Over the last few decades, sports marketing has firmly established itself as an integral part of marketing. There is no existing definition for sports marketing. However, it is explained as a specific application of marketing principles and processes to advertise sports and non-sports products through an association with sports. It can also be described as a service through which either a physical product or a brand name is endorsed.
The design and concept of sports marketing is to meet the needs and desires of the consumers through an exchange process. The traditional four ‘P’s of marketing – Product, Price, Promotion, and Place are employed along with the four extra elements of the sports marketing mix – Planning, Packaging, Positioning and Perception. These types of sports promotions involve a variety of sectors of the sports industry like broadcasting, advertising, social media, digital platforms, ticket sales and community relationships.
Size of Sports Sponsorship Market Worldwide in 2021 and 2030
In 2021, the Indian Sports Industry spends surpassed INR 9500 crores. It was an echoing comeback for sports sponsorships and media deals, which had dropped severely during the covid struck year of 2020. Sports celebrity endorsement spends grew by 11% with a total of 444 brand endorsement deals in 2021. It was also the year of the Olympics which increased the Emerging Sports Athletes’ endorsements by 79%.
Prashanth Kumar, CEO of GroupM South Asia observed – “2021 was a year of a major comeback for the sports industry. Not only in sports but we saw growth in sponsorships, endorsements, and media expenses in 2021. This year will also be a good re-start point for brands to invest in sports properties since sports will see a rise and will in-turn deliver ROI to brands. Apart from this, we even saw esports gaining significant traction and there was a major rise in the number of gamers in the country. Properties like PKL, ISL, etc. are also seeing a major rise in followers which goes to show that India is heavily invested in overall sports from an interest and inquisitiveness standpoint. As for cricket, we are seeing a growing interest by Foreign private equity giants investing in Indian cricket which is proving that Cricket will continue seeing a huge surge in India and with 2021 getting cricket back on track, we are seeing 2022 racing ahead, aiming to cross INR 10,000 Cr mark.”
2021 saw heavy media spends in sports as broadcasters played a central role to bring consumers and brands closer. Household penetration of television and technology has been crucial in the growth of sports appreciation by the masses. This has resulted in television becoming the largest medium for viewers culminating in an overall ad expenditure of INR 5051 crores – a growth of over 59% from 2020. The digital ad expenditure grew to touch INR 965 crores.
Sports marketing is about using the content of sports to assist the marketing efforts. Apart from professional sports, sports marketing is a large part of college athletics, minor leagues and alternative sports. It can take many different forms as sports is watched on a variety of platforms. Television networks sell airtime during sports events, teams sell advertising space inside the stadiums to marketers wanting to purchase billboards and other print advertisements, and famous athletes sign contracts as celebrity endorsers and lend their image to brands.
One of the main reasons for brands to invest heavily in sports marketing is to piggyback on the popularity of athletes and the loyalty of their fans. It gives brands and companies a captive and ready audience to advertise their products.
Sports also add value to a brand by creating a unique position in the mind of the consumer. This is especially advantageous in a market that is rife with stiff competition. Smaller companies benefit immensely from improved awareness at local or regional levels.
At its highest levels, sports involve medals, world records and global awareness. This is a ready stage for global brands that want to associate themselves with excellence and ubiquity.
What Do Companies Require From Sports Advertising?
BYJU’S Sports Marketing Example
Sports advertisements and sponsorships are used by companies and brands for a variety of reasons and objectives.
Brand / Corporate Awareness
This is to expose the name in front of the consumer so that he or she will recall it favourably when exposed to other focused marketing messages.
Brand / Corporate Image
This type of sponsorship is focused on creating a particular style or niche for the brand or the company. It allows the brand to distinguish itself in the market and paves the way for premium pricing.
Customer Relations
Anyone in marketing understands the importance of building good customer relationships. Sports sponsorships are an excellent avenue to open a dialogue with other companies as well as showcasing their worthiness as a global player and a trustworthy business associate.
Employee Relations
Sports sponsorships foster pride and loyalty within the employees. This helps to retain and attract staff.
Community Relations
This is the philanthropic side of the company that can be showcased through sports sponsorships. It highlights the company’s readiness and willingness to invest in society’s future and well-being.
Different companies have different needs from sports sponsorships. However, the commonality exists in the quantifiable contribution to the brand. It also allows for media coverage and exposure, by creating opportunities for newspaper photographs and television images, showing logos or banners.
Companies and brands use sports to reach a certain segment of the population. However, the only real qualification for using sports advertising is a product that has mass appeal. Hence, it is extremely important for any marketer to understand the relevance of the product that is being marketed to the audience.
As a marketing tool, sports advertising is highly effective. It is dependent on the company or the brand to utilize this tool to its maximum advantage.
FAQs
What is sports marketing?
Sports marketing is a type of marketing that uses sports for advertising. This kind of marketing simply focuses on promoting products and services by taking advantage of sports events and teams to reach the audience.
Why do companies invest in sports marketing?
Companies invest in sports marketing for many reasons. These include:
Brand Awareness
Brand Image
Stronger Customer Relations
Better Employee Relations
Community Relations
What are the key areas of sports marketing?
The key areas of sports marketing include sponsorships and endorsements. In sponsorships, the brands offer funds to sports events and teams for the brand’s promotion and in endorsements, the brands approach sports celebrities to act as their spokesperson.
A good business idea needs to be supported by good mentors and ample funding. In most cases, more than 60% of startup ideas wither away for lack of funding. In fact, there are many funding opportunities awaiting entrepreneurs across the world which are highly competitive and sometimes unknown to the majority of the people. This article will look at some of the top business grants for startups across the world. Further research on their nitty-gritty will help finalise the right place to approach if you have an innovative idea that can change the face of the way things are in the respective field.
Biotechnology Ignition Grant Scheme (BIG) – Best Startup Business Grants
This flagship program of the Biotechnology Industry Research Assistance Council (BIRAC) provides financial and non-financial support to young Indian startups and entrepreneurial individuals in the field of biotechnology. The primary objective of the scheme is to foster a generation replete with ideas that have commercial potential, support enterprise formation and encourage people to take up technology closer to the market.
It is in fact the largest biotech funding programme in India as far as early-stage funding is concerned. The awardees will get up to INR 50 lakh. The best innovative ideas are selected through proposals which are invited twice a year i.e, 1st January and 1st July of every year. The selected ones are mentored and monitored by 8 BIG partners across the country. As of now, more than 6000 proposals have been received and 125 new startups incubated through the BIG Scheme.
Multiplier Grants Scheme (MGS)
Grant: Up to INR 2 Crore for Individual Industry; INR 4 Crore for Industry Consortium
Multiplier Grants Scheme – Best Startup Business Grants
With an aim to integrate academics and industry in a beneficial manner, the Department of Electronics and Information Technology (DeitY) has come up with Multiplier Grants Scheme (MGS). The scheme provides financial support to those products that are supported by the industry for their research and development in India. The awardees are selected based on the proposals submitted jointly by industry and institutions. Apart from strengthening the linkages between academics and industries, the scheme also aims at promoting research and development that are industry oriented in educational institutes, encourage the production of indigenous products and further fuel globalisation.
For individual industries, the government grants INR 2 crores per project and the duration of each project should be less than two years, while an industry consortium can get a grant of INR 4 crores and the duration should be less than three years. The funds for the projects are given to the institute alone while the agreement on sharing the IPRs/know-how and royalty should be shared between the industry and institute prior to receiving the first instalment of the grant.
Startup India Seed Fund Scheme
Grant: Up to INR 20 Lakhs
Startup India Seed Fund Scheme – Best Startup Business Grants
This scheme rolled out by the government of India aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialisation. The scheme is managed by the Department for Promotion of Industry and Internal Trade and will support recognised startups through Government assisted and Non-Government assisted Incubators. Eligible candidates can apply for the grants throughout the year. The startups are supposed to be 2 years old at the time of application. Additionally, the startup should have technology as its core product, service, business model, distribution model, or methodology.
Grant: Phase I – $50,000 to $275,000 ; Phase II- $750,000 to $1.8 million
Small Business Innovation Research (SBIR) – Best Startup Business Grants
The Small Business Innovation Research (SBIR) was formulated under the Small Business Innovation Development Act of 1982. It is a program exclusively for small businesses in the USA. The program aims to encourage small businesses to step into the domain of Federal Research/Research and Development (R/R&D) that has the potential to be commercialised. They also aim to foster and encourage participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons. Additionally, they also attempt to foster technology transfer between institutes and industry.
The entire program is bifurcated into three phases whose nuances are extensively detailed on their website. In the first phase (6-12 months), the applicants can receive grants between $50,000 and $275,000; the grant for the second phase (24 months) depends upon the results attained in the first phase, and the amount ranges between $750,000 and $1.8 million. The third phase is the phase of commercialization and is not funded by SBIR. Rather, it is funded by some federal agency and is mainly done to achieve the objectives of commercialization.
Amber Grant
Grant: $10,000 to $25,000
Amber Grant – Best Startup Business Grants
Founded in 1998 by WomensNet, Amber Grant is a foundation that gives grants to women-owned businesses in the USA. It was started in the loving memory of Amber Wigdahl, who died at the age of 19. Every month, they give $10,000 to one woman entrepreneur. Apart from that, they give two separate women-owned business grants worth $25,000 at the end of the year. The first grant goes to one of the previous winners of the $10,000 monthly Amber Grant, and the second, $25,000 grant goes to one of the previous winners of the $10,000 monthly Business Category Grant.
Also, along with the sound funding they give, the group also extends personalised business advice and other support to their community members. They have a very simple application process wherein the applicant has to give details of their business. The recipients are announced on the 23rd of every month.
IFundWomen Grants
Grant: NA
IFundWomen – Best Startup Business Grants
With the aim of bridging the funding gap experienced by women entrepreneurs, IFundWomen is a funding marketplace that provides all the support from interested women. Through online fundraising, they provide immediate access to capital. They have a collaborative women’s community that provides them with expert coaching, and professional creative production apart from giving small business grants. They have multiple varieties of grants which the entrepreneur can choose based on their requirements. The community also try to fund women from all kinds of background.
FedEx Small Business Grant
Grant: $5,000 to $50,000
FedEx Small Business Grant – Best Startup Business Grants
Every year FedEx gives out grants to various small businesses including startups. The range of these grants varies from $5,000 to $50,000 apart from other business services offered by them. The applications open every February. Since its inception in 2012, it has given more than $1.5 million in cash to nearly 100 small businesses. This US-based business grant continues to be one of the most competitive funding programmes attracting more than 18,000 entrants in 2022 alone.
Startup SG Founder is a funding opportunity that is open to all Singaporeans and their permanent residents. They provide funding of up to $50,000 for first-time entrepreneurs with innovative ideas by matching $5 to every $1 raised by the entrepreneur, for up to $50,000. They also give them mentoring support. The National University of Singapore is an Accredited Mentoring Partner (AMP) of this program. The primary goal of this programme is to encourage more people to take up entrepreneurship as a career pathway. The program mandates that the startups should have at least three entrepreneurs with two of them being first-timers.
CSIRO Kick-Start
Grant: $10,000 to $50,000
CSIRO Kick-Start – Best Startup Business Grants
It is an initiative by the Australian government to support entrepreneurs and small businessmen in the country. Along with the funding, the program grants access to the CSIRO’s research expertise and capabilities. They give complete facilitation to those projects that research into a new area with commercial potential, or those products that have the potential to expand their customer base.
The Program provides matched funding as vouchers that are worth between $10,000 and $50,000. It is also important to note that the funding is not provided in cash to the business, but as vouchers to defray the cost involved in accessing the research and capability of CSIRO. Eligible candidates can apply for the program at any time of the year.
Isivande Women’s Fund (IWF)
Grant: $135,000 – $9 million (approx)
Isivande Women’s Fund – Best Startup Business Grants
It is an initiative by the South African government to boost the economic empowerment of women in the region. The funds are granted to those enterprises that have been registered for at least 6 months and are 50% + 1 share owned and/or managed by women. Their customised loans are ranged from R30 000 to R2 million ($135,000 – $9 million approx).
Conclusion
There are a plethora of funding opportunities awaiting innovative business ideas. It is important to stay alert to the call for proposals. Besides having a good idea, one also needs to have an extensive plan on how to roll out the idea on a commercial scale. All the above-mentioned funding opportunities and grants are purely meant for entrepreneurs and can be availed at different times of the year.
FAQs
What amount of a grant can a startup receive under the Startup India Seed Fund Scheme?
For the validation of proof of concept, prototype development, or product trials, grants of up to INR 20 lakhs can be received under the Startup India Seed Fund Scheme.
What is FedEx Small Business Grant Contest?
FedEx Small Business Grant Contest is a contest by FedEx. The contest is meant to provide grants to small businesses in the USA in order to support and enhance their businesses.
Where can startups get funding?
Startups can get funding in many ways. These include:
Self-finance or Bootstrapping
Friends and Family
Bank Loans
Crowdfunding
Angel Investors
Venture Capitalists
Government schemes and Grants
What are some popular business grants for startups across the world?
Some of the most popular business grants for startups across the world are:
As an E-commerce store owner, you may be tempted to believe that product selection, order fulfillment, and a well-built site are only essential for running a successful online store.
While these common factors are important, there is one more crucial element that often gets neglected by most – the site’s search feature. Visitors who use the store’s search feature have a higher buying intent; hence, the search feature generally contributes considerably to the total revenue.
But since online shoppers are becoming pickier, you cannot afford to lose them by offering a basic search feature in your online store. If you want visitors to make purchases, you must provide them with a seamless navigation experience paired with relevant results and clear product information. It can be achieved by incorporating modern E-commerce search functionality in the store.
Intelligence autocompletes suggestions, proactive assistance, personalization, NLP, and custom stemming algorithms are a few ways to optimize the site’s search feature for the best results. Want to know how you can make the most from the site’s search feature? Read till the end.
For the uninitiated, Natural Language Processing (NLP) can be best defined as a computer program’s ability to understand human speech as it is spoken. The best example of NLP can be Amazon’sAlexa and Siri. They understand human command and interpret it to perform or deliver the required action. Something similar can be applied to an E-commerce store.
Integrating NLP into your site’s search algorithm can extract more relevant product results based on consumer searches. Accuracy is the keyword here. Since searches can be complex, E-commerce site search solutions must be smart enough to differentiate and understand various queries.
One example of it can be item plus attribute searches. Farfetch, a well-known, premium E-commerce store, has used NLP to render relevant search results to visitors.
When you search for women’s shoes in this store, the site displays a range of shoes as the results. Sandals, sneakers, and slides are some types of shoes shown in the result. What is worth noticing is none of the product titles lists ‘shoes’ as a keyword.
Yet the search engine was smart enough to understand what the user is trying to search. It is one of the best examples of NLP you can come across in the whole of E-commerce segment.
Data Processing is essential for an advanced E-commerce Search Solution. An online store with hundreds of products across categories will also have plenty of searchable data to organize and process. Product reviews, internal rankings, descriptions, titles, categories, and attributes are some data points that need processing. Mere indexing is not enough for a modern search solution.
To process data more meaningfully, you should start by converting poorly-structured data into organized structures by identifying specific patterns. The data should be cleaned, tagged, extracted, and optimized, so search engines can better understand long-tail complex queries.
The entire process should be well-automated to end human touch. Your aim as a seller should be to enable advanced data processing, so it works automatically with all the products 24*7. Every E-commerce store owner can learn data processing from BestBuy.
When you type in any long or complex query, like HP 16 GB RAM laptop, in its search bar, it processes its stacks of data and renders laptop suggestions that belong to the specific brand and possess the required feature, i.e., 16 GB RAM, in this example. It shows the search algorithm’s ability to juggle multiple specifications in a single search.
If you don’t process the data the correct way, your visitors can start seeing irrelevant product recommendations. It would help lower sales eventually.
Zero Results Page
Zero Results Page
Display Relevant Products on the Zero Results Page. Zero results page is a common sight on most E-commerce platforms. It often appears when a visitor types something in the search bar that cannot be found. If it’s a complex query that most find difficult to comprehend, it’s normal. But it’s a problem if the zero result pages appear because the online store’s search solution is poorly-designed.
As an online seller, you should ensure that the zero results page leads to relevant products related to the searched query, not blank screens. The store’s search engine solution has to be advanced enough to detect and suggest relevant products instead of stating the particular item wasn’t found.
It is an area where most E-commerce stores are lagging behind. Take Metro Shoes, for example. When you search for Adidas winter shows in the search bar, it leads you to a page with no results.
Had they displayed other Adidas shoes, the chances of the visitor making a sale would have gone much higher. If you want to go further, you can personalize the zero result page search recommendations based on the user’s browsing history.
Autosuggest/Autocomplete
Anticipate and Complete the User’s Search with Autosuggest/Autocomplete. Online stores offering hundreds of products should incorporate this feature in their search option. It makes shoppers’ buying process easier and faster. When the autosuggest/autocomplete feature recommends the relevant product, it saves visitors from slogging through different items to find what they want.
If you can give your visitors an autocomplete/autosuggest facility the way Amazon does, you can add a lot of money to the bottom line. It will contribute to an increased conversion rate. Another great way to boost user experience using a search solution is by recommending relevant products immediately after the keyword search has been autocompleted.
For best results, carry out specific customization work concerning certain features or your own line of products. Being stuck with the default search parameters will serve no purpose in the long run.
If you’re running out of inspiration and want to deliver a high-converting experience, divide the entire autosuggest/autocomplete section into four main parts: keyword suggestions, articles related to the keywords, main keywords in different categories, and product suggestions.
Enable Search Solution
Flipkart
Enable the Search Solution to Distinguish Between Synonyms. Last on the list is being able to distinguish between synonyms. Let’s understand this with an example from Flipkart. When you search for dark bombers on Flipkart, its search algorithm understands the query and runs through the vast database, including studying the pictures.
As a result, it displays products of dark colors, like navy blue, black, grey, etc. You can achieve something similar by integrating your search solution with advanced AI image recognition algorithms. This algorithm is excellent for online retailers to help them improve their internal search. It can become even better if it starts to detect synonyms automatically.
Allow Users to Search by Product Image
When one talks about using the search bar of an E-commerce store, people generally think of typing the product or keyword. But often, people try to shop using the image at hand.
For example, if you randomly came across a dress via social media platforms but are unsure what to type to find it on E-commerce stores, an image search can help. You are not the only one who comes across such situations where the only thing you can think of while online shopping is a visual image.
E-commerce stores like eBay and Meesho are some online websites that let shoppers search using product images. If you can integrate something similar in your online store, you’ll witness a massive spike in overall revenue.
Optimize Search Solution
Whenever an online shopper visits an E-commerce store, the first thing he does is type the product name in the store’s search bar. It makes it easier for the shopper to find the relevant product within seconds.
However, since the modern buyer demands more, E-commerce store owners can no longer rely on basic E-commerce search. Modern AI-based search engines with NLP, intelligent assistants, automated merchandising, etc., are the need of the hour.
Online stores that take the time and effort to make their shoppers’ buying journey easy are often rewarded in terms of increased sales, more brand loyalty, and higher customer retention. Search optimization can be a complex topic for many E-commerce store owners, but it isn’t that difficult to understand.
Whether you have a relatively new online store or an already established one, the search optimization features discussed above in this guide are all you need to get the ball rolling. Implement all the tips, and you’ll be surprised to see the results.
Almost every visitor who wants to make a purchase from your e-commerce site has a certain idea about what they want to buy. So, it is extremely important for sellers to give great attention to their site’s search algorithm in order to understand customers’ preferences. For this, all a seller has to do is make the site’s search process as smooth and efficient as possible, and the above article includes all the essentials that will help in doing so.
FAQs
What is E-commerce?
Any electronically buying or selling activity over the internet is called E-commerce.
What are the types of E-commerce?
There are 6 types of E-commerce: B2C, B2B, B2G, C2B, C2C & C2G.
What are some famous E-commerce websites?
Amazon, Flipkart, Meesho, Jabong, Snapdeal, and Myntra are some famous E-commerce websites.
Funding is the act of providing resources to finance a need, program or project. Sources of funding include credit, venture capital, donations, grants, savings, subsidies and taxes. There are two types of funding:
Soft Funding This type of funding includes donations, subsidies and grants that have no direct requirement for return of investment. It is also known as crowdfunding.
Equity Crowdfunding Funding that facilitates the exchange of equity ownership in a company for capital investment via an online funding portal per the Startups Act, is known as Equity Crowdfunding.
Funds can be allocated for either short-term or long-term purposes.
Value of Startup Funding Across India from 2015 to 2021
Businesses regularly seek funding. This funding can be for one of these three reasons:
For Research
This is most often allotted in the fields of technology or social sciences. This type of funding is granted on the basis of a project, a department or an institute depending on the scope of the research or the project. Organisations that require such funding normally have to go through competitive selections.
For Launching a Business or Startup
Entrepreneurs with a business concept need the necessary resources including capital to venture into the market. The size of the funding required by these businesses depends upon the nature of the business.
For Investments
This type of funding usually involves fund management companies that gather pools of money from various investors and use it to purchase securities. These funds generate returns through asset diversification. The main purpose of these funding activities is to pursue individual or organisational profits.
Stages of Startup Funding
Stages of Startup Funding
A new business demands much more than a great idea. It needs dedication, discipline, hard work and most importantly funding to convert its great idea into a successful reality. As the business progresses and grows, it may require funding for expansions and research depending on the type of business. There are different stages of funding that respond to different needs at different stages of a growing business.
Pre-Seed Funding
This is the ideation stage. It is a time when the entrepreneur is working to bring the idea to life. That is why it is known as the pre-seed stage. Usually, the fund requirement at this stage is small and there are very limited and mostly informal channels available for raising money.
One way to raise capital is to self-finance. This can be accomplished by relying on personal savings or by mortgaging or selling real estate property for money.
The more common method is to borrow from friends or family members. The biggest benefit of this method is that there is an inherent level of trust between the entrepreneur and the investors.
Another method is to win the prize money/grants/financial benefits that are provided by institutes or organisations that conduct business plan competitions. Though not large, the amount of money is usually enough for the ideation stage. The challenge is that the business plan has to be approved by the judges.
Seed Funding
Seed capital is the investment made at the preliminary stage of the startup. This money helps the business in identifying and creating its roadmap and the direction in which the business needs to grow. To this end, the money goes towards identifying the market demands, preferences and tastes and then formulating a product or service. Seed funding is generally raised from
Bank or even Non-Banking Financial companies (NBFCs) in the form of loans.
Mentors, friends or family members.
Crowdfunding
Angel Investors
Venture Capital Funding
This form of private equity financing is provided by venture capital firms for funds to startups and emerging companies that are deemed to have high growth potential and have demonstrated strong business operation acumen. Venture capital comes into the picture when the company’s products or services reach the market. This is a growth stage that further involves more rounds of funding.
Series A Funding
This is the very first round of VC funding that is primarily used for marketing, improving brand credibility, tapping new markets and business growth. The potential investors for Series A funding are-
Accelerators
Super Angel Investors
Venture Capitalists
Series B Funding
When a business reaches the stage of Series B funding, it means that the product has found a market and there is scope for growth in other markets as well. This type of VC funding is utilized to hire more staff, improve the infrastructure and expand the business beyond local borders. Potential investors for this type of funding are-
Venture Capitalists
Late-stage Venture Capitalists
Series C Funding
While there is no limit to the rounds of funding that a business can receive this round of business funding entails great caution. The more investment rounds, the more the business releases equity. The potential investors for series C funding are-
Late Stage Venture Capitalists
Private Equity Firms,
Hedge Funds
Banks
Series D Funding
This is a funding stage that is not very common for businesses. This type of funding allows entrepreneurs to raise money for special situations like a merger or if the company hasn’t hit its growth goal yet. The potential investors in this funding are the same as the investors in the Series C Funding.
Number of IPOs in Public Markets of India from 2015 to 2021
Initial Public Offering is the process of offering corporate shares to the general public for the first time. Growing startup businesses often use this process to generate funds for expansion and growth. There is a specific process for growing startups who decide to raise capital via the IPO route.
The business has to form an external public offering team comprising of underwriters, lawyers, certified public accountants and SEC experts.
Information regarding the company’s financial performance and its expected future operations has to be compiled.
An audit has to be conducted of the company’s financial statements that generates an opinion about its public offering.
The company, then, has to file its prospectus with the SEBI and determine a specific date for going public.
An IPO has several other benefits to offer other than raising funds for a growing business. These are:
Additional funds can be generated through secondary offerings as the company already has access to public markets.
Executives of the company can be partly compensated through stocks.
Mergers are easier for public organisations.
Apart from all the known funding methods, there are some lesser-known but quick methods to raise money for a startup. These methods may not work for everyone but depend on the type of business operations. These are:
Product Pre-sale: Companies like Apple and Samsung raised finance to continue operations by starting a pre-order campaign well ahead of the official product launch. It is an often overlooked and highly effective method to raise capital and improve cash flow.
Selling Assets: This is a tough step to take but it is effective to meet short-term fund requirements. These assets can be bought back once the business is out of a crisis.
Credit Cards: This is not the most effective way nor is it highly recommended. However, it is one of the most readily available ways to finance a business. The credit can be continued by making minimum payments, but, the interest rates and the costs on the cards can build very quickly. Carrying that debt can be detrimental to the business owner’s credit in the long run.
Conclusion
The various startup funding stages allow entrepreneurs to scale up their business operations at any stage of their business. This practice also allows them to identify the stage at which their company is operating and which potential investors might fund them for expansion.
Also, this is a cyclic event as many startups that have grown successfully through funding might become investors in other startups as well.
FAQs
What are the stages of funding?
The stages of startup funding are:
Pre-Seed Funding Stage
Seed Funding Stage
Venture Capital Funding Stage (Series A, B, C, and D)
Initial Public Offering (IPO)
What is the pre-seed funding stage?
It is a time when the entrepreneur is working to bring the idea to life. It is the stage of ideation which is why it is known as the pre-seed stage. The most common source of funding at this stage includes self-finance, family and friends, or grants from certain institutions.
What is considered late-stage funding?
Late-stage funding is meant for companies that have passed the phase of ideation, and product development, and are making sales. Late-stage funding is gained by companies that are growing and shows huge growth potential to investors.
Most companies focus on IPO (Initial Public Offering) only after they have attained unicorn status. But, is it actually the criteria for it? After all, this is one of the best measures to generate funds for your company.
In this blog, we will discuss the various aspects of IPO and how you can determine whether your company is ready for IPO status.
Initial Public Offering or IPO is the process through which a private corporation offers its shares to the public for the first time, in new stock issuance. It is also a measure for the company to raise capital from public investors.
It is one of the ways for private investors to fully realize their investments. Sometimes it also works as an exit strategy for the earlier investors or founders by fully realizing their gains. It provides the opportunity for the company to obtain capital through their primary market by offering its shares.
Usually, the companies hire investment banks to help with the market demand and set the price for IPO.
How IPO works?
Total Value of IPOs in Public Markets of India from 2015 to 2021
A company before IPO is considered a private firm. It only comprises of a few shareholders including the founders, cofounders, or professional investors like angel investors or venture capitalists.
IPO does not just allow the company to gather capital but, it also provides an opportunity to expand and grow faster. As stated earlier, typically the companies that have acquired unicorn status i.e., have reached the valuation of 1 billion, advertise their interest in going public.
However, private companies that have proven their calibre for profitability and have well-built fundamentals can also qualify for an IPO. A company should reach the maturity stage where it is able to stand up to the rules and regulations of the Securities and Exchange Commission (SEC).
Also, it should be able to take care of the benefits of the shareholders and its responsibility towards them. Overall the market competition and the company’s ability to deal with the list of requirements make it eligible for starting the IPO process.
When a company decides to go public, its previously private shares are converted into public shares. The worth of the shares already existing with the previous private shareholders becomes equal to the public trading price.
Now, every individual who is interested in investing in the company has the opportunity to contribute towards the company’s shareholders’ equity. Therefore, the new value of the company’s shareholders’ equity depends upon the number and price of shares it sells.
The IPO process is divided into two parts, the premarketing phase and the actual initial public offering. A company first advertises to underwriters, these are the individuals responsible for evaluating and assuming the company’s risk for payment.
These underwriters are requested for private bids after which the company chooses one or more of them to lead their IPO process. There can be several underwriters responsible for managing different parts of the process viz. filing, marketing, document preparation, etc.
The various steps included in the IPO process are as follows:
Proposals
After the company’s advertisement, underwriters submit their proposals describing their services, offering prices, share amount, as well as the time duration for the market offering.
Underwriter selection
The Company goes through the proposals and then chooses the underwriter and an underwriting agreement with terms is prepared.
Team formation
A team comprising of underwriters, lawyers, SEC experts, and Certified Public Accountants (CPA) is formed to lead the process.
Documentation
The primary document for IPO filing is the S-1 Registration Statement which is divided into two parts viz. the prospectus and the privately held filing information. This document also includes information regarding the expected filing date. It undergoes multiple revisions throughout the pre-IPO process.
Marketing & Updates
New stock of issuance is pre-marketed by the underwriters and executives to estimate the market demand for deciding the final offering price of the shares. Throughout the marketing process, underwriters revise the financial analysis based on market response. This might also include changing the issuance date or even the price of the IPO. The SEC as well as exchange listing requirements are well taken care of by the companies.
Board & Processes
A Board of Directors is formed to look after the financial and accounting information as per the audit requirements for quarterly reporting.
Issuance of Shares
The Company issues the shares on the pre-decided date. The primary shareholder issuance is received as cash and is recorded in the balance sheet as stakeholder’s equity.
Post-IPO
There are certain post-IPO provisions. The underwriters also have the opportunity to buy additional shares within a specified time duration.
The key objective of an IPO is to raise additional capital for a company. It also benefits the company through increased prestige and exposure amongst the public which may boost sales and profits. Moreover, IPO can help a company lower the cost of capital for both equity and debt.
Every year several companies start their journey as an IPO. India saw an IPO boom in 2021 with around 125 companies making their debut in the market.
Although the highest number of IPOs were registered in 2017 reaching a mark of 172, the capital raised was highest in 2021. These 125 companies raised around 18 billion USD in comparison to 10 billion USD by 170 companies in 2017.
Other than earning handsome returns, the companies listed in the IPO have also experienced strong gains in listings as well as an increased number of subscribers. Zomato and Tatva Chintan Pharma are an example of this.
But, what does it take for a company to be IPO-ready? In this section, we will discuss the factors that differentiate an IPO company from others.
The process to become IPO-ready is long and tedious. It isn’t so that a company thinks of it and makes an announcement the next day. A number of things have to be managed.
The process of getting IPO ready begins at least 12˗18 months before the actual announcement. Some of the major factors looked after during this time frame include:
Influential Board of Directors
When you are thinking of bringing your company to the public for funding, having a board comprised of members well recognized for their potential and decisions is always a good idea.
This plays a significant role in establishing your firm as a reputed and confident organization. This is why most companies focusing on getting IPO-ready look for admired experts from different sectors.
There are a number of examples in the market to prove this fact. For example, ixigo is an AI-based travel portal. Just sometime before the company filed for IPO they hired former IRCTC Chairman, Mahendra Pratap Mall as one of the board members.
Similarly, former HDFC MD, Aditya Puri joined API holdings, PharmEasy’s parent company, before their announcement of being an IPO contender.
Restructuring the Business
Internalrestructuring mightbe required by some businessesto put theirbest arm to work. However, just like the board, these decisions must also be taken well in advance before the IPO process begins.
For example, in Nuvoco Vistas, the cement arm of Nirma group, internal restructuring was undertaken before IPO. As a part of it, the Rajasthan cement unit was brought under the hold of the firm. The company had a 5000 crore IPO.
Physical or Digital
The experts claim that the coming time would make it mandatory for Indian businesses to work in both physical and digital ways. Taking this into caution, many deals are being made, where a digital business acquired a physical one and vice versa.
These deals are majorly done for scaling up, by filling in the gaps in the portfolio and strengthening different verticals of the company.
For example, Pharmeasy, an online pharmacy startup acquired a 66.1% stake in diagnostics chain thyrocare technologies, for Rs 4,546 crore, to diversify its business.
Experts believe that more such omnichannel transactions will follow in the coming time and such deals will soon become a part of pre-IPO requirements.
Executive Support
Another important but often ignored aspect of IPO is finance function. While most businesses focus on a board full of influential directors there is the least attention paid to the finance division.
The fact is that during the entire IPO process the company face a number of stumbling blocks. That is why they need a team who can back them up during their stresses.
Considering an experienced Chief Finance Officer (CFO) for the company is a great step to include in the IPO process. After going public, the CFO has to face challenges such as greater reporting, governance, regulatory, and audit standards.
Although not seen everywhere but the food delivery company Zomato, opted for a new CFO well before its IPO process. They promoted their Corporate Development Head, Akshant Goyal, to the position of CFO.
Businesses should also look for experienced individuals for the posts such as executives, company secretaries, etc.
Financial Transparency
Irrespective of business size or model, financial transparency forms an essential aspect of the IPO process. This is also a part of the equity strategy of the IPO-bound company.
Generally, financial statements for the past 3 years before the IPO announcement are considered optimum. Yet, experts believe that preparing financial statements and subjecting them to review by the board must begin well in advance.
In many cases, the lack of quality financial statements becomes the reason for missing the IPO timelines while other such reasons maybe not be SEBI ready.
For a startup or any business going public means more responsibility, financial discipline, planning as well as its execution.
There is a tough road ahead so before you finally decide to have IPO, the following checklist must be marked:
Growth
Investors will only be interested in spending their money on a healthy and thriving business. With growth, here we mean revenues. Growing revenue is an indicator that the company has more new customers, or old customers buying more products and that the customer churn rate is low.
Experts believe that revenue growth of 30% for the last two years will ensure that the company will be able to stand against its competitors in the market.
Capital
Although gathering resilient capital is the main reason for any business to opt for IPO but going public at a time when the business really needs capital can be the worst decision.
There should be enough cash in your balance sheet not just to attract investors but also to make you appear trustworthy. Just like you, investors are also here for the money. They want to see that soon their investment will be able to provide them with good returns.
Market Size
Large market size is an indicator of opportunity and potential. This means the company is able to expand without much hassle.
Although calculating the exact market size can be tricky, it is traditionally done by gauging the revenues of the legacy players. Also, factors like high growth, scaling up, etc., are indicators of good market size.
Competitors
Direct or indirect, having a track of competitors is important. The investors would only want to spend their money on a winning bet. The overall IPO opportunity as well as the total addressable market depends upon the competitors.
A more crowded market tends to receive a lower valuation. Unless there is a clear differentiation between the company under question and other competitors in the market, it is difficult to bag the deal.
A systematic, dominant company with an already large market is preferred by public investors.
This refers to the analysis per product revenue and cost. This helps in isolating the core cost of the business and helps gauge how the business would perform at maturity. It also analyses the long-term margins.
Leadership
Good leadership inspires the trust of investors. The CEO and CFO are the faces of the company. The reputed and recognized faces help attract public attention as well as investment.
So before thinking about IPO, think about the board of directors, executives, and finance in charge of your company.
Legal Compliance
The company should be a law-abiding entity and must have all the required licenses and other necessary formalities completed as per law. Not having any legal issues pending strengthens the trust of the investors.
Therefore, it is also essential to get rid of any vetting issues. Any vetting issues must be managed with utmost concern before the company is listed for IPO
It is always good to have a legal team to guide you through the process. They may also be helpful in the preparation of documentation submitted during the time of IPO processing, ensuring that they are as per the rules and regulations of the Security and Exchange Commission. Moreover, the company should be apt with the tax payment and other legal responsibilities.
Conclusion
We have shared with you an extensive checklist while trying to cover major aspects of the IPO process and the necessary details that must be taken care of before deciding to go for it. Still, the IPO process is complex and always requires expert advice.
It is essential to go through every detail carefully while making the final decision. The legal, as well as financial issues, must be handled as a priority without ignoring the other related functions.
FAQs
What are the benefits of buying an IPO?
There are several benefits of buying shares in an IPO such as:
High growth potential
High chance of big returns in the long term
More price-related transparency
Shareholder ownership authority
Small investments may provide great profit
How can I buy shares in an IPO?
Buying shares in an IPO is a complicated task. This is the common procedure for buying shares in an IPO:
Choose the right IPO
You must have a Demat account/trading account and PAN card with a broker that offers IPO access
Arrangement of Funds
Bidding of Shares
Get an allotment of shares
How can I find the best IPO?
To find the best IPO you need to do the following things:
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 Atlassian.
Imagine the following: It’s 2002, Sam Raimi’s Spider-Man is now in theatres, the term “Facebook” has no meaning, and smartphones are nothing more than futuristic gizmos. However, two recent college grads in South Wales, Australia, are probably chugging a few drinks, unwilling to dress up for a job they don’t want to get up for, and in the middle of it all, a startup concept is simmering. Mind you, back then, startups were hardly household names in the US, much less in Australia.
College friends turned business partners, Mike Cannon-Brookes and Scott Farquhar founded Atlassian, a company that the Sydney Morning Herald referred to as “a tech giant nobody understands” just a few years ago. It was founded in an aspect of the market that was scarce in Australia at the time, and to top it all off, what it produced wasn’t particularly ‘sellable,’ as some may put it.
At present, Atlassian has more than 10 offices worldwide, employs over 7,000 people, and serves more than 200,000 clients. Today, 83% of Fortune 500 firms use Atlassian’s products. Because its history defies what you may refer to as “regular,” we might like to think of Atlassian as the Forrest Gump of startups.
Due to the COVID-19 outbreak, many businesses now operate online. This is made feasible by digital remote work tools, and one of the most popular tools used by businesses is project management software. Atlassian is a company that has made remote working more convenient and interesting.
Here’s the success story of Atlassian that covers all about the company, the Startup Story and Growth, its Products, its Competitors, its Revenue, its Business and Revenue Model, and more, you can check ahead!
Atlassian is a technology company based in Australia that creates tools for software engineers, project managers, and other application development projects. The corporation has its legal residence in the UK, its international headquarters in Sydney, Australia, and its US headquarters in San Francisco.
For teams, Atlassian is a dominant producer of software for communication, development, and ticket management. They are extending the collaboration power with solutions including Jira, Jira Service Desk, Jira Ops, Confluence, Bitbucket, Trello, and more.
The organisation is on a journey to unlock the power of every team thanks to its authentic principles, incredible culture, and steady revenue progress. Jira, a project-tracking platform that supports software teams in addressing internal issues and evaluating progress, is the product for which Atlassian is best remembered. HipChat, which enables employees to talk anonymously and in groups, and Confluence, a platform that makes it simpler for teams to collaborate, share projects, and communicate across both mobile and desktop devices, and Stride, a new workplace communication tool developed by the corporation, enables teams to interact effectively and achieve their goals as a group, are some other products of Atlassian.
In addition to having over 2,000 plugins for developers, Atlassian has over 200,000 customers, 7,000+ employees globally, and a commitment to contributing 1% of company ownership and profit to charity.
Atlassian – Industry
In 2021, the project management software market generated US$5,359.6 million in sales. The project management software market is anticipated to reach $20,420.6 million in revenue by 2032, expanding at a CAGR of 13.1% between 2022 and 2032.
Nearly 35% of sales in the whole business process optimization industry are presently made by software for project management. Using a set of integrated tools like task management, collaboration tools, budget management, and document management that are highly customizable based on enterprise business requirements, project management software incorporates features like planning, working collaboratively, supervising, and delivering a project.
The market is anticipated to grow significantly in the upcoming years as businesses use automated project management software to carry out fundamental project management duties and functions automatically.
In addition, all businesses, regardless of their size, are constantly utilising the advantages of enterprise project management to enhance productivity, increased communication, raise project quality, and lower total budget estimates.
Mike Cannon-Brookes – Co-founder and Co-CEO of Atlassian
Mike Cannon-Brookes is the co-founder and co-CEO of Atlassian, a collaboration software startup that assists teams in organising, debating, and completing shared work.
Mike is a board member of Zoox and a technology investor outside of Atlassian, with interests in software, finance, agriculture, and energy. He is a board member of Room to Read and has a solid commitment to giving back. Mike, a fervent advocate for sustainable energy, played a key role in the “Fair Dinkum Power” movement as well as Australia acquiring the largest lithium-ion battery in the world.
He earned a Bachelor of Science in Business Information Technology from the University of New South Wales in Australia and works as an adjunct professor there in the School of Computer Science and Engineering.
Scott Farquhar- Co-founder and Co-CEO of Atlassian
The co-founder and co-CEO of Atlassian, Scott Farquhar, is a developer of collaboration tools that aid teams in planning, debating, and completing shared work. A corporate philanthropy initiative called Pledge 1%, which aims to make the community a significant shareholder in every firm, was launched in 2015 with Scott’s assistance.
Along with co-founder and co-CEO, Mike Cannon-Brookes, Scott received the Ernst & Young award for “Australian Entrepreneur of the Year” in 2006 as the youngest recipient ever. The Australian Financial Review recognised Scott and Mike Cannon-Brookes’s “Australian Business Person of the Year” in 2016, and Forbes included them on their list of “Global Game Changers” in 2017.
Outside of Atlassian, Scott co-founded Skip Capital. This private investment fund concentrates on rapidly expanding technology firms and has a special interest in the nexus between big data and health. Scott graduated from the Australian University of New South Wales with a BSc in Business Information Technology.
Atlassian – Startup Story
We are all aware of startups in the year 2020. If you don’t work for one or have a close buddy who does, you’re living under a rock. However, when university grads Mike Cannon-Brookes and Scott Farquhar established Atlassian in 2002, the reaction they got from other tempting offers wasn’t as common. And it was virtually unheard of in Australia, a nation that was reluctant to catch on to the digital revolution.
Like many strong friendships, Mike and Scott’s cooperation began in college. At the University of New South Wales in 1998, they were both enrolled on the same scholarship fund. They formed an intellectual and ambitious friendship and collaboration. They were required to join one of the Australian corporations funding the programme, much like the rest of the program’s students.
Instead, they developed Atlassian.
The majority of startups receive funding from cash that is sought out from outside investors. After all, venture capital now constitutes a separate business. Scott and Mike decided against going in that direction.
They borrowed money to pay for their endeavour; $10,000 of it was put on credit cards. The majority of people who incur large amounts of credit card debt do not emerge as ground-breaking billionaires, but they have demonstrated that they are not typical of most people, much as Atlassian has distinguished itself from the majority of businesses.
This also applies to the way they promoted their new product. Instead of having a large sales team, Atlassian relies on online sales. Going to developer meetings and buying them beer with an Atlassian sticker on the bottle was the first marketing tactic.
Their marketing approach depended on offering a high-quality product at a competitive price and positive customer reviews. And it succeeded. That stayed the case when Atlassian took off. Even now, Atlassian only spent 19% of revenue on sales and marketing, a much lower percentage than other software businesses in a comparable position.
The name Atlassian is derived from the Greek mythological figure Atlas, a titan destined to hold up the heavens or sky forever.
The Atlassian logo represents two folks giving each other a high-five, a mountain that is ready for teams to climb, or even the letter A made up of two pillars supporting one another.
Atlassian’s mission statement says, “Atlassian believes in the power of teamwork. Behind every great human achievement, there is a team. From medicine and space travel to disaster response and pizza deliveries, our products help teams all over the planet advance humanity through the power of software. Our mission is to help unleash the potential of every team.”
Atlassian – Products
The following Atlassian-owned and operated products are included in the Atlassian product family, together with any associated web applications and mobile applications:
Atlassian Cloud Products
Jira Software
Jira Service Management
Jira Work Management
Confluence
Bitbucket
Atlassian Access
Atlassian Cloud Apps
Trello
Trello Power-Ups
Statuspage
Halp
Jira Align
Opsgenie
Atlassian Server / Data Center Products
Jira Software
Jira Service Management
Jira Work Management
Confluence
Bitbucket
Analytics for Confluence app (Data Center)
Crowd
Automation for Jira (Server and Data Center) and Icons for Jira (Server)
Its solutions may be utilised in many ways across various business activities within the same company since Atlassian has a mass market business model with a multi-sided market. The majority of its consumer segments reflect specific business operations rather than sectors. The firm has benefited from this by creating software ecosystems for different business segments, each of which represents a unique business function.
IT (JIRA Software, IRA Service Desk, Confluence, HipChat) – The JIRA suite, which includes JIRA Software and JIRA Service Desk, enables IT, teams to swiftly respond to the needs of their organisation by maintaining effective feedback channels (through the Service Desk) and enabling efficient and managed workflows (through the Software).
Marketing (JIRA Core, Confluence, HipChat) – Marketing teams may handle data and marketing materials using the company’s project management tools, such as JIRA Core and Confluence.
Legal (JIRA Core, Confluence, HipChat) – JIRA Core enables legal teams to produce and manage legal materials, such as contracts and policies, and Confluence can be used to share these materials.
Finance (JIRA Core, Confluence, HipChat) – JIRA Core is used to handle financial activities including procurement and financial reporting by some of the top financial institutions in the world.
Software (JIRA Software, BitBucket, Bamboo, Confluence, HipChat) – JIRA Software, the company’s main product offering, is designed to speed up software development. A few of the company’s other products, such as Bamboo and Bitbucket, are especially geared toward programmers and software engineers.
Atlassian – Revenue Model
Direct online sales through Atlassian’s website are the company’s only sales channel. It spends only 15% to 20% of its income on sales and marketing and lacks a sales force. Contrast this with the typical average of over 100% of sales spent by IT companies on marketing expenses during the first few years following an IPO.
Atlassian’s primary method of customer assistance is self-service; the website offers a variety of self-help resources, such as product manuals and live training. Additionally, it relies on the community by maintaining an experts programme that allows independent expert partners to sign up to help Atlassian clients while promoting their goods or services, as well as by providing a community Q&A forum where users can post questions that can be answered by other users or by Atlassian’s staff.
For individualised help, Atlassian provides enterprise support services that charge a fee and enable technical account management through direct contact with top engineers within the business.
The development and upkeep of an integrated platform that clients may utilise for a range of business operations is Atlassian’s primary activity.
The founders haven’t become less grounded as a result of their success. Within the first four years of operation, the Atlassian Foundation was established along with a commitment to contribute 1% of business profits, employee time, and stock to charitable organizations.
Mike, the founder, has personally donated USD 350 million to groups working to combat climate change. He aspires to be more than just a successful philanthropist and is convinced that Australian businesses must put sustainability at the forefront of their strategies going forward. Given how quickly infrastructures are developing, he believes that those with the power to bring about meaningful change ought to acknowledge their obligation and seize control before it’s too late.
Human relationships have always been the most important thing to the founders. What their brand initially set out to be gradually evolved into an image with certain ideals at its heart that was presented during a meeting in the early days of the firm.
The notion of a community emerged from the principles that guided Atlassian’s gradual expansion. The business turned into a community-powered engine and became incredibly people-centric.
Stephanie, the Head of Global Community at Atlassian said in an interview, “If you don’t invest in things, you can’t expect them to do well. The reason that we’re successful now is that we put our money where our mouth is, and there’s actually an investment being made by the company.”
FAQs
What does Atlassian do?
Atlassian develops software that helps teams to work together more efficiently. It provides collaboration, development, and issue-tracking software to teams.
Who founded Atlassian?
Atlassian was founded in the year 2002 by Mike Cannon-Brookes and Scott Farquhar.
Is Atlassian a public company?
Atlassian went public in the year 2015 and is listed on NASDAQ as TEAM.
Is Jira owned by Atlassian?
Jira is an issue-tracking product, developed by Atlassian. It allows you to plan, track, and manage your agile and software development projects.
Business success requires ambition, dedication and a lot of perseverance. The main ingredient, however, is money which ultimately makes a business sustainable. Funding a startup business is easier than people believe. This is mainly due to the many misconceptions that float around about what funding really means for a business and how it can be sourced. The reality is that what many entrepreneurs believe to be sound logic, may actually be harmful and hurtful to their businesses.
Funding refers to the money required to start and run a business. It is a financial investment in a company for product development, manufacturing, expansion, sales & marketing, office spaces and inventory. It can come from a variety of sources and is used for a business from the ideation stage to a fully functional and profitable entity.
Major Reasons for Startups’ Failure Worldwide in 2021
Depending on Existing Network
While the existing network of friends and family and a few professional connects might be enough to raise the initial seed capital to launch a business, it is by no means enough once the business gets off the ground and begins to grow. Fundraising is an enormous undertaking and an entrepreneur needs as many connections with investors as possible. It is important, therefore, to invest in networking to expand the connection pool.
Not Investing in Creating Professional Marketing Collateral
Investors receive thousands of unsolicited business plans annually, requesting funding. A company looking to interest investors in a round of funding must effectively and succinctly be able to convey the value that sets the business apart through thoughtfully conceived marketing material. A business requires an attractive marketing campaign to receive good investors.
Underestimating the Timeline of the Funding
The process of finding the right investors and going through the due diligence process can take up to a year or even more. Hence, an entrepreneur looking for funding must take into account at least 12 months before the funding goals are fulfilled. This requires diligent planning of business operations.
Focusing Exclusively on Partnering
The funding route may make it necessary to offer equity in the business to investors. New entrepreneurs wrongly assume this move to be an effort of a takeover. This makes them defensive and offer only an asset partnership to investors. This is a counter-intuitive move as it limits the number of investors to receive funding.
The first thing to do with investors is to open a line of communication. Hence, ‘when’ becomes more important than ‘what’ to say. It is prudent to arrive at the crux of the issue as soon as possible. If the investors need to see more data, they will ask for it. It is necessary, at the foremost, to show them the product or service that requires funding.
Being in Stealth Mode
The fear that the idea can be stolen can prevent the business from showcasing the invention in the first place. To grab the interest of the investors, the product needs to be showcased to highlight the value proposition in investing in the business.
In Due Diligence With a Venture Capitalist
Fundraising is a numbers game and most companies fail the due diligence processes and do not succeed in procuring funding. This is hardly the reason, though, to stop looking for investors or give up. This should, in fact, lead to double efforts towards funding.
Exclusive Focus on One Category of Investor
It isn’t wise to be selective before having options. The entrepreneur must scour the market, understand all the options for fundraising and cast a wide net to attract investors.
Not Interested in Speaking With the Associate-Level Staff
The associate-level staff are, essentially, the gatekeepers of the industry. It is wise to understand that most executives act based on the reports of the associate-level staff. It is in the entrepreneur’s interest to keep up a good relationship and healthy communication with them as they could be the pathway for the funding.
Issues Around Focus and Organisation
The process of fundraising is overwhelming. Colour-coded spreadsheets aren’t enough to organise and present all the information. The business would be wise to invest a small sum in the right cloud infrastructure to drive its campaign.
While it is true that banks are great non-equity partners, they rarely take the risk of investing with a startup without collateral or personal guarantee. They have very strict covenants with a monthly payment guarantee.
Conclusion
Contrary to popular perception, receiving funding for the business is not a nerve-racking experience. It does, however, call for the entrepreneur to thoroughly evaluate the various sources of funding to reach the right decision. Eventually, the goal of the business is not merely to raise funds. It is about utilising those funds to the maximum effect that causes the business to grow and turn profitable.
FAQs
What percentage of venture capital investments fail?
It is estimated that around 25-30% of venture capital investments fail, as per the National Venture Capital Association.
What are the reasons for startups’ failure?
There are various reasons that lead to the failure of startups. Some prominent reasons include wrong partnerships, inability to raise funds at the right time, unprofitable marketing efforts, lack of research, etc.
What are some misconceptions about getting funding?
Some of the basic misconceptions about getting funding are:
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 Raymond.
India as a diverse land has a lot of colorful trends when it comes to textiles and apparel. Of course, the collapse of all hype at the dawn of the twentieth century brought a more sensible environment and a more solid view of the fashion industry.
As far as we know, the Indian Textile industry is a significant contributor to the country’s economy. The industry is providing one of the most fundamental needs of the community and has importance; preserving ongoing development for raising the quality of life. It has established itself as a self-sufficient industry that adds value at every stage of the supply chain right from the production of raw materials to the delivery of finished goods.
Raymond Group is an Indian textile and fashion industry headquartered in Mumbai, India. Raymond was founded in 1925 by Albert Raymond. The group makes suiting material and has a 31 million meter capacity for wool and wool-blend fabrics.
Check out a lot more about Raymond, its startup story, its founders and team, business and revenue growth, the challenges faced, and a lot more relevant information.
Incorporated in 1925, the Raymond Group is a diversified organization with most of its business activities in the textile and apparel industries. It also operates in a number of other industries, including FMCG, Real Estate, Engineering, and Prophylactics, in both domestic and foreign markets.
With the support of more than a billion customers, Raymond is renowned for providing its customers with top-notch products for the previous nine decades.
The company is the owner of clothing brands including Raymond, Raymond Premium Apparel, Raymond Made to Measure, Ethnix, Park Avenue, Park Avenue Woman, ColorPlus, Kamasutra, and Parx. All of the brands are sold through “The Raymond Shop” (TRS), which has a network of more than 700 retail locations in India and abroad in more than 200 cities. The brand also has its presence in tier IV & V cities.
Woolen textiles, Cotton, Wool blends, Linen, and Denim are just a few of the luxurious shirting and suiting fabrics that Raymond has to offer.
After entering the clothing, textile, and sexual wellness segment, in 1949, Raymond Ltd. made a foray into the engineering industry. With a market share of more than 25% of worldwide steel file production capacity in 2020 and a presence in more than 55 countries, JK Files and Engineering Ltd. holds the top spot as the industry leader. It was 2019 that saw the announcement of Raymond’s entry into the real estate industry as Raymond Realty with the theme of ‘Go Beyond’. The new business would invest 250 crores (about $36 million) to create mid-range and luxury housing units on 20 acres of land in Thane, a rising suburb of Mumbai.
Raymond has also strived to do something for society. ‘Beyond business’, is Raymond’s humanitarian activities that are designed to foster inclusive growth for the socially underprivileged.
JK Trust Gram Vikas Yojana – improve the quality of life in rural areas through a Cattle Breed Improvement Programme (CBIP)
JK Bovagenix – On July 20, 2016, a groundbreaking breeding program using in-vitro fertilization to produce selected indigenous cattle breeds went into effect.
Skilled Tailoring Insititute – to train unemployed women
Raymond Tailoring Hubs for skill development – located in Mumbai, Delhi, Bihta, Jamshedpur, Jaipur, Nashik, Villupuram, Ranchi, and Bengaluru.
Singhania Schools
Raymond – Industry
As mentioned earlier, the Indian Textile industry contributes a major chunk to the country’s economy. This sector is also one of the oldest industries in the Indian economy. It is reported that the Indian textiles market is expected to be worth more than $209 billion by 2029.
Raymond – Leadership
Gautam Vijaypat Singhania is the Managing director and Chairman of the Raymond Group.
Gautam Vijaypat Singhania
Born to an industrialist family, whose parents are Vijaypat Singhania and Ashabai Singhania, Gautam Vijaypat Singhania is the Chairman and Managing Director of the Raymond Group. He attended Cathedral and John Connon Schools as well as St. Mary’s School in Mumbai. In 1986, Gautam Singhania joined the JK Group of businesses owned by the Singhania family. Later, he joined the Raymond Group, where he rose through the ranks to become chairman in September 2000, and managing director in July 1999.
Nawaz Modi Singhania, a Parsi, is the spouse of Gautam Singhania. They have a daughter called Niharika.
According to a family agreement, Gautam Singhania has been given a 27% share of the business. A few years after taking over, he turned the business around and made it become a big success.
Raymond – Mission and Vision
Raymond likes to do business with one vision, that is, “Trust, Quality, and Excellence”
Raymond – Name, Logo, and Tagline
As we all are aware, the tagline of Raymond is, “The Complete Man”
The brand name was derived from Albert Raymond and Abraham Jacob Raymond, who were members of the Board of Directors of a Jewish industrialist company during the 1920s known as E.D Sassoon and Co. Formerly it was known as ‘The Raymond Woollen Mills” and then it was changed to just ‘Raymond’.
Raymond – Startup Story
The story of the world’s largest producer of suiting fabric, Raymond goes back to the year 1925. An elderly man by the name of Wadia had the foresight to establish a modest woolen mill in the backward region of Thane, Maharashtra, spurred on by the burgeoning need for apparel for soldiers in the Indian Defense Force. However, Wadia couldn’t manage the woolen mill and it was taken over by E.D Sassoon and Co. It was them, who renamed the company, ‘The Raymond Woollen Mills’
After some years, in 1944, Lala Kailashpat Singhania took over Raymond when he saw the potential in the brand for the coming future. His family, the Singhanias moved to Farrukhabad from the little village of Singhana in Shekhawati, one of the desert towns of northeast Rajasthan, in search of better opportunities. They had their own company called JK Cotton Spinning & Weaving mills Co., wherein they produced high-quality cotton clothes using only Indian raw materials, labor, and other methods to compete against England.
Post-independence, Kailashpat took Raymond to newer heights and put up a new manufacturing unit JK Files in 1950 to manufacture indigenous engineering files. In 1958, Raymond opened its first exclusive showroom in King’s corner, Ballard Estate in Mumbai.
In 1986, Park Avenue was launched by Raymond, a collection of stylish wardrobes for men.
Raymond opened its first international showroom in Oman in 1990. After one year, the brand launched a premium condom brand called, ‘Kamasutra’. With the founding of Raymond Aviation in 1996, the group entered the aviation industry. Corporate travelers in India can use the air charter services offered by Raymond Aviation.
In order to provide customers with a variety of semi-formal and casual clothing, the luxury casual wear brand Parx was introduced in 1999. 2008 saw the introduction of ready-to-wear clothing under the Raymond brand, which is currently known as Raymond Ready to Wear.
In 2016, the company launched a kind of fabric, which the company referred to as the Smartest fabric in the World – it was known as Technosmart. In the same year, Raymond opened a new office in Dubai. With 900 outlets in 500+ Indian towns and cities as of 2018, Raymond had experienced its fastest-ever retail expansion.
To combat COVID, Raymond came up with ‘Virasafe’, a highly effective anti-viral fabric. To produce PPE suits during the outbreak, the brand converted its garment plants.
Raymond – Business model
Raymond’s business involves a number of business models because it deals with several types of business including real estate and aviation. However, it does have a B2B business model as it manufactures one of the finest cotton and pure linen fabrics.
Here’s taking a look at the various businesses by Raymond Group:
Suit Business
It is commendable that in India, the woolen suiting fabric industry is dominated by Raymond, one of the largest vertically and horizontally merged producers of worsted suiting fabric in the world, with a market share of over 60%. This business has manufacturing plants at Vapi (Gujarat), Chhindwara (Madhya Pradesh), and Jalgaon (Maharashtra) with a manufacturing capacity of 38 million meters.
Garment Business
Raymond has three wholly-owned subsidiaries – Silver Spark Apparel Ltd (Suits), EverBlue Apparel Ltd. (Jeanswear), and Celebrations Apparel Ltd. (Shirts) for its garment business. The only Indian company having the know-how to create Full Canvas Suits is Silver Spark Apparel Ltd. The company’s products such as jeans, trousers, shirts, and suits are all exported to the USA, Europe, and Japan.
Shirt Business
Raymond is also engaged in the manufacturing of shirt fabrics, which are very renowned and the finest in India. At its advanced manufacturing facility in Kolhapur (Maharashtra), the operation has a capacity of 26 million meters and manufactures bottom-weight textiles and high-end cotton and linen shirts for well-known national and international brands.
Retail Business
Raymond opened its first-ever retail showroom in Mumbai at King’s Corner in 1958. Since 1958, the brand has been expanding aggressively with its various collections. Its retail presence makes up for the brand’s success. With over 2 million square feet of retail space split throughout its 1100+ locations in more than 380+ cities and towns, Raymond now has an unstoppable retail presence and is steadily expanding.
The brand has a portfolio of four Power Brands, including Raymond Ready-to-Wear, Park Avenue, Color Plus, and Parx, which makes them currently as of one of the top three branded clothing players in the menswear market.
Across all channels, including 257 Exclusive Brand Outlets (EBOs), 3,300 Multi Brand Outlets (MBOs) (via distributor network), 800 Large Format Store (LFS) chains, and top internet portals, there has been a tremendous increase in recent years.
Raymond created raymondnext.com, a one-stop fashion shop for all the brands under the Raymond umbrella, as its entry into the e-commerce market.
Denim Business
One of the first companies to introduce specialty ring denim in India is Raymond UCO Denim (a joint venture with UCO NV of Europe). Along with serving domestic markets, the company also serves consumers in the Americas, Europe, and Asia. The company has fabric manufacturing plants in Yavatmal, Maharashtra, and Sibiu, Romania, with a combined annual production capacity of 47 million meters. Raymond UCO Denim satisfies the expanding expectations of fashion-conscious consumers and has earned the recognition of top brands in both home and foreign markets.
Tools & Hardware Business
The company entered into the tools and hardware business in 1949. This industry sector is involved in the production, marketing, and distribution of hand tools, power tool machines, and accessories for power tool machines as well as the sale and distribution of precision-engineered parts for tools and hardware like steel files and drills. As of 2020, JK Files and Engineering Ltd. had the largest installed steel file manufacturing capacity, accounting for nearly 25% of the global capacity. JK Files & Engineering Ltd. boasts state-of-the-art production facilities in India that are ISO 9000-2008 certified and have a robust manufacturing capacity of 7.44 million dozen files and 13.2 million pieces of drills annually. Raymond has a market share of more than 60% by sales volume in Fiscal 2021 and is also the market leader in India’s files segment. It is also well-represented in Latin America, Asia, and Africa.
FMCG Business
Raymond is involved in the manufacturing of consumer goods through its associate company called, Raymond Consumer Care Private Limited. Raymond is steadily growing its presence in the category with leading brands like Park Avenue and KamaSutra in the market today.
Automotive Business
By acquiring a controlling interest in Ring Plus Aqua Ltd, a renowned Ring Gear & Flexplate manufacturer in India, Raymond entered the automotive components market. Ring Plus Aqua Ltd., a 1984 incorporation, has a close relationship with the global automotive industry thanks to its manufacturing facility for ring gears, water pump bearings, and flexplates.
Through its warehouses in Canada, the United States, and Germany, Ring Plus Aqua Ltd. also meets the JIT (Just-in-time) needs of its clients. Around 8.2 million Ring Gears, 3.9 million Water Pump Bearings, and 0.62 million Flexplates can each be produced annually by Ring Plus Aqua Ltd.
Real Estate Business
With Raymond Realty, the company entered into the Real Estate space. Each project under Raymond Realty is built on the tenet of “Go Beyond” and attempts to redefine every customer’s expectation. The company has an exclusive website for its realty business – www.raymondrealty.in
Some of the popular brands and services by Raymond Group are:
ColorPlus
Ethnix
Raymond
Raymond Fine Fabrics
Park Avenue
The Raymond Shop
SuperDrive
Kamasutra
Raymond Custom Tailoring
Parx
Raymond – Revenue Model
Raymond’s revenue for the fiscal year 2022 was Rs 50,000 crores. The largest contributors to the company’s revenue were branded clothing and textiles. However, the exact figures haven’t been published. In the fiscal year 2021, Raymond India reported revenue of more than 36 billion Indian rupees.
Raymond – Challenges Faced
As the company is mostly in the manufacturing space of finest fabrics and gets its revenue majorly from the textile business, it fears that the millennials might move away from the concept of textiles and fabrics. Today’s youth are focused on buying ready-made garments and don’t wish to invest in textiles or buy fabrics.
This is one of the biggest challenges the brand is facing and to keep up with the trends, it needs to come up with innovations to maintain its legacy.
Raymond – Mergers and Acquisitions
Raymond acquired J. K. Ansell Ltd on Aug 17, 2017. The rest of the details are undisclosed.
Raymond – Online and Social Media Presence
Raymond has a powerful online and social media presence. The brand has pages on almost all popular social media platforms.
Platform
Followers
Facebook Page
1,357K followers
Instagram Page
220K followers
Twitter Page
10.6K followers
LinkedIn Page
170K followers
Raymond – Advertisements and Social Media Campaigns
Time and again, Raymond has always come up with the best and heart-touching campaigns throughout its 90-plus years of journey. With its motto, ‘The Complete Man’ – Raymond has always shown the characters of a well-read man, a perfect father, an honest friend, and an obedient son, which highlights the true emotions a man can have in him. While the list of campaigns made by Raymond is long, the most recent one is Raymond’s Look Good Feel Good campaign.
This campaign was launched in June, where the brand highlights the joy of giving your old clothes. The campaign is done in association with Goonj, a non-profit organization that undertakes humanitarian aid. The brand asks its viewers to donate clothes and in exchange for their old garments, they will receive free trouser stitching from July 1st onwards.
Another campaign by the brand was rolled out in 2019 called #TailorYourStyle. The ad speaks about the fine tailoring done by Raymond which shows its rich heritage and aesthetic embodiment. The campaign was designed by Grey India. It mostly highlights the customization that customers can get as per their needs.
Raymond – Awards and Achievements
Here’s showing the list of all the major awards won by Raymond:
Raymond ‘The Complete Man’ TV commercial (husband-baby) won the “National Laadli Media & Advertising Award for Gender Sensitivity 2013-14”
Raymond has been placed at the top of the ‘Textile and Garment’ segment as the ‘Most Admired Companies in India 2013’ by Fortune magazine
Park Avenue has won the Best Design Concept of the Year Award for Innovative AUTOFIT Concept at Images Fashion Awards 2015.
Raymond has won the ‘Best Retail Store Design for Fashion Apparel brand” for Raymond Ready-to-wear store, Viviana Mall, Thane from Visual Merchandising & Retail Design Awards 2015.
Raymond has won the ‘Best Window Display 2015″ for the Colors Of Wool campaign from Visual Merchandising & Retail Design Awards 2015.
ColorPlus awarded for ‘Impactful Retail Design and Visual Merchandising’ – Asia Retail Congress 2013
EPC (Engineering Export Promotion Council) India “Export Excellence Award 2011-2012” for Hand Tools Exports in the category of Large Enterprise
Park Avenue Beer Shampoo has won a bronze at the WARC Strategy Awards 2014.
11th Realty Plus Excellence Awards – WESTMid Segment Project of the Year (2019)
Hindustan Times Real Estate Titans Awards 2020
FAQs
Which company owns Raymond?
Raymond group, a global conglomerate owns Raymond ltd.
Who is the Chairman of Raymond?
Gautam Hari Singhania is the chairman and MD of Raymond group.
How many brands does Raymond own?
Raymond owns 4 brands namely Park Avenue, Parx, Color Plus along with Raymond Ready to wear.
Who are its competitors of Raymond in India?
Raymond’s competitors in India are Siyaram’s & Grasim.
A print-on-demand service that is designed to allow business owners to make custom designs to place on t-shirts, hoodies, and a few other products is what defines Printify. The company was founded by James Berdigans, Artis Kehris and Gatis Dukurs and operates as a B2B marketplace connecting manufacturers with eCommerce stores. Printify eases the way for store owners to focus on building their brands by taking care of mundane tasks like fulfilling orders – including billing, manufacturing requests and shipping.
Ecommerce business owners can print their designs, logos, art, or photos on clothes, accessories, stationery, jewellery, home décor options, etc., using Printify and then sell them directly through their own online marketplaces.
Printify attracted a USD 3 million investment in 2019 from Bling Capital, which was founded by Ben Ling, a former general partner at Khosla Ventures. Ling said – “Printify is perfectly positioned to enable the new trend of micro and boutique brands. Consumers and SMBs alike can benefit from Printify’s high-quality, low-cost and fast printing platform — and create their own micro-brands.”
Global Photo Printing and Merchandising Market Forecast
How Printify Works?
Printify’s process can be defined in five steps:
Choice of Products
The eCommerce business can choose the types of products they wish to sell. It could range from coffee mugs, phone cases, t-shirts, etc.
Creating a Design
Desired designs can be created using Printify’s design tools, which can then be uploaded – be it images, logos, or other designs. Once that is done, it is a simple matter of adjusting the design onto the product, correcting its size and placement on the product.
Deciding the Provider
This step requires a little research as there are multiple suppliers. However, most of them send samples for proof.
Placing the Product on an Ecommerce Site
All the entrepreneur has to do is place the product on their website. Other commercial marketplace integrations can be used to hasten the process.
A Printify store only generates an income if consumers are buying from it. There are a few steps that entrepreneurs can take to boost their income on Printify:
Create a Website
This option requires some amount of monetary investment, time, and a few other resources. It allows the entrepreneur to create their own space and organize it their way. It also allows the entrepreneur to have full control over how the consumer views the business and its product offerings.
Expand Ecommerce Footprint
Limiting the business and its products to exposure only from a single eCommerce site is counter-productive to its expansion and growth. Printify offers integrations with WooCommerce, eBay, Shopify, Wix, Etsy, and more that broadens horizons and exposure. Each avenue opens the gate to a whole new demographic of potential customers.
Expand Ecommerce Footprint with Printify’s Integrations
Develop a Social Media Presence
This goes without saying. The large and ready audience present on social media sites is an ocean of opportunity. This is an effective tool of communication that reaches the audience in a very short space of time.
Monetize YouTube
YouTube is, without a doubt, one of the most popular and accessible video services globally. It is a great platform that is easy to use to organically introduce a Printify product. A Printify gear can be worn during the video that resonates with the audience without specifically talking about it. It also multiplies the possibility of a sale or an affiliation. All this is in addition to becoming a YouTube partner by fulfilling certain conditions and being accepted by the appropriate officiating boards.
Begin Blogging
Blogging is a mainstream way to generate public awareness and interest in a Printify store. They are popular because of their ability to gain attention on the central point of the blog, listing higher due to SEO, helping the audience to connect with the store as well as generating an income through affiliate marketing.
Mobilize Tiktok
The demographic that this video creator app appeals to is young Gen-Zs. It is a good idea to make a video series compatible with a personal skill or idea. It is good for getting attention from a large audience, which can then be guided to a landing page. Another idea is to feature video content from store releases of Printify products and use them in some sort of a story, plot, or theme. The idea is to engage the audience. However, the app is unavailable in India. But users outside the country can definitely utilize the platform to gain maximum value from it.
Online Coaching
One of the easiest things to do is to share the knowledge gained through the skills acquired through Printify. The experience and the exposure gained can be utilized to upskill other budding Printify users. This can also lead to a new idea as well.
Designing Unique Graphics
If the entrepreneur is equipped with an educational degree in artistic fields, as is a Printify Store owner, this skill can be utilized to create personal designs that are unique and different, that are engaging and have an emotional connect to people. There are a few programs that can be used to create these designs.
Become an Affiliate for Printify
Simply put, it is a process of introducing Printify to customers. If they choose to begin their own Printify store, the affiliate earns a certain percentage from their annual sales. It is essentially monetizing a zero-income aspect.
Write or Record Merchandise Reviews
This involves giving an expert opinion on a particular merchandise-related subject. Customers are likely to purchase a product based on the review of a Printify store owner who demonstrates credibility and subject authority.
Run a Contest
This contest can be time bound for designing a logo, suggesting an original inspirational quote or a host of other ideas that help in boosting business. The winner’s prizes can include merchandise from the store.
Conclusion
The contemporary eCommerce ecosystem thrives on innovative thinking and a strong desire for success. As effective as these methods are, the more inventive the store owner gets to attract customers, the better are the chances for business expansion and growth.
FAQs
Do I need to pay for using Printify?
No, you do not have to pay anything to use Printify’s platform. You can simply integrate your sales channel and publish as many designs as you want in your store.
What websites does Printify work with?
Printify offers integrations with various websites. These are:
Etsy
eBay
Shopify
BigCommerce
WooCommerce
PrestaShop
Can you make money off Printify?
One of the best ways to make money off Printify is through the process of introducing Printify to customers. If they choose to begin their own Printify store, the affiliate earns a certain percentage from their annual sales. In this way, by helping others, you will be able to earn some profits out of their total sales.
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 Metro Footwear.
It is kind of hard to imagine a world without giving any sort of protection to our feet. In modern times, if we think of shoes and all other footwear, there are myriad options to choose from depending upon the occasion we are attending.
It is a bit tough to determine the exact period when shoes were invented. Some historians suggest that shoes were invented some 40,000 thousand years ago. Since then, numerous styles and designs have evolved in shoes, making them one of the largest industries worldwide. The structure of shoes have been more or less remained the same, but it is the features, materials, and methods have changed over time.
Metro, the brand is that a synonym with footwear brand in India is one of the biggest multi-brand footwear chains in the country. The brand was founded by Malik Tejani in 1977, with its main office located in Mumbai.
Metro brands have showrooms that are present all over India. It is located in almost 147 cities in 30 states and Union Territories. Presently, it serves India only. Metro brands were previously known as Metro Shoes.
Here in this article, we have piled up all the relevant information related to the company Metro. You can discover about Metro’s startup story, its founders and team, what is their business strategy, the revenue growth of Metro, and the challenges faced by them.
Metro Brands, the company’s present reputation, was once called Metro Shoes. The brand, which was incorporated in 1977 by Malik Tejani, today has become one of the largest and most loved Indian footwear and accessories brands in the country.
Metro brands their specialties in different shoes, footwear accessories, shoe care, foot care, bags, and other related products. The company takes pride as it operates in 147 cities across 30 Indian states and Union Territories. As of 2021, Metro has around 644 stores in the country.
It was during 1955, that the brand was said to have opened its first-ever store in Mumbai, and since then, the brand never looked back and decided to be a one-stop shop for the footwear requirements like socks, sandals, shoe polishing liquid, and many other accessories in the footwear category. It offers shoewear for men, women, unisex, kids, and every walk of life for every type of occasion, including casual, formal, or festive events.
Metro Brands has one subsidiary named – Metmill Footwear Private Limited. The company has a joint venture – M.V. Shoe Care Private Limited.
Metro – Industry
As per statistics, the footwear industry constitutes a significant part of the leather industry. Having said that, India comes second after China as the largest global producer of footwear. It accounts for 13% of the global footwear market. It is predicted that the footwear market is going to witness a CAGR of 3.62% during 2022-2027.
Metro – Founders and Team
The founder of Metro Shoes is Malik Tejani, who laid the foundation stone for Metro shoes in 1955. Presently, Rafique Malik is the Chairman of Metro Brands Ltd.
Malik Tejani
Malik Tejani is the man behind the brand we know, Metro. He used to sell shoes in a store in Mumbai when India was under British governance. Due to the partition crisis after India got independence, Malik had to leave the store where he used to work, but decided to take over that store by taking a loan from a well-wisher, and that’s how he started the brand.
Rafique Malik
Rafique Malik is the Chairman of Metro Brands Ltd. After Malik Tejani, he took over the company by pushing his father’s idea across the country, hoping to carve a niche in India’s aspirational but inexpensive fashion footwear market. He is a Harvard graduate, under his leadership, the brand was expanded from a single store to set up in multiple locations across the entire country. He made the brand one of the leading providers of stylish footwear collections in the country today. Rafique Malik is considered the maestro of Indian footwear retail, with over 45 years of retail experience. His net worth is $2 billion as per Forbes.
Rafique Malik quotes, “A brand for a company is like a reputation for a person. You earn a reputation by trying to do hard things well.”
Farah Malik Bhanji
The granddaughter of Malik Tejani runs Metro Brands Ltd. as the Managing Director. She holds 20 years of professional experience which gives her the ability to operate the brand as per today’s expectations. Before, playing a pivotal role in Metro Brands Ltd. Farah started her career in marketing, and since then, she has been developing personal relationships with other popular foreign brands like Crocs, Skechers, and Clarks.####
Metro – Startup Story
Metro, was started by Malik Tejani by taking over a store in Grant Road in Mumbai, after which the company was officially incorporated in 1977. Ever since its inception, Metro shoes have been popular among many Indians.
In 2000, Metro launched its first branded outlet called, ‘Mochi’. It is a one-stop store, where the brand sells trendy footwear needs, including shoes, purses, belts, socks, mobile cases, foot care, and shoe care items. Mochi shops are present in over 150 outlets in 50+ cities.
After nine years, Metro Brands launched the ‘Walkway’ collection, which was previously known as ‘More Shoes For Less’. This brand by Metro is a value-for-money price shoe collection. It offers affordable shoes for men, women, and kids for everyday use.
The following year, Metro launched its e-commerce platform, www.metroshoes.com. The company also made progress in targeting 100 stores. In 2015, Metro tied up with an American shoe brand called ‘Crocs.
The company reached a watershed moment when it announced plans to open over 550 outlets across India by 2020.
Metro collaborated with another brand named ‘Fitflop’ last year, with great success. The firm became a public company in 2022.
Metro – Mission and Vision
Metro’s vision speaks out loud as, “To be India’s largest specialty footwear and accessories retailer”
The brand has five values, these are:
Strong Customer Relationship and Service
Passion for Perfection
Respect and Empowerment of Individuals
Differentiation through Constant Innovation
Integrity
Metro- Name, Logo, and Tagline
Malik Tejani took inspiration from a cinema hall in Mumbai, whose name was Metro Cinema.
Recently, Metro has rolled out a new tagline, and that is “Good Vibes Only”. The other tagline of Metro, which is quite common is, “Wear What You Are”
Metro – Business Model
Metro is said to have an asset-light model that teams with third-party manufacturers. The brand operates its business through vendor engagements and long-term lease arrangements.
Its retail operations are carried out through offline mode, that is through different stores and outlets and other distributors along with online marketing channels. Its marketing policy follows the rules of the company-owned and company-operated (COCO) model through its Multi-Brand Outlets (MBOs) and other Exclusive Brand Outlets (EBOs).
Metro’s subsidiary company, MetMill also distributes third-party brand products and retail merchandise through franchisees.
In addition to Metro’s physical spots, it targets customers by offering an omnichannel experience via its websites, multiple marketplaces, and social media channels. Most of Metro’s brands are listed and sold on B2C and B2B marketplaces.
The following is the list of brands under Metro Brands Ltd.:
Metro
Established as a contemporary Indian footwear brand that caters to every Indian’s taste as per regional preferences. The brand has over 219 MBO format shoes all over the country
Mochi
Mochi Showroom
Mochi is Metro’s first brand under the MBO format, which was established in 2000. The brand’s main target audience is young people while also targetting their entire families. Mochi offers a wide range of footwear for the casual, formal, party, festive events, and even weddings. Metro has opened around 145 Mochi stores across India.
Walkway
Walkway was launched with the motive to offer value-for-money shoes. The shoes are affordable and cater to the entire family including men, women, and kids. Given this brand’s economical customer base, Metro also sells products in Shop-in-Shop (SIS) at large department shops.
Crocs
The globally-recognized American brand Crocs Inc. engages in selling its clog-styled shoes. The brand offers flips, sandals, wedges, sliders, and other types that meet the comfort need of an entire family. Croslite is a material that is patented, molded footwear technology that delivers each pair of shoes soft, lightweight, and odor-resistant in the great majority of Crocs shoes.
Metro has a tenure with Crocs of 18 years under its EBOs format. In the agreement, after the initial three-year term, there is automatic renewal for five subsequent three-year terms. The Crocs Agreement allows Metro to use the trademarks and other intellectual property associated with the Crocs brand for the sole purpose of retailing Crocs items in India.
FitFlop
Fitflop was introduced for all-day wearing and designed in a manner to offer both look and comfort. Metro now sells Fitflop goods under its MBOs format. It holds the exclusive rights to sell Fitflop goods in offline mode as well as online channels.
daVinchi
Davinchi is designed to offer a unique and distinctive style for the youth of today.
Cheemo
Cheemo is the handicraft brand by Metro. Cheemo offers various ethnic handbags and matching footwear, which are made by Indian artisans. The brand is launched with the purpose to bring out the best of Indian artisans that depicts exclusivity and elegant style statements.
Metro- Revenue Model
Metro Brands has reported generating a revenue of Rs 507.95 crores in 2022. In addition to this, there are reports that Metro had a 54.63% increase in consolidated net profit to Rs 100.85 crore for the third quarter that ended in December 2021.
Some reports show that Metro derives about 59% of its sales from Metro stores, followed by 33% from Mochi showrooms, 5% from Walkway, and the rest 3% from Crocs stores.
Controversy faced by Metro
Disputes are part of any business since day one. Metro brands have also faced some controversies. In 1996, Rafique Malik, Chairman of Metro Brands got caught in a controversy. He was among several businesspeople and politicians arrested by Mumbai Police on charges of theft of concessionary funds provided to cobblers.
As of now, the case is still under trial and no decision has been concluded yet.
Metro – Funding, and Investors
Newly, reports have come in that Metro Brands has issued 82.05 lakh equity shares at Rs 500 each to anchor investors, bringing the entire transaction value to Rs 410.25 crore. This means that Metro has raised a total of Rs 410.25 crore funds from anchor investors in IPO.
Some of the anchor investors include Societe Generale, Goldman Sachs, Abu Dhabi Investment Authority, HDFC Life Insurance Company, SBI Life Insurance Co Ltd, Tata AIA Life Insurance Co Ltd, HDFC Mutual Fund (MF), Aditya Birla Sun Life MF, Sundaram MF, and ICICI Prudential Mutual Fund.
The brand is also backed by ace investor Rakesh Jhunjhunwala, an Indian billionaire business tycoon, stock dealer, and investor.
Metro- Mergers and Acquisitions
Metro brands have acquired Thaely Private Limited for a 5.03% stake. Thaely Private Limited is engaged in the business of marketing and selling sustainable sneaker shoes. The acquisition by Metro is done to carry forward its vision to sell sustainable footwear in the market.
Metro – Advertisements
Metro launched a campaign recently targetting millennials with the #GoodVibesOnly campaign right after their campaign #LetThereBeBright, which was launched right during the pandemic. The recent campaign delivers the new and fresh collections offered by Metro Shoes. The idea of this campaign came in to announce their latest Spring-summer collection and to reach out to a maximum audience, which is mostly the youth.
Alisha Malik, who is the President of Ecommerce & Marketing, Metro Brands Ltd. said, “#GoodVibesOnly felt like a natural next step to our #LetThereBeBright campaign, as the world looks forward to a post-pandemic era filled with hope and color. We wanted the customer to feel the vibes as soon as they see our new collection. Additionally, the groovy song and steps were our version of having fun with a great pair of shoes. We hope this positive energy resonates with every individual looking to spread Good Vibes. This is the spirit we celebrate!”
Metro – Awards and Achievements
Metro had won ‘The Best Footwear Brand with Outstanding E – retail Performance Award’ (2014).
Metro – Competitors
Metro competes with the following competitors:
Bata India
Relaxo Footwear
Campus Active
Liberty shoes
Khadim India
Mirza International Ltd.
Metro – Future Plans
With a strong retail marketing strategy, Metro now plans to strengthen its online presence to further boost its sales. The company generates about 3% from online sales and wants to grow the ratio in the coming three years.
FAQs
Is Metro an Indian Brand?
Yes, Metro is an Indian brand.
Who is the MD of Metro?
Farah Malik Bhanji is the current MD of the company
Does Metro own Mochi?
Yes, Mochi is one of the in-house brands of Metro.
Pratyusha Srivastava
