considered a seasoned entrepreneur and investor known for his expertise in startups and business growth.
Anupam Mittal has been awarded with various awards and recognitions:
In 2011, Mittal won the award for the most innovative company in India from Fast Company, a US business magazine.
He received the Karmaveer Chakra Award for Entrepreneurs for Social Change.
Business Standard named him the top angel investor in 2014 and 2015 for investing in 25 and 34 start-ups.
In 2016, Forbes listed him as one of India’s 8 most prominent angel investors.
In 2020, he won the TiE Award for Outstanding Serial Entrepreneur and Angel Investor.
He was also ranked among the 50 Most Powerful People in India by The Week.
Conclusion
Anupam Mittal was named one of India’s 50 Most Influential People by Business Week, and TiE recognized him Outstanding Serial Entrepreneur & Angel Investor in January 2020. In addition, he received the Karmaveer Puraskar (Award for Social Justice and Citizen Action) in the area of “Entrepreneur for Social Change.”
Anupam Mittal became India’s number-one matchmaker thanks to his matrimonial website. Multiple people look up to the businessman who wears many hats today.
FAQs
What is Anupam Mittal’s age?
Anupam Mittal was born on 23 December 1971. He is 54 years old.
What is the net worth of Anupam Mittal?
The net worth of Anupam Mittal is around $23 million (Rs. 185 crores).
Who is Anupam Mittal wife?
Aanchal Kumar is the wife of Anupam Mittal.
Is Anupam Mittal an angel investor?
Yes, Anupam Mittal is amongst the most active angel investors in India.
How many deals did Anupam Mittal make in Shark Tank India?
Anupam Mittal made 24 Business deals in Shark Tank India.
What amount did Anupam Mittal invest in the Shark Tank India show?
Anupam Mittal invested $656.35K (Rs. 5.4 crores) in 24 startups in Shark Tank India.
Which are the top startups among Anupam Mittal’s investments?
Some of the top startups Anupam Mittal invested in are:
Ola
BigBasket
Rupeek
Druva
LittleEyeLabs
Who is Shaadi.com founder?
Anupam Mittal is the founder and CEO of Shaadi.com.
How did Anupam Mittal make money?
Anupam Mittal made money by founding Shaadi.com and investing in startups as an angel investor.
What is Anupam Mittal education?
Anupam Mittal studied at Boston College in the USA, earning an MBA in Operations and Strategic Management.
BlackBuck is an incredibly popular digital platform for trucks. BlackBuck is considered the pioneer in the field of trucking. The company has introduced a new and organized pathway for making trucking convenient for all shippers and truckers. Basically, it’s a tech-enabled platform for logistics services to shift conventional trucking to a digital platform.
The company is working towards making truckload bookings and moving them at the utmost capacity. The shippers would have all the required information about the whereabouts of truckers.
BlackBuck was founded in 2015 and has brought remarkable development in the field of trucking operations. Legally, BlackBuck is termed as Zinka Logistics Solutions Pvt. Ltd. It is headquartered in Bengaluru, Karnataka, India.
BlackBuck helps the shippers to have access to a suitable truck at an accurate time for the right place, just by pressing a button. The company has partnered with the World Bank and the Indian Government on various important policies including the Goods & Service Tax (GST), E-Way Bill, and many others.
Zinka Logistics, the parent organization of BlackBuck recently launched its IPO on 13th November 2024.
In this article, we will be discussing the BlackBuck Business Model, how BlackBuck makes money as well as the strategies opted by BlackBuck for its immense success.Let’s get started!
BlackBuck is the leading as well as the largest trucking network in India. The company has put great effort into shifting trucking to the digital platform and enabling the shipper with the right trucker or reshaping the trucking infrastructure in order to simplify payments, financial services, and insurance.
BlackBuck’s strong technology helps it to provide efficiency, dependability, and seamless experience to the truckers as well as shippers.
BlackBuck has a hugely strong team of over 2000 people and holds the best sets of investors including Apoletto Asia, Goldman Sachs, Light Street, Sequoia Capital, Accel Partners, Tiger Global, and IFC.
The company deals with more than 10,000 clients onboard across 3000+ villages along with 400+ industrial centers and over 3,00,000 truckers. It formerly received ‘CNBC-TV18- Young Trucks Startup of the Year‘ and the ‘Zee Business- Company of the Year Logistics’ in 2018. BlackBuck’s company logo marks the beginning of a new path.
BlackBuck company functions in more than 200 cities across India. The track records of the distributed assets to the truck drivers in all these cities became quite difficult to manage and organize through a spreadsheet. In the upcoming years, the company is prepared to expand its territory and enlarge its assets to more cities to facilitate the services.
Key Features of BlackBuck
BlackBuck utilizes various advanced technologies in the field of logistics. The company comes up with tons of features, but the most effective are:
Quality benchmark
Monitoring and controlling
Direct procurement channels
BlackBuck Business Model
BlackBuck follows business-to-business (B2B) as well as business-to-consumer (B2C) models. BlackBuck company works towards upgrading the logistics services for the truckers. It contributes towards dealing with the major issue of trucks returning empty.
The company designed its business model in such a manner that its trucks can be reassigned from their definite location for another trip so that the customers would get better prices and pay for the return trip and most importantly, a lower carbon footprint.
BlackBuck used to function with spreadsheets to keep track of its assets and trips. But, with the increased number of registered trucks and shippers, the management became very tough and complicated. That’s why the company is putting major research into a better solution for this problem and seeing more options in hand.
How Does BlackBuck Make Money?
BlackBuck charges a small amount of fees from its customers at a fixed rate for the contract business. It generates a huge fraction of its money by charging the customers as well as the truck owners a commission of around 15-20% depending on the freight value.
Blackbuck Logistics Company provides all the required facilities to the registered trucks for a smooth truck race. With its advanced technology, BlackBuck takes trucking to the next level in the industry.
BlackBuck is upgrading logistics into an absolutely reliable and efficient at country level. BlackBuck made a net profit of INR 28.67 crore in Q1 FY25, compared to a net loss of INR 35.93 crore in the same quarter in FY24. Blackbuck’s revenue from operations grew by nearly 55%, reaching INR 92.16 crore, up from INR 59.46 crore in the previous year.
BlackBuck YoY Topline Growth
BlackBuck’s operating revenue grew from INR 119 crore in 2022 to INR 176 crore in 2023, reaching INR 297 crore in 2024. Commission income increased from INR 75 crore in 2022 to INR 127 crore in 2024, and subscription fees went up from INR 39 in 2022 crore to INR 117 crore in 2024. Service fees also rose from INR 4 crore in 2022 to INR 13 crore in 2023, reaching INR 51 crore in 2024.
BlackBuck raised funding worth $364 million in around 9 funding rounds. In its last funding round, the company raised $67 million from prominent investors including VEF, Tribe Capital, and Emerging Asia Fund in 2021. This increased BlackBuck’s valuation up to $1.02 billion and took it to the list of unicorns in space at 2nd after its biggest competitor Rivigo.
Competitors of BlackBuck
BlackBuck is immensely famous in the logistics sector. With its advanced technology and features, it’s known to be quite distinguished. As the leading and largest logistics services provider, many companies are up to beat BlackBuck. But, its top competitors in the market are Delhivery, BlownHorn, Rivigo, Xpressbees, and ElasticRun.
Conclusion
BlackBuck has worked enormously in the field of logistics services and ought to make the procedure convenient and efficient. The company utilizes advanced technology in trucking services and develops a huge customer base, resulting in great deals.
The company follows both B2B and B2C business models. Its major source of revenue is from the commission it charges from the customers and truckers which is 15-20%. BlackBuck is one of the largest logistics services providers in India and is working on improving trucking more efficiently.
FAQ
What does Blackbuck company do?
BlackBuck company helps move goods across India. It connects truck owners with businesses that need to transport goods. It also uses technology to make trucking easier and more efficient.
What is BlackBuck company?
BlackBuck is an Indian logistics company that connects trucks with businesses for goods transport.
Is BlackBuck a unicorn?
Yes, BlackBuck is the first logistic startup to turn unicorn in 2021.
Who is BlackBuck company owner?
Rajesh Yabaji is the co-founder and CEO of BlackBuck.
Kodak, as we know it today, was founded in the year 1888 by George Eastman as ‘The Eastman Kodak Company’. It was the most famous name in the world of photography and videography in the 20th century. Kodak brought about a revolution in the photography and videography industries. At the time when only huge companies could access the cameras used for recording movies, Kodak enabled the availability of cameras to every household by producing equipment that was portable and affordable.
Kodak was the most dominant company in its field for almost the entire 20th century, but a series of wrong decisions killed its success. The company declared itself bankrupt in 2012. Why did Kodak, the king of photography and videography, go bankrupt? What was the reason behind Kodak’s failure?Why did Kodak fail despite being the biggest name of its time? This case study answers the same.
Kodak, for many years, enjoyed unmatched success all over the world. By 1968, it had captured about 80% of the global market share in the field of photography.
Kodak adopted the ‘razor and blades’ business plan. The idea behind the razor-blade business plan is to first sell the razors with a small margin of profit. After buying the razor, the customers will have to purchase the consumables (the razor blades in this case) again and again; hence, sell the blades at a high-profit margin. Kodak’s plan was to sell cameras at affordable prices with only a small margin for profit and then sell the consumables such as films, printing sheets, and other accessories at a high-profit margin.
Using this business model, Kodak was able to generate massive revenues and turned into a money-making machine.
As technology progressed, the use of films and printing sheets gradually came to a halt. This was due to the invention of digital cameras in 1975. However, Kodak dismissed the capabilities of the digital camera and refused to do something about it. Did you know that the inventor of the digital camera, Steven Sasson, was an electrical engineer at Kodak when he developed the technology? When Steven told the bosses at Kodak about his invention, their response was, “That’s cute, but don’t tell anyone about it. That’s how you shoot yourself in the foot!”
Steven Sasson with the First-Ever Digital Camera in 1975
Kodak ignored digital cameras because the business of films and paper was very profitable at that time and if these items were no longer required for photography, Kodak would be subjected to huge losses and end up closing down the factories which manufactured these items.
The idea was then implemented on a large scale by a Japanese company by the name of ‘Fuji Films’. And soon enough, many other companies started the production and sales of digital cameras, leaving Kodak way behind in the race.
This was Kodak’s first mistake. The ignorance of new technology and not adapting to the changing market dynamics initiated Kodak’s downfall.
After the digital camera became popular, Kodak spent almost 10 years arguing with Fuji Films, its biggest competitor, that the process of viewing an image captured by the digital camera was a typical process and people loved the touch and feel of a printed image. Kodak believed that the citizens of the United States of America would always choose it over Fuji Films, a foreign company.
Fuji Films and many other companies focused on gaining a foothold in the photography & videography segment rather than engaging in a verbal spat with Kodak. And once again, Kodak wasted time promoting the use of film cameras instead of emulating its competitors. It completely ignored the feedback from the media and the market. Kodak tried to convince people that film cameras were better than digital cameras and lost 10 valuable years in the process.
Kodak also lost the external funding it had during that time.
Kodak’s Management Ignored Change
Around that time, a magazine stated that Kodak was being left behind because it was turning a blind spot to new technology. The marketing team at Kodak tried to convince the managers about the change needed in the company’s core principles to achieve success. But Kodak’s management committee continued to stick with its outdated idea of relying on film cameras and claimed the reporter who said the statement in the magazine did not have the knowledge to back his proposition.
Kodak failed to realize that its strategy which was effective at one point was now depriving it of success. Rapidly changing technology and market needs negated the strategy.
When Kodak finally understood and started the sales and the production of digital cameras, it was too late. Many big companies had already established themselves in the market by then and Kodak couldn’t keep pace with the big shots.
In the year 2004, Kodak finally announced it would stop the sales of traditional film cameras. This decision made around 15,000 employees (about one-fifth of the company’s workforce at that time) redundant. Before the start of the year 2011, Kodak lost its place on the S&P 500 index which lists the 500 largest companies in the United States on the basis of stock performance. In September 2011, the stock prices of Kodak hit an all-time low of $0.54 per share. The shares lost more than 50% of their value throughout that year.
Diversified into Unrelated Businesses
Kodak’s decline wasn’t just due to not adopting digital photography. The company made several bad decisions, like diversifying into unrelated businesses such as chemicals and healthcare, which took focus and resources away from its main photography business.
Mismanaged Intellectual Property
Kodak didn’t manage its patents well and refused to license its technologies to competitors. This made it harder to adapt, allowing rivals to take the lead and speed up Kodak’s downfall.
Misjudging Market Trends and Customer Needs
The management wrongly thought that the shift from film to digital would take time. They didn’t expect consumers to switch to digital cameras and smartphones so quickly. Kodak’s failure to understand the market and customer needs made things worse and sped up their decline. People also realized that digital photography was way ahead of traditional film photography. It was cheaper than film photography and the image quality was better.
Acquisition of Ofoto
Kodak made a smart move by buying the photo-sharing site Ofoto in 2001, but it missed a big opportunity. Instead of embracing its slogan “share memories, share life,” Kodak focused on using Ofoto to promote printing digital photos. If Kodak had rebranded Ofoto as Kodak Moments and expanded it into a social platform, it might have led the way in sharing photos and updates online. Instead, Kodak sold Ofoto to Shutterfly for less than $25 million in 2012 as part of its bankruptcy plan. Kodak invested its funds in acquiring many small companies, depleting the money it could have used to promote the sales of digital cameras.
Kodak’s Failure Represented In Graph
Kodak’s Bankruptcy Protection
By January 2012, Kodak had used up all of its resources and cash reserves. On the 19th of January in 2012, Kodak filed for Chapter 11 bankruptcy protection which resulted in the reorganization of the company. Kodak was provided with $950 million on an 18-month credit facility by the CITI group.
The credit enabled Kodak to continue functioning. To generate more revenue, some sections of Kodak were sold to other companies. Along with this, Kodak decided to stop the production and sales of digital cameras and stepped out of the world of digital photography. It shifted to the sale of camera accessories and the printing of photos.
Kodak had to sell many of its patents, including its digital imaging patents, which amounted to more than $500 million in bankruptcy protection. In September 2013, Kodak announced it had emerged from Chapter 11 bankruptcy protection.
Ressurection of Kodak: Kodak in the mobile industry?
Celebrated camera accessory manufacturers of yesteryear, Kodak, is looking to join Chinese smartphone manufacturing giant Oppo for an upcoming flagship smartphone. This new smartphone is rumored to have 50MP dual cameras, where the cameras of the device will be modeled upon the old classic camera designs of the Kodak models.
The all-new flagship model of Oppo was designed to be a tribute to the classic Kodak camera design. The camera of this Oppo model will allegedly use the Sony IMX766 50MP sensor. Furthermore, the phone will also embed a large sensor in its ultrawide camera as well along with a 13MP telephoto lens and a 3MP microscope camera.
No other information on this matter is currently available as of November, 2024.
The collaborations between Android OEMs and camera makers are not something new. Yes, numerous other companies have already come together with other camera manufacturing companies like Nokia, which joined hands with German optics company Carl Zeiss earlier in 2007 to bring in the camera phone Nokia N95. This can be concluded as the first of such collaborations that the smartphone industry has seen. Numerous other collaborations happened eventually, which resulted in outstanding results. OnePlus’ partnership with Hasselblad, Huawei pairing up with Leica and the recent news of Samsung’s associating with Olympus are some of the significant collaborations to be mentioned.
Kodak had earlier made a leap into the smart TV industry and is ushering in success through this new move. Kodak TV India has already commissioned a plant in Hapur, Uttar Pradesh in August 2020, designed to manufacture affordable Android smart TVs for India. Furthermore, the renowned photography company is looking to invest more than Rs 500 crores during the next 3 years for making a fully automated TV manufacturing plant possible in Hapur. The company committed to this plan as part of its ‘Make in India’ initiative and will leverage its Android certification. Kodak’s announcement, as it seemed, was further recharged with the Aatmanirbhar Bharat campaign launched by PM Narendra Modi in the wake of the coronavirus pandemic in 2020.
The TV industry of India imports most of its raw materials and exhibits a value addition of only about 10-12%. However, with the investment that Kodak has promised the company has aimed to increase the value-added to around 50-60%. The Hapur R&D facility will foster the manufacturing of technology-driven products and introduce numerous other lines of manufacturing aligned with the “Make in India” belief.
Super Plastronics Pvt Ltd, a Noida-based company has obtained the license from Kodak Smart TVs to produce and sell their products in India in partnership with the New-York based company and has already launched a range of smart TVs already, as of September 2021 including:
Kodak’s failure was due to its inability to adapt to changing technology and market trends. The company stuck to outdated strategies, ignored digital innovation, and made poor business decisions. While Kodak had opportunities to lead in the digital era, its reluctance to change and focus on old products led to its downfall. The company’s story highlights the importance of staying flexible and responding quickly to market shifts.
FAQs
What happened to Kodak, why did kodak go out of business?
Kodak was ousted from the market of camera and photography due to numerous missteps. Here are some insights into the same:
The ignorance of new technology and not adapting to changing market needs initiated Kodak’s downfall
Kodak invested its funds in acquiring many small companies, depleting the money it could have used to promote the sales of digital cameras.
Kodak wasted time promoting the use of film cameras instead of emulating its competitors. It completely ignored the feedback from the media and the market
When Kodak finally understood and started the sales and the production of digital cameras, it was too late. Many big companies had already established themselves in the market by then and Kodak couldn’t keep pace with the big shots
In September 2011, the stock prices of Kodak hit an all-time low of $0.54 per share
Kodak declared bankruptcy in 2012
Give 5 reasons why Kodak failed and what can you learn from its demise?
Below are the main 5 reasons why Kodak failed:
Failure to Adapt to Digital Innovation
Kodak’s Management Ignored Change
Diversified into Unrelated Businesses
Mismanaged Intellectual Property
Misjudging Market Trends and Customer Needs
Acquisition of Ofoto
Kodak failed to understand that its strategy of banking on traditional film cameras (which was effective at one point) was now depriving the company of success. Rapidly changing technology and evolving market needs made the strategy obsolete.
Is Kodak still in business?
Kodak declared itself bankrupt in 2012. Kodak’s bankruptcy resulted in the formation of the Kodak Alaris company, a British organization that part-owns the Kodak brand along with the American Eastman Kodak Company.
When did Kodak go out of business?
Kodak faced its demise in 2012.
Is Kodak a good camera?
Kodak’s cameras and accessories were of premium quality and the first of the choices professional photographers and others. The company was a winner in the analogue era of photography. However, the company dived down to hit the rock-bottom level.
What does Kodak do now?
Currently, Kodak provides packaging, functional printing, graphic communications, and professional services for businesses around the world. Better known for making cameras, Kodak moved into drug making and has secured a $765m (£592m) loan from the US government in 2020.
Why was Kodak so successful?
Kodak adopted the ‘razor and blades’ business plan. The idea here was to first sell the razors with a small margin of profit. After buying the razor, the customers will have to purchase the consumables (the razor blades in this case) again and again; hence, sell the blades at a high-profit margin. Kodak’s plan was to sell cameras at affordable prices with only a small margin for profit and then sell the consumables such as films, printing sheets, and other accessories at a high-profit margin.
On 17 November 2024, online travel agency MakeMyTrip announced that it would purchase CRED’s Happay Expense Management Platform. MakeMyTrip hopes to establish itself as the leading platform for all-inclusive business travel and cost management solutions with this acquisition. “By concentrating on innovation and a smooth user experience, we have continuously outpaced industry growth in the corporate travel sector over the past few years,” MakeMyTrip said in a statement.
Happay, an expense management platform that simplifies corporate spending, reimbursements, and expense tracking for organisations, was founded in 2012 by Anshul Rai and Varun Rathi. In 2021, CRED purchased the company for $180 million.
Details of the Agreement
The Happay brand, its cost management division, and its committed staff will switch to MakeMyTrip in accordance with the terms of the agreement. The team and payments division of Happay, which has concentrated on creating a cutting-edge technological stack and business payments solutions, will stay with CRED.
By emphasising innovation and a smooth user experience, MakeMyTrip has continuously surpassed industry growth in the business travel sector over the last four years, according to Rajesh Magow, the company’s co-founder and group CEO.
It makes sense for MakeMyTrip to take the lead in this market by acquiring Happay’s name and spending management system. He claimed that MakeMyTrip is poised to once again raise the bar for corporate travel and cost management in India by incorporating Happay’s experience, which includes more than 900 corporate clients.
In the following 90 days, the deal should be finalised. According to Kunal Shah, the creator of CRED, the organisation is committed to creating solutions that facilitate financial advancement. The business is putting both teams, who have developed industry-leading products and capabilities, in a position to grow in their respective fields by allowing each vertical to play to its strengths. The company is thrilled about the payments team’s chance to make B2B payments a smooth, dependable, and quickly expanding experience.
Financial Dynamics of MakeMyTrip
In addition to providing services including airline tickets, hotels and other lodging, vacation planning and packages, rail and bus tickets, auto rentals, and forex services, MakeMyTrip is the owner and operator of several web brands, including MakeMyTrip, Goibibo, and RedBus. In the second quarter of this fiscal year, it reported revenue of $211 million, up 24% year-over-year, and a profit of $17.9 million, up from $2 million in the same period last year.
The company’s official financial statement claims that MakeMyTrip currently serves over 450 major corporate clients through Quest2Travel, a platform designed for large corporations, and over 59,000 corporate clients through MyBiz, a platform designed for small and medium-sized corporates.
Ranveer Singh, a well-known Bollywood actor, has stepped outside of the movie business by establishing SuperYou, a line of protein foods and supplements that he co-founded with Nikunj Biyani. With 10 grammes of protein, 3 grammes of fibre, and no added sugar, the snack combines taste and nutrition. The pair introduced what they say is India’s first protein wafer bar.
SuperYou, which uses fermented yeast protein technology to make protein more accessible to a variety of consumers, is supported by the venture capital firm Think9 Consumer. With four distinct flavors—chocolate, strawberry crème, choco-peanut butter, and an unexpected cheese variant—the wafer snacks are designed to appeal to Indians of all ages.
Speaking about the partnership, Ranveer Singh stated that he is sharing a piece of his personal experience with everyone through SuperYou. He has always held the view that one’s inner strength and boundless energy originate from inside, but occasionally one needs an extra push. That push, that energy at a bar that is open to anyone, is what SuperYou is all about. The company has produced a unique product that is as entertaining and daring as it is beneficial to its customers. Singh wanted to redefine the ideal protein bar with SuperYou, so the company has given it personality, exciting flavours, and a lightness that complements any lifestyle. “Get ready, because SuperYou is here to power up your world,” he said.
Making Protein Consumption More Equitable
With the goal of expanding protein consumption and making it pleasurable for everyone, SuperYou aims to transform the protein landscape in India. With a five-year revenue objective of INR 500 crore, the brand announced an investment of INR 40-50 crore spread over 18-24 months. It also intends to increase the product line to include morning cereals, biscuits, and protein powders.
Ranveer is a force to be reckoned with; he doesn’t merely exist; he seizes every opportunity that comes his way. That’s what SuperYou is all about. For anybody who aspires to be big, bold, and vibrant, Firm wanted SuperYou to be the go-to boost, according to Nikunj Biyani. The goods are made to appeal to everybody who wants to live a healthier lifestyle, not just gym-goers.
Hitting the Online Market
All major delivery platforms like Amazon, Flipkart, Zepto, Blinkit, and Instamart will soon have SuperYou available on their website. Additionally, select modern trade stores like Reliance Fresh, Smart Bazaar, FreshPik, Noble Plus, Wellness Forever, Relay, Vendiman, and more across 10 cities will soon have it as well.
Ranveer Singh‘s distinctive enthusiasm is on full display in a new advertising campaign for SuperYou, which promotes the launch and stresses the need for easy, nutritious protein sources for people of all ages. In keeping with Singh’s energetic character and dedication to exercise, the commercial highlights a new approach to protein snacking.
The Competition Commission of India hit WhatsApp and its parent company Meta with an INR 213.14 crore (roughly USD 25.3 million) fine on 17 November for violating the Competition Act and abusing its dominant position through the 2021 update to WhatsApp’s privacy policy. WhatsApp has been directed by the CCI to refrain from sharing user data for advertising reasons with other Meta firms (like Facebook and Instagram) for a period of five years.
Additionally, the CCI has prohibited WhatsApp from requiring user data sharing with Meta firms in order to utilise its services in India. WhatsApp’s policy must outline the kind of data that is provided and the reasons behind them when it comes to Meta companies and goods for purposes other than advertising. Users of WhatsApp must be given the option to opt out of data sharing and change their preferences in-app if their data is shared for purposes other than delivering WhatsApp services. All users, including those who approved the 2021 upgrade, must have access to this option.
Online Network of WhatsApp and Meta Companies
The CCI claimed in a press release that WhatsApp‘s 2021 policy change, which eliminated the previous opt-out option and required users to agree to the new terms, including data sharing with Meta, was an “unfair condition” under the Competition Act.
According to the report, all users were forced to “accept expanded data collection terms and sharing of data within Meta Group without any opt-out” as a result of the update. It claimed that the policy update compelled users to comply, weakened their autonomy, and indicated that Meta had exploited its dominating position due to the network effect and a lack of viable alternatives.
Creating Entry Barriers to Rival Firms
The CCI further claimed that by exchanging WhatsApp user data amongst Meta businesses for objectives other than delivering WhatsApp services, Meta’s competitors were prevented from entering the market and were denied access to the display ad market. WhatsApp’s 2021 privacy policy modification has drawn criticism worldwide for violating users’ privacy and raising antitrust issues. In August 2024, a Brazilian judge banned WhatsApp from exchanging data with Facebook and Instagram within the nation. According to a Meta representative, they intend to challenge the CCI’s ruling.
The company intends to appeal the CCI’s ruling because it disagrees with it. As a reminder, the 2021 upgrade was available to users at the time and did not alter the privacy of their private communications. A spokesperson for the company also confirmed that the update did not result in the deletion of any accounts or the loss of WhatsApp functionality.
In March 2021, CCI launched an inquiry into WhatsApp’s January 2021 upgrade. Because the policy change had been contested in both the Delhi High Court and the Supreme Court, Meta (formerly Facebook) and WhatsApp had petitioned the Delhi High Court to halt this probe.
WhatsApp’s case was denied by a single-judge panel led by Justice Navin Chawla in April 2021. In August 2022, a division bench consisting of Justice Subramonium Prasad and then Chief Justice Satish Chandra Sharma dismissed the appeal that Meta (formerly Facebook) and WhatsApp had filed against the ruling.
Nitin Konde
