Rishabh Sood, co-founder and CTO of BluSmart discusses his founder journey, building a sustainable business and adoption of EVs with host Gautam Srinivasan.
Over the past decade, the Indian Startup Ecosystem has undergone an exceptional evolution, surfacing as a vibrant and dynamic landscape for entrepreneurs. India is hosting a plethora of startups ranging from tech-driven to those focused on social impact and sustainability.
The “Crafting Bharat – A Startup Podcast Series” powered by AWS, and an initiative by NewsReach, in association with VCCircle, unlocks the secrets behind these successful entrepreneurs’ journeys aiming to equip aspiring entrepreneurs and business enthusiasts with invaluable insights. The podcast series is hosted by Gautam Srinivasan, famed for hosting a diverse range of TV and digital programs, currently consulting editor at CNBC (India), CNN-News18, Mint, HT Media, Forbes India, and The Economic Times.
India’s rapid urbanization is contributing to rising pollution levels, but visionary founder Rishabh Sood, co-founder and CTO of BluSmart is revolutionizing the ride-hailing sector with electric vehicles (EVs). In the Crafting Bharat Podcast Series, Sood talks about his founder’s journey, building a sustainable business, and adoption of EVs.
Explore the tales of Indian startup founders’ transformation from dreams to reality, navigating challenges to seize opportunities through the Crafting Bharat Podcast Series.
How did you scale up but remain close to your customers in identifying their pain points, and, once you solve those issues, how do you keep the product relevant?
The idea is that when you scale you need to do things which do not scale. Many companies do this when they scale, they start looking at customers as the data points. They will make pie charts and try to figure out why their customers are unhappy, we also did that but what we also did was to always try to maintain our ground connect, so, we would become customer support agents for a day and receive customer complaints, feel the pain & anger, and empathize with them. This is what helps us to stay relevant, we physically go through individual complaints. The idea is to capture the emotion. When you start looking at the suggestions or feedback as data points and in pie charts, you lose the emotion out of it.
You could iron out the issues with a unique full-stack playbook that learnt from degraded user experiences of your competitors due to their asset-light models and resolve these issues to create a WOW experience while onboarding and retaining customers?
If we built the same tech, built an aggregator model or if we get driver partners with their own cars then we will land up with the same problem, so, we fundamentally changed the business model and built the technology for it. And that is what helped us to figure out that we need to have the cars in our control, that way we can make sure that the condition is extremely good and well maintained. The schedule model was also a game changer for us and the reason for us to do a schedule model was because you cannot do a real-time ride with 70 cars.
How is AWS enabling BluSmart to power up its backend to overcome issues around quick ride-matching, zero downtime, etc., and save operational costs while supporting your net-zero ambitions?
AWS has been a trusted and supportive partner for us right from day one. We’ve built a lot of technology and machine learning algorithms for our scheduled ride model wherein we were able to make sure the car reaches on time. 97% of our rides are reaching in time with zero cancellations. We had to predict time required for a ride during different times of the day for which we built out machine learning models which we are running on the AWS infrastructure, and it’s been running smoothly.
Segment 2: The Accelerator
What’s the one lesson from BluSmart’s relatively slow expansion strategy that startup founders can learn from?
We started with Delhi and today we have 7000 cars spread across just two cities; Delhi and Bangalore but these are big markets. I would say if you’re able to succeed in Delhi then there is no reason why you will not be able to go to any other city and succeed. That’s what you need to do, even when you are going slow you need to build things with scale.
What’s the best mantra to maintain long-lasting co-founder relationships?
I think what it really boils down to is trusting each other and having confidence in the ability of each other but at the same time you need to question and push each other as well. You need to maintain that balance of trusting but also really push and ask questions.
India’s startup ecosystem is undergoing a significant transformation as the motivated founders lead with exceptional innovation. The passion and vision of the entrepreneurs is keeping the Indian startup ecosystem in motion.
Stay tuned to the Crafting Bharat Podcast Series as they bring you these inspirational entrepreneurs for insightful and candid discussions with Gautam Srinivasan.
This article has been contributed by Purusharth Malik, Tech Blogger and Digital Marketing Expert.
Creating engaging tech content requires a mix of creativity and strategy. Whether you’re a new tech blogger or looking to enhance your content, these straightforward tips will help you captivate your audience. As a tech blogger and digital marketer, I, Purusharth Malik, have found these strategies to be highly effective.
How to Create Engaging Tech Content
Here is the guide for bloggers, including creative tips and strategies that will help you create engaging tech content:
Identify who your readers are and what they want to read. Use tools like Google Analytics and social media insights to gather information about their interests and needs. This will help you find your content to meet their expectations.
Example: When I noticed that my followers were particularly interested in smartphone tricks, I started creating more content around lesser-known smartphone features, like the back tap feature on iPhones.
Keep Up With Tech Trends
Stay informed about the latest tech updates. Follow tech news websites, join online tech communities, and attend webinars. This ensures your content remains relevant and up-to-date.
Write Catchy Headlines
Your headline is the first thing readers see, so make it attention-grabbing. Use strong words and numbers to draw interest. There are some tools available on Google to find good headlines, you can use those tools.
Example: Instead of “New Smartphone Review,” try “10 Incredible Features of the Latest Smartphone You Need to Know About.”
Offer Valuable Content
Make sure your content is informative and helpful. Whether you’re writing tutorials, reviews, or news updates, ensure it provides value to your readers. Share your personal insights and experiences to make your posts more engaging.
Example: In my gadget reviews, I always include personal opinions about how the product performs in real-world scenarios, which helps my readers and viewers relate to the content.
Use Visuals
Use high-quality images, infographics, and videos to enhance your text. Visuals can simplify complex ideas and make your content more appealing. For example, I write articles on smartphone reviews and attach smartphone images. I also create short tech tips videos on Instagram that my followers enjoy.
Use Storytelling
Storytelling makes your content relatable and memorable. Share personal experiences or use case studies to illustrate your points. This builds a connection with your audience and makes your content more engaging. The audience enjoys this type of content.
Optimize for SEO
Improve your content’s visibility on search engines by using relevant keywords naturally. Make sure your site is mobile-friendly and loads quickly. You can use tools like Yoast SEO to help you optimize your articles.
Example: For a post about the best budget laptops, I used keywords like “best budget laptops 2024,” “affordable laptops,” and “cheap laptops with good performance.”
Encourage comments, questions, and discussions to interact with your readers. Respond to their comments to build a community around your content. You can also encourage them to connect with you on your social handles and interact with them directly.
Be Consistent
Maintain a regular posting schedule to keep your audience engaged. Use a content calendar to plan and schedule your posts. Consistency shows your dedication and helps maintain reader interest.
Example: I post new articles every Monday and Thursday, and I notify my followers in advance about upcoming topics through social media.
Analyze and Improve
Regularly evaluate your content’s performance using tools like Google Analytics. Identify what works and what doesn’t, and make necessary improvements. This helps you create better content over time.
Example: After noticing that posts with photo content had higher engagement rates, I started incorporating more photos into my articles and saw a significant increase in readership.
Top 5 Formats Offering Marketers the Highest ROI
Focus on Quality Over Quantity
While it’s important to maintain consistency, the quality of your content should never be compromised. Well-researched, high-quality articles can position you as an authority in your niche and keep your audience coming back for more.
Promote Your Content
Promote your content across multiple social media platforms to reach a wider audience. Share your posts to each platform’s strengths—use hashtags on X (Earlier Twitter), create visually appealing posts for Instagram, and share detailed updates on LinkedIn. Engaging with tech communities on platforms like LinkedIn and Quora can also drive traffic to your blog.
Example: Whenever I publish a new blog post, I create a graphic image and share that on Instagram, X with relevant hashtags, and post a detailed summary on LinkedIn.
Use Email Marketing
Building an email list allows you to share your content directly with your most engaged readers. Send regular newsletters with updates, exclusive content, and personalized recommendations to keep your audience engaged. You can add-on a column at the end of your article or website in which you can ask for emails from the readers.
Example: I send a weekly newsletter to my readers with a list of my latest posts, upcoming tech events, and exclusive tips.
Collaborate With Other Bloggers and Influencers
Collaborating with other tech bloggers and influencers can help you reach new audiences. Guest posting or participating in podcasts are excellent ways to collaborate.
Stay Authentic and Transparent
Authenticity builds trust with your audience. Be transparent about your experiences, especially when reviewing products. If an article or review is sponsored, disclose this to your readers.
Example: When I review a product sent by a company, I always disclose that in my post and ensure my review is honest and unbiased.
About the Author
Purusharth Malik is a tech blogger, digital marketer, and influencer. He also shares tech tips and reviews on his Instagram page, Techwithpuru. With an impressive track record of working with renowned smartphone companies for their tech projects and beta smartphone testing, Purusharth has become a trusted name in the realm of technology and smartphone testing.
By following these tips shared by Purusharth Malik, you can create engaging tech content that not only informs but also captivates your readers. The key to successful blogging is providing value, staying updated, and interacting with your audience.
This Father’s Day 2024, StartupTalky connected with some amazing dads in business to understand how they balance the demands of running a business with the responsibilities of fatherhood. We asked them about the strategies or tactics that have proven most effective and how being a dad has influenced their leadership and decision-making.
Their insights reveal practical approaches and personal growth from handling the role of a business leader and parent, providing valuable lessons on balancing professional ambitions with family commitments.
Balancing being a dad and running a business is like wearing many hats. I start my day with a quick run or playing badminton, and I always make time for breakfast with my family. These moments help us bond and make my kids feel loved and supported.
I ensure to make time for important events in my kids’ lives, whether it’s cheering them on at games or being there when they need me. Spending time doing things they enjoy, like art or sports, makes them see me as their hero.
Remembering special moments with my own dad, like when he taught me to play football, reminds me to create similar memories with my kids. And celebrating occasions like Father’s Day is a chance to show my family how much they mean to me.
Fatherhood has profoundly influenced my leadership and decision-making. It has taught me the importance of empathy, patience, and the value of personal connections. These qualities translate into a more compassionate and understanding leadership style at IGP.com. Ultimately, the balance I strive for between my professional and personal life not only enhances my effectiveness as a CEO but also fortifies the foundation of my family life, which in turn, fuels my drive and vision for the future.
Manish Mohta, Director of Learning Spiral
Manish Mohta, Director of Learning Spiral
Managing and directing a business while fulfilling fatherhood responsibilities is a delicate balancing act. While managing both roles, I discovered that effective time management, task delegation, open communication, scheduling flexibility, and prioritizing self-care are essential. I’ve been able to strike a good work-life balance by setting clear boundaries, delegating tasks to capable individuals, keeping open lines of communication, adapting to unexpected circumstances, and ensuring personal well-being. This balancing act has greatly influenced my leadership style and decision-making as a company director.
Fatherhood has instilled in me qualities like patience, empathy, and long-term thinking, which have resulted in a more compassionate and understanding approach to leadership. While understanding the importance of work-life balance, I strive to make decisions that benefit both the business and the well-being of my team members. Being a father has shaped me into a more considerate and thoughtful leader, guiding my decisions with a human-centric perspective alongside strategic business goals.
Juggling business ownership and fatherhood can feel like a constant three-ring circus, but I’ve found a few key strategies that help me balance both. First, it’s all about clear priorities and scheduling. I block out dedicated times for work tasks and family activities, allowing me to be fully present in each moment. Building a strong, empowered team has been a game-changer. Delegating tasks and fostering collaboration frees up time for dad duty, and knowing things run smoothly even when I’m not there gives me peace of mind. Open communication is key, both with my team and my family.
Setting expectations and being flexible allows for adjustments, whether it’s a late client call or a last-minute school play. But the biggest surprise has been how fatherhood has shaped me as a leader. It’s instilled a deep sense of empathy and patience, which helps me understand and motivate my team.
Teaching and nurturing my kids has translated into a more collaborative and supportive leadership approach. Fatherhood has also made me hyper-aware of time, forcing me to be efficient in my decision-making. It’s all about prioritizing strategically for both my business and my family.
Edul Patel, CEO and Co-founder of Mudrex
Edul Patel, CEO and Co-founder of Mudrex
Balancing business and fatherhood is challenging but rewarding. I prioritize time management by scheduling dedicated family time, even amidst a busy workday. Adjusting according to the needs of my newborn and spending as much time as I can with him are paramount. My son will be turning one this month and is curious about little things when he looks at light or rain. Nurturing his curiosity is a joy, and my wife and family have been the biggest support system in this journey. Leveraging this strong support system at home and delegating effectively at work helps maintain this balance.
Being a dad has profoundly influenced my leadership, instilling patience, empathy, and a focus on long-term goals. It has also enhanced my decision-making, making me more mindful of the impact on employees’ families. Fatherhood reminds me daily of the importance of nurturing growth, whether in my child or my company.
Pulkit Arora, Director of CYK Hospitalities
Pulkit Arora, Director of CYK Hospitalities
It’s a never-ending struggle, but juggling the demands of running a company and being a father has greatly influenced my style of leadership and decision-making. Setting distinct boundaries between business and family life is essential, as I’ve discovered over the years. This entails planning a regimented timetable that permits me to spend quality time with my kid; for example, I may set out specific hours for family-only activities and refrain from taking business calls during these periods. This framework guarantees my complete presence in both positions and aids in the maintenance of a healthy work-life balance.
My leadership style has been greatly impacted by being a father. Being a parent instils values such as patience, empathy, and the value of listening—qualities that are as important in the workplace. I’ve discovered how to put these abilities to use leading my team and creating a compassionate and encouraging work atmosphere. For example, I try to pay equal attention to my employees’ worries and recommendations as I do to my child’s needs, and this has improved team cohesion and morale.
In addition, the responsibilities that come with becoming a father have highlighted how crucial stability and long-term planning are. I think about my family’s and my company’s future consequences while making decisions, in addition to their immediate effects. Given that my actions now will have an impact on my child’s future, this viewpoint has motivated me to place a high value on ethical behaviour and sustainable progress.
Achieving a balance between job and fatherhood requires leading by example. I want to set an example of diligence, morality, and tenacity for my child. She is too little to participate right now, but eventually, she will have ambition and a sense of accountability if she is involved in my commercial endeavours.
Vijai Subramaniam, Chairman and Founder of Royaloak Furniture
Vijai Subramaniam, Chairman and Founder of Royaloak Furniture
As a founder of Royaloak Furniture, I constantly feel under pressure to be innovative and drive growth. Sometimes it can be overwhelming. But when I step into my house and see my children’s faces light up, it is like a moment of reckoning. It reminds me that success is more than just numbers on a balance sheet; it is about the legacy I leave behind for my children.
Entrepreneurship takes dedication but being a dad is way stronger than that. It means being there even amidst business turbulence. Those stolen moments of playing in forts with them, reading them bedtime stories, and showing them why hard work never ends, are true happiness.
Fatherhood has actually made me a better entrepreneur. Patience, resilience, and thinking outside the box are some of the things that fatherhood has taught me. My kids push me into taking calculated risks and teach me resourcefulness, enabling me to build something they will proudly claim as theirs in future.
There isn’t any perfect formula for balancing everything out. However, for me, it’s all about setting limits. My team understands how much my family time means to me. And my phone stays hidden whenever I’m around my kids for they deserve my total attention just as much as my company does.
The balance is not always easy to find, but it is the most rewarding challenge I have ever faced. Therefore, this Father’s Day I urge all dads out there to take both sides of this coin. Chase your dreams with all the passion you can muster, but don’t let go of the happiness that comes with being a father. Believe me when I say, the returns are infinite.
Anirrud Goswami, Co-Founder of AstroJudge
Anirrud Goswami, Co-Founder of AstroJudge
Work is meant to be fun and joyful. That’s what my Co-Founder Pushpanjali and I firmly believe in and we have established this as one of our core values at our startup AstroJudge, right from the get-go. Even in our parenthood journey, we have always shared duties and responsibilities equally amongst the both of us so we don’t compromise on the quality of time we spend with our toddler at home. If you focus on the quality of time spent – both at work and at home – it ceases to be a challenge.
As a father, I’m also deeply empathetic to the needs of young parents who order their children’s astro reports from us. Each prediction we provide in the astro reports is written to help parents cherish their children and this impacts their parenthood journey positively. All this stems from a personal family life where I am content. Work and family time have to go hand-in-hand in my humble view. Keeping reasonable work hours, scheduling work meetings effectively within the work-day and keeping the weekends mandatorily off for all team members – are some of the small but effective strategies that we follow at our startup.
Gaurav Bhagat, Managing Director and Founder of Consortium Gifts
Gaurav Bhagat, Managing Director and Founder of Consortium Gifts
Being a father and managing a business together is challenging but extremely rewarding. Two events in my past come to mind when I think back: launching my own company in my late teens and becoming a father in my early thirties. I had to reevaluate my priorities in order to manage the demands of both my new fatherhood responsibilities and the difficulties of being an entrepreneur.
Setting aside meaningful time for my family is one tactic that works well for me. Research indicates, such as that published in the Harvard Business Review, that children do best when they have deep and meaningful relationships with their parents. When I go back to my own early years, I cherish the memories of family vacations and bedtime stories. I now make it a point to plan regular family time and to give myself complete attention during these times, avoiding social media and other distractions.
Preserving a solid rapport with my partner is equally important. According to research published in the Journal of Marriage and Family, having children often causes stress in marriages. I make it a point to spend quality time with my spouse and encourage them through difficult times in order to maintain our relationship.
Our journey has been greatly simplified by the assistance of our grandparents. In the modern era of nuclear families, grandparents are extremely important to our kids. Research demonstrates that children who have engaged grandparents typically have improved emotional well-being (e.g., University of Oxford studies). With their help, I’m able to better balance my professional obligations and make sure my kids get more love and attention.
I find that outsourcing mundane chores, such as hiring a part-time cleaner or a babysitter for date evenings, makes it easier for me to manage my work and personal life.
In conclusion, these techniques improve my leadership and decision-making abilities in addition to assisting me in navigating the challenges of managing a company and being a father. I’m setting the stage for a better, more rewarding future for my family and my company by devoting time and energy to these areas today.
Pankaj Sharma, President of The Lexicon Group of Institute and Chairman & MD of Pune Times Mirror, Civic Mirror & MultiFit
Pankaj Sharma, President of The Lexicon Group of Institute
The birth of Lexicon happened when my children were 6-8 years old, marking the onset of a profound journey where fatherhood and entrepreneurship seamlessly intertwined, shaping me into the person and leader I am today.
As a father, my approach has always been rooted in the belief of embracing my children as individuals, respecting their autonomy, and fostering an environment where they feel heard and valued. This philosophy of trust, encouragement and guidance has not only defined my parenting style but has also become the cornerstone of my leadership at Lexicon.
In both roles, persistence and patience have been my allies. Whether it’s nurturing my children’s dreams and doubts or supporting my team’s innovative ideas, I have learned that unwavering belief and consistent support can pave the way for growth and success.
At Lexicon, I have instilled a culture of inclusivity where every opinion is respected, and every idea is given a platform to flourish. Just as I have trusted my children’s judgments and encouraged them to explore their passions, I have extended the same trust and encouragement to my team, allowing them the freedom to innovate and excel.
Watching my children evolve into capable leaders within Lexicon has been my greatest pride. Seeing them take charge of new verticals with their unique perspectives and dynamism reaffirms that I have instilled in them the values and skills necessary to thrive in both business and life.
As I reflect on this journey of fatherhood and entrepreneurship, I’m filled with gratitude for the invaluable lessons learned from my children and the experiences gained through building Lexicon. Together, they have shaped me into a leader defined by empathy, clarity of judgment, and a shared vision for success. And as I witness the next generation of leaders emerge within my own family and company, I know that I have succeeded in creating something truly meaningful.
Germans are the best in every sense be it making the cars or be it leading the front of a sports apparel brand. A globally acclaimed company, especially when it comes to football shoes people tend to choose Adidas. The company is the second-largest sportswear brand in the world and the only largest brand in all of Europe.
Known for its eye catchy designs, and the three stripes, this German brand has made its place in the hearts of people all around the world. Not just the ones who belong to the sports industry, but also the ones who want a brand logo on their apparel.
From spiked running shoes, and gym wear to college bags, Adidas has covered a huge market. Over the years, Adidas has maintained its image as amongst the greatest sports brands in history and the impetus behind that success is its business model.
The company is known to evolve production-wise as well as has adopted a great business strategy. Its business model has changed with time, adjusting to the needs of consumers. This effort has helped the sports brand stand strong throughout the ages and gain the trust of more and more customers.
To get a definite idea of how the business model and revenue model of Adidas works, here is a breakdown study of it.
The German brand was originally founded by Adolf “Adi” Dassler, once he returned from his duties in World War I. Dassler began making sports shoes in his mother’s laundry room in Herzogenaurach, Germany. In 1924, he was joined by his older brother Rudolf, after which both of them named their business “Dassler Brothers Shoe Factory.”
But in 1947 the brothers split up due to personal feuds, and Adolf formed his own company. He registered it as Adidas, deriving from his name, Adi Dassler, in 1949. Similarly, his brother, Rudolf registered his own company Ruda, which was later rebranded as Puma.
Headquarters and Area Served
The company is currently headquartered in Herzogenaurach, Germany. Speaking of the areas where it serves, they are although worldwide, yet there are a few nations where the company does not exist. These countries would be North Korea, Russia, Turkmenistan, Afghanistan, South Sudan, Chad and Palestine.
Adidas – Target Audience
As it’s a sports brand, it typically aims at a global market and targets sports enthusiasts, amateur athletes as well as the ones playing any sports professionally, and also fitness fanatics. Its secondary audience would be brand loyalists, teenagers, as well as those who admire fashionable trends.
Adidas – Key Products
Being the sports shoemaker in its initial days, Adidas still promotes itself as one of the leading footwear brands in the world. Similarly, sportswear, swimwear as well as fashion-oriented apparel are some of its products.
The next segment is its sports and gym accessories which are appreciated a lot, and with that, the bags, caps, and other products are also the ones that generate revenue for Adidas.
As of 2023, the German sports apparel company generated 57% of its revenue through footwear. Then 36% of its revenue was generated through sportswear and fashion apparel. The other 7% came from the sale of bags, caps, and similar small accessories.
Net Sales Share of Adidas Worldwide in 2023, by Product Category
Adidas Business Model
Here’s a breakdown of the business model of Adidas which also are the strategic pillars of the company and have helped it sustain itself throughout the years.
Strategic Pillar
Description
Value Proposition
– Designs high-quality, innovative products – Caters to sports and fashion industry – Focuses on sustainability by using recycled materials in manufacturing
Key Areas Focused by Adidas
– Emphasis on designing and developing new products – Ensures strong and reliable sources of material – Selective in choosing manufacturing and production partners – Aims to build and maintain strong relationships with key partners
Key Resources
– Skilled employees in design, marketing and supply chain management – Robust distribution and logistics network – Financial resources for investment and acquisitions – Strong brand reputaion and customer loyalty
Partners
– Chain of partners for raw materials (leather, cotton, etc) – Manufacturing partners chosen with precision and satisfaction – Retail partners, both physical and online, to promote sales and broaden market reach
Value Proposition
The German sports brand aims to design high-quality products along with a touch of innovation, this has maintained the brand to stand out from its competitors. It caters to the sports and fashion industry and offers a diverse range of products.
Recently the company has also adopted the sustainable aspect through its business model, where it aims to use recycled material in its manufacturing process.
Key Areas Focused by Adidas
Adidas is mainly focused on designing and developing new products, while also aiming for a strong and reliable source of material. It wisely chooses its partners when it comes to manufacturing and production.
Adidas aims to build new relations and maintain those relationships well enough with its key partners.
Key Resources
When it comes to maintaining the departments, such as design, marketing, and supply chain management, Adidas depends solely on its skilled employees. Similarly, its key resources also include its distribution and logistics network and financial resources for investment and acquisitions.
It also aims at maintaining a strong brand reputation and customer loyalty.
Partners
Adidas has maintained a chain of partners to become a rigid body in the sports niche. From the ones supplying the company with raw materials such as leather, cotton, and more to the manufacturing partners, the company has chosen everyone precisely and has kept them satisfied over the years.
The retail partners including both physical and online sports stores are the ones who promote its sales and also help the company broaden its market reach.
Focusing on the trendy culture, Adidas aims at everyone who has a passion for sports and fitness. They promote their clothing and sports accessories worldwide and have always followed their propositions which are innovation, customization, comfort, and brand/status.
How Does Adidas Make Money?
As of 2023, Adidas has reported an increase in its revenue in the third quarter. It was reported that the company has generated USD 23.47 billion in 2023.
The prime source of its revenue is through sales of its products. Adidas also saves a lot in its spending as it outsources its manufacturers for the production of its apparel and sports materials. This approach has helped Adidas maximize its profits in the global market.
Then again, when it comes to branding it has made its status so grand that people want to be seen wearing the products of this German manufacturer, which is making its sales boost even more.
The Adidas Group’s Net Sales Worldwide From 2013 to 2023
Conclusion
Adidas is not just a brand that produces sportswear and similar accessories, it has become a brand that targets innovation and progress. The latest products try to make playing a sport comfortable for the customer, all thanks to the constant research done by Adidas.
The business model depicts how Adidas has evolved since its inception and at the same time discovered new ways to make money. It seems that Adidas has taken its tagline too strictly: Impossible is Nothing.
FAQs
Who is the founder of Adidas?
Adolf Dassler founded Adidas in1949.
How does Adidas earn money?
The prime source of Adidas’s revenue is through sales of its products. Adidas also saves a lot in its spending as it outsources its manufacturers for the production of its apparel and sports materials. This approach has helped Adidas maximize its profits in the global market.
Stock Exchange is the real game. It helps you invest your money and get huge benefits from it. The share market has a lot to offer and if guided well in today’s competitive world, you are sure to make profits.
To be in good hands, you can surely consider Edelweiss. An Indian financial service company that can guide you through all your doubts when it comes to the share market and stocks.
Edelweiss believes that India is a country that holds strong grounds for long-term prospects of financial stability as well as sustainability. Hence, it has looked at the country to have complete financial inclusion and aims to cover as much area as possible and build a rigid bedrock.
It has learned the diverse financial needs of the Indian region and has in return offered the perfect solution for all categories. Edelweiss is present for its Indian clients in every stage of life, providing guides to generate wealth and grow it further. It aims at protecting the inheritance and wealth of its clients in every way possible.
To work towards its goal, Edelweiss has a perfect business model that reflects the experience of the company and the understanding it has shown in dealing with the Indian consumer facets.
Edelweiss is one of the leading financial services conglomerates in India. With its engaging and strong platform, the finance fiscal service has gained a huge base in the country as well as around the globe.
It has garnered experience while working with every class and category. From domestic to large industries, Edelweiss has dealt with every niche.
The company was co-founded by two men, Rashesh Shah, and Venkat Ramaswamy. It has since been registered with the National Stock Exchange of India as well as Bombay Stock Exchange and Multi Commodity Exchange.
Speaking of its services, Edelweiss works through subsidiaries and currently deals in several financial aspects such as brokerage services, life insurance, general insurance, private equity, and other investment-related services.
The business has a chain of sub-brokers and authorized people throughout the country, who deal with clients and understand them while also serving them with any financial solutions.
Edelweiss has got its customers covered with services regarding retail credit for home loans, SMEs, and business loans. Similarly, it serves its customers with Asset Management that covers both mutual funds and alternative assets, then the company is even great at asset reconstruction, and insurance both life and general.
Edelweiss – Industry
The finance service industry has grown in recent years. With its customer base learning to manage their own finances, that too from the comfort of their home, this sector has seen a drastic jump since the coronavirus pandemic.
There are new institutions that are gaining great profits. Another big revolution that the financial company has noticed is the digitization of its services. For this, everyone around the sector is adopting the latest technological build-ups and trying to expand more and more towards remote services.
Speaking of its growth rate, the financial service market size has also grown vastly. It is expected to grow from USD 31138.82 billion in 2023 to USD 33539.52 billion in 2024. This growth might rise at a compound annual growth rate (CAGR) of 7.7%.
By 2035 the finance industry sector is believed to be rapidly growing if the government focuses on financial inclusion and digital adoption. The above-stated result is also expected if the country witnesses rising income in the said period.
The industry might even see future growth in Artificial Intelligence and Machine Learning. These two segments will act as some of the most crucial ones in the future.
Edelweiss – Founders and Team
This absolute attention-grabbing finance service company was founded by Rashesh Shah and Venkat Ramaswamy in 1995.
Let’s get to know more about these two founders of Edelweiss.
Rashesh Shah
Rashesh Shah – Co-founder of Edelweiss
The chairman and CEO of Edelweiss Group, Rashesh Shah has over 28 years of experience in the financial market sector.
He has previously served as the president of the Federation of Indian Chambers of Commerce and Industry from 2017 to 2018. At present, he is one of the prime members of the High-Level Task Force on Public Credit Registry for India as well as the Insolvency Law Committees.
Shah has also given several speeches, interviews, and lectures related to the financial markets and their development.
Venkat Ramaswamy
Venkat Ramaswamy – Co-founder of Edelweiss
Venkat Ramaswamy is the vice chairman of Edelweiss Financial Services. He has more than 29 years of financial service experience in India. Ramaswamy is also the Co-head of Global Wealth & Asset Management business.
He is an alumnus of the University of Pittsburgh. Before Edelweiss he was the fund manager at Spartak Emerging Opportunities of India from 1994 to 1996.
During its initial years, Edelweiss worked on private equity syndication, mergers, and acquisitions, while also being focused on advisory services. The company even provided equity broking, portfolio management, and wholesale financing services to individuals and corporations.
Later in 2000, Edelweiss became a merchant bank and helped startups raise funds via non-IPO routes, which were venture capital and private equity funds.
The same year it had a capital mark of Rs 50 million and acquired Rooshnil Securities in 2001.
2004 to 2012 was the period when Edelweiss expanded its portfolio by adding institutional broking and nonbanking financial company activities.
Speaking of its global base, the Edelweiss Global Wealth Management, it was formed in 2007. This became a firm that provided wealth structuring solutions, asset protection, asset transfer strategies, risk management, and investment banking solutions.
Edelweiss – Mission and Vision
As per the finance assisting service, it aims to grow, protect, and help all of its customers to create wealth and grow wealth. It follows these lines as its key principles.
The company has created 13 guiding principles over the years that have helped it continue to serve its customers.
Edelweiss – Tagline and Logo
Edelweiss Logo
Regarding its tagline, the commerce service has two of them. Both of these lines depict the aims that Edelweiss wishes to conquer.
Ideas Create, Values Protect
Create, Grow, and Protect Everything
Edelweiss – Business Model
As per the company and its shared tenets, it follows certain key beliefs for its business model. These beliefs are being strong, steady, and also being sustainable.
The business model of Edelweiss is also based on its fortress balance sheet, steady earnings through diversification, internal ownership, good governance, strong global partnerships, and the EdelGive Foundation.
Moreover, Edelweiss aims to be a diversified financial service firm that too in a nonbanking financial company structure. For years, it has aimed to add new businesses constantly.
Edelweiss – Challenges Faced
As far as it has been till 2024, Edelweiss has usually faced a drop in its shares, which has been a challenge that resurfaced several times. But last year it was reported by Fobes that Edelweiss had to continue to meet its obligations to debtors.
The conglomerate had taken an estate loan that had turned sour. This was one of the most hurtful asset-liability contradictions that was about to sink the group.
Edelweiss – Investors and Shareholders
Below you can refer to the list of shareholders and how much equities they have.
Name
Equities
Percentage
Rashesh Chandrakant Shah
145,601,730
15.43 %
Dalal Street LLC
71,322,311
7.557 %
Venkatchalam Arakoni Ramaswamy
59,576,560
6.313 %
Nuveen Asset Management LLC
40,053,992
4.244 %
Edelweiss Employee Welfare Trust
38,750,000
4.106 %
Thomas Schmidheiny
36,880,726
3.908 %
Vidya Rashesh Shah
31,066,200
3.292 %
Life Insurance Corporation of India (Investment Portfolio)
24,282,094
2.573 %
The Vanguard Group, Inc.
22,255,332
2.358 %
BAMCO, Inc.
20,762,810
2.200 %
Edelweiss – Merger and Acquisition
Edelweiss acquired Anagram Capital, in 2010, for Rs 164 crore.
Then in 2014, the Financial Service also acquired Mumbai-based asset management company, Forefront Capital Management.
The Asset Management Company, in the year 2016, acquired fund schemes of JP Morgan Asset Management India.
Edelweiss Financial Services Ltd in September 2016 agreed to acquire Ambit Investment Advisors’ longshot hedge fund Ambit Alpha Fund.
Edelweiss – Marketing Campaign
The finance asset manager launched a marketing campaign for SME loans. This is where the company depicted its solution for semi and mid-size enterprises, solving their issue of facing a hard time getting loans through traditional banking institutions.
Then Edelweiss even came up with a media campaign on 27+ channels. It covered the maximum number of languages in a region, through which the company secured 4600+ spots and provided an estimated reach of about 9.8 million views.
Edelweiss Marketing Campaign
Edelweiss – Awards and Achievements
In 2019, Edelweiss was bestowed with the title of Most Innovative Investor Education Program by Outlook Money Conclave.
The finance assistant company was recognized among the top 25 Financial Innovations of India and received a Finnoviti Award in the year 2020.
Edelweiss also won the Customer FEST Awards, in 2020, during the 13th Edition of the ceremony. The company was awarded for Best Use of Technology to Enhance Customer Experience (SME Lending).
From its humble beginnings, Edelweiss has grown into a formidable entity, offering a diverse range of services and products that cater to various market needs. The company’s emphasis on robust risk management, technological integration, and sustainable growth has set it apart in a competitive industry.
By continually adapting to market changes and prioritizing the needs of its clients, Edelweiss has not only achieved remarkable financial milestones but has also built a reputation for reliability and excellence. This journey underscores the importance of resilience and visionary leadership in achieving long-term success.
FAQs
What is Edelweiss?
Edelweiss is an investment and financial services providing company.
Kolkata, June 13, 2024: StartupTalky, one of India’s largest media platforms for startups, is excited to announce its latest event, ‘TalkyMixers’, a one-of-a-kind gathering that promises to bring together founders, executives, venture capitalists, investors, freelancers, creators, and startup enthusiasts. Scheduled to be held on June 16th, 2024, from 4:30 PM onwards in Kolkata, TalkyMixers aims to imbibe a fun yet collaborative spirit among the city’s vibrant startup community.
This unique event, expected to last approximately two to two and a half hours, offers an informal setting where attendees can engage in meaningful conversations and networking. The relaxed atmosphere will facilitate fruitful discussions and connections over a delightful buffet, thoughtfully arranged by the StartupTalky (ST) team.
TalkyMixers presents an exceptional opportunity for Kolkata’s startup ecosystem to come together on a Sunday evening, promoting growth through strategic networking and one-on-one interactions. Attendees can look forward to sharing insights, exploring potential collaborations, and enjoying great food and drinks.
Shubham Kumar, Founder of StartupTalky, shared his enthusiasm for the event, stating, “We are thrilled to bring TalkyMixers to Kolkata, a city with immense potential and a burgeoning startup scene. Our vision is to create an environment where founders and startups can build together, leveraging each other’s strengths and insights. This event is all about inculcating meaningful connections, having fun, and celebrating the spirit of entrepreneurship. We believe that by coming together, we can create a thriving ecosystem that drives innovation and growth.”
Registration for the event is now open and can be completed via the events platform Luma (You can register here). Alternatively, interested participants can reach out to StartupTalky on Instagram or Facebook for registration details.
About StartupTalky
StartupTalky is one of India’s leading media platforms dedicated to the startup ecosystem. It provides insightful content, resources, and networking opportunities for founders, entrepreneurs, and startup enthusiasts. Acknowledged for its vast library of content pieces across categories related to startups and businesses in general, the legacy of StartupTalky has just continued to grow over the years. Through events like TalkyMixers, StartupTalky continues to support and inspire the startup community across India.
New Delhi (India), June 13: In a testament to the transformative power of startups, BuiltX Sustainable Design & Construction, founded by Stanford alum Abdul Aleem, is redefining the architecture, engineering, and construction (AEC) landscape in India. As the country’s first AEC firm exclusively dedicated to partnering with non-profits, BuiltX is pioneering a new approach to sustainable infrastructure, particularly in the healthcare and education sectors. This innovative startup exemplifies how emerging companies are driving change and addressing critical needs with agility and ingenuity.
Founded in late 2021 by Abdul Aleem, who returned to his home state of Bihar during the devastating second wave of COVID-19, BuiltX was created to fill a glaring gap in infrastructure development for non-profits. Aleem’s firsthand experience of the pandemic’s impact highlighted the urgent need for robust, high-quality infrastructure, especially in healthcare. Non-profits, despite their dedication, often faced challenges with inadequate facilities and unreliable local contractors.
BuiltX has swiftly positioned itself as a solution to these challenges by offering top-tier construction services at significantly reduced costs—10% to 25% below market rates. By operating on low margins, BuiltX enables non-profits to save substantial funds, which can then be redirected towards their core missions. This business model not only ensures the realization of excellent infrastructure projects but also maximizes the social impact of these non-profits.
“Our vision is an India where everyone has access to good healthcare, quality education, and hearty recreation.” said Abdul Aleem, co-founder and CEO of BuiltX.
BuiltX’s mission to positively impact 100 million lives through construction projects by 2040 exemplifies the ambitious goals that startups can set and achieve. The organization’s success is rooted in its core values: empathy, integrity, sustainability, and innovation. These values are integral to their operations. Empathy drives the organization to offer affordable pricing without compromising on quality, ensuring that non-profits can achieve their infrastructure goals. Integrity fosters trust and transparency in all collaborations, crucial for building long-lasting partnerships. Sustainability guides their project designs, which aim to minimize environmental impact and achieve certifications like LEED and Green Building. Innovation is a continuous pursuit, with BuiltX leveraging the latest construction technologies to deliver tailored solutions.
Despite being a relatively new player, BuiltX has already achieved significant milestones. The organization has constructed over 300,000 square feet of infrastructure for non-profits, projects that will directly impact more than 1,000,000 people in the next decade. One of their standout achievements is the construction of the largest eye hospital in Eastern India—a 500-bed super specialty facility for Akhand Jyoti Eye Hospital in Bihar. This hospital, which will perform over 100,000 free eye surgeries annually, is set to become the largest charitable eye hospital in India by the number of surgeries conducted.
The impact of BuiltX extends beyond its immediate projects. By offering a comprehensive partnership through the Integrated Project Delivery method, BuiltX ensures a seamless process from start to finish. This approach allows non-profit partners to focus on their missions while BuiltX manages every detail of the project. By collaborating with top architects and consultants, BuiltX provides turnkey solutions encompassing planning, architectural design, engineering, and construction.
As BuiltX looks to the future, the organization is committed to expanding its operations across North India, beyond its initial focus on Eastern India. By forging partnerships with respected non-profits, BuiltX aims to build more hospitals and schools, furthering its mission to create a lasting social impact through sustainable infrastructure.
By addressing critical needs with innovative solutions, BuiltX is changing the face of the AEC industry in India, demonstrating the profound impact that startups can have on society and the economy.
New Delhi (India), June 13: Welcome to Bharatpropertty.com—an emerging platform that’s changing the game in the real estate sector. With a foundation of 30 years in advertising and 15 years in real estate marketing, this platform is uniquely positioned to tackle the challenges faced by developers and buyers. Let’s dive into how Bharatpropertty.com is making a difference and what you can expect from this innovative solution.
A Blend of Expertise: The Team Behind Bharatpropertty.com
At the heart of Bharatpropertty.com is a team that marries extensive experience from both the advertising and real estate worlds. This unique combination of skills allows the platform to cater to the diverse needs of developers and buyers, offering solutions that are both practical and effective. The founders’ deep understanding of market trends and customer preferences helps in creating a seamless and user-friendly experience, simplifying the complexities of real estate transactions.
Key Features That Set Bharatpropertty.com Apart
Bharatpropertty.com brings a range of features designed to enhance the real estate experience for both buyers and developers. Let’s explore some of these standout features:
Exclusive Listings of New Projects: Unlike other platforms that include a mix of old and new properties, Bharatpropertty.com focuses solely on new or fresh projects. This means buyers get the latest options, and developers get a dedicated space to showcase their new offerings without competing with older listings.
Free Developer Listings: One of the platform’s most attractive features is that developers can list their projects for free. This encourages a wide range of listings, creating a diverse marketplace where buyers can find properties that meet their specific needs.
Emphasis on Privacy: Privacy is a significant concern in real estate transactions. Bharatpropertty.com addresses this by ensuring that customer information is kept confidential and not shared with competitors. This builds trust and creates a secure environment for both developers and buyers.
Advanced Comparison Tools: To help buyers make informed decisions, the platform provides tools for comparing multiple projects side by side. This feature simplifies the decision-making process by allowing buyers to evaluate options based on various factors such as price, location, and amenities.
Unlimited Listings Without Time Restrictions: Developers can list as many projects as they want without worrying about time limits. This ensures a rich and varied marketplace, providing buyers with a wide array of options and giving developers continuous visibility.
Discover the Benefits: Interactive Features for Users
Imagine browsing a platform where you can find the latest real estate projects without the clutter of outdated listings. Picture a place where your privacy is respected, and your information isn’t shared without your consent. Bharatpropertty.com offers these benefits and more, making the real estate journey smoother and more enjoyable. Here are some interactive aspects you might find interesting:
Explore New Projects with Ease: Get access to the freshest listings on the market, all in one place.
Compare Multiple Properties: Use advanced tools to line up your top picks and see how they stack up against each other.
Enjoy a Clutter-Free Experience: Navigate through a platform that focuses on new developments, ensuring you see only the most relevant options.
Bharatpropertty.com is poised to bring significant changes to the real estate market by leveraging the founders’ extensive experience and addressing key challenges faced by developers and buyers. The platform’s focus on exclusive new project listings, free developer listings, stringent privacy measures, and advanced comparison tools offers a comprehensive solution for efficient and smooth real estate transactions.
Your Next Step: Experience Bharatpropertty.com
Ready to take the next step in your real estate journey? Whether you’re a developer looking to showcase your latest project or a buyer searching for the perfect property, Bharatpropertty.com is here to make the process easier and more efficient. Explore the platform today and discover a more transparent and user-friendly way to navigate the real estate market.
Bharatpropertty.com is more than just a real estate platform; it’s a thoughtful approach to modern real estate needs. As it continues to grow, it promises to be a valuable resource for everyone involved in the real estate market, fostering a more transparent and efficient environment. Experience the difference for yourself and see how Bharatpropertty.com is transforming the real estate landscape.
Are you in need of quick access to funds in India? One popular option to consider is applying for a gold loan, where you can pledge your gold jewelry as collateral. This secured form of lending allows individuals to obtain the cash they need without the hassle of extensive documentation or credit checks.
In this article, we will guide you through the process of applying for gold loans in India, covering both offline and online options.
Whether you have a medical emergency, educational expenses, or a family event to fund, a gold loan could be the solution you’re looking for.
“While gold is largely a dormant asset, gold loans allow customers to monetize the ornaments by pledging them for some time. Gold loans are largely seen as a means of last resort for emergency and unplanned expenses; equally, there is growing acceptance of gold ornaments being the source of loans for working capital and planned expenses,” Radian Finserv Founder Sumit Sharma told StartupTalky.
Radian Finserv, an RBI-registered non-banking finance company (NBFC), specializes in retail asset-backed lending. Focused on gold-backed loans, Radian employs cutting-edge technology platforms to ensure a smooth and enhanced customer journey.
Let’s delve into the details of how you can apply for a gold loan and meet your financial needs effortlessly.
For individuals who prefer a traditional approach, the offline application process for gold loans in India offers a straightforward method to secure the funds you need.
By following a few simple steps, you can pledge your gold jewelry as collateral and access quick cash without the need for extensive documentation or credit checks.
Offline gold loans in India offer a convenient, localized, and accessible financing option for individuals who prefer face-to-face interactions and personalized assistance in the loan process. While digitalization has brought about advancements in online lending platforms, offline gold loans continue to play a significant role in the lending landscape, catering to diverse customer preferences and needs.
Find a Gold Lending Firm
Start by researching and identifying a reputable gold lending firm in your locality. It is crucial to choose a lender that offers competitive interest rates, flexible repayment terms, and excellent customer service. Take the time to select a trustworthy partner for your financial needs.
Collect Required Documents
Gather the necessary documents for the loan application, including proof of identity, proof of address, and two recent passport-size photographs. Accepted documents for proof of identity may include your PAN card, Aadhar card, or passport copy, while proof of address can be provided through an Aadhar card, driving license, or utility bills.
Visit the Branch
Once you have the required documents in hand, visit the branch of the chosen gold lending firm to begin the application process. Bring along the gold jewelry that you intend to pledge as collateral and be prepared to complete the necessary paperwork to move forward with your loan application.
In today’s digital age, applying for a gold loan online has never been easier. With just a few clicks, you can access the funds you need without the hassle of visiting a physical branch. Here’s a step-by-step guide to the online application process:
Choose an Online Lender: Research and select a reputable online gold loan provider that offers a secure and user-friendly website for a seamless application experience.
Register/Login: Create an account on the lender’s website if you’re a new user, or simply log in with your existing credentials.
Fill out the Application Form: Provide accurate personal and financial information, along with details about the gold jewelry you intend to pledge.
Upload Documents: Scan and upload necessary documents, such as proof of identity and address, ensuring they are clear and legible.
Gold Assessment: The lender will visit your location, and evaluate the purity and value of your gold jewelry based on the information provided in the application.
Once your application and documents are submitted, the lender will assess the gold’s purity and market value to determine the loan amount you qualify for. Upon approval, the funds will be disbursed directly to your bank account or through alternative options as per the lender’s policies. This convenient online process saves you time and effort, allowing you to access the financial support you need without leaving the comfort of your home. Apply for a gold loan online today and make your financial goals a reality with ease.
“We believe that a gold loan is a smart option (and not just a means of last resort), and are working to make it easier and comfortable for customers to take a loan against gold, while at the same time also providing greater comfort and security/peace of mind around the safety of their ornaments,” Sharma noted.
Gold Loan Interest Rates as per BankBazaar Website
Bank
Interest Rate
Loan Amount
Axis Bank Gold Loan
17% p.a. onwards
Rs.25,001 to Rs.25 Lakh
HDFC Gold Loan
9.00% p.a. to 17.65% p.a.
Rs.25,000 onwards
Canara Bank Gold Loan
9.25% p.a.
Rs.5,000 to Rs.35 Lakh
Muthoot Gold Loan
22% p.a.
Rs.1,500
SBI Gold Loan
8.75% p.a. to 9.90% p.a.
Rs.20,000 to Rs.50 Lakh
Kotak Mahindra Gold Loan
9.00% p.a. to 24.00% p.a.
Rs.20,000 to Rs.1 Crore
IndusInd Bank Gold Loan
10.00% p.a. to 16.00% p.a.
Up to Rs.20 Lakh
Manappuram Gold Loan
24.75% p.a. to 26.00% p.a.
As per the requirement of the scheme
Bank of Maharashtra Gold Loan
9.30% p.a. onwards
Up to Rs. 25 Lakh
PNB Gold Loan
9.25% p.a.
Rs.25,000 to Rs.25 Lakh
Bank of Baroda Gold Loan
9.40% p.a.
Up to Rs.50 Lakh
Please note that the repayment tenure mentioned is taken as 6 months, assuming the purity of gold is 22 carats.
Eligibility Criteria for Gold Loans
When considering applying for a gold loan in India, it is essential to understand the eligibility criteria set by the lenders. These criteria ensure that the borrower meets certain requirements to qualify for the loan. Here are the key factors that typically determine eligibility for gold loans:
Age: To be eligible for a gold loan, the applicant should be 18 to 75 years old (the maximum age limit varies from lender to lender). This age requirement ensures that the borrower is of legal age and can enter into a loan agreement.
Residency: Another important criterion is that the borrower must be a resident of India. This requirement confirms that the borrower has legal and stable residency status in the country, which is necessary for availing of a gold loan.
Collateral: One of the central aspects of a gold loan is the collateral provided in the form of gold jewelry. The gold jewelry pledged as collateral must meet the lender’s purity requirements. This ensures that the value of the collateral is sufficient to secure the loan amount.
Understanding and meeting the eligibility criteria for gold loans are crucial steps in the loan application process. By ensuring that you meet the age, residency, and collateral requirements set by the lender, you can increase your chances of getting approved for a gold loan.
It is advisable to review the specific eligibility criteria of different lenders to find the one that aligns with your financial circumstances. By meeting these criteria, you can pave the way for a smooth and successful gold loan application experience.
Conclusion
In conclusion, applying for a gold loan in India can be a straightforward and convenient way to access quick funds in times of need. Whether you choose to apply offline at a local lender or opt for the convenience of online platforms, the process is designed to be efficient and hassle-free.
By pledging your gold jewelry as collateral, you can secure a loan without the need for extensive documentation or credit checks. As long as you meet the eligibility criteria set by the lender, you can easily obtain the cash you require for various purposes, such as medical emergencies, educational expenses, or family events. Consider exploring the options available to you and take advantage of the benefits that a gold loan can offer in times of financial need.
FAQs
What are the options to apply for gold loans in India?
There are two options to apply for gold loans in India, which are offline and online options.
What is the offline application process for a gold loan?
The offline application process for a gold loan involves finding a gold lending firm, collecting required documents, and finally visiting the branch and applying for the gold loan.
What are the eligibility criteria for Gold Loans?
The eligibility criteria for Gold Loans include age criteria (the applicant should be 18-75 years old) residency criteria (the applicant should be a resident of India), and collateral criteria (gold jewelry must meet the lender’s requirements).
Today we have so many browsers to navigate the internet. But back in the day, there was one dominating force, America Online (AOL). In 1985, Marc Sheriff with his business associates introduced the first internet giant.
From online chat rooms to email, AOL gave internet connectivity a whole new meaning. The success reached such a milestone that it once collected revenue of more than $200 billion.
However, after reaching a peak, AOL faded into the background. It could not keep up with Google and other contemporaries took the upper hand. How did a success story turn into a disastrous nightmare? Time to find out!
Years ago, before the digital era arrived, America Online was the main character. It was the very first company to offer internet connectivity to the common masses. From an initial dial-up service to a giant media company, AOL evolved like none.
America Online revolutionized everyone’s entertainment and media consumption. The success first gained momentum in the early 1980s. Initially, it operated under the name Control Video Corporation (CVC). However, it failed to get a hold of the market space. Eventually, after a touch of rebranding as AOL, the company finally found its footing.
AOL’s Secret to Success
At first, America Online (AOL) had a few basic functions. It only had features like chat rooms and email. However, it was not long before AOL realized the importance of expansion.
It went on to give services like news, online games, search databases, etc. A decade later, AOL dominated the digital world with a million users like the world had never seen before.
The entire 1990s witnessed the success of America Online. It expanded all of its media properties. And had a good run! What else made AOL a success of its time?
Simple and Easy-to-Use Interface
America Online made it easy for all its users to navigate the online world. Unlike the other services in the 80s and 90s, AOL had a simple interface. Even people with no technical experience could use it easily. Its accessibility was what attracted users in the nascent stages of the internet.
Excellent marketing Strategy
AOL had quite an aggressive advertising style. With effective commercials and slogans, the company knew how to build its brand. Not only did it attract new users but also retained loyal customers.
Focus on Community
Community inclination was another key player in AOL’s success. Their chat rooms were great meeting opportunities. Such gatherings create a sense of community among users. AOL connected people and pushed it to its peak position.
End of an Era: Beginning of AOL’s Downfall
US-Based AOL Subscribers in Millions for Each Fiscal Year (Q1) From 2002 – 2006
AOL gained a revenue of $200 billion at the highest position in the market space. However, then in 200, the company entered a merger with Time Warner. But why did the deal end in a disaster?
In 2000, AOL’s deal with Time Warner was quite historic with a valuation of $160 billion.
The businesses went through the merger. However, the 21st century saw an impending disaster.
From workplace culture shock to failure to anticipate media space and future interest, the company lacked diligence.
The business merger seemed logical since AOL and Time Warner were leading companies. But the execution could have been better. AOL acquired 55% of the shares whereas Time Warner got 45%.
Unfortunately, just a year into the deal, there was a loss of $99 billion. And by December 2002, both companies saw a decrease of 90% in their stock prices.
The merger was supposed to create ripples in the media business. However, the combination of both companies did not go as expected.
The plan was to make the most of AOL’s online expertise and Time Warner’s assets. But there were challenges and unexpected obstacles.
Then there was an unexpected dot com bust soon after the merger.
The merger which was supposed to be the best deal of the century became a disaster. AOL’s share values started sinking and their stock prices took a bad hit.
Beginning of a Digital Era: AOL Could Not Manage Market Trends
Market trends change. The media space is a dynamic setting. If businesses do not grapple with these changing times, they are not sustainable in the long run. With market trends, customer preferences also change.
Failure to evolve was also a primary contributor to AOL’s downfall. The world moved on to broadband, but AOL hung up on dial-up internet.
But it did try to change. However, their attempt was not successful. Their consumers shifted to broadband connections. Users wanted reliable connectivity. Hence, slowly America Online’s subscriber base began declining over the years.
Evolution of New Competitors
Innovation is not enough. You need to be quick to get ahead of your contemporaries. You need to innovate but fast! Today, consumers need high connectivity and internet speed. People rely so heavily on the Internet for education, communication, entertainment, and work.
However, America Online (AOL) did not predict the needs of companies and individuals soon. Their competitors realized that change was necessary. So, in the early 2000s, they shifted to broadband to provide better connectivity.
Users lost interest in their service. AOL could not meet their users’ need for high-speed internet connection. They did not feel satisfied with dial-up internet.
America Online began to lose its relevance in the changing digital landscape. AOL had so many popular services which no longer fit user preferences. From AOL Mail to AOL Instant Messenger, the company could not beat other new players.
The company lost user engagement due to its outdated services and business model. When the company saw that it started losing its relevance, it acted by amending its strategies. AOL made a change in December 1996. It made a shift from hourly fee to monthly recharge. The company made a turn from a temporary to a permanent connection.
The company made a point with their change. Users signed up in heavy numbers. However, the idea did not stick around for long. The servers collapsed. Subscribers struggled to use the internet because the server reached its saturation limit. Eventually, it completely stopped working.
America Online’s Final Retirement
The merger started a sequence of disastrous events. When America Online merged with Time Warner in 2000, executives thought it was a great beginning.
The market space changed but AOL could not adapt. The company could not move on with broadband from a dial-up internet connection.
Given their situation, AOL executives fell behind their competitors. Once a top online dominating force, it became a struggling company. In 2006, AOL let go of their old name ‘America Online.’
After the downfall, AOL became a subdivision of Time Warner. Their services which were once celebrated among users, the company let go of them for free.
America Online: Present Scenario
AOL Present Site
In 2009, Tim Armstrong joined the AOL as a Chairman. It was again spun off as an independent company in 2009 in order to focus on digital media and advertising business independently.
In 2010, Time Warner cut its ties with AOL. With the change in CEO, the company began to rise again forming its own brand and growth.
In 2015, Verizon acquired AOL with all its sets of brands.
In 2021, Verizon announced that sell 90% of its Verizon media division to a private equity firm named Apollo Global Management.
Apollo Global Management also acquired Yahoo in order to merge both media platforms into one.
One of the first internet service providers and web portals of the 80s and 90s, AOL had a glorious run. However, once the world moved on to a better digital era, AOL could not adapt to the sudden change.
The internet boom cut short America Online’s digital success. The emergence of broadband was not a good sign for AOL’s online presence. The dent in their business was too deep for repair.
FAQs
Is AOL a search engine?
AOL was not started as a search engine instead with time it included the search engine as an additional service of its online web portal.
Who owns AOL today?
AOL is owned by a private equity firm named Apollo Global Management which after the purchase rebranded AOL and Yahoo into a single brand “Yahoo”.
Is AOL like Yahoo?
Yes, AOL and Yahoo both offer multiple similar services such as email services, news and media content, etc. Moreover, both web portals are owned by a single firm named Apollo Global Management.
Shalini Rath
