The PPP (Public Private Partnership) Projects in India have provided mixed results. The country had faced problems in regards to land acquisitions, overextended balance sheet, contract disputed and lack of a mechanism for the resolution of disputes.
Certain projects have left the large public sector banks to end up with bad loans. However, the Finance Minister has announced a new policy to fasten the PPP projects. In this article let’s look at the new project announced by the government.
The Finance Minister of the country, Nirmala Sitharaman on 28 June 2021 had conveyed a new simpler and more efficient and effective approval process for the PPP projects as well as financing of the core infrastructure projects that will be formulated in the country.
This new formulation will help the CPSEs (Central public sector enterprises) to fasten up the asset monetization. The Finance Minister announcing various economic relief measures had conveyed that the current measure requires a lot of approvals for Public Private Partnership projects and was really long.
What are PPP Projects?
PPP projects are the process where the public services are delivered by the private entities which are awarded through a competitive bidding process. These projects are typically run on the lines where the private entity would build it, operate it for some time and later transfer it.
This method of undertaking the projects is favored by various Governments on a global basis as it makes up for the shortfall of the investments the Government of a particular country can undertake.
Experts convey that the PPP strategy holds promise for the creation of infrastructure if the financing sector is tied up.
The new policy for the approval and the appraisal of the public private partnership proposalsand financing of the core infrastructure projects, including the one through InvITs (Infrastructure Investment Trusts) is aimed at providing and assurance for a faster way towards clearance of projects and to provide support and facilitate the efficiencies of private sector in regards to monetize construction and the management of the infrastructure.
Nirmala Sitharaman added that, this new policy will help in moving ahead with the proposal of budget regarding the financing of assets.
T V Somanathan, who is the expenditure secretary has conveyed that the further details of the project will be announced by the Department of Economic Affairs. In the Budget Speech of 2021-22, Nirmala Sitharaman had announced that operating the public infrastructure assets is a very important financing operation for the new construction.
She had stated that there would be a launch of a national monetization pipeline of a potential brownfield infrastructure asset.
Some of the core infrastructure assets that will be covered under the asset financing programme are the toll roads that are operated by NHAI, transmission assets of the PGCIL, the oil and gas pipeline of GAIL, HPCL and IOCL, AAI airports in the tier II and tier III cities.
The other core infrastructure assets included under this programme are railway infrastructure assets, sports stadiums, warehousing assets of the Central Public Sector Enterprises such as the Central Warehousing Corporation and NAFED.
Conclusion
The new PPP project policy that is stated by the Finance Minister seems to have scope for undertaking a fast track on completing the infrastructure projects and to facilitate the efficiency of private sectors in regards to monetization on the projects.
FAQ
How do PPP projects work?
Public-private partnerships allow large-scale government projects, such as roads, bridges, or hospitals, to be completed with private funding.
What does PPP mean?
Public-private partnership (PPP), partnership between an agency of the government and the private sector in the delivery of goods or services to the public.
How many active PPP projects are there in India?
There are around 1,069 active PPP Projects in India.
Are you eager to know all about the business model of WhatsApp? If the response is yes, then this blog is all you need.
There would be hardly anyone on this planet who is not aware of what WhatsApp is? It is one of the most vital communication tools. It’s not like WhatsApp doesn’t have any competition, there were several players like Line, Wechat, Fiverr, but nothing compares to WhatsApp. Every single user who uses smartphones has this one application installed on the phone.
It is the application that keeps us connected with family, friends, and colleagues. We utilize WhatsApp’s functions for a variety of purposes. Thus it has become an indispensable tool in our everyday lives. The platform has a wide variety of applications and may be used for both professional and personal reasons. For example, to send text or voice messages, photos, and videos to our loved ones and friends, we choose to use the app.
Statistically speaking, it has around 2 billion active monthly users in roughly 180 countries across the world. These figures outnumber active members of many other popular messaging applications like Facebook Messenger, WeChat, etc.
The men behind Whatsapp are Brian Acton and Jan Koum, who used to work in Yahoo. Jan Koum was the one who came up with the idea of Whatsapp. The journey began when he purchased the iPhone in January 2009. He instantly identified the potential of the app business on the App Store, which was only just several months old at the time. He intended to create an app that displayed user statuses beside their names. After discussing the concept with Acton, the two went to Alex Fishman for further information. They worked on the idea, created the iOS version, and established the ‘WhatsApp inc.’ in California. The idea behind the name to be “Whatsapp” was to make it familiar with what’s up. It is pretty catchy.
None of their friends and family liked the initial version because it was consuming battery, the app was crashing, and much more. When Apple launched its push notification update, most users found it fun which led to Whatsapp 2.0. The plan was to build an instantaneous messaging platform for everyone.
People were enthralled by the prospect of checking in with simply a phone number and sending texts to friends through the internet rather than through carrier SMS plans. Because rivals like Blackberry’s BBM were just for Blackberry users, and G-Talk and Skype ask users to provide a unique ID to interact with others, consumers liked this WhatsApp, because it is free from such restrictions.
WhatsApp became a handy software due to its user base growing to 250,000 in only a few months. The software was initially released on the iPhone app store, and then after a few months, it was available for Blackberry. In December 2009, the ios version was updated to enable users to exchange photographs, and an Android version of the software was released in 2010. Both creators became billionaires without ever placing an ad on the app.
The application was first charged in the shape of a yearly fee or an initial installation cost, and many users were prepared to spend for it. Later, in 2013, the installation fees were eliminated, and the setup became utterly free. After that, a $1 yearly subscription charge was meant to be paid by members.
Facebook bought WhatsApp
Furthermore, between 2011 and 2013, Sequoia Capital invested $60 million in WhatsApp, including $8 million in round one and $52 million in the subsequent round. In February 2014, Facebook bought Whatsapp for $19 billion, making it the company’s biggest purchase deal. After that, further developments in App services came into existence. At the beginning of 2016, the $1 membership charge was eliminated.
WhatsApp Business Model
WhatsApp- Business Model
Now comes the question: what is the business model of WhatsApp, and how was the company earning in the starting year. Below are the pillars of the WhatsApp business model:
1. Value Proposition – WhatsApp has given its users a lot of value. The brand’s core value proposition comprises its appealing and trustworthy characteristics and its accessibility, affordability, simplicity, low-risk element, and brand recognition. However, the very thing that attracted the customer was the plethora of features like sending message audio and video to friends without worrying about logging in and out. The best part was you can send messages for free all you need is a data pack that attracts the customer towards the platform. In addition, WhatsApp’s security standards are robust, which minimizes the danger element. It sends encrypted communications and guarantees that each communication transmitted through the app has a distinct lock and key. This feature builds trust among the customer.
2. Customer Segments – WhatsApp’s users are mostly smartphone users. It is used by everyone from teens to adults to the elderly. The app’s intended audience is users who wish to interact with one another for personal or business reasons. This software is a valuable tool amongst international users since it allows them to connect with relatives, friends, and co-workers who are not in their own country. Business owners also use the app to communicate with their consumers and conduct promotional events.
3. Focusing on Partners – WhatsApp’s team formed crucial connections with far more than 50 carriers worldwide. One of the most profitable relationships has been with Sequoia Capital, which provided a significant amount of funding to the brand and played a large part in its growth and career expansion. In addition, WhatsApp frequently forms strategic agreements with mobile firms to grow its services and user base. App shops, OS integrators, and various banks are among WhatsApp’s other significant partners.
4. Focusing on Resources – The central part of the WhatsApp business model is focusing on resources. They have three types of resources which are physical, human, and organizational. The application’s biological resources are mostly its software and hardware. WhatsApp has a fantastic group of engineers who make up an outstanding development team, representing the company’s human resources. WhatsApp’s unique software suite is the company’s most important organizational resource, with over 2 billion people worldwide. These assets also include the brand’s significant collaborators, such as telecom carriers, device makers, software engineers, and others, who helped the brand grow its user base.
5. Focusing on Aim – The aim played a considerable role in the WhatsApp business model, which is to be a reliable platform for people all across the globe; that’s why they work on enhancing support, providing security, privacy, and much more.
6. Channels – WhatsApp’s main outlet is its smartphone app. The marketing materials used by the business to market its goods include social media postings and its site. Other options include Google Play, the App Store, and other portable devices.
7. Customer Relationship – Customer relationship plays a crucial part in app success, and WhatsApp keeps that in mind. The brand’s website is set up to respond to a variety of commonly asked questions by visitors. In addition, personal support is given via built-in email assistance. Furthermore, WhatsApp’s customer relationship includes a zero-ad policy, ethical use of social networks, truthful blog posts, and end-to-end encryption, among other things.
8. Revenue Generation – Watsapp was very clear about not displaying ads on the application. But to survive, it is essential to generate a source of money. As a result, in some regions, the company implemented a paid service in which consumers were obliged to pay a $1 yearly renewal fee.
Following Facebook’s takeover of WhatsApp in 2014, the company has devised a new revenue-generating strategy. The following are a handful of the company’s brand recent income initiatives.
1. Whatsapp for Business – WhatsApp Business, an enterprise app, was introduced in January 2018 to help small companies. This app was created mainly for businesses to communicate with their consumers or shoppers. Further, WhatsApp Enterprise Solution was designed by Facebook for big companies with a worldwide customer base. Using WhatsApp conversation, they might provide e-commerce or customer care.
To sum up! This is all about the WhatsApp business model. The company is a familiar name to everyone. There is no contradiction in the point that this platform has revolutionized the way we communicate today. It has taken over SMS, MMS, and other services. The software is popular among all age groups, and with Facebook’s control over it, we will see more WhatsApp in coming years.
FAQs
Who is the founder of WhatsApp?
Jan Koum and Brian Acton have founded WhatsApp in 2009.
When was WhatsApp acquired by Facebook?
Facebook has acquired WhatsApp in 2014.
Is WhatsApp business free to use?
Yes, WhatsApp Business is free to download and use.
Who pays for WhatsApp calls?
WhatsApp Caller and receiver, both parties pay data charges to call and receive a call from thenetwork being used for the WhatsApp call.
Is WhatsApp payment available in India?
WhatsApp Payment service is now available for up to 20 million users in India. It has been designed on the National Payments Corporation of India’s (NPCI) Unified Payment Interface (UPI) system.
The Covid-19 had created a huge impact on the Indian economy and the lockdown due to the second wave had left a lot of people unemployed and a lot of businesses around the country to be closed down. However, the Government has announced various Economic Reliefs to boost the economy concentrating on various businesses and startups. In this article let’s look at more information on the Economic Relief Measures.
The Finance Minister of the country, Nirmala Sitharaman had addressed the press conference on 28 June 2021 and has discussed about various economic relief measures. The Finance Minister has addressed various reliefs for the sectors affected due to Covid-19.
ECONOMIC RELIEF MEASURES announcements by Hon. FM @nsitharaman
— Office of Mr. Anurag Thakur (@Anurag_Office) June 28, 2021
Loan Guarantee Scheme
The Finance Minister has announced a Loan Guarantee Scheme for the affected sectors due to Covid-19 of around INR 1.1 lakh crore. The Government will provide a guarantee coverage that is 70% for new projects and around 50% for the expansion and the duration for the guarantee will be up to 3 years.
This is concentrated on the health sectors and medical infra specially targeting the underserved areas would get an amount of INR 50,000 crore. Other sectors would get INR 60,000 crore and the interest rates would be around 8.25 % p.a.
ECLGS
The Emergency Credit Line Guarantee Scheme of an additional INR 1.5 lakh crore has been announced. The coverage on Contact-Intensive sectors will be continued and the loan amount that is proposed and the limit of admissible guarantee is expected to increase above 20%.
Support to the Tourism Industry
The Government has announced to provide support to the tourism industry by providing monetary support to more than 11,000 travel and tourism stakeholders and tourist guides. The tourism sector will also be provided with loans under the new loan guarantee scheme for areas affected due to Covid.
The Government has announced that it would provide loans that are 100% guaranteed up to INR 10 lakhs for the Travel and Tourism sector agencies and an amount up to 1 lakh for the licensed tourist guides.
The Finance Minister also announced that they would provide free tourist visas and conveyed that once the issuance of visas is restarted the first 5 lakh visas will be issued free of cost and that is offer will be available only once per person. This scheme will be valid till 31 March 2022 or until the number reached 5 lakh tourists.
The Atmanirbhar Bharat Rozgar Yojana has been extended from 30 June 2021 to 21 March 2022. The scheme provides incentives for the employers in order to increase the new employment opportunities through EPPFO.
The Government has also approved an outlay of INR 22,810 crore that is expected to benefit around 58.50 lakh beneficiaries by providing them with a monthly wage of around INR 15,000. So far, the benefits of around INR 902 crore have been given to around 79,577 beneficiary establishments.
Nirmala Sitharaman also stated through the press release that through this scheme from the last October until 18 June 2021 around 2.14 million people have been benefited from around 79,577 establishments.
Subsidy on Fertilizers
An additional subsidy for P&K fertilizers and DAP fertilizers has been announced. The NBS subsidy has been increased to INR 42,275 crore in the FY 2021-22 from INR 27,000 crore in the FY 2020-21. An additional amount of INR 14,755 crore is announced to be provided for DAP as well as NPK based complex fertilizers.
The Government has also conveyed that an amount of INR 85,413 crores has been paid to the farmers.
Underwriting of Additional Projects
The Finance Minister also said that there would be underwriting of the additional export projects through the EXIM bank that is worth around INR 33,000 crore. The Minister also conveyed that in the span of the next 5 years there would be an equity infusion in the Export Credit Guarantee Corp of INR 88,000 crore.
Other Economic Relief Measures
Some of the other announcements during the press release include providing a viability gap funding of INR 19,041 crore for broadband connectivity in villages through Public Private partnerships, flexibility in claiming incentives linked to production by the large-scale electronics manufacturers, etc.
Conclusion
Narendra Modi, the Prime Minister of India had tweeted that the announcements will help in stimulating the economic activities, boost the production and increase the exports as well as increase the employment opportunities.
FAQ
How did Covid 19 impacted Indian economy?
The economic impact of the COVID-19 pandemic in India has been largely disruptive. India’s growth in the fourth quarter of the fiscal year 2020 went down to 3.1%
Is the Visa free under the Economic relief measure by the government?
The first 5 lakh visas will be issued free of cost and the offer is only available once per person.
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 the organization it is based on.
Money is a very important character in today’s world. But being cashless is a trend too. Before it was difficult for the people to roam around here and there without money. But now things are changing. People usually go here and there cashless making the most out of it.
Mastercard is a technology company. It is enabling people to enjoy financial freedom. It is empowering people everywhere. Secured and simple shopping’s are always made with the help of Mastercard. Dreams are no more dreams now. It is changing into reality. Read the Mastercard Success Story below.
June 28, 2021 – Mastercard buys stake in Bangalore-based Fintech startup, Instamojo, aiming to help MSMEs and gig workers to set up their online stores equipped with online payment facilities.
June 24, 2021 – Mastercard appoints Nikhil Sahni as the company’s Division President of South Asia. Sahni takes over the role from Porush Singh and joins with around 25 years of experience.
Mastercard – About
Mastercard is an American multinational financial services company. The job of the company is to help consumers make payments between the bankers and the purchasers. This is only applicable to the people who are having ‘Mastercard’ branded cards such as credit cards, debit cards and prepaid cards for the purchases. From the year 2006, it is a publicly-traded company.
Mastercard – History
Between 1960 to 1966, the United States only had 10 credit cards. But again from 1966 to 1968, the country saw around 440 credit cards. Those were introduced by both small and large banks. In the year 1966, Interbank brought a new brand. ‘Master Charge’ was the name. The same year Everything Card was merged with Master Charge. In 1979, ‘Master Charge’ was renamed as ‘MasterCard’. Access card was taken over by Mastercard. After that, the brand retired. In 2002, Europay International got merged with MasterCard International. In the middle of 2006, MasterCard International was renamed as MasterCard Worldwide.
Mastercard – Founders and Team
Wells Fargo is a financial services company. It is an American multinational company headquartered in San Francisco, California.
Michael Miebach is currently the CEO of Mastercard and a member of the company’s board of directors. He has taken over the position from Ajaypal Singh Banga (former CEO) on Jan 1, 2021.
Michael Miebach | CEO, Mastercard
Mastercard – Tagline, Slogan And Logo
The tagline of the company is, “There are some things money can’t buy. For everything else, there’s MasterCard.”
Also the current advertising campaign tagline is, “Priceless”.
The current Logo of the company is-
Mastercard Logo
Mastercard – Business Model
The company provides its service to over 210 countries and territories. It avails its service in more than 150 currencies. It has got a similar way of working like Visa. Transactions made by Mastercard have got 4 parties within it. A consumer, his/her bank issuer, a merchant and his/her acquirer bank. An account holder always owns a Mastercard to make the buy with a merchant. Once the transaction is over. The bank issuer pays the cost of the transaction to the acquirer bank. Interchange fees plays a major role here in providing value to the merchants whoever accepts Mastercard payment products.
The company doesn’t generate any revenue from its interchange fee mentioned above. It gains money from financial institutions like banks who issue cards. They also earn from the transaction fees. Consumers basically do not pay Mastercard directly. Those are paid to the financial institutions. Mastercard is making money by charging those banks. Connectivity fee and a switching fee is charged. Switching fee is charged whenever an approval for authentication is required. The processing fee of the company is increasing almost every day.
The company is growing fast. In the year 2018, they collected revenue of around $15 billion. An increase was seen in the next year. In the year 2019, the revenue increased by 20% to 21% more. Whereas Visa saw a growth rate of 11.7%. In the year 2019, Mastercard’s sales growth was 12.2% and Visa’s sales growth was 11.5%. Mastercard is now in a partnership with Apple. More growth will be seen as the new card won’t be having any numbers on it. Security is ensured here for its consumers.
Mastercard buys an equity stake in Instamojo, as of June 28, 2021. The latter is a Bengaluru-based startup that aims to bring a ready-made virtual platform to small and micro merchants with which they can set up their eCommerce website and accept payments online. With this investment, Mastercard discloses its future plan of helping legions of MSMEs to digitize their business and set up their online stores with smooth and easy digital payment options.
Mastercard – Competitors
The top competitors of the company are Visa, AmericanExpress and Discover.
Visa is the biggest rival of Mastercard. It was founded in the year 1958. It is headquartered in Foster City, California. The company collects more revenue than Mastercard.
American Express is one of the top competitors of Mastercard. It is headquartered in New York. The company was founded in the year 1850. It has got more employees than Mastercard and generates 245% of Mastercard’s revenue.
Discover is also one of the top competitors of Mastercard. The company was founded in 1985. It is headquartered in Carol Stream, Illinois.
The company is aiming towards diving into cross border transactions as well. The stock of the company is up by 47% from 23rd March 2020. It has plans to own a banking company. It specializes in data aggregation worth $825 billion. Consumers are thinking about the cash to bring the concept back. But there are few people who want things to remain digitized. In a press release, Mastercard revealed that open banking is a new growing trend and it is super important for them. By acquiring Finicity, Mastercard will not have to update their own open banking strategy.
Mastercard – FAQ’s
What Mastercard means?
MasterCard is a payment network processor. MasterCard partners with financial institutions that issue MasterCard payment cards that are processed exclusively on the MasterCard network. MasterCard’s primary source of revenue comes from the fees it charges issuers based on each card’s gross dollar volume.
Which banks use Mastercard?
American Heritage FCU
Bancorp South
Bank of the West
BMO Harris Bank
Capital One
Celtic Bank
Chase
Citi®
Is Mastercard accepted everywhere?
Most of what you get with a card comes from the issuer. Visa and Mastercard are both accepted just about everywhere that takes credit cards. With only a handful of exceptions, any place that takes one will take the other.
Where can I withdraw money from my Mastercard?
You may withdraw cash against the balance on most Mastercard prepaid and gift cards at any ATM. However, not all prepaid and gift card issuers allow ATM or foreign transactions. Be sure to check with your card issuer to ensure that these types of transactions are permitted.
Why is Mastercard not accepted?
Mastercard isn’t accepted everywhere that you may find yourself spending money. That’s because Mastercard is a card network, not a card issuer. In other words, it dictates where your card will be accepted and what secondary benefits – rental car insurance, for example – you may receive.
Who is Mastercard owned by?
Mastercard Worldwide has been a publicly-traded company since 2006. Prior to its initial public offering, Mastercard Worldwide was a cooperative owned by the more than 25,000 financial institutions that issue its branded cards.
Mastercard – Conclusion
Mastercard is into a more digital world where the continued application of new technologies will further enable payments to become more seamless in the overall purchasing experience while bolstering cyber services and data-powered insights.
Mastercard is a company that is more inclined and focused with a constant commitment and dedication to delivering value to consumers, businesses, and shareholders. The company is working to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart, and accessible. Using secure data and networks, partnerships, and passion, our innovations and solutions help individuals, financial institutions, governments, and businesses realize their greatest potential. The companies decency quotient, or DQ, drives the companies culture and everything they do inside and outside of the company.
The Covid-19 had affected a lot of families in India and has also wiped out a lot of wealth of many individuals and left many others unemployed. In order to provide a relief to the tax payers, the Income Tax Department of the country has announced certain tax benefits and reliefs for the taxpayers. In this article let’s look at some of the important announcements.
Anurag Thakur who is the Minister of state in the finance ministry had confirmed about the tax exemptions and the development regarding it. He conveyed that the amount paid by an employer to an employee or any other person for the treatment of Covid-19 for the year 2019-20 and the subsequent years will not be taxed.
The Finance Ministry had released a report in detail about the information. As per the reports, any amount spent by anybody for the treatment of the employee or someone else would-be tax free. In simple terms, the person who has paid for the treatment and the beneficiary who has received the payment will be exempted from tax.
Tax Exemptions for Employees
The Government has announced exemptions on the tax that is received by employees from their employer or any other person for the treatment of Covid-19. The Government has stated that many employees and individuals have received help from their employers and other well-wishers to meet the expenses of their Covid treatment.
The Press release has conveyed that in order to make sure that an individual would not have any liability on the income tax payment that arises on this account, the Government has decided to provide exemptions for the employees or the individuals or the tax payer for the amount received by their employers or well wishers for the payment of the expenses caused for the medical treatment of Covid-19 in the FY 2019-20 and the subsequent years.
The Government has also conveyed that there won’t be any tax on the ex – gratia payment that is received by the family member of the deceased employee due to Covid-19. The Government has conveyed that there wouldn’t be any tax charged on the amount that an individual has received as a help from the family, friends or relatives due to Covid-19. The amount exempted from the tax would be up to INR 10 lakhs.
This is considered to be one of the most important relief and a much needed one that is bought in by the Income Tax Department. The taxpayers have faced a lot of difficulties whenever they were hospitalized or under the treatment and the medical expenses for the Covid-19 had turned to be costlier for a lot of people.
The exemption for the amount received for the medical treatment would provide some relief for the taxpayers and their families as well. It is considered that the families who have lost a member would get benefited by providing exemptions on the ex – gratia amount received by them.
Deadline extended by the Government
The Government has extended the deadline for linking PAN cards and Aadhar cards to 30 September 2021 from 30 June 2021 as many people were facing troubles in linking the PAN with Aadhar cards. The deadline for making payment under the Vivad Se Vishwas Scheme has also been extended till 31 August 2021.
The deadline for the Tax Compliance for the deadline for saving Capital Gains tax has also been extended to 30 September 2021.
The move from the Income Tax Department of the country would help a lot of families and taxpayers to come out of the financial crisis they are currently facing due to the pandemic and this would provide a relief for them.
FAQ
What is exemption in income tax?
Tax exemption is the monetary exclusion that reduces the taxable income which include exemption of charitable organizations from property taxes and income taxes, veterans.
Who are tax exempted for Covid-19 treatment?
The government stated that tax exemption will be presented to the amount received for medical treatment from the employer or the third party for treatment of Covid-19.
What is the limit to the tax exemption provided for Covid-19?
The exemption shall be limited to Rs 10 lakh in aggregate for the amount received from any other persons for Covid-19.
In this new Insight series we connect with industry professionals to gain idea on starting and scaling a D2C Brand. It features startup experience, growth hacks, D2C industry highlights and learnings directly from expert!
A little background, D2C brands are companies that built its offering around direct digital marketing channels as opposed to selling through an online marketplace, retailer, or auction site. In D2C (Direct to Customer) business model, any seller/manufacturer willing to sell their products directly to end-customers can set up an online website cum store, or promote the products on various social media platforms eliminating the middleman.
StartupTalky exclusively interviewed Sujata Pawar, Co-founder & CEO of Avni to know her perspectives on D2C Brand & how she and Apurv scaled Avni to over 27 retail stores & served 5,000 women in just 1 year! Founded by wife-husband duo Sujata Pawar and Apurv Agrawal in 2020, Avni provides innovative and eco-friendly menstrual care products.
1.From where did it all begin? It’d be great to walk through the initial journey of Avni.
Sujata Pawar comes with a background in pharmacy. She was already working on a venture when she had an uncomfortable personal experience using commercially available sanitary pads which led to rashes. She started researching the issue and figured that the only reason for the skin troubles she was facing was the chemical-based pads. She got to know that not only were these sanitary napkins causing skin troubles but also affecting the environment and sanitation workers.
When she wanted to opt for a more sustainable alternative, she learned that there were no products that were viable on all these three grounds. Then she decided to address this gap by launching Avni, a menstrual healthcare startup, which is also environment friendly. Over the period, the co-founders realized that sanitary napkins cannot alone replace all the products that cater to menstrual needs as a lot of women use different products that are causing harm. The brand then launched the Avni Ezeepad and Avni cups.
Avni Logo
As an entrepreneur moves ahead, one by one he notices other obstacles too. Along the journey, the co-founders realized that there is less awareness, and more fear due to the lack of reliable support for women when it comes to the choice of products. Thus, the brand launched India’s First 24X7 period helpline accessible via whatsapp/call/sms which will make the transition smooth and help women develop a sustainable period routine. Putting the efforts in the right direction did prove fruitful for the brand. The brand raised INR 65 Lacs in seed funding in April 2021 from WeFounderCircle. All in all, the brand has already reached over 5000 customers.
2. How do you differentiate yourself from other D2C brands in the ecosystem? Highlight the USP, Features & the problems that Avni tends to solve.
Avni has been putting all its efforts towards creating menstrual care products that are skin-friendly, chemical-free, and do not cause any harm to the environment too. While pursuing this ambition, co-founders came across the fact that the traditional methods that women used to follow during periods were way more effective than the current commercially popularized options. For example, cloth-based pads were never harmful, only the use of dirty cotton cloth can cause infection. Digging deeper unfolded the better alternatives and formed the foundation of Avni product line.
Products – Avni Ezeepad, Avni Cloth pad, Avni Menstrual Cup
3. The pandemic has posed its own challenges & opportunities. We are intrigued to know how it impacted the D2C industry in general and Avni in particular?
The pandemic did impact all the industries and activities. However, we maintain availability on most of the eCommerce platforms including – Amazon, Flipkart, Snapdeal, 1mg, Qtrove, Shycart, Vayas Sakhi, Upciclo, ThePinkBox etc. However, what intrigued us more during the pandemic was that even the lesser privileged face this monthly cycle and the challenge of unavailability of the products. In order to address the same, we tied up with local NGOs in different regions across the country and ran a drive to educate them and provide the young girls, and underprivileged women with the Avni product kits. Each of the product kits could easily cover their periods for over 4 years.
4. What are the offline & online marketing strategies adopted by Avni? How do you ensure that your D2C brand is known across the nook & corner of the target market?
As we are in a space which is sensitive and has taboos associated with it, we are working on increasing the awareness regarding best menstrual health practices. We conduct live interview sessions with experts from this field who share their views, their experience which could be useful women & girls across ages. As we started during Covid times, we only had online channel at our exposure. One thing that worked in our favor was that ours is an essential commodity. To have reached to various customers, we listed our products in the most common and trusted online platforms in India. We are now present on Amazon, Flipkart, Snapdeal,1 mg, Qtrove, Shycart, Vayas Sakhi, Upciclo, ThePinkBox with presence in few more platforms expected to be completed in the next month.
5. Amongst 1000s of companies in the D2C domain, how did you evolve Avni’s brand identity & create brand loyalty amongst customers?
With information overload these days due to accessibility of internet, everyone is confused on the correctness or authenticity of source. Since our founders are from healthcare background, we wanted to ensure that information passed on by us if authentic and from a verified source. Once we are able to help customers with right set of information, trusts start building which results in long lasting customer loyalty.
6. How does Avni’s supply chain model add value to the company? What does the process look like?
All our products are developed in-house and Made in India, in line with our honorable Prime Minister’s vision of Atmanirbhar Bharat. All our products are manufactured as per our raw material and final product specifications. Once a customer places order, the order is dispatched from our central warehouse after quality checks and customized packaging. With a robust supply chain, we are able to cater to almost 29000 pin codes. Our customers receive emails messages at each and every stage of orders processing, right from order receipt, completion of packaging, pick up of order by courier partners from warehouse till delivery. Our customers also receive phone call if their delivery is missed to reschedule the delivery. This gives our customer visibility of their order status in a transparent manner.
7. How do you ensure a higher degree of personalization/uniqueness in your product range? Are prospective customers surveyed? Is your R&D strong? How do you stay on top of new technologies & changing customer habits?
We introduced our products with the option of customization for customers. Any customer who visits our website, can order Avni Ezeepad pack of 12 based on their preference from available 3 most commonly used sizes. This ensures customer to buy as per their needs. We are constantly in communication with our customers with our helpline number. We communicate with almost 1500 customers every month via our helpline taking their feedback and views on the products and sharing information available with us. These inputs along with our panel of experts are continuously working on developing new products, bringing in changes in the existing product to improve customer experience and interactions with Avni
8. What metrics do you analyze to compare your performance from that of your competitors & previous periods?
For us, the simplest way to analyze our performance in the track to growth is new customers every month and the number of repeat customers. More than 5000 customers and a repeat percentage of almost 30%, gives us motivation to keep on creating much better product and experience.
9. It’d be great if you could share any Advice/expert’s opinion/findings on the D2C ecosystem in India. And what do you think is the future of this industry? What should the budding entrepreneurs have a look out for?
D2C space in India is evolving at a fast pace. Internet has been a boon for this industry and consumers are now well aware and well read about products, the options they have and pros & cons. India has witnessed huge growth in customers shopping online. This has given all start-ups like us to showcase products across wider set of audiences without much hassle. There is a huge scope to introduce new concepts and products in the Indian market. In our opinion, all budding entrepreneurs should just grab the opportunity as any time is right time to start.
The cryptocurrency exchanges have been growing for a very long time with a huge set of believers towards the digital coins. At the same time, there has been a lot of crashes, a lot of wealth wiped off, and as well as a lot of wealth gained through it.
However, many countries across the globe have been laying restrictions over the trading of cryptocurrencies and the most recently even the UK has banned the largest cryptocurrency of the world from undertaking transactions related to cryptocurrency. In this article let’s look at the reason for it.
The Financial Regulator of Britain has ordered Binance which is one of the largest cryptocurrency exchanges around the globe, to stop all the regulated activities conducted by the crypto exchange. The Financial Regulator has also issued a warning for the consumers about the platform which is coming under critical observation globally.
In a notice that was sent on 25 June 2021, the Financial Conduct Authority of the UK has conveyed to the UK entity of Binance, Binance Market Limited that the exchange should not carry out any regulated activities without the prior written consent from the FCA.
Terms stated by FCA to Binance
The trading of cryptocurrencies is not directly restricted in the United Kingdom but offering services such as trading in the derivatives of cryptocurrencies does require the authorization.
The FCA has asked Binance to display a notice on its website and social media channels by 30 June 2021 stating that “BINANCE MARKET LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK”.
Other than this the FCA has asked Binance to secure and preserve all the records relating to the UK consumers and to provide the information to the FCA by 2 July 2021.
Reason Why UK imposed a ban on Cryptocurrency exchange – Binance
The regulator has not provided any information or has provided an explanation for why it had taken the measure against Binance. However, Binance had stated earlier that it takes its legal obligations very seriously and engages with the law enforcement and regulators in a collaborative manner.
Some of the reasons can be the problems faced by Binance across the globe. The regulator of Japan has conveyed on 25 June 2021 that Binance had been operating in the country illegally. This was found through a notice that was posted on the country’s Financial Services Agency Website.
In the month of May officials from the US Justice Department and Internal Revenue Service who investigate tax offenses and money laundering had sought various information from individuals regarding insights into the business of Binance.
In the month of April, the financial regulator of Germany, BaFin had warned the exchange about the risks of being fined for offering Digital tokens without a prospectus of the investor.
These can be the reasons why the UK had decided to ban the cryptocurrency exchange in the country. Amidst the growing number of acquisitions and cases against the Crypto exchange, the UK regulator would have taken the move.
Will UK ban other cryptocurrency exchanges?
Since the month of January 2021, the FCA has asked all the different Cryptocurrency exchanges and the apps that offer crypto related services to register and to provide details that they comply with the rules of anti money laundering. However, in the month of June, the FCA has conveyed that only 5 firms have registered and that the majority of the firms were not compliant.
The FCA is stepping up its unintentional failure to notice the cryptocurrency trading, which has grown in popularity in the UK along with various other countries across the globe.
This may be a major step towards hunting down the firms that are not compliant with the anti money laundering rules in the country. Binance may be the first step that is taken by the regulator. However, the countries across the globe have been hunting down the crypto exchanges and various transactions of the cryptocurrencies.
FAQ
Is Binance banned in UK?
Yes, The UK financial watchdog has banned leading cryptocurrency exchange Binance from all regulated activities.
Why is Binance being banned?
Binance has not registered with the FCA and therefore is not allowed to operate an exchange in the UK.
Will UK ban Crypto exchanges?
The U.K. does not regulate cryptocurrencies, but it requires exchanges to be registered to operate, which means companies must comply with anti-money laundering measures.
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Amid this Lockdown, several startups that have mushroomed during this time, not many have paid attention to the little ones – pre-schoolers and kindergarten kids. Keeping them engaged during this time is a mammoth task, especially for parents who work from home. That’s exactly where KinderPass steps in.
Founded by two young mothers – Sumedha Khoche and Shireen Sultana – KinderPass offers activities for children based on their age and development needs, reassuring parents that their kids’ early learning needs are being fulfilled.
KinderPass, an award-winning early learning app, that brings exciting brain building classes in Early Reading, Maths, Fitness, Art and more. It offers well-curated content for parents that are tailored for their children. According to the founders, the platform brings together principles aligned with EYFS, Montessori and Waldorf principles of play based learning and a repertoire of scientific research on early development.
It’s a known fact that children learn best through play, interactions with adults, and by activities that involve all senses. Passive viewing of videos is detrimental to a child’s developing brain – over-stimulation of some areas while other areas (such as fine motor skills, language or social-emotional skills) suffer.
KinderPass offers activities for children based on their age and development needs, reassuring parents that their kids’ early learning needs are being fulfilled. The KinderPass app contains 1,200+ bite sized activities for ages 0-4, screen-free exercises, and activities that parents can do with their children in the comfort of their own homes, without needing any expensive material. These activities have been carefully designed to fit a busy parent’s schedule. Based on each day’s feedback, the activities for are changed for the next day.
KinderPass- Founders
KinderPass is founded by Sumedha Khoche and Shireen Sultana.
KinderPass Founders | Sumedha Khoche and Shireen Sultana
Sumedha was born and raised in Delhi and did her MBA from IIM-Indore. She went on to lead sales, insights, and consumer marketing at PepsiCo, and later at P&G, Singapore. She discovered her true passion for teaching and early childhood education once her children were born.
Shireen was born and raised in Visakhapatnam and also went to IIM-Indore for her MBA, and joined Madura Coats out of campus. She followed it up with stints in Mars India, Aircel, and ISB. “Entrepreneurship happened when I helped my husband setup White Cloud Brands to help SMBs solve business problems through marketing. Parenting brought on a curiosity-led understanding of various teaching principles (Montessori, Waldorf, PlayWay, etc.) and early childhood development and learning, which helps contribute to KinderPass today,” she says.
“Our own experience of being working parents – the first few years are the most crucial for child development, and this is precisely the time when parents are time-starved with so many different demands on their time – work, childcare, elderly care, and more. What we also observed all around us was the growing incidence of the phone becoming a teacher and babysitter for children – babies were getting a phone before even their first tooth,” says Sumedha.
Sumedha and Shireen were batchmates and roommates at IIM-Indore, and have known each other for 19 years now.
How was KinderPass Started
They are highly passionate about making a difference in the early years and the lack of an authentic, reliable brand that helped parents make the most of this age was what got us going. The company felt that a lot of the critical aspects of brain science in the early years was locked away in research papers. Most working parents did not have the time or wherewithal to access that information but definitely wanted to make that difference in their child’s development and growth.
KinderPass tested this hypothesis with 150 parents back in late 2018 by running a pilot program wherein they’d receive activities every day for over 2 weeks. Over 75% of parents in this test group came back saying they would be excited to have a product that would help them receive similar information through their children’s growing years and that’s how KinderPass was born.
Research and validation have been part of their growing process over the last 18 months. KinderPass tested their online sessions through various formats and learning approaches, to arrive at the current multi-sensory, highly interactive format that has seen excellent engagement with children between the ages of 3 and 7. Children learn through music, movement, personal attention of a well-trained, qualified teacher and an interactive, play-based learning environment.
KinderPass- Name, Logo and Tagline
KinderPass Logo
KinderPass- Vision & Mission
At KinderPass, their mission is to enable parents to give their little ones the best start in life. The company strives to do this by making excellent early learning convenient, affordable and interactive for each parent and child.
KinderPass- Target Market Size
Globally, the Enrichment activities market is estimated to be 270 billion by 2025. Singapore alone accounts for about 1 Billion enrichment spends per year.
KinderPass- Products and Services
KinderPass is available as a mobile app on iOS and Android and a webapp too. Parents can download the app for free and browse through personalized activities for their children. From birth to three years of age, parents are encouraged to use the app daily to perform recommended activities with their children that impact four fundamental pillars of development – cognitive, physical, personal-social and linguistic.
KinderPass Mobile App
Parents take periodic milestone assessments, track their child’s growth and development and also record their child’s skill level on the activity. Landmark events (almost everyday is one!) can be captured and shared through the ‘Memories’ feature, using readymade templates from ‘My First Day Home’ until ‘My First Day at School’ and everything in between.
From the age of 3, parents rope in the help of its qualified and trained teachers and facilitators to help children build further on the critical pillars through our online classes. Their classes are uniquely structured to provide children with learning that is fun, multi-sensory and interactive.
KinderPass was started in Singapore as a marketplace for all things kids’, in 2018. They quickly realized that scalability, quality control and ease of access were the challenges with this model and, pivoted to the at-home-learning app that KinderPass is today.
KinderPass’ first 150 users came through the pilot program in India and Singapore. Parents would get activities on email and WhatsApp and their feedback is what made them kickstart the app.
KinderPass- Customers/ Clients
Today KinderPass has over 45000 users who come from over 50 countries and 5000 cities across the world. What is a matter of pride for the startup is more than 70% of these users have been acquired organically and through partnerships!
KinderPass- Challenges
Until lockdown in April, they were reliant on subscriptions and products (KinderPass’ own brand of developmental toys) for monetization. The company had a great lineup of products in the works too but all that came to a standstill. By late May/early June it became obvious that things weren’t going to go back to normal and that’s when they added online classes to our portfolio. As has been their approach, they tested these sessions and their approach through small batches, tweaking different variables with each batch (duration of session, batch size, teaching aids, curriculum, etc.) before arriving at what has become their signature style today.
The Finder Singapore’s Most Innovative Award for Business Transformation, 2020
Regional Winners, Singapore for the SoGal Global Pitch competition, largest global startup pitch opportunity for women and diverse entrepreneurs worldwide hosted by SoGal Foundation
Sumedha Khoche, Founder and CEO, was recognized by the Women Innovation and entrepreneurship Foundation (WIEF) at National Summit on Women and Education Empowerment 3.0, for her contribution to early education.
KinderPass was selected to be part of the first cohort of Encubay’s India Accelerator Program.
Sumedha Khoche
KinderPass- Future Plans
Their aim is to reach a base of 100K users within the next 6 months while staying true to their approach of making excellent early learning accessible and affordable to children across the globe, with specific focus on India.
The tourism and hospitality industry were the most affected during the Coronavirus pandemic and is still said to have been reviving from it. Some of the 5-star hotels have been shut down as they did not have the revenue to pay the employees.
Carnival which is the world’s biggest cruise company has reported that their demand has been increasing. The company had sold around 19 ships during the pandemic and reduced its capacity to 13%. But now the company is planning to buy back the ship and increase it by around 2.5%. In this article let’s look at the reason for the increase in demand.
Carnival is the world’s biggest cruise company. The CEO of Carnival has conveyed that there is a huge demand for travel and the number of strips is outnumbered by the demand. The CEO of Carnival Corp has stated that the demand across its 9 cruise lines is rapidly increasing and added that the Americans are enthusiastic and eager to get back on the water.
Arnold Donald, the CEO of the world’s biggest cruise company has said that people are impatiently waiting to get back to cruise again. He added that the company has no issues in being able to fill the ships. People are ready to sail but the fact is that the company has far more demand compared to the ships that they have available right now to supply.
Reason Why demand for Ships Increased
The CEO has stated that the people are confident about the safety measures taken by cruises and even the vaccine roll out is being continued in the United States. The vaccine shots have acted as a huge game changer and according to Arnold Donald, the bookings were vigorous and the most highest in the history of the company.
People are ready and are spending a lot of money on board. Travelers are eager to spend their money on extra cash items such as Casinos, luxury meals, massages, etc.
Carnival CEO on the Rising Demand of Cruise bookings
Arnold Donald has said that during the second quarter of the company’s business update that was held on 24 June 2021, the company has conveyed that the booking volume of the cruises in the future was higher than the 1st quarter of up to more than 45%. He stated that the advance bookings for 2022 were way higher than 2019 due to the increased demand amongst the people.
While speaking about the Covid precautions taken on board the CEO of Carnival Corp has conveyed that some of the cruise lines of Carnival including Costa, have been sailing out of Europe during the Pandemic.
He added that most of the travelers were unvaccinated but the company had ensured that it took necessary precautions and followed the basic SOPs such as social distancing, wearing masks, periodical Covid tests and intense medical screenings.
The CEO added that the guest satisfaction scores were flying high as there were less than 50 cases of Covid positive reported out of around 400,000 guests that were onboard.
The company is expecting some unvaccinated people to be on board from the United States and also adds that these passengers and Travelers will have to take the necessary Covid measures which include wearing masks and periodic Covid tests.
Carnival CEO on Unvaccinated Passengers
The world’s biggest cruise and also the celebrity cruise had laid down new regulations that were subjected for the unvaccinated passengers. The passengers or travelers that haven’t taken the vaccination or did not want to show the proof of vaccination intake will have to go through certain onboard restrictions, additional costs and Covid tests. However, the company has conveyed that the passengers who are fully vaccinated would prevent from the risk of spreading the Covid-19.
The CEO conveyed that if the virus is on board, then there are chances that the passengers would catch it even though the company has put a lot of restrictions. However, he clarified it by adding that they can’t guarantee on not being a single case on board but the chances of an outbreak seem to be really low.
A fully vaccinated cruise, Royal Caribbean cruise that was sailing from the Bahamas has tested two positive cases of Covid-19 from two of the passengers on board. Both the passengers were under the age of 16 and were exempted from the vaccine mandate.
The company has a launched a new cruise which is the latest cruise. The cruise would set its sail on 31 July 2021 from Port Canaveral to Easter and the Western Caribbean. The cruise is the first in the world to have a roller-coaster on board and also the first cruise in the Northern America to be run on a liquefied natural gas.
Conclusion
The company is expected to sailing at least 52% of its capacity by the end of November and is expecting to have its entire fleet into operation by the spring of 2022.
FAQ
Has Carnival Cancelled any cruises?
Carnival Cruise Line cancelled some of its July 2021 cruises, but it will still sail some ships from the U.S. in July.
What is the Revenue of Carnival cruise?
The revenue of Carnival Cruise in 2020 was 559.5 crores USD.
What is Carnival Cruise net worth?
The net worth of Carnival in 2020 was US$−10.236 billion, as due to Covid restrictions the company faced a huge loss.
In this new Startup Insight series we connect with industry professionals to know ‘How did they do it’ – features startup experience and learning from professionals who have done a particular thing in a startup!
Let’s see what Mr. Nityanand Sharma, Founder & CEO of Simpl has got to say on ‘How BNPL (Buy Now Pay Later) is Transforming Customer Purchasing Behavior‘
Simpl provides the convenience of an online khata connected to 5000+ merchants. Simpl works on BNPL mechanism – ‘Buy anything on the internet with 1 tap. Pay later.’
BNPL, with its convenient credit purchases and interest-free credit period, is playing a pivotal role in transforming consumer buying patterns. This stands reflected in the surging popularity of BNPL as a payment mode. According to a 2021 Global Payments Report by FIS, BNPL outpaced other payment modes in the high-growth e-commerce and online shopping space in India and is expected to command a 9% market share by 2024, with a 53% CAGR, up from the 3% share in 2020. India’s consumerism-oriented middle class, driven by purchasing power and aspirational purchases are fueling the growth of BNPL, which aims to deliver a digital credit experience to 400 Mn Indians who fall outside the net of the organized credit card financial system.
How BNPL is Revamping India’s traditional Khata system?
BNPL has brought to the fore an age-old tradition often practiced informally by retail shops in India i.e. taking nagad payment from relatively new customers and allowing udhaar purchases for creditworthy customers. All of the transactions were rooted in trust with the shopkeeper sharing strong relationships with a close-knit circle of customers, often residing in nearby locations.
BNPL has resulted in the reimagining of an existing concept that Indians are already familiar with. Further, with merchants less inclined to offer cash on delivery given the thrust on the cashless digital economy, there is a perceptible mindset shift in the buyers. Seeing the growing buyer interest, BNPL is now available across merchant categories- essentials, staples, groceries, medicines, apparel and clothing, electronics, and beyond. The diversification has further encouraged higher usage levels and reinforced BNPL as a viable alternative to other mainstream payment modes.
Nityanand Sharma – Founder & CEO, Simpl
How BNPL is driving a data to value transformation?
As a product, owing to its ease of use and easy to integrate functionality, BNPL is inherently customer-centric and merchant-friendly. By leveraging cutting-edge tools like AI (Artificial Intelligence) and ML-based credit decisioning, BNPL is enabling faster transactions with almost instantaneous credit-line approval for purchases at the time of checkout. Through better information about customer credit history and purchase patterns based on predictive models, the BNPL model has accelerated the trust-building process between merchants and buyers. With the pandemic throwing a spanner in the budget of many households, the option to split the purchases bill across time in a convenient manner has eased the financial burden for many. Buyers are able to avail improved liquidity towards purchases without the need to worry about upfront funds outlay.
A key factor that works to the advantage of BNPL is the relatively small ticket size of the credit limit available. Thus, the repayment amount is affordable and does not feel like an ‘EMI’ with an attached high-value tag. While EMIs are based on the principle of breaking up a large-sized payment into smaller monthly payments with interest, BNPL is a convenience offered to loyal and trusted buyers of merchants with an interest-free credit period. The low amount size relatively reduces the credit risk and default uncertainty compared to a credit card with a higher credit limit. It has been observed that the buyer propensity to spend is enhanced with BNPL owing to the mere 2 clicks transaction completion process. A study reveals that with BNPL, the basket size has grown in most transactions:
What is the need of BNPL?
India’s young demographic profile, comprising millennials, prefer a prompt and seamless purchase experience. Further, most of these buyers are inclined towards buying on online platforms and making payments through digital modes that are completed within a few seconds. Another notable trend is the moving away from traditional credit facilities that involve a long-drawn and cumbersome approval process. A credit card is often positioned as an alternative to BNPL. However, out of 900 Mn banking customers, it is estimated that only about 3% use credit cards attributable to the high charges and exorbitant interest rates associated with plastic money. It is expected that a high percent of the bank customer pool would be open to using BNPL, given its almost instantaneous credit approval and zero-friction payment experience.
The payment happens via a 1-click checkout option – No OTP, no CVV, No net banking. The final Bill can be cleared via any mode of payment, but BNPL purchases don’t require OTPs. This is one of Simpl’s USPs
Concluding thoughts of Mr. Nityanand Sharma
The universal goals of every digital payment mode are to ensure prompt transaction completion for merchants and deliver superior payment experiences for customers. BNPL achieves all of this and much more. Armed with a comprehensive database of customer purchases, buying patterns and payment records, BNPL can aid merchants with actionable customer insights for business strategies, give a fillip to digital-led purchase volumes and reduce overall payments fraud risk in the digital payments ecosystem.
Alan Joseph
Alan Joseph
