Paytm is India’s largest platform for mobile payments and commerce. The word is an abbreviation for “pay through mobile “. This digital payment system and fintech company have its base in Noida. It was founded in 2010 by Vijay Shekhar Sharma in Noida with an initial investment of $2 million.
Beginning as a prepaid mobile recharge platform it later expanded to be a single destination for all kinds of bill payments and much more by 2013. Today the platform operates in more than 11 Indian languages and is accepted across almost every grocery store, restaurant, pharmacy and whatnot. In 2020 the revenue of the company was increased by 10% to reach Rs.3629 crore.
This article will explore the business model of Paytm to understand how Paytm earns money.
The business model of Paytm is worth looking at due to its multipronged approach to ensure a seamless experience for both the company as well as the customers. Let’s look at the various components of the business model canvas of Paytm to further understand its details for generating revenue and constantly being at the forefront of innovation and providing the best possible online services to its clients.
Key partners of Paytm
With the kind of services that Paytm offers, it had partnered with a huge number of insurance companies, hotels, shopping centres, pharmacies, hospitals and every other institution where transactions through Paytm is accepted now.
This collaboration with a plethora of organisations to gather bills and payments for various services enabled Paytm to expand its partnership over time. It has also partnered with banks to provide escrow services.
Key Activities of Paytm
The major activity carried out by Paytm is to facilitate the transfer of funds from one place to another. They also ensured that the best possible security is provided for the millions of transactions that are taking place through their platform.
Another important activity of Paytm includes preventing scams and other cyber frauds in its platform. Apart from that they also strive to make Paytm a single stop for all kinds of payments that an Indian household should take care of.
Value Propositions of Paytm
The prepositions that augment value for Paytm begins with recharging business. Initially providing prepaid recharging services it later expanded to postpaid services as well. It further expanded to creating a Paytm wallet which served as a parallel bank account for the clients.
From there Paytm has devolved into curating the idea of digital gold where customers can store gold digitally and later use them to complete transactions or even exchange it for actual gold of the same value.
Paytm has also set up various e-commerce verticals wherein it serves as an important component in the completion of transactions.
Key Resources of Paytm
There is absolutely no doubt that a company cannot survive without having an inexhaustible resource domain. As far as Paytm is concerned its biggest resource is its partners. As the company started to grow it received support and funds from many resourceful entities like the Alibaba group and Soft Bank vision fund.
One cannot overlook the amount of support that these resources give to their company. Another key resource that drives Paytm is its RBI license that lets Paytm legally operate the system of Paytm wallets.
It has revolutionised the idea of digital currency, especially during the time of demonetisation. Its first-mover advantage in the technology platform is yet another key resource of the organisation.
Cost Structure of Paytm
Being a service-driven technological platform, most of the expenses that Paytm has to bear is related to its own platform and customer acquisition. Apart from that a large part of its budget also goes into improving the security of the platform and preventive measures to avoid any kind of fraudulent activities. It also invests in systems to avoid the risk of money laundering.
Customer Relationship of Paytm
Handling over 65 million customers is not an easy job. To cater to the concerns and complaints of its clients Paytm has a customer support service that is functional 24×7. The customer can make use of phone calls or chat services to voice their concerns and get them rectified.
In many cases, it also has clear-cut directions to navigate the customer to whatever service they need on their own. These are accessible directly from the website or the app in itself.
Customer Segments of Paytm
The wide variety of services offered by Paytm is reflected in its multilayered customer segments as well. The most important customer segment of Paytm is the users of its e-wallet. This is mainly because of the fact that the wallet is like a flagship service of the organisation.
Another segment is that of the users of the app which constitutes the middle class of the country. Paytm is also seeing a growing segment of customers in the older age group as well.
Channels of Paytm
Considering the big name that Paytm is in India, there is no doubt that the primary channel of distribution of the company is its website and app in itself. Apart from that Paytm also ties up with the sites of their clients, e-commerce platforms, vendors sites et cetera to promote the platform. Paytm also ensures that they attract customers through advertisements and constant follow-ups.
Main Products and Services of Paytm
Paytm makes money through various businesses like Paytm mall, recharge services, ticket booking, bill payment etc. By facilitating a gateway solution to every transaction, Paytm ensures a steady flow of money.
The launch of Paytm wallet in 2014 was revolutionary as far as the company was concerned. Since then it has evolved as a parallel bank account as far as the users are concerned. They have also released a digital gold service wherein it allows users to buy gold digitally.
In future, they are also planning to collaborate with various developers so that the customers can convert their digitally purchased gold into finished commodities.
The major revenue segment of Paytm is through commissions that it derives from customer transactions that take place on its platforms. As mentioned earlier they have collaborated with banks to create escrow accounts facilitated by Paytm wallets. The company generates revenue from these escrow accounts as well. With every transaction, both Paytm and the partner bank receives a predetermined interest that was mutually agreed upon between them.
Revenue of Paytm
The following are the various businesses through which Paytm earns money
MarketPlace (Paytm Mall)
Paytm Wallet
Recharge Services
Bill Payments & Ticket Bookings
Digital Gold
Coupon Codes/Voucher cards
Payment Gateway Solutions
Paytm Payments Bank
FAQs
How does paytm makes money?
The major source of revenue for Paytm is commissions, it charges merchants a small fee which is mutually agreed upon. It also takes commissions from the users.
Who is the founder of Paytm?
Paytm was founded by Vijay Shekar Sharma in 2010.
What is the revenue of Paytm?
The revenue of Paytm is around 3,187.6 crores INR as of 2021.
Red Bull is an energy drink manufactured by the Austrian firm Red Bull GmbH, founded in 1987. It sells its famous energy drink all around the world. It sold 7.5 billion cans of energy drinks in 2019.
To put this into perspective, that’s nearly a can for every person on the planet. Taurine, B-complex vitamins, caffeine, and carbs are all found in this non-alcoholic beverage.
From the start, the drink’s popularity expanded swiftly. Red Bull has the world’s largest market share of any energy drink at 40%. Red Bull owns automobiles, jets, and sports teams, but not production facilities. Let’s look at its business model and how it makes money.
Dietrich Mateschitz, an Austrian entrepreneur, was influenced by the Krating Daeng energy drink, first launched and sold in Thailand by Chaleo Yoovidhya. He took this concept, tweaked the ingredients to appeal to Western palates, and co-founded Red Bull GmbH in Chakkapong, Thailand, with Chaleo in 1987.
Dietrich Mateschitz
Red Bull’s vision is to uphold Red Bull standards while preserving the category’s leadership position by providing exceptional customer service in a highly efficient and productive manner. According to Red Bull, the human body requires more taurine than it generates naturally during physical effort, necessitating the consumption of its beverage.
Business Model of Red Bull
Experience Selling
The corporation may charge outstanding rates for its products because of its associations with extreme sports and the unique Red Bull logo. Customers, primarily young males, are more interested in the overall “experience” connected with the Red Bull lifestyle than in the product or its practical usefulness.
Reverse Innovation
Krating Daeng is a non-carbonated, sweetened energy drink in Thailand in the 1970s. It was first introduced in Thailand as a source of refreshment for Thai labourers in the countryside.
Krating Daeng
Dietrich Mateschitz, an Austrian entrepreneur, found Krating Daeng while working in Thailand. He then launched Red Bull in the Western market with a new formula and branding strategy.
Sponsorship
A company associating its brand with a logo seeks a wide range of economic, public relations, and product placement advantages in a sport’s extremely competitive sponsorship environment. Support is not expected to be humanitarian; instead, it is a commercial partnership that benefits both parties.
By exploiting their link with an athlete, team, competition, or the sport itself, sponsors also strive to generate the public’s trust, acceptance, or harmony with the media perception a sport has established or obtained. In addition to sponsorship, Red Bull owns Flugtag (an acrobatic flight competition), the Red Bull Air Races, and teams in various sports, including F1, NASCAR, soccer, and ice hockey.
Red Bull Sponsorship on Sports
Sustainability
Environmental impact assessments are conducted by companies that produce fast-moving consumer goods and services and are devoted to sustainability. Green strategists and workers in charge of brand definition interact with product and service designers, environmental groups, and government agencies.
Red Bull Sustainability
Brand Culture
The ultimate aim of the advertising industry is to build a unique and long-lasting cultural brand. A fuzzy blend of time, attitude, and emotion is used to recognise and duplicate an ideology. It demands workers to engage brand values to solve problems, make internal decisions, and provide branded services to customers.
Branding of Ingredients
It’s the method of constructing a brand for a specific product or component to represent the ingredient’s exceptional quality and performance. Ingredient branding is the process of elevating an element or ingredient of an item or brand to the significance and giving each one an identity.
Value Creation
Red Bull is a caffeine-containing drink perceived as exciting, athletic, and edgy by its customers. Red Bull made a whopping €5.110 billion in sales in 2014 after selling 5.612 billion cans of energy drinks and dividing the earnings with its Thai licensee. Red Bull sold 7.5 billion cans of energy drinks in 2019. Individual pro-athletes, soccer and Formula One teams, headline events, and a whole media production division are all sponsored by Red Bull.
It’s all about the economics of selling caffeine, the profit margins, Red Bull’s intelligent outsourcing approach, Red Bull’s brilliant value creation plan, utilising brand clout among young people, and actively designing their original content.
Red Bull’s brand name and image, together with other promotion methods, has paid them well to become the giant they are now, as seen by sales and the acquisition of a massive market. The Red Bull Energy Company makes money by selling its signature drink, Red Bull. It is a product that meets the needs of its customers.
They also profit from the extensive promotion and marketing of the Red Bull energy drink, which promotes sales. Consider this: a company that sells approximately 7.5 billion cans annually generates roughly $6 billion in sales. Customers react in this way to their products.
According to a filing with the Austrian company register, Red Bull’s income has increased 10% to $971 million last year as revenue increased 8.6% and dividends from subsidiaries increased. The energy drink behemoth owns six soccer teams, two racing teams, and a tens of thousands-strong athlete clubs.
It is apparent that Red Bull is involved in more than just selling energy beverages, and the Red Bull energy drink company makes money through sales and marketing.
What makes Red Bull Unique?
Red Bull is an energy drink with a “cool” image among youth due to its link with extreme sports. Windsurfing, cliff diving, rock climbing, Formula One, and even its Air Racing series have benefited from the brand’s prominence in extreme sports.
In addition, young people are seen doing things that aren’t generally covered by sports programmes. Because those individuals, the extreme athletes, are not well-known, the typical person can relate to them more than a prominent athlete.
It taps into a vast market—both for nostalgic reasons for the elderly and the market that Red Bull is aiming for: the 18 to the 34-year-old crowd—by talking and acting youthfully.
Important Statistics of Red Bull
Red Bull spent $50 million to make Felix Baumgartner’s space jump a reality — what’s the value of worldwide coverage? 6 billion dollars.
The cost of producing a single can is about USD 0.09. In Western countries, the average wholesale price of a single can is US$1.87. In Western countries, the recommended retail price for a single can is US$3.59.
In 2019, 7.5 billion cans were sold, generating $6 billion in income, a third of which was reinvested in marketing.
With 7.9 billion cans sold in the year 2020, it is the world’s most popular energy drink.
In 2006, the Red Bull New York soccer team was purchased for an estimated US$25 million — what is the current market value? US$290 million.
Competitors of Red Bull
Reb Bull faces competition from different global brands such as PepsiCo, Dr Pepper, Gatorade, Coca Cola, Nestle, Tropicana, Schweppes, Danone, and others. Even with such severe competition, Red Bull emerges as the winner. To elicit a charge out of this bull, one doesn’t need to swirl a red cape out front.
Red Bull’s heavy emphasis on brand image rather than the new product aligns with its consumer-based business model. The cash and labour of Red Bull are invested in building and maintaining the Red Bull brand’s powerful image. The logo of Red Bull is frequently seen on the parachutes of base jumpers and wing-suiters. Red Bull often distributes energy drinks at events it hosts or sponsors.
With Red Bull’s recent decision to support Olympic competitors like Lindsey Vonn, the company’s name has become synonymous with triumph and achievement. Red Bull doesn’t invest any money to get on the back cover of the Illustrated. Instead, it looks and invests its sponsor money to get on the front cover, enhancing its brand growth and worth.
Red Bull has maintained its market leadership due to its strong alignment between sponsoring extreme athletic events and selling an edgy product.
FAQ
What is the business model of Red Bull?
Red Bull makes money by selling its signature energy drink.
What makes Red Bull unique?
Red Bull’s association with extreme sports like Windsurfing, cliff diving, rock climbing, Formula One makes it an exciting brand in consumers eyes.
Who are the competitors of Red Bull?
PepsiCo, Dr Pepper, Gatorade, Coca Cola, Nestle, Tropicana, Schweppes, and Danone are some of the top competitors of Red Bull.
When it comes to automotive manufacturing, Maruti Suzuki India Limited has caught all the fame. Although today, the automobile industry has developed immensely. But the charm and popularity of Maruti Suzuki haven’t failed!
The company is a subsidiary of Japan’s Suzuki Motor Corporation. In India, Maruti Suzuki is considered the largest manufacturer of passenger cars. In fact, it’s Maruti Suzuki who is credited for the revolution of the ushered automobile industry in the country.
Maruti Suzuki begins its journey with the legendary Maruti 800 and today, the company has come up with around 16 car models along with more than 15 variants. Maruti Suzuki manufactures a broad range of passengers as well as luxurious cars like Alto 800 to Ciaz.
Maruti Suzuki offers the facility of car financing and pre-owned sales of the car fleet management. Its factories are established in Gurgaon and Manesar, Haryana, and the art R&D center in Rohtak. Maruti Suzuki is very promising and remarkable with its products and services. In this article, we will be discussing the business model and strategies of Maruti Suzuki. Let’s begin!
Why Maruti suzuki cars are so popular? | Maruti Suzuki Business Strategy
About Maruti Suzuki
Maruti Suzuki was formerly known as the Maruti Udyog Limited, India, and functioned through a joint endeavor between the government of India and Japan’s Suzuki Motor Corporation, signed in 1981.
Maruti Suzuki is widely famous as the largest company in the automobile industry. The company is headquartered in New Delhi and was founded in 1981 by the government of India.
Later in 2003, the automobile manufacturer- Maruti Suzuki was sold to the Suzuki Motor Corporation and functioned as its subsidiary. The Suzuki Motor Corporation owns the capital of 56.2% in the Maruti Suzuki company. Alongside, the company has a market share worth 53% in the market of the Indian passenger car.
The company launched its first product– Maruti 800 and resulted in 13 months of record production. The chairman of this prominent automobile manufacturing company is R.C. Bhargava and Kenichi Ayukawa is the managing director and CEO.
Where does Maruti Suzuki operate?
Maruti Suzuki India Limited is the most prominent automobile manufacturer across India. The company is a subsidiary of Japan’s Suzuki Motor Corporation. The automobiles manufactured by Maruti Suzuki are used by almost every third individual in India.
Key Products of Maruti Suzuki
Maruti Suzuki offers a great range of cars such as the Maruti 800, the first-ever Maruti car; Alto 800, Alto K10 as the entry-level cars while Swift, Wagon R, Ritz as the stylish hatchback.
Maruti Suzuki India Limited puts its entire focus towards the young aged people. Its target audience is generally around 30 to 35 years old. Half of the Nexa customers belong to the age group of 30 years.
The business model of Maruti Suzuki Limited India is based on its wide range of cars and customer services. The automotive company has recently shifted to the digital platform due to the marketing crisis that occurred from the covid-19 pandemic.
To keep up with its competitors, Maruti Suzuki opted for the digital world for better content marketing and more customer engagement. The digital platforms have become a very crucial part of Maruti Suzuki’s Business Model. Around one-fourth of its total marketing budget went off to the delicacy of digital media.
Maruti Suzuki manufactures its automobiles based on the requirements and facilities of the middle class as well as the upper-class section. That’s why the company produces a broad range of its products at affordable rates and features.
Maruti Suzuki follows a certain model to cope with the difference between online marketing and the dealership experiences of the customers. The company has brought around 900 dealerships to the online platforms through India’s largest Dealer Digitization Program by the company. With the developing digital technologies, Maruti Suzuki has been earning a great sum of deals and customer support.
Maruti Suzuki is considered India’s largest automobile manufacturer with around 50% of the total market share. The company earns way more profit when compared to Korea’s Hyundai, its biggest market rival. The automobile manufacturers do not provide a clear figure of the company’s profit on each deal but they do declare the net profit earned by the company.
According to the calculated data, Maruti Suzuki has sold more than 7.5 million automobiles in India, to date. And around 500,000 units have been sent mostly to European countries. The company’s profit includes the money generated through the sales of spare parts of the automobile. However, the profit differs based on the car’s size, features, and model. The larger cars are expected to bring more profit to the company’s account.
From the latest calculated data, Maruti Suzuki has its revenue worth Rs. 16,997.9 crore along with a profit of Rs. 1,391 crores.
Conclusion
Maruti Suzuki is one of the most prominent automobile manufacturers across India. The company has had an incredible journey since 1983 when it launched its first car- Maruti 800. The company offers a great range of cars with amazing features.
Maruti Suzuki follows a very strong and remarkable business model and now, with digital media, Maruti Suzuki is growing even more. The company has a long run ahead. Stay tuned for more updates!
FAQs
What is the revenue of Maruti Suzuki?
The revenue of Maruti Suzuki is 78,994 crores INR in 2020.
Who is the CEO of Maruti Suzuki?
The CEO of Maruti Suzuki is Kenichi Ayukawa.
When was Maruti started?
Maruti was founded by the Government of India in 1982.
What are the most sold models of Maruti Suzuki?
Most sold car models of Maruti Suzuki are:
Maruti Suzuki Alto 800
Maruti Suzuki WagonR
Maruti Suzuki Baleno
Maruti Suzuki Celerio
Maruti Suzuki Swift Dzire
Maruti Suzuki Ignis
What is Nexa?
NEXA is Maruti Suzuki’s premium sales channel for Maruti Suzuki premium & luxury Sedan and Hatchback cars in India.
While shopping for a child, one needs to be much more careful than shopping for an adult. The products have to be good and hygienic enough to be used by a kid after all every parent desires to provide their kids with the best things in the world. Extra precautions are taken whenever there is a child involved, the same goes with shopping, doesn’t matter, if you are doing it offline or online.
The E-commerce business in India has been thriving for over a decade. Now a day’s most of the shopping is done online, especially after the pandemic, people started indulging themselves in doing most of their business online.
Amongst hundreds of online shopping sites, Flipkart, Amazon, Myntra are some that are well known in this industry. Apart from all these, we also have different E-commerce sites that specially deal with the products of babies, kids, and mothers. One will find anything that a child and their parents can need in for them in here.
One of them is FirstCry, this offline and online store is said to be the largest store in Asia containing newborn babies and kids products. In this article, we will talk about the brand FirstCry and everything about it. So, let’s dive in.
“Ecommerce isn’t the cherry on the cake, it’s the new cake” – Jean Paul Ago
FirstCry was founded in the year 2010, on the month of September by Amitava Saha, Sanket Hattimattur, Prashant Jadav, and Supam Maheshwari. The main goal of the startup was to provide the best brands of baby care products to babies and their parents.
Any and every type of kids’ products can be found here, diapering, nursery products, apparel, toys, skincare, healthcare, and so many other things. Over 200k products can be found in FirstCry both from Indian and International brands.
FirstCry started its journey at a time when baby care products were not available to buy online. At that time, there was a big need for an online platform that will provide products for kids, so the founders sees an opportunity in this and launched FirstCry, the first online platform that is solely dedicated to kids.
Two subsidiaries Babyhug and Cutewalk are under FirstCry as well, a clothing label and a footwear label respectively. The headquarters of FirstCry is located in Pune, Maharashtra, India, and the company has more than 380 stores all over India. In 2019, FirstCry launched its first official outlet in Srinagar. It has more than 150 franchises in over 100 cities in India now.
As mentioned before any and every kind of babies and kids products are available in FirstCry. Some of them are:
Food Products by Firstcry
Chocolates
Candies
Sweets
Breakfast and Cereals
Snacks
Jams, Spreads, and Ketchup
Milk powder containers
Diapering and Baby Care Products by Firstcry
Diapers
Baby Wipes
Diaper Bags
Diaper Changing Maps
Bed Protectors
Potty Chairs and Seats
Baby lotion
Baby Shampoo
Apart from all these clothes, fashion accessories, footwear and toys are also available here.
Business Model and Revenue Model of FirstCry
FirstCry followed the Online-to-offline (O2O) business strategy which means it opened physical stores to attract its online customers to shop from their offline outlet as well.
FirstCry took an initiative and tied up with different hospitals all across the country; where whenever a baby gets delivered the parents receive ‘FirstCry Box’ as a way of saying Congratulations. Through this initiative, FirstCry was able to promote the brand in front of millions of new parents. The conversion rate was extremely high through this.
Supam Maheswari with Firstcry Gift Box
After adopting the hybrid business model, it is focusing on expanding the offline stores. They are also making money through products from BabyHug and Cutewalk.
Currently, the revenue of FirstCry is INR 897 Crores, and with its value of $1.9 Billion, it has added its name to the list of Unicorns in India. As of 2021 FirstCry has over 2000 employees working for it.
Goals, Challenges, Solution, and Competitors of Firstcry
The growth of a company is necessary and it can only be done when they fulfil all their goals and overcome all the challenges.
Goals of FirstCry
There are some aims that are the prime focus of FirstCry and they are:
The first goal is to increase the number of orders placed for the products.
Pursue the customers so that they can repeat their purchases.
To increase the average order value.
To increase customer engagement.
Challenges of FirstCry
The unorganized market is quite a problem.
Understanding the wants and behaviour of the parents is a hurdle here.
Solutions
To solve the challenges they have taken some steps and they are:
To understand the behaviours of the parents, a feature called Funnel analysis is being used.
Based on the purchase history and the behaviour of the users, products are recommended to them.
FirstCry learned the necessary techniques including user engagement pretty well, which lead to fulfilling their goals of repeated purchase and the increase in average order value. FirstCry now has experienced 10 million downloads on the Google Play store.
Being an E-commerce site specializing in baby products is actually a huge responsibility, especially when you are the first one to do that in the country. FirstCry does whatever they can to keep up with the name of being Asia’s biggest store that provides every kind of baby care product.
FAQ
Who is the owner of FirstCry?
FirstCry was founded by Supam Maheshwari and Amitava Saha.
Is FirstCry an Indian company?
FirstCry is an Indian online store for baby products. It was launched in the year 2010.
BharatPe became very popular after its launch in 2018 among businessmen as it solved a unique problem. BharatPe’s boost generally happened during the pandemic when no payment app was charging transaction fees below 1.5%. This was the time when BharatPe cashed in on the opportunity. They made transactions absolutely free.
This is why a lot of business owners who had to do large transactions daily, shifted to BharatPe. Today, it has more than 7.5 million active users in its app. Apart from providing free transactions, it also has solved a number of other problems. There is also a lot more to see about the business model which has grown to such an extent in such a small time. So, without any further ado, let us talk about the BharatPe business model.
BharatPe is a fintech company headquartered in Bangalore. This payment aggregator has enabled transactions without any kind of fees. It has leveraged UPI to enable this. It is a QR-based payment aggregator by which you can do any kind of transaction using the app.
BharatPe was founded by Ashneer Grover, Bhavik Koladiya, and Shashvat Nakrani. All of these founders have a great profile. Ashneer Grover and Shashvat Nakrani are alumni of IIT Delhi. Ashneer Grover is a resident of South Delhi and has also graduated from IIT Delhi. He has been working with startups for a pretty long time. Previously he was also the CFO of Grofers, the grocery e-commerce giant. Ashneer has also led the Corp Dev for Amex India.
Bhavik Koladiya has decent knowledge and experience about Fintech in general. He is heading the product and technology of the company.
Shashvat Nakrani is originally from Bhavnagar and is a student of IIT Delhi of 2015-2019. He has done his B-Tech in Textile engineering.
Business Model of BharatPe
BharatPe has a very unique business model and because of this, it has grown exponentially. The major growth of BharatPe happened during the pandemic. In this time, they devised a smart method to expand. They leveraged UPI to enable absolutely free transactions. BharatPe was providing this when its competitors were charging fees less than 1.5 %. This is why a lot of vendors started moving to BharatPe.
Making transactions free encouraged more people to use the platform. It also kind of did indirect marketing of BharatPe. When the vendors came on this platform, they started exploring the platform in a great way. The platform has been designed as a one-stop solution for all kinds of payments. They have devised various kinds of products to cater to the people.
The company has launched the Xtraincome card which is an easy transaction solution, very helpful for business owners. It also gives you a cashback of 1% whenever you do a transaction with it.
BharatPe XtraIncome Card
These applications are actually solving the main pain points of the businessman. Apart from this, they have also introduced BharatSwipe which is an innovative card swapping system. Another product is called BharatPe digital gold.
BharatPe earns its revenue by providing macro to microloans to its business owner. A working professional or businessmen get loans very easily but small business owners face problems while applying for the loan as their CIBIL score is low.
BharatPe tracks the person’s transaction using its various products like Xtremecards and evaluates their capability to return the loan. According to it, they provide microloans to small businessmen without much paperwork. They do not provide loans using the CIBIL score. This solution accurately serves the pain points of small businesses. This is the main source of revenue for the app.
BharatPe Funding
BharatPe has raised a total of $700 million. They have presently gone through 12 rounds of funding. Apart from that, the company has raised a debt of 100 crores. They have secured funding of $370 million from Tiger Global Management. Apart from that they also have acquired funding from Dragoneer group, Ribbit Capital, Coatue Management.
What is Unique about BharatPe
Recently BharatPe has upgraded itself by collaborating with NBFC which are allowed to launch a 12% club by the RBI. This will give them a lot of benefits as compared to its competitor’s who are having the same product. This is because now any customer can go ahead and invest and can get upto 12% interest. They can borrow upto 10 lakhs.
Growth of BharatPe
Since its inception in 2018, this company has shown rapid growth. Today BharatPe ranks 4th after Paytm, Google Pay, and PhonePe in terms of users. Apart from that, it was quick in releasing products which actually solved the problem of merchants and the public at large. Services like 0% fees on any transaction. Products like BharatSwipe and Xtraincome card are unique innovations to solve customer problems. They have also come up with innovative gold loans schemes.
BharatPe has an impressive business model. The whole business is working around solving various pain points of small businesses. Their products are reliable which has led to their word-of-mouth marketing initially. Today they have more than a million merchants using their platforms. BharatPe’s business model is a unique model and an entrepreneur can learn a lot from them.
FAQs
What does BharatPe do?
BharatPe is designed as a fintech company to empower small merchants and kirana shop owners. The company brings QR codes for UPI payments, Bharat Swipe, and an array of fintech products, including small business financing and more.
How many people use BharatPe?
BharatPe serves 7.5 million+ merchants in more than 140 cities of India, as of January 2022.
How does BharatPe make money?
BharatPe earns revenue by providing loans to small business merchants. A major portion of the BharatPe revenue comes from its merchants and its lending products.
Who created BharatPe?
Ashneer Grover and Shashvat Nakrani founded BharatPe in 2018.
Is BharatPe a government company?
No, BharatPe is a private fintech company founded by Ashneer Grover and Shashvat Nakrani in 2018.
I wonder if there’s any space left to be explored in the tech space in the 21st century, or is it just a bunch of first-world issues. With this thought in mind, I present to you a story of a startup that filled the gap of online shopping and retail store closures.
If you purchase food, clothing, or whatever, you are entitled to receive money back. You spend a fortune on shopping, so why not make some money while you’re there? This isn’t about clipping coupons or looking for refunds. I’m referring to Ibotta.
Bryan Leach, an entrepreneur quit law to create Ibotta, a Denver-based company with over 400 staff, 20 m installs, nearly $100 million in funding, and alliances with Target, Walmart, and 1500 other companies. Ibotta, among the most popular mobile shopping apps in the U. S., was built in Denver in 2012. Ibotta aims to persuade millennials to do online shopping, and at the same time halt the trend of retail outlet closures by helping these stores.
Ibotta is a free app that you may get for your smart device. You register an account and then they generate a set of products that you can get at a retail shop, a supermarket if you’re purchasing a bottle of wine or a six-pack of beer. It’ll come in handy when you’re out pet shopping.
Ibotta Homepage
It works everywhere in the physical retail sector, and you choose which things you want to buy, then snap a pic of your receipt with your mobile or pay with your loyalty card, and they offer you a payback incentive right away. It’s essentially a 21st-century version of coupons or rebates, with a quick cash prize that you can collect and use on a gift voucher or deposit into your bank using PayPal or Venmo.
You can now use it for all of your online orders, such as calling an Uber, ordering online, or booking a flight on booking.com, and it will connect you to other e-shopping experiences and offer you quick cashback as soon as it hits a buy-in another app.
How was Ibotta Founded?
Bryan Leach, founder of Ibotta was a Denver lawyer who was glad to resolve global contract issues in arbitration in cities like London and Singapore across the globe, but the most thrilling part of his job was growing his international arbitration practice. When it came to creating his firm and doing the research work, he didn’t find it as enticing as he had hoped, and he hoped to be a part of a group of people who were looking to create something new.
One time, he was a little antsy when he returned from a conference in Rio de Janeiro saw one taking pics of his business cards so he could keep track of who he had just met at the conference, and Bryan thought about the disruptive power of mobile tech and how you could take pics of your receipt from the store and have quick access to data you need.
It turned into a task for him to discover how to convey promos and vouchers and have a direct link between the brand itself and the final user so these shoppers don’t have to take these Lil chits into the shop, and he found that there was a lot of tension with the current methods and a large expense on poor tactics.
The regret of not giving it a shot outweighed the fear of failing at this venture. Although he lacked the necessary business and technical talent to make this app, he travelled to Silicon Valley in search of investors, and to his surprise, the backers were enthusiastic about the concept and were willing to become angel investors. So one step led to another, and he soon found himself with $3 million in initial funding, at which point he formed a team with the right skillsets and the ability to design this app.
Tagline and logo of Ibotta
Ibotta Logo
“Life Rewarded” is the tagline of the Ibotta app, and it couldn’t be more apt. It is a must-have app if you’re hoping to save at least a few dollars upon each purchase. Every moment in daily life, to be exact.
Business Model of Ibotta
Value propositions
It’s an app that links firms and customers. It assists customers by making their life easier. You get accessibility to unique refunds after performing tasks (reacting to polls, viewing films, etc), and cashback on daily purchases. There are real money benefits instead of credit scores.
Channels
The following are the channels used by them: Mobile app, Google Play store, Blog posts, Social networks, Media (Forbes and TechCrunch).
Customer relationships
They build customer relationships via Buying sprees, Couponing replaced by entertaining activities, Referrals, Cashback, brands exploration.
Customer segments
Their target audience is millennials and Retailers (Marketers, Walmart, Target, etc).
Key partners
Their key partners include – Top companies and merchants (FMCG, dining at diners, etc), PayPal and Venmo are two popular payment options, Investors, LiveRamp Alliance
Key activities
The activities performed by Ibotta are Cold calls, Auditing, Client Support Systems Engineering, Ecommerce, Data Analysis, Conflict Resolution, Promotion, Project Management, Content Creation, Research Strategies, Ads, Sales, PR, Staffing.
Key resources
It’s a framework for smartphone use. The face recognition feature allows you to claim your deals by scanning your receipt. Other key resources include Designers, Salesforce, records of suppliers, Product details from customers, Analytics, and Investment.
Cost structure
Their cost structure comprises Lead generation, Branding, Promotion, IT infrastructure and communications, Software design, Operations, and Client service.
Revenue streams
Ibotta generates revenue by making the app Free for users, by earning modest fees from brands and stores, Answer polls, and paid ads.
Ibotta has used an associate fees business approach to earn revenue since its inception in 2012. Ibotta makes money for each sale made via their application by working with over 1,500 designer labels. Ibotta earns any moment a client buys the product through Ibotta at a partnered label.
Ads
Ibotta also earns money by offering marketers ad spaces and displaying them straight to users. They have a total of 8 different ad formats, like banner ads, instant messages, emails, etc.
Account Upkeep Charges
On profiles that have been idle for at least 6 months, it imposes a fee. It earns by taking funds from idle customers’ Ibotta account “rewards” balances to pay for the cost.
Ibotta’s influencer program
Performance marketing is the most intriguing part of lead generation and the transition to the sale for them and their affiliates. They don’t charge for display ads, views, or hits; instead, they charge per piece sold performance, which is how their influencer program works.
They pay those who recommend a pal or post material that leads to someone utilizing their app. They split the profits based on the value of the user to them. They make it worthwhile for them to convey the narrative of how Ibotta saves folks time/money.
They found that the sector’s general trend is to become apt to draw the distinction that assigns that traffic to the location where you bought that ad and away from inaccessible algorithmic media, which has induced firms like P&G to put a complete halt on display ads unless there’s the best approach, and they portray one of those best methods.
How is Ibotta Helping some of the Biggest Brands?
They deal with over 1500 consumer packaged goods firms, the majority of which are attempting to tell their brand’s narrative. They also collaborate with merchants with distinct goals. When it comes to FMCG firms, they just want to expose you to a unique product type and explain what makes their brand unique, but drawing your focus is difficult.
In a nutshell, they’re a one-of-a-kind space where folks can explore a wider customer base eager to learn about what they’ve built. They understand that once customers test their brand, it’ll become a frequent purchase. So what they’ve done is the brand connection in the form of small bite-sized factoids, recipes, and clips that let brands reach out to clients and target people known who prefer rivals’ products, which is Ibotta’s major value.
Stores are losing a big chunk of their market to e-commerce, but the fact is that mobile-influenced sales account for about $4 trillion in the US economy, which is ten times greater than e-commerce.
So, how can the technology be utilized to encourage consumers to return to their retail outlet?
Ibotta is providing a reminder and a reward to attain desired targets. They’re expanding cart sizes and the number of visits to those shops while also making an effort to have the same chat about what sets their brand apart.
What is the Secret to Ibotta’s Success?
3 most important factors in making an app that’ll be on people’s device’s homepage throughout the globe are:
An explicit benefit offer, in this case getting cash rewards for daily transactions via a free app.
Using an app that works in every case where you’d like to buy something important, hence why, you now can book an uber and place orders on the app.
High rate of usage: they cover aspects where you can return to Ibotta and begin with Ibotta every time if it’s online shopping or binge-watching rather than solely focusing on key value and rare deals, as others do.
Therefore, they’ll escalate the range of situations in which you can use Ibotta. On your dashboard, they’ll make it a lot simpler to find highly relevant data. Their search is one of the greatest, allowing you to browse the catalogues of all places you would wish to buy something at once.
Future Expansions
The app will be expanded beyond the US. They’re one of the top 5 best e-commerce platforms in the US, and there’s still ample space for them to flourish. They’re quite thrilled about launching the app in the UK, Australia, Canada, and the East – Asian nations. They’re actively working on it.
I can’t believe I am now finding Ibotta, although it’s existed since 2012. Just for shopping, you’ll get your money back? Gladly accept my request. Because of Ibotta, our daily regimen has altered, but it is worth giving a shot.
FAQ
Who is the CEO of Ibotta?
Bryan Leach is the current CEO of Ibotta.
How does Ibotta give money?
Ibotta earns money from its commission partners, ads, and influencer program, and shares the profit with the users.
How much do people earn with Ibotta?
An average Ibotta user earns between $10 to $20 a month.
The world has evolved over time and technology has played a great role in that. Money isn’t just paper anymore, it has taken the form of digital currency as well. The word cryptocurrency is always on-trend now. People are realizing its characteristics slowly but steadily.
A few years ago, the concepts of cryptos were not that popular. The cryptocurrency was invented in 2008 by an unknown individual or group called Satoshi Nakamoto but started gaining momentum in recent years.
To be specific, Cryptocurrency is nothing but a form of digital currency that runs on blockchain technology which means it is decentralized in nature and cannot be controlled by any Government or any mediator.
Cryptocurrency can be exchanged through various trading sites and amongst all those sites, we have CoinDCX. In this article, we will talk about India’s first crypto unicorn, CoinDCX’s business model and how it makes money. So let’s get started.
“Cryptocurrency will change market structures, and maybe even the architecture of the Internet itself.” -Abigail Johnson
CoinDCX is a company that focuses on providing cryptocurrency-related financial services and is into cryptocurrency trading networks. It concentrates on giving the customers a quick, risk-free, effortless, and reliable trading experience. It is also considered the safest and largest cryptocurrency legal exchange platform where one can buy and sell various types of cryptocurrencies.
CoinDCX Website
The company has developed a trading platform where traders using CoinDCX have given the facility to trade various industry-first products by using exchange liquidity.
CoinDCX was founded by Neeraj Khandelwal and Sumit Gupta in the month of April 2018, both of the founders have graduated from IIT Bombay.
Neeraj Khandelwal and Sumit Gupta
When Bitcoin started gaining momentum in 2014, the founders realized that it would be great to take the support of blockchain technology to get started with financial inclusion.
Both of them strived hard to make this site the safest place for traders to buy and sell cryptocurrencies. As of over 188 people are working in CoinDCX as their employees.
Features of CoinDCX
CoinDCX is attracting the attention of crypto traders because of its several amazing features. Some of them are down below:
It is quite easy, simple, and fast. One can just start investing in just 10 minutes.
Another significant feature is that is CoinDCX is safe to use. Any kind of trading or investment is safe here on this site.
The adding and withdrawing of the fund can be done very quickly. It is not time taking.
Target Audience of CoinDCX
People who are interested to buy and sell their cryptocurrencies in huge amounts are mainly the target audience of CoinDCX. It is in a mission to entice the people from millennials and Generation Z. It is operated worldwide and is for all types of traders taking into consideration their trading history, risk tolerance, and the number of times they have traded.
CoinDCX provides a number of tokens for exchange to the traders. Some of the popular tokens are:
Bitcoin
Ethereum
Bitcoin Cash
Litecoin
Binance Coin
Chainlink
EOS
Tether
Cardano
Stellar Lumens
Ripple
Tron
Matic Network
Basic Attention Token
Business Model of CoinDCX
The development of the single point access by the CoinDCX helps in trading all kinds of cryptocurrencies that can be found in over 500 markets. Such is their trade machine engine is built that it is able to process 1 million transactions in just a second.
CoinDCX makes money like any other trading platform by charging a transaction fee during every exchange. Apart from that the company also makes money through the withdrawal sum, deposit fees, and the commission received from trading. INR is converted into cryptos by the trader and cryptos are converted into INR on DCXInsta.
How Does CoinDCX Make Money?
CoinDCX basically makes money from deposit fees, withdrawal fees, trading commission, and listing fees. Deposit fees are charged while exchanging currencies. Plus withdrawal fees and trading commission are derived from any normal transaction and exchange.
Revenue Of CoinDCX
CoinDCX’s current value is $1.1 billion and with people taking an interest in cryptocurrencies the amount will increase in the near future. Recently, it has been able to raise funds over $109 Million from five investors, thus leading it to add its name to the list of unicorns and it has also become the first crypto unicorn of India.
Current Scenario Of CoinDCX
With the sudden bump in the journey of cryptos, the company’s future is also in question. After the ban on cryptocurrency by the Chinese Government, the digital currency market faced a big loss.
CoinDCX at first during the early period of this year roped in Bollywood superstar, Amitabh Bachchan as their Brand Ambassador. Following some tension regarding the cryptocurrencies clarity in its legality, Bachchan withdrew his name as its ambassador.
CoinDCX Amitabh Bachchan
After that CoinDCX again announced Bollywood actor Ayushmann Khurrana as its new brand ambassador for their campaign ‘Future Yahi Hai’. This campaign was set to promote the safety of the platform for trading cryptocurrencies and acknowledge all the concerns related to cryptos.
In the last few weeks, there is a huge ruckus going on regarding the legality of cryptocurrencies in India, the decision regarding the future of Crypto would be taken on the 13th of December 2020 by the Prime Minister of India, Narendra Modi. The fate of CoinDCX and its other competitors will be decided in just a few days.
Cryptocurrency, even after its fluctuating nature was able to hold the attention of the people, naturally trading platforms like CoinDCX were quite a help for the traders that wanted to exchange cryptocurrencies safely. It tried its level best. Although the future of the company is unknown and depends on the Cryptocurrency bill of the country, one cannot deny the successful model and ways of the company that helped them in becoming the first Unicorn that too in the field of cryptos in just a span of three years.
FAQ
How much does CoinDCX charge per trade?
CoinDCX charges takers 0.04%, and makers 0.06%.
What is CoinDCX and how it works?
CoinDCX provides crypto-related finance services. It has a trading platform that traders can use to invest in crypto.
Who is the founder of CoinDCX?
CoinDCX was founded by Sumit Gupta & Neeraj Khandelwal on 7 April 2018.
Owning a luxury car is one of our childhood dreams for most of us. Be it owning a normal car or a luxury beast on the road, a four-wheeler is one of the goals that people dreamt to achieve in their life. Luxury cars are quite common in the cities of UK, US and UAE but now they are gradually becoming familiar in the streets of the cities of India as well.
What’s better to choose your dream car from a showroom that has some of the biggest collections of luxury cars? In this article, we are going to talk about India’s largest buyer and seller of luxury used cars that is Big Boy Toyz. So without any wait, let’s look at how does Big Boy Toyz make money.
“Take care of your car in the garage, and the car will take care of you on the road.”
Big Boy Toyz is also known as BBT was founded in the year 2009 by Jatin Ahuja. His goal was to transform and make the previously owned exotic car business big in a country like India. One can find cars like BMW, Audi, Range Rover, Aston Martins, Bentley, Lamborghini, and others parked in their showrooms.
Jatin Ahuja, Big Boy Toyz Founder
At first, it was a one-showroom company based at Gurugram, it is also where the headquarter of the company was situated. Now, it can be found in Hyderabad and Mumbai as well. Ahuja started the business with an investment of just ₹70,000. It became so popular that, in its very first year it experienced a turnover of ₹6 Crore.
Big Boy Toyz Showroom
Over the years the brand has secured to expand its name over the industry and secured its name in the list of top businesses in the country. In 2017, it gave an opportunity to its customers to buy luxury cars online, a first for any company in the country. Not only that, but BBT also started dealing with Premium motorcycles like sportbikes, cruisers, and other exotic two-wheelers in 2019.
By 2023, it is said that India’s used car market is to cross the $25 billion mark and Bigg Boy Toyz seems to be leading this industry with its strong calibre.
Target Audience of Big Boy Toyz
Jatin Ahuja started this business with premium car dealers. Since 2009, BBT has supplied over 6000 cars to people from different cities of India. The prices of the cars are somehow between ₹50 Lakhs to ₹4 Crores, naturally, they target the customers who are celebrities or are from the upper-middle-class that want on getting luxury in their collections of four-wheelers.
Jatin Ahuja with Bollywood Actress, Neha Dhupia
These people are free from the stigma of buying pre-owned cars and are at the age of 35 to 50 years. With its price range, it has now started working on making luxury cars accessible to other sections of society as well.
Business Model of Big Boy Toyz
BBT mainly focuses on selling luxury four-wheelers to the customer and that is mainly how they make money. The quality of the cars that they sell to their customers is what makes them more unique. Their USP is all about making their customers happy.
Price definitely plays a big role in attracting customers but apart from that, another thing that plays a significant role is how pre-owned cars are owned by some of the biggest celebrities in the country. To be able to drive a car that is driven by their favourite celebrity is quite a good offer to be missed.
How does Big Boy Toyz Make Money?
Celebrities from the Bollywood industry and sports industry are some of the major customers of Big Boy Toyz. They mainly buy and sell their cars as well, because they lose interest in the luxury beast quite quickly than expected when another catches their eyes.
With its showrooms in three of the business cities in the country, it has been able to attract the attention of the customers quite well. In a year, it has been able to sell 340 to 400 cars easily. They mostly sell one to two cars a day. This is how the company generates revenue mostly. It has also partnered itself with Dharma production and with MTV Music Television Channel;
What is Unique About Big Boy Toyz?
Some of the features of BBT that make it unique are listed below:
It mainly deals with buying and selling luxury cars and now some bikes as well.
Every car that is in the showroom of BBT goes through 151 quality checks before it is certified by BBT.
Big Boy Toyz provides all the insurance history of the preowned cars to its customers.
BBT also takes note that all the cars have not run more than 20,000 KM.
BBT ensures that none of the car’s meters is tampered with or face any kind of problems and is as good as new.
Revenue of Big Boy Toyz
The revenue of Big Boy Toyz was between ₹100 – ₹500 Crore as of the financial year 2020. Surprisingly even during the Covid, the brand was able to sell over 140 luxury cars in just the first half of the fiscal year. BBT experienced a 48% increase in the demand for luxury cars post the first lockdown during the Covid.
BBT is a kind of company that is literally giving an opportunity to their customers to own their dream cars. The best part is that, even after the Covid lockdown, they experienced a surge in the demand for luxury cars. The company is proving its mettle every day, by growing its business in the tough time, it is surely going to lead the pre-owned car market in the near future.
FAQ
How does Big Boy Toyz make money?
BBT sells preowned cars to customers, its main target audience is celebrities or the upper-middle class who are looking for a preowned luxury car. They sell one to two cars a day.
What is the business of Big Boy Toyz?
Big Boy Toyz mainly focuses on buying and selling pre-owned luxury cars.
Who is the owner of Big Boy Toyz?
Jatin Ahuja is the founder and managing director of Big Boy Toyz.
Google is one of the most acclaimed multinational conglomerates in the world, as it runs multiple businesses under a single brand. Its most successful business sector is Google Play which was also known as Android Market, the platform is one of the top digital distribution services and is a brainchild of Google.
Google play was initially launched in October 2008 and then re-launched in March 2012 after combining the Android market and Google together. Google Play is the official app store for every device that runs on an android operating system. The platform allows users to search and download apps that are designed and developed for android devices.
It also acts as a digital media store that offers music, e-books, movies, and TV programs. The apps can be downloaded directly from Google play, while the platform allows its app developers to make apps that are free and charge a fee. The platform had over 82 billion app downloads just in 2016 and had over 3.5 million Android applications available in 2017.
With the rise of the Internet, one organization that has remained constant and improving from the very beginning is Google. It has managed to do what most people would say is impossible. It did the exact same thing that its slogan says and in every case, better than that. They proudly say that their mission is to “Organise the world’s information and make it universally accessible and useful”. Simple it may sound but it is a herculean task.
The Google story begins in 1995 at Stanford University. Larry Page was considering Stanford for grad school and Sergey Brin, a student there, was assigned to show him around. Little did they know that they would lead the information revolution afterward. Google (of course) outgrew the garage and they eventually had to move to its current headquarters (also known as ‘The Googleplex’) in Mountain View, California.
As Google grew, they began hiring more and more and made the company truly big in every sense. They launched Google Play Store, Drive, and all of Google suite with one Email ID. So, with one ID people could use all of Google, be it Document creating and editing, spreadsheet updating, and sharing, or anything over the internet.
What is Google Play Store?
Google play store is one megastore in your smartphone. We mean it quite literally. Google play store is a subsidiary of a service that is provided by Google to its android users. The store can be accessed instantly if you have an android device, in fact, it comes pre-installed on every new smartphone. It is important to note here that there are more than 2.8 billion android users in the world as of now. This is a huge number and Google caters to them all.
Google play store is a marketplace for Apps, Music, Movies, Books, TV Shows and many more. It is a single place you need to get almost all the work done that you want from your device. Be it work-related apps, professional suites or any sort of craving for entertainment, you will find it all on the Google play store.
Google play store strives to create an environment that a user wants, it does it so well. Not only this, but apart from being a perfect yet simple place for users, it also helps developers get the right audience for their work.
What are the Services Provided by Google Play?
Some of the main services that Google Play offers are:
Google Play Games
Google play games were launched in 2013, and since then it has been an online gaming service for Android devices.
Google Playbooks
Google playbooks are one of the leading e-book distribution services as it is available in 75 countries. It currently has more than five million eBooks available for purchase and offers the user an option of uploading over 1000 of their own eBooks in the form of PDFs.
Google TV
This is the Video-on-demand platform of Google that offers a wide range of movies and TV shows that can be purchased or rented. The platform was earlier known as Google Play Movies & TV and has its movies available in 110 countries while its TV shows are available only in a select few countries.
Google Play Pass
This platform was launched in 2019 and is a games and app subscriptions services that are available only in America. Google Play Pass is invitation-only for app developers.
Google Play Music
This app allows its user to listen to and download music. Currently, the app has over 15 million subscribers.
According to Google Play, the app developers receive over 70% of the app price, while the other 30% goes to Google Play as they are the distribution partner and as a part of operating fees. The platform also allows the developers to make sales on their app, on the basis that it informs its users when the sale ends. The application developers can also release an early version of their app to a certain group of users or even allow their users to pre-order the apps before they are released.
For regular subscription-based payments, it charges 30% for the first-year subscription consumer pays and then the app developers can continue paying15% for all subsequent years. This model is similar to the business model of another app store like the Apple app store. Where the app developers pay some money to the app store in order to hoist their app and get the remaining amount of money from their user purchases.
A Google Play advertisement
How does Google Play Make Money?
There are two main ways Google Play makes money
Advertisements
Google allows its users to promote apps on its platform by using certain keywords that are shortlisted by app developers. So when a user is searching for a certain keyword they can get your app listed on the top.
Service Fee
The revenue source of the Google play store is simple and it is primarily a Service fee from developers.
If a developer wants to sell an app on the Google play store then Google asks for a Service fee from the developer. Quite anything or service that developers would want to sell, can be a subscription service too. However, any in-app purchase is not commissioned by Google.
Google Play Store Fee
Google also takes a 30% cut of the revenue made on an android app from the developers.
This should be quite clear by now that Google only earns money when developers charge something from the customers. So, the revenue model works only when developers are making money. This creates a hit and takes effect on the whole relationship. This also ensures that both parties are putting efforts to be more efficient and convenient.
How much does Google Play Make?
On 30th August 2021, the platform disclosed the revenue of the platform for the first in 13 years. According to the declassified documents of the Google play store, the total revenue of the platform is over $11.2 billion (Rs. 82,000 crores) in 2019. This amount is said to include the price of the app (which it charges 30% of), additional in-app purchases, and revenue generated via advertisements on the Play Store app.
This information was disclosed because of an antitrust lawsuit that was filed against the Google Play store by several districts and states in America claiming that Google Play Store exercises a monopoly over application distribution. Out of the $11.2 billion total revenue, over $8.5 billion is the gross profit of the app, while the operating income of the Google play store is $7 billion.
Google Play Developers Support System
If you are a developer for an app, all you need is an audience for your beautiful creation. Google play does that work for you so that you can focus on more important things for your application. It offers a ready-made market for apps and games. They have a capacity of about a little over 2 billion users monthly. With this huge number of people transacting with Google every month, it is going to be a booming opportunity if you can tap this market.
If you are a developer who wants to distribute an app for free to the globe then you don’t have to pay a single dime. Yes, you read that right, Distribution is fully free for the developers who do not charge for their apps and games.
Moreover, Google also provides full support to each and every developer. Be it on the edge of developer training, user data, and up-to-date information, helping tools, and more. Let me tell you precisely how Google helps developers in various domains, they are,
Distribution
Google play store provides the technical interface to distribute apps made by developers to the world. They have billions of monthly active users. If a developer is able to get his/her app on the Google play store, he/she can get the benefits of a global market. This will jumpstart revenue for them and value creation for its users.
Development and Support
Google provides state-of-the-art facilities to developers. The range of support can start from quality control checks, application testing, and user analytics to its Android studio, play console, and Android software development console. All these supplements allow developers to make their work better and provide better value.
Compliance
Google play store provides a full-fledged ecosystem for a developer’s app. They can categorize, target, and even regulate the market for their apps. This helps them to target the right audience and market, this compliance is a good help for developers who know their work. This ensures proper distribution of their product.
Payments
Developers who make their app accessible after a purchase can totally rely on Google play as a mediator for efficient distribution. Google ensures the utmost security and safety for payments of any sort. They also act as a currency converter for apps that are famous worldwide, like Spotify or Youtube.
All these add-ons make developers make better apps and thus share more of the market. This improves the market as well as the revenue for developers. Thus google play makes the perfect ecosystem for developers to foster their growth. With the right tools handy, developers will do their best work for their users.
Google Play Safety
While Google connects all android users for the love of apps, they do it very securely. With the state-of-the-art infrastructure in the face of security and safety, Google sets new parameters for privacy. Every app in the Google play store is scanned and tested, and only then is added to its app library. They scan more than 100 billion apps every single day to ensure no security leaks. This provides users with enough data for potential threats and trusts for Google.
Google Play Protect
In addition to the everyday checks, every app is put up on the store only after it clears the compliance parameters set by Google experts. They leave no stone unturned.
Some of the parameters that are set by Google are listed here –
Intellectual Property Security
Many applications try to use other apps’ goodwill to generate revenue by deceiving their users. Google has strict standards to avoid such deceiving. They do not permit apps that are similar to other apps in any domain, thus they cannot use other brands to mislead users. This protects the intellectual property rights of genuine apps and services and acts as a wall of protection for brands as well as for users.
Content Restrictions
Google knows very well that the internet is filled with good stuff as well as garbage of all sorts. They do not allow any sort of content that depicts any sort of abuse, harmful products, sexual content, profanity, hate speech and any sort of inappropriate content. This filters the Google play store and makes it accessible to everyone.
Abuse and Deception
As mentioned in the earlier point, Google has hard parameters for all sorts of apps. It does not allow any app that includes deception, abuse, and any malicious information. These kinds of apps misuse the personal data of users and the data can be used for multiple bad intentions. Thus, to prevent this, Google has found a solution. Every app developer has to submit to Google what data the app collects and how the data is used and utilized for app functioning. This makes the developer more accountable on the basis of customer service and privacy.
Application Functionality
The developer has to inform Google about the minimum requirements that are needed to run the app. This is in order to respect the customer user experience that adds to the overall experience of the application. This also reveals spam (if any) on the developer’s side.
Store Listing
All the app developers have to include a crystal clear definition of everything about the app, if they fail to do so and any information is wrongly listed, then Google has all the rights to unlist the app from the store. Any misleading data or promotions can lead to a permanent ban on an app.
Even after all the checks and permits, If a user finds anything wrong with an application then he/she can report complaints. Google has made it very convenient to report abuse across all its services. Developers can also flag some apps that violate their intellectual property rights. This ensures a smooth ecosystem for everyone.
Google Play Store Flag as inappropriate
The Lawsuit against Google Play Store
The case was filed by attorney generals from 37 states and districts of America because they taught that the platform was cutting down the profits of app developers and taking a huge commission on sales. The lawsuit also says that Google is using illicit measures in order to maintain its monopoly. The next trial is expected to be in late 2022.
According to Google, however, this case is nothing but a meritless lawsuit, and said that the data mischaracterizes its business. Google also has another lawsuit filed against it by Epic Games, which is the creator of a popular game known as Fortnite.
Epic Games along with other app developers are separately suing Google because they think that the platform is taking over 30% of the fee for every digital good sold as in-app purchases and generating huge amounts of profits. According to Epic Games, the company came up with a Premier Device Program through which it offered a share of Google Play Earnings to other big companies like LG and Motorola.
Conclusion
We learned that Google is a pioneer in technology and that the Google play store is here to help every user and every developer. Google was changing how people consume information and now is managing every app that you can think of.
Google play store works as a perfect ecosystem for developers and users on all the upfronts, be it security, safety, privacy, and intellectual rights. We learned how the Google play store earns revenues.
Not only this, Google is striving every day to be the better maintainer of almost every device we use. From the Digital well-being feature to the whole entertainment pocket industry. It is no doubt that its innovation leads the technological revolution in the world. Be it on the device on our palms to the satellite outside this earth. Google knows how to make the internet a better and a convenient place for everyone.
FAQs
How does the Google Play store make money?
According to Google Play, the app developers receives over 70% of the app price, while the other 30% goes to Google Play as they are the distribution partner and as a part of operating fees.
Is Google Play profitable?
Yes, Google Play generated $11.2 billion in revenue from its app store in 2019.
What percentage does Google Play take?
Google Play store takes a 30% cut and, 70% goes to the developers.
The automobile business is one of the world’s fastest expanding and evergreen industries, particularly in India, where it plays a significant role in the country’s economic growth. Customers who are enthusiastic about cars and bikes will gain most from the industry’s perception of various automobiles culture of the industry. Droom is an online marketplace in India where you can buy and sell new and used cars. Sandeep Aggarwal established Droom in 2014. Droom provides a large variety of automobile categories and also other all connected services such as warranty, insurance, finance.
A variety of elements influence a customer’s decision-making process when acquiring a vehicle, including price, performance, mileage, and vehicle ratings and reviews. Customers look for easy online platforms for buying and selling automobiles as the use of the internet and technology for activities such as shopping grows.
Droom is a renowned autosite that provides an online platform for the vehicle industry. This is a digital automobile platform that employs technology to facilitate end-to-end vehicle sales and purchases from the vendor to the buyer. Droom’s broad and thorough platform allows users to buy or sell a variety of vehicles, from bicycles to aeroplanes. Droom is the largest online automobile platform in India for buying both used and new vehicles, and is also the fourth largest E-commerce site, with an 80% market share of India’s online automobile transactions.
Droom’s business began in Delhi as an online marketplace for old vehicles, but after three months, it expanded to include two-wheelers as well. The brand spread its services across 100 cities within a year. After another six months, the company began offering services such as roadside assistance, warranty, and insurance. They also expanded their services to include seaways, planes, bicycles, and other vehicles.
Business Model of Droom
Droom’s Business Model
Droom’s tenacious business model was important in its growth and success. Let me first define what the term “business model” means before examining Droom’s business plan.
A business model is a form in which an organization is built, that supports the practicability of a product or a company and portrays how an organization operates and goes forward to achieve its aim. As a result, a business model encompasses all of an organization’s operations and regulations.
Droom’s business model is divided into four categories: business to consumer, customer to customer, customer to the business, and business to business. The business to consumer model accounts for the majority of its revenue (approx. 88%), with the customer to business and customer to customer models contributing 10%, and the business to business model accounts for the remaining 2%.
Value Proposition of Droom
A value proposition is a value that a firm claims to deliver to its consumers, and customers prefer to buy their products or services based on that value. Droom’s proposition of value is unique, consisting of pricing, trust, and transparency. It provides buyers with a low cost and large selection, while sellers have access to a large number of online shoppers, a full range of e-commerce services, and so on, allowing them to manage their online store at Droom.
Droom has become the first car gateway worldwide to house the entire ecosystem of the automotive, with additional elements such as price, finance, history, tools, and marketplace.
Droom provides its customers with a variety of ecosystem products and services which are mostly technology driven by combining, data science and artificial intelligence such as using the “ECO App” for getting vehicles’ inspection reports. It also offers purchasers a full circle trust score to verify that the sellers with whom they are engaging can be trusted.
Droom launched a pricing system for automobiles called Orange book value (OBV). It is the first company to introduce this feature in India. This assists dealers and consumers in determining the fair market price of automobiles. This is data-driven and unbiased. Consumers can also use this tool to see if a vehicle is available on the market. It also has Droom discovery, Droom assists, and Droom credit to help buyers and sellers.
Division of Customers in Droom
Droom’s target market is online consumers and internet users. In a larger sense, the company’s customer sector is classified into four categories: Buyers, Sellers, Dealers, Enterprises.
Droom has created four marketplace types to ensure harmonious and smooth buying and selling operations. It offers a variety of purchasing choices to meet the needs of each buyer, which creates a major trust factor.
Droom strives to be incredibly transparent. It allows sellers to upload an unlimited no. of listings and promote to a large audience on the internet, and it allows sellers to sell both used and new vehicles.
Droom offers dealers self-service accounts, such as StoreManager. Dealers can use this to run and manage their internet company from anywhere at any time.
Droom’s customers also include businesses involved in the automobile industry, it provides vertical enterprise solutions. It also offers a variety of effective advertising options.
Important Resources of Droom
Droom uses technologies such as AI, Machine Learning, Data Science, and Big Data in its core services such as customer assistance and the development of various tools such as OBV, and so on. These are the key resources of Droom. Labs of Droom are dedicated to using world-class technology apps to provide excellent user experience and user satisfaction.
The company has a customer-centred approach and its trained and talented team of officials reach out to buyers and sellers helping the organization reach a certain level of growth.
Client Relations with Droom
Droom focuses on establishing trustworthy and strong client relationships and strives to provide excellent customer support and management, that is its assistant tool: Droom Assist. This tool helps buyers and sellers with guidance and consultation services. It also helps in transactions of its customers by making them easy and transparent. Droom improves its relationships with consumers by providing security to their funds with the use of easily refundable tokens.
Major Activities of Droom
Droom encourages its services and features through marketing and promotional activities on several social media platforms such as Facebook, Linkedin, etc. It also undertakes researches at its AI labs to develop improvements that would enhance customer satisfaction.
How does Droom Make Money?
Droom mainly has four sources to earn revenue that are, Service fees, Premium tools, Subscription, and Advertisements.
The service fee is the main source of revenue, and this is charged on every successful transaction on the platform. This varies according to the vehicle type.
The subscription plan is offered to various big auto dealers, and the company provides them with online products and services.
Its premium tools include OBV, Droom credit, etc. Droom also earns a lump of money from advertisements as it advertises different auto brands on its platform. This also helps in doubling traffic on the platform.
Competitors of Droom
Droom faces major competition from companies such as Car24, CarDekho, OLX, and Quickr. Droom has several advantages over its competitors such as, it follows all the models of business and it is very efficient for buyers and sellers to get on the platform and use its services and provides an end-to-end service.
Conclusion
Recapitulating, Droom operates on a Business model, a plan that is well-integrated with technological advancements and a progressive model. It gives details to distinctive marketing activities. In the future, when automotive sales are expected to skyrocket, Droom will be facing tough competition, even though it has a big advantage overall.
FAQs
What does Droom Company do?
Droom is India’s first automobile e-commerce platform that allows you to buy and sell automobiles online.
How does Droom make Money?
Droom mainly has four sources to earn money that are, Service fees, Premium tools, Subscription, and Advertisements.
Parnas Ghosh
