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  • 10 Best Product Management Books to Read in 2022

    To keep up with the advancement of technology and customers’ mindset, we need something that guides us correctly. That helps us maintain the balance in business, adapt to new things, and plan each move strategically. And that’s why successful product managers always surround themselves with good books on product management.

    In old times, learning a new thing could easily be managed alongside others. But with growing competition in the market, you cannot risk being outdated. Plus, to imply practical experience in product management, you surely need a book for guidance. However, picking a good product management book isn’t as easy as it seems.

    You can give it proper thought and learn about the author as well as whether they have practically implied his ideology and theory of their book or not. Your primary focus needs to be the case on studies and learning new techniques. And to help you out in picking the right books on product management, we have presented this article containing some of the greatest books. So, let’s get started!

    1. Getting Things Done
    2. Mastering Leadership
    3. The Lean Product Playbook
    4. Inspired: How to Create Tech Products That Customers Love
    5. Predictably Irrational
    6. The Product Book: How to Become A Great Product Manager
    7. Cracking the PM Interview
    8. Crossing the Chasm
    9. Launch: Roadmap to Product Management Success
    10. Shape Up

    1. Getting Things Done

    Author: David Allen

    Getting Things Done: The Art of Stress-Free Productivity - Best Product Management Book
    Getting Things Done: The Art of Stress-Free Productivity – Best Product Management Book

    A very well-known book written by David Allen who is widely recognized as the leading expert on personal and organizational productivity across the world. He has tutored several corporate managers and CEOs of some of the most prestigious American corporations, which made him enter Forbes’ list of top five executive coaches in the U.S.A.

    This book, Getting Things Done: The Art of Stress-Free Productivity, is considered one of the most influential business books and the supreme guide on personal organization.

    It comprises the entire way of approaching personal and professional tasks and has produced tons of websites, seminars, organization tools, and offshoots. The author has elaborated on different perspectives on the new workplace and the adaptation of various proven principles.

    2. Mastering Leadership

    Author: Robert Anderson and William Adams

    Mastering Leadership - Best Product Management Book
    Mastering Leadership – Best Product Management Book

    Mastering Leadership is considered the perfect guide for enhancing your Leadership qualities and turning them into a competitive advantage. It includes a systematic stage development model of leadership and the effectiveness of leaders, both individually as well as collectively.

    Both the authors, Robert Anderson and William Adams, have created a comprehensive roadmap of various leadership features such as a complete integrated universal model of leadership, and thorough research connecting the increased effectiveness of leadership and business performance.

    Moreover, you’ll also find the five stages of leadership evolution alongside the organization’s culture and structure developing at each stage.

    3. The Lean Product Playbook

    Author: Dan Olsen

    The Lean Product Playbook - Best Product Management Book
    The Lean Product Playbook – Best Product Management Book

    Product management grew massively with the beginning of the lean startup movement because of the increasing popularity and implications of lean product principles among people.

    However, with new theories and ideologies, many people struggled with implying such principles in their business. And that’s when Dan Olsen published “The Lean Product Playbook” book, as a step-by-step guide for startups and large-scale companies to imply Lean techniques into their business. This book is widely preferred when it comes to product management and is counted among the best books for it.

    This book includes the understanding of product failure because of a lack of fulfilling customers’ needs. And six amazing repeatable lessons on how to achieve this equation. It also includes product road maps and case studies on how to build and iterate products meeting target markets.

    4. Inspired: How to Create Tech Products That Customers Love

    Author: Marty Cagan

    Inspired: How to Create Tech Products That Customers Love - Best Product Management Book
    Inspired: How to Create Tech Products That Customers Love – Best Product Management Book

    Inspired, this book is considered a holy grail of product management books. It is authored by the Silicon Valley Product Group founder, Marty Cagan, who comes from a well-accomplished background.

    In this book, the author has mentioned all those big tech giants that he has worked for as case studies. Along with this, it includes those key issues that arise in tech product management and strategies with proven solutions.

    Here, you’d find all those key questions that you need to ask before marketing any product and making it a good market fit. And suiting the title, Inspired, helps and inspires its readers to come up with creative products meeting customers’ demands.

    5. Predictably Irrational

    Author: Dan Ariely

    Predictably Irrational - Best Product Management Book
    Predictably Irrational – Best Product Management Book

    In the book, Predictably Irrational, the author talks about the common assumptions in which we behave through various fundamental rational manners. It helps us understand human nature and why people sometimes behave irrationally.

    Whether it’s as small as choosing coffee or starting up a business, we go through underestimation, over budget, and procrastination. And we might think such behaviours are random or baseless, but actually, these are pretty systematic and predictable.

    And being the James B. Duke Professor of Psychology and Behavioral Economics at Duke University, Dan Ariely has great knowledge of human psychological behaviour. Through this book, which has been featured in the New York Times, the Washington Post, and other prominent platforms, the author has elaborated the whole concept of being predictably irrational.

    6. The Product Book: How to Become A Great Product Manager

    Author: Carlos González de Villaumbrosia and Josh Anon

    The Product Book: How to Become A Great Product Manager - Best Product Management Book
    The Product Book: How to Become A Great Product Manager – Best Product Management Book

    The Product Book is a go-to choice for anyone looking to sharpen their professional skills and a true classic for all product managers. This book includes all the information needed for product management and how to lead a fulfilling product team.

    In simpler words, the authors have written this book as more of an interview book for product management. It helps the reader to lead the product team structurally and cooperatively. The book is based on the current curriculum of product institutions, as it includes practical lessons, tips, and techniques. And most importantly, this book has literally answered what a product manager does.

    7. Cracking the PM Interview

    Author: Gayle McDowell

    Cracking the PM Interview - Best Product Management Book
    Cracking the PM Interview – Best Product Management Book

    Being the ultimate interview preparation book for product managers, Cracking the PM Interview, is authored by the founder and CEO of CareerCup. He has also authored Cracking the Tech Career and Cracking the Coding Interview.

    Along with this, Gayle McDowell has great years of experience working in companies such as Microsoft, Google, and Apple as a software engineer. This gave him an amazing experience of interviewing various product managers. For all those aspiring product managers, Cracking the PM Interview by Gayle McDowell is the best book to prepare for the interview.

    8. Crossing the Chasm

    Author: Geoffrey Moore

    Crossing the Chasm - Best Product Management Book
    Crossing the Chasm – Best Product Management Book

    We often wonder how ‘some products often get more successful in a progressively large marketplace than others.Crossing the Chasm book talks about this. The author has explained why this happens and how much impact the ability to cross chasm the audience holds.

    The main thing that any product manager needs to do in the early market which usually gets dominated by Early Adopters, Innovators, and the Majority in the Technology Adoption Life cycle.

    This book came out in the early 90s and since then, it has been proving its significance and capability in the market. It discusses the principles of crossing the chasm and guides the readers to deal with advanced technology.

    9. Launch: Roadmap to Product Management Success

    Author: Nathan Thomas

    Launch: Roadmap to Product Management Success - Best Product Management Book
    Launch: Roadmap to Product Management Success – Best Product Management Book

    With the increasing advancement in the field of technology, every product manager needs a guide or roadmap on professionalism, their established legacy, and their area of interest. A book written by Nathan Thomas named Launch: Roadmap to Product Management Success, helps the readers to adapt their ways to the latest trends and tech cultures.

    In marketing, blockchain, machine learning, and other innovations have heightened the usability of products. And this book is a great preference to learn the adaptation of such opportunities from experienced product managers.

    10. Shape Up

    Author: Ryan Singer

    Shape Up - Best Product Management Book
    Shape Up – Best Product Management Book

    Shape Up, is another very amazing product management book authored by the head of strategy at BaseCamp, Ryan Singer. This book discusses the tips and techniques behind the successful products launched by BaseCamp for more than 15 years of its establishment, along with proper workflow.

    This book is considered a must-read for every product manager who has an interest in the Agile process beyond scrum. Plus, it includes well-structured and proven strategies that need to be adapted by any workplace for its development.


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    Conclusion

    In conclusion, we can say that, along with practical understanding and experience, learning the latest technology and adapting new strategies are equally important in product management. And to learn this, there are several books on the market that you can find and will surely help you in some ways.

    The secret behind any successful product manager is their thrust to learn new things and adapt them to practical experience. The above-mentioned books are proven to be very helpful for product managers. So, gather these and get started with leading a successful product team.

    FAQs

    What are the three major areas of product management?

    The three major areas of product management are product discovery, product planning, and product development.

    What are the four critical skills of a product manager?

    The four critical skills of a product manager are strategic thinking, data analysis, excellent negotiation skill, and technical expertise.

    What do you learn in product management?

    Product management is the complete journey of a product right from researching, planning, developing, and selling it. Product management teaches the invention of new products as per the need and the optimization of the same product as per the customer’s requirement.

  • How Amazon Ads Are Killing Facebook Ads?

    Nicole Perrin, Principal Analyst at research firm eMarketer made an observation, “The pandemic zapped us two years into the future on the e-commerce side.” The pandemic and its disastrous effect on the economy in 2020, forced companies to take a long and hard look at their advertising plans and platforms.

    This was proven with the increase in the global digital marketing valuation from USD 290 billion in 2019 to USD 305 billion in 2020. This growth is expected to further expand at a CAGR of 17.6% to reach an estimated valuation of USD 807 billion by 2026.

    The reason for the quick rise of the digital marketing industry is the increasing penetration of the internet, smart devices and the increasing prevalence of social media platforms.

    By 2020, the three giant tech companies, Amazon, Facebook and Google dominated the digital advertising sectors and the pandemic catapulted them into command positions of the entire advertising economy. According to GroupM’s provisional report, they collected the majority of all ad spending in the US in that year. Ad industry veteran, Tim Armstrong said – “These companies that are data-science-driven get stronger and faster with a tailwind of usage—and Covid was a hurricane.”

    Triopoly Comparison – Amazon, Facebook and Google
    Amazon’s Rise in Digital Advertisements
    Reasons Why Amazon Ads Are Better Than Facebook Ads

    Amazon Pay-Per-Click Advertising Tutorial for Beginners

    Triopoly Comparison – Amazon, Facebook and Google

    The pandemic and the restarting of the economy in the year 2020 actually helped interactive advertising. This was visible in the quarterly financial announcements of the three big tech giants.

    Alphabet, Google’s parent company, reported USD 55.3 billion in revenue for the March quarter of 2021, which was a 46% rise from the March quarter of 2020. The revenue of Facebook, almost completely from advertisements, was USD 26.17 billion in 2021, a 48% increase from the same quarter in 2020. Amazon’s much lower profile advertisement business showed maximum and the fastest growth of 77% from the March 2020 quarter. It reported a revenue of USD 6.9 billion in the first quarter of 2021. Amazon’s stunning growth is attributable to its horde of purchasing data, and it is now challenging Facebook’s advertisement revenue.


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    Amazon’s Rise in Digital Advertisements

    Amazon's Share of Digital Advertising Revenue Worldwide (2020-2026)
    Amazon’s Share of Digital Advertising Revenue Worldwide (2020-2026)

    Amazon began its advertisement business by offering display and search advertisements on its site. With time, the company added more ad products, with the result that its offering now resembles more to that of Facebook.

    Brian Olsavsky, Amazon’s CFO, said in an interview that the company’s ad business profited tremendously from an increase in traffic during the pandemic. The company’s technology for delivering relevant ads is attracting attention.

    Compared to Facebook, which understands product interest based on what its users socialize about and the sites they visit, Amazon’s real-time data is based on what people actually buy. This, in itself, is the best predictor of future product interest and is very attractive to advertisers. This is also a big reason for Amazon’s digital advertisement growth, which shows every sign of growing steadily in the coming years.


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    Reasons Why Amazon Ads Are Better Than Facebook Ads

    Products Offered by Amazon Ads
    Products Offered by Amazon Ads 

    By 2019, Facebook had emerged as one of the largest platforms for eCommerce marketing. As time went on, however, and the world of digital advertising advanced further, advertisers realised that Facebook’s audience-targeting metrics lacked focus as many of its users were exposed to advertisements completely irrelevant to their interests. Contrarily, visitors to Amazon had specific needs for which they were shopping.

    There are compelling reasons for advertisers to begin shifting focus from Facebook Ads to Amazon Ads.

    Ready to Buy Audience

    More than 50% of online shoppers begin their product search on Amazon. The likelihood of that search converting to an actual sale is far more possible than on sites like Facebook or Google. Placing advertisements on Amazon is doing more than building brand awareness. It is the strategic time when users are ready to make a purchase, greatly increasing the chance of a sale.

    Improvement in Organic Listings on Amazon

    Sales volume on Amazon plays a significant role in the organic listing of products. The better a product sells, the higher are its chances of a priority listing when a search is initiated for a relevant product. For eCommerce brands, this is essential as, over time, it can have a snowball effect on sales. Comparatively, Facebook advertisements do not deliver this kind of direct benefit or boost when the marketing campaign ends.

    Amazon Ads Enjoy a Higher Trust Factor

    The product reviews that customers leave on Amazon have proven to be extremely influential. Qualtrics data reveals that 93% of customers check for product reviews before making a purchase. Sponsored Product Ads on Amazon are also more popular as they list the product as part of a user’s search result complete with a star rating. Reviews on a Facebook eCommerce advertisement are a part of the ad copy, and consequently, enjoy a lesser trust factor than Amazon’s reviews, which are left by actual customers.

    More Advertisement Variety to Experiment

    A Sponsored Product Advertisement, while very attractive, is not the only option for an Amazon ad. Sponsored Brand Ads, previously known as Headline Ads, usually appear above or below the search results, which advertise the brand or its latest product offering. Clicking on these advertisements takes the user to a custom landing page, gaining greater exposure to the business and its products.

    Another unique option that Amazon Ads offers is Product Display Ads. These ads are usually displayed on the customer review page or as a ‘related product’ suggestion. These ads can generate a high revenue keeping the brand and company one step ahead of the competition. In comparison, Facebook ads are available in fewer formats and do not offer any other value-added services.

    Conclusion

    Amazon Ads offer various advertisement options that help eCommerce businesses and brands with many combinations for increasing sales. Even more importantly, these ads are dependent on keyword metrics rather than audience metrics. Hence, there is a greater possibility that the advertisement appears before relevant users, increasing the chances of an actual sale.

    In a world that is competitive and increasingly digitized, these shifts in the way products are now advertised can have a huge impact on revenues. Amazon seems to have got the combination right. Currently, Amazon Ads are offering a far greater value proposition to advertisers than Facebook.

    FAQs

    What are Amazon ads?

    Amazon ads are based on a pay-per-click model just like ads on Google. The sellers pay when a visitor clicks on the ad, irrespective of whether they make a purchase or not.

    How much does it cost to run ads on Amazon?

    Most of the sponsored products, sponsored brands, and sponsored display are pay-per-click ads. This gives you the flexibility to set your own budget regarding how much you want to pay for a click.

    Why are advertisers shifting focus from Facebook ads to Amazon ads?

    The following are some of the reasons why advertisers are shifting their focus from Facebook ads to Amazon ads:

    • Ready to Buy Audience
    • Improvement in Organic Listings on Amazon
    • Amazon Ads Enjoy a Higher Trust Factor
    • More Advertisement Variety to Experiment

    What are the types of Amazon ads?

    The following are the most popular types of Amazon ads:

    • Sponsored Product Advertisement
    • Sponsored Brand Ads
    • Product Display Ads
    • Audio Ads
    • Video Ads
    • Custom Advertising

    What is the worth of digital advertising spending worldwide?

    According to Statista, digital advertising spending worldwide was calculated to be worth USD 521.02 billion in 2021 and the number is expected to grow to USD 876 billion by 2026.

  • Top 12 B2B Ecommerce Startups in India

    Today, there are a large number of startups in the B2B E-commerce industry that provide businesses with goods and services from other businesses. There are more than 6.6K startups in this industry, which includes those companies as well which operate as e-distributors, marketplaces, and listing platforms.

    If you’re in the B2B industry, you must have heard the names of prominent investors such as 500 startups, Y Combinator, Sequoia Capital, Techstars, and Plat Tech Center. These are some of the most active investors in the B2B E-commerce industry with numerous investments.

    Speaking of the industry, we have presented you with the list of B2B E-commerce startups in India in this article. So, let’s get started with it!

    B2B E-commerce startups

    ‌‌Udaan
    Ninjacart
    OfBusiness
    Zetwerk
    ShopX
    Bizongo
    Infra.Market
    Industrybuying
    WayCool
    Jumbotail
    ShopKirana
    Eunimart

    ‌‌Udaan

    Founded 2016
    Founders Amod Malviya, Vaibhav Gupta and Sujeet Kumar
    Headquarters Bangalore, India
    Category Ecommerce
    Website udaan.com

    Udaan - Top B2B Ecommerce Startup in India
    Udaan – Top B2B Ecommerce Startup in India

    Udaan is a prominent Indian business-to-business E-commerce platform that started in the year 2016. The company operates in a wide range of categories such as electronics, home and kitchen, lifestyle, pharma, FMCG, staples, toys, fruits and vegetables, and general merchandise.

    ‌‌The headquarters of Udaan is established in Bengaluru, India. As per recent media reports, the company gained a valuation of $3.1 billion. This further includes the venture partners of GGV Capital, Moonstone Capital, DST Global, Altimeter Capital and Tencent, Octahedron Capital, and many more.

    Ninjacart

    Founded 2015
    Founders Ashutosh Vikram, KartheeSwaran KK, Sharath Loganathan, Sachin Jose, Thirukumaran Nagarajan, Vasudevan Chinnathambi
    Headquarters Bangalore, India
    Category Logistics, Supply Chain
    Website ninjacart.in

    Ninjacart - Top B2B Ecommerce Startup in India
    Ninjacart – Top B2B Ecommerce Startup in India

    Being revolutionary in freshly producing supply chains directly from the farmers to the businesses all across India, Ninjacart is built with advanced technology. The company is considered a pioneer in solving one of the major supply chain problems of the world through advanced technology. They guarantee the supply of products from farmers within 12 hours only.

    Moreover, Ninjacart is the first platform that worked for the benefit of farmers, consumers, and retailers altogether.

    Because of this innovative supply chain method, the farmers benefited from a 20% enhanced revenue stream, payment within 24 hours, and transparent weighing. While, the retailers enjoy competitive pricing, high-quality graded produce, and doorstep delivery.

    OfBusiness

    Founded 2015
    Founders Asish Mohapatra, Bhuvan Gupta, Ex Chandranshu Sinha, Nitin Jain, Ruchi Kalra, Srinath Ramakkrushnan, and Vasant Sridhar
    Headquarters Gurgaon, India
    Category Fintech, NBFC, Lending
    Website ofbusiness.com

    OfB Tech - Top B2B Ecommerce Startup in India
    OfB Tech – Top B2B Ecommerce Startup in India

    OFB Tech, commonly known as OfBusiness is driven by innovative technology that facilitates raw material procurement and credits it for SMEs with a key focus on infrastructure and manufacturing sectors.

    This affects the purchasing behavior of SMEs and brings out better products at better pricing, within better timelines to customers along with comprehensive support both offline and online.

    The key materials that OfBusiness provides are chemicals, metals, Agri commodities, polymers, petrochemicals, and building materials.

    ‌‌Additionally, OFB Tech provides SMEs access to services like purchasing raw materials, cash flow-based financing, using the NBFC’s Oxyzo Financial Services, etc.

    Zetwerk

    Founded 2018
    Founders Vishal Chaudhary, Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma
    Headquarters Bengaluru, India
    Category Industrial Machinery Manufacturing
    Website zetwerk.com

    Zetwerk - Top B2B Ecommerce Startup in India
    Zetwerk – Top B2B Ecommerce Startup in India

    Being an Indian business-to-business marketplace, Zetwerk is built for manufacturing items. The company sells goods such as parts of a crane, chassis of various machines, doors, and ladders. It mainly operates to serve those businesses of casting, fabrication, forging, and machining.

    Recently, the company has closed a significant amount of funding rounds based on its operations across the nation and benefiting local businesses to find customers all across the world. In recent reports, $210 million was raised by Zetwerk in its Series F financing round led by Greenoaks Capital in December 2021.

    ShopX

    Founded 2015
    Founders Amit Sharma, Apoorva Jois
    Headquarters Bengaluru, India
    Category Ecommerce
    Website shopx.in

    ShopX - Top B2B Ecommerce Startup in India
    Founders of ShopX – Top B2B Ecommerce Startup in India

    ShopX is counted among the fastest-growing B2B e-commerce platforms and was founded in 2015 by Apoorva Jois and Amit Sharma. The company is pretty famous among retailers as it provides tons of benefits to them. It was developed in a way to ease the use of technology for organizing commerce and make it accessible and preferable for the needy one.

    ShopX has brought social and economic impact on the economy of India and highly values long-term sustainability in this sector.

    ‌‌With its proprietary technology, the company has transformed retailers by creating a technology-enabled platform that contains all the services required by retailers in engaging more customers. Through ShopX, retailers get access to the latest products and various services.


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    Bizongo

    Founded 2015
    Founders Aniket Deb, Sachin Agrawal, and Ankit Tomar
    Headquarters Mumbai, India
    Category Supply Chain Management
    Website bizongo.com

    Bizongo - Top B2B Ecommerce Startup in India
    Bizongo – Top B2B Ecommerce Startup in India

    Bizongo was founded in 2013 by three IIT graduates, Ankit Tomar, Aniket Deb, and Sachin Agrawal, as a digital marketplace for all those holistic B2B packaging solutions. The company transforms the shattered, unorganized B2B segment with the unique concept of customized goods.

    Today, Bizongo provides packaging, apparel, textiles, and various other contract manufacturing products to the network of more than 1500 curated manufacturers.

    In addition to this, the company offers supply chain automation, digital vendor management, and supply chain financing to enterprise customers through its proprietary digital platforms of Partner Hub, Procure live, and Artwork flow.


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    Infra.Market

    Founded 2016
    Founders Aaditya Sharada, Souvik Sengupta
    Headquarters Maharashtra, India
    Category Wholesale building materials
    Website infra.market.com

    Infra.Market - Top B2B Ecommerce Startup in India
    Infra.Market – Top B2B Ecommerce Startup in India

    Being a unicorn, Infra.Market is a construction-based solution that creates the largest multi-product building materials brand across India. Through the usage of advanced technology and scaling innovation, Infra.Market has been transforming the whole ecosystem. They produce a wide range of lifestyle and building material products for interior spaces.

    The company was started in the year 2016 and within a few years, it emerged as one of the fastest-growing B2B e-commerce platforms in India. And as a tech-first company, Infra.Market shines in both B2B as well as B2C sectors by fulfilling a great range of requirements.

    The market size of business-to-business (B2B) e-commerce in India in 2021, with forecasts from 2022 until 2025 in Billion US Dollars
    The market size of business-to-business (B2B) e-commerce in India in 2021, with forecasts from 2022 until 2025 in Billion US Dollars

    Industrybuying

    Founded 2013
    Founders Rahul and Swati Gupta
    Headquarters New Delhi India
    Category Logistics
    Website industrybuying.com

    Industrybuying - Top B2B Ecommerce Startups in India
    Industrybuying – Top B2B Ecommerce Startups in India

    Another widely preferred B2B e-commerce platform is Industrybuying which is an online marketplace built mainly for industrial supplies. Through this platform, users can easily browse several product categories and search using titles and brands.

    As per the reports of 2015, Industrybuying hosted over 500 brands, 1000 suppliers, and around 1.5 lakh products online. Plus, the company has a great omnichannel presence that includes both online e-commerce and offline corporate customers.

    WayCool

    Founded 2015
    Founders Karthik Jayaraman, Sanjay Dasari
    Headquarters Chennai, India
    Category Agritech
    Website waycool.in

    WayCool - Top B2B Ecommerce Startups in India
    WayCool – Top B2B Ecommerce Startups in India

    Being one of the fastest-growing Agri-Tech companies, WayCool has majorly impacted the food economy of India. It was founded in July 2015 to develop the largest food supply chain and distribution services across the world. And as per statistics, WayCool is known to impact around 500,000 farmers’ lives.

    Currently, the company manages more than 900 tons of food items every day, coming from 1,00,000 clients and a farmer’s network of above 85000 across 50 Indian regions. Their services include food processing, sourcing, branding and marketing, farm inputs, and last-mile distribution.

    The company utilizes the approach of a tech-enabled supply chain, by merging physical as well as digital business models.

    Jumbotail

    Founded 2015
    Founders Ashish Jhina, Karthik Venkateswaran
    Headquarters Bangalore, India
    Category Ecommerce
    Website jumbotail.com

    Jumbotail - Top B2B Ecommerce Startups in India
    Jumbotail – Top B2B Ecommerce Startups in India

    By serving more than 50,000 Kirana stores, Jumbotail is a virtual B2B marketplace containing wholesale food and grocery. The company retransforms the value chain of food and grocery through the usage of data science, technology, and design. It connects thousands of grocery retailers (Kirana stores and supermarkets) with brands and staple producers.

    ‌‌They offer a wide range of high-quality staples, personal care, home care, and packaged food products from the leading staples producers and brands.

    ShopKirana

    Founded 2015
    Founders Sumit Ghorawat and Deepak Dhanotiya and serial entrepreneur Tanutejas Saraswat
    Headquarters Indore, India
    Category Supply Chain Management
    Website shopkirana.com

    ShopKirana Go-To-Market Channel For Goods And Services
    ShopKirana – Top B2B Ecommerce Startups in India

    ShopKirana is a B2B e-commerce platform that directly connects retailers to brands with the power of technology. It aims to empower retailers by offering advanced technology, scale advantage, and operational expertise.

    ShopKirana works with the idea of gathering millions of retailers and building the fastest and largest go-to-market channel for goods and services.


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    Eunimart

    Founded 2017
    Founders Archana Shah, Shayak Mazumder
    Headquarters Hyderabad, India
    Category Supply Chain Management
    Website eunimart.com

    Eunimart - Top B2B Ecommerce Startups in India
    Eunimart – Top B2B Ecommerce Startups in India

    Eunimart, the startup is famous for helping brands and manufacturers to sell their products through prominent e-commerce platforms such as Shopify, Amazon, and some local channels. Along with this, it helps in exploring the options of retail and B2B channels for sales to sellers.

    Eunimart creates an end-to-end ecosystem consisting of more than 30 shipping partners and fulfillment partners across the Middle East, South East Asia, and India.

    Additionally, the company offers a proper supply chain management system that includes warehouse management, global management, vendor management, and inventory management.

    ‌‌Apart from all this, what makes Eunimart unique is the insights they offer. This helps increase revenue for the brands triple than usual and reduces the cost by 35% using AI tools. It mainly helps by predicting sales and optimizing everything.

    Conclusion

    In conclusion, we can say that the B2B e-commerce industry is growing massively with the key interest of prominent investors. There are above 3.7K startups as per the reports of 2019 and the number is surely growing.

    With the large sum of funding, the industry is adopting new technologies and advancements to make it grow. In the upcoming years, we’ll see more growth and development in this sector.

    FAQs

    What are the 4 types of B2B?

    The four main types of B2B are manufacturers, resellers, service providers, and government.

    Which is the largest B2B company in India?

    IndiaMART is considered the largest B2B company in India.

    What are the top 10 B2B portals in India?

    India’s top 10 B2B portals are Udaan, Alibaba, IndiaMART, Tradeindia, Power2SME, ExportersIndia, Amazon Business, eWorldTrade, eIndiabusiness, and Global Trade Bazaar.

    Is Amazon a B2B or B2C?

    Amazon is a B2C platform. It is one of the largest B2C e-commerce platforms in the world.

  • Piramal Group Success Story | Journey to Become India’s Leading Global Conglomerate Company

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Piramal Enterprises.

    If you were to start a business, you would require considerable time and effort to maintain the legacy. For businesspeople to run a business is not an easy job. It needs dedication and strategic planning to be successfully managed.

    There are some entrepreneurs who like to take up challenges and diversify their businesses into multiple markets or industries. To put it simply, this type of business is called a conglomerate. As a matter of fact, India is home to many such conglomerates and over the past few years, it has witnessed some major developments with many growth-oriented policies.

    In this article, we are going to share some the story of the Piramal Group, which is India’s leading global business conglomerate company. Headquartered in Mumbai, Piramal Group was founded by Ajay Piramal in 1984 with varied expertise in sectors like Pharma, Financial Services, and Real Estate.

    Find out more about Piramal Group’s startup story, its key people, what are its marketing strategies, its revenue model, challenges faced, funding and investors, and many more in the article further.

    Piramal Enterprises – Company Highlights

    Headquarters Mumbai, India
    Sector Conglomerate
    Type Private
    Founder Ajay Piramal
    Key People Dr.Swati Piramal (Vice Chairperson)
    Founded 1984
    Revenue $1.8 billion (FY22)
    Total Funding Raised $737.1 million
    Website www.piramal.com

    Piramal Group – About and How does it work?
    Piramal Group – Founder and Team
    Piramal Group – Mission and Vision
    Piramal Group – Name, Tagline, and Logo
    Piramal Group – Business & Revenue Model
    Piramal Group – Revenue Growth
    Piramal Group – Funding and Investors
    Piramal Group – Mergers and Acquisitions
    Piramal Group – Investments
    Piramal Group – Advertisements and Social Media Campaigns
    Piramal Group – Awards and Achievements
    Piramal Group – Competitors
    Piramal Group – Future Plans

    Piramal Group – About and How does it work?

    Piramal Group is a multinational company with holdings in pharmaceuticals, healthcare information management, life sciences, financial services, and real estate. Started by Ajay Piramal in 1984, Piramal Group now has offices in almost 30 countries and a team of over 10,000 people working from various cultures and regions.

    The Piramal Group works by offering diversified commercial services under different categories such as Piramal Enterprises Ltd. (PEL), Piramal Pharma Ltd., Piramal Realty, and Piramal Foundation.

    Pfizer’s UK manufacturing site in Morpeth was purchased by the company in 2006. Piramal Group signed an agreement with Merck Pharmaceuticals in 2007 to collaborate on medication research and discovery. It secured a second medication research agreement with Eli Lilly and Company in 2008.

    Piramal Group – Founder and Team

    Piramal Group was founded by Ajay Piramal in 1984.

    Ajay Piramal

    Ajay Piramal is the Chairman of the Piramal Group. He was born on August 3, 1955, in Rajasthan, India to Gopikisan Piramal and Lalita Piramal. Ajay Piramal earned a bachelor’s degree in science from Jai Hind College and the Basantsingh Institute of Science at the University of Mumbai, and a master’s degree in management studies from the Jamnalal Bajaj Institute of Management Studies at the University of Mumbai. He also did a six-week Advanced Management Programme at Harvard Business School in 1992. He has been awarded an honorary doctorate by Amity University in India, as well as an honorary doctor of science by IIT Indore.

    Ajay Piramal has received many awards and honors. To name a few, he received the Honorary Commander of the Order of the British Empire (CBE) in 2022 for services to the UK-India trade relationship, Business Leader of the Year Award 2018, CNBC Asia’s India Business Leader of the Year Award 2018, Outstanding Philanthropist 2013 and 2014, Forbes Philanthropy Awards, Special Achievement Award, Asia Pacific Entrepreneurship Awards (APEA) 2018 and many more.

    Ajay Piramal plays many roles. He is the Non-Executive Director of Tata Sons Ltd. In addition, he is on the Board of Advisors at India’s International Movement to Unite Nations. He has remained an invitee to the World Economic Forum for the last 20 years.

    Ajay Piramal’s wife is Dr. Swati Shah Piramal, who is the Vice Chairperson of Piramal Group. They have two children. Nandini Piramal D’Young, their daughter is married to US citizen Peter D’Young. Anand Piramal, their son, is married to Isha Ambani Piramal, daughter of Mukesh Dhirubhai Ambani, and his wife Nita Dalal Ambani.
    Ajay Piramal’s net worth was projected to be $3.7 billion as of June 2022.

    Dr. Swati Shah Piramal

    Born on 28th March 1956, Swati Shah Piramal is an Indian Scientist and Industrialist, and the Vice Chairperson of the Piramal Group. In 2012, the President of India awarded her the Padma Shri, one of India’s highest civilian accolades, for her contributions to the scientific and technology industries.

    Dr. Swati Piramal was the first woman to serve as President of India’s Apex Chamber of Commerce. Along with this, she is also a member of the Harvard Board of Overseers and the Dean’s Advisor to Harvard Business School and the Harvard School of Public Health.

    She has founded Mumbai’s Gopikrishna Piramal Hospital and has led public health initiatives against chronic diseases such as osteoporosis, malaria, tuberculosis, epilepsy, and polio.

    Dr. Swati Piramal has a medical degree from Mumbai University. She holds her master’s degree from the Harvard School of Public Health. For her various outstanding contributions to healthcare and philanthropic movements, Dr. Swati has been the recipient of many accolades. BMA Management Woman Achiever of the Year Award (2005), Nominated for the Forbes Philanthropy Awards 2013 in the Outstanding Philanthropist category, Listed in the 25 Most Powerful Women, and is now a part of the Hall of Fame of Most Powerful Women among many others.

    Piramal Group – Mission and Vision

    The mission statement of Piramal Group is, “We aim to serve our customers, community, employees, partners, and all other stakeholders by putting their needs and well-being first”

    Piramal Group stays true to its following core values:

    • Knowledge
    • Action
    • Care
    • Impact

    Piramal Group is named after the surname of the Piramal family.

    The logo of Piramal Group was designed by taking inspiration from ancient times, which is the universal symbol of the Gyan Mudra. The symbol Gyan Mudra is often practiced in yoga, dance, and meditation. As seen, it displays a hand doing the mudra with each finger symbolizing one of the five elements – Air, Water, Earth, Fire, and Sky.

    The tagline of Piramal Group is, “Doing Well and Doing Good”

    Piramal Group – Business & Revenue Model

    Piramal Group is a conglomerate industry whose business is divided into three major segments – Real Estate, Pharma, and Financial Services. It provides diversified commercial services. The firm operates its business in 30 nations, as well as has a worldwide brand presence in over 100 markets.

    Piramal Group’s biggest business is its Piramal Enterprises Ltd. (PEL). PEL recognized an opportunity to develop its pharma business and invested in the local formulation sector while the Indian pharmaceutical industry was focused on overseas generics.

    Piramal Enterprises Ltd, Piramal Realty, and Piramal Foundation are the three main components or part of the Piramal Group business.

    Here’s taking a brief look into the business segments of Piramal Group:

    Piramal Enterprises Limited –

    Previously known as Piramal Healthcare Ltd., Piramal Enterprises Ltd. accounts for the largest company of the Piramal Group.

    It is further divided into two categories –

    Piramal Financial Services

    It is active in business verticals by offering financial services such as

    • Piramal Capital & Housing Finance Limited (PCHFL) – It is a home financing corporation registered with the National Housing Bank (NHB) and involved in a variety of financial services companies. It offers wholesale and retail finance alternatives across industries. It also has customized financing solutions for the hospitality sector.
    • Piramal Alternatives  (PA) –It offers customized finance options for high-quality corporations seeking to enhance their growth.
    • Piramal Credit Fund (PCF) – PCF is a sector-agnostic fund that has received a significant capital commitment from CDPQ (Caisse de dépôt et placement du Québec) to invest in mid to large-sized corporations across industries.
    • India Resurgence Fund (IndiaRF) –By taking a flexible strategy approach, IndiaRF is an equal joint venture between Piramal Enterprises Limited and Bain Capital Credit. It invests capital in the form of both loans and equity, in distressed to control circumstances in the Indian market. It has a dedicated website for IndiaRF – www.indiarf.com

    Piramal Pharma Ltd. (PPL)

    The Piramal Group’s Piramal Pharma provides a range of specific goods and services with the latest technological advanced manufacturing capabilities that are spread over 15 locations and a global distribution network in over 100 countries. It has services such as Pharma Solutions (the manufacturing unit), Critical Care (Complex Hospital Generics business), and Consumer Products Division (CPD) which sells over-the-counter medications. The company is also engaged in the ophthalmic category by teaming up with Allergan India. It is one of the leading specialty pharmaceutical companies in the ophthalmic category that offers high-quality medication and devices to treat diseases such as glaucoma, eye infections, and inflammations.

    Piramal Realty

    The Piramal Group ventured into the business of Real Estate in 2012 under the brand name Piramal Realty. It has architectural innovators KPF, HOK, Callison, Fosters, and Make among their collaborators, as well as worldwide structural consultants like BuroHappold, security and transportation specialists Max Security, and vertical transportation experts Lerch Bates.

    Piramal Realty’s mission reads, “To build India’s most admired real estate company, admired not just for its scale & profitability, but also for its impact on the lives of its customers & the progress of our country.”

    Piramal Realty’s top projects are – Piramal Mahalaxmi, Piramal Aranya, Piramal Agastya, Piramal Vaikunth, and Piramal Revanta.

    Piramal Foundation

    The company is vested in many philanthropic activities for which it established the Piramal Foundation in 2006. The foundation is actively engaged in the following projects:

    • Piramal Swasthya is a Karnataka-based health information helpline service named Arogya Vani.
    • Piramal Sarvajal, solar-powered water ATMs supply clean water in India.
    • Piramal School of Leadership provides education and women empowerment through the program – Piramal Fellowship and Principal Leadership Development Program (PLDP), Pratham delivers education to underprivileged children
    • Piramal Prize to recognize emerging organizations

    Piramal Group – Revenue Growth

    As of 2022, Piramal Group reported revenue of $1.8 billion (Rs 14,710 crores). The net income of the company stood at around $240 million (Rs 1,923.11 crores). The company generates about 40% of its revenue from outside the country.

    Piramal Group – Funding and Investors

    Piramal Enterprises has raised $737.1 million in three rounds of investment. Their most recent funding came from a Post-IPO Equity round on June 27, 2020. Their funding is supported by three investors. The most recent investors include The Carlyle Group and Standard Chartered Bank.

    On December 18, 2019, Piramal Group raised $225 million in a single venture vehicle called India Resurgence Fund. The details are:

    Date Funding Round Fund Amount Investors
    June 27, 2020 Post-IPO Equity $490 million The Carlyle Group
    July 21, 2019 Post-IPO Debt ₹15 billion Standard Chartered Bank
    July 15, 2019 Post-IPO Debt ₹2 billion Sachin Bansal
    December 18, 2019 $225 million Single Venture fund

    Piramal Group – Mergers and Acquisitions

    Piramal Enterprises has bought 5 businesses. On September 29, 2021, they acquired Dewan Housing Finance. They paid 3.8T for Dewan Housing Finance. Piramal acquired 11% of Vodafone Essar in 2011-12. The company sold its 11% stake in Vodafone India to Prime Metals, an indirect subsidiary of Vodafone Group, in 2014. The acquisition details are:

    Date of Acquisition Acquiree name Amount
    September 29, 2021 Dewan Housing Finance ₹3.8T
    March 31, 2021 Hemmo Pharmaceuticals ₹7.8B
    May 12, 2017 Walnut Medical Undisclosed
    January 31, 2017 Mallinckrodt – Specialty Products $170 million
    August 16, 2016 Ash Stevens $53 million
    1999 Ceylon Company Limited
    1984 Gujarat Glass Limited Undisclosed

    Piramal Group – Investments

    On August 11, 2014, Piramal Enterprises invested in VGN Property Developers. This investment, Venture Round – VGN Property Developers, was worth $3 billion.

    VGN Property Developers is a multibillion-dollar real estate firm based in Chennai.

    Piramal Group – Advertisements and Social Media Campaigns

    Piramal Capital and Housing Finance Ltd. (PCHF) launched a campaign in 2019 about their service called Bridge Loans. It is an ingenious tool that aids in the transition from selling an old house to purchasing a new one. Point of View Brandcom India is behind the concept of the advertisement. The ad shows how a person finds an apartment for his family but keeps the owner of the apartment waiting until he sells his old apartment.

    Here’s what Mayank Jain, Head of Sales & Marketing at Piramal Capital & Housing Finance said about the campaign, “We at PCHF are focused on introducing products that seek to simplify the lives of our customers. A common problem that we encounter regularly is the wait to sell your old apartment to buy a new one. Our newly launched product – Bridge Loans is the answer to this problem. Through the film, we aimed to highlight this challenge and bring focus to our innovative product, specially designed to support our customers’ needs. We are pleased that Point of View Brandcom India has converted our brief into an effective product film by using humor to communicate our product offerings.”

    Piramal Group – Awards and Achievements

    Below is the list of the latest awards and achievements won by the Piramal Group:

    • Piramal Pharma recognized with the “2019 Global Customer Service Leadership Award” by Frost & Sullivan
    • Piramal Foundation recognized as ‘Socially Aware Corporate of the Year by Business Standard CSR Awards 2019
    • Piramal Capital & Housing Finance recognized as ‘Outstanding Company in Infra Finance’ at the 8th EPC World Awards
    • Piramal Realty was awarded the prestigious ‘Intelligent Enterprise Award 2018’ by Technology Senate in Pune on June 7, 2018
    • Piramal Housing Finance was recognized as the ‘Emerging Home Loans Provider of the Year at the MCHI CREDAI Golden Pillar Awards 2018 in Mumbai on May 5, 2018
    • Piramal Realty was conferred with the prestigious Mercer NDTV Employer Excellence Awards for ‘Excellence in Work-Life Balance’, in New Delhi on May 2, 2018
    • Piramal Glass USA was recognized as the ‘Suppliers of the Year 2018’ at TricorBraun’s 2019 Annual Sales Meeting & Supplier Showcase in St. Louis on January 23, 2019
    • Piramal Housing Finance was recognized as the ‘Emerging Home Loans Provider of the Year at the MCHI CREDAI Golden Pillar Awards 2018 in Mumbai on May 5, 2018
    • Piramal Pharma Solutions was recognized in all six categories including Capabilities, Compatibility, Expertise, Quality, Reliability, and Service at the recent CMO Leadership Awards, New York on March 21, 2018

    Piramal Group – Competitors

    The top competitors of Piramal Group are:

    1. Sun Pharmaceutical Industries Ltd
    2. Dr. Reddy’s Laboratories
    3. Cipla Limited
    4. Aditya Birla Sun Life Insurance Company Limited
    5. Apollo hospitals
    6. Torrent Pharma
    7. Abbott India
    8. Max Healthcare
    9. Divi’s Laboratories
    10. Glenmark Pharma Limited
    11. Aurobindo Pharma Limited

    Piramal Group – Future Plans

    The Piramal Group is targeting to expand its financial services by adding 100 branches in FY23. The firm is all set to launch different and high-yielding products and aims to strengthen its partnerships with fintech and consumer tech firms. With their recent acquisition of debt-ridden DHFL, the company is planning to go for low-cost acquisitions.

    FAQs

    Who is the CEO of Piramal Group?

    Peter De Young is the CEO of Piramal Group.

    How much is Ajay Piramal worth?

    The net worth of Ajay Piramal is 940 Crores.

    Where is the head office of Piramal Group?

    The head office of Piramal Group is in Mumbai.

    How many companies are there under the Piramal Group?

    There are 3 companies under Piramal Group.

  • Petpooja: Success Story of India’s No.1 Restaurant Management Software

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Petpooja.

    The relationship of Indians with their food is intimate. The food here in India is an emotion that also reflects the country’s culture and its personality. One can be amazed by the vast variety of food items India has to offer as each State has its version of edible items.

    Indian culture beholds the extensive and rich food culture as well. Due to the infusion of a wide list of delicacies, the concept of the restaurant business has also taken over all of India. Today, we have thousands of food chains, hotels, and restaurants offering numerous different dishes based on a variety of cuisines.

    While food is not only limited to India but is an important aspect in most countries. The food business has widely become popular in almost all parts of the country. To help with this restaurant business some companies manage and help organize unorganized food and beverage sectors.

    Petpooja is one such company that offers restaurant management software for the F&B retail market. The company was founded in 2011 and is headquartered in Ahmedabad, Gujarat.

    Discover more about Petpooja’s startup story, how it works, industry details, founder, competitors, challenges faced, and future plans.

    Petpooja – Company Highlights

    Headquarters Ahmedabad, Gujarat
    Sector IT services
    Founder Parthiv Patel and Apurv Patel
    Founded 2011
    Legal Name Prayosha Food Services Pvt. Ltd.
    Valuation $35.8 million (2021)
    Revenue $126 million
    Total Funding Raised $8.9 million
    Website www.petpooja.com

    Petpooja – About and How it works?
    Petpooja – Industry details
    Petpooja – Founders
    Petpooja – Startup Story
    Petpooja – Mission and Vision
    Petpooja – Name, Tagline, and Logo
    Petpooja – Business Model
    Petpooja – Revenue Model
    Petpooja – Funding, and Investors
    Petpooja – Growth
    Petpooja – Advertisements and Social Media Campaigns
    Petpooja – Competitors
    Petpooja – Future Plans
    FAQs

    Petpooja – About and How it works?

    The lack of appropriate technology in the F&B sector is what motivated the founders of Petpooja to come up with one of the top restaurant management software to help give them a smooth experience management experience.

    Petpooja is the leading next-generation PoS platform for the F&B industry. The company’s legal name is Prayosha Food Services Pvt. Ltd.

    Its PoS system runs all of its client’s operations smoothly, allowing its customers to focus on other functions to further expand its restaurant business. The company has over 35,000 clients across India, the UAE, and South Africa.

    The PoS system of Petpooja involves a billing system, inventory management system, reporting, customizable menus, CRM, and online ordering.

    Petpooja flatters itself to be present in more than 140 cities not only in India but also in UAE. It has employed more than 750 people across the globe.

    The Petpooja platform processes over 200,000 invoices each day and receives over 50,00,000 API requests every day. The platform is independent of the operating system (Windows, Mac, or Linux) and the browser. Node.JS, Python, PHP, Adobe, MySql, MongoDB, SqlLight, and ReactJS are among the technologies used on the platform.

    Petpooja works with companies and organizations like Dunzo, IIFL,  Bank, PayTM, HDFC NPCI, Zomato, and Swiggy, and by partnering with around 300+ restaurants.

    Petpooja – Industry details

    The worldwide food and beverage industry is predicted to rise at a compound annual growth rate (CAGR) of 9.7% from $5,817.4 billion in 2021 to $6,383.49 billion in 2022. The food and beverage industry is predicted to increase at an 8.7% CAGR to $8,905.5 billion in 2026.

    With this increased rate there could be exponential growth for cloud-based restaurant management platforms like Petpooja, which provide operational needs to any kind of F&B outlet.

    Petpooja – Founders

    Petpooja is founded by Parthiv Patel and Apurv Patel.

    Apurv Patel (left) & Parthiv Patel (right)

    Apurv Patel

    Apurv Patel is the Co-founder and CSO of Petpooja. He has a degree in B.E degree in Electronics & Communication from Sardar Patel University. Before founding Petpooja, Apurv worked in many organizations by engaging himself in different roles. He started out working as an Executive Assistant at Claris Lifescience, then working as a Business Analyst at Elitecore Technologies, etc. Apurv Patel is a people person and always advises to remain ethical and transparent while doing business.

    Parthiv Patel

    Parthiv Patel laid the foundation stone of Petpooja along with his friend Apurv Patel. Prior to beginning the journey of Petpooja, Parthiv has been associated with many companies. To be precise, he began his career as a Senior Project Engineer at Wipro Technologies to then worked as an Associate Vice President at GVFL.

    PetPooja – Startup Story

    The founders of Petpooja – Apurv Patel and Parthiv Patel started Petpooja with the mindset of making the unorganized sector of the F&B industry into a more systematic and methodical sector. The due were school friends, who reunited one single day to end up discussing their love for food in Ahmedabad city. This is one of the biggest reasons before starting Petpooja.

    In the initial days of Petpooja in 2011, it started as a delivery service for corporations and multinational corporations. They served as a go-between for its partner restaurants to deliver huge bulk orders of corporate meals. Within two years, Petpooja made considerable progress by servicing over 200 corporate clients in Ahmedabad and partnering with 300+ eateries.

    During the delivery process, the duo realized that they had to put a lot of effort to carry out the process, which involved orders, constant follow-ups, inventory and orders and bills, and a lot more other things. Keeping up with the pace of manually taking orders is what pushed the founders to take appropriate technological help. They sought to automate the monotonous and repetitive processes, giving the restaurant owner more time to focus on customer care and business success.

    After pitching the idea of embracing Petpooja Point-of-Sale (PoS) software, the company raised its funds and achieved a positive outcome. It grew from a two-member team to over 200 employees in 2019. Gradually, the company upgraded its software by adding features like Kiosk, AI-enabled software, and FoodBot, which is a Robot that does the serving chores of a waiter in a restaurant.

    PetPooja – Mission and Vision

    The mission of Petpooja says, “Our mission is to be the go-to Operating System for all F&B retail across the world”

    The company relies on four philosophical visions:

    • Pricing
    • Simplicity
    • Innovation
    • Support

    Petpooja’s logo is the company’s name itself.

    PetPooja – Business Model

    The business model of Petpooja can be said to have a B2B2C model. Since Petpooja provides restaurant management software solutions to a majority of restaurant business owners, it offers a complete product or service transaction process. The business model of the company allows mutually beneficial service or product delivery channels through its PoS system.

    Petpooja operates its business by offering PoS systems that have a complete system for an online operation that eases the operations of many restaurant owners. The services include –

    • Billing system – Deskstop billing software allows the customers to manage high-order bills in a smooth manner. The software is operational on any device, be it a laptop, desktop, tabs, or any touchscreen electronic device.
    • Inventory Management Software – This software by Petpooja allows customers to manage their entire restaurant stock such as raw materials to even monitor semi-prepared items on the kitchen module system. Petpooja inventory app gives its clients the liberty to keep their stock list updated in a matter of minutes and automatically sync all the data to Petpooja’s cloud.
    • Reporting – Whether it is tax, an email report, a cancellation report, or other bill reports are all stored under the simplified reporting dashboard to give its customers a glance at important reports in one place.
    • Menu Card Dashboard – Petpooja also gives the liberty to its clients to add their restaurant menus. The feature also allows them to customize as per their food items’ availability. In addition to this, it also has special notes for the restaurant owner’s customers to allow them to give special instructions.
    • CRM – This service by Petpooja allows its clients to engage and track their loyal customers to help build healthy relationships. Petpooja’s Feedback Management System lets its clients collect feedback and other suggestions from their customers either through SMS links, QR codes, or using tablets or mobile phones.
    • Online order integration – The PoS of Petpooja offers seamless online order management. Companies like Zomato, Swiggy, and Amazon use Petpooja’s online order management system.

    Apart from offering this above-mentioned software, Petpooja also gives the option to add features to its client’s existing PoS system. The Petpooja App marketplace further optimizes its clients’ PoS system with special apps and other services.

    Besides, Petpooja has other tech products like Waiter Calling Device, Captain App, and Tvito: the marketing app.

    Petpooja PoS system is widely being used by F&B outlets like Fine Dine, Cloud Kitchens, Bakery, Bar, Canteens, Food courts, Pizza shops, Cafes, and other large chains.

    PetPooja – Revenue Model

    After relaunching with the PoS system, Petpooja gained a good amount of revenue. With a new approach to the business model, Petpooja slowly picked up the race and built its business into a more scalable one. The initial years for Petpooja were tough but now the company has made a total revenue of $126 million.

    The two streams from which Petpooja generates its income are:

    • Petpooja App Marketplace by offering add-on features and other integrations.
    • Through online and credit card transactions.

    PetPooja – Funding, and Investors

    Petpooja has received $8.9 million in investment over three rounds. Their most recent funding came from a Series B round on November 15, 2021. The company is supported by five investors. The most recent investors are GVFL and Mayur Desai.

    Date Funding round Lead Investors Funds raised
    November 15, 2021 SERIES B Aroa Ventures $4.5 million
    February 10, 2020 SERIES A Udaan $140 million
    November 16, 2019 SEED Round Trustroots $2.4 million

    PetPooja – Growth

    The growth of Petpooja can be said to be commendable as the company today works closely with big companies like Havmor, Jumboking, Apsara, TGIF, The Beer Cafe, Thalappakatti, and many more. From starting as a delivery service to now climbing to offering innovative software services to various businesses, Petpooja has come a long way.

    Presently, the company has a strong and expanding family of more than 800 people, and it has begun scaling its operations overseas as well. The $4.5 million Series-B fundraising recently will help the company to pursue its ambition to disrupt the restaurant-tech enterprise and enhance the efficiency of all eateries and F&B models.

    During the pandemic, Petpooja came up with unique features to help many businesses, which were shut down due to lockdown in 2020. The company came up with ideas to help businesses recover from the pandemic and cope with losses in a more useful way. It launched robust features such as Scan-Order-Pay, Voice-ordering Kiosk, Petpooja Restaurant Analytics Insights, SMS service, Online Order Reconciliation, Suppliers Hub, etc.

    PetPooja – Advertisements and Social Media Campaigns

    Petpooja has its own App called Tvito, which is a marketing app designed for restaurant owners to help them create social-media-worthy pictures. The mobile app – Tvito offers 50,000+ designs, 20+ cuisines, and vast options for content creation to promote any restaurant business.

    To promote the launch of Tvito, Petpooja posted a video showcasing the various features of Tvito on its YouTube Channel.

    PetPooja – Competitors

    Some of the competitors of Petpooja are:

    • Repeat App
    • myHQ
    • FoodDocs
    • POSist
    • SlickPOS
    • Toast
    • Urban Piper
    • Vend POS
    • LimeTray Restuarant POS
    • GloriaFood

    PetPooja – Future Plans

    Petpooja’s main aim is to become the country’s one-stop solution for an operating system for all F&B outlets across the world. The company’s innovative and smart products and services have made them one of the leading PoS software companies in the country today.

    FAQs

    When was Petpooja founded?

    PetPooja was founded in 2011.

    Who is the founder of Petpooja?

    The founder of PetPooja is Parthiv Patel.

    Where is the headquarters of Petpooja?

    PetPooja is headquartered in Ahmedabad, Gujrat.

    Does Petpooja serve only in India?

    No, the services of PetPooja are available in UAE & South Africa as well.

  • Smart retirement planning- How much do you actually need?

    Are you looking at creating a retirement plan for a secure and comfortable future? If yes, you should definitely figure out the amount you need to accumulate. People often make the mistake of underestimating the future corpus they have to build to comfortably live out their post-retirement years while accounting for inflation and other increasing expenditures simultaneously. Retirement planning should ideally be done in the early stages of life rather than when you are closer to retirement.

    To this end, you should first use a retirement planning calculator to estimate your future needs. Irrespective of your current life stage, you should not neglect retirement planning and should systematically save up for the same in a disciplined manner.

    How much do you require for a comfortable future?

    As mentioned, you can use a retirement planning calculator to determine the total amount you require after retirement. You should begin with calculating the basic cost of achieving diverse life goals and the projected expenditure on living costs when you stop earning monthly income. Prioritize essential expenses over non-essentials. Many calculators can help you find the accurate figure in this regard.

    For example, let’s assume that you are a 25-year-old professional with a monthly expenditure of ₹30,000. You are looking to create a retirement plan so that you can retire a bit early, let’s say at the age of 50. Furthermore, you want to have a corpus that can support you for at least 25 years after you retire. So, taking a 6% inflation rate along with an 8% rate of returns on your investments, you will need to at least accumulate around ₹1,72,00,00. This is a sizeable amount that will require a solid portfolio of diverse investments to achieve.

    While planning this amount, make sure that you are adjusting your figures for future inflation. In addition, you should consider future living costs by doing your own calculations. Otherwise, you run the risk of falling short of what you require to lead a comfortable lifestyle after retiring from work. Finally, it is essential that you reassess your requirements periodically, as your monthly expenses will not always be the same, and varied financial responsibilities, may arise suddenly.

    Should you choose pension plans?

    Pension plans are often considered an effective retirement planning tool for the future. It is an investment strategy provided by life insurance providers to aid you in saving for retirement. The plan offers a predetermined and recurring pension, avoiding financial shortages in your retirement years. Moreover, they make a strong case for their inclusion in your portfolio due to the following reasons:

    • Building savings for the long term – You may purchase pension plans well in advance, and you can invest your money to help it accumulate into a sizable kitty over the years. You can use this amount to earn regular monthly income to meet your expenses easily.
    • Coverage for beneficiaries – Pension plans also protect your nominees and beneficiaries in case of any financial distress. Many such plans come with accompanying life insurance coverage where the sum assured/death benefit is paid out to the beneficiaries/nominees in the event of the policyholder’s untimely death. This amount may also be payable in installments to the nominees at times.
    • Helps in tackling inflation- Usually, your accumulated money’s value will come down yearly. Inflation leads to a drop in monetary values, i.e., your costs will increase, and your purchasing power will also decrease accordingly for similar amounts. Suppose inflation continues unabated for two or three decades. What is going to happen then? A pension plan will help you invest in a disciplined manner where you can outstrip inflation accordingly.
    • Tax Deductions- Pension plans come with accompanying tax benefits for policyholders. You can get tax benefits up to Rs. 1,50,000 under Section 80CCC of the 1961 Income Tax Act on the premiums you pay for these plans. After retirement, you can take up to 1/3rd of the accumulated corpus without paying any tax on it, as per Section 10 (10A). Before investing your money, you should always consult a financial advisor regarding tax benefits.
    • Compounding benefits- Compounding naturally takes place when investments start earning income/returns, and these are further invested to earn more returns as well. If you stay invested for 10, 20, or even 30 years, then you will benefit significantly from the power of compounding. This will help you amass a sizable corpus that will keep you comfortable throughout your retirement.

    These are some of the pertinent factors that make pension plans value-additions to your portfolio, no matter your age and current life scenario.

    What is the type of payout option that you should consider?

    Pension plans usually have two payout options. Once you invest over a long period and accumulate your retirement kitty, you can either choose to withdraw the entire amount as a lump sum amount. You can then invest this amount to get a monthly income. At the same time, many people choose to get a part of the corpus as a lump sum payment while allocating the same to get monthly income from the same. Some choose to distribute the entire amount as a monthly payout or income source throughout their lifetime.

    Do your homework before choosing any pension plan and compare options across multiple insurers to make the best possible choice.

  • Here’s why Locksmithing is still a great career choice

    The profession of locksmithing is a good choice for anyone looking for a high-paying trade with reliable employment prospects. Locksmiths will be in steady demand through economic slowdowns and technological shifts that could put people in other industries out of work.

    Although becoming a locksmith requires years of training and apprenticeship, it takes less time than many white-collar professions with smaller salaries. Some states require locksmiths to be licensed, bonded and insured although many employers will cover the costs of these requirements for their employees.

    Locksmith Training

    Many trade schools and community colleges offer locksmith training programs that meet the educational requirements for locksmiths in their states. Locksmith training can take one to two years of study and involves a thorough education in lock picking, safe cracking, key making and other locksmithing duties.

    Training courses will include sections based on locksmith theory, practice and safety, and at the end of each course there will be a written assessment. In states that require licensure, these programs will typically end with a licensing exam. Many schools will help students find internships and apprenticeships to gain work experience.

    Professional Apprenticeship

    Working as an apprentice for one to two years is an optional career path in some markets and niches. Commercial locksmithing is often more complex and challenging than auto or residential locksmithing, so these professionals usually need more experience before they can work without supervision. With such a wide range of skills to master, commercial locksmith apprentices must wait around two years before they’re ready to accept contracts.

    An apprenticeship is simply an on-the-job training program for entry-level locksmiths, and not every employee will start out as an apprentice. Although apprentices earn smaller salaries than full-fledged locksmiths, the experience provides a smooth introduction while mitigating errors that could raise insurance and bonding costs.

    State Licensing

    The states that require locksmith licensing are:

    • Alabama
    • California
    • Connecticut
    • Illinois
    • Louisiana
    • Maryland
    • Nevada
    • New Jersey
    • North Carolina
    • Oklahoma
    • Oregon
    • Texas
    • Virginia

    However, locksmithing laws are constantly changing, and additional states could require licensing in the near future. Licensing is a way of standardizing locksmithing practices to ensure that customers receive a minimum standard of quality. States require licensing to weed out untrained and unprofessional locksmiths who might offer cheap service with a high risk of failure.

    You’ll need a license before you can become an apprentice, and licensing requirements vary from state to state. By the time you complete your trade school program, you should have the knowledge needed to pass a licensing exam. Otherwise, you may choose to invest in a test-prep course before paying the exam and licensing fees in your state.

    Work Experience

    After obtaining a license and completing an apprenticeship, you’ll be ready to start working. Rising through the ranks of seniority will take time and expertise, so you’ll need extensive experience to move into the upper bracket of income earners. Once you have the necessary experience, you’ll be qualified to accept lucrative contracts from government and industrial clients.

    After about 10 years of unsupervised experience, you should be ready to perform any type of locksmithing job in your niche. However, because locksmithing niches can be quite specialized, you may be limited in the types of jobs you can accept.

    Types of Locksmith Jobs

    Locksmith companies can offer commercial, residential or automotive services. Many locksmiths specialize in areas such as safe cracking or commercial locksmithing. Learning how to open a locked safe is a challenging process that can take years to master. Because this skill can put safe owners at risk of theft, the ethics surrounding safe cracking and other forms of lock picking are vitally important for locksmiths.

    An auto locksmith offers lock picking services for automobile owners who are locked out of their vehicles. They also possess the skills to start all types of vehicle ignition systems without keys. Automotive locksmithing requires the mastery of a wide range of skills, including picking locks, making keys and installing electronic locks.

    How Much Does a Locksmith Earn?

    Locksmiths earn salaries ranging from around $30,000 to $70,000 per year, according to the U.S. Bureau of Labor Statistics. Earnings depend on a locksmith’s experience and the number of hours he or she works. Hourly earnings can range from around $15 to $33, depending on experience and specialization.

    The job outlook for locksmiths will be stable in the coming years, and it will tend to grow at the same rate as the overall economy. Locksmithing is a job that will always require human hands, so artificial intelligence technology won’t directly impact the industry. However, as the economy changes, locksmiths with the largest range of skills will have the best employment prospects.

  • Is India Bouncing Back From the Layoff?

    A layoff is an involuntary separation from work through no fault of the employees. It is initiated by the employer for economic or business reasons. The global break-out of the Covid-19 pandemic spelt a disaster for the economy as 2020 saw severe lockdown restrictions for more than half the year.

    Hence, unfortunately, it came as no surprise when companies – startups as well as large corporations – laid off staff in a bid to save their business operations from folding. The grim economic scenario of that year saw as many as 12,951 startup employees lose their jobs in India.

    Layoff Statistics
    Reasons for the Layoffs in Startups
    What Does the Future Hold?

    Why Layoffs in Google, Apple, Microsoft, and Twitter Could Be Good for India?

    Layoff Statistics

    Number of Employees Laid Off by Indian Startups as of June 2022
    Number of Employees Laid Off by Indian Startups as of June 2022

    Global statistics reveal that since April 1, 2022, more than 43,000 employees from 342 startups and tech companies have been laid off worldwide out of which 13% are from India. Employees of big tech companies like Microsoft and Meta have also not been insulated against job loss.

    Since the beginning of the pandemic, India has seen more than 25,000 employees lose their jobs and more than 11,500 employees have been fired this year. This unfortunate scenario has been dominated by ed-tech platforms like Unacademy which has laid off 1,150 employees, BYJU’S which has laid off 550 employees, and Vedantu, which has laid off 624 employees. In fact, two ed-tech companies, Udayy and Lido Learning, have closed their doors completely.

    Among other sectors, ride-hailing platform, Ola laid off close to 500 employees, MFine, the healthcare startup laid off 600 employees, and pre-owned cars platform Cars24 laid off 600 employees. Other Indian startups and unicorns that have laid off employees are Meesho, MPL, Innovaccer, LEAD, Trell and Blinkit (now owned by Zomato).

    Reasons for the Layoffs in Startups

    Reasons for the Layoffs in Startups
    Reasons for the Layoffs in Startups

    The year of 2022 has been rocky for the public and private sector equity market. Stock markets across the world reacted negatively and plummeted due to the global sell-off pressure. This impacted the new age tech stock as listed startups struggled. This was followed by the fall in the private markets as well.

    India is the third largest startup ecosystem in the world in terms of unicorn companies created. 2021 was the year when the startups experienced soaring valuations which slowly dropped and began experiencing a cash crunch this year as investors became wary of higher startup valuations.

    This led to a funding crunch and by the second quarter of 2022 Indian startups were able to raise only USD 6.83 billion. This was down by 42% from USD 11.83 billion which was raised in the first quarter of 2022.

    By July 2022, Indian startup funding had reached its lowest in over 17 months as the total startup funding value stood at only USD 1.16 billion, further dropping to USD 1.1 billion in August 2022. Investors took on the role of advisors to startups, giving instructions on survival techniques. There were various reasons that led to startups laying off their employees in quick succession.

    Cost Reduction

    As funding resources dried up, startups found it difficult to sustain existing business operations, much less expand. Compounding this was the slow market that was affecting sales figures, impacting the company’s profits.

    Staff Redundancy

    Companies underwent modifications, often merging internal functions or even shrinking business operations. This led to positions being scrapped, leading to staffing redundancies.  

    Relocation

    Many companies either shifted business operations areas or even shut down some business locations. This led to massive employee layoffs, affecting the economy of the community.

    Mergers and Buyouts

    Many startups, which showed promise in terms of their product portfolio, were merged with larger corporations or were outright bought. This also led to employee layoffs as new management had their own plans and goals.


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    What Does the Future Hold?

    As bleak as the scenario has been in the last seven to eight months regarding layoffs and funding, the overall numbers are now beginning to rise. As per India’s largest human resource firm, TeamLease, Indian corporates have seen a 7% increase in their intention to hire. This number is estimated to reach as high as 70% in the coming few months as per their Employment Outlook Report for the period July-September 2022.

    This upward trend is driven by the various initiatives announced by the government which are aiming at bringing the private sector back to its pre-pandemic levels. The market, post-pandemic, is driven by automation. Hence, it stands to reason that employees acquire the latest industry-specific knowledge and technologies.

    As per Shantanu Rooj, CEO TeamLease – “Businesses are looking for digitally conversant, highly adaptive and multi-skilled people who can be moulded into any kind of role. Employees will need to develop not only adjacent skills but also diametrically opposite skills – combinations like technology, and creative, technology and psychology is becoming commonplace.”

    Conclusion

    In times of financial crisis, many companies take the easy road of layoffs, citing reasons of cost-cutting, staff reduction, mergers, buyouts, etc. This move is disruptive to individual lives. However, such times are cyclic in nature and beyond individual control. As the Indian economy rises and the situation gets better, so will the employment scenario.

    FAQs

    What is a layoff?

    In simple terms, a layoff refers to the termination of employment for reasons other than the employee’s performance. It is mainly initiated by the employer for economic or business reasons.

    What are the reasons for layoffs in startups?

    The following are some of the major reasons for layoffs in startups:

    • Cost Reduction
    • Staff Redundancy
    • Relocation
    • Mergers and Buyouts

    How many employees have been laid off by Indian startups?

    Since the beginning of the pandemic, India has seen more than 25,000 employees lose their jobs and more than 11,500 employees have been fired this year (2022).

  • How to Sustain Startup in Funding Winter? | 7 Strategies to Help Startups Survive the Funding Winter Chill

    The pandemic was surprisingly a good time for startups in India, with investments in startups skyrocketing. India produced many unicorns during this time, surprising the first-world nations. Lately, studies indicate that with the funding winter in India, private equity and venture capital investments declined 27% in April 2022 as compared to April 2021. Soaring inflation, interest rate hikes, tightening liquidity, conservative venture capital investments, and rough capital markets are the primary reasons why the flow of investments into startups has reduced over time.

    Another study shows that overall funding in Indian startups has declined by over 40% to $6.8 billion in the second quarter of 2022. The impending funding winter can be a tough time for startups to survive. It will require extremely calculated steps that have to be laid out and executed properly to get through this tough space. This article will look at some of the ways in which entrepreneurs can negotiate through this rough patch in a more nuanced manner.

    What is Funding Winter?
    Strategies to Help Startups Survive the Funding Winter

    Are Indian Startups Bracing for a Tough Future?

    What is Funding Winter?

    Falling Funding in Indian Startups in 2022 as the Funding Winter Deepens
    Falling Funding in Indian Startups in 2022 as the Funding Winter Deepens

    Funding Winter is a situation wherein startups are faced with a lack of funding, which obstructs their growth in such a way that sometimes they will have to completely shut down or sell themselves to bigger establishments. It generally occurs in times of economic slowdown, when the general funding opportunities dry up. It is also seen to be followed by a stretch of tremendous funding opportunities like what was seen during the pandemic.

    As per a report by Traxcn, India is currently under the spell of funding winter across tech startups and it is likely to continue for the next 12-18 months.

    Strategies to Help Startups Survive the Funding Winter

    The rough patch of funding winter is only a temporary affair. However, the duration and impact of this time can never be predicted beforehand. However, there are certain strategies that entrepreneurs can adapt to sustain through the funding crunch.

    Indian Startup Funding Deal Count 2022 (Month Wise)
    Indian Startup Funding Deal Count 2022 (Month Wise)

    Be on the Look for Different Funding Options

    While funding winter is a time of overall financial crunch, startups can always look for alternate funding options, especially debt-backed funding. While it is an excellent idea, entrepreneurs need to take care to maintain a healthy ratio of debt to equity. Companies like SMOOR survived the pandemic in a profitable manner through debt-backed funding.

    Today, the providers of this mode of funding have come up with different kinds of plans suitable for entrepreneurs to scale up their businesses. There are various other options like Supply Chain Financing/Invoice Discounting, Working Capital Financing, Asset Financing, Revenue-Based Financing etc. To prevent the risk of exhausting equity, it is always better to combine flexible debt and revenue to fund the company in times of financial difficulty.


    From Pre-seed to Late Stage Funding – Sources of Every Funding Stage
    As the business grows, it requires funding for expansions and research. There are different stages of funding that respond to the different needs of a growing business.


    Improving Customer Experience

    The age-old saying that the customer is king never goes out of trend even during a funding winter. In fact, it holds the most value during this time of all the others. Startups can work on increasing the reach of their products amongst customers during this time. A good product and a good customer service system can go a long way. Giving out coupons without undermining the overall health of the startup can help retain efficient customer engagement. Further services like customer support can be revived to ensure a better reputation.

    Maintaining Strategic Partnerships

    There is no doubt in the fact that funding winter is a time to stay low. However, it is not the time to hibernate as well. Instead of wasting money by focusing on big clients, startups can try to leverage partnerships with those clients that can convert customers at a high rate of intent. These partnerships serve as channels to monetise consumers. Going for smaller partnerships also has the additional benefit of lower customer acquisition costs.

    Halting Experiments

    It is true that an important aspect of the growth of any startup is the innovative ideas and practices that it brings to the table. However, during the funding winter, it is best to not experiment with anything new. It is the time to focus on the core business and halt any kind of activity that the company is not sure about. In this way, startups can prevent unnecessary expenses and use the available funds to strengthen and sustain the basics.

    Thrive on Leaner Budgets

    Cost-cutting is one of the most common methods used by startups during funding winter. In some cases, layoffs might be an inevitable choice. Experienced professionals opine that it is better to do one big layoff than to do multiple small layoffs, as it can be financially and psychologically unhealthy for the startup and the employees, respectively. It is also the time when startups can offer shares of the company rather than fat pay cheques to the employees. There has to be a calculated control over increments, appraisals, and allowances. At the same time, startups need to closely watch the expenses of the firm in real-time.

    Altering Business Strategy

    Funding winter is the time when startups cannot afford to make the wrong decisions. During this time, situations may demand a change in business strategy to ensure that the best possible decisions are taken. Startups have to focus on data-driven decisions to prevent unnecessary expenses. Altering business strategy will also include reworking the networks for cash flow based on the situation.

    Maintaining Transparency

    While the overall economic distress that prevails during the funding winter is not a good place to be, hiding this fact can be fatal. Firstly, people, including the employees, will understand that the startup is under pressure even before it is officially announced. So as to maintain a better customer impression and employee loyalty, it is always good to keep accounts and details of the startup transparent. At the same time, it is necessary to keep the investors informed about the financial status of the company as well. All these will additionally help in gaining financial help from hitherto unexplored channels or people.


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    Conclusion

    Funding winter is indeed a rough test to pass. While it is only temporary, its effects can be fatal. It is always important to expect the worst and prepare for the best. Today, several funds and grants from the government are earmarked to be used in situations like these. Staying aware of the political and economic situations in and around the country and in the concerned domain is also an important exercise to be constantly taken care of. As scary as it may sound, funding winter is not an impossible river to cross. With prudential flexibility, clear-cut plans, and proper implementation, startups can sustain the funding winter.

    FAQs

    What is funding winter?

    Funding Winter is a situation wherein startups are faced with a lack of funding, which obstructs their growth in such a way that sometimes they will have to completely shut down or sell themselves to bigger establishments.

    How to sustain startups in funding winter?

    The following are the prominent strategies to follow for sustaining startups in funding winter:

    • Be on the Look for Different Funding Options
    • Improving Customer Experience
    • Maintaining Strategic Partnerships
    • Halting Experiments
    • Altering Business Strategy
    • Thrive on Leaner Budgets
    • Maintaining Transparency

    How long the funding winter will last in India?

    As per a report by Traxcn, India is currently under the spell of funding winter across tech startups and it is likely to continue for the next 12-18 months. It was in Q3 of 2021 when funding for tech startups saw a peak in India. However, since then, funding has been on a decline, as per the report.

  • RBI Guidelines on Digital Lending – Highlights and Implications

    As the digital revolution took over the regular life of people by storm, there are not many areas that remain uninterrupted by it. With the huge impetus given to Digital India by the Government of India, the domain of finance and accounting has also undergone tremendous changes.

    Beginning with online payment with the help of UPI, it has gone to newer avenues, wherein digital platforms offer credits to the user. It is widely called digital lending. Using the technology of credit assessment and authentication, websites and apps these days allow their users to lend money. Today, banks are not far behind in this domain. They have come up with their own digital lending platforms. Their experience in traditional lending further gives them the edge to sustain themselves in the market.

    In India, a large section of the society depends on the unorganized sector for credit which cracks down on poor farmers and micro enterprises with their high rate of interest. In that regard, the popularity of digital lending has, in fact, bought in financial inclusion meeting the hitherto unmet credit requirements of the people. As digital lending got more popular, it became necessary to keep a check on the activities that are taking place in this domain.

    The Reserve Bank of India, in August 2022 released guidelines on digital lending so as to ensure the smooth and safe conduct of transactions through digital platforms. This article will look at important parts and implications of the guidelines issued.

    Applicability of the Guidelines
    What does the Guideline say?
    Payments
    Data Privacy
    Reporting Lending to CICs
    Options to Exit Loans
    Grievance Redressal

    Applicability of the Guidelines

    The Reserve Bank of India has issued these guidelines keeping in mind the lending ecosystem of Regulated Entities (RE) and Lending Service Providers (LSP). They have classified digital lenders into three different groups. Firstly, those entities that are regulated by the Reserve Bank of India for lending business in itself.

    Secondly, those entities authorized to carry out lending are based on the statutes and regulatory provisions of certain other bodies but are not managed by the RBI.

    The third groups include those entities that are outside the purview of any kind of regulatory or statutory provisions.

    All those lending groups that do not come within the discretion of the above-mentioned categories are free to formulate their own rules and regulations alluding to the recommendations of the working group.


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    What does the Guideline say?

    Let’s take a brief look into the highlighting aspects of the guidelines:

    Payments

    The guideline mandates that all digital transactions should be made between the bank accounts of the regulated entity and the borrower. It should not include any third party or pool account. When they say Regulated Entity, it means any banking or non-banking financial company.

    With regard to the payment of fees during the credit intermediation process, the guidelines clarify that the payment is not to be made by the borrower but should be made by the Non-Banking Financial Companies (NBFCs) i.e, the regulated entities.

    If at all there are any penal interest or charges, they are to be disclosed in the key fact statement (KFS) on an annual basis and should be based on the outstanding amount of the loan.

    Data Privacy

    Data Breaches Worldwide
    Data Breaches Worldwide

    Data privacy is one of the most concerning thoughts in today’s digital world. The guidelines carefully address this issue by delineating that the usage of user information should be need-based. The digital lending platforms are barred from accessing the user’s files, contact lists, call logs, media, and other telephonic functions.

    However, they can have one-time access to their camera and microphone to complete their KYC procedures. This will be possible only after the explicit consent of the customer. Additionally, the guideline also states that the user has the option to deny access to certain data, restrict disclosure of certain information to any third party and deny data retention. The user can also revoke the consent given later if they feel so. They can also delete the application and forget the data when it is being uninstalled or deleted.

    While signing up, the digital lending platform needs to disclose the credit limit information related to product features and the related costs. It includes the disclosure of the all-inclusive costs of digital loans in the form of Annual Percentage Rates (APRs). The guidelines also prohibit these platforms from increasing the credit limit without the consent of the borrower.

    Reporting Lending to CICs

    Any form of lending carried out through Digital Lending Applications (DLAs) of RE or LSPs is to be reported to the Credit Information Companies (CICs) irrespective of their tenure or nature.

    The guidelines extend these requirements even to those lending carried out through Buy Now Pay Later model. This is with regard to the provisions of the Credit Information Companies (CIC) Regulation Act, 2005, issued by the Reserve Bank of India at regular intervals.

    Options to Exit Loans

    The RBI guidelines give the user an option to exit the availed digital loan by paying only the principal and proportionate APR without paying any fine within a stipulated time called the cooling-off period or look-up period. The cooling-off time is determined by the boards of the respective regulating entities. Such a time period should not be less than three days for loans having a tenure of seven days or more and one day for loans having a tenure of fewer than seven days. For those borrowers, who continue even after this period, the provisions of pre-payment will be continued based on the extant RBI guidelines.

    Grievance Redressal

    Every Regulated Entity (RE) and Lending Service Provider is required to appoint a grievance redressal officer. They are supposed to address the FinTech and Digital lending-related complaints issues, faced by the customers.

    Apart from that, the issues related to one’s own Digital Lending Applications are also to be addressed by the officer. Apart from facilitating the option to lodge complaints, the contact details of the respective nodal grievance redressal officer have to be visibly displayed on the website of the regulated entity.

    To further foolproof the grievance redressal system, RBI allows the user to file complaints through the Complaint Management System (CMS) portal under the Reserve Bank-Integrated Ombudsman Scheme (RB-IOS) in case the complaint is not resolved within 30 days of filing.


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    Conclusion

    The development of technology services has tremendously contributed to the mushrooming of Digital Lending Services, which gained quick popularity among the young and middle-aged population alike. While such schemes have been helpful to a lot of people, it has also resulted in many unethical and fraudulent practices, wherein users get scammed.

    Apart from that, various platforms also use this service as a way to charge exorbitant interest rates from users. It is in such a context that the guidelines released by the RBI become all the more relevant. There was a need to manage and control the proliferation of this budding service. These guidelines will ensure that lending through digital platforms happens responsibly wherein both the parties benefit from the advancement of fintech facilities.

    FAQs

    When and where was RBI established?

    The Reserve Bank of India was established on 1st April 1935, in Kolkata.

    Where is the central office of RBI?

    RBI headquarters is currently located in Mumbai after it was shifted from Kolkata in 1937.

    Who is the current governor of RBI?

    Shaktikanta Das is the present governor of RBI.

    When did RBI release Guidelines for Digital Lending?

    RBI released the Guidelines for Digital Lending in August 2022.