ETrade has established itself as one of the finest online brokers for trading options as a pioneer in the online brokerage sector. It was one of the first online brokers in the United States and it became the first online broker to provide commission-free trading on ETFs, stocks, and options trades in October 2019. This makes you wonder, how does ETrade make its money? And what is its business model?
A business model is a crucial component of every startup’s long-term success since it is what unlocks value. In some ways, creating a business model is more than just figuring out how to make money. With that in mind, let’s look at the ETrade e-trading platform’s business model.
ETrade, a financial services business located in New York, was formed in 1982 by William A. Porter and Bernard A. Newcomb. Over the years, the firm has grown to over 30 outlets across the United States, making it one of the industry’s pioneers.
ETrade/E*Trade is an electronic trading platform that allows novice and experienced traders to purchase and sell financial assets such as common stock, preferred stock, futures contracts, mutual funds, options, fixed-income investments, and exchange-traded funds.
Products and services offered by ETrade
Etrade earns money through various products and services, including a day trading platform for retail customers. Let’s take a brief look at the services that the firm provides.
Brokerage: E-zero-commission Trade’s US stock trading platform for ordinary clients is known as a brokerage account. They enable you to buy and sell equities, ETFs, mutual funds, potion, and bonds, among other things. At a low fee, you may also trade futures and options contracts, as well as bonds. Until their kid reaches the age of majority, a parent or guardian can handle a minor brokerage account.
Services for Portfolio Management: The portfolio management service is given to both individual and institutional clients. Portfolios can be handled both automatically and manually. Depending on your circumstances, you may also obtain a personally customised portfolio from a financial counsellor.
Bank account: Individuals, families, and companies may open a bank account with ETrade, which provides higher-interest savings and checking accounts. Free initial checks, online bill pay, and an ATM/debit card are all available. You may also use the free Transfer Money service, pay with your credit card online, and borrow against your investments.
Retirement services: ETrade offers retirement (IRA) accounts for tax savings, minor’s savings that an adult may handle for the benefit of a child until they reach the age of majority, and persons commencing their savings at the age of 59.5 years old.
ETrade has a long history as an online broker, and its platforms are well-known for being straightforward to use. And even though it offers many services, including news, research, and screeners, ETrade is still simple to use.
ETrend features a user-friendly interface that allows you to personalise the platforms according to how you want to connect with them.
ETrade offers three web-based/downloadable platforms and two mobile apps, making it an excellent alternative for passive investors and casual traders. To help optimise the value of deposits earned in its brokerage operation, it also offers banking products through the ETrade Bank, an FDIC-registered federal savings bank.
It joins a growing number of online brokers that have switched to commission-free stock, ETF, and options trading in October 2019.
ETrade Business Model
ETrade employs a strategy that generates revenue from payment for order flow as well as interest income earned on the free float. To generate income on customer funds, ETrade invests them in money market accounts. Margin rates levied on purchasing or shorting stocks on the business’s platform also generate revenue for the company.
ETrade charges no commissions, which begs the question: how does ETrade make money?
Margin
Clients at ETrade pay interest on money borrowed to buy stocks and on money borrowed to short stocks. For many broker-dealers, margin interest is a crucial source of revenue, and ETrade is no different. It has rates that are higher than the national average. Depending on the total amount borrowed overnight, they start at 8.95 per cent and go down.
Flow of Orders
ETrade makes the majority of its money through monetising its order flow. Customers’ buy and sell orders are sent to market makers for execution by ETrade. The company is compensated for the order flow in exchange.
When E-margin Trade’s customers borrow money to short or purchase stocks, ETrade receives interest. A transaction-fee mutual fund costs $19.99 to buy or sell at the business.
This is a standard business procedure; therefore, ETrade isn’t doing anything out of the ordinary here. ETrade sends orders to the groups to adjust for the order flow. This is also a frequent industry practice.
ETrade receives less than a cent per share on average for routing orders. That may not seem like a lot, but when you consider that there are about 300,000 trades each day, with several shares per order, it adds up.
Earnings from interest
ETrade advertises heavily on the need of filling your brokerage, bank, retirement, or PMS accounts with them since the more money you invest with them, the more interest you get. The business of ETrade is based on the interest produced by the float, which is invested by millions of customers. Offering free trading to retail investors is a fantastic way to improve their float because they are the least likely to trade actively.
Service charges
Portfolio management, retirement accounts, and other essential portfolio services are also profitable for ETrade. Fees and service charges are how they make money from these services.
The fees for portfolio management vary from $500 to $250,000, with a 0.30 per cent to 0.75 per cent cost.
ETrade charges $25 for premature withdrawals, excess contribution withdrawals, and re-characterisations in retirement accounts (changing from Roth IRA to Traditional IRA).
And, depending on the debit balance available at the time of the trade, margin trading costs range from 5.45 per cent to 8.95 per cent.
In the year 2019, ETrade generated $588 million in fees and service charges.
Commissions on mutual funds
ETrade charges $19.99 to buy or sell a transaction-fee mutual fund. It costs $49.99 to sell a no-load, no-transaction-fee fund fewer than 90 days after acquisition.
ETrade also profits from mutual fund trades through 12b-1 fees, sub-accounting fees, shareholder service costs, and marketing support payments.
Trading Commissions
Only ten to twenty per cent of the millions of traders are active. Active traders, on the other hand, trade often and in large amounts. And many of them trade futures and options, the most lucrative part of the stock market.
This 20% of active traders generate twenty times the money that they lose by providing free trading.
Fees for Futures, Options, and Bonds on ETrade
The larger the number of active traders operating in any of these categories, the higher the commissions because ETrade works with huge volumes rather than premium pricing.
This information makes you wonder if ETrade is losing money on these products. ETrade loses money on its free service. However, because over 80% of traders aren’t active in the markets, they don’t lose much money. ETrade lost $23 million in securities trading fees in 2019. The $23 million loss is well worth it for their business model, given the $421 million in trading commissions they receive from active traders.
FAQs
When was ETrade Financial Corporation founded?
ETrade Financial Corporation was founded in 1982.
Does ETrade charge commission?
ETrade does not charges commission for online US-listed stock, ETF, and options trades.
Ideas, creativity, and execution are essential for a startup to flourish. But are they enough? Investors provide startups and other entrepreneurial ventures with the capital—popularly known as “funding”—to think big, grow rich, and leave a lasting impact. StartupTalky keeps a watch on the funding activity that happens in the Indian startup ecosystem. You’ll find the startup’s details, the funding it received, and the investors’ information here for the year 2014.
Indian Dream Capital (Mauritius), Rajesh Sawhney (GSF), Rohit Bansal and KunalBahl (Snapdeal), Narendra Singh Rawat (FG Wilson), TA Venture Holding Limited, Roshan Abbas and Anand Chandrasekaran
Wegilant
Technology
150000
Mumbai
Gaurav Sharma (Director, Yahoo Inc), Ravi Gururaj, RippleWave
GiftsCardsIndia
Consumer Internet
Mumbai
Blume Ventures, Rajan Anandan (MD, Google India)
CollegeDunia
Consumer Internet
150000
New Delhi
Umang Kumar (CEA, mGaadi)
Grofers
E-Commerce
New Delhi
Sequoia Capital
Flipkart
E-Commerce
700000000
Bangalore
Baillie Gifford, GreenoaksCapital, Steadview Capital, T. Rowe PriceAssociates, Qatar Investment Authority, DST Global, GIC, ICONIQ Capital, Tiger Global
Forum Synergies, Inventus Capital, Ojas Venture Partners
CollegeDunia.com
Consumer Internet
Angel
150000
New Delhi
Umang Kumar
Vee
Mobile App
Pre- Series A
1000000
Others
Lightspeed Venture Partners
HashCube
Mobile App
700000
Bangalore
Nazara technologies, Indian Angel Network, Blume Ventures, ah! Ventures, Perry LaForge
Ineda
Hardware
Series B
2000000
Hyderabad
Cisco Investments
POPxo.com
Consumer Internet
500000
New Delhi
Rajan Anandam, Mithun Sancheti
Tripoto
Consumer Internet
Seed
400000
New Delhi
Outbox Ventures, Kunal Bahl and Rohit Bansal(Snapdeal’s Founders), Sachin Bhatia (Makemytrip and Trulymadly Founder)
Blowhorn
e-Commerce
Seed
Bangalore
Unitus Seed Fund
Arkin Net
Technology
7000000
Pune
Nexus Venture Partners, B.V. Jagadeesh (Ex-CEO NetScaler and Nutanix Investor), Alan Cohen (Chief Commercial Officer of Illumio, Ex-VP Nicira) and Semil Shahof Haystack Fund
Urban Ladder
e-Commerce
Bangalore
Ratan Tata
Zomato
Consumer Internet
60000000
New Delhi
Info Edge (India) Limited, Vy Capital, Sequoia Capital
MandRat Games
Others
1000000
Bangalore
Sachin Bansal and Binny Bansal (Flipkart Founders), Rajul Garg, Sanjay Singh, Manoj Agarwala and Tarun Upadhyay (GlobaLogic Founders)
ScrollBack
Consumer Internet
500000
Bangalore
Jungle Ventures
Grabhouse
Consumer Internet
Series A
2000000
Mumbai
Kalaari Capital, India Quotient
Instamojo
Technology
Series A
Bangalore
Kalaari Capital, Blume Ventures, 500 Startups
NLPCaptcha
Technology
Seed
New Delhi
Your Nest Angel Fund, Udaan Angel Partners
VoxPop
e-Commerce
1000000
Mumbai
Blume Ventures
RailYatri
Mobile App
500000
New Delhi
Blume Ventures
VelvetCase
e-Commerce
1000000
Mumbai
Chennai Angels, Jacob Kurian (partner at PE firm New Silk Route); Arihant Patni (cofounder of Nirvana Ventures), Jerry Rao (former CEO of MphasiS)
Indian Startups Funding Data – October 2014
Company Name
Industry
Round/Series
Amount
Location
Investor(s)
SnapDeal
e-Commerce
Private Equity
627000000
New Delhi
Softbank Internet and Media, Inc
ZoomCar
Technology
8000000
Bangalore
Sequoia Capital, Mohandas Pai, Abhay Jain
iNurture
Education
47000000
Bangalore
Betrelsmann India Investments,
Zippr
Services
1000000
Hyderabad
Indian Angel Network
GrownOut
Technology
First
New Delhi
Matrix Partners India
AdNear
Mobile App
Series B
19000000
Others
Telstra Ventures, Global Brain, Sequoia Capital, Canaan Partners
iD Fresh Food
Others
55000000
Others
Helion Venture Partners
91 Mobiles
Consumer Internet
Pre- Series A
1000000
Others
India Quotient, Krishna Motukuri – CEO of Tradus.com, Umang Kumar – CEO of Gaadi.com
GSF, Globevestor, Asian Ecommerce Alliance GmBH, People Group
Hyperverge
Technology
500000
Chennai
New Enterprise Associates
ShieldSquare
Technology
310000
Bangalore
Girish Mathrubootham of Freshdesk; Murugavel Janakiraman of BharatMatrimony; Sanjay Anandaram of Seedfund; red-Bus founders Phanindra Sama, Charan Padmaraju and Sudhakar Pasupunuri, and existing investor Chandu Nair, member of Chennai Angels
MediAngels
Healthcare
1000000
Others
Ventureast Tenet Fund and Government of India’s Technology Development Board
Timesaverz
Consumer Internet
Mumbai
former Yahoo executive Neville Taraporewalla and GSF Accelerator founder Rajesh Sawhney
HotelsAroundYou
e-Commerce
Mumbai
VentureNursery, Patni scions Amit and Arihant, Aditya Birla Capital Advisors chief executive Bharat Banka, Fame Cinemas Founder Shravan Shroff
Xamcheck
Education
1800000
Others
Aspada Investment Company
Edutel Technologies
Education
2000000
Bangalore
Dell Foundation
SectorQube
Hardware
Crowdfunding
500000
Others
Kickstarter
GourmetItUp
Consumer Internet
300000
Mumbai
Karan Bhagat, Prabhat Awasthi, Atul Kumar
OlaCabs
Mobile App
Series D
210000000
Mumbai
SoftBank Corp, Tiger Global, Matrix Partners India, Steadview Capital
Rico
Hardware
Crowdfunding
66000
Others
Kickstarter
ObiNO
Healthcare
Seed
Mumbai
HealthStart
Cygnus Healthcare
Healthcare
10000000
Others
Fidelity Growth Partners
Happily Unmaried
e-Commerce
650000
New Delhi
Info Edge
Canvera
Consumer Internet
1640000
Bangalore
Info Edge
Sapience
Services
Series B
7400000
Pune
Orios Venture Partners
CarTrade.com
Consumer Internet
30000000
Mumbai
Warburg Pincus, Canaan Partners, Tiger Global
PriceBurp.com
Consumer Internet
100000
Mumbai
Bright Ventures
NoteMyBook
Consumer Internet
Seed
Mumbai
Vivekanand Education Society’s Institute of Technology
TalentPad
Consumer Internet
Seed
Bangalore
Helion Venture Partners
Allfresh
Services
2000000
Others
Asada Investment
Indian Startups Funding Data – September 2014
Company Name
Industry
Round/Series
Amount
Location
Investor(s)
BigBasket
e-Commerce
33000000
Bangalore
Helion Ventures, Ascent Capital, Zodius Capital and Lionrock Capital
Nearify
Mobile App
Seed
New Delhi
Seedfund Advisors, India Quotient, Bedrock Ventures
Sales of life insurance policies are a vital source of revenue for any life insurance company and their primary motivation for doing business. Because today’s business operations are so intertwined, claim settlement services significantly influence life insurance policy sales. People can use life insurance plans to cover a variety of hazards throughout life.
The insurance industry grew rapidly in the first two decades of the twentieth century. In 1938, it increased from 44 firms with a total business-in-force of Rs.22 crore to 176 companies with a total business-in-force of Rs.298 crore. The call for the life insurance sector to be nationalised had been voiced before, but it gained traction in 1944 when a measure to modify the Life Insurance Act 1938 was filed in the Legislative Assembly. However, it was not until 1956 that life insurance was nationalised in India when the Life Insurance Corporation was passed by the Indian Parliament on June 19.
The Life Insurance Corporation of India was established on September 1, 1956, by the Ministry of Finance of the Government of India, with the goal of making life insurance more widely available, particularly in rural areas, with the goal of reaching all insurable persons in the country and providing adequate financial cover at a reasonable cost.
LIC’s Objectives
The primary goal of LIC is to promote life insurance across the country, particularly in rural regions and among the socially and economically disadvantaged, to reach all insurable individuals and provide them with appropriate financial protection against death at a fair cost.
Maximise people’s savings mobilisation by making insurance-linked savings sufficiently appealing. Another goal is to function as trustees for the insured public in their individual and collective capacities, meeting the community’s diverse life insurance demands as the social and economic environment changes.
LIC intends to involve all employees to the best of their abilities to advance the insured public’s interests by delivering prompt and courteous service.
Growth of LIC
In 1956, LIC had 5 zone offices, 33 divisional offices, and 212 branch offices in addition to its corporate office. Because life insurance contracts are long-term contracts that require a range of services during the policy’s life, LIC felt the necessity to extend operations and open a branch office at each district headquarters in subsequent years.
The LIC was reorganised, and it created a considerable number of new branch offices. It shifted servicing tasks to branches due to the reorganisation, and departments were declared accounting units. It had a significant impact on the company’s success. You can observe that from about INR 200 crores in new business in 1957, the company only exceeded INR 1000 crores in 1969-70, and it took another ten years for LIC to reach the INR 2000 crore barrier. However, after reorganisation in the early 1980s, LIC had already surpassed INR 7000 crores in Sum Assured on new policies by 1985-86.
LIC has practically monopolised the solicitation and sale of life insurance plans in India, having existed as a massive insurance business for almost 60 years. LIC has expanded its operations outside of India to 14 countries to meet the insurance needs of Non-Resident Indians.
With an asset value of INR 2,529,390 crores, LIC is now India’s largest life insurance business, controlled by the government. LIC’s headquarters are in Mumbai.
It currently operates eight zonal offices and 113 divisional offices around the nation. It has 2,048 branches across India in various towns and cities.
In addition, LIC maintains a network of over 15 million agents that sell life insurance to the general population. The LIC had a total life fund of $28.3 trillion as of 2019. In the 2018–19 fiscal year, the total value of sold insurance was $21.4 million. In 2018–19, LIC resolved 26 million claims. With 290 million policyholders, it is the largest insurance company in the world.
The Life Insurance Corporation of India (LIC of India) is one of India’s largest financial organisations, providing comprehensive financial solutions for all aspects of life. It has a customer base of around 23 crores, making it the largest insurance company globally. After Indian Railways, it is the second-largest real estate owner in the country. The LIC advertises through newspapers, radio, television, billboards, and other media.
LIC’s Products and Services
The Life Insurance Corporation of India (LIC) offers a variety of life insurance plans. As a government-owned Life Insurance Firm, LIC’s policies are in high demand and appeal to a broad spectrum of consumers.
LIC For endowment, LIC offers the Jeevan Pragati, LIC Jeevan Labh, LIC Single Premium Endowment Plan, LIC’s New Endowment Plan, New Jeevan Anand, LIC’s Jeevan Rakshak, LIC’s Limited Premium Endowment Plan, LIC’s Jeevan Lakshya, LIC’s Aadhaar Shila, and LIC’s Aadhar Stambh.
LIC Jeevan Umang specialises in life insurance.
LIC’s Bima Shree, LIC’s Jeevan Shiromani, LIC’s New Money Back Plan- 20 years, LIC’s New Money Back Plan-25 years, LIC New Bima Bachat, LIC’s Jeevan Tarun are some of the money-back plans available. Money-back plans include LIC’s Anmol Jeevan II and LIC’s e-term Plan.
Their pension schemes include the Pradhan Mantri Vaya Vandana Yojana, LIC New Jeevan Nidhi, and LIC’s Jeevan Akshay.
The LIC of India’s Agents Housing Scheme provides house loans to the company’s agents. It has a separate subsidiary, LIC-HFL, from which many housing plans are moved for fairer distribution.
Employees are given meal coupons.
In September 2010, the Life Insurance Corporation of India (LIC of India) introduced a one-of-a-kind benefit for all workers. The number of meal vouchers is determined by each team member’s position in the hierarchy.
Team member participation in sports is encouraged.
Employees of the LIC of India are encouraged to participate in various sporting activities to improve their physical fitness and overall personality. Employees have also spoken on behalf of the company at different national and international levels. It has recruited numerous workers from its Sports Recruitment Quota to maintain competitive excellence in sports and to compete on an equal footing with other businesses.
Training its employees
LIC has begun to provide training to its staff at all levels of the organisation. It has established a distinct Human Resources Development / Organizational Development (HRD/OD) Department to develop and enhance capabilities, commitment and foster a learning and performance-focused culture.
LIC Life Insurance’s marketing approach is pretty basic. Its primary goal is to educate consumers about the company’s different policies and brands. Personal selling, exhibits, demonstrations at events, advertising, and innovative schemes have all been used by LIC to achieve this goal.
A mobile advertising van circulates across rural regions, raising awareness of the firm. LIC-Life Insurance has a website and a webpage where it provides thorough information on each potential inquiry to satisfy customers.
LIC is continually working to strengthen “Brand LIC” and strengthen the brand’s link with growing market segments. It has done so by maintaining a regular media presence in national and regional outlets.
It has also sponsored several national and international programmes and a variety of activities such as newspaper campaigns and continuous coverage of goods in several publications.
FAQs
Who is the founder of LIC?
LIC has been founded by Government of India in 1956.
What are the Subsidiary companies of LIC?
LIC subsidiary companies are:
LIC Pension Fund Limited
LIC Cards Service Limited
IDBI Bank Limited
What is the number of employees in LIC?
There are 1,14,000 employees (2020) working for LIC, and over 10 Lakh LIC agents.
The world has changed completely, from creating fire with the help of stones to the creation of humanoid robots, we have come a long way and honestly, it’s fascinating as well as bewildering, how we have evolved over time. The technological advancement makes it more interesting, now we can do almost anything and everything with just a single touch from our hand. Life has become easier than one could ever imagine and it is also going to get more easier with the advancement of technology.
Now, this easy life sometimes can seem frustrating when you have an overbearing person over you and who consistently finds faults in whatever you’re doing. Unfortunately, this is very common in most work cultures. Imagine, working in a company, where you don’t have an ever frustrated boss continuously nagging you for doing your work. Sounds impossible, right?
Well, it is not impossible anymore, say thank you to the technology-friendly world we live in, for creating something that can get you rid of your scary boss and can give you an option to work freely. Here, we are talking about a company whose CEO is a computer. In this article, we will talk about DAO and how it’s making noise in the world with its unique ability.
“It’s not that we use technology, we live technology.”
A Decentralized Autonomous Organization is also known as DAO is an organization that completely functions on computer codes. This organization is based on Ethereum blockchain technology, another cryptocurrency like bitcoin and smart contracts, this is making everyone go crazy with its unique concept.
A German company called Slock.it built a platform to launch and named it DAO and it was the first self-governing company. It was first launched in 2016 as a crowdfunding organization and made its place in the largest crowdfunding campaign in history.
Slock.it Founders – Simon Jentzsch, Stephan Tual, and Christoph Jentzsch
The code for this is open source. By the end of May 2016, with the help of crowdfunding, over $150 million were raised from more than 11,000 investors.
DAO tokens can be bought through Ethereum cryptocurrency. This thing mainly works with the help of some mathematical codes and transactions are possible without any involvement of a mediator. It has full-fledged security and looks after by the people who have stakes in here. Therefore, there is no CEO, boss, or hierarchy here, and is operated by only its stakeholders.
The token owners have their own system to operate and look after the organization and can be accessed by anyone at any time if they got a computer and internet.
How DAO is Different From Other Companies?
As mentioned before there is no board of directors or senior executives in DAO. Those who hold tokens are the shareholders and are presented with the right to vote regarding any kind of matter of the organization.
Apart from that, there is no employee kind of thing in DAO, contract-based projects are given, they are mostly called Contribution Contract and only after the stakeholder’s discussion, if they give a nod for the project, then the work can get started.
While the project has been started, if the contract anyhow fails to deliver the named project on time, instead of a confrontation between the boss of the company and the contractor, the token holders who voted for the contractor will withdraw their votes. Therefore, then and there the project stopped and the contract ends.
Tips For Contractors of DAO
In any kind of company, one needs to be cautious and sincere with their work. In a company like DAO, one needs to follow some rules strictly and those are:
The work needs to be done on proper time by the contractor.
The quality of the work has to be top class and must not be compromised no matter what.
Respect is one of the prime factors; one should treat people with the utmost respect.
Here the best always gets chances to collaborate with DAO for the projects.
Life has literally become a place where everything revolves around technology; in fact, we live and breathe technologies. We, humans, are evolving, so it is natural that with us every industry will also evolve and will witness a change that is worth watching for.
With cryptocurrency being the next big thing, it is just a matter of time that DAO will make a huge place in the world of business. Plus with its spectacular features, it is bound to be the talk of the world in the upcoming futuristic world.
FAQ
What is the Full Form of DAO?
The full form of DAO is Decentralized Autonomous Organization.
Does DAO depend on Computers?
Yes, DAO or Decentralized Autonomous Organization is an organization that is controlled by computer codes and different programs.
How DAO Tokens Can be Purchased?
One needs to buy Ethereum cryptocurrency and can exchange it online with DAO tokens.
Was DAO Hacked?
Yes, Less than three months after its launch, The DAO was hacked and $60 million of ether was stolen.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byFareye.
For any business dealing with physical goods, logistics is an important segment to take care of. Today we are featuring FarEye, a SaaS startup that is helping business manage their logistics and supply chain easily and flawlessly. Founded by three Indian entrepreneurs, FarEye, is a global logistics SaaS startup that is simplifying logistics management for businesses and ensuring a great delivery experience for end customers. Here is more on the journey of the startup, its growth, and how it is disrupting the global logistics market.
On July 2021, FarEye secured $100 M in a Series E round headed by TCV and Dragoneer Investment Group. FarEye’s previous investors, including Eight Roads Ventures, Fundamentum, and Honeywell, were also involved in the round. The new funding also includes a little debt refinancing, but the amount was not disclosed.
The funds will be used to develop the company’s technology platform strengths, fuel expansion in Europe and North America, and investigate inorganic growth opportunities.
About FarEye and How it Works?
FarEye’s products include last-mile delivery routing software, logistics, and supply chain visibility software, and software to improve coordination between enterprises and logistics partners. FarEye’s cutting-edge logistics technology stack is making the delivery of goods a pleasant experience for everybody.
The AI-powered feature of FarEye optimizes end-to-end delivery and makes recommendations based on data aggregation. It enables businesses to obtain insights, outperforms over the last loop, and satisfy the customers. FarEye’s goal is to drive autonomously, deliver with autonomous vehicles and drones using aggregated data and real-time feedback.
FarEye enables global businesses to reduce delivery times by up to 27%, enhance courier efficiency by allowing up to 15%, remove hazards by up to 57%, and maintain operational excellence. The FarEye Intelligent Delivery Management Platform can assist your organization in going live faster, implementing process improvements quickly, and keeping your delivery ecosystem adaptable. With end-to-end visibility throughout the delivery journey, the engine provides an excellent logistics customer experience.
FarEye is a software platform that helps firms plan, track and optimize their logistics operations. If you order a pizza from Domino’s, the restaurant will use FarEye’s services, which is integrated into its database, to swiftly advise the client how long they will have to wait for their meal.
FarEye – Name, Tagline and Logo
In a world that is becoming increasingly borderless, supply chain management is more vital than it has ever been. To achieve performance and accuracy, operations would require timely coordination, insight, and control. FarEye lets businesses keep an eye on and control their logistics and supply chain remotely and easily, which possibly inspired the name ‘FarEye’.
FarEye’s Company Logo
FarEye’s tagline says, “Improving Logistics Collaboration And Driving Supply Chain Excellence.” Another tagline used in the company’s website is, ‘ Making Deliveries Better for Everyone’
FarEye – Founder and History
FarEye was founded by Kushal Nahata, Gautam Kumar, and Gaurav Srivastava in 2013.
Founders of FarEye – Kushal Nahata, Gautam Kumar, and Gaurav Srivastava
After 14 or 15 years of full-time education, the three founders really wanted to get out into the world, solve problems, and make a meaningful impact. The only question that lingered was what real-life problems could they solve? and the response came as a knock on the door. “E-commerce was just starting to take off in India at the time,” says Nahata. “However, if I ordered something online, the driver would contact me every time, inquiring where my house was, even though it hadn’t moved in years. After that, everything was done with pen and paper until the driver arrived. It was clear that there had been little change in the way logistics were organized.” This is where the idea for “FarEye” arose from.
FarEye’s first customer was Jabong’s logistics arm GoJavas in 2013, and it currently works with some of the world’s largest companies, including DHL, Walmart, Tata Steel, Hilti, and Amway, to help them digitalize and manage their logistics operations more effectively.
FarEye’s mission statement says, “With a mission to make logistics more efficient, predictive and organized, we set out to build a robust technology platform that leading global enterprises across 30+ countries adopted. We are on the path to building an autonomous logistics platform that would make it not just efficient but also self-sustaining & profitable for enterprises.”
FarEye – Business Model & Revenue Model
FarEye is a logistics SaaS startup and earns revenue from subscription charges. Businesses use FarEye’s intelligent and sophisticated platform to deploy several delivery models from multiple inventory locations, including same-day, next-day, on-demand, and doorstep. This includes overseeing the end-to-end delivery of goods and services to both consumers and businesses, using both third-party and in-house fleet methods.
As reported in 2020, FarEye has around 350 employees, and the company is handling over 10 million transactions a day. The company has clients in over 30 nations, and across many industries including transportation, logistics, retail, and FMCG. As per some reports, in 202o FarEye made revenue worth $26.8 million, and the company’s products are being used by over 150 businesses.
“Logistics spend globally is $10.6 trillion, out of which 70% is on transportation. However, there is scope to save $10 on every $100 of freight by optimizing returns, resource utilization, cycle time, and fragmented logistics processes resulting in savings of about $700 billion,” says Nahata.
FarEye is now firmly in expansion mode and grew quickly over the next few years. While most of the company’s early customers were logistics service providers, it currently serves shippers as well, and its customers can be located anywhere in the world. FarEye’s systems track between 5 and 10 million shipments per day.
FarEye – Funding and Investors
Date
Round
Amount
Lead Investors
May 25, 2021
Series E
$100M
Dragoneer Investment Group, TCV
Aug 19, 2020
Series D
$13M
Fundamentum, KB Global Platform Fund
Apr 10, 2020
Series D
$24.5M
M12 – Microsoft’s Venture Fund
Jan 5, 2018
Series C
$9.8M
Deutsche Post
Jan 21, 2016
Series B
$3.1M
Elevation Capital
Oct 5, 2014
Series A
$317K
Indian Angel Network
Nov 25, 2013
Angel Round
$32K
–
FarEye – Acquisitions
Acquiree Name
About Acquiree
Date
Round
PY Technology Pvt. Ltd.
PY Technology Pvt. Ltd. is an enterprise software and services company that provides Information Technology & Services.
Mar 5, 2021
–
Dipper
Digital Ecosystem for freight logistics
Nov 14, 2018
–
FarEye – Competitors
Some of the top competitors of FarEye are Ecom Express, project44, SAP Integrated Business Planning, SPiN, Optimal Satcom, FourKites, G2 Deals, Shipsy & Mojro.
Handling deliveries isn’t easy, according to the CEO. Shoppers, in particular, are expecting a same-day shipment, increased flexibility, and better transparency. Even for field workers, completing a good delivery requires more than merely gathering up or dropping off a package. To ensure successful delivery, a succession of events must occur at precisely the right time.
FarEye – Future Plans
“We are solving certain problems for our customers today, but I feel we can solve much larger problems and help digitize the entire supply chain network,” FarEye CEO Kushal Nahata said.
As the coronavirus outbreak threatens supermarket and e-commerce companies’ capacity to deliver supplies to consumers on time, FarEye announced that ‘Serve’, a service that focuses on enabling the movement of everyday essentials, will be free for any company to utilize for more than a year.
“The global pandemic has accelerated the need for enterprises to scale their supply chain operations efficiently to meet the rising share of online deliveries. FarEye’s highly configurable last-mile and long-haul logistics platform has been validated by leading global enterprises across the 3PL, retail and manufacturing categories,” said Shweta Bhatia, a partner at Eight Roads Ventures, in a statement.
The startup wants to improve its integration capabilities so that it can provide organizations with a comprehensive plug-and-play solution. The firm, which already employs over 350 people, plans to add 100 more employees in order to speed up product development.
The largest future challenges for the firm will be developing better ways to assist clients to sustain the competitive advantage that comes from constant innovation and quick evolution.
FarEye has been profitable since its inception, but according to Nahata, an IPO is not in the cards for the near future. “Right now, our main aim is to grow” he stated.
FarEye – FAQs
What does FarEye do?
The AI-powered feature of FarEye, a Noida-based company, optimizes end-to-end delivery and makes recommendations based on data aggregation.
Who founded FarEye?
FarEye was founded by Kushal Nahata, Gautam Kumar, and Gaurav Srivastava in 2013.
Which companies do FarEye compete with?
Some of the top competitors of FarEye are Ecom Express, project44, SAP Integrated Business Planning, SPiN, Optimal Satcom, FourKites, G2 Deals, Shipsy & Mojro.
Pond’s is a beauty brand that transforms women’s skin and the way they live their lives via breakthrough product developments.
Pond’s acknowledges the importance of beauty as a forerunner of love in a woman’s life, not simply appearing beautiful but also feeling lovely. Pond’s has been linked with skincare for nearly a century, having a presence in over 56 countries. It has been a pioneer in recognising a woman’s skincare and beauty requirements. It has appealed to people of all ages and skin types.
Pond’s has expanded its offerings to include anti-ageing, skin whitening, oil management, moisturising, and other skin care needs. Furthermore, each line in the portfolio consists of a wide selection of products, including day creams, night creams, serums, masks, eye treatments, face foams, and more.
Theron T. Pond, a scientist, first created Ponds cream as a medication in the United States. He learned to treat minor wounds and other illnesses by extracting a medicinal tea from witch hazel.
Pond’s began advertising under the name Pond’s Healing in 1886 and continued until 1910.
Pond’s cold cream and vanishing cream, which marked the company’s entry into the facial care sector, were established in the twentieth century as part of the company’s core goal of selling cosmetics goods.
Ponds introduced Pond’s extract in 1886 and Pond’s Cold Cream and Vanishing Cream in 1914, both of which became beauty icons.
Its standing was reflected in the middle of the 1920s with endorsements from princesses, social beauty, and Hollywood stars. Pond’s built its elegant image on product delivery guarantees and an awareness of a woman’s beauty routines and demands.
Pond’s began operations in the United States as a worldwide corporation. Previously, its production plant was in Connecticut, and Pond’s moved its sales headquarters to New York City. Its goods now have a worldwide market, and it has expanded its presence to nations such as Thailand, India, Japan, and Spain.
The Pond’s Company of America first introduced cold cream to India in 1947, but it wasn’t until 1956 that it expanded into talcum powders that it became a household name in India.
Hindustan Unilever, which bought Pond’s in 1987 and expanded its skincare range in India, was able to add a new dimension to its skincare offering in India.
Pond’s began operations in the United States as a worldwide corporation. Previously, its production plant was in Connecticut, and Pond’s moved its sales headquarters to New York City. Its goods now have a worldwide market, and it has expanded its presence to nations such as Thailand, India, Japan, and Spain.
Ponds has been marketing its goods on a national basis since 1886. Ponds Healing was the company’s trademark name when it first went public in 1910. The brand has launched numerous educational and beautiful ad campaigns in prominent television, newspapers, radio, and magazines connected to beauty goods through electronic and print media.
You may also find its advertisements on social media sites, including Facebook, YouTube, and Twitter.
Pond’s recognised that if women believe they can be more attractive, they will use facial care products.
The Beginning of the Campaign
Ponds began advertising on a national scale in 1886. Until 1910, they announced under the name “Ponds Healing Cream.” By 1910, they had focused on its disappearing cream (formerly known as Healing Cream), and they had launched an ad campaign that would become famous due to the celebrities involved. The commercials for ‘Ponds Vanishing Cream’ and ‘Ponds Cold Cream’ work together to describe the objectives of each cream.
Every normal skin requires these two creams, according to the brand’s slogan. Consequently, sales of “Ponds Vanishing Cream” increased by 60% in 1915, while sales of “Ponds Cold Cream” increased by 27%.
Campaign for Magazines
When Queen Marie of Romania visited the United States in 1923, she was so taken with the Ponds product that she wrote a letter to the business requesting more. Pond’s then turned her letter into a commercial. Following this, Pond’s began to include samples of their goods in its magazine advertisements to attract ordinary people to purchase the cream.
Campaign #BeautifulStory
This inspired Ponds’ #BeautifulStory campaign. Pond’s used 17 of the Philippines’ Most Beautiful Faces to show that beauty changes may be achieved. It brought together 17 superstars for a TV film and a public relations launch. Ponds developed 17 digital films that tell their transformation tales.
With over 1 billion views online, this ad was the most seen in 2014, resulting in a 22 per cent increase in product demand.
Pond’s Success
Pond’s is a personal care brand that is linked with the FMCG industry. The products of Pond’s are divided into three categories: skin lightning, oil management, and anti-ageing.
Pond’s is a well-known and well-recognised brand. It caters to a variety of women’s skincare approaches, and as a result, it has released various unique items at regular intervals to keep clients interested.
Ponds Men Pollution Out, Ponds Men Acno Clear Oil Control, and more products for men have been added, providing treatments for sun damage, pollution, oil control, and pimples. Facial Moisturisers, BB Creams, Facial Cleansers, Makeup Removers, and Talcum Powder are some of the company’s most popular items.
The primary reason for doing the study is that a large percentage of customers have misconceptions regarding moisturisers. People believe they do not need moisturisers because they are constantly youthful, think it makes their skin greasy, and various other reasons.
However, the firm has positioned itself as a one-stop-shop for five issues, allowing consumers to learn more about their skin and utilise the product. Pond’s offers a wide range of skincare products, including skin cleaning, skin whitening, anti-ageing, and more. Pond’s is sold worldwide, with Spain, India, Japan, and Thailand being their most important markets.
The beauty Brand has enlisted the aid of its parent firm, Unilever, and is making use of its distribution network. Wholesalers, retailers, distributors, and warehouses provide services to customers through supermarkets, hypermarkets, discount stores, and convenience stores.
Pond’s faced intense competition from several other companies when it came to pricing. It has implemented a competitive pricing strategy, keeping product prices modest and fair to obtain a price edge over its competitors. It has established a promotional programme that offers a variety of incentives at regular intervals to appeal to a more extensive consumer base. This aids in bulk sales and increased profits.
FAQs
Is ponds an Indian brand?
Pond’s is an American brand of beauty and health care products. Pond’s company is currently owned by Unilever.
Who are the top competitors of Pond’s?
Some of the top Pond’s competitors are:
Dove
Nivea
Garnier
Lakme
Olay
Dabur
Emami
Which is the best Ponds Products?
Some of the Best Pond’s Products In India are:
Pond’s Super Light Gel
Pond’s White Beauty Face Wash
Pond’s Dreamflower Fragrant Talc
Pond’s Rejuveness Anti-Wrinkle Cream
Pond’s Triple Vitamin Moisturising Lotion
Pond’s Pure Detox Anti-Pollution + Purity Face Wash
It is no surprise that Saas has become an essential tool in shaping and transforming industries. Nowadays, Insurance industry are being transformed into virtual businesses only because of what virtualization has made the service efficient, accurate, and easier to use.
Software as a service has become the trend these days. Are these tools helping people with their complicated problems? How is it contributing to the insurance industry being a software licensing and delivery model? The functions that Saas has provided to the insurance industry have proved to be remarkable because Saas helps developing solutions and also ensures a more connected environment with customers.
SaaS is the abbreviated form of Software as a Service, and is also known as ‘on-demand software’. It is a part of cloud-computing along with a few more of them such as IaaS, PaaS, DaaS, MaaS, MBaaS, DCaaS, iPaaS, and ITMaaS.
It was during the late 1950s when leading companies like IBM and other computer providers referred to SaaS as ‘time-sharing’ or ‘utility computing’. The services were required by the banks at that point in time so that banks could use computing power and database storing services.
SaaS’ Contribution To The Changing Insurance Industry
It is not only the insurance industry but every other industry in the world that will benefit from emerging technologies like AI, machine learning, and other software tools so that there is an improvement in customer experience and business operations.
Industries like the Insurtech industry use tools like SaaS. The Insurtech industry is large especially in the Asian countries it has got a huge market. India stands as the second-largest Insurtech market in the Asia-Pacific region.
However, the numbers are expected to keep growing from 1.7% to 2.3% by the year 2030. SaaS help insurance companies focus on their business by providing an effective solution. As a result, this becomes a strategy to focus on growth rather than focusing on maintenance of the IT department.
The insurance market has always been competitive and will continue to be. This means companies that can come up with standout offers and features will dominate the market. The gap between insurers and the policyholders needs to be filled so that excellent services prevail in the market.
SaaS’ entry into the insurance industry helped companies reduce their cost and employees were able to check the status of insurance. Companies were able to decrease the use of internal resources without making any kind of compromise on security.
In a country like India where there are more than 800 million internet users, people are adapting the digital benefits of insurance companies. The pandemic situation was another major reason for emerge of SaaS services in the insurance industry.
On one side there are the benefits of using SaaS services and on the other, there has to be proper implementation of SaaS insurance solutions. To go both hands in the hand proper planning is required.
There has to be some effort put in from the employees’ side so that there is an improvement both in customer experience and being cost-effective at the same time. Reasons, why companies should adapt to SaaS, are because of the following:
· Enhancing Customer Service
People say it is the customers that run the business and it is true because customers generate money for a business. Customer satisfaction is important not only in the insurance industry but in every other type of industry.
SaaS helps improving customer service by providing easy solutions. SaaS help saves the time for the policyholders by providing information regarding bill payment. This way they do not have to raise queries which will only waste time and the solution might be ineffective.
Once in a while updates are made from the insurance companies so that additional features can be benefitted by the customers. Additional features also help to enhance the customer experience.
· Information Is Secure
A policyholder will always look for a safe and secure methods for their insurance. Well, SaaS is an effective solution for that because of the security that it provides. Updates help the security of the information regarding the policyholder and payment details more advanced.
Insurance companies would be relieved if they did not have to carry the burden of security. SaaS is the perfect model to use especially when a company has a large number of clients.
Conclusion
The current scenario of the world has pushed people to turn towards the services of insurance companies. Insurance companies are providing enough support to their clients so that whenever there is an emergency the insurance would be of great help.
Thanks to technologies like SaaS that monetary transaction has become more secure. Both customers and insurance companies can save time only because SaaS provides a bridge between the gap between customers and insurance companies.
Without having to move an inch from their houses customers can get help support from chatbots. A chatbot can answer the answers that you can question. SaaS services are yet an effective solution for not only the insurance industry but every other type of industry that can benefit from SaaS.
FAQs
Why SaaS is important for an insurance company?
SaaS helps insurance companies secure the data of the policyholders by identifying fraud and assessing risks.
Will the growth of using SaaS for insurance companies increase in the future?
Insurance industry is rapidly increasing and as well as the SaaS industry. Both businesses and customers can benefit from using Artificial intelligence and SaaS. A huge growth of SaaS for insurance companies is expected in future.
How technology is changing the insurance industry?
Technology has made the claims experience more efficient, accurate, and easier to use than ever before.
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 Kapiva.
Ayurveda is regarded as the oldest of the sciences, which focuses on healing our bodies and minds. The healing science, Ayurveda translates to “The Science of Life” in Sanskrit, the knowledge of which originated in India dating back to around 5000 years ago.
Also known as the “Mother of All Healing”, Ayurveda stems from the ancient Vedic culture when it was taught in the oral form in a Gurukul tradition by accomplished masters to their disciples who lived at their residence. In fact, many of the alternative medicinal sciences and therapies like homeopathy and polarity therapy are believed to have their roots in the ancient Ayurvedic principles.
Ayurveda is a complex form of alternative medicine that includes “panchakarma” or five actions, yoga, massage, acupuncture, and herbal medicine for the health and well-being of the body and mind.
Though much of the Ayurvedic knowledge of the past has been buried with it, some of them managed to be scripted and percolated to the present generation. Kapiva is one such brand that holds on to the ancient principles of Ayurveda and tweaks them to fit modern lives. The Modern Ayurvedic Nutrition Brand is based on the holistic approach to wellness and not just a curative science.
Read on to know the full story of about Kapiva, its Founders, How was Kapiva Started, Name, Logo and Tagline, Vision and Mission, Products and Services, Target Market Size, Business and Revenue Model, Startup Launch, Customers/Clients, Challenges, Investors and Funding and more.
Kapiva: Company Highlights
Company Name
Kapiva
Founders
Ameve Sharma & Shrey Badhani
Sector
FMCG
Founded
2016
Registered Entity Name
Adret Retail Pvt Ltd.
Website
kapiva.in
Kapiva: Latest News
October 27, 2021 – Malaika Arora backs Kapiva. The Bollywood actress will be joining as a strategic investor, brand ambassador, and ‘wellness mentor’ at the Kapiva Academy of Ayurveda.
Kapiva can be regarded as the “India’s 1st Modern Ayurvedic Nutrition Brand” that offers food-based innovations to help build healthier lifestyles for the Indians. With the rich legacy of Baidyanath, Kapiva acquired the knowledge and the authority to amalgamate traditional Ayurveda with the modern forms of nutrition.
Kapiva is derived from the three doshas in the Ayurvedic universe – Kapha, Pitta, Vata, which when balanced in a body, bring overall wellness. As mentioned earlier, the brand is established on the belief that Ayurveda is a holistic approach to wellness and not just a curative science.
The Ayurveda-inspired nutrition brand brings a range of organic fruits, vegetables, and other food products to improve the lifestyle of the present generation. The company also brings diversified solutions including daily wellness, men’s health, weight loss, digestion, diabetes, skincare, blood pressure, strength, destress and memory boosting, artho care, kidney stone, and more. In addition, Kapiva never fails to innovate its products to bring this traditional ayurvedic wisdom to consumers in modern, easy-to-use formats, along with delivering them with good nutritional value.
Kapiva Ayurveda
Kapiva: Founders
Kapiva is founded by Ameve Sharma and Shrey Badhani.
Kapiva Founders | Shrey Badhani and Ameve Sharma (L-R)
They joined hands in January 2016 to build the world of modern Ayurvedic brand, Kapiva.
Ameve Sharma grew up in Kolkata and belongs to the family, which founded the famous Baidyanath Group. His grandfather was the founder of Baidyanath and his father still stands as the current Managing Director of the ayurvedic pharmaceutical company. Ameve is the Chairman of the Western region at the Indian Chamber of Commerce and the President of the Baidyanath Group. He has also worked as a Consultant with McKinsey & Company after completing his MBA. He completed his Bachelors in Economics from New York University and went ahead to pursue MBA from INSEAD.
Shrey Badhani is an adept and experienced sales and marketing professional. He has been instrumental in driving growth and implementing strategic management at Kapiva. Shrey looks after the e-commerce platform, offline sales, marketing and operations for Kapiva. He started his career in Consulting with Bain & Co and Parthenon. Most recently, he worked as a PE investor with Bain Capital in their India office. Shrey pursued Bachelors in Economics and History from St. Xavier’s College, Mumbai and Masters in Economics from the University of Cambridge.
Kapiva has a talented team that bring a varied sense of experience to the table. From reputed business school graduates and experienced senior professionals to college freshers and hardworking amateurs, employees at Kapiva come from various walks of life and add value to the overall success of the company. This eclectic bunch brings the much-needed diversity in perception, having a positive impact on major business decisions.
Kapiva Apprenticeship Programme, where the seniors and experienced staff mentor juniors and help them gain valuable business insights. This has helped the employees gain a cohesive professional experience at a very young age.
Ayurveda has always been at the heart of the Indian tradition. However, somewhere along the way the true essence of it had been lost. People approached Ayurveda with a curative lens but it is in fact, a way of life! It relies on the principle of ‘food is medicine’ and ‘you are what you eat’. Western countries have begun understanding the true value of ayurvedic sciences and the industry is booming rapidly overseas. With the advent of turmeric lattes, moringa cereals, and more, other countries seem to appreciate our traditions more than we do!
One of the major reasons why Ayurveda does not fare well in India is due to the lack of awareness about its benefits and values among the millennial population. Considering that India has one of the largest Gen Y population of the world, we are actually not catering to almost 34% of the total Indian population. To combat this, Kapiva has anchored on creating this awareness among the millennials and securing a modern ayurvedic nutrition stance to educate that section of consumers.
All products of Kapiva are created keeping the busy and on-the-go lifestyle of modern-day Indians, who seek to maintain an upkeep of their health in easy to use and convenient options without having to compromise on taste.
For instance, Kapiva Gummies are designed for on-the-go nutrition with the power of Ayurvedic herbs in a yummy-gummy format, which is convenient as well as a joy to consume!
Kapiva’s logo is interestingly designed in black and white where the starting letter of the brand, “K” stands in an enlarged version with the brand name “Kapiva” written inside it.
Kapiva | Name, Logo and Tagline
Kapiva rests on a core philosophy, “Your simple guide to everyday Ayurveda”. The name Kapiva is derived from the three doshas in the Ayurvedic universe – Kapha, Pitta, Vata, which when balanced in a body, bring overall wellness.
The founders believed in this balanced approach to health using Ayurveda, and the company is well poised to achieve its growth objective as consumers begin to adopt this philosophy by proactively seeking better nutrition. In addition to core Ayurveda, the various product innovations add further value to consumers, making Kapiva a preferred brand for modern wellness.
Kapiva: Vision and Mission
Kapiva’s mission is to provide a new-age Ayurveda for the new-age customers. Furthermore, the company wants to free Ayurveda of its complexities and enable millenials to make it a part of their everyday life, live a holistic lifestyle.
Kapiva’s vision is to not only provide Ayurveda-based nutrition products, but also bring balance into the lives of the customers through these products.
Kapiva: Products and Services
Kapiva stands for modern ayurvedic nutrition. They have been able to disrupt the traditional ayurvedic industry, by presenting the benefits of Ayurveda to the modern lives of the Indians in easily accessible and convenient forms. With the backing of an Ayurveda-inspired innovation, Kapiva has access to the best suppliers of natural ingredients in the country and has built a very strong sourcing story for all its natural products. In addition, the founders’ exposure to various markets during their earlier experiences, has helped them understand the modern consumer’s needs very well.
Kapiva is designed for a fast-paced 21st-century lifestyle, especially where the lack of the right nutrition and inadequate immunity can pose serious health risks. The company has created a new category of modern ayurvedic nutrition, which never existed before, addressing the core consumer needs of health and taste.
For example, Kapiva Wild Amla Juice is made from ripe, yellow Amlas as they are more nutritious compared to the commonly used raw, green amlas. Furthermore, the juices are cold-pressed to retain all their nutritional content. All the products share such unique sourcing stories. The company’s fast growth trajectory is a result of the innovation in product development by bringing better quality, more convenient products to the consumer.
Kapiva invests in R&D and innovates on sourcing better ingredients, convenient product formats, and consumer-friendly packaging, to deliver more value to the consumer. The company has developed a top-of-the-line and robust R&D setup in-house, while working with top food technology experts of the country, such as the former heads of R&D at companies like Britannia and HUL, to build best-in-class products ranges. Kapiva remains focused on innovating on more accessible nutrition, under the realm of Ayurveda. The purity and quality in the sourcing of ingredients have been given center stage.
Kapiva | Product Review
Kapiva: Target Market Size
Ayurveda is a ₹30,000-crore industry in India. As per 2020’s estimates, Kapiva is expected to cross ₹300 crores in revenue by 2025 and capture a significant part of this market. Kapiva’s market largely revolves around the Indian subcontinent, with a wide reach. Indians are believers in the power of Ayurveda and the modern Indian consumer is looking for a more accessible and convenient format of Ayurveda to consume its benefits. Kapiva has witnessed expansion abroad and is currently operating in the US, planning to expand to Canada and the European markets in the coming months.
Today, Kapiva has a portfolio of 50+ products and is present across the top online marketplaces (Amazon, Flipkart, Big Basket, PharmEasy, to name a few) as well as its own website (direct-to-consumer business model). The products are also available in 6000+ General Trade and Modern Trade outlets in the top cities of India.
Kapiva: Growth
Pre-COVID, the ayurvedic market typically witnessed 15-20% growth annually. Contrary to this, in the last quarter, many companies, large and small, witnessed growth between 50-90%. The adoption of Ayurveda as holistic, natural healthcare will have a positive impact on the market. Not just in India, the developing economic conditions of various nations are elevating the demand for Ayurvedic products globally. Ayurveda was considered a pharmaceutical approach earlier and was only used as a solution to specific problems. However, Ayurveda is actually about proactive, holistic health, and consumers are embracing it as such, now.
People around the world today, are focusing more on herbal products and leveraging herbal remedies to enhance their mental and physical health and wellbeing. The global Ayurvedic market was valued at Rs 300 billion in 2018 and is estimated to reach Rs 710.87 billion by 2024, as per Global Newswire. All of these are directly helping Kapiva to scale greater heights.
The company has grown to be a Rs 50 crore brand in just 3 years. Yes, Kapiva has witnessed a growth of Rs 0 – Rs 50 crore in revenue in less than 3 years. Some other growth highlights of Kapiva are as follows:
Kapiva currently boasts of having over 6,000 general trade outlets across 12 Indian cities and has been looking to expand it to 10,000+ outlets.
It has witnessed around 10x growth in the span of the last 30 months
It has launched 50+ products in 5 categories in 2020.
Kapiva: Business and Revenue Model
Kapiva follows a D2C strategy of business to deliver a true omni-channel experience of FMCG sales. The consumers of Kapiva’s products are typically in their mid-20’s to late 40’s, residing in Metros, Tier 1, and Tier 2 cities.
Kapiva has enjoyed a natural product-market fit, especially leading in certain categories such as Herbal Juices. The current strategy is to expand the footprint across channels, especially through marketing and new product development, both of which are being undertaken with a keen eye on consumer preferences. Customer focus determines the way forward for Kapiva.
Having its genesis as an offline brand, Kapiva had already enjoyed quite a success in the offline markets, which helped the company earn a turnover of about Rs. 3 crore a month in the first eighteen months or so. The company started focusing on online distribution from 2019 onwards. Therefore, it is the offline success that helped the company rapidly scale the online markets.
Today, along with its own D2C platform, Kapiva retails on all the prominent online marketplaces, from Amazon and Flipkart to Big Basket and Nykaa.
A major chunk of the company’s revenues comes from its digital channels. Furthermore, the products of Kapiva are also available across General Trade and Modern Trade outlets in the top cities of India, which also helps the company earn a considerable amount of revenue.
The company began by making its mark on online marketplaces such as Amazon. The herbal juices category was underrepresented on these platforms then, but the need was definitely present, as was the natural product-market fit. Kapiva capitalized on it and thus acquired the first batch of loyal users.
Kapiva: Customers/ Clients
Kapiva focuses very heavily on the right product positioning within a category, by taking great efforts to carve out compelling differentiators of the product before its launch. In addition, their strong go-to-market strategy helps with accelerated results as soon as they enter a category. However, above all, the company believes that it is the quality of their products which customers appreciate and call out the most, leading to better retention and word-of-mouth marketing.
Though the popularity of Baidyanath, which runs through the veins of Kapiva, helped the brand initially but standing as an Ayurvedic brand in a country dominated by allopathy is itself a laudable feat.
Kapiva initially started off as a chain of Ayurvedic clinics, through which high-quality products were sold as well. Pivoting from that clinic/retail model to the current FMCG model was also a challenge.
Fireside Ventures, Mohandas Pai Family Office, Marico Family Office (Sharrp Ventures)
April 2020
Series A1
INR 13.5 Crores
Jetty Ventures, Fireside Ventures, Marico Family Office (Sharrp Ventures)
Kapiva: Advisors and Mentors
Kapiva enjoys the mentorship of various experienced investors. The Baidyanath connection forms a valuable advisory channel as well.
Kapiva: Competitors
Kapiva competed with Patanjali, Dabur, Himalaya.
Kapiva: Recognition and Achievements
Kapiva has been awarded The Economic Times Emerging Consumer Brandof the Year 2020. Apart from that, the co-founders of Kapiva, Ameve Sharma and Shrey Badhani have been awarded Emerging Entrepreneurs of Year Awards in the Product or Manufacturing- Healthcare category.
Kapiva has grown from 0 to 50 crores in less than 3 years. It has scaled rapidly with over 3x increase in monthly revenue from March 2019 to March 2020. The company is expected to close FY21 with revenue run-rate of Rs 70 Crores per annum. Given the strong growth trajectory, Kapiva is all set for profitability within the next 2 years. Since launch, Kapiva has served more than a million consumers and is seeing good traction in, both, Indian and international markets.
The future plans for Kapiva are as follows:
1) Innovation through new product development. Kapiva’s range of immunity products is expected to expand soon, followed by products such as ayurvedic breakfast and ayurvedic effervescent drinks, which will cater to customers’ taste preferences, while being healthy.
2) Expanding the distribution network offline and scaling up the direct-to-consumer channel. Kapiva is currently present in 6,000+ general trade outlets across 12 cities. This is set to expand 10,000+ outlets and cover more cities by the end of this financial year. The direct-to-consumer channel has had a great growth story too – it grew about 20x in revenue in less than a year. It is expected that this strategic channel will grow another 5x this year.
3) Building their brand communication to share their story of modern ayurvedic nutrition. They are focussing on digital channels at the moment, since their customer base is largely present here.
The Food industry is one of the heavily crowded and therefore a competitive industry. Some restaurants are making great profits while some are losing the game. One of the major reasons for the failure of any startup, especially a restaurant or food startup, is not knowing how to market their restaurant. People can buy food from anywhere, then why you? So we have listed some restaurant marketing ideas and trends that actually work. This article will tell you how to do restaurant marketing so that you become the first choice of the customers.
A marketing strategy is a plan of action that is created by the manager to promote the product and sell it. Having thebest marketing strategies for restaurants is equally important for a new restaurant or food startup.
It’s a unique experience that people remember and visit your restaurant again and again. Over time you connect and create a bond which also helps you get word of mouth publicity. Now, let’s dive into some restaurant marketing strategies and ideas.
If you wonder how to market a new restaurant startup, the first thing you need to do is list your restaurant on all food delivery apps like Zomato or Swiggy. They take a commission per order so it’s a win-win for both. Try to list popular as well as non-popular (local) apps. After some time you can just focus on the top 3-4 from where most of the orders are coming. Well, there are the top 4 food markets in India that are quite popular: Zomato, Swiggy, UberEats, and FoodPanda.
Here are the factors which affect your revenue from food delivery apps:
Price Reduce
Price Increase
Offers
Delivery charges
Lesser price
Packaging Charges
Marketplace Commission
Taxes
You will need to plan and do all kinds of permutations to come up with a strategy to optimize for maximum profits from your restaurant startup.
Build Relationships with Customers
According to data, loyal customers constitute about 53-76% of a restaurant’s business. You should try to retain and build a relationship with customers who visit your restaurant regularly. For that, you can occasionally provide personalized discounts or coupons.
As you are a new restaurant startup, you can deliver their food personally, take a selfie, and put it across all social media channels and also ask the customer to do so. This is one of the best restaurant marketing hacks.
Try to write story-based articles about your restaurant or hire graphic designers to make comical posts for social media. It’s gonna be your best investment. You can share these stories on social media like Facebook, Instagram, Twitter and LinkedIn. Few content ideas on which you can work are:
How do we deliver food to our first customer?
Why our biryani is best?
Your conversation with the customers.
How do you help a customer by delivering food fastest?
Special delivery to destinations like railway stations, bus stops, etc. to show your reach.
Make Profiles on All Social Media Channels
Social Media presence serves as a way to communicate with your target audience.
Social media sites like Pinterest and Instagram (which draw visual attention instead of text) are a great way to showcase your awesome cuisines. Put mouth-watering images that make people drool at the food. Display your restaurant’s cuisines and their uniqueness with quality images.
Click photos of the dishes and upload them with name, price, history from where they emerged. This will help to get shares and will grow your page organically. If possible try to make more videos than images for more engagement.
Maintain Positive Reviews on Food Apps, Google and Facebook
After you are done listing on the marketplaces, add your business to Google My Business, Facebook, and other local listing sites. Once you are listed, try to get positive reviews and ratings by asking customers to do so. These are the places where new users check before ordering.
Every rating is important. Here are the things you can ask them to do:
Ask them to do Facebook check in when they enter your place.
For review ask them to click a picture, tag your restaurant and post.
Ask them to tag 3 friends whom they think should visit this place.
If customers are not doing it for free you can try a giveaway, discount, or free drink on their next order. Once they review your food/restaurant, do appreciate their efforts with a thank you reply. You just need to do this for some time until you build a reputation among the foodies.
Conduct Contests and Interact With Your Audience
Contents are a great way to engage with current users as well as get new followers. Ask people to tag your restaurant on Facebook and Instagram and win free food.
A restaurant in my locality takes some random alphabet and asks followers to tag their 10 friends whose name contains all those letters. They can win a free pizza from that restaurant. It does great engagement and brings new followers.
You can also ask old customers to name the new food items that they want to add to your menu.
Customize Food to Make it Your Signature
You cannot convince people to like the whole menu. Try to become a customer’s first choice for a particular dish in the market. Make your own signature food by customizing food that no one offers. It creates loyalty in customers and it’s like asking yourself a question “why should people buy from me”? Try to make 2-3 dishes famous to build your brand value. Put this food under the star/signature on your menu. It’s a long-term view. Eg: McDonald’s’ burger, KFC’s Fried Chicken bucket, etc.
Signature can’t only be on the basis of taste but also the way you present. Like if you serve Biryani in a printed Handi that will also be your signature. You can replace slow-moving items or low profit-making with innovative style.
Give Your Own Pamphlets in Delivery
Giving your own pamphlets while making a delivery from delivery apps will help your customer to know more about your restaurant. You can add some offers like a 10-15% discount if they directly order from your site or dine-in (You can save marketplace commission here). You can put pamphlets on your signature food if the order does not include any of those dishes & ask them to try once. Include phrases like “our best-selling item”, “more than 80k plates sold”, etc.
Find your restaurant business keywords and check how your competitors are using the keywords. Plan and write relevant quality content around the keywords. Start with free strategy and long term strategy SEO – Keywords, URL structuring, content, good domain name, hosting space, social media optimization, get quality backlinks with off-page strategy, etc.
Neil Patel, one of the most popular digital marketers, explaining some strategies of free local SEO.
Focus more on Local SEO, it is the key to winning the restaurant business.
Local Audience Targeting
Create a Facebook and Instagram page and always mention the location of your restaurant through Google Maps so that people can reach you easily. Data from Google Analytics can help you a lot to find users who would be interested in your food.
Do a grand opening/anniversary celebration and invite all local people. Later, you can conduct some local events like food festivals, food testing, cooking classes based on your demographics. You can promote it by posting in a relevant Facebook group. Additionally, you can do sponsored ads based on the Pincode of users. If the ad in local newspapers is too costly then try putting pamphlets in the newspapers.
Token of Appreciation
Give a small memento like a small gift piece or a fridge magnet or a beautiful jute bag with the name of your restaurant printed on it. This would generate a top of mind recall. Generally, people associate themselves with these gifts and become your advocate. You can also order customized name letter keychains in bulk; it will hardly cost you INR 7-10 per piece. You can put your brand logo on one side and the other side name letters of the customer. Ask people to post this giveaway on their social media to flaunt.
Collaborating with Other Business
You can tie up with other businesses like beauty salons and create offers. For an instance, if someone billed more than INR 1000 then they will get 10-20% discount coupons for that particular parlour. You can target kitty parties, where you can give this kind of discount to every woman there.
Try Introducing a Healthy Menu
Introducing healthy menu can attract health-conscious people to order from your restaurant.
Try a healthy menu with less oil, no refined flour, and by using healthy ingredients. You need to do research and finalize 10-15 new healthy dishes. Also, focus on having healthy balanced dishes. Brands like Eat.fit and Grow.fit are only focusing on them. Many people nowadays want to have plain food for regular dining.
Go Green
You can use eco-friendly cutlery to make your customers aware of how they can contribute to the environment each time they order from your restaurant. Yeah, it may make the price go a little high but an extra number of orders will balance it out. Today when many people are becoming aware of the need to adopt environment-friendly habits, such a step will surely help you gain customer preference.
Membership and Referral Program
You can have a membership program where each time people come with the membership cards they will get a discount of a certain percentage or a free dessert. Or if someone comes through the referral of any member, he/she will get a discount.
Great Packaging
Do creative packaging and also focus on the quality of the package. Small things like good quality reusable containers, tissue, and a small discount code for the next order goes a long way.
Happy Hour
Well, happy hours are not just for pubs and bars. You can also do happy hours specific to the target audience say just for kids, old or females on women’s day. This keeps your brand in talk among people.
Keep Connected with Old Customers
Use the emails that you collect from the marketplace/website to send a monthly newsletter/update about your restaurant. You can message the guests about the latest offers, new menus, and other information. You can wish the guests at the festival and on special occasions. It is a great way to engage with your old customers.
Tip to Increase Average Food Order Value
Tell people that this particular dish is best tasted with this + side dish. So they will order it along with the main dish and hence your total order value will increase.
Partnership for Bulk and Regular Order
Try to partner with social events and functions for bulk orders. You can also try offices and nearby guest houses where they do not offer food. Build a good relationship for recurring orders.
Combo Offer
Combo offers are great restaurant marketing ideas to entice customers.
You can combine low-selling items with something popular and offer them at a little discounted price.
Food Bloggers Meet
Every restaurant should have a good connection with food bloggers. It helps you to outreach to their audience, improves SEO, promotes exclusive events, and signature food. For more engagement, you can also take them to live and ask them to taste the food and give a live review. It works like a charm for restaurant startups. You must consider this as a part of restaurant marketing.
Competitors Analysis
Spying on your competitors can strengthen your position in the market.
Keep an eye on top competitors around. Do a weekly checkup and analyze what they are up to. Try to execute those ideas in a better way after some time. You can check out their website, social media and Google for the same.
Additional Tips For your Restaurant Startup
Always have the best chefs from the industry, Keep him/her happy.
Always think how can you improve things, it’s your full-time job.
Brand consistency.
Never ignore loyal customers.
Never compromise with the quality of the food.
Conclusion
Keep experimenting based on trends, location, and interest. Make a brand in any one item so that people remember you for that dish. Also, if you plan to hire any digital marketing agency to take care of your social media you should set pricing based on performance and engagement not just numbers of published posts. This might be obvious but as a restaurant startup, many entrepreneurs do not have much knowledge of marketing. Hence, they become vulnerable to being cheated by small marketing agencies.
Hope you find these restaurant marketing ideas useful!
FAQs
What is a marketing strategy example?
Each marketing strategy can communicate to a target market the benefits and features of a product. Apple, forexample, has invested in creating advertisements for billboards, television, and magazines that showcase their products in such a way that their customers feel an affinity towards Apple’s products.
What are the 4 marketing strategies?
The 4 Ps of marketing is a famous concept that compiles the 4 basic pillars of any marketing strategy: product, price, place, and promotion.
What makes a restaurant stand out?
Make your restaurant stand out by not just giving your customers what they want, but by telling them what’s new, exciting, delicious, and otherwise unavailable. In order to be a trend-setter, you have to know your target customer very well and figure out what’s popular in their zeitgeist.
How do restaurants do marketing?
Some creative marketing strategies for small restaurants is to outshine your competitors on social media.
Show off your menu with a video ad. Videos allow you to go more in-depth than photos and can engage potential customers.
Make it easy for them to consume information – Use emerging technology.
How do I market my restaurant 2021?
List on Food Delivery Apps & Marketplaces
Build Relationships with Customers
Make Profiles on All Social Media Channels
Maintain Positive Reviews on Food Apps, Google and Facebook
Conduct Contests and Interact With Your Audience
Customize Food to Make it Your Signature
Local SEO is The Most Important
Local Audience Targeting
Token of Appreciation
Collaborating with Other Business
Membership and Referral Program
Combo Offer
Food Bloggers Meet
Competitors Analysis
How do you market a restaurant menu?
Promote new items with attention-grabbing tactics.
Use social media platform to spread the word.
Conduct food bloggers meet and ask them to try out the new dish and post the pictures on their social media page.
Think about your school textbooks, do you remember some section that said “There are three main types of activities that humans do” ? The three main activities are primary, secondary and tertiary activities. Primary is agriculture and raw work, Secondary is manufacturing using raw stuff, Territory is service providence.
We all have been taught through our schooling that Humankind’s primary work is and always was “Agriculture”. We see little variations here and there, like technology being used as a helping hand, but agriculture is a field that has been constant for a long time now. Today here we are gonna talk about a type of farming that has been practiced from as early as the 1650s. It is known as Seaweed farming.
Seaweeds are millions of species of algae found in the sea. It is macroscopic marine algae. Algae is an informal term for a diverse group of photosynthetic eukaryotes(organisms). Seaweed is consumed across the world, it can also be used to produce edible packaging.
Seaweed Edible Packaging
Seaweed farming is a part process of Algaculture, that is agriculture of algae. Seaweed is macro-algae, that means they can be seen with naked eyes. Thus we can actually create farms in an ocean, sounds fictional right ?
If you think seaweed is used just in Asian dishes like sushi, think again. It can be found in almond milk, baby food and lotion. Kelp is used in making, animal feed, medicine, fertilizer and even in your beer.
The commercial seaweed market size could surpass $85 billion by 2026, according to Global Market Insights. Seaweed farmer Bren Smith says all one needs to start the business is $20,000, 20 acres and a boat, and that investment in a single seaweed farm can net up to $90,000 to $120,000 per year.
Here’s why the global demand for seaweed is expected to boom in the coming years.
Sustainable
Seaweed farming
Seaweed farming needs no fresh water, no fertilizer and no feed. All these traits make this farming one of the most sustainable farming methods out there. This method of food creation not only requires less inputs but also absorbs carbon and nitrogen from the environment and rebuilds reef systems underwater.
Kelp is not only good with maintaining sea life it is also useful and sustainable in other ways too. Research shows that around 50 to 80% of the total environment oxygen supply comes from seaweed, that is nothing but plants in seas. It is a good biofuel also as it is photosynthetic.
Cows produce a lot of methane. That is a greenhouse gas. It was found by a university that adding a small amount of kelp to the diet of cows can help minimise the Green house gases.
Abundance
There are almost ten thousand types of kelps (seaweeds) in water. This makes it abundant in variety and accessibility. It can also be seen as an alternative for Overfishing. Which is a decline of fish in water bodies because of excessive fishing by humans.
Kelp will help in better balancing the life ecosystem in the seas and outside. That is the reason some people even like to call it “Restorative ocean farming” as it helps rejuvenate sea life.
Usability Factor
As mentioned earlier, seaweed is super useful in many forms and ways, like you can actually list them. It is used in almond milk, baby food, lotion, animal feed, medicine, fertilizer and even in your beer. Kelp is used as additives, dental moulds, wound dressing, dispersing and thickening agents in soups and other personal care products.
McDonalds even went one step forward and made a seaweed styled burger. Packaging the burger as a lighter burger. That is super light in calories, containing about 91% less calories. The burger stayed on the menu for 5 long years.
McDonalds Seaweed Burger
However we discussed some pros or advantages for seaweed farming, it would not be justified if we don’t point out the few negatives or cons of alga-culture.
Overhead Costs
The overhead costs of setting up a seaweed farm is quite much and can be hard for someone to adapt to it quickly. As we see a rise in the number of people getting intrigued by this way of farming and the increase in the number of sea farmers, we hope that this cost will be lowered in the upcoming time.
The Seaweed Squad – India
There lives a group of women in southern India’s Rameshwaram involved in seaweed culture forming probably the first Women seaweed squad. Under the coastal disaster coastal risk reduction project the government was trained to cultivate seaweed. The project was funded by World bank and focused on increasing sustainability and opening floodgates of opportunities for womenfolk in the region.
Widows and single women are prioritized to form self help groups for initiation. This is surely a welcoming indicator. It made them independent and confident. This instance shows that India can be seen as a popular landmark for seaweed farming. Watch video below to know more,
Conclusion
The World is excited about this method and it is expected to be a boom in future. Seaweed doesn’t need fresh water, doesn’t need soil, doesn’t need farming or even fertilizer. It absorbs carbon dioxide while releasing oxygen. It is nutrient-dense and fast-growing, Moreover supports communities built around coasts.
Whether seaweed will be the future of farming or not, it is yet to be seen. The method may be old and sustainable but it is yet to be accepted and welcomed throughout the world. It is already one of the fastest growing sources of food.
It will have to face resistance from communities around the globe(as it is a new way to look at farming for many) and eventually pass with good grades. What we can say for sure at this point of time is that it definitely has scope, good potential and value addition. It entails all the qualities of a good resource.
FAQ
Is seaweed farming environmentally friendly?
Yes, Seaweed is the most sustainable form of agriculture on the planet.
Is seaweed easy to farm?
Seaweeds relatively simple to farm, they require no feed, they grow fast, they reduce eutrophication, they absorb carbon, they are simple to harvest, and the culture equipment is cheap and simple.
Is there growing seaweed profitable?
All one needs to start in the business is $20,000, 20 acres and a boat, and that investment in a single seaweed farm can net up to $90,000 to $120,000 per year.
Damini Bhandary
