Launched in 2016 Mamaearth has made more than 5 million customers in just a few years. It is Asia’s first company that has been certified by Made Safe.
It is competing against big companies like Himalaya and Johnson & Johnson. But, how did Mamaearth capture a big share of the market in such a short time? To answer this question we need to understand the business model of Mamaearth.
Mamaearth is an Indian brand registered under Honasa Consumer Pvt Ltd that aims to provide toxin-free baby care, skincare, and hair care products.
The founders of Mamaearth are Ghazal Alagh and Varun Alagh. The headquarters of Mamaearth is in Gurugram, Haryana. The tagline of the company is Goodness Inside.
Mamaearth Target Audience
Initially, Mamaearth’s target audience was mothers and their babies, offering baby care, pregnancy care, and skin and hair care products. The company also sold accessories, toys, and apparel.
Then the target audience of Mamaearth expanded by targeting the millennial generation by selling more chemical-free skin care products like serums and creams, face wash, lotions, and hair oils.
The company also targeted men by offering products like aftershave lotions, and beard and hair oils.
Mamaearth Baby Products
Mamaearth Business Model
Unique Aspects of Mamaearth’s Business Model
Formulation and Manufacturing
Mamaearth formulates products for manufacturing by contract producers under their brand.
Sales Channels
Primarily online through D2C platforms like Amazon, Flipkart, supplemented by offline stores, ensuring an omnichannel presence.
Global Reach
Products are sold globally through both offline and online channels.
The business model of Mamaearth is straightforward. The company formulates products that contract manufacturers later produce under the permit of the Mamaearth brand.
Mamaearth mainly sells online through D2C Channels like Amazon, Flipkart, etc., and other offline stores. They have an omnichannel presence. The entire product range is manufactured by contract producers under the Mamaearth brand and is sold globally through both offline and online channels.
What is Unique about the Business Model of Mamaearth?
Connecting with their Target Audience
The most important thing for any brand is to connect with its target audience and gain their trust. This is what Mamaearth did brilliantly. From the start, they targeted mothers and made advertisements that resonated with them.
As the founders themselves got the idea of Mamaearth when they were looking for toxin-free and natural baby products online, they knew what parents wanted for their babies.
We are a ‘mum-powered’ company and work with a large number of mothers who are involved in the process, right from ideation, conceptualization to the actual product launch. We believe this connection with mothers will continue to be the biggest driver of success. We have more than 200 young moms on board who help us in conceptualizing and formulating the products. The moms then test these products, and only those with great feedback are approved for mass production,” says Ghazal Alagh.
The founders of Mamaearth believe in providing quality products to their customers.
As they have a superior quality product, people themselves recommend their products to other people. Word-of-mouth marketing has done miracles for their brand.
In 2019 Mamaearth got the “One of the Best Brands” in India Award at the 2nd edition of the ET Brand Festival.
The company has come up with unique products that have attracted many people.
Some of their unique products include India’s first bamboo-based baby wipes, 100% natural plant-based toothpaste for children, and skin and hair care products with natural ingredients like onion, CoCo, charcoal, and ubtan.
Lean Innovation Cycle
Lean innovation follows a principle where you focus on increasing efficiency by continuously listening to your customer’s feedback. Your main priority is experimentation and continuously improving your product quality.
Lean innovation helped Mamaearth to understand its customer needs and fulfill those needs immediately.
Experimentation helped them to increase the quality of their products and also to generate new product ideas. In a very short time, they satisfied their customers using this method.
How Does Mamaearth Earn Money?
The customer acquisition strategy of Mamaearth is completely focused on digital content.
Almost 70% of the sales of Mamaearth products come from online platforms.
Their main aim is to sell as many products as possible online, with their revenue model focused on earning money through sales on Flipkart, Amazon, and other similar eCommerce websites.
Interestingly, only 20% of Mamaearth’s revenue comes from baby products.
On the other hand, 80% of the revenue comes from skincare and haircare products.
As Mamaearth comes in the personal care category they enjoy a healthy gross margin profile of about 65%. So, they can invest 40-50% of revenue in marketing.
Honasa Consumer Sales Channel Split
Particulars
FY24
FY23
FY22
FY21
Revenue
INR 1,969.6 crore
INR 1,515.3 crore
INR 964.3 crore
INR 472.1 crore
Expenses
INR 1,822.5 crore
INR 1,501.6 crore
INR 941.9 crore
INR 1,796.7 crore
Profit/Loss
INR 110.5 crore
INR -151 crore
INR 14.4 crore
INR -1,332.2 crore
Over the past three fiscal years, online sales revenue of Honasa (parent company of Mamaearth) decreased from 81.37% in FY21 to 59.36% in FY23, while offline sales increased from 18.63% to 36.14%. Revenue from services, starting at 1.22% in FY22, grew to 4.5% by FY23.
Mamaearth Financials FY24
Mamaearth has successfully raised $139.2 million across 10 funding rounds, with the latest funding done in December 2023.
Mamaearth Marketing Strategy
Influencer Marketing
Mamaearth has worked with a lot of influencers on the internet. Influencers have helped the company to reach a wider audience.
Influencers tell the benefits of these products on various social media platforms. Mamaearth also works with five hundred mother bloggers to spread awareness about the brand.
Brand Endorsement
Collaborating with Bollywood actress Shilpa Shetty Kundra as a brand ambassador has to be their best marketing strategy. Shilpa Shetty has a lot of popularity, so her becoming a brand ambassador of baby products and also an investor hugely benefited Mamaearth.
Additionally, the company introduced an integrated marketing campaign for their onion shampoo, showcasing Sharmila Tagore and brand ambassador Sara Ali Khan. Furthermore, Samantha Ruth Prabhu lends her endorsement to Mamaearth’s skincare products.
Mamaearth majorly promotes itself through digital ads. They have smartly utilized digital ads and increased their customer base. Their ads are very catchy and symbolize their brands in an effective manner.
At its core, Mamaearth’s amazing products helped them to reach great heights. Mamaearth’s business strategy focuses on a digital-first approach, focusing on D2C channels, expanding offline retail, and driving product innovation with a strong emphasis on sustainability and brand trust. They have understood their customer’s needs properly and served those needs in an excellent way. Mamaearth is an inspiration for many startups. Their business and revenue model is simple yet effective.
FAQs
What is Mamaearth?
Mamaearth is an Indian brand registered under Honasa Consumer Pvt Ltd that aims to provide toxin-free baby care, skincare, and hair care products.
What are Mamaearth products?
Mamaearth mainly deals with baby-care products including accessories, toys, apparel, pregnancy care products, and skin and hair care products.
Is Mamaearth an Indian company?
Yes, Mamaearth is an Indian company founded by Ghazal Alagh and Varun Alagh. It was launched in 2006 and the headquarters is in Gurugram, Haryana.
How are Mamaearth products sold in the market?
Mamaearth products are sold through eCommerce websites like Flipkart, and Amazon, and also via offline stores.
What is the tagline of Mamaearth?
The tagline of Mamaearth is Goodness Inside.
What is Mamaearth USP?
USP of Mamaearth lies in its commitment to providing natural, toxin-free products specifically designed for mothers and their babies. The brand emphasizes safety, environmental sustainability, and cruelty-free practices, ensuring that all products are made from natural ingredients and are safe for both children and the environment.
Does Mamaearth manufacture its own products?
The entire product range of Mamaearth is manufactured by contract producers under the Mamaearth brand and is sold globally through both offline and online channels.
What is Mamaearth tagline?
The tagline of Mamaearth is Goodness Inside.
What is Mamaearth customer care number?
You can reach Mamaearth’s customer care at +91 8901 555 444, available Monday to Saturday from 9:00 AM to 6:00 PM. For email support, contact care@mamaearth.in. Additionally, you can submit queries through their support portal at support.mamaearth.in.
The rising traffic in most of the cities these days has become an unavoidable problem. Getting stuck in traffic in today’s metropolitan cities is one of the inescapable situations.
More often, there comes a time when you have to reach a destination, but there is no way for you to do so. In such times, you are frustrated and worried while thinking of some miracle to happen. But thanks to new-age technological advancements and innovative minds, we have companies like Rapido to rescue us in these kinds of situations.
You will just have to install the app, and you will be able to travel anywhere within the city. Rapido joined the Unicorn Club on 29 July 2024 with a $120 million investment from WestBridge Capital at a valuation of over $1 billion.
Here’s a look at the business model of Rapido and how it makes money.
Rapido is an Indian bike taxi and logistics service provider headquartered in Bangalore, Karnataka. Formerly known as the theKarrier, the company was founded in 2015 by two IIT alumni and PESU alumni – Aravind Sanka, Pavan Guntupalli, and Rishikesh SR.
Hero MotoCorp Chairman Pawan Munjal and former Google India Vice President Rajan Anandan are people who have stakes in Rapido. The company operates in almost 100+ cities and had 20 million+ customers in FY23.
Due to the increasing demand for Rapido, they have expanded their operations almost all over India. Some of the cities where Rapido operates are Coimbatore, Jalandhar, Patiala, Tirupati, Trichy, Kolkata, Udaipur, Amritsar, Bhubaneswar, Rohtak, Vishakapatnam, Sagar, Hyderabad, Gwalior, and many more.
Key Products and Services
Rapido is a bike taxi service provider, but along with that, they also have auto-rickshaw and third-party logistics services.
It was in 2020, after the COVID-19 outbreak, that the company decided to expand its logistics that offer hyperlocal delivery for local businesses and eCommerce companies.
Following that year, Rapido decided to expand its Auto services in 11 additional Indian cities in the states of Rajasthan, Gujarat, Uttar Pradesh, Punjab, and Andhra Pradesh, to name a few.
Rapido Auto
Rapido also offers a service called Rapido Corporate. It is an employee travel management for organizations. In this service, organizations need to partner up with them if they want to offer travel services to their employees.
Target Audience of Rapido
Rapido’s target audience is mainly commuters who travel in their day-to-day lives. Its main goal is to offer services to commuters who prefer open and safe commute options in comparison to over-expensive cab rides.
As per the latest reports in February 2025, Rapido has shifted to a SaaS model, removing daily commissions for drivers, says Co-founder Aravind Sanka. Drivers now pay a subscription fee upfront and keep 100% of their fares. The platform serves two million drivers monthly, focusing on value for both riders and customers.
Before this, the business model of Rapido was mainly B2C (Business-to-customer model). This means that they offer their services directly to their customers as a business entity.
In addition to this, they have also leveraged vehicle storage options to provide carriage services. Moreover, the end receivers of their product and services are customers like us.
Their B2C model allows consumers to book a bike ride through their app. Customers need to download the Rapido app, create a profile, and set pick-up and drop-off locations.
Upon successful booking, a driver known as the ‘Captain’ will be assigned with their details like name, photo, and other details. This gives assurance to customers regarding the driver with whom they are going to commute. Users can make payments either with cash or using a digital payment method.
For Captains, Rapido allows anyone with two-wheelers to register as Captains. They are free to choose whatever vehicle they want, like motorcycles, scooters, or e-bikes, but it cannot be older than 2010. They also need to have a phone with a 3G/4G mobile data connection.
Rapido encourages people between the ages of 18 and 50 to be Captains. Presently, the company is looking for more female captains to join their community.
How Does Rapido Make Money | Rapido Revenue Model
Rapido makes money through its bike and rental services. Rapido’s revenue model is mainly of two categories:
The Commission-based
Commission-basis means the company generates money by acting as an intermediary between the ‘Captains’ and the customer. They charge a fee of 20% of the entire fare.
The B2C commission-based
The other method through which Rapido earns money is through its B2C logistics services, Rapido Store. This is a major source of revenue as the company focuses on delivering the goods of logistics companies to their preferred location.
Advertising and Partnerships
Rapido works with businesses to show ads on their platform. They may promote local shops or display targeted ads for their users. They earn money through ad fees or paid promotions.
Delivery Services
Rapido doesn’t just offer rides but also delivers packages. Users can send parcels or documents through the Rapido app within the city. Rapido earns money by charging delivery fees.
Rapido Financials
Rapido Financials
FY23
FY24
Operating Revenue
INR 443 crore
INR 648 crore
Total Expenses
INR 1172 crore
INR 1066 crore
Profit/Loss
INR -675 crore
INR -371 crore
Rapido has grown 4.4 times over the past two years, with revenue rising from INR 145 crore in FY22 to INR 648 crore in FY24. The ride-hailing company also reduced its losses by 45% in FY24, helped by better cost management. In 2024, the operating revenue of Rapido increased by 46.3% to INR 648 crore from INR 443 crore in 2023. The company’s total expenses decreased by 9%, dropping to INR 1,066 crore from INR 1,172 crore. The company reported a loss of INR 371 crore in 2024 compared to INR 675 crore in 2023.
The Unique Selling Proposition (USP) for Rapido precisely gives it an edge over other forms of ride-hailing. It addresses some of the most critical needs of a typical urban commuter in India. In fact, unlike all the other different models, which are focused on levying high commissions, Rapido has gone to the subscription mode, providing rides at comfortable prices, especially for regular commuters and those living in smaller cities. This mode of transportation, which is speed and convenience-oriented, offers an easy and short bike taxi ride, which will save travel time by 50% in congested areas. Economically competing with taxi fares, Rapido is an alternative.
For safety, this platform boasts “Captains” who have undergone a rigorous vetting process, and the rides can also be tracked through GPS. The app ensures smooth riding experiences through real-time tracking, cashless payments, and customer service. Now, Rapido has also gone beyond bike taxis to include auto-rickshaws, cabs, and delivery services in its portfolio, strengthening its outreach and boosting user engagement. All put together, it’s a game changer in the ride-hailing landscape of India for affordability, speed, and reliability.
One of the most important things to look at in Rapido’s services is its affordability. For daily commuters, Rapido seems to be the perfect mode of transport. At any time, either day or night, a traveler’s trip is less expensive than most cab rides.
They provide helmets for safety.
The app has easy accessibility because it is available in five major languages.
There is also a speed-tracking feature that lets the Captains know their speed.
Rapido’s business model offers insurance for both parties – the driver and the rider.
Rapido SWOT Analysis
Rapido SWOT Analysis
Rapido Strengths
Dominance in the Market: Rapido’s former trust is reliant on its consumer consideration over its 65 percent market share in India’s bike-taxi industry.
Economical Services: Easy, affordable rides make an attractive option for budget-off commuters. Its pricing strategy fills a gap between traditional taxi riding and new-age app-based ride-hailing services, catering to a very large customer base.
Simple and Convenient: The company’s app is an apt source for booking rides easily and quickly, bringing the customer satisfaction clause into operation effect for the company.
Rapid Expansion: This company operates in about 100 cities and thus has successfully tapped into new markets and continues expanding.
Driver-focused Model: The platform provides a fixed payment fee structure to a driver rather than payment based on commission per ride, thus cultivating more trust and satisfaction among its driver partners.
Rapido Weaknesses
Perception Problems: Some would-be users may consider bike rides to be unsafe and so deter their usage. Some features for assuring safety have been put in place, but it is still very difficult to alter the perceptions of consumers.
Limited Service Diversification: Rapido has started diversifying into food and courier deliveries and can begin to move away from its emphasis on bike-taxi services; however, it could limit the potential to attract a wider customer segment compared to competitors offering various modes of transport.
Inconsistent Operations: Users experience non-uniformity of service even after developing all the backend technology, which hinders the overall trust in the service.
Rapido Opportunities
Unexploited Potential in the Market: Further market penetration across India opens good potential for Rapido to scale its customer base and market share.
Diversification into New Services: More channels, such as car-hailing or food delivery, can be innovated to attract additional customers and improve their stake in the competition.
EV Adoption: Adaptation to EVs may fall within the spectrometer of developing eco-friendly environment concerns and the government’s pro-poor approaches.
Rapido Threats
Intense Competition: Well-established competitors like Ola and Uber as well as newer emerging regional players, pose a challenge to Rapido’s market share as well as its pricing strategies. These competitors could also create pressure on profitability and growth.
Regulatory Challenges: The ongoing regulatory tussles concerning ride-hailing in India, coupled with possible changes in government policies, could impact Rapido’s operations and compliance costs.
Economic Factors: Any economic downturn or shift in consumer spending behavior could substantially impact demand for ride-hailing services, especially in the price-sensitive segment.
Conclusion
It is quite clear by looking at the business model of Rapido, that customers and drivers both benefit greatly. By always making constant app updates and improving the system, they wish to make their app user-friendly for every walk of life. They are soon going to launch special and simplified features for visually challenged people.
Since its inception in 2015, Rapido has come a long way and joined the unicorn club on 29 July 2024. Day and night they are striving hard to be the solution for India’s intra-city commuting problems. Rapido’s bike services are a boon for anyone who wishes to reach their destination in a jiffy.
FAQs
How does Rapido make money or what is Rapido revenue model?
Rapido earns money by charging a fee of 20% of the entire fare. The company also earns from its logistics services. Visit their website to learn about the Rapido fares chart.
Who are the founders of Rapido?
Aravind Sanka, Pavan Guntupalli, and Rishikesh SR founded Rapido in 2015.
What is Rapido business model?
The business model of Rapido is mainly a B2C, business-to-customer model. This means that they offer their services directly to their customers as a business entity themselves.
How to start Rapido business?
To start a Rapido business:
As a Rider – Register on the Rapido Captain app, upload documents, get approval, and start rides.
Rapido Franchise – Contact Rapido, check requirements, sign an agreement, and earn commissions.
What was Rapido turnover 2024?
The operating revenue of Rapido increased by 46.3% to INR 648 crore from INR 443 crore in 2023.
How does Rapido work?
Rapido connects users with bike and auto riders for quick rides. Customers book via the app, riders accept, pick them up, and drop them at their location. Rapido earns through ride fees.
What is Rapido net worth in rupees?
As of October 2024, Rapido’s net worth was valued at Rs 6,800 crore.
What is Rapido walk feature?
Rapido doesn’t have a walk feature, but it offers bike, auto, and cab ride options.
What is Rapido owner name?
Aravind Sanka, Pavan Guntupalli, and Rishikesh SR are the founders of Rapido and the parent organization of Rapido is Roppen Transportation Services.
How to earn money from Rapido?
To earn from Rapido, become a “Rapido Captain” by registering on the app and using your bike for rides. You earn money from fares, plus bonuses and incentives based on your performance.
YouTube, the most popular and common video-sharing platform, has more than 2.7 billion active users a month as of 2024. It’s not just a platform for individual users; rather, it is a multidimensional market filling in between viewers, content creators as well as advertisers. On the revenue-generating front, the bulk of revenues comes through various forms of advertisement: skippable and non-skippable ads, display ads, and overlays, and ad revenues for the year 2023 were a whopping $31.7 billion. Besides the ad revenue, YouTube offers subscriptions such as YouTube Premium (ad-free viewing), and YouTube TV (live). Through super chats, channel memberships, and merchandise sales, creators can also earn revenue.
YouTube allows everybody to spice their lives up, attract audiences to themselves, and make money; yet, for the average person who just sees other people’s videos, it is a completely free place to get a piece of everything. Its recommendation algorithms keep users active; while advertisers get the desired space for their ads. Through live streaming, virtual reality, shorts, and many more, there have been significant innovations in the media area that have further assured that YouTube’s position remains strong.
About YouTube
YouTube is an American video-sharing website founded on February 14, 2005, by three former employees of PayPal, Steve Chen, Chad Hurley, and Jawed Karim. The site was originally conceived as a kind of video-dating site called “Tune In, Hook Up,” but on the fly quickly turned to something much more generalized a site for sharing videos.
Karim uploaded the first video, a short clip called “Me at the Zoo,” on April 23, 2005, and became the launching point for the site; YouTube then went into beta in May 2005 and formally went live on December 15, 2005, with an already two million daily video views. By mid-2006, it managed to cross the 100-million mark in daily viewership, caught Google’s attention at that time, and was bought a few months later in 2006 for $1.65 billion worth of stock.
Prominent features in YouTube’s development were the Partner Program in 2007, which enabled creators to better monetize content, and the introduction of YouTube Live in 2011, which enabled its users to broadcast live and in real-time. In March 2013, the platform reached one billion distinct monthly visitors and in 2018 changed the name of its subscription service from YouTube Red to YouTube Premium. YouTube retains the lead worldwide in digital media as it shapes entertainment and online video watching across the globe.
The business model of YouTube relies on user-generated content, advertising, and subscription services to maintain its position as a major force in digital media. The company is built on three main pillars: the viewers, the content creators, and the advertisers. While the viewer gets content free of charge or pays to view it, the creators use the platform to attract audiences and make money. The advertisers pay for targeted advertisements based on Google Ads. The revenue sources are advertisement revenue, YouTube Premium for ad-free viewership, YouTube TV for live-streaming, and various monetization tools for creators, such as Super Chat, channel memberships, and merchandise sales.
With a global presence in over 76 languages, YouTube innovates with features like live streaming, 4K support, VR, and Shorts. Its infrastructure allows data centers to deliver seamless streaming and algorithms for content moderation and recommendations. Key cost variables include ad revenue sharing, IT operations, salaries, and copyright management. YouTube provides an ample environment for sustaining advertisers, creators, and users’ interaction and ensuring sustainable growth through free and paid services, which gives other providers serious competition.
How YouTube Makes Money I Revenue Model of YouTube
It is one of the digital platforms that are very profitable because of its revenue model that combines advertising, subscription services, and creator-centric monetization tools. The major source of income is an advertisement, which has several forms like skippable and non-skippable ads, bumper ads, and display advertising. Under the YouTube Partner Program (YPP), eligible creators can also earn their share of ad revenues, where advertisers pay based on views or interactions. YouTube Premium is a subscription service that provides an ad-free viewing experience, offline downloads, and exclusive content, and a percentage of its generated revenues is also divided among creators in terms of watch time hours spent on their content. Another source of revenue is YouTube TV, which pays by streaming live television with access to cable networks.
The existence of channel memberships permits the creators to earn money from their subscribers as they pay some price for special advantages. Super Chat permits unregistered users to pay to read their highlighted messages in real time. The Merch shelf feature lets creators sell personalized merchandise, and that pays a cut to YouTube. Indeed, partnerships with brands, content licensing, and fundraising options boost revenues significantly as well. In fact, in 2022, YouTube turned in 29.23 billion dollars, which makes for diverse and lively revenue streams.
Youtube Revenue Data
YouTube advertising revenue 2010 to 2024 ($bn)
Year
Revenue ($bn)
2010
0.8
2011
1.3
2012
1.7
2013
3.1
2014
4.2
2015
5.5
2016
6.7
2017
8.1
2018
11.1
2019
15.1
2020
19.7
2021
28.8
2022
29.2
2023
31.5
2024
36.1
YouTube Channels Revenue 2024 ($mm)
Channels
Revenue ($mm)
Mr Beast
85
Matt Rife
50
Dhar Mann
45
Rhett & Link
36
xQc
36
Ryan Kaji
35
Markiplier
32
Mark Rober
25
Alex Cooper
22
Stokes Twins
20
Jacksepticeye
18
Andre Rebelo
17.9
Adam W
15
Jack Paul
13.6
YouTube users 2010 – 2024 (bn)
Year
Users(bn)
2010
0.2
2011
0.5
2012
0.73
2013
1.01
2014
1.18
2015
1.34
2016
1.5
2017
1.63
2018
1.8
2019
2.07
2020
2.3
2021
2.51
2022
2.66
2023
2.7
2024
2.74
YouTube Premium Subscribers 2015 to 2023 (mm)
Year
Subscribers (mm)
2015
1.5
2016
3
2017
2.8
2018
10
2019
18
2020
30
2021
50
2022
80
2023
100
YouTube Unique Selling Proposition
YouTube has a single unique selling proposition – its content library made available on demand, advertising at all its innovative dimensions, as well as unmatched global reach. It is not like TV shows and movies but allows its users the freedom to watch something at any time. TrueView skippable ads are made to only charge the advertiser when viewers watch the ads. This serves not only the audience satisfaction but also the effectualness of such advertising campaigns. More than 2, 000, 000, 000 users monthly access YouTube, which makes brands get pretty exposure, but it also keeps a tight community relationship among the public through comments, live streams, and memberships.
Advanced advertising tools like Brand Lift Surveys and TrueView Discovery enable businesses to optimize their campaigns further. This effective mixture of user-generated content, targeted advertising, and interactivity has improved the competitive edge of YouTube over traditional media and other digital platforms by giving it a unique stand as a pole for advertisers who chase reach with effective engagement.
YouTube SWOT Analysis
YouTube SOWT Analysis
Strengths
Market Leadership: YouTube is indeed a very popular video-sharing site, with some estimates saying it has over 2.6 billion monthly users from all over the world. It boasts some extraordinarily high levels of daily engagement.
Google’s Backing: The fact that it is owned by Google means that YouTube has advanced intelligent technologies such as AI recommendation systems and phenomenally robust backend support.
System of sharing revenues: The creation of the YouTube Partner Program was aimed at attracting or luring creators by sharing ad revenues to ensure an ongoing steady flow of high-quality content.
Innovation: New features such as live streaming, 360-degree videos, virtual reality, and YouTube Shorts, keep the platform in sync with the emerging competition.
Global Reach: Over 100 countries and 80 different languages have access to YouTube, literally uniting many diverse populations around the globe.
Weaknesses
Low ROI on Ads: Advertisers earn lower ROI on YouTube than on Facebook or Instagram.
Low Average Revenue per user(ARPU): YouTube’s long history of free access makes it difficult to convert free users into paying subscribers.
Moderation issues: The platform has been criticized over and over again for hosting harmful content, including misinformation and radical ideologies.
Toxicity: Some parts of the community cultivate negativity and harassment, which affects the overall user experience.
Privacy issues: The way it handles user data has not just attracted regulatory scrutiny.
Opportunities
Emerging Market Expansion: Increased internet penetration into developing countries provides an opportunity to enlarge the number of users.
Generative AI And Web3 Integration: Using AI to create content and exploring blockchain counterparts like NFTs may provide new revenue opportunities.
Investment in Original Content: Developing exclusive premium content will help to compete with Netflix and Amazon Prime Video.
Enhance Content Moderation: Enhancing moderation tools will benefit brand image while providing a safer environment for users and advertisers.
Threats
Intense Competition: Zooming through niches like short-form video apps and live-streaming platforms are TikTok, Instagram Reels, and Twitch.
Regulatory Problems: Increased scrutiny over matters regarding data privacy, copyright issues, and censorship may impact operations.
Ad-Blocking Software: Increasing use of ad blockers creates the potential of reducing advertising revenues.
Digital Well-being Awareness: Screen time is becoming a more conscious aspect among users and may result in reduced engagement on the platform.
Conclusion
YouTube has redefined video consumption through a multi-pronged platform sustaining advertising, subscriptions, and monetization for creators. It has a unique position within the digital media landscape because of its global reach, on-demand content, and ingenious ad solutions. Then comes the question of whether this platform can staunchly hold its leadership position in the market, considering that it is linked with Google and innovates through live streaming and short-form videos. Yet it still faces challenges in content moderation, privacy, and stiff competition from platforms, mainly TikTok.
Nevertheless, YouTube is expanding in emerging markets and investing heavily in original content while also exploring AI and blockchain technologies. Its capability to adapt and evolve will be central to sustaining its leadership in the digital ecosystem. As a global hub of video content, YouTube remains a platform of utmost importance for creators and viewers, hence cementing its relevance in an industry that seems to change by the day.
FAQs
What is YouTube?
YouTube is a video-sharing platform that allows users to upload, view, rate, share, and comment on videos.
How does YouTube primarily make money?
Primarily through advertising revenue.
What types of ads does YouTube use?
Display ads, overlay ads, skippable and non-skippable video ads, and sponsored cards.
What is YouTube Premium?
A paid subscription service that offers ad-free viewing, offline downloads, and YouTube Music Premium access.
This article has been contributed by Nida Sahar, CEO, Nife.io.
In 2017, a small AI startup had what seemed like an unbeatable product: a powerful deep-learning model that could generate human-like text. Investors were excited, the demo was impressive, and the hype was real. But there was a major challenge—they had no clear monetization strategy.
After months of experimentation, they launched a subscription product, but user churn was high. They then attempted to license their model to enterprises, but the sales cycle was too slow. Finally, they pivoted to an API model, which allowed them to scale revenue quickly.
That startup was OpenAI.
Their journey reflects a challenge every AI company faces: Having powerful technology is not enough—without the right business model, even the most advanced AI products will fail.
Three Proven AI Monetization Strategies
AI startups typically choose among three primary monetization strategies, each with advantages and challenges.
1. Subscription-Based AI: The SaaS Model
A common approach to AI applications is the subscription-based SaaS model. Whether it’s an AI-powered tool for marketing, automation, or data analysis, many companies opt to charge users a monthly or annual subscription.
When Subscription Works Best
The product provides continuous value (e.g., Grammarly enhances writing daily).
A freemium-to-premium conversion strategy is effective (Jasper AI monetized free users by offering premium marketing features).
The target audience consists of individuals or small businesses that are unlikely to commit to enterprise contracts.
Challenges of Subscription AI
High churn rates: If users do not perceive ongoing value, retention becomes difficult.
Customer acquisition costs: Scaling an AI SaaS product requires significant investment in marketing and customer education.
Compute costs: AI-driven SaaS products often have higher infrastructure costs than traditional SaaS, which can eat into margins.
Case Study: Grammarly & Jasper AI
Grammarly successfully leveraged the freemium model, allowing users to test the product before upgrading to paid plans. Jasper AI found a profitable niche in marketing, charging users based on AI-generated content.
Both succeeded because they solved a specific, recurring pain point rather than simply offering an interesting AI feature.
2. API-Based AI: The Developer-Focused Approach
Instead of building an end-user application, some AI startups monetize by offering API access to their models, allowing developers and businesses to integrate AI into their own products.
When APIs Work Best
Developers need off-the-shelf AI without the cost of in-house development. ● The AI model is expensive to build but relatively cheap to scale (Deepgram optimized infrastructure to make speech recognition cost-effective).
Enterprises prefer usage-based pricing over fixed subscriptions.
Challenges of API Monetization
Cloud costs can escalate if you don’t carefully structure pricing; usage growth can lead to unsustainable infrastructure costs.
Commoditization risk: Open-source alternatives and competitors can drive prices down, leading to a race to the bottom.
Case Study: OpenAI & Deepgram
OpenAI successfully implemented pay-per-use pricing, which allowed it to generate significant revenue while maintaining accessibility. Deepgram positioned itself as a cost-effective alternative to major cloud providers by optimizing infrastructure and pricing aggressively.
APIs are scalable, but success depends on controlling costs and maintaining differentiation in a competitive market.
3. Enterprise AI: Selling to Large Organizations
Enterprise AI focuses on selling AI solutions directly to businesses, often through customized deployments or large-scale integrations. This model is common in industries like finance, healthcare, cybersecurity, and government contracting.
When Enterprise AI Works Best
The AI product solves a critical business problem that organizations cannot solve internally (e.g., Palantir provides intelligence solutions to government agencies).
Customers require custom AI modelsthat are not easily replaced by off-the-shelf solutions.
The company has the resources to withstand long sales cycles (often 12+ months).
Challenges of Enterprise AI
Sales cycles are long: Closing enterprise deals can take a year or more, creating cash flow challenges for early-stage startups.
Customer acquisition requires direct sales efforts, which can be expensive and complex.
Procurement processes are slow and bureaucratic, making it difficult to scale quickly. Case Study: Palantir & C3.ai
Palantir built a successful AI business by securing large government contracts before expanding into the private sector. C3.ai focused on industry-specific AI applications, such as energy and supply chain optimization, allowing them to differentiate from general-purpose AI platforms.
Enterprise AI can be highly profitable, but it requires significant capital, patience, and a strong sales team.
While some AI business models have proven successful, others have consistently failed.
1. “Cool Tech Without a Business Model”
Many AI startups focus too much on research and product development without a clear go-to-market strategy. Having a high-performing model is not enough; it needs to be packaged, priced, and distributed effectively.
2. “Subscription Models with High Churn”
If users do not see continuous value from an AI product, they will cancel their subscriptions quickly. AI tools that are used sporadically or fail to integrate into users’ workflows often struggle to retain customers.
3. “APIs Without Pricing Control”
APIs can be profitable, but only if usage-based pricing accounts for infrastructure costs. If an API model scales usage without sufficient margins, the company can end up losing money as it grows.
4. “Enterprise AI Without Sufficient Funding”
Many startups attempt to sell AI to enterprises without realizing how long and expensive the process is. Without strong financial backing, these companies often run out of capital before closing enough deals to sustain operations.
Pricing AI Products: Key Strategies
Selecting the right pricing model is critical for AI monetization. The most successful companies use one or a combination of the following approaches:
1. Usage-Based Pricing (Best for APIs & Enterprise AI)
Charges customers per API call, token processed, or data analyzed.
Example: OpenAI’s pricing scales based on usage.
2. Tiered Subscription Pricing (Best for SaaS AI)
Offers multiple pricing plans based on feature access or limits.
Example: Jasper AI charges higher fees for businesses, generating more AI content.
3. Freemium-to-Paid Conversion (Best for Consumer AI)
Provides free access to basic features, with paid upgrades for advanced functionality.
Example: Grammarly’s free version drives user adoption before upselling premium features.
4. Enterprise Licensing (Best for B2B AI)
Companies sell AI solutions as a one-time license or an annual contract.
Example: Palantir’s multi-million-dollar government contracts.
Key Takeaways for AI Founders and Investors
Subscription AI can work, but retention is critical.
API-first models scale quickly, but pricing and cloud costs must be managed carefully.
Enterprise AI is lucrative but requires capital, patience, and strong sales execution.
A hybrid approach often provides the most stability and scalability. What’s Your Strategy?
The AI market is exploding, but monetization remains a major challenge. The most successful AI companies are not necessarily those with the best technology, but those that have a well-defined business model and execution plan.
For AI founders, the key question is not just, “What can we build?” but “How will we sell it?”.
Approximately 64 percent of adults around the world need corrective lenses to see clearly, according to recent studies. Envisioning a society where selecting the ideal eyewear is both a vital must and a truly enjoyable activity. This ambition has come true thanks to Lenskart, an industry pioneer.
Both customers’ perception of eyeglasses and their shopping habits have been revolutionized by Lenskart’s groundbreaking business model, which combines cost, convenience, and style. Its business model is what makes the company different from others, as it bridges the gap between different touchpoints, i.e. it gives the customer an Omni Channel Experience where a customer can order either from the store or from an online medium.
Lenskart is one of theeCommerce companies that operate in both online and offline distribution channels. Customers can order their products over the online portal or from Lenskart’s uniquely designed offline store. Lenskart also becomes a unicorn company in the year 2019.
Lenskart is the fastest-growing retail chain with 500+ profitable stores across 120+ cities and 50 Lac happy customers across India. Valyoo Technologies is the parent company under which it is registered. Lenskart app is the No.1 shopping app for eyewear as it has the widest collection of specs, sunglasses, goggles, frames, anti-glare, contact lenses, reading glasses, computer glasses, try glasses at home, prescription sunglasses, and eye accessories.
Lenskart is a novel business strategy that combines technology with fashion, and we urge you to explore this intriguing world with us in this post.
The founder and CEO of Valyoo Technologies (the parent company of Lenskart) is Peyush Bansal. He pursued his Bachelor in Electrical Engineering – IT, Control & Automation from McGill University, Canada in 2006. Before he returned to India to pursue a PG in Management from IIM, Bangalore, Peyush worked as a Program Manager with Microsoft for a year.
Peyush launched his company Valyoo Technologies with SearchMyCampus as the first business portal in 2007. It was a classified site for students that provided options for accommodation, books, part-time jobs, carpool facilities, and internship opportunities. When that became a big hit, Peyush wanted to explore the eCommerce world. While exploring opportunities, the eyewear segment caught his eye and inspired him to come up with his own.
This led to the creation of Flyrr.com, a website that focused on the eyewear market in the US. Flyrr went on to gain good traction and this prompted him to test the waters in the Indian markets and launch Lenskart in November 2010.
Lenskart was founded by Sumeet Kapahi, Peyush Bansal, and Amit Chaudhary with a singular goal in mind: to ensure that everyone could afford and have access to eyeglasses.
The creators noticed that purchasing eyeglasses in India might be a hassle and a drain on budget due to the prevalence of offline businesses selling a restricted selection of frames at high prices.
Lenskart, an online marketplace offering a diverse selection of eyewear at affordable rates, was created to tackle these challenges. Company operations are distributed all over India, although the headquarters are in Gurugram.
Lenskart has partnered with some major names in the eyewear business. Working with manufacturers, it has sourced reasonably priced, high-quality frames and lenses. The business has also collaborated with lens makers to create its lenses, which it markets under its label.
Lenskart has also collaborated with digital companies to make online buying easy for their clients. It has teamed up with traditional retailers to broaden its consumer base and provide in-store customization options. The company’s main source of income comes from the selling of its products and several subscription plans.
Lenskart offers over 5000 frames and glasses and more than 45 different kinds of high-quality lenses. The company follows an inventory-led business model wherein equal sourcing is done from India and China. Lenskart has a team of designers and stylists that keep a tab on the latest trends in the eyewear department, the designs made by the team are then passed down to the manufacturers.
To reach the masses, they have also ventured into offline stores through the franchise model. Lenskart currently has over 2500 omnichannel stores across 175 cities in India, Singapore, and Dubai. They have balanced the reach by spreading out across metro and non-metro locations and are currently serving more than 4000 people in a day and looking at scaling it up to 200,000 people in the coming years.
4 success factors in this industry are the quality of the product, the product portfolio, the delivery time, and lastly the sales service. Lenskart has a good value proposition that provides high-quality products at an affordable price. They also have a team of 1000+ employees who operate on manufacturing, eye technicians, custom service, technology, and logistics which further expand as the growing demands.
The revenue model of Lenskart encompasses multiple revenue streams to earn revenue. The sale of eyewear products, such as frames, lenses, sunglasses, and contact lenses, constitutes the company’s principal source of revenue. The company offers a diverse selection of items, making it suitable for customers of varying ages and requirements.
Glasses accounted for the bulk of Lenskart’s income, making nearly 95% of its total. Compared to the fiscal year of 2023, when it was INR 1,618.3 Cr, Lenskart’s total revenue, including other income, was INR 3,927.9 Cr, an increase of 142.7%. Fees for training, services, and in-home vision tests are some of the other ways the business makes money.
The subscription-based services that Lenskart offers are another source of revenue for the company. Lenskart Gold is a subscription program that offers users exclusive perks, such as free eye tests, free home eye check-ups, and savings on eyewear items.
Additional accessories and add-ons: Lenskart also provides additional accessories such as eyeglass cases, cleaning solutions, and lens wipes, in addition to further add-ons such as coatings that are scratch-resistant and anti-glare.
Fees for franchises: The company generates revenue by collecting franchise fees from optical retailers that are partners with it.
The business model of Lenskart is a business-to-consumer (B2C) approach, which is centered on sales. Direct sales of the company’s products to end users at affordable prices are made by the business. In addition to that, the organization places a strong emphasis on the most up-to-date fashions and trends, as well as durability and flawless quality. Their robotic technology comes from Germany and is imported from there. Because of this cutting-edge technology, Lenskart is the only company that is capable of producing eyewear that is accurate to within three decimal places and performs efficiently. The incorporation of these innovations into Lenskart’s business cycle enables the company to offer a product that is not only one-of-a-kind but also technologically advanced. Lenskart’s products distributorship primarily involves a franchise network, where franchisees manage physical stores and promote the brand to local customers. As a result, increasing the amount of revenue generated through the sale of these articles.
Lenskart Financials FY24
Lenskart Financials
FY23
FY24
Operating Revenue
INR 3788 crore
INR 5428 crore
Total Expenses
INR 4025 crore
INR 5550 crore
Profit/Loss
INR -63 crore
INR -10 crore
Lenskart’s financials show significant improvement from FY23 to FY24. Lenskart’s operating revenue grew by 43%, increasing from INR 3,788 crore to INR 5,428 crore. Total expenses also rose by 38%, from INR 4,025 crore IN FY23 to INR 5,549.5 crore in FY24. Although Lenskart still recorded a loss, the loss amount was reduced by 84%, from INR 63 crore in FY23 to INR 10 crore in FY24.
Lenskart Financials FY24
Lenskart USP
Suitability: Lenskart provides its clients with a shopping experience that is both convenient and easy. In addition to in-store and online shopping, customers can use the company’s website to schedule in-home eye exams. Customers may easily get the glasses they need without leaving the comfort of their homes.
Customization Lenskart provides its consumers with the opportunity to create their own unique buying experience. Customers can view how various frames will appear on their faces with the company’s virtual try-on tool on the internet. Lenskart also features in-store optometrists who are qualified to assist clients in selecting the ideal eyewear.
Excellence: Lenskart provides customers with long-lasting items that are crafted from top-notch materials. Customers have 14 days from the date of purchase to return an unsatisfactory item, according to the company’s generous return policy.
Lenskart SWOT Analysis
Lenskart SWOT Analysis
Lenskart Strengths
With its integrated model, Lenskart manages every step of its supply chain, from raw materials to finished products. Because of this, they can manage their inventory more efficiently, ensure faster delivery, and monitor quality.
Lenskart uses a hybrid retail strategy combining online and offline stores to serve a diverse consumer base. Physical stores provide instant service, credibility, and the ability to touch and feel products, while online platforms offer convenience.
In terms of technological innovation, the firm has always been ahead of the curve when it comes to improving the client service they provide. One thing that sets them different from other eyeglass stores is their virtual 3D try-on technology.
Branding and marketing efforts by Lenskart have been highly visible, elevating the company to the forefront of India’s eyewear industry.
Trust and customer happiness have always been Lenskart’s top priorities, which is why the company offers easy returns and product guarantees.
Lenskart Weakness
Although it has many advantages, the hybrid model of brick-and-mortar and Internet shops can create certain operational challenges. It can be difficult to manage logistics, and inventory, and maintain a consistent brand experience on both platforms.
Like many eCommerce platforms, Lenskart frequently uses sales and promotions to entice customers. This may lead to a decline in profit margins and establish a discount-focused expectation among customers.
Eyewear is a highly competitive industry, and this is true both online and offline. Potentially troublesome are competing brands, particularly long-standing global ones.
Lenskart Opportunities
The rising purchasing power of middle-class consumers and the general public’s focus on eye health point to a promising future for the eyewear industry in countries like India.
With the continued growth of internet access, particularly in emerging nations, the pool of potential customers for online eyeglass purchases is growing.
Expanding into adjacent product categories, such as high-end eyewear, specialized sports eyewear, or smart eyewear, could open up fresh avenues for expansion and revenue generation.
There is a substantial opportunity in smaller cities and villages, where the penetration of branded eyewear is lower than in metropolitan areas.
Lenskart Threats
Problems may arise if the governments of the countries where Lenskart does business were to alter their policies regarding online sales, imports, or exports.
The dynamics of the eyewear market or the viability of specific services could be altered by introducing new, possibly disruptive technologies due to the rapid pace of technological innovation.
Natural catastrophes, pandemics, or geopolitical conflicts are just a few examples of the kinds of disruptions that can affect the supply chain and cause problems with inventories or delays in deliveries.
The eyeglasses market is vulnerable to fake goods. Lenskart must consistently check the things it sells for authenticity if it wants to keep its reputation intact.
The Omni Channel Method
Lenskart started as an online business, but when they understood that Indian customers prefer to touch and feel the product before buying a high-involvement product, this is when they shifted to the Omni Strategy. It was important for them to leverage technology to actively engage their customers and adapt to the ever-changing consumer expectations.
With this strategy, the company focuses on delivering the right product, at the right time and the right place. For Lenskart, customer engagement is more important as they help their customers get a shopping experience tailored to their preferences. Lenskart is trying to keep itself close to the customers and increase trust by providing a value proposition.
Lenkart is known to give bundled offers like buying two at the cost of one or cross offers like giving the first frame for free, real-time offers, personalized recommendations, email coupons, etc. Lenskart has expanded to various cities which are based on the franchise business model in which 35% of all revenue is shared with the franchisee and an annual fee of INR 2 lakhs.
Growth Drivers for Lenskart
“The first frame is free” offer – Where the customers will pay for only the lens on their first purchase. A good strategy to attract first-time buyers.
“Try at home” –Where the customers can choose a maximum of 5 frames and try them at home before making a final purchase. This has led to more sampling by customers.
Eye checkups by optometrists at home across cities have been introduced.
Innovative use of technology – Developed a 3D facial visualizer where customers can see how the frames will look on them.
Features of Lenskart
The main features of Lenskart making it a popular eyewear brand are:
Lenskart’s competitors include both online and offline players. Even traditional retailers who specialize in eyewear are the competitors of Lenskart. Competition is heating up in this space with players like GKB, Lawrence and Mayo, Titan Eye Plus, Bausch and Lomb, Vision Express, Specsmakers, Coolwinks, Deals4Opticals. Some manufacturers like Ray-Ban, Essilor have their own online stores.
Lenskart faces competition from eCommerce marketplaces like Amazon, Flipkart, Paytm Mall, and Snapdeal which sell eyewear and impact its business directly. With a market size of Rs. 18000-20000 crore, organized players account for barely 9-10% of the market. The brands compete with a vast variety of low-priced products available offline and online so the challenge is to steer customers away from local opticians and keep them loyal.
Challenges and Future Growth Opportunities
Lenskart has experienced rapid growth, but it faces several challenges along the way. One of the primary obstacles is the intense competition from both other eyewear brands and online platforms, which makes it challenging to stand out in a crowded market. Additionally, Lenskart must ensure that its customer service remains consistent across both online and offline channels, which can be difficult to manage effectively. Scaling operations in smaller towns presents another challenge, as the purchasing power and demand for premium eyewear may be lower compared to metropolitan areas.
Despite these challenges, Lenskart also has substantial growth opportunities ahead. As more Indians become aware of the importance of eye health and opt for stylish eyewear, there is a growing market for quality products. The increasing demand for blue light-blocking glasses, driven by the rise in screen time, and the expanding middle-class population, create significant potential for continued growth and expansion within the industry.
Conclusion
Lenskart, whose slogan is “Our mission is to give India a Vision,” is among India’s most successful unicorn corporations. In the years to come, the eyewear brand plans to offer the greatest eye care solutions and use its low-cost franchise model to reach a variety of people. For aspiring entrepreneurs looking to make an impact in the eyewear sector, Lenskart offers a business strategy that provides updated solutions. Lenskart through its defined business model gives a clear message to youngsters that customer experience, integration, the Omni channel model, and product technology should be their primary areas of concentration if they want to achieve success.
FAQs
What is business model of Lenskart?
Lenskart has a B2C business model which is highly sales-oriented. They sell their product directly to customers at an affordable price. They have a wide variety of frames within a price range of Rs.345 to Rs.30,000 and also the first frame you buy is absolutely free.
Is Lenskart a Chinese company?
No, Lenskart is not a Chinese company. Lenskart is an Indian retail chain for spectacles having factories in China as well which manufactures about 50% of the production.
What are Lenskart features?
Lenskart offers a wide range of eyewear with over 5000 frames and 45+ lens types, featuring virtual try-on technology for a personalized shopping experience. The company combines online shopping with 1500+ physical stores to provide an omnichannel experience. Customers can customize their eyewear, access subscription plans for lens replacements, and enjoy hassle-free returns. Lenskart also offers home eye checkups and maintains affordable pricing with regular discounts, making quality eyewear accessible and convenient.
What is the USP of Lenskart?
Lenskart’s USP is its wide range of stylish, affordable eyewear, enhanced by virtual 3D try-on technology and a hybrid retail model combining online and offline stores.
How is Lenskart so cheap?
Since Lenskart is a B2C company, there are no intermediaries involved to eat their revenue.
How does Lenskart make money?
Since no intermediaries are involved between buyer and seller so whatever revenue generated comes directly to the company’s account.
Why should we choose Lenskart?
Lenskart has over 5000 styles of eyewear, which is 5 times more than that any retailer in India. Also, they provide a seamless user experience to their customers. Their lenses are durable and long-lasting along with their funky to casual looks.
What is Lenskart distribution channel?
Lenskart’s distribution channels include its e-commerce platform, 1500+ omnichannel stores, franchise model, social media marketing, and retail partnerships.
How does Lenskart work?
Lenskart works by offering a wide range of eyewear through its online platform and physical stores. Customers can browse products online or in-store, use features like virtual try-on technology, and order glasses or lenses. Lenskart sources frames and lenses from manufacturers, provides customization options, and ensures quick delivery. It also offers subscription plans for regular lens replacements and has customer service for support and adjustments.
What are Lenskart brands?
Lenskart offers eyewear under the following brands:
Lenskart – The main brand offering a wide range of eyewear.
John Jacobs – Premium eyewear collection.
Vincent Chase – Stylish and affordable eyewear.
Oaks – Budget-friendly eyewear brand.
Dita – High-end luxury eyewear brand.
These brands cater to different customer segments, from affordable to luxury eyewear.
How many Lenskart total stores in world are there?
Titan is one of the most popular watch manufacturers in India with a revenue of 21,204 crore rupees as of 2020. This public company was established in 1984 and has expanded to be the fifth-largest watch manufacturer in the whole world and also the largest branded jewelry maker in India. More than 80% of its revenue comes from the latter.
The firm is a part of the Tata group and started its journey in a joint venture with TIDCO. The one thing that we should appreciate about Titan is its diverse revenue streams and the immense trust that its customers have in them. The firm changed its name from Titan Co to Titan Industries Ltd in 1993. This article will explore the business model of Titan.
Titan Business Model
Titan’s business pattern comprises a set of diversifications and a customer-first approach towards establishment across several consumer segments. Previously, the company was well known for quartz watches but has transformed itself into a premium and smart-watches company, while the jewelry vertical which is symbolized by Tanishq fetches approximately 82% of the total revenues. The company is further strengthened by Tanishq’s reputation for transparent pricing and high-quality gold and diamond jewelry.
The company has again opened up through eyewear products known to many customers with the Titan Eye+, and later to fragrances and fashion accessories further strengthening the company’s diversity. Titan has already established exclusive retail networks in over 1,300 stores across India. Titan thus captures all the market routes – physical, digital, and even e-commerce avenues – bringing services that offer customers better access and engagement with these availabilities. Strong brand trust, high pricing, and value-added services such as after-sales support and customization create durable relationships with customers.
Many advantages should remain with Titan in case it goes commercial because one drawback is the dependency on the Indian market, which limits its global reach, and the next is the fierce competition from domestic and foreign players in the jewelry and watch segments. On the other hand, the increase in disposable incomes gives a growth opportunity; further avenues of creating international reach with certain strategic alliances with global brands open up.
Key Activities of Titan
Titan is known for its quality manufacturing and sales. In 1984 it started manufacturing quartz analog watches and further diversified into various other products.
Today they manufacture watches, eyewear, perfumes, and jewelry. Their branches also cater to the requirements of people of all age groups. They provide the best experience to their customers.
Monetising Heritage
The biggest factor that multiplies the sales of Titan Company Limited today is the sense of the superior quality of craftsmanship associated with the firm. Their product quality is admired by most of the users. One of the main reasons for this is their people-centric vision of creating and elevating experience that impacts the world.
Their mission has always been to create a value-driven culture that nourishes innovation, performance, and the highest global standards in everything they do. Throughout their businesses, how they pitch themselves ensures that customers take precedence over anything else.
There is absolutely no doubt about the fact that it is in fact the people who made Titan the brand that it is today. They have reached a position at which they are capable of monetizing the heritage that they have proudly inherited through years of delivering quality products.
There are multiple platforms through which Titan makes its products available to the people. On the other hand, they have many exclusive outlets in the name of Titan across most of the cities in India. There are outlets in other countries too.
Some of these outlets sell all the products by the Titan group while most of them are exclusive showrooms that sell particular products like watches, eyewear, jewellery et cetera.
They also have exclusive online websites through which the customers can directly place orders and get them delivered to their doorsteps. Apart from that Titan has also partnered with most of the key platforms through which they make their products available.
Titan Website
In fact, Titan has done and is continuing to do everything possible to make their products accessible and affordable to all sections of society.
Customer Relationship
Customers are one of the biggest assets of the company. Hence they have enabled various options to give the best experience to the customers. As a part of this, they have devised a customer support service that can be reached at 18002660123. The customers can also raise their concerns by writing to customercare@titan.co.in.
Alternatively, the customers can also directly reach out to the offline customer care centers or showrooms with the product and its receipt.
The diverse product range is the revenue driver for Titan, with jewelry being a significant portion of its earnings. The jewelry division, which accounts for nearly 89.1% of earnings, has come under the banner of Tanishq, which reported revenues of around INR 10,696 crore (approximately $1.3 billion) according to the latest financials. The watches and wearables segment, on the other hand, reports 7.6% of total revenues at roughly INR 913 crore due to increased demand for both smartwatch and traditional watch acquisition. Titan Eye+ eyecare contributes 1.7% and generates INR 203 crore. Additional revenue streams from other business activities bring another 1.7% to the overall revenues, amounting to INR 199 crore.
Titan’s success in revenue is backed by several strategic advantages. The Tanishq brand is widely perceived as a marker of quality and trust and thereby also earns decent customer loyalty, as well as high sales volumes. Furthermore, its diverse segments in jewelry, watches, and eyewear mitigate the risk of market fluctuations in any one category. Titan has a deep and extensive retail network that ensures accessibility and presence towards driving sales. These vary from jewelry, but Titan enjoys income from the other segments as well, thus supporting itself through a very good brand reputation and extensive retail reach to ensure a foothold growth across several markets.
As far as the watch manufacturing is concerned they have multiple sub-branches that are titled FastTrack Helios, Xylys, Titan Raga et cetera. It might be a surprise that despite the watches being the most popular product of the company, it only contributes a small amount.
They are the primary growth drivers of the firm. It can be rightly concluded that all Titan is known for their watches it is their business that happens in Tanishq that drives the business forward.
Titan Company Limited Financials
Fiscal Year
Operating Revenue
Total Expenses
Profit-Loss
FY22
INR 27,210 crore
INR 25,037 crore
INR 2,173 crore
FY23
INR 38,270 crore
INR 38,270 crore
—
FY24
INR 47,600 crore
INR 44,298 crore
INR 2,816 crore
Titan Company Limited Financials
Titan – Unique Selling Proposition
Titan Company has forged a unique lifestyle proposition that is all about quality, craftsmanship, and innovation in watches and jewels. With an ever-expanding range of immaculate materials and avant-garde designs, luxury and budget access market segments of watches, ornaments, and eyeglasses for the company. The technological advancements that bolster its competitive edge include Titan Edge, which is ultra-slim.
Backed by the Tata Group, Titan enjoys unquestionable consumer loyalty. The brand emphasizes experiential retailing where an engaging shopping experience is created and has a strong commitment to sustainability and corporate responsibility. Accessibility across price points and its reputation of being reliable make Titan’s value proposition about extraordinary customer experiences that set the standards and instill trust, thereby making Titan a leader in India’s lifestyle market.
Businesses by Titan – Iconic Brands of Titan
Titan
FastTrack
Zoop
Sonata
Titan eye plus
Mia
Titan clock
Taneira
CaratLane
Titan Raga
Skinn
Zoya
SF
Tanishq
Helios
Octane
Xylys
Nebula
Fabre-Leuva
Titan SWOT Analysis
Titan SWOT Analysis
Titan Strengths
Brand Equity: Titan enjoys a whopping brand equity due to its commitment to quality and innovative designs that have earned a loyal clientele.
Product Diversification: It has been manufacturing a variety of products-from clocks and watches to jewelry with the Tanishq brand, eyewear, and perfumes. Market fluctuations are, therefore, not a major threat to this diversification.
Widespread Distribution Network: Titan has a good network of retail outlets, including exclusive showrooms like ‘World of Titan’, giving it a presence in various segments of the market.
Creativity and Design Excellence: Due to uniquely designed and technologically superior products, like smartwatches and high-end jewelry, Titan has been the most favored name in a sea of competitors.
Titan Weaknesses
Heavy Dependence on the Indian Market: A significant share of Titan’s revenue comes from India, exposing it to economic downturns in that country. Although efforts are being made to expand abroad, the international footprint still remains limited.
Vulnerability to Gold Price Fluctuations: The jewelry segment’s heavy reliance on gold exposes Titan to developments affecting fluctuations in gold prices, which can impact profit margins and consumer demand.
Counterfeit Risks: The uniqueness of the designs of Titan products increases their counterfeiting potential, capable of undermining the brand’s value and sales.
Titan Opportunities
International Market Expansion: Titan can invest in expanding territories abroad in adopting markets, such as countries with hefty Indian diaspora or love for Indian craftsmanship. This could be useful primarily for the Tanishq brand.
Innovation in E-commerce: Titan must therefore harness eCommerce capabilities to propel itself further into the prospects of online shopping.
Premiumization: With increasing disposable incomes expected from Vise economies and India, consumption demand for luxury items has increased. Titan now has the opportunity to thrift on the opportunity by manufacturing premium jewelry and watches.
Sustainability Commitments: Titan will carry on with sustainable sourcing practices, along with ethical methods, particularly in terms of its jewelry, so that the company can attract customers who want to consume more socially and improve its position.
Titan Threats
Economic Recession: Some unfavorable economic conditions would lead to less consumer spending, and it would consequently create an adverse impact on sales from all other segments.
Stringent Competition: It is being burdened by tough competition with international luxury brands like Rolex and Swatch as well as domestic brands like Kalyan Jewellers which may be exerting pressure on their market share and pricing strategy.
Changing Consumer Preferences: Sales are also susceptible to changes in the tastes and preferences of consumers, particularly those with regard to watches and jewelry which are fashion-sensitive.
Regulatory Challenges: The implication of operating in a highly regulated industry is that changes in taxation or import/export-related government policies would unfavorably affect their operations.
Conclusion
From the looks of the business model of Titan, they will likely continue to thrive in the years to come. They have a knack for expanding their businesses to newer areas while retaining the quality of whatever was existing.
The very fact that Titan watches are the most preferred and popular among middle-class people in India is a testament to it. Heritage is something that we inculcate through commitment and passion. This is one thing that one should learn from the functioning of the Titan group.
FAQs
Is Titan an Indian brand?
Yes, Titan is an Indian brand that mainly manufactures fashion accessories such as watches, jewelry, and eyewear.
Does Titan own Tanishq?
Yes, Tanishq is an Indian jewelry brand and a division of Titan Company.
How was Titan Company formed?
Titan was formed between the joint venture of Tata Group & Tamil Nadu Industrial Corporation in 1984.
Titan Company is owned by Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO). Tata Group, through Tata Sons, is the majority shareholder.
Is Titan a Tata product?
Yes, Titan is a Tata Group brand. Titan Company is a joint venture between Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO).
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
Faster, stable, and more efficient internet is a major factor behind the rise of many startups. However, some startups were pure visionaries, established way before this modern internet connectivity. IndiaMart was one of such startups that were conceived of before the internet became such easily available and accessible as it is today.
When IndiaMART company was founded by the cousins Dinesh Agarwal and Brijesh Agrawal in 1996, the internet was far from being a household term in India. The IndiaMART founders could very well visualize the revolution that India was about to see with better internet connectivity. Starting with a capital of just Rs 40,000, today IndiaMART is India’s largest and the world’s second-largest B2B e-commerce marketplace.
So, let’s have a peek into the startup journey of this 25-year-old company, which is making the eCommerce business easy for many individuals, SMEs, and large enterprises.
Learn about IndiaMART’s history, founders, owners, business and revenue model, founders and team, funding and investors, challenges, competitors, name, tagline and logo, awards, acquisitions, and more.
IndiaMART is a leading B2B e-commerce company in India that connects suppliers with buyers. It has around 60% market share in B2B e-commerce along with partnerships with leading brands like Tata, Airtel, Hyundai, Bosch, Canon, and a lot more. It trades almost everything from apparel, and home furniture to electronics, and building equipment. The company provides business visibility and credibility to its buyers and sellers with enhanced trust and experience of 24 years.
IndiaMart has also ventured into some other sectors, other than being a B2B e-commerce. Operational subsidiaries of India Mart include –
Tolexo Online Pvt. Ltd. (TOPL) – Founded in 2014, Tolexo.com was a B2B e-commerce retail and B2B Wholesale platform. In 2017, IndiaMart company announced that it is closing the retail B2B wing of Tolexo.com due to underperformance. Currently, Poora.com (a subsidiary of TOPL) is offering order management services to businesses.
Ten Times Online Private Limited (TTOPL) – Founded in 2013, 10times.com is a platform for business event discovery and networking.
Pay With Indiamart Private Limited (PWIPL) – Started in 2017, It is a payment gateway that lets sellers collect instant payment from buyers through the Indiamart platform.
Hellotravel Online Pvt. Ltd. – Founded in 2009, this platform connects travelers to travel agents.
IndiaMART – Founders and Team
Indiamart Founders
Dinesh Agarwal and his cousin Brijesh Agarwal are the founders of IndiaMART.
Dinesh Agarwal
IndiaMART Co-founder CEO Dinesh Agarwal hails from a traditional business family in the Napara district of UP. Agarwal completed his schooling from a Hindi medium school. He then obtained his B.Tech degree in Computer Science & Engineering from Harcourt Butler Technological Institute, Kanpur. Agarwal served in a number of companies before landing a job at HCL for which he needed to move to the US. He was associated with HCL Technologies as a Senior System Analyst before launching IndiaMART. Dinesh also served as a Software Engineer at CDOT Alcatel Research Centre.
Brijesh Agrawal
IndiaMART Co-founder and DirectorBrijesh Agrawal completed his BMS from the University of Lucknow. He then completed his PGDBM from NIILM, after which Brijesh joined Dinesh Agarwal in his venture.
IndiaMART had around 2,754 employees across different cities in India when last reported in March 2021.
IndiaMART – Startup Story
After graduating in software engineering, Dinesh started receiving lucrative job offers. After working in India with different organizations for 5 years, Dinesh went to the US, where he worked with CDOT for 3 Years. He was leading a comfortable life until one day he realized that he was not passionate enough about the work he was doing and had a calling to start something of his own. This made Dinesh return to India in 1996.
Dinesh was one of the early internet users and realized that the internet can do wonders in promoting businesses, so he decided to build a platform where businesses could display their products through dedicated web pages. Dinesh started the eCommerce business from his flat in Delhi in 1996 as an export marketplace with Brijesh.
However, finding clients was a difficult task initially for IndiaMART because many businesses were not aware of computers and the internet. They did not know how the internet could help in growing their business. So, they appointed some marketing and sales guys, who could educate the businesses about what the internet could do to them, thereby helping IndiaMart acquire new clients. They also started participating in trade fares held in Pragati Maidan to spread more awareness about their eCommerce business. The first client India Mart received was ‘Nirula’s’ – the famous first food chain in North India. IndiaMart then had to build and maintain Nirula’s website for an annual charge of Rs 32000/-.
The company initially started by offering free listing services to eCommerce businesses, and once the businesses listed started getting queries from around the world, IndiaMART’s sales representatives used to approach the businesses to report their progress. Once the business was convinced that getting their business listed on IndiaMart was helpful, they started buying paid services and the platform started growing gradually.
However, in the absence of proper internet-based infrastructure, challenges for the company were many. IndiaMART could not even send e-mails to the businesses regarding the queries these businesses were receiving through IndiaMART, as many businesses did not even have e-mail ids. The IndiaMART team had to take printouts of the queries they received and fax the same to the respective businesses. But despite all the challenges, IndiaMART acquired around 1000 clients till 1999.
Another challenge appeared before the company with the 9/11 attacks, exports were hard hit due to the tragedy and IndiaMART’s revenue came down by almost 40%. But the team continued its efforts.
A major turning point came when IndiaMART company shifted focus from export to Domestic market and started serving the eCommerce business within the country. Today over 6 million suppliers are registered with IndiaMART.
IndiaMART – Mission and Vision
Indiamart has been founded with a mission ‘to make doing business easy.’ Indiamart is fueled with the vision of retaining its lead in the B2B e-commerce segment in India.
IndiaMART – Name, Tagline and Logo
IndiaMART Logo
IndiaMart has brought out numerous taglines like “Kaam Yahin Banta Hai” and “Bada Aasaan Hai” till now. ‘The Global Gateway To Indian Marketplace” was the first tagline that IndiaMART recorded.
IndiaMART – Funding and Investors
IndiaMart has raised total funding worth $40.8 million over 4 rounds. In June 2019, IndiaMART launched its IPO, which turned out to be one of the most loved IPOs in 2019. As per NSE, IndiaMART IPO cumulatively received bids of 9,66,86,235 equity shares, which is 35.91 times higher than its total issue size of 26,92,824 equity shares.
Date
Stage
Amount
Investors
Feb 17, 2021
Post IPO
Undisclosed
Jefferies, Edelweiss
June 24, 2019
Venture Round
$28.24 Million
Elevation Capital
March 9, 2016
Series C
–
Amadeus Capital Partners
Jan 14, 2009
Series A
$10 Million
Intel Capital
Jan 1, 2007
Venture Round
–
Brand Capital
IndiaMART – Shareholding
IndiaMART’s shareholding pattern as of May 2019, sourced from Tracxn:
IndiaMART Shareholders
Percentage
Dinesh Agarwal
31.8%
Brijesh Agarwal
21.4%
Intel
12.8%
WestBridge Capital
5.1%
Amadeus Capital
5.8%
Accion
3.8%
Brand Capital
0.3%
Other People
3.5%
ESOP Pool
4.3%
Other Investors
11.3%
Total
100.0%
IndiaMART Shareholding
IndiaMART – Business and Revenue Model
The oldest B2B eCommerce marketplace, IndiaMART operates on a subscription-based model for suppliers. While IndiaMART is totally free for buyers, its main source of revenue is subscription fees received from the sellers, sell of ‘request for quote’ received from the buyers, and the payment facilitation services that it offers. Furthermore, IndiaMART also earns advertising revenue by letting individuals and businesses post advertisements on the IndiaMART app.
Indiamart- India’s largest marketplace
IndiaMART – Growth and Revenues
From starting up when the B2B e-commerce sector was still upcoming to being hailed as the largest operator in the segment, IndiaMart’s success story is itself a testament to the growth it received. Furthermore, IndiaMart is also dubbed as the world’s second-largest online B2B marketplace.
Here’s a glimpse into the prominent growth highlights of the company:
The company boasts a network of over 143 million registered buyers and 6.4 million+ suppliers
IndiaMart hosts a whopping collection of 71 million+ products and services
It has a staggering 60% market share of the online B2B Classified space in India
The B2B giant has further pulled in 259 Mn+ hits on its website and app in the December quarter of 2021
IndiaMART recorded opening 52 offices in 52 weeks, which boosted its sales 10X times in a single year
IndiaMart has adopted a weekly salary pay disbursal system with an aim to extend a flexible and supportive working environment for its employees. Studied and identified as one of the most critical things that influence an employee, weekly payouts for employees have been practiced in many countries like New Zealand, the United States, Hong Kong, Australia, and more and have yielded successful outcomes.
IndiaMART – Financials
IndiaMART InterMESH Limited has demonstrated consistent growth over the past five financial years, with notable increases in revenue and profitability.
Particulars
FY24
FY23
FY22
FY21
FY20
Revenue
INR 1,196.8 crore
INR 985.4 crore
INR 859 crore
INR 756.1 crore
INR 707.4 crore
Expenses
INR 910.8 crore
INR 756.7 crore
INR 463 crore
INR 364.1 crore
INR 494.4 crore
Profit/Loss
INR 334.0 crore
INR 283.8 crore
INR 297.6 crore
INR 279.8 crore
INR 147.4 crore
IndiaMART Financials
In FY24, IndiaMART’s revenue increased by 21% to INR 1,196.8 crore from INR 985.4 crore in FY23, while profit rose by 18% to INR 334 crore from INR 283.8 crore.
IndiaMART Revenue Breakdown
Revenue Source
FY24
FY23
Revenue from Operations
INR 1,196.8 crore
INR 985.4 crore
Other Income
INR 2,106.1 crore
INR 1,805.3 crore
Total Revenue
INR 1,196.8 crore
INR 985.4 crore
The company’s revenue from operations grew by 21% in FY24, reaching INR 1,196.8 crore, up from INR 985.4 crore in FY23.
IndiaMART Profit/Loss
Profit Metrics
FY24
FY23
Gross Profit
INR 496.6 crore
INR 409.2 crore
Operating Profit
INR 454.4 crore
INR 371.3 crore
Net Profit/Loss
INR 334.0 crore
INR 283.8 crore
Net profit increased by 18% in FY24, amounting to INR 334 crore compared to INR 283.8 crore in FY23.
IndiaMART Expenses Breakdown
Expense Type
FY24
FY23
Employee Benefit Expense
INR 5,440.7 crore
INR 4,247.4 crore
Finance Costs
INR 89.1 crore
INR 81.5 crore
Amortization & Depreciation
INR 364.6 crore
INR 310.8 crore
Other Expenses
INR 3,213.5 crore
INR 2,927.8 crore
Total Expenses
INR 9,107.9 crore
INR 7,567.4 crore
Total expenses rose by 20% in FY24 to INR 9,107.9 crore from INR 7,567.4 crore in FY23, primarily due to increased employee benefit expenses and other operational costs.
Being a pioneering Indian B2B e-commerce company, IndiaMart had to face numerous challenges ever since it was established back in 1996. From finding clients, spreading internet awareness, and getting them listed online to help them gain a convincing reputation online, IndiaMart has seen its share of challenges.
Back when IndiaMart was established, emails weren’t much popular so they had to take printouts of the queries and fax them. The 9/11 attack was another roadblock that IndiaMart saw when their exports were hugely truncated, which dragged down the revenues with them.
Indiamart also faced the backlash of 2012 when the economy slowed down in India.
IndiaMart company has recently been featured by the United States Trade Representative (USTR) as one of the most notorious markets. The Notorious Market List of 2021 compiled a total of 42 online and 35 physical markets across the world, and all of these markets, according to USTR, are involved in trademark counterfeiting or copyright piracy. The Trade Representative report of the US censured the popular Indian eCommerce platform as the hub of counterfeit pharmaceuticals, electronics, and apparel.
IndiaMART – Awards
Here’s a glance at the list of awards and recognitions IndiaMART earned throughout the years:
Red Herring 100 Asia Awards 2008
Manthan Award South Asia and Asia Pacific 2013 under the ‘E-business and Financial Inclusion’ category
‘Special Contribution Award’ at WASME – Super SME Awards, 2016
‘Best Online Classified Website Award’ at Drivers of Digital Awards, 2016
‘Best Business App Award’ at GMASA 2017 and ‘Best Business App’ at Drivers of Digital Summit & Awards, 2018
‘Best Online Classified Application’ at Drivers of Digital Summit & Awards, 2018
‘Video Content in a Business Website- Special Mention’ at Video Media Awards and Summit 2019
India Law Awards 2019 for ‘Technology, Media and Telecommunication In-House Legal Team’
“Most Promising Company of the Year” at the CNBC Awaaz CEO Awards
‘Bada Aasaan Hai’ received the ‘Best Video Content in a B2B Marketing Campaign Award’ at the Video Media Awards & Summit, 2020.
Indiamart has fully acquired 2 companies to date. The company acquired the accounting platform Busy Infotech for Rs 500 crore on 25 January 2022, before which, it acquired Playcez on 23 August 2013.
Indiamart company acquired 26% stakes in IB Monotaro, a Japan-based company, that operates in India under the brand name “Industry buying” and is focused on supplying industrial and business products for the eCommerce businesses, as per reports dated February 24, 2022. According to the deal, the popular B2B sales marketplace platform bought 810K shares from Emtex Engineering for a total consideration of Rs 104.2 crore, with an aim to offer an end-to-end commerce experience enablement and thus, serve the B2B businesses of the country.
Though there are many upcoming e-commerce companies in India, IndiaMART sustains its position with its stronger network and greater years of experience in the e-commerce field.
FAQs
What is IndiaMART?
IndiaMART is India’s largest B2B online marketplace, connecting buyers and suppliers for business trade. IndiaMART wholesale products help businesses connect with suppliers for bulk purchasing.
When was Indiamart founded?
IndiaMART was founded in 1996 by cousins Dinesh Agarwal & Brijesh Agarwal.
What is IndiaMART net worth?
IndiaMART InterMESH has a market cap or net worth of 127.48 billion as of February 14, 2025.
Which is Indiamart’s Parent company?
IndiaMART InterMESH Limited is Indiamart’s Parent company.
Who are top competitors of Indiamart?
Some of the top Indiamart competitors are:
Tradeindia
Yellow pages
Exporters India
Amazon
Flipkart
Tradekey
Udaan
Paytm Mall
CafePress
Who is the CEO of IndiaMART?
Dinesh Agarwal is CEO of Indiamart.
Who is Indiamart founder?
Dinesh Agarwal and his cousin Brijesh Agarwal are the founders of IndiaMART.
Which type of company is IndiaMART?
IndiaMART is a leading Indian B2B e-commerce company that connects suppliers with buyers. It has around 60% market share in B2B space.
Can we sell on IndiaMART?
You can Register yourself as a seller and start selling to millions of buyers across the world on Indiamart- India’s largest online marketplace. Log in as a Seller to manage your Profile.
What is IndiaMART business model?
IndiaMART operates on a B2B marketplace model, connecting buyers and suppliers online. Its subscription-based revenue model allows businesses to list products and gain visibility, while buyers can search and connect for free. The company earns from membership fees, lead generation, and advertising services, making it a high-margin, asset-light business.
What is IndiaMART revenue model?/ How does IndiaMART make money?
IndiaMART earns from paid memberships, lead generation, ads, and transaction fees, making it a recurring, high-margin model.
Wow! Momo has made many Indians fall in love with Momos. Momo is a very popular dish in Nepal but now it is sold in many metropolitan cities like Mumbai, Delhi, Kolkata, Chennai, Bangalore, and many more.
Delhiites surely love Momos more than anyone else. Wow! Momo has become the largest momo supplier and has come up with various varieties of momos. The company has over 800 stores running in India. The valuation of Wow! Momo is INR 2460 crore as of 2024.
This shows how much this startup has grown over these years. The reason behind their success is the company’s amazing business model. Let’s have a detailed look into the business and revenue model of Wow! Momo.
Wow! Momo is a fast-food restaurant headquartered in Kolkata. The company was launched in 2008. The founders of the company Sagar Daryani and Binod Homagai started the company with just Rs. 30,000. Today, the valuation of the company is in crores.
The goal of the company is to provide different varieties of tasty and hygienic momos to people. Wow! Momo specializes in momos, momo-based desserts, and momo-filled burgers which they call MoBurgs. They provide momos mainly in 3 forms: steamed, fried, and pan-fried momos. By 2024, Wow! Momo expanded to over 800 outlets in multiple cities, operating under three brands: Wow Momo, Wow China, and Wow Chicken.
Wow! Momo – Target Audience
The target audience of Wow! Momo is children and adults. The company does not want to sacrifice the quality of its food and that’s why the prices of their momos are slightly higher.
Wow! Momo targets people who want to eat fusion dishes made with good quality materials irrespective of the cost. This kind of audience mainly includes the young generation that has the enthusiasm to try out a different variety of foods.
They also target people who favor Chinese delicacies when compared with other available options. As for India, the second most favored cuisine after Indian dishes is Chinese cuisine.
The business model of Wow! Momo is designed deeply and perfectly. In the earlier stages, it was noticed that there are many types of momos available in the market.
As for momo makers, a conclusion was drawn that a momo plate of Rs 90 can also be served at Rs 40 but with few changes in the quality of the materials used for making the momos. However, Wow! Momo team was very much clear about their mission and requirements. They do not want to sacrifice the quality of momo in exchange for a low price.
As of now, the company operates in 19 different cities in India with more than 400 outlets.
The company follows the COCO(Company Owned Company Operated) business model. The company manages everything from buying food materials to processing to finally making and delivering the products. The company has made one central cloud kitchen in every city.
To make things properly organized, Wow! Momo works with the model of hub-and-spoke model for better control over each outlet in different cities. There is a precise time for different work such as cutting, chopping, and production that takes place in the central kitchen of each city.
The chopping and cutting along with the production are taken care of before the day of actual shipping by the staff of the central kitchen. Once completed, these things are then transported to different outlets by means of a chilled vehicle.
This transported material is then optimized as per the customer’s requirements at the time of serving.
Unique Things in Wow! Momo Business Model
Wow! Momo consists of an intricately planned business plan with pre-designed steps to evolve the name of Wow! Momo as a brand. Let us look at the unique things about the company’s business model.
Large Variety of Momos
A large variety of tasty momo’s
The company provides a large variety of mouth-watering momos. In total, they offer 12 different flavors of momos. As told before they provide momos in 3 forms: steamed, fried, and pan-fried momos. To give them an Indian touch these momos are fried with different sweet and spicy sauces. Wow! Momo provides both veg and non-veg momos.
Today, you can eat sizzler momos, chat momos, tandoori momos, momo burgers (MoBurgs), and baked momo Au’gratin. One of their popular desserts is chocolate momos. Recently, they have launched 2 varieties of momos – Veggie Darjeeling momo and Chicken Darjeeling momo.
Wow! Momo Essentials
Wow! Momo Essentials
During this pandemic, many brands have come up with new ideas and tried to reinvent themselves to stay in the competition. Wow! Momo has also done the same. The company noticed that due to the lockdown people were facing problems buying grocery products. So, they launched Wow! Momo Essentials to deliver grocery products.
To make this venture successful the company partnered with ITC, Nestle, P&G, and EMAMI. To deliver grocery products the company tied up with the Swiggy Grocery platform. The company claims that in February 2020, they got Rs 5 crore topline because of Wow! Momo Essentials.
Fulfills the Needs of Both Veg and Non-Veg Consumers
You will find both veg and non-veg momos in Wow! Momo. Pan-fried momos are the specialty of this company. A few varieties of momos include chicken and cheese momos, prawn momos, and Schezwan momos. They also have a variety of veg momos which includes corn and cheese momos, corn momos, mushroom momos, etc.
Outlet Formats
Wow! Momo operates in four different outlet formats: food courts, high-street restaurants, kiosks, and high-street shops. 20 people can easily sit in these shops. Restaurants have a space of 1000 sq ft.
Wow! Momo has made its name in the market because of its authentic taste and multiple fusion dishes. The company was quite clear about its agenda and it never sacrificed the quality of the product to decrease the prices.
However, Wow! Momo still succeeded in catching the attention of customers and that is the prime factor behind its revenue. The majority of the revenue is earned by selling momos through its outlets. Another strategy the company uses to earn revenue is by establishing a centralized kitchen and providing franchises for different locations.
Wow! Momo charges a royalty fee on each of their franchises and they also take care of the materials required to be supplied in each outlet. Hence, they earn enough revenue from both these sources.
Wow! Momo Financials
Wow! Momo
2022
2023
Operating Revenue
INR 220 crore
INR 413 crore
Total Expenses
INR 275 crore
INR 471 crore
Profit/Loss
INR -53.5 crore
INR -61 crore
In 2023, Wow! Momo saw an increase in operating revenue, reaching INR 413 crore, compared to INR 220 crore in 2022. However, the company’s expenses also rose to INR 471 crore from INR 275 crore, leading to a higher loss of INR 61 crore, up from INR 53.5 crore in the previous year. The company eyes for INR 650 crore revenue in FY25.
Wow! Momo – Marketing Strategy
In the start, the company used to advertise using social media highlighting its USP. For marketing campaigns, the company used a yellow color for Kiosk. Due to a shortage of finances both the founders used to sell momos in a tray by wearing Wow! Momo t-shirts.
This strategy helped them go from Rs. 2200 to Rs. 53000. They advertise aggressively using famous social media platforms like Facebook, Instagram, Twitter, etc. The company believes that opening as many outlets as possible will help the company in marketing and increase sales.
Marketing Strategy of Wow! Momo
The company comes with innovative ideas. Wow! Momo likes to experiment with its products and promotions. The company started its journey on wheels in Metros stations.
Further, they expanded to open areas in malls and corporate tech parks. They launched a food bus or truck in an amusement park in Kolkata. Due to smoke emission Wow! Momo was not able to sell momos at the airport. So, they used mango pulp as momo stuffing and named the dish mango momo dessert.
Wow! Momo – Future
Another branch of Wow! Momo was opened under the name of Wow! China
Wow! Momo is reportedly planning to launch an initial public offering (IPO) in 2027. It plans to grow by opening 200 new outlets in the next year and expanding into over 100 new cities in the next three years. It will also venture into cloud kitchens to enhance its food delivery service and strengthen its FMCG presence with new product launches ahead of its
Sagar Daryani in an interview said that he wants Wow! Momo to be listed on the stock exchange. He wants to make an international brand like KFC, Pizza hut, and Domino. They will stick with Momos and add more flavors. They are continuously working on their menu.
Conclusion
Both the Entrepreneurs Sagar Daryani and Binod Homagai had a great vision and they converted it into a reality with their amazing business model. The main key here is product innovation. They identified that momos can be converted into a big business.
To stand out in the market they knew that they needed to add more varieties and flavours. At the start, they didn’t have the required finance. Still, they didn’t lose hope and started to sell samples in malls. Due to their constant efforts Wow! Momo has become successful.
FAQs
Is Wow! Momo profitable?
No, Wow! Momo has not been profitable in recent years. In 2023, the company reported a loss of INR 61 crore, following a loss of INR 53.5 crore in 2022.
How to get Wow China franchise?
Wow! China is a part of the Wow! Momo brand and operates as a fast-food chain offering Chinese cuisine. The brand follows a franchise model, allowing entrepreneurs to open Wow! China outlets under the company’s guidance and brand name. It offers a range of Chinese dishes and aims to expand its presence in various cities.
Is Wow Momo franchise profitable?
The profitability of a Wow! Momo franchise can depend on factors like location, management, and local demand. While the brand has shown strong growth in terms of outlet expansion and revenue, it has reported losses in recent years, indicating that some franchises may face challenges.
What is Wow! Momo franchise cost?
Wow! Momo charges a franchise fee of up to INR 25,000 + GST, with the total initial investment ranging from INR 1 lakh to INR 8 lakh.
What is Wow! Momo revenue?
Wow! Momo’s revenue for 2023 was INR 413 crore, a significant increase from INR 220 crore in 2022.
What is Wow Momo origin?
Wow! Momo was founded in 2008 by Sagar Daryani and Binod Kumar. The brand started in Kolkata, India, with the aim of offering quick, tasty, and affordable momo.
How many Wow Momo total outlets in India are present?
By 2024, Wow! Momo expanded to over 800 outlets in multiple cities, operating under three brands: Wow Momo, Wow China, and Wow Chicken.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
The medicine industry has always been as disorganized as we can imagine. Though we were all pleasantly happy with the wholesale and retail market structure that the pharmaceutical industry has offered its customers, the digitalization of the same was evident. Thus, it happened.
With the digitalization of the medical industry, we can now order our medicines from a wide range of eCommerce medical stores online and get them delivered online without any hassles. One of the major players that makes online ordering of medicines easy is PharmEasy.
PharmEasy has developed a healthcare delivery platform to simplify and modernize the healthcare setup in India. The platform helps patients to stay connected with various local pharmacy stores and outlets. Data and technology are the driving factors behind a robust health and well-being ecosystem today and PharmEasy is leveraging both of them to strengthen healthcare in India.
If you are wondering “What does PharmEasy do?” then PharmEasy serves as an online pharmacy and handles the hassle-free delivery of medicines and other medical equipment. PharmEasy operates in several major cities in India. Shopping for medicines online has thus, become convenient and easy through PharmEasy. The company delivers medicine and other medical equipment to thousands of customers every day.
Recently, API Holdings, the parent company of PharmEasy, had its valuation reduced to $458 million in September 2024. This is a big drop of around 92% from its previous highest valuation of $5.6 billion in 2021. One of its investors, Janus Henderson lowered the value of its investment in PharmEasy by 91.8%.
PharmEasy’s parent company, API Holdings, is seeing a major shift as three of its co-founders—Dharmil Sheth, Dhaval Shah, and Hardik Dedhia—step away from active roles in the organization.
Read on to find out more about PharmEasy’s success story, founders and owners, net worth, business model, growth, competitors, revenue model, funding details, and acquisitions.
PharmEasy – Company Highlights
Startup Name
PharmEasy
Headquarters
Lal Bahadur Shastri Marg, Mumbai, India
Founder/Owner
Dharmil Sheth, Dr. Dhaval Shah
Founded
2014
Net Worth/Valuation
$458 million (November 2024)
Parent Organization
91streets Media Technologies/API Holdings Private Limited
Pharmacy is an e-commerce platform for the purchase of medicines and other healthcare-related equipment. Whenever one uploads a prescription on PharmEasy, it is then sent to a drugstore in their vicinity. The company uses a mobile app and web technology to offer the best quality healthcare products and essentials to its customers at affordable rates.
You might be thinking, “Ah! discounted products, they would be of cheap quality for sure.“ But no, a discount has nothing to do with compromise in terms of quality. The pharmacy provides top-notch products at par with the quality that you can find in reputed pharmacies and medical stores.
Once PharmEasy sends your medical prescription to the drugstore, a delivery agent collects the medicines from the drugstore while adhering to all sorts of precautions and guidelines. Your order is then packaged and eventually delivered to your doorstep.
PharmEasy – Industry
Along with all the industries of now, the medicine/healthcare industry has also been witnessing decent growth empowered by the penetration of new-age technologies and the internet. Internet users have already grown at a CAGR of 18.17% between 2015 and 2019 and are further expected to rise at a CAGR of 9.3% till 2028. Besides, the e-commerce transactions also increased by 26.2% in 2023.
The market of Indian e-pharmacies is predicted by a leading consulting firm to grow greater than 7X times between 2019 and 2023. It reached a total value of $394.09 million in 2024 and is expected to rise to $801.34 million by 2030, at a CAGR of 12.62%, which is fascinating, to say the least.
PharmEasy – Founders and Team
Dharmil Sheth and Dr. Dhaval Shah are the founders of PharmEasy.
Dharmil Sheth and Dhaval Shah
Dharmil Sheth
Dharmil is the Co-founder of PharmEasy along with being the Co-founder of API Holdings. He is also the founder and president of Ekagrata. Sheth also founded 91streets before founding PharmEasy. Dharmil is an Electronics Engineer with a Btech degree, after which he obtained an MBA in Marketing from IIM Ghaziabad. Techno Gravity Solutions and MakeMyTrip.com were among the first companies that Dharmil Sheth worked with in Business Development and as a Summer Intern respectively.
Dr. Dhaval Shah
Dr. Dhaval Shah has an MBBS from Rajiv Gandhi Government Medical College, after which he pursued an MBA from XLRI Jamshedpur. Shah has been the General Secretary at both of his colleges. He eventually became a Consultant at McKinsey & Company and then founded PharmEasy and API Holdings.
The team behind PharmEasy has set its sights on becoming India’s best healthcare delivery venture. The focus at the moment is digitization to the maximum possible extent. PharmEasy is a private company that is adding new employees to its task force every other day.
PharmEasy is undergoing a significant change as three co-founders of the parent organization, API Holdings—Dharmil Sheth, Dhaval Shah, and Hardik Dedhia—step back from active roles in the firm.
Siddharth Shah, the fourth co-founder, will continue to lead the company.
As per a company statement on 22 January 2025, the three co-founders will remain part of the group, align their shareholding for the long term, and continue as board members or observers, but they have chosen to step away from daily executive responsibilities.
PharmEasy – Startup Story
Dharmil Sheth, the founder of PharmEasy, and his doctor pal, Dr. Dhaval Shah came up with the idea of building an online pharmacy. Both of them agreed on the potential of technology in the healthcare sector and it is this idea that primarily gave rise to PharmEasy in 2014. Presently, the company extends its supplies to nearly 98% of the Indian pin codes.
The company wanted to achieve the mission of doorstep delivery of everything related to healthcare, which it is always on the verge of achieving. Digitization has become an integral component of India’s healthcare industry. Be it scheduling a doctor’s appointment or delivery of reports and medicines, every step in the industry has been digitized. A major chunk of the credit goes to the e-pharmacies like PharmEasy for this initiative. The “health commerce industry” in India is growing at unprecedented rates courtesy of these e-pharmacies.
PharmEasy – Name, Tagline and Logo
“Take it easy PharmEasy” says the tagline of the company.
PharmEasy Logonet
PharmEasy – Business Model
PharmEasy delivers medicines and other medical accessories across Indian towns and cities. It is like Grofers for medicine. The pin codes maintained by PharmEasy are used to identify pharmacies closest to the customers. Customers can either access PharmEasy’s website or use its mobile app to order items. They are entitled to discounts of up to 20% if they order using the mobile app, which further increases brand recognition and adds new customers to PharmEasy.
PharmEasy is an e-pharmacy, the processes of which are mostly online acting as a 3-way chain between the buyers, suppliers, and the distribution network.
Buyers – PharmEasy is a ready platform from which buyers can search for their medicines or healthcare accessories and buy them online without any hassles.
Suppliers – PharmEasy collaborates with a wide range of local suppliers and medical shops, all of which help the company arrange their stocks and keep them live online. Besides, the company also earns revenue from various pharmaceutical companies that want to showcase their products online and on the PharmEasy app as featured brands.
Distribution channel – PharmEasy operates with a vast distribution spread out all across the nation. This helps the company to deliver its products for a broad range of pin codes all over India.
Due to various rules and regulations set by the Indian government, the company doesn’t deliver Schedule H drugs.
Why do people abstain from e-pharmacies? Research has found that most people do this because they aren’t sure where the medicines are coming from. PharmEasy is dispelling this notion for good!
PharmEasy primarily earns by displaying the sponsored results of various pharmaceutical entities. These kinds of advertisements are found on the home pages of such organizations. Advertising is a major source of revenue and this e-pharmacy leverages it to the hilt. Besides, with the new-age strategies, you can now advertise your products, services, or business with little or no money and market your brand. Attractive discounts also contribute to PharmEasy’s revenue. Furthermore, PharmEasy earns commission from its customers for the healthcare products and medicines that are sold via the platform. The brand also earns through the delivery charges that get levied on the products.
PharmEasy – Funding and Investors
API Holdings, the parent company of PharmEasy, has raised INR 1,804 crore ($216 million) in a funding round led by Ranjan Pai’s Manipal Education and Medical Group (MEMG) along with its existing investors on 29 April 2024. However, this new investment comes with a 90% drop in the company’s valuation from its highest point. The valuation of PharmEasy as of September 2024 is $458 million, slashed 92% from the peak of $5.4 billion.
PharmEasy has received $1.7 billion in funding to date in over 14 rounds. PharmEasy had last raised a private equity fund from VestinWolf Capital Management after raising a pre-IPO round worth $354 million from a clutch of investors. Market volatility, low investor sentiments, and the funding winter are some of the popular reasons behind PharmEasy looking to raise funds at a lower valuation.
The primary round saw an infusion of the $354 million funding round was worth $204 million and led by Amansa Capital, Steadview Capital, OrbiMed, Abu Dhabi’s sovereign wealth fund ADQ, and more. In the second round of funding that PharmEasy received, the company mopped up around $150 mn from the partial exits of a bunch of existing angels and other early-stage investors like Fundamentum, Eight Roads Ventures, Bessemer Venture Partners, and others. PharmEasy, which is all set to file its Draft Red Herring Prospectus (DRHP) has also disclosed that over 20 senior employees, five founders, and some of the new investors had picked secondary shares at a valuation of $5.6 billion. The company was valued at $5.4 billion in February 2022. The company is yet to decide on its IPO round and will not be setting its pricing before the nod from SEBI.
Before this round where the company has further raised $354 million worth of funding in its Pre-IPO round of funding, split into 2 rounds, it raised a whopping $500 million round via its Series F funding round that was led by Arokiaswamy Velumani, valuing the company at $1.8 billion in June 2021.
Here are all the funding and investor details of PharmEasy to date.
Date
Series
Amount
Investors
April 29, 2024
Venture Round
$216 million
MEMG Family office, Existing Investors
Nov 7, 2022
Debt Financing
–
EvolutionX Debt Capital
November 1, 2021
Private Equity Fund
–
VestinWolf Capital Management
Oct 20, 2021
Venture Round
–
Trifecta Capital Advisors
October 18, 2021
Pre-IPO Round
$354 million
Amansa Capital, Fundamentum, Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ and more
July 7, 2021
Series F
$500 million
Arokiaswamy Velumani
June 17, 2021
Secondary Market
$20 million
B Capital
April 7, 2021
Series E
$390 million
Prosus Ventures, TPG Growth and others
November 27, 2019
Series D
$220 million
Temasek Holdings and others
September 26, 2018
Series C
$50 million
Eight Roads Ventures India and others
September 11, 2018
Debt Financing
$5.44 million
InnoVen Capital and more
February 28, 2018
Series C
$27.23 million
Eight Roads Ventures India, F-Prime Capital, and others
PharmEasy was reportedly valued at $5.4 billion in February 2022. Due to the exceptional growth that the company had seen, PharmEasy decided to reward the cofounders and employees by creating new employee stock options (ESOPs) for them.
The healthcare major had passed a special resolution, where it has declared that it would be allotting around 79,987 ESOPs to each of the five co-founders of the firm – Siddharth Shah, Dharmil Sheth, Hardik Dedhia, Karsh Parekh, and Dhaval Shah. The collective worth of all these shares making the Founders’ ESOP pool is estimated to be around INR 236 crores. PharmEasy has also additionally expanded its ESOP pool with INR 356 crore worth of new options for eligible employees. This new ESOP pool has reportedly been expanded with 603,103 equity shares. Moreover, PharmEasy has also amended its existing ESOP Scheme to align it with the SEBI regulations.
PharmEasy – Acquisitions
PharmEasy has acquired 3 companies –
Acquiree Name
Date
Deal Value
Aknamed
September 14, 2021
$144 million
Thyrocare Technologies
June 26, 2021
$605.70 million
Medlife
May 25, 2021
$250 million
Aknamed – A healthcare company that strives to streamline the supply chain of the industry in India. PharmEasy has acquired Aknamed on September 14, 2021. PharmEasy acquired the majority stakes of Aknamed for an initial investment of INR 308 crores ($41.90 mn). The company will be acquiring Aknamed completely in a few months in a deal size estimated to be around INR 1000 crores ($136.04 mn).
Thyrocare Technologies – Thyrocare is a full automatic diagnostic laboratory, which claims to be the first of its kind in India. PharmEasy acquired Thyrocare on June 26, 2021. In a definitive agreement where the company has acquired 66.1% stakes in Thyrocare, the deal size is mentioned at INR 4564 crores ($620 mn).
Medlife – Medlife is an online medicine supplier from Bangalore, India, which has facilities for home delivery. On September 22, 2020, the Competition Commission of India approved the merger of Medlife (Online Pharmacy) with PharmEasy. It is noted as the First Major Consolidation in this sector after the entry of Amazon and Reliance. According to this deal, PharmEasy’s Parent Entity will acquire 100% equity in Medlife and the promoters of Medlife will get a 19.95% stake in the entity. Though the talks of the acquisition began in August 2020, the CCI approval was received in September 2020, and it is not earlier than May 2021, 8 months after the CCI nod that PharmEasy finally announced the merger with its rival Medlife. From May 25, 2021, Medlife discontinued its operations and fully merged into the PharmEasy platform. The company acquired majority stakes in Medlife valued at $250 million.
PharmEasy – Challenges Faced
The company started its journey in the year 2014 and has now become a major player in the online pharmacy segment. However, PharmEasy didn’t witness overnight success. Challenges are inevitable and the mentioned e-pharmacy also had its share of problems. It was difficult for PharmEasy to deliver products without a prescription.
Knowing the medicines by their names wasn’t enough. A valid prescription was compulsory for supplying the products. Many didn’t want to upload their prescriptions fearing consequences. Furthermore, location tracking back then when the company started, was difficult for PharmEasy’s delivery agents. It is not like that anymore, though.
The company eventually overcame the challenges thrown at it and has grown tremendously since its inception in 2014.
PharmEasy Layoffs
PharmEasy laid off 40 employees, as per the reports on June 16, 2022. The company has laid off around 40 of the employees who were working with its subsidiary Docon Technologies during the week. These employees who were laid off mainly belonged to the sales department and hailed from Mumbai, Delhi, Chandigarh, Jaipur, and more. PharmEasy has offered a two-month salary for the employees as part of the severance package and is reportedly helping the employees too in getting new jobs. It was also announced that Docon Technologies would be rebranded to PharmEasy One and would then be a whole entity and that most of the Docon employees would be shifted to any of the API Holdings’ entities.
Customer acquisition of a company depends upon trust and faith. It’s a symbiotic relationship between how much the company is giving to its customers and how those users are benefitting in return.
Acquiring new users has not been problematic for PharmEasy ever since it overcame the initial hiccups and challenges. A solid user-retention rate has proved PharmEasy’s expertise in keeping customers satisfied.
PharmEasy – Partnerships
Swiggy
Swiggy plans to enter the online pharmacy market by delivering medicines in 10 minutes. Partnering with PharmEasy, it will leverage its infrastructure and regulatory framework via Instamart for rapid delivery of prescription and OTC drugs.
Besides, there are also other hospitals and chains like Apollo Pharmacy that are trying to boost overall sales via their online platform along with their brick-and-mortar stores. Most of the companies mentioned here are trying to reinforce their online delivery system of medicines. However, most of them are trailing PharmEasy.
PharmEasy – Growth and Revenue
PharmEasy Financials
PharmEasy Financials
FY22
FY23
FY24
Operating Revenue
INR 5,729 crore
INR 6,644 crore
INR 5,664 crore
Total Expenses
INR 8,491 crore
INR 8,974 crore
INR 7,254.8 crore
Profit/Loss
Loss of INR 2,731.7 crore
Loss of INR 5,211.7 crore
Loss of INR 2,533.5 crore
PharmEasy Financials
In 2023, PharmEasy had an operating revenue of INR 6,644 crore, and its total expenses were higher at INR 8,974 crore, leading to a loss of INR 5,211.7 crore. In 2024, their revenue decreased to INR 5,664 crore, and expenses also dropped to INR 7,254.8 crore, resulting in a smaller loss of INR 2,533.5 crore.
Dhaval Shah and Dharmil Sheth are playing a major role in this growth through excellent leadership and superior decision-making.
PharmEasy Financials
FY22
FY23
FY24
EBITDA Margin
-39.66%
-20.38%
-9.59%
Expense/Rupee of ops revenue
INR 1.48
INR 1.35
INR 1.28
ROCE
-32.11%
-27.12%
-15.71%
India’s IPO market slowed in 2022 after 2021 saw the largest amount of funds raised in at least a decade. API Holdings Ltd., owner of India’s largest online pharmacy PharmEasy, withdrew its preliminary filing for an initial public offering, citing market conditions and strategic considerations. PharmEasy had filed its DRHP with the market regulator SEBI and was planning to raise INR 6,250 crore through a fresh issue of shares on November 10, 2021. The existing investors of the company were not selling any shares in the upcoming IPO, as per the DRHP.
Furthermore, PharmEasy had announced that it would be looking for a pre-IPO fundraising of up to INR 1,250 crore via private placement after consulting with the BRLMs (Book Running Lead Manager). However, according to the latest news, PharmEasy was looking to slash its IPO valuation considering the volatility of the current market, as of February 19, 2022. PharmEasy currently partners with over 60K brick-and-mortar pharmacies from across the country and has served 20 mn+ patients since it was formed.
Finally, there is no shortcut to success and PharmEasy is a case in point. From being an unknown candidate in the online pharmacy space to becoming an established brand, Dharmil Sheth-founded PharmEasy has conquered varying obstacles to reach the zenith of success.
PharmEasy plans to launch an IPO in the future if its performance remains strong. The company is working to reduce its debt before going public. It is waiting for approval from the Competition Commission of India (CCI) to move ahead with its plans.
FAQs
Who is PharmEasy owner?
API Holdings Private Limited is the Parent Organisation of PharmEasy. Dhaval Shah and Dharmil Sheth are the Founders of PharmEasy.
How much is PharmEasy Revenue and Profit?
In 2023, PharmEasy had an operating revenue of INR 6,644 crore, and its total expenses were higher at INR 8,974 crore, leading to a loss of INR 5,211.7 crore. In 2024, their revenue decreased to INR 5,664 crore, and expenses also dropped to INR 7,254.8 crore, resulting in a smaller loss of INR 2,533.5 crore.
How PharmEasy work?
Customers can upload a prescription on PharmEasy, which is then sent to a drugstore in your vicinity. The package is then delivered to their doorsteps within the stipulated time.
How much is PharmEasy net worth?
API Holdings, the parent company of PharmEasy, had its valuation reduced to $458 million in September 2024.
Is the Pharmeasy office in Bangalore its headquarters?
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
We all love watching and playing cricket right? “Cricket is my favorite sport” yelled a guy from that corner. Of course yes, it’s almost the entire Indian’s favorite sport! Imagine when the IPL‘s last over is on and there’s a power cut. Can you imagine how annoying, it’s for you, me, or any cricket lover?
Anyway, no worries about that anymore. Cricbuzz is an Indian cricket news platform. It will provide you with all the desired news you want, in case of a power cut or you might be out of the station without a television.
Learn more about Cricbuzz, its founders, business and revenue model, startup story, growth, revenue, challenges, and more.
How Cricbuzz became the Biggest Cricketing News Sensation
Cricbuzz – Company Highlights
Company Name
Cricbuzz
Headquarters
Bengaluru, Karnataka, India
Founders
Pankaj Chhaparwal, Piyush Agarwal, and Pravin Hegde
Cricbuzz is an Indian cricket news website owned by Times Internet. It features articles, news, and live coverage of cricket matches. This includes scorecards, videos, text commentary, team rankings, and player stats. This website also provides a mobile app. Cricbuzz is one of the most popular mobile apps for cricket news and scores in India.
Cricbuzz Logo
Cricbuzz – Founders And Team
Pankaj Chhaparwal, Piyush Agarwal, and Pravin Hegde are the founders of Cricbuzz.
Pankaj Chhaparwal | Founder and CEO, Cricbuzz
Pankaj Chhaparwal is the founder and CEO of Cricbuzz. He has beenworking here from the beginning itself. He pursued his education at L D College of Engineering, Gujarat University.
STAR has taken Piyush Agarwal. He pursued his education at the Indian Institute of Technology, Banaras Hindu University.
Pravin Hegde is the co-founder and CTO at Cricbuzz.
Sarah Waris is a Freelance Contributor at Cricbuzz. She joined the company in March 2019.
Abhideep Das is the Content Strategist and the Senior Producer at Cricbuzz. Before he was the Creative Producer of Digital Content for Kolkata Knight Riders. He was also an Editorial Consultant at Bayside Media Private Limited.
Cricbuzz – Owner
Times Internet is the owner of Cricbuzz. Times Internet is India’s largest digital products company. Its subsidiaries include Economic Times, Bangalore Mirror, Gaana, MX Player, MensXP, Times of India, Cricbuzz, IndiaTimes, CricPlay, Databack, Dineout, ETMoney, and more.
Times Internet – Cricbuzz Owner
Cricbuzz – Startup Story And History
Three former Infosys employees started Cricbuzz. In November 2014, Times Internet, part of the Times of India group, bought a big share in Cricbuzz.
In January 2015, Times Internet merged its cricket platform, GoCricket, with Cricbuzz. GoCricket’s website started redirecting users to Cricbuzz, and the GoCricket mobile app was also combined with Cricbuzz.
Later, in August 2015, Cricbuzz sponsored the India-Sri Lanka test series.
Cricbuzz’s business model is mainly concerned with giving updated scores of the matches. It sells to OnMobile which has got a relationship with different mobile operators. Under this, users get the latest live score updates for a charge. This is the primary source of their income. Other than this source, the company runs various advertisements on its platform, which is also a source of revenue generation for the company. The company is in a partnership with InMobi to monetize mobile advertisements.
Cricbuzz makes money mainly through advertising and sponsorships:
Advertising: Cricbuzz earns a lot from display and video ads on its platform. Cricbuzz grabs a huge amount via Adsense and Admob on its site and app. The strategic placement of advertisements in a user-friendly manner near the content helps Cricbuzz Monetize.
Sponsorships: Big brands like Google, ESPN, Star Sports, BCCI, and ICC partner with Cricbuzz. These deals bring in more money, boost trust, and help Cricbuzz create more content.
High-Traffic Platform: Cricbuzz has many cricket fans visiting its platform, making it a great choice for advertisers.
Cricbuzz’s revenue modelmainly revolves around Advertisements something ubiquitous from which the companies usually earn. It also earns through the display of the Cricbuzz scores on Hike Messenger. Cricbuzz creates value for users, which also promotes itself to customers.
It also earns money by sharing live cricket scores with telecom operators. These operators send score updates as messages to their users. Google AdSense also plays a big role in helping Cricbuzz make money.
Cricbuzz Financials
Metrics
FY 2019-20
FY 2018-19
FY 2017-18
FY 2016-17
FY 2015-16
Revenue
INR 156.6 crore
INR 133 crore
INR 97.3 crore
INR 70.5 crore
INR 66.4 crore
EBITDA
INR 70.6 crore
INR 69.6 crore
INR 41.4 crore
INR 15.4 crore
INR 18.7 crore
Net Profit
INR 49.9 crore
INR 48.6 crore
INR 25.8 crore
INR 11 crore
INR 11.6 crore
Cricbuzz Financials
Cricbuzz’s revenue grew steadily from INR 66.4 crore in FY 2015-16 to INR 156.6 crore in FY 2019-20. Its EBITDA also rose from INR 18.7 crore to INR 70.6 crore during the same period. Net profit increased from INR 11.6 crore in FY 2015-16 to INR 49.9 crore in FY 2019-20, showing strong financial growth over the years.
Cricbuzz – Achievements
With 496.25M organic traffic, Cricbuzz was ranked 26th worldwide by RankRanger for The Top Websites by Organic Rank.
In October 2019, the company was ranked 406 globally.
It was ranked 40 in India by Alexa Internet.
The site was the 7th most searched site in India for the year 2014.
The mobile app has over 100 million downloads and more for October 2019.
The website is used by more than 50 million users all over the world. It generated 2.6 billion page views in January 2015. Unbelievable!
The top competitors of the company are the International Cricket Council, ESPNcricinfo, Cricket Exchange, and Onecricket.
The International Cricket Council is the world governing body of cricket.
ESPNcricinfo is a sports news website only for the game of cricket.
Cricket Exchange provides its users with the fastest Live scores. With accurate Odds and sessions and everything. It keeps the users in touch with cricket.
Onecricket is something more than fantasy sports. It’s the best platform to follow cricket games, compete with your friends, and showcase your cricket knowledge.
Cricbuzz – Growth
During the 2015 World Cup. Cricbuzz was the most used cricket score website for cricketing news and updates. The company also received a massive number of visitors during the World Cup at a time. It was the most desired destination of all cricket lovers on mobile with over 1 billion visits during the World Cup alone.
Cricbuzz – Creative Marketing Strategy and Active Social Media Presence
To increase its popularity out of the circle of cricket fans, Cricbuzz started a social media campaign “Strategic Timeout”. Strategic Timeout is called out by IPL teams during mid-game to reformulate the strategy. The content was based on how social media influencers used the lockdown period strategically. This content leads the influencer followers to the Cricbuzz app and social media pages.
Social Media Campaigns by Cricbuzz
Cricbuzz has very active and interactive social media pages. It keeps posting new challenges and campaigns along with cricket world updates and talks. Some of the challenges are “Guess the champion”, “Strategic Timeout”, “Mask India” and “AbCricketBuzzega”. To hype up the upcoming season of IPL 2020 Cricbuzz recorded a rap “AbCricketBuzzega”.
There was a possibility. There is a possibility. And there will always be a possibility to pump up money through cricket. Pitches are always the priority in this aspect. Now we see advanced synthetic pitches. These are used for shorter formats. A tinge of grass and sponge pitch is required for bowlers. This kind of thing will make the sport more interesting than before. Of course, it needs deep and strategic planning. Games are suspended due to rain. Soon, there will be closed-roof stadiums to avoid the most annoying part of live cricket.
Cricbuzz is a popular website and mobile application that provides up-to-date news, scores, and statistics for cricket matches around the world. It is a reliable source of information for cricket fans and offers a wide range of features such as live scores, commentary, and player profiles. It is considered one of the most popular cricket websites which provides all the information related to cricket.
FAQs
Who are the Cricbuzz founders?
Pankaj Chhaparwal, Piyush Agarwal, and Pravin Hedge are the founders of Cricbuzz.
How does Cricbuzz make money?
Cricbuzz grabs a huge amount via Adsense and Admob on its site and app. The strategic placement of advertisements in a user-friendly manner near the content helps Cricbuzz Monetize.
Who owns Cricbuzz?
Pankaj Chhaparwal, Piyush Agarwal, and Pravin Hegde are the founders of Cricbuzz. Times Internet is the Parent Organisation/Owner of Cricbuzz.
Who are the Top Competitors of Cricbuzz?
The top competitors of Cricbuzz are the International Cricket Council, ESPNcricinfo, Cricket Exchange, and Onecricket.
How much is Cricbuzz’s Revenue?
Cricbuzz’s Revenue is nearly $22 million as of 2020.
How does Cricbuzz website work?
The Cricbuzz website features articles, news, and live coverage of cricket matches. This includes scorecards, videos, text commentary, team rankings, and player seats.
Rishabh Rathi
