In the world of developing SaaS products achieving success relies heavily on a carefully planned strategy. This article presents eight steps that will serve as your roadmap guiding you from analyzing the market to providing support and updates. By following these steps you can create a SaaS product that not only fulfills customer requirements but also flourishes in an ever-changing market landscape.
Before diving into SaaS product development, it is crucial to conduct a thorough market analysis. Understanding the market landscape and identifying potential opportunities and challenges will set the foundation for your product’s success. Start by defining your target customer and their pain points. Analyzing your competitors is equally important. Identify their strengths and weaknesses, and pinpoint gaps that your product can fill. This research will help you define your unique value proposition and position your product effectively in the market.
Step 2: Define Your SaaS Product
Once you have a clear understanding of the market, it’s time to define your SaaS product. Start by outlining the core features and functionalities that address your target customer’s pain points. Prioritize these features based on their importance and feasibility. Consider conducting user research and gathering feedback from potential customers to validate your assumptions and refine your product roadmap. Additionally, define your monetization strategy. Will you offer different subscription plans? What additional services or features will be available for premium users? A well-defined product vision and monetization strategy will guide your development efforts and ensure alignment with your target market.
Step 3: Design the User Experience
User experience (UX) design encompasses the visual design, information architecture, and interaction design of your application. Start by creating wireframes and prototypes to visualize the user journey and test different design concepts. Make sure that your design is easy to understand, user-friendly, and meets the expectations of your target customers. Work together with UX designers and conduct usability tests to collect feedback and continuously improve. Providing a captivating user experience will not only attract and keep customers but also set your product apart, from competitors.
SaaS End-user Spending Worldwide
Step 4: Develop the SaaS Application
The development phase is where your SaaS product takes shape. Start by selecting the right technology stack that aligns with your product requirements and scalability needs. Take into account elements, like programming languages, frameworks, and cloud infrastructure. Break down the development process into sprints or iterations to ensure a systematic and iterative approach. Collaborate closely with your development team, providing clear requirements and specifications. Regularly review and test the application to identify and fix any bugs or issues. Embrace agile development methodologies to promote collaboration, flexibility, and continuous improvement.
Step 5: Implement Robust Security Measures
Security is a top priority for any SaaS product. As a custodian of customer data, it is crucial to implement robust security measures to protect sensitive information and maintain trust with your users. Start by conducting a comprehensive security audit to identify potential vulnerabilities. Implement encryption protocols to secure data at rest and in transit. Employ access controls and multi-factor authentication to prevent unauthorized access. Regularly update and patch your software to address security vulnerabilities. By prioritizing security from the early stages of development, you can build a secure and trustworthy SaaS product.
Step 6: Deploy and Test
Once your SaaS application is developed, it’s time to deploy and test it in a real-world environment. Set up a staging environment to simulate the production environment and test the application thoroughly. Conduct functional testing to ensure all features work as intended. Perform performance testing to assess the application’s scalability and responsiveness under various load conditions. Test the application on different devices and browsers to ensure compatibility. Additionally, gather feedback from beta users and conduct user acceptance testing to validate the application’s usability. Address any issues or bugs identified during testing and refine the application accordingly.
With a fully tested and refined SaaS product, it’s time to launch and market it to your target audience. Create a rounded marketing plan that encompasses aspects such, as digital marketing crafting engaging content actively participating in social media platforms, and optimizing your presence on search engines (SEO). Utilize your connections and collaborations, within the industry to generate excitement and entice customers. Additionally, you might want to explore the idea of offering a trial or freemium model to encourage users to give your product a try. Continuously monitor and analyze your marketing efforts to optimize and refine your strategies.
Step 8: Provide Ongoing Support and Updates
Launching your SaaS product is just the beginning. To ensure long-term success, it is essential to provide continuous support and updates. Set up a customer support system to address user inquiries and issues promptly. Regularly release updates and new features to keep your product competitive and meet evolving user needs. Gather user feedback and prioritize feature requests and bug fixes based on their impact and feasibility. Continuously monitor application performance and security and address any issues proactively. By providing exceptional support and continuously improving your product, you can build a loyal customer base and drive long-term growth.
5-Minute Breakdown: Software as a Service (SaaS)
FAQs
What is a SaaS software system?
Software as a Service (SaaS) enables users to access and utilize cloud-based applications via the internet. SaaS delivers a comprehensive software solution that you acquire through a pay-as-you-go model from a cloud service provider.
What are popular SaaS providers?
Popular SaaS providers include BigCommerce, Google Workspace, and Salesforce.
What are the primary advantages of using SaaS for businesses?
Primary advantages of SaaS for businesses include Cost-effectiveness, scalability, accessibility, automatic updates, and reduced IT burden.
In a thought-provoking session with StartupTalky, Mr. Rajarshi Bhattacharyya, Chairman and Managing Director of ProcessIT Global, engaged in an in-depth discussion covering a wide range of topics. Throughout the conversation, he provided valuable insights into the competitive tech industry and what sets ProcessIT Global apart from its peers. He emphasized the company’s focus on cyber resilience, which involves building strategies, processes, and technology solutions to help organizations become resilient in the face of cyber threats.
StartupTalky: Good morning, everyone. My name is Sayantan, and today we have with us Mr. Rajarshi Bhattacharyya, the Chairman and Managing Director of ProcessIT Global. So, Mr. Bhattacharyya, how are you?
Mr. Bhattacharyya: Great, good to see you, Sayantan. And it is very nice to be at your show.
StartupTalky: Thank you so much, Mr. Bhattacharyya. It has been a pleasure for us to host you today. I am sure that this will be a very thought-provoking session. And definitely, your insights will enlighten our audience. So, Mr Bhattacharyya, can you share some insights into ProcessIT Global’s unique strategy in the competitive tech industry and what sets it apart from other players in the market?
Mr. Bhattacharyya: It is a deep tech services and solutions startup. We operate in the field of Enterprise. Specifically, I use the word “resilience” because “security” is widely misused. Resilience is where organizations start building up strategies and processes, implement product technology solutions, and make them work as one to become a resilient organization.
Resilience is a key factor term, where we enable organizations to become cyber resilient. In the ever-changing landscape, the paradigm of business is also changing these days. So, what we do is we also help organizations to secure themselves. Our tagline at Process It Global is “Securing the Modern Enterprise.” This encompasses the advisory piece, implementation, operations, and maintenance, functioning as a managed cybersecurity service provider.
That is in a nutshell what we are involved in. We operate in a very niche technology space, focusing on identity and access management, which forms the fundamental pillar of the zero-trust security policies that you keep hearing about. We also work on SIM, Soar, and UBR, which are essential for managing cybersecurity. Application security is another area where we work on securing applications. Additionally, we provide data security, which covers data at rest as well as data in motion.
Furthermore, we are partners with different organizations, particularly large global UEMS (Unified Endpoint Management Systems), and we build on top of their products to create a unique customer experience. Every organization’s demand is different because every industry vertical is unique, and their challenges vary.
For example, consider small-scale exporters who manufacture products for larger manufacturers globally. They may sign GDPR contracts without fully understanding the implications. We assist them in developing a strategy to become compliant and confidently sign GDPR contracts. That is what we bring to the table.
StartupTalky: Thank you Mr. Bhattacharyya for sharing your views. Since you mentioned the GDPR policy in Europe, with the new Digital Personal and Data Protection Act of 2023, I would like to know how your company, ProcessIT Global, is ensuring data security for your clients.
Mr. Bhattacharyya: So, we have an air gap environment when it comes to customer data, so it is never exposed to the internet. Whatever is there remains within our system. Additionally, we have implemented various security policy measures. We are also an ISO 27001-certified organization. This speaks volumes about how well our processes are defined. This ensures that we are compliant. Furthermore, if you look at the current policy of the government of India, it is a fantastic one. It is on par or even better than many others. It is more advanced because GDPR came out some time ago. This policy is more advanced and comprehensive, which will further India’s progress.
StartupTalky: All right. Since you mentioned government policies, I would like to continue with the next question on the same note. How do government policies support the growth of Indian startups, including yours?
Mr. Bhattacharyya: To encourage a startup ecosystem, the government must be open to ideas and entrepreneurship. The government has indeed taken steps in this direction. They initially launched the Skill India program, followed by the Startup India program. It is a process. If you examine the flow, it begins with skill development, followed by idea generation, and then the Startup India program comes into play. Startups, whether they offer services, products, or commodities, often require substantial funding. The government has introduced schemes that offer funding without requiring collateral, such as the Mudra scheme.
There is a significant emphasis on supporting women-led startups. India is now one of the world’s largest startup hubs. If you look at the top 15 cities globally for startups, three of them are Indian: Bangalore, Mumbai, and Delhi NCR. This is a testament to the encouragement the government provides for individuals to become entrepreneurs, break free from mundane jobs, and pursue innovative ideas. Access to funding is available, and Indians are known for their brilliant minds. Additionally, policies have been established to enable startup companies to participate in large government tenders without needing to provide Earnest Money Deposits (EMDs). Membership in the Startup India scheme takes care of your credentials, eliminating the need for Pre-Qualification (PQ) criteria.
Moreover, an essential aspect is that if your startup is performing well for three years, you become eligible for tax exemptions. It can hardly get better than this. The ecosystem is designed to support your growth. The government, in collaboration with organizations like NASSCOM, organizes various mentorship programs under the Startup India initiative, providing people with invaluable guidance and support.
StartupTalky: How do you see the G20’s Startup20 initiative helping Indian startups go global? Are there concerns about foreign players posing competition to Indian sectors?
Mr. Bhattacharyya: In terms of the Indian startup sector, we do not fear anybody these days. We have become a fearless India. So that is the spirit. Only the exchange of ideas and collaboration can make things better. If you are collaborating with somebody in California, they can learn a lot from us.
Most of the large-scale successful startups are founded by Indians. If you look at large-scale global companies, many of them are run by Indians. So, it is India’s time to shine. All these developments are happening for the better. Collaboration will only improve our situation. There will be an influx of money, an exchange of ideas, and technology exchanges. It is going to be great, and there is nothing to fear.
StartupTalky: India has transitioned from being a BPO hub to a center of innovation. Given this shift and your mention of data, here is a hypothetical question: Is it possible for startups to use their data as collateral for securing loans? If so, how can the security and assurance of this data be ensured?
Mr. Bhattacharyya: I think the government of India is working on data insurance. The moment you have insurance against data, as well as hybrid insurance, once that is formalized, it will lead to a massive explosion in having data that is bankable. So, it all depends upon the financial policies as well.
The government of India is working towards it, and hopefully, we will find a solution soon. Right at this moment, it does not seem like data could be mortgaged, and that is not the right approach.
If you look at it, you are getting financial benefits out of the data that you have. The data you are collecting is for servicing individuals better. It is for compliance requirements. Your data cannot be used for generating money. Data is a very secure thing. It cannot be bankable.
StartupTalky: I will get to my final question without taking much of your time. What are Process IT Global’s future plans and industry outlook?
Mr. Bhattacharyya: See, we would love to become the largest cybersecurity player in India when it comes to services and solutions. And that is what we intend to become in the next five to six years. We are currently experiencing triple-digit growth every year, a trend that can likely be sustained for another couple of years. However, there will come a stage where the growth may slow down a bit but eventually stabilize. Startups typically experience rapid hockey stick growth initially and then reach a stabilization phase. So that is the trajectory.
When I look at this industry, it will always experience double-digit growth. The reason is that hacking and cyber threats will always be present. If you look at the World Economic Forum 2021 Report, it identified cyber risk as the third most significant risk factor that can harm a nation. Today, the focus is on defending against an army of hackers who are becoming increasingly organized. In the realm of cybersecurity, it is a continuous process of improving weaknesses against threat actors.
Considering the pace of digital transformation happening right now, there are numerous applications getting modernized, adopting microservices, and becoming cloud native. There’s also significant usage of containers. However, the usage of containers introduces additional attack surfaces, opening opportunities for threat vectors. This trend is only going to increase.
As of now, the cybersecurity market stands at close to around $180 billion, and approximately 50% of this revenue comes from services. What is noteworthy about this market is that there is not a single product that can fulfill all your cybersecurity requirements. It requires a collection of tightly integrated products to provide a cyber resilience platform. Therefore, this market is poised for continued growth and will likely maintain double-digit growth rates.
StrartupTalky: Definitely, as rightly said, Mr. Bhattacharya. It was really an insightful conversation, and I also gained a lot of knowledge. Definitely, I can assure you that our audience will gain more knowledge from our interaction. It has been a pleasure hosting you Mr Bhattaharyya, and I wish all the success for you and your company.
In the ever-evolving landscape of fintech innovation, one name has been making significant waves—Digitap. As a B2B SaaS provider in the FinTech market segment, Digitap specializes in API-based solutions for the financial sector.
In a recent interaction, we had the privilege of speaking with Mr. Nageen Kommu, CEO, Digitap, who provided valuable insights into their unique approach to financial risk management and customer onboarding.
Mr. Kommu shed light on their unwavering commitment to data protection, and the benefits of Indian startups following G20’s Startup20 initiative. He highlighted the significant role that government policies have played in fostering the growth of startups like Digitap in the dynamic Indian fintech market.
StartupTalky: Good morning, everyone. I am Sayantan, delighted to introduce our guest today, Mr. Nageen Kommu, the CEO of the tech startup Digitap. Digitap specializes in developing API-based solutions for fintechs and banks, harnessing the power of AI and machine learning. Welcome to StartupTalky Mr. Kommu. How are you today?
Mr. Kommu: Good morning, Sayantan. I’m doing well, thank you for having me on your show. It’s a pleasure.
StartupTalky: It’s an absolute pleasure to have you here. Thank you for your time. I’m confident that our conversation will be enlightening for our viewers. Let’s dive right into the questions.
Mr. Kommu: Certainly.
StartupTalky: What makes Digitap’s AI and ML algorithms unique in financial risk management and customer onboarding, and how do you achieve top success rates in the market?
Mr Kommu: That’s a great question, Sayantan. Our approach at Digitap revolves around providing alternative data solutions, which differ from traditional credit bureau scores. Traditionally, banks and financial institutions relied heavily on bureau scores to assess customers’ creditworthiness. If a customer’s score exceeded a certain threshold, they were approved for a loan, and if not, they were often disregarded. However, this approach only caters to the top 100 million Indian users, and it doesn’t account for those with scores below 730, who may still be reliable customers. Additionally, approximately 40% of the Indian population lacks any credit score because they’ve never taken a loan or credit card.
Our challenge is to distinguish good customers from bad ones within this vast customer base of the next 400 million. We achieve this by focusing on alternative data sources that enable our clients, including NBFCs and banks, to underwrite these customers. The key is to identify unique data sources that set us apart from competitors. Having exclusive access to such data sources can provide a significant initial advantage, even if competitors eventually catch up.
The next challenge is to convert unstructured data from these sources into structured formats, a step that most AI and ML companies can accomplish. The real differentiation comes in constructing meaningful models from this structured data. This is where we excel and distinguish ourselves from competitors. The process involves data structuring and the creation of scoring models tailored to specific use cases or outcomes, ensuring that our results stand out.
Regarding success rates, the availability of data plays a pivotal role. The more data we have, the more refined our models become. We strive to strike a balance between identifying unique data sources and finding customers willing to allow us to use their data to train models effectively. It often involves partnering with a champion client, offering incentives, and leveraging their data to fine-tune our models before introducing them to the market.
StartupTalky: Thank you, Mr. Kommu, for sharing your insights into Digitap’s unique approach and success factors. With the Digital Personal Data Protection Act, of 2023, now in place, how is Digitap planning to secure customer data effectively?
Mr. Kommu: Certainly, Sayantan. The Digital Personal Data Protection Act, of 2023, brings several facets related to data protection into focus. Even before its implementation, the concept of account aggregators gained prominence in the BFSI segment. Adhering to this concept, the Data Protection Act mirrors many principles outlined in the account aggregator ecosystem. It provides guidelines on how to obtain customer consent, the duration of consent, the purposes for which consent is granted, and mechanisms for customers to revoke consent.
At Digitap, we consider ourselves data processors. We don’t store data; we process it on behalf of our clients, who are the data fiduciaries. While there may not be specific guidelines for data processors, we voluntarily adopt the same policies and procedures that data fiduciaries follow. If a customer wishes to revoke consent, we ensure that the data is deleted, complying with the Act’s requirements.
The Act also addresses data security during storage and transmission. We already have robust security mechanisms in place, as we deal with RBI’s outsourcing norms, which mandate data localization within India. We undergo regular audits for data localization and application penetration testing to assure our clients, especially those regulated by RBI, of the security and integrity of their data.
Since we don’t store data, our role is primarily processing, and we strictly adhere to this distinction. West are paramount to us, given the sensitive nature of financial data.
StartupTalky: Thank you, Mr. Kommu, for outlining your approach to data protection and compliance with the Digital Personal Data Protection Act. It’s crucial in today’s digital landscape. How will Indian fintech startups benefit from the G20 Startup 20 initiative, and do you anticipate increased competition from foreign players as a potential challenge?
Mr. Kommu: Definitely it is an opportunity to unfold ourselves in the international market. However, in my opinion, the Indian fintech ecosystem is well ahead of a lot of countries in terms of innovations, especially from the West. You are now seeing a lot of startups mushrooming around the account aggregator ecosystem which is one of the flagship initiatives of the Indian government.
Now we are seeing countries like UAE and France adopting our UPI ecosystem. So, we have that edge in terms of some of the technology and some of the innovations that we have gotten about, especially around the digital infrastructure like Aadhaar, UPI, and account aggregators. It will actually help us, the Indian startups, to take these initiatives outside our country and then start internationalizing them.
Another place where definitely the Indian ecosystem or Indian startups will flourish is in our domestic market, where we have proven ourselves to be very effective in catering to a huge volume of the market. India’s market dynamics, marked by substantial volumes, allow us to fine-tune our models, especially those related to AI and ML.
While these volumes might not be as readily available in regions like the UAE, Paris, or even the US, the experience gained from catering to India’s diverse and high-volume market equips us to address large-scale use cases and refine models accordingly.
Also, I believe that there is a huge potential around the lendingtech as well. We ourselves find a lot of traction in the international market in this sector. This includes the development of LOS (Loan Origination System) solutions, LMS (Loan Management System) solutions, and underwriting solutions.
While Western markets possess the digital infrastructure to support underwriting, there remains a substantial need for LOS and LMS solutions of the kind that Indian companies have developed at scale to serve a vast customer base within India.
StartupTalky: So, who do you think has the upper hand? Indian or foreign companies?
Mr. Kommu: When comparing the potential for Indian companies venturing abroad versus Western companies entering India, the advantage clearly favors Indian companies. It is completely because of the complexity and diversity of the Indian market, which can be challenging for Western companies to navigate.
Western companies specializing in insuretech, lending tech, or payment solutions often find it difficult to adapt to India’s diverse payment landscape. In India, there’s a wide spectrum of payment preferences, ranging from traditional methods like checks to digital-first users who rely solely on UPI. Western companies may struggle to cater to the diverse needs of the Indian market, including IMPS, NEFT, RTGS, and more.
Even in lending tech, Western companies are accustomed to underwriting based on digitized data, while India presents a different set of challenges. Many Indian customers, especially in Tier 3 and Tier 4 areas, lack digitized KYC documents or mobile number linkage, necessitating unique solutions. Indian companies, including ours, have already innovated in response to these challenges.
Western companies entering India often face difficulties due to the market’s complexity and the pace of fintech innovations. For instance, a Chinese company, Advanced AI, found it challenging to adapt to the Indian market’s intricacies and competition.
Indian companies, on the other hand, have had almost a 20-to-25-year history in terms of catering to the Western market. We know what works in the Western markets and that advantage will definitely play for us. The 1990s and early 2000s, it was an era of outsourcing where Infosys, Wipro, and TCS thrived. I believe this to be an era of outsourcing your complex data science and AI ML solutions. I think there is a huge scope for us to play in terms of looking for outsourcing of these solutions in the US or European market.
StartupTalky: Thank you, Mr. Kommu, for your insights into how the Startup 20 initiative could impact Indian fintech startups and the potential challenges foreign players might face. Now, as we near the end of our discussion, could you share your perspective on the government policies and support that have facilitated the growth of startups in India?
Mr. Kommu: Historically, in the fintech space, government support has been crucial due to the regulatory nature of this sector. From the perspective of lending tech, for instance, every user’s digital journey today is closely linked to various government policies developed over the years.
Consider the impact of the Aadhaar Act, which revolutionized digital customer onboarding. It eliminated the need to visit a bank branch or produce physical documents for insurance, bank account openings, or loans. Instead, users can securely provide their entire Aadhaar details via OTP, thanks to the government’s efforts.
Furthermore, government actions like the introduction of credit bureaus in 2006 dramatically expedited the underwriting process, allowing banks to assess customers in minutes or even seconds. Recent RBI regulations, particularly those related to UPI and payments, have spurred remarkable growth in companies like Paytm and a surge in startups in the UPI ecosystem. Looking ahead, the government’s Account Aggregator initiative is poised to revolutionize data sharing and address data availability challenges.
These government-led initiatives have significantly reduced the time required to access financial services. Just a few years ago, it was unimaginable to open a bank account in under ten minutes or secure a loan in less than 15 minutes. Today, even in the home finance sector, some clients are achieving a 15-minute turnaround time for home loan approvals, all made possible by government digitization policies.
Moreover, these policies have propelled financial inclusion. Previously, without digital access, financial products were limited to the top 10 or 50 million customers. Now, apps like Groww or Zerodha enable individuals in tier 3 and tier 4 cities to invest in stocks within 15 minutes, using only a mobile phone from their homes. This increased financial inclusion is a direct result of government initiatives.
StartupTalky: What are your future plans with Digitap?
Mr. Kommu: So, with the advent of account aggregator, we definitely feel that there is a huge opportunity for us, at least in India, to create differentiating data models that will help on several use cases pertaining to lending, marketing, and collections. Whether it be onboarding, underwriting, or collections payments, we see a huge potential, at least in the near term, for data-driven solutions across the value chain in the lending space itself.
We still feel that there is a gap that needs to be addressed, which can be addressed with the usage of data coming out from the account aggregate ecosystem itself. And we also see a huge potential for international expansion, especially in data-driven models. When it comes to the usage of data, western countries have solved the problem of data availability in terms of digitizing every aspect of their data transaction, but I still believe that there are still gaps in their ability to use the data. We can utilize this, and that will be our expansion plans in the foreign market.
StartupTalky: Thank you, Mr. Kommu, for sharing your insights and future plans. It’s evident that Digitap is at the forefront of fintech innovation, and your contributions to the industry are noteworthy. We wish you continued success in your endeavors.
Mr. Kommu: Thank you, Sayantan. It was a pleasure being here, and I appreciate the opportunity to share our vision and insights.
About Digitap
Digitap empowers financial institutions through its extensive, alternate data-based risk management stack and high-tech advanced AI/ML solutions to new age internet has driven businesses for reliable, fast, and 100% compliant Customer Onboarding, Automated Risk Management along with Big Data enabled services like Risk Analytics and Customized Scorecards. The company’s proprietary Machine Learning Algorithms and Modules provide one of the best success rates in the market. Working with the largest digital lenders in India, the team brings together deep and vibrant experience in Fintech Product and Risk Management, Management Consulting, and Consumer Retail/E-commerce Business.
TikTok, one of the most valuable media brands worldwide, has a brand value of $66 billion in 2023, $59 billion in 2022, and $18.75 billion in 2021. It is a China-based video-sharing social networking startup owned by the Chinese company ByteDance. TikTok allows users to upload a variety of short-form videos, from genres like dance, comedy, and education. The duration of the videos has been expanded to 10 minutes from 3 minutes (originally 1 minute).
This application gained popularity in a very short period. It became extremely hyped among teenagers. As of now, it has over 1.5 billion monthly active users worldwide. TikTok is the next big thing!
Top 10 Stats to Know About TikTok
Here is a quick snapshot of key TikTok insights:
Origin: Started as Douyin in 2016 by Chinese tech company Bytedance. Launched internationally as TikTok in September 2017. Became popular in China before its international expansion.
User Base: Over 1.5 billion active monthly users globally (Q3 2022). Combined with Douyin users the user base exceeds 2 billion.
Daily Video Views: Over 1 billion videos are viewed daily on TikTok. Content diversity and creator tools contribute to this engagement.
Social Media Ranking: 6th most popular social media platform globally.
Download Numbers: Over 3.5 billion total downloads since launch. Most downloaded app in 2022 with 571 million downloads (Q1-Q3).
User Age Range: 25-34 age range accounted for 25.4% of US TikTok users in 2022. Combined with the 18-24 demographic, 49.3% of users were adults aged 18-34.
Engagement Rate: TikTok’s engagement rate is higher than Instagram, YouTube, and Facebook. Micro-influencers achieve around 18% engagement.
Global Reach: 20.83% of internet users worldwide (4.8 billion) were on TikTok in 2022. It’s available in 154 countries and translated into 75 languages.
User Frequency: 90% of TikTok users access the app daily. Higher user engagement is due to addictive content and relevance.
Indian Ban: Banned in India but still available in 154 countries.
Here are some more amazing facts about TikTok that you probably didn’t know about:
TikTok is predominantly used by younger age groups. But it’s no longer just an app for teens. The 25-34 age group accounted for 25.4% of TikTok users. When combined with the 18-24 age group which is 23.9%, adults in the 18-34 age group accounted for 49.3% of US TikTok users. Also, the age group of 12-17 accounted for 17.7% of US TikTok users in 2022.
TikTok was initially named Musical.ly
One morning Musical.ly users woke up and were surprised to see the app replaced with a new name and a brand new logo! TikTok was named Musical.ly and was again renamed in August 2018.
Bytendance’s parent organization, TikTok got it for a billion dollars in the wake of seeing the accomplishment of the application Musical.ly. Then the two apps were merged and another application called TikTok was created. Today, TikTok App is valued at $400 billion.
TikTok is banned in India
TikTok, the short-video streaming application, was a momentous accomplishment in India when it was released in September 2016, TikTok was permanently banned in India in August 2020 over public safety issues.
India had nearly 200 million users and the fast-growing community suffered a massive blow from this decision. It has been a year since the boycott, and the app, presently neglected and criticized, was once a source of income for some content creators.
Time-management feature in TikTok
TikTok’s Screen Time Management feature offers its users the flexibility to decide the amount of time they spend on TikTok daily. Users can now limit their screen time on TikTok with the help of this feature.
At first, TikTok offered users the chance to restrict screen time to two hours of the day. Presently, users can choose new time limit points of 40, 60, 90, or 120 minutes and choose how long they need to spend on the application each day. This feature is password-encrypted, and valid for 30 days.
If users exceed their screen time limit, they must enter their security password to keep using TikTok. This feature can be found in the Privacy and Settings, under the part Digital Wellbeing section.
In comparison to other social media apps, TikTok has more actively engaged users. Around 34% of all users upload at least one video each day. Like some other social stages, you will develop your crowd by posting consistently. This is because of TikTok’s algorithm- Posts of users with no followers can also go viral and reach millions of people in a day.
TikTok gives its clients an extraordinary natural reach. The TikTok analytics is incredibly sharp and shows what people demand to see.
An average TikTok user spends 50 minutes or more daily
A normal TikTok user spends an average of 50 minutes each day on the application every 24 hours. These users revisit the app several times a day to share content with their friends and post them on other social media platforms.
This data can be viewed as generally significant to those endeavoring to benefit from Ad income and is a good insight to use when promoting plans for brands that are on TikTok. That number is at par with Facebook and Instagram and shows an excellent future for the application.
The application organizers mainly focus on developing an engaging and addictive application. TikTok is particularly addictive, and several users spend a couple of hours every day scrolling through it.
TikTok is used in 154 countries
TikTok has 122 million users based in the United States of America solely, which is the highest by country. Douyin, the Chinese version of TikTok, is one of the most popular apps in China. It has over 700 million daily active users. The TikTok stage has been particularly invited in other Asian nations like Japan, Vietnam, Malaysia, Indonesia, and Thailand.
Countries With the Largest TikTok Audience as of July 2023
TikTok is used more by women than men in the United States
TikTok insights show that 60% of its dynamic users are females while the rest are men. Furthermore, the females are additionally comprised of more individuals between 20 to 29 years old than those between 13 to 19 years.
More than 1.5 billion people use TikTok
As indicated by TikTok insights, more than 1 billion individuals overall are regularly using TikTok. That is much more than Twitter, LinkedIn, and Snapchat. Long gone are the days when TikTok was just a lip-syncing video app.
Today TikTok has over 1 billion monthly active users worldwide and more than 138 million monthly users in the US, and this number is increasing every day.
Songs and Dance trends have gone viral due to TikTok
Many dance trends and songs have turned into web sensations because of the TikTok application. Because of the adaptability that TikTok awards its users, numerous viral online video trends have effectively developed since the worldwide arrival of the application.
The music used by lip-syncing videos and dance trends on TikTok has also become a web sensation on music-sharing applications, for example, Spotify because of TikTok’s free usage of the audio content. Furthermore, sound from any media can likewise be used on TikTok like TV talk and live recorded media.
Most-followed TikTok creator worldwide
As of August 2023, Khaby Lame is the most-followed TikTok creator worldwide with over 162 million followers.
Highest-earning TikTok creator worldwide
As of August 2023, Charlie D’Amelio is the highest-earning TikTok creator worldwide.
FAQs
Why is TikTok so popular?
TikTok is a popular app for creating, watching and sharing short videos. The app is entertaining, addictive, and very engaging. One can get viral over a short time and be a TikTok star. One can generate income as well from TikTok.
Who is the founder of TikTok?
Zhang Yiming is the founder of TikTok.
What is the valuation of TikTok?
As per estimates, the valuation of TikTok is over $50 billion and its parent company ByteDance is worth over $300 billion.
Which country has the most number of TikTok users?
With over 138 million users, the US has the most number of TikTok users.
Suneet Kumar Singh, Founder of Contentholic, getting awarded by Ameesha Patel at the Ace Influencer & Business Awards, Mumbai (2022).
New Delhi (India), September 16: Every year, Millions of students from India aspire to study abroad and work hard to align the whole process to make it happen smoothly. Pursuing higher studies from an international university is truly a life-changing experience and opens wide doors to a whole new world of opportunities. But the journey is not as easy as it looks and takes a lot to finally realise the dream.
To embark on this study abroad journey, one must navigate through the complexities of the whole process and then plan it accordingly to avoid wasting time and money. Many students hire study abroad consultants to get the whole process done professionally and leave everything on their shoulders blindly which is a wrong practice. As an educated person, you must understand the whole process and discuss everything with your visa agent or consultant. Most of the candidates always lack the most important part of their application, ie. a statement of purpose.
Suneet Kumar Singh, the founder of India’s first formal SOP Writing Agency – Contentholic, shares his valuable experience of the last 13 years in the higher education and the study abroad industry. According to his experience – Among all the components of the whole journey of higher education abroad, SOP Writing is the most important factor that is always overlooked by the agents and the candidates. Some of the aware candidates or agents hire professionals for SOP writing services to get the best job done by experts, while some opt for writing their SOP on their own.
Understanding What is a Statement of Purpose (SOP)
For those who have never heard of SOP before, let’s start with the basics. Statement of Purpose which is abbreviated as SOP is a kind of written statement, application, or story that enables you to present your profile and candidature for admission to top-tier universities or visa permits.
SOP writing plays a vital role as a key component of the application where the candidate gets the opportunity to address directly to the admissions committee, unline transcripts, and LORs. It’s a chance to tell your story, showcase your aspirations, and reveal the person behind the grades and test scores. SOP is your voice in the application process, a narrative that allows you to express yourself and establish your candidature and intent for that particular course or university. It allows you to convey your personality, motivations, and the driving forces behind your desire to pursue higher education abroad. Admissions committees are not just interested in your academic achievements; they want to understand what makes you tick.
In a sea of applicants with similar academic backgrounds, extracurricular activities, and test scores, a well-crafted statement of purpose can make you memorable. It’s your opportunity to differentiate yourself and leave a lasting impression. If you are not sure of your writing skills then you can try consulting professionals by searching – SOP Writing Services near me on Google.
Crafting a Compelling Statement of Purpose (SOP)
Now, let’s get into the fundamentals of writing a compelling SOP. Consider this as a monologue where you have to speak in front of the selection committee and they have to judge you on the basis of your speech along with the reviewing documents in accordance with your speech. The only difference is that you do not have to speak, instead, you have to present the same in a written statement.
Before writing the statement of purpose, it is very important to do proper planning to make an outline structure with all the information you have. A well-organized SOP typically includes an introduction, academic background, relevant experiences, goals, and a conclusion. Each section should flow seamlessly into the next, creating a cohesive narrative. Balance is key when it comes to conveying your qualifications and you should always focus on your challenges and learnings from education and work experience. While it’s important to highlight your achievements and avoid exaggeration of the same, you should stay humble and avoid self-praise. Always provide relevant examples to support the skills and merits you write in your SOP. Avoid using generic statements and always give reasons in support of your opinion. It is always better to keep it original and authentic to enable it to sound genuine.
Lastly, don’t underestimate the importance of proofreading and editing. Typos and grammatical errors can detract from the overall quality of your SOP. Take the time to review and refine your statement of purpose or admission essay before submitting it. If you’re finding it challenging to craft your SOP, you might consider seeking assistance from SOP Writing Services.
Customize Your SOP to Be Specific to the University and Program Requirements
“One size does not fit all” – the same is the case when it comes to SOPs for university applications in top-tier universities. Different study programs and different universities/colleges have different requirements and expectations from the candidates. Thus, a single statement of purpose will not help you to get through because a single draft would be too generic to fit all the programs and universities.
Customization of the SOP for each program and university is essential as it will showcase your genuine interest and show that you’ve done your homework. You should do thorough research about your university and about the program offered by them and you can write about some specific modules which you are most interested in. You should also talk about the faculty, and the student community, and explain how can you contribute to their community.
Addressing these answers in your statement of purpose can make it very impactful for your selection.
The Dos and Don’ts of SOP Writing
Please go through these guidelines with clear do’s and don’ts to make sure you do not commit a blunder.
Dos:
Be honest, concise, and straight to the point.
Show your intent, passion, and enthusiasm for the subject.
Use specific examples to illustrate your points.
Give yourself ample time to prepare the draft.
Take feedback from seniors, mentors, or consultants.
Highlight your unique qualities and experiences.
Don’ts:
Don’t plagiarize (don’t copy content from other sources).
Do not exaggerate and avoid self-praise.
Do not replicate your resume in SOP.
Do not use too much technical jargon.
Do not use a negative tone and avoid criticism.
Do not procrastinate and start as early as possible.
A well-written SOP is an investment that reaps results in the form of top admits and visa permits. As stated above, do not consider it just an additional document, it is a linchpin to your journey of dreams abroad. Crafting an effective SOP takes time and effort and thus you should plan it well to make a stellar statement of purpose. If you’d like further guidance or assistance in crafting your SOP, you should consider hiring professional SOP writers or an agency that offers SOP Writing Services.
KKR to invest $250 million in Reliance Retail, increasing Reliance’s valuation to $100 billion. It translates into an additional equity stake of 0.25% in Reliance Retail on a fully diluted basis.
KKR & Co. Inc. (KKR.N) has significantly strengthened its investment in Reliance Retail Ventures Limited (RRVL), the flagship retail arm of Mukesh Ambani’s sprawling business empire. The global investment giant injected an additional $250 million in Indian billionaire Mukesh Ambani’s Reliance Retail Ventures, which has valued the Indian retail giant at $100 billion, solidifying its status as one of Asia’s top companies by equity value.
The New York-based private equity firm’s latest investment translates into an additional equity stake of 0.25% in Reliance Retail on a fully diluted basis. This increases KKR’s total equity ownership in Reliance Retail Ventures to 1.42%, affirming their faith in the company’s capabilities.
Ms Isha Mukesh Ambani, Director, of RRVL, said, “We are pleased to receive continued support from KKR as an investor in Reliance Retail Ventures Limited. We highly value our deepening partnership with KKR, and their latest investment in RRVL after their previous investment further reinforces their strong belief in RRVL’s vision and capabilities. We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge, and operational expertise, in our journey towards driving transformation of the Indian retail sector.”
KKR Ups Stake In Reliance Retail, E-Commerce Giant Enters The $100 Billion Club | N18V | CNBC TV18
Reliance Industries subsidiary Reliance Retail Ventures has been attracting considerable attention and investment lately because of its expansive operations. From grocery to electronics, Reliance Retail’s diverse portfolio includes partnerships with global brands like Jimmy Choo, Marks & Spencer, and Pret A Manger. With over 18,000 stores, the Mumbai-based conglomerate competes fiercely with international giants like Amazon (AMZN.O) and Walmart’s (WMT.N) Flipkart.
KKR’s latest financial infusion into Reliance Retail is primarily sourced from its Asian Fund IV, which is subjected to regulatory approvals, as confirmed by Reliance. Morgan Stanley acted as financial adviser to Reliance Retail.
Mr Joe Bae, Co-CEO, of KKR, said, “We are pleased to extend our relationship with Reliance Retail Ventures Limited. Throughout our investment period in Reliance Retail, we have been impressed by the company’s vision and extensive work to empower retailers across India through digitalization, as well as by its resilience and performance in spite of the pandemic and other disruptions. We look forward to continuing to work alongside the Reliance Retail team to support the company’s mission to build a more inclusive Indian retail economy.”
Mr Gaurav Trehan, Head of Asia Pacific Private Equity and Head of India, KKR, added, “Reliance Retail is a true corporate leader and innovator in India, and its differentiated model has the potential to digitalize and transform the country’s retail industry. We are pleased to have the opportunity to continue collaborating with this team and pursue the growth opportunities ahead.”
KKR’s latest investment strengthens its belief in Reliance Retail’s vision and potential. As the Indian retail sector continues to evolve, KKR’s deepening partnership with Reliance Retail is expected to yield mutual benefits.
Reliance Retail’s Remarkable Growth
The trajectory of Reliance Retail’s growth has been nothing short of remarkable. In 2020, it secured $5.71 billion in funding by selling a 10.09% stake to various investors, including KKR, the Saudi Public Investment Fund, General Atlantic, and the United Arab Emirates’ Mubadala. KKR’s initial investment in 2020 amounted to $669.65 million. Ambani recently shared that the 2020 fundraising increased the valuation of the business to approximately $52 billion. Astonishingly, in less than three years, the value of Reliance Retail has nearly doubled.
Reuters reported earlier this month that the company is in advanced talks with global investors to raise an additional $2.5 billion by the end of September, ahead of a potential stock market listing. This aligns with Ambani’s 2019 statement to take its retail business public within five years.
Revenue of Reliance Retail from Financial Year 2012 to 2022
Reliance Retail’s Expansive Operations and Global Partnerships
Reliance Retail’s financial performance has been commendable. For the fiscal year ending in March 2023, Reliance Retail reported a consolidated net profit of $1.11 billion on revenues totaling $31.7 billion. This robust performance has coincided with Reliance’s aggressive acquisition of numerous small grocery and non-food brands as part of its strategy to establish a consumer business with annual sales of $6 billion within five years, thereby challenging international giants like Unilever (ULVR.L).
Last month, JP Morgan analysts stated that the medium-term investment case for Reliance India Limited (RIL)is driven by strong cash flows and the ability to invest in growth businesses and potential value-unlocking in the medium term.
FAQs
What is Reliance Industries Limited?
Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated revenue of $118.6 billion, cash profit of $15.3 billion, and net profit of $9 billion for the year ended March 31, 2023. Reliance’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), retail and digital services. Currently ranking 88th, Reliance is the largest private sector company from India to feature in Fortune’s Global 500 list of “World’s Largest Companies” for 2023. The company stands 45th in the Forbes Global 2000 rankings of “World’s Largest Public Companies” for 2023 – the top-most among Indian companies.
What is Reliance Retail Ventures Limited?
RRVL, through its subsidiaries and affiliates, operates an integrated omni-channel network of over 18,500 stores and digital commerce platforms across Grocery, Consumer Electronics, Fashion and lifestyle, and Pharma consumption baskets and has partnered with over 3 million merchants through its New Commerce initiative. Reliance Retail Limited, a subsidiary of RRVL, is the only Indian retailer in the global Top 100 and amongst the fastest-growing retailers globally as per Deloitte’s Global Powers of Retailing 2023. RRVL reported a consolidated turnover of $ 31.7 billion and a net profit of $ 1.1 billion for the year ended March 31, 2023.
What is KKR & Co. Inc.?
KKR & Co. Inc. is a leading global investment firm that offers alternative asset management capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit, and real assets and has strategic partners that manage hedge funds.
StartupTalky is thrilled to have Mr. Bhavik Vasa, Founder and CEO, of GetVantage as our guest, for a captivating discussion on critical topics. Given the growth potential of the economy, today’s discussion focuses on how GetVantage plays a crucial role in addressing the credit deficit in the SME market. A recent industry report published by GetVantage, in collaboration with Redseer, sheds light on a $500 billion credit opportunity in the SME sector.
Bhavik Vasa’s expert insights along with GetVantage’s mission to simplify venture finance will undoubtedly enhance our understanding of this ever-changing landscape. Additionally, we will explore government policies, the crucial aspect of data protection, and the hypothetical possibility of data as collateral during our conversation.
StartupTalky: Today, we have with us the Founder and CEO of GetVantage, Mr. Bhavik Vasa. Good evening Bhavik. Welcome to StartupTalky. It is a pleasure for us to have you with us today.
So, today we’ll be discussing various topics related to data protection and government policies in the context of Indian startups, in addition to the credit report published by GetVantage in collaboration with Redseer. I hope that it will be a very insightful conversation and that our audience will be highly enlightened about the market.
Bhavik Vasa: Yes, thank you. A pleasure to be here and talking and sharing insights from what vantage point we have on the growth that the Indian economy is going to be seeing.
StartupTalky: Sure, let us jump right in with my first question for you. How do you envision GetVantage’s role in addressing the credit deficit? According to a recent report, there is a potential credit deficit of 220 billion in the digitized MSME sector, with an opportunity of about 500 billion in the sector. How do you foresee GetVantage capitalizing on this market?
Bhavik Vasa: I believe the industry report we recently published further underscores an opportunity that we all recognize within the Indian economy. As of now, India boasts a $3 trillion economy. To realize the ambition of reaching a $5 trillion economy in the next five to seven years, a substantial infusion of capital is essential to fuel this growth.
India has traditionally thrived on its small businesses, and to attain the targeted GDP growth, we must foster the growth of these enterprises by facilitating access to capital. And I think that is what truly our passion and mission at GetVantage is – How do we make sure that this sector, which has always been a priority sector, gets access to capital that is more frictionless, simpler for every small business and startup out there that is growing month on month, quarter on quarter.
The only way to really do this right is by using the power of technology and data. If we can use the power of the fintech platform that we have built and the amount of real-time data we can pull on a business, we can quickly evaluate the business and create a complete journey to onboard a business, evaluate them, and get money to them as quickly as possible. That is where tech and data, along with AI and Machine Learning-driven analysis, will come into play to get access to capital that is more democratized.
StartupTalky: That is a very insightful perspective, Bhavik. Since you talked about what needs to be done, I would like to ask what GetVantage is doing to address this issue.
Bhavik Vasa: The way we put it is that a lot of fintech companies say that they’re disrupting something. We actually say we are not disrupting anything; we are simplifying venture finance. That is the simplest way I can put it. We are probably the country’s first truly digital platform, where right from the onboarding journey, to the application journey, we have simplified the process.
For years, small businesses have struggled to provide so much data and paperwork to qualify for a small business loan or financing. With our proprietary technology platform, driven by APIs and AI and ML-driven credit engines, we have created a frictionless and simple journey. Small business owners and startup founders can come online to our portal, GetVantage.co, and quickly start their process by connecting a few data points like their PAN, GST numbers, bank accounts, and real-time online platforms. From that application journey to quick evaluation, we can evaluate and disburse money to a business in 48 to 72 hours.
Our goal is to make finance paperless and funding performance-driven, making it accessible to businesses from metro cities to small Tier 2 towns. We want to ensure businesses can quickly access financing ranging from Rs 5 lakh to Rs 5 crore in just a few days by connecting their data and completing an online application with GetVantage.
StaryupTalky: Maybe that is one of the main reasons why the concept of digital lending came into effect. Earlier, there was a lot of bureaucracy and longer processing times for traditional lending institutions to disburse loans and credit. So, definitely, the development of this sector has streamlined the process for businesses.
Bhavik Vasa: Absolutely, Sayantan. The digital lending space has transformed access to capital for businesses and made the process significantly more efficient and accessible.
StartupTalky: So, moving on to government policies, what is the government doing to facilitate the growth of lending institutions and the MSME market so that there is a smooth flow of capital?
Bhavik Vasa: The government is currently at an inflection point in terms of fostering the growth of small businesses and MSMEs. These sectors have always been a priority for lending, and the government recognizes their importance for the overall economy.
In recent budget sessions, the government has allocated substantial capital for priority sector lending and introduced corporate guarantee schemes to fuel the growth of small businesses. There is a strong awareness of the need to support these sectors to achieve the goal of becoming a $5 trillion economy. This involves identifying the importance of these sectors at the government and Finance Ministry levels, along with the active participation of industry players. The government’s efforts are aligning well with the growing importance of small businesses and startups in India, and there is a significant amount of capital earmarked for these sectors.
Now the challenge is to ensure that this capital reaches small businesses efficiently, which is the role of industry players like GetVantage. We need to innovate and leverage technology to make the entire process more seamless and provide quick access to various forms of capital.
StartupTalky: Indeed, it is a pivotal time for the government, regulatory bodies, and industry players to collaborate and ensure the smooth flow of capital to small businesses and startups.
Now, moving on to startups, they play a crucial role in the economy. How do you see the startup initiative, especially the G20 Summit, helping the growth of Indian MSMEs? Will they be endangered by foreign competition or be able to prosper more in the global market?
Bhavik Vasa: There could not be a better time to launch a new brand, business, or startup than in India right now. The market dynamics are playing out favorably for startups and small businesses.
Startups are essentially emerging brands across various sectors, and GetVantage has backed over 500 emerging brands and startups in 18 different sectors. These startups are representing the local consumption trend, and “local for local” is becoming increasingly popular. Indian consumers are opting for Indian brands, and this trend is being further boosted by equity capital and foreign investments pouring into local startups and brands.
The game is just getting started, and as we get more forms of capital into the hands of small businesses and brands, there is no stopping them from achieving their growth potential and competing effectively, whether it is against other local players or international ones.
StartupTalky: Absolutely, the support for startups and the growth of Indian brands is a promising sign for the economy. Now, let us dive into the importance of data.
Given the recent Digital Personal Data Protection Act of 2023, what measures is your company taking to ensure data protection for customers and businesses that are engaged with GetVantage?
Bhavik Vasa: Data is indeed crucial, and it is not only about data protection but also about secure access and utilization of data. Accessing data is the first step, and we start by making sure that accessing this data is seamless and secure. We aim to create a paperless and digital journey for small businesses, reducing the risk of data leaks and misuse. We follow strict security measures, including ISO standards and Infosec certifications, to ensure that data is accessed and handled securely.
Additionally, our technology platform allows us to monitor a business’s health in real-time through live connectors and APIs, adding another layer of security. This monitoring ensures that data remains secure and provides early warning signals if something goes awry. Data security and compliance are integral to our operations.
StartupTalky: It is reassuring to hear that data security is a top priority for GetVantage.
Now, let us explore the hypothetical concept of data as collateral. There already exists the practice of putting commodities in a warehouse as collateral. Now, do you see a future where businesses use their data as collateral to access credit? Also, how can such data be secured if it is used as collateral?
Bhavik Vasa: It is not a hypothetical scenario; it is happening in real time. Data is becoming a valuable collateral asset for businesses. Using technology and APIs, we access data directly from the source, ensuring there is no misrepresentation. This access to real-time data not only allows us to evaluate a business but also provides a live monitoring system throughout the financing tenure. It acts like an ECG for the business, giving us insights into its health and performance. This new form of collateral, live data monitoring, de-risks the lending model significantly and represents the real-time health of the business. It is a secure way to provide financing while continuously monitoring the business’s performance.
StartupTalky: That is indeed an innovative approach to collateral, utilizing real-time data to assess and monitor a business’s health. Bhavik, it has been really a highly informative and insightful conversation. Our audience will certainly gain a better understanding of the market and the role of GetVantage in it.
Bhavik Vasa: Thank you, Sayantan. It has been a pleasure discussing these important topics with you.
The realm of Software as a Service (SaaS) is constantly evolving, with an array of pricing models designed to cater to the requirements of businesses and customers. In this digital environment, SaaS providers are consistently exploring new and creative ways to determine the prices for their offerings.
In this article, we will explore the SaaS pricing models that are currently influencing the industry in 2023.
As the name suggests, in Flat-rate pricing, there is only one price that covers the product and all its features. All the customers have access to the same set of tools.
It is a very attractive pricing model as it does not discriminate between premium features and free features. It allows every user to unlock its full potential. It provides an even ground for both small and big companies to use all the features.
However, this pricing model does not provide flexibility, which means it does not let the user customize. This means that a user of this model may have the possibility to fall out to competitors that offer flexible options.
Usage-based Pricing
Usage-based pricing is the best example of pay-as-you-go pricing. As the name suggests, this pricing model lets the customers pay based on their usage.
In this model, rates are determined by factors like the number of logins or the extent of usage within the product. Customers benefit from locking in a low base price, but they are restricted by the limitations imposed on their usage, such as the number of team members logged in simultaneously. This is an advantage to a business that aims to offer competitive pricing while maintaining healthy profit margins, making it appealing to customers who appreciate lower costs.
However, it may not suit all SaaS offerings, as the value perceived by customers may be tied more to their access to the system rather than the actual usage. The advertised price is often lower than the actual monthly bill, making it attractive to individuals and small businesses, who perceive it as a cost-effective option compared to larger enterprises
An example of usage-based pricing in SaaS can be seen in Oracle’s data integration platform.
Public Cloud Application SaaS End-user Spending Worldwide from 2015 to 2024
User-based Pricing
User-based pricing in SaaS is a pricing model where customers are charged based on the number of users actively or passively engaging with the SaaS platform.
There are two main variations: the user-based model and the active-user-based model. In the user-based model, customers are charged for every user account created, whether or not they are actively using the platform. In contrast, the active-user-based model charges customers only for users who are actively utilizing the SaaS platform, such as by logging in, making calls, accessing reports, or scheduling posts. Inactive users, such as those on sabbatical or no longer with the company, are not counted in this model.
This form of pricing can also be combined with other pricing models like Feature-Based or Tiered pricing. This pricing approach is straightforward and aligns with the number of individuals using the product, making it scalable with the platform’s adoption within a company.
Although it simplifies billing for both customers and SaaS companies, still it is important to look out for potential misuse like users sharing accounts to reduce their costs.
Examples of companies using user-based pricing include Zendesk, a CRM system, and Microsoft, which employs a familiar user-based pricing model.
Feature-based Pricing
Feature-based SaaS pricing is a strategic model pricing model that is suited for businesses offering products with diverse and customizable features. It is advantageous for both vertical and horizontal SaaS providers who seek to provide tailored options to clients. This approach begins with a base rate for the product and allows customers to selectively add features, tailoring the product to their unique requirements.
The advantage of feature-based pricing lies in its flexibility, making feature launches seamless as new functionalities can be added as optional add-ons. However, it demands close attention to individual customer needs, as each client essentially possesses a personalized version of the product.
Similar to tiered pricing, feature-based SaaS pricing charges customers per feature used. For instance, a base customer service system may offer add-on options like email automation and chatbot services for an additional fee. Pricing packages vary based on the number of included features, with higher-priced packages encompassing all features from lower tiers.
Examples of companies using feature-based pricing include Amazon AWS and Canva among others.
Tier-based pricing is a widely adopted SaaS pricing model that offers various package options for different user needs. In this model, each package, or tier, comes with its unique pricing and a set of features. Customers are given the freedom to personalize their subscription according to their needs enabling them to cater to types of buyers.
The main benefit of tiered pricing is its flexibility, which allows businesses to select the package that best aligns with their budget and requirements.
However, offering too many tiers with varying features can overwhelm customers and lead them to choose a competitor with simpler options. Striking the right balance, typically with three to five tiers, is crucial to prevent confusion. Tiered pricing is advantageous to SaaS companies as it enables upselling and recurring revenue growth.
HubSpot’s feature-based tiered pricing is a prime example of this strategy in action, intelligently catering to diverse customer feedback management needs.
SaaS Pricing Models Explained (Perfect Tiered Pricing and the Subscription Based Business Model)
Cost-based Pricing
Cost-based SaaS pricing, also known as cost-plus pricing, is a straightforward and fundamental pricing strategy where organizations calculate the total expenses associated with providing their service, such as product development and employee salaries, and then add a predetermined percentage as a profit margin. This means if it costs $100 to develop software, adding a 25% profit margin would result in a sale price of $125.
Cost-based pricing model lacks the flexibility to adapt to rapidly changing costs, such as marketing expenses or hiring new employees, which are common in the dynamic SaaS sector. Subscription prices cannot be continually adjusted to accommodate cost fluctuations, potentially impacting profit margins.
While cost-based pricing provides a simple and predictable way to set prices, it overlooks critical factors like competitor pricing, perceived product value, and customer price sensitivity. In the SaaS industry, where the cost of delivering a single account can be relatively low, pricing should be primarily based on the value customers derive from the product rather than just covering development and operational costs.
Freemium Pricing
The Freemium pricing model is a prevalent strategy in the SaaS industry where businesses provide a free, limited version of their software to attract users and encourage sign-ups. While the free version offers basic functionality and can be used indefinitely, advanced features are often restricted, incentivizing users to upgrade to a paid subscription.
Freemium is particularly appealing to B2B buyers as it allows them to try out a product without the need for sales consultations or demos. HubSpot, for example, utilizes the freemium pricing model to attract users.
This allows the customers to test the product before committing to a purchase. Users can sign up easily and experience the software firsthand, reducing the risk of them staying on a free plan indefinitely.
However, one major disadvantage of the Freemium pricing model is that it can strain resources without guaranteed returns and may leave free users dissatisfied if they lack access to essential company resources like support and bug fixes.
Mailchimp is a good example of the Freemium pricing model.
Value-based Pricing
Value-based pricing in the SaaS model is a strategy where the price of a product or service is determined by the perceived value it offers to the target audience, rather than being solely based on production costs or competitor prices. This approach prioritizes understanding what the customers truly want and how they perceive the worth of the software or service.
Unlike cost-based or competitor-driven pricing, value-based pricing allows SaaS businesses to charge a premium if customers recognize the significant value they receive. It is a dynamic strategy that permits periodic price reassessment, enabling adjustments or updates to the service.
While value-based pricing offers advantages like the potential to charge higher prices and achieve a favorable LTV: CAC ratio, it can be complex due to the ongoing need to understand customer needs and value perceptions. Nonetheless, for SaaS businesses, this strategy is highly recommended as it can drive growth and profitability by aligning pricing with the value delivered to customers.
Adobe is a good example of the Value-based pricing model.
Competitor-based pricing in the SaaS model is a pricing strategy that relies on competitor pricing as a reference point for setting the price of a product or service. A company can use this pricing model to make its offering higher, lower, or at the same level as that of its competitors.
This pricing strategy is particularly valuable for new SaaS software companies entering the market. In the early stages when the product’s value hasn’t been established and cost structures are still evolving, using competitors’ pricing as a reference point helps the user to find a competitive pricing sweet spot. It also accommodates cases where a company is still in the process of understanding the complete cost structure of its service.
Competitor-based pricing is straightforward but comes with limitations. It does not consider factors like market demand or production costs, which can lead to a lack of pricing innovation and missing revenue opportunities. Although it is a practical approach for staying competitive in crowded markets, it still may not fully exploit the unique value a product or service can offer.
Penetration Pricing
Penetration pricing is a dynamic pricing model which is usually adopted by new entrants in the SaaS market. This model involves initially setting the price of a product significantly lower than competitors to rapidly gain traction and establish a strong presence.
The key characteristic of penetration pricing is its temporary nature, often marked by a specific time frame that may or may not be disclosed to customers. While penetration pricing can be effective for market entry and gaining an initial customer base, it comes with the risk of short-term losses due to reduced pricing.
However, the strategy is often part of a broader “land and expand” approach, where companies later upsell and cross-sell additional features or higher-priced packages to their established customer base. Slack and New Relic are examples of companies that have successfully used penetration pricing to capture a significant market share before competitors can catch up.
FAQs
What are the most popular SaaS pricing models?
The most popular SaaS pricing models are:
Flat-rate Pricing
Usage-based Pricing
User-based Pricing
Feature-based Pricing
Tiered Pricing
Cost-based Pricing
Freemium Pricing
Value-based Pricing
Competitor-based Pricing
Penetration Pricing
What is Tiered Pricing?
Tier-based pricing is a widely adopted SaaS pricing model that offers various package options for different user needs. In this model, each package, or tier, comes with its unique pricing and a set of features. Customers are given the freedom to personalize their subscription according to their needs enabling them to cater to types of buyers.
Which company uses the Freemium Pricing Model?
Mailchimp is one of the companies that uses the Freemium Pricing Model.
Which companies use the Penetration Pricing Model?
Slack and New Relic are examples of companies that have successfully used penetration pricing to capture a significant market share before competitors can catch up.
The new 28% GST on online gaming has produced divided opinions about the industry’s future in India. Some experts condemn the GST hike, while others see it as boosting government revenues.
The Parliament’s new amendments in the Goods and Services Tax (GST) laws to levy a 28% tax on the face value of all bets made in online gaming, casinos, and horse racing destabilized the online gaming industry in the country. Further, the GST Council also agreed that there should be no distinction between a ‘game of skill and a game of chance’.
The online gaming sector, worth Rs 13,500 crore, accounted for 77% of India’s gaming sector revenue in 2022. As per the FICCI-EY report, these revenues were expected to grow to Rs 16,700 crore and Rs 23,100 crore in 2023 and 2025 respectively. Revenue Secretary Sanjay Malhotra has predicted that the new levy would fetch an estimated additional revenue of Rs 20,000 crore to the government.
However, the new GST law to levy a 28% tax on the face value of online games curtailed the growth of the industry resulting in large-scale lay-offs and cost cuts in prominent companies operating in the sector.
GST Sentimeter | GST Council Decides On 28% Tax On Online Gaming | CNBC TV18
Government’s Motive to Impose 28% GST on Online Gaming
StartupTalky spoke with several key figures in the online gaming industry regarding the government’s decision to increase the GST on Real Money Gaming (RMG). Most experts opine that this move is an effort to increase government revenue, while others think that this also carries an underlying motive of curbing the unregulated expansion of RMG in India.
Dr. Aruna Sharma, a policy advisor and practitioner development economist by profession and the former Secretary of the Ministry of Electronics and IT, Government of India, believes that the government’s decision to increase the GST on RMG is a complex one, and there are likely multiple factors at play.
“The online gaming industry is a growing sector, and it is a potential source of revenue for the government. The government’s decision to increase the GST on both games of skill and games of chance is primarily aimed at increasing government revenue. The state governments have supported this decision, as they believe that it will generate more revenue for them. The government has been facing a fiscal deficit for some time now, and it is looking for ways to raise revenue.”
Mr. Rohit Bansal, Founder, of Super 4, said, “It’s a delicate balance between revenue generation and addressing the broader societal concerns associated with RMG, highlighting the government’s efforts to strike equilibrium in a rapidly evolving industry.”
Mitesh Gangar, Co-Founder & Director, PlayerzPot commented, “A 28% GST on the entire face value of online gaming is poised to significantly impede the growth of the online gaming industry. Previously, companies were willing to take risks and invest substantial resources in their operations, but this new taxation scheme renders such endeavors unviable. It presents a series of challenges, including constraints on cash flow, which in turn limits a company’s capacity to allocate funds towards research, innovation, expansion, and even its overall survival.”
Indian Online Gaming Sector from the Year 2019 to 2023 With Forecasted Value for the Year 2025
Impact on Online Gaming Companies
The GST hike has caused serious hindrances in the revenue and workforce of several companies including unicorns. Fantasy gaming platform Mobile Premier League (MPL) has laid 350 employees so far, citing additional tax burdens. Other smaller players in the industry are dealing with layoffs, shutdowns, and funding challenges amidst the 28% GST on online gaming at full face value.
It also has undoubtedly imposed an increased financial burden on the companies. The additional tax has led to higher entry fees and reduced prize pools, making it more expensive for players to participate in fantasy leagues. This has ultimately resulted in a decline in player engagement and overall revenue for us as a brand.
When asked about the impact of the new tax on the company’s workforce, Bansal said, “To manage increased expenses resulting from higher GST rates, we have implemented cost-cutting measures. We have also made some operational adjustments, leading to shifts in workforce allocation, and job roles to optimize efficiency and reduce costs.”
Joy Bhattacharjya, Director General, Federation of India Fantasy Sports (FIFS) said that the decision would massively affect the $2.5 billion of Foreign Direct Investment (FDI) already invested and would jeopardize any further FDI in the industry.
Bhattacharjya also warned that this decision could result in users shifting towards unauthorized betting platforms, thereby posing a risk to users and causing a loss in government revenue.
Zacharias Tegefeldt, CEO and Co-founder, of TrophyRoom, while speaking about his company’s strategy to maintain a strong presence in the market and ensure positive growth, said, “Consumers will surely be pickier about where to place their funds going forward. It puts an increased emphasis on customer experience, support, etc. It also likely means that operators that do something new and different may be looked at differently. If I pay more, I want to experience more, so there’s an opportunity for companies like TrophyRoom, who focus a lot on product and gameplay innovation, to grab a larger piece of the market, by providing that extra spice to the experience. In a sense, it puts us in a rather unsuspected good position, since innovation and customer experience already make out the core pillars of our right to exist.”
However, when the 28% GST hike was announced, there were a lot of speculations about its impact on the esports industry as well. Clearing the confusion regarding whether the GST will have any sort of impact on the Esports or video gaming industry of the country, Mr. Vinod Tiwari, President, of the Esports Federation of India (ESFI) & acting Director General, of the Olympic Council of Asia states, “It is imperative to first understand that the 28% GST is going to apply to the iGaming sector, including Real Money Gaming (RMG), fantasy sports, teen patti, rummy, and poker which are categorized under gambling or betting in the rest of the world. Contrary to some media reports, this GST is neither applicable nor will it have any impact on the ‘Video Games’ or the Esports industry.”
“Esports has been officially recognized as a sport by the government which finally and thankfully distinguishes it from any activities like iGaming such as fantasy, teen patti, rummy, poker, betting, and gambling, among others. It will carry on being taxed the way it always has been. Theories of ‘game of skill’ and ‘game of chance’ which only exist in our country neither apply nor are relevant in the Esports ecosystem,” says Mr. Tiwari.
In April of this year, the government made amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 to lay out a comprehensive framework for the Online Gaming Ecosystem. According to Tiwari, instead of using the umbrella term of “online gaming”, the GST council should have ideally used the more specific term “iGaming’ which is known worldwide, or even “online real money game” which is defined in “The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules to avoid the confusion.
“We must acknowledge the TRUTH that the primary objective of the 400 million Indian video gamers (and approximately 3 billion gamers worldwide) is ‘purely entertainment’, and not financial gains or making money. It is regrettable that in India, our video games or esports industry is often unjustifiably associated with ‘iGaming, betting, RMG, gambling, and many more, which creates unnecessary confusion and misperceptions,” he adds.
Additionally, it is crucial to highlight that video game publishers have strict policies against implementing entry fees for any Esports events organized using their video games, further separating it from iGaming.
Gangar, when asked about the impact of the new GST on the willingness of aspiring entrepreneurs to enter this industry, said, “Aspiring entrepreneurs eyeing the online gaming sector will now think twice before venturing into it, primarily due to the burdensome GST. Consequently, the burgeoning gaming economy will face a substantial setback, resulting in economic strain, diminished job opportunities, and a stifled growth trajectory within the industry.”
Finance Minister Nirmala Sitharaman has targeted October 1 to roll out the tax along with an assured review of the levy six months after its implementation.
Tegefeldt said, “I hope for an amendment that addresses these quite serious issues. There needs to be a balance, which I don’t think has been achieved yet. If this needed amendment happens, I think it’s likely that the industry will see a rather quick dip, a new low, and then a resumption of growth after a while. If not, there are several different outcomes.”
On the other hand, being optimistic about growth in the industry, Bansal believes that trends like mobile gaming, localized content, and innovative gameplay are likely to drive expansion. He also shared that government regulations and consumer protection measures might become more stringent which in turn would affect the dynamics of the market. Collaboration between industry stakeholders and regulatory bodies will be pivotal for sustainable growth.
“Overall, the industry’s future will depend on its ability to adapt to changing tax structures, navigate regulatory hurdles, and meet evolving consumer preferences,” Bansal added.
However, Dr Sharma thinks that the Indian gaming industry has a huge potential to thrive, and the new regulation would foster a suitable environment for its development.
She said, “The government’s decision to increase the GST on online gaming is not intended to discourage the development of the gaming industry in India. The government believes that the Indian gaming industry has the potential to become a major hub, and it has already taken steps to regulate the industry and create a favorable environment for its growth. The increase in GST is simply a way for the government to raise revenue, and it is not expected to have a significant impact on the industry.”
Tegefeldt, anticipating the future, said, “A brighter future, from where I’m sitting, is indeed one where the hungry underdogs that actually bring something new and fresh to the table, get increased attention from the players. It would be an incredibly cool thing if the faster, leaner, and more creative underdogs can put some pressure on the larger operators and lead the way to a more fun future in gaming.”
While it is still one month away from the implementation of the Act, it is too early to predict the outlook for the online gaming industry or iGaming in India. The RMG industry in India faces a mixed outlook due to the change in tax regulations. While increased taxation may present challenges for operators, the industry is expected to continue its growth trajectory as online gaming gains popularity.
Havas Media report reveals how technology is shaping e-commerce and consumer experience in India. Increased smartphone usage and internet connectivity are providing comfort and accessibility to shoppers across the country.
The recent report- ‘Shaping Consumer Experiences: How India Buys & How Tech is Shaping E-Commerce Adoption & Experience’, published by Havas Media in collaboration with YouGov and NFX across 10 key markets, dug into the core of the Indian e-commerce realm. The report reflected the extensive incorporation of advanced technologies like Artificial Intelligence (AI), Augmented Reality/ Virtual Reality (AR/VR), AI-driven Chatbots, Web 3.0, and Open Networks for Digital Commerce (ONDC) and its pivotal role in facilitating business growth. The study also sheds light on how these technologies are playing a catalytic role in evolving consumer behaviors, preferences, and expectations.
Data collected from tech enthusiasts and online shoppers between 18 to 45 years old revealed that comfort and convenience are more important to both millennials (78%) and Gen Z (76%).
In terms of consumer behavior, gender-based segmentation reflects that women are conventionally more discerning by nature. User reviews have been the major decision-making factor for 85% of consumers while 81% of them check for offers and deals before shopping.
There is also a major change in behavior with a shift in geography from the North to the South. While 78% of consumers in the north and 80% in the west prefer to have a wider range of products, the consumers from the south and tier-3 cities, about 76%, are more budget-oriented. The study also showed that a large number of people from tier 2 and 3 cities end up spending more while shopping online than they would have spent while shopping traditionally.
Number of Annual Online Shoppers in India from 2019 to 2021, With an Estimate for 2027
Category-wise, grocery, personal care, fashion, and F&B are ranked higher in shopping habits. While appliances are the least shopped online products, online medicine/pharmacy shopping has seen a surge of 33% in the last year. The study also showed that social media has emerged as the main platform to discover new brands for 44% of shoppers. The platform is a stronghold in the category where visuals play a pivotal role, like fashion, make-up, grocery, and smartphones. While Instagram has the highest traffic among younger consumers, the older generation is still relying on Facebook.
Comfort and accessibility have been the key elements of online shopping. For the time-crunched urban residents, it brings the shopping experience to the comfort of their fingertips, thus enabling them to avoid the hustle and bustle of the city. On the other hand, it makes it more accessible for the smaller town people, providing them with wider choices and alluring deals. The shoppers are mostly in favor of shopping from top e-commerce websites like Amazon and Flipkart which offer facilities like easy returns, better service, and superior quality products.
Challenges and Concerns
However, the digital advancements still have left the users with uncertainty about the quality of the products. Even data privacy issues have ranked higher among shoppers across most regions barring the North, where there are more concerns regarding returns and limited control over the sellers.
Leadership Insights
Mohit Joshi, CEO, of Havas Media Network India said that the findings of this report emphasized the transformative power of technology in reshaping the retail landscape in India. He also shared that as consumers embrace the convenience and possibilities offered by e-commerce, businesses must adapt to these changing dynamics.
“At Havas, we recognize the significance of these trends and remain committed to innovating strategies that bridge the gap between businesses and tech-savvy consumers. Our data-driven approach enables us to create resonant and meaningful connections, ensuring that brands thrive in this evolving business environment,” Joshi added.
Sanchita Roy, Chief Strategy Officer, Havas Media India, added, “Understanding the nuances of consumer behavior at various city tiers is pivotal for brands to connect meaningfully with their audiences. The insights from this study underline the importance of localized strategies that align with distinct preferences.”
She also added that, as the retail landscape evolves, customization of marketing approaches becomes a powerful tool for capturing consumer loyalty and driving growth.
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