The evening tea, without snacks, sounds incomplete in a typical Indian household. A snack between meals to calm our hunger down, to keep the mind sane is also important. Basically, snacks are quite a significant part of our life. Over that, if it’s healthy, then it becomes the cherry on top of a cake. One food brand in India has been able to be that cherry. The beginning of that brand itself is an interesting tale. Here’s the success story of the biggest nacho brand in India – Cornitos.
Let me tell you the story, where a single trip to the U.S. brings a revolution in the snacking industry of India.
Cornitos first came into existence in the year 2009 with an investment of just ₹25 Crore. The actual journey started when Vikram Agarwal tasted tortilla chips for the first time in his business trip to USA. Tortilla chips a.k.a nachos are triangle-shaped Mexican snack that is made of corn and are either fried or baked. Inspired by popular Tortilla chip brand Doritos from the USA, Vikram Agarwal decided to start his own Indian Nachos brand.
In India, where potato chips and traditional Namkeen’s rule the market, it is not an easy job to introduce a complete new form of snack item. Vikram Agarwal took that brave decision to introduce the Mexican food item in the Indian snacking industry. He believed, it will be able to penetrate the market, and thus shares his idea with his father.
The prior experience of 20 years, handling family business was quite a help for Mr. Agarwal in starting Cornitos. After getting nod from his father, in 2009 he set up Greendot Health Foods Pvt Ltd in Faridabad, and step his foot in the Indian snack market with Cornitos.
What Makes Cornitos Different from other snacks?
The Mexican food item has able to entice people because of different reasons. They are:
1. The cute triangle-shaped snacks are made according to the Indian taste buds and are healthy as well.
2. Yes, the nacho crisps are made of corns, cooked with less oil and has zero Trans-fat and zero cholesterol.
3. Not only that, they are also gluten-free and are available in 15 different flavors. Pretty much to choose from.
4. Cornitos has its main factory located in Roorkee, Uttarakhand. The manufacturing plant for the Nacho brand is fully-automated, which means completely secured from human touch.
Flavors of Cornitos that Has Enchanted The Taste Buds Of Indians
The taste of Mexico in India is found in the 15 different flavors of this Nacho brand.
Although the journey first began with just Nacho chips, the company started experimenting with different products in no-time. The numerous products offered by Cornitos are:
Nachos Crisps
Taco Shell
Dips
Mexican Delights
Tortilla Wraps
Nuts & Seeds
DIY Kits
Target Audience of Cornitos
At first Cornitos decided to target the younger generation who are a little bit health-conscious and tried to cater their needs. Interestingly, now the older generations are also taking a kind liking towards the products of Cornitos. This brand mostly serves people from medium-income groups and Urban areas. Cornitos are exported globally and can be found in USA, China, Hong Kong, Singapore, Taiwan, Thailand, Saudi Arabia, Pakistan, Sri Lanka and others.
The Rise of Cornitos
As mentioned before, it was not an easy job to penetrate the market, where popular snack brands have already established a name. At first it was quite a challenge to turn on the demand switch of customers for Cornitos. At that time nachos was, not that famous of a snack item in India. Therefore, it has to pull its socks up, to create a stance in the snack market of India.
The company realizes to make it attractive to the consumers, it has to change. Although it was a risky gamble, to make it look like an international brand, the entire packaging of Cornitos was changed in 2011.
From logo to color even the packaging got transferred to matte finish from glossy paper. Intriguingly, the new packaging strategy worked and it started making a place in the hearts of Indians.
Cornitos Packaging
Cornitos has tied with different airlines like IndiGo, Spice Jet, Jet Airways and Air Asia. Not only that, it has tied with multiplexes like, PVR and Inox and other café outlets. Apart from that Cornitos are found in retail stores like, Big Bazaar, Spencers, and More.
Sadly, the struggling days for Cornitos returned, when the whole world was struck down by the Covid-19 Pandemic. Just like many other brands, the sales of Cornitos got affected as well. For a long time Cornitos was available in BigBasket, Amazon, Grofers, and Flipkart but not so surprisingly, the lockdown created quite a big challenge for the company. The supply chain was disrupted, which resulted in the decline of sales.
Cornitos on the other hand, didn’t give up, after the first lockdown it decided to launch its own online website. To make it easy for the customers to buy the product, all of Cornitos products are available in the website. With cashless payments and contactless delivery, all safety precautions were taken to satisfy the customers.
Cornitos Website
Did You Know?
Cornitos was awarded The Economic Times Best Brands 2020 award.
Cornitos offers no garlic and no onion snacks.
Conclusion
To start with something new in a complete different market is truly a brave decision. The taste of Mexico with an Indian twist was served to the mass and like a good epilogue of a story, the mass has accepted it. With numerous twists and turn Cornitos has emerged into India’s biggest nachos brand and has capture over 60% of the market as of 2019. One single idea can create a whole new world.
FAQ
What is the revenue Of Cornitos?
As of the financial year 2021, Cornitos have the revenue of ₹85 crore.
Who Is The Owner Of Cornitos?
Vikram Agarwal is the owner of Cornitos.
Is Cornitos an Indian brand?
Yes, Cornitos is made in India and takes the pride to call itself the biggest nachos brand of the country.
In the world of technology, we came far from bringing light to the world to brighten our life. Technology played a crucial role in everyone’s life, as it brought effortless connectivity between individuals. Besides, improving the world in such a way, anything can be possible with the help of technology.
For instance, this ongoing pandemic indeed proved that technology is the sole way to connect people from far distances. On the other hand, companies are combating each other to manifest who has ingenious technology and designing products in order to make people’s lives better than usual. That’s where Carl Pei, CEO of OnePlus commenced his next move in inaugurating his consumer technology company- Nothing. The company set an aim to eliminate the hurdles between people and technology.
In simple words, Nothing is built to generate a seamless and intuitive technology for people without any barriers such as poor connectivity, quality, price etc. Some companies urge us to improve people’s lives by generating innovative products, for example, designing virtual connectivity really helped us in some way or the other in this pandemic. But, Nothing wanted the people to experience not only consumer electronics but also in life by ameliorating a seamless digital future.
Carl Pie, the founder of Nothing and Ex Co-founder of OnePlus, invested his idea in developing technology starting in 2020.
Nothing’s is a London-based consumer technology company. Therefore, Nothing is operable all over the world with a goal to enhance a seamless digital future for people.
Products & Services of Nothing
Generally, Nothing is established to eliminate barriers between people and technology. Moreover, the founder of Nothing already mentioned that the company’s main purpose is to create an ecosystem of products, whereby one device communicates to another.
As of now, on 27th July 2021, Nothing has released its very own first product- Ear (1) which bestows a raw beauty of innovation in experiencing real and pure sound.
Nothing ear (1)
After, Nothing first ever release, the company is planning to release products across multiple categories, keeping in mind that it should be an ecosystem of devices as well as play a vital part in improving the digital world in the future.
Target Audience of Nothing
Nothing only aim is to bestow a seamless digital future to the people, whose lives depend on the digital world, because technology is omnipresent.
Nothing is built to ensure impeccable technology services to the people with the goal to eliminate the barriers faced by the individuals with the technology. Carl Pei proclaimed his next venture- Nothing after parting ways with OnePlus in October 2020.
The company raised its fund around 7 million dollars from various capital ventures such as Kevin Lin, Tony Fadell, Paddy Cosgrave, Kunal Shah, Casey Neistat, Tony Fadell and Steve Huffman.
Nothing opened investment opportunities to the community, the amount to invest is estimated at 1.5 million dollars and one community member will be selected to Nothing Board of Directors. The company recently raises 15 million dollar funding in a Series A round led by Google venture.
What is Unique about the Business Model of Nothing
Nothing is established to create a free flow of technology between people. The company planned to release products across multiple categories covering all the technology devices.
Besides, Nothing has promulgated its new release- Ear(1) where it weighs around 4.7 grams and is considered Ultra-light in weight. The device’s sound is developed by the Teenage engineering community, with an 11.6mm speaker driver designed in it. The Ear (1) is estimated to function up to 34 hours of listening and comes at 6000 rupees.
The company is veil about other products which are in the line of release, so until then Nothing is progressing in generating a seamless digital world in the future.
Nothing, with the launch of its first product Ear(1) had gained the attention of people around the globe for its unique model. The Wireless Bluetooth earbuds sector has a lot of competitors like Apple’s AirPods, Samsung Galaxy Buds, OnePlus Buds, etc but Ear(1) has made to stand out with the design which isn’t similar to any other wireless earbuds available in the market and the exceptional specifications for this price range.
Carl Pei was one integral part of the success of OnePlus and with Nothing similar results can be seen with Carl Pei bringing his customers the best of artistically created consumer technology products.
Even though the company has released only one product after its incorporation last year, Nothing is aiming to prove that their services are gonna bring a unique lifestyle in the upcoming years by releasing sui generis smart devices, which you won’t even find in any other market in the world.
FAQ
What is Nothing?
Nothing is a London based startup company that deals in consumer technology. The company aims to remove barriers between people and technology and create products that are artistic and bring back passion and trust in the consumer technology industry. The company wants to create consumer technology products that are smart and well connected while enhancing a seamless digital world in the future.
Who is the founder of Nothing?
Nothing was founded by Carl Pei in October 2020 after he left Oneplus. Carl Pei was the co-founder of Oneplus in 2013. He implied his idea to bring a barrier-free between people and technology in 2015 and made his path towards creating a world of seamless digital and built NOTHING in 2020.
What is the net funding received by Nothing?
Nothing had raised $7 Million in a seed financing round in November 2020. Investors in Nothing include Tony Fadell, Casey Neistat, Kevin Lin, Steve Huffman, Josh Buckley and Kunal Shah(founder of CRED). Nothing had also invited users to invest in the company by making $1.5 million shares available to the general public. The company also raised $15 million in Series A funding led by Google Ventures.
What makes a startup idea remarkable is its potential to solve a problem and make people’s lives easier. The issue does not have to go unaddressed; the question is how effectively it can be addressed. Many company models are based on this notion. With that in mind, allow me to share Trivago’s amazing startup story and its business model with you.
Trivago is a multinational technology company based in Germany that specializes in internet-based hotel, lodging, and metasearch services and products. It was Germany’s first hotel search engine, and it is now one of the country’s fastest-growing businesses, with profits doubling since 2008.
Expedia Inc. holds a majority of the equity in the firm. A hotel search company with the main objective of changing the way people search for and compare hotels online. It also offers hotel advertisers to promote their brand on the Trivago website providing them access to a broader target audience who visits its website.
How was Trivago started?
Earlier, booking a hotel used to be complicated. There used to be frauds and people were not able to get better deals. Looking at this problem gave rise to new startups such as Expedia, Orbitz, etc. that allowed customers to compare prices and get the best deals.
People liked this idea and these startups quickly gained traction. Rolf Schrömgens, Peter Vinnemeier, and Stephan Stubner saw this as an opportunity and they came up with this new hotel aggregation site which they named Trivago.
It was founded in 2005 in Dusseldorf, Germany where its headquarters are. It was first established in a garage. It was like a bootstrapped company with very little external capital and on going away with little steps and small steps forward. They grew very slowly in the beginning but eventually gained momentum.
Trivago has evolved from a €1.4 million seed investment to become one of Europe’s most renowned unicorns. Today, they have 3 million hotels and alternative accommodations, search through more than 250 booking sites, active in more than 190 countries on 54 platforms, 33 languages, and more than 100 filters that you can apply to your search.
Founders & core team
Founders:
Rolf Schrömgens
Stephan Stubner
Peter Vinnemeier
Malte Siewert
Trivago’s core team:
Axel Hefer – Chief Executive Officer (CEO)
Anja Honnefelder – Chief People Officer (CPO)
Matthias Tillmann – Chief Financial Officer (CFO)
James Carter – Chief Product and Technology Officer (CTPO)
Trivago has 2 types of customers. The first type includes partners like hotels, online travel agencies, and media who promote their products on the Trivago website. The second type is guests like travelers who compare offerings and pricing before making a purchase decision to book their desired hotel.
Key partners:
Hotels, online travel agents, and guests are among Trivago most important partners, but so are media and advertising firms, payment processors, and investors and stakeholders.
Key activities:
Based on key resources, Trivago acts as a platform for hotel brands to display their offerings and customers can find what they want. It manages guest and hotel networks, develops its products, and conducts sales and marketing.
The Company promotes transparency by allowing users to contribute to the content on its website. They can add content to hotel and cabin brand portrayals, complete missing brand profiles, and change profiles for quality assurance.
Personalization:
The platform encourages personalization by allowing firms to customize their profiles in a variety of ways.
Convenience:
Users can search for a variety of alternatives and narrow down results using hundreds of filters available on the platform.
Brand/positioning:
Because of its success, the site has developed a strong brand. It receives 120 unique visitors every month, indicating that it has a large user base. Trivago is one of Germany’s best and fastest-growing startups, with its advantages multiplying since 2008.
Customer relationship:
Trivago is an entirely automated platform, thus users have very little or no engagement with the team. The site’s FAQs answer the majority of questions, and email support is available for personal assistance.
Key resources:
Trivago most valuable assets are its website and application through which customers can search for hotels. Its highly trained workers are another crucial resource for maintaining and updating the website. In addition, being a startup, it is reliant on investor funding, which raised $53.8 million in December 2010.
Cost structure:
Technology setup and running costs, personnel pay, sales, and marketing divisions all contribute to the overall cost structure.
How does Trivago earns Revenue?
We know Trivago doesn’t offer tangible products or has no tie-ups with other hotels. So you might be wondering how it makes money. Here’s how.
Listings:
Trivago charges commissions to online travel agencies for promoting their services and hotel rooms on the Trivago website.
Services:
Trivago earns revenue by managing the listings i.e. the presence and visibility of hotel brands on their platform. For this, they have a feature known as Hotel Manager PRO wherein hotel brands need to pay the subscription fees.
Cost Per Click:
Trivago links itself to other websites like Oyo and Make my trip. When people visit the Trivago website and want to book their desired hotel, they get redirected to the hotel’s website.
Trivago is promoting the hotel’s products and services and driving a sale for them. They are referring it to customers and in turn charge commission for doing the same. This is known as affiliate marketing or Cost Per Click (CPC) wherein they get paid whenever customers click on a link of that hotel’s website and their entire revenue model is based on this.
A customer is referred to the website of the advertiser when the user clicks on the deals present in the search results. Trivago charges money for every referral. This model is known as the Cost-Per-Click (CPC) model.
What makes Trivago unique?
Compared to other hotel search engines, Trivago’ USP is its product focus: hotel search. It doesn’t offer other features like car rentals or booking flights just the hotel price comparison making it less confusing for customers. It benefits Trivago as well such as:
They have no conflict of interest.
Can focus on developing their products.
Be committed to helping hoteliers compete and travelers locate their desired hotel.
Competitors of Trivago
The top three competitors of Trivago are:
Tripadvisor:
Trivago’s main competition is Tripadvisor. It is a publicly-traded firm based in Needham. The company was founded in Massachusetts in the year 2000 and works in the travel agency business. It employs 1745 people more than Trivago. Tripadvisor has revenue of $366.5 million dollars higher than Trivago. It has raised a total of $3712.8 million, which is higher than Trivago.
Booking.com:
Booking.com is another major competitor of Trivago. It was created in 1996 and has its headquarters in Amsterdam. It’s in the field of web-based software. It brings in $6798 million dollars more than Trivago. It employs 19,466 people more than Trivago.
The recovery process for the travel industry will be complicated but let’s see how Trivago faced these challenges and how it will reposition itself for the post-pandemic era.
In the fourth quarter of 2020, Trivago’s earnings and revenue plummeted. It lost €12.3 million in adjusted EBITDA, compared to a profit of $70 million in 2019.
Despite this considerable decline, Trivago saw this as an opportunity to innovate and bring back the old and think about the new customers as well. Instead of promoting the most popular destinations, they started promoting the hidden gems i.e. smaller cities that are not on the top of your list.
The destinations from where you start keeping it shorter or local trip. This is their new product launch i.e. new local trip offerings which are more inspirational compared to their core product which requires you to know where you want to go.
This recent diversification beyond traditional metasearch and new launches will help them target a broader audience and not just the ones looking for hotels at low prices. They are working on the second big release and will be coming up with new product launches.
Final Thoughts
Being one of the world’s most burgeoning hotel search engines, it has made it possible for us to find the best hotel at the best price. The company is focused on reorganizing and streamlining its business in light of the current volatile tourism industry. I must say, Trivago nailed the market demand and came up with a fantastic startup concept that was not just our desire but also the urgent need of the hour.
This was all about Trivago and its business model.
FAQ
Who is the founder of Trivago?
Rolf Schrömgens, Malte Siewert, Peter Vinnemeier, and Stephan Stubner are the founders of Trivago.
Is Trivago an Indian company?
No, Trivago is an German multinational company that specializes in internet-related services and products in the hotel, lodging and metasearch fields.
Who are the competitors of Trivago?
Trivago competitors include Booking.com, Tripadvisor, KAYAK and Expedia Group.
Do you enjoy traveling? Is your top priority safety and sanitation? You’ve found your ideal hotel, but is it out of your budget? In this scenario, you might consider staying in a Dharamshala, but their surroundings aren’t appealing. They do have a lot of rules so you may be wondering if it’s worth it to spend the money.
In light of this predicament, the concept of a “hostel for backpackers” was established. It’s similar to what we have currently in terms of hostels (assuming you are still in college and have come from outstation). There are shared rooms, a common dining room, and a variety of enjoyable activities and games with no or little constraints. In a nutshell, a youthful euphoria has persisted.
Solo travel and backpacking have become popular in this new era. We can now quickly learn about new places and obtain useful information by reading blogs or social media updates.
A startup called Zostel has a similar concept. It is the first hostel chain-based startup in India.
Zostel is like a hostel that provides a home environment with all of the necessary conveniences at an affordable price. Budget travelers, particularly those aged 18 to 40, can find safe, hygienic, and affordable lodging at Zostel.
They have air-conditioned dorms, both mixed and female-only, where rooms may be booked at a competitive price of 500 per night. It has an actual house with beds, a shared space with gaming, a spot for campfires, open mics, and other activities where they may socialize.
Every Zostel is unique since local aspects are taken into consideration when constructing the ideal city-centric Zostel. The founders have considered the importance of safety and comfort while attempting to maintain the vibe joyful and cool. Zostel seeks to deliver great enjoyment to travelers rather than just a place to sleep.
Zostel Hostels, Zostel Homes, Zostel Escape, Trusted by Zostel
Website
zostel.com
Zostel – Latest News
08 March 2021
Zostel, a hostel startup, alleges it has triumphed over OYO, however, the hospitality unicorn has denied such allegations, claiming that indeed Arbitration Tribunal has given Zostel no particular settlement in place of acquiring a stake in OYO.
3 October 2020
Zostel Hospitality Pvt. Ltd, which runs two franchises: Zo Rooms, an affordable hotel business, and Zostel, a travelers’ hostel network, has appealed to its clients to acquire INR 10 crore in fundraising at a pre-money worth of INR 75 crore. The startup has asked its clientele to become angel investors and contribute ranging from INR 5 lakh and INR 1 crore to the Zostel hostel brand.
10 August 2020
Zostel is investing heavily in local tourism, with plans to establish 500 more properties in the next two years. Zostel presently operates 60 hostels and guesthouses across the globe. The firm is soliciting funds from the market for Rs 10 crore.
Zostel – History
Whenever people from engineering and management backgrounds collaborate on any project, it leads to the greatest innovation of all time. Zostel, a hostel for backpackers was a huge success since most of us were waiting for this idea to be explored.
We’ve all seen the film “Queen” and agree that something similar should happen in our country. So, for you adventurous vacationers, Zostel provides the same thrilling experience.
On the occasion of Independence day 2013, Dharamveer Chauhan and his six buddies founded this exciting startup called “Zostel”. Their goal is to assist travelers to enjoy exploring Indian towns. It wasn’t just for backpackers, but also professionals and visitors. Seven pals came up with the idea of combining hostels and today’s Gen Z.
Zostel created homes with facilities and afterward equipped them to offer an atmosphere they have never been a part of with a limited budget of Rs 50 lakhs, participating in several B-school contests, and generating revenue through bootstrapping. Jodhpur developed the 1st Zostel, accompanied by Jaipur.
This company, which began with the hostel concept, is no longer limited to that notion but has evolved into a trailblazing travel solution company. It now operates in 37 cities across India and China, with over 200 hostels.
Zostel – Mission and Vision
The firm was established to encourage people to travel as a part of their lifestyle. They intend to contribute to the promotion of travel by building a reliable, enjoyable image and involving local people in the effort.
They strive for a basic, adaptable hotel and hostel brand with a great understanding of visitors, the latest trends, and the required confidence, that has garnered them an unconventional status in the travel sector.
With a simple approach, they hope to ensure that travelers simply pay for the features that they genuinely require and desire. They provide their clients with budget-friendly lodging in the heart of the city, with a strong emphasis on rates and comfort.
Zostel – Tagline and Logo
Zostel Logo
“Live it Now”, as the tagline suggests, Zostel is for intrepid adventurers. Throughout your stay, you will meet people who have had interesting and intriguing travel experiences.
During your trips, you seek peace. You get everything in one place, including well-furnished dorms, tasty foodstuffs, a private kitchen for cooking enthusiasts, game spaces, WIFI connectivity, and absolute coziness.
Zostel Hostel is the company’s main product. It may be found in most tourist destinations. Initially, the majority of Zostel’s properties were owned by the company. Then it devised a franchising strategy.
Zostel X
It is a service that allows you to stay in a private home. Instead of being in the heart of the city, they are found on the outskirts. It is mostly suitable for groups of visitors or families. It is a privately owned property that is rented out.
Zostel Escape
It was created to provide guests with authentic local services. Only locals provide the services, allowing travelers to go beyond the typical tourist attractions.
Zozo Bus: Zostel provides a Zozo bus service, which allows travelers to travel on a budget. It’s a 12- or 13-seater bus that brings you to pre-determined destinations.
OTA (Trusted by Zostel): As a brand, Zostel has consistently provided excellent service to its visitors, making it a reliable location to stay. Inquiries are coming in from places where Zostel does not have a hostel. In situations like these, Zostel has partnerships with local hostels, allowing it to provide OTA services.
Zo rooms: Zo Rooms is a Zostel subsidiary. Its like OYO, a hotel aggregator.
Zostel – Business Model
You may have heard about Zostel’s services, but its primary business model is franchise-based. Zostel came up with a unique project to assist and inspire imaginative minds who aspire to be entrepreneurs and escape from the chains of mundane existence.
Zostel will guide you in the process of opening your own Zostel at a place of your preference through this project. The choice of location and the ideal property to operate is based on your skills, belief, and viability. Zostel will help you with the setup, branding, marketing, and operations aspects of your franchise.
Based on the value of the building, the location, and your accord with the landlord, your Zostel franchise might cost roughly 30 lakh rupees. It will not be funded by Zostel but the periodic monetary incentive will be provided based on the performance of your Zostel compared to others.
Traveling is a kind of relaxation for all of us. But the fear of staying in filthy rooms makes our trip a bit less fun. Considering that, Zostel wanted to change the way we Indians have traveled and it has made its goal to deliver the best services throughout our staycation. They’ve done so by forming a powerful network of backpackers and entrepreneurs capable of ushering in a change.
In 2019, Zostel offered OTA, which allows them to earn a fee of 10% to 15% on each transaction. Both Zo rooms and Zostel work on a commission basis.
This is usually paid in one single payment after the franchise contract is signed. INR 2,00,000, including taxes, is charged by Zostel. Their commissions and monthly fees begin once the business is fully operational.
Depending on the operational ranking, they charge a flexible fee of 18-24 percent of the lodging income. They also don’t charge fees on meal and refreshment revenues or any other supplementary income of the business.
Royalty Fees
In certain franchises, the franchisor offers a franchisee special power to sell the firm’s merchandise locally in exchange for royalties. These royalties are usually calculated annually or quarterly as a proportion of the franchisee’s gross sales revenue. This recurring fee allows Zostel to offset the expenses of continuous benefits offered to its franchisees while still generating a return from its operations.
Site Assistance Fees
Site assistance fees, also known as a set-up charges, are charged to the franchisee by the franchisor, Zostel, for assistance in locating and establishing a crucial site. They provide some support in venue selection and formation, but the franchisee is normally in charge of the ultimate choice, which is up to the permission of the parent firm. They opt to reimburse these expenses as part of the franchise fee.
Ongoing Services
Zostel offers assistance to its franchisees, such as staffing a service center for scheduling bookings and building and operating an app that can be utilized to improve efficiency at all franchisees. For them, it serves as a supplementary income source.
Marketing
To reach a wider audience and assist each franchisee in becoming more profitable, Zostel invests in domestic or foreign promotional activities. As a result, profitability is increased and more funds are allocated to royalties.
Zostel – Challenges
Controversial journey
When Zostel introduced Zo Rooms, hotel aggregator company OYO rooms filed a lawsuit accusing Zostel of deception i.e. data theft. OYO took the case to court, which was soon resolved.
Following that, OYO rooms were in talks to acquire Zo rooms. OYO spent a long period looking into the documents of Zo rooms for acquisition purposes but ultimately opted not to buy them.
In return, Zo rooms filed a data theft lawsuit against OYO rooms, believing that OYO may utilize their information in the future. This acquisition battle went for 3 years and eventually, Zo rooms claimed victory over that.
Vulnerable industry
Zostel is entirely devoted to tourism. Micro and macro incidents have the greatest impact on the tourism business. Take, for example, the pandemic that wreaked havoc on the tourism economy. As a result, Zostel’s vulnerability will always be a challenge.
The mentality of people
Since Zostel provides cheap accommodation, people might think their services might be poor as well. The traditional concept of hostels being mostly for students hasn’t changed yet so it might take a while for people to get acquainted with this new idea.
Zostel received $1 million in funding in 2014. Recently, funds were raised on 25th July 2018 in a Venture series unknown round. Zostel’s recent investors are Orios Venture Partners and Presha Paragraph.
Date
Stage
Amount
Lead Investor
May 13, 2014
Venture Round
$1M
Presha Pargash
July 25, 2018
Venture Round
Orios Venture Partners
Zostel – What makes it unique?
The services offered by Zostel are similar to those offered by hotels, yet the experience is unique. In hotels, you may not have the opportunity to interact with other visitors, but at Zostel, rooms are shared, so you may connect with your roomies and learn more about their adventure.
The majority of Zostel’s are set up in natural settings. In this sort of environment, tourists feel more at ease and may openly converse.
So, the ultimate goal is to connect more individuals and provide them a memorable experience while staying within their comfort bubble.
Zostel – Competitors
Traditional low-cost hotels have long been a threat to Zostel, but the number of local hostels and homestays is fast growing. In India, there are over ten hostel chains with a national presence, posing a direct threat to Zostel.
The top 2 competitors of Zostel are:
Backpacker Panda
Backpacker Panda is a young, energetic firm with a vision of becoming a data-driven firm and revolutionizing the way Indians travel. The hostel brand has eight zones all over India, and its mantra of hygiene is often kept in mind.
Roadhouse hostel
Ambarish Raghuvanshi established it in November 2014. It operates in India from five different locations.
Final thoughts
In India, Zostel pioneered the backpacker hostel lifestyle. Zostel became a popular alternative for backpackers due to its unique strategy and high-quality services. Zostel’s services and experiences are unrivaled in their magnificent settings. As a result, they are a well-known hostel chain among travelers in India.
FAQ
What is the concept of Zostel?
The concept of a Zostel is that its is a hostel for backpackers. In Zostel there are shared rooms a common dining room, and a variety of enjoyable activities.
Who is the founder of Zostel?
Akhil Malik, Dharmveer Singh Chouhan, Paavan Nanda, Tarun Tiwari, Chetan Singh Chauhan, Siddharth Janghu, Abhishek Bhutra are the founders of Zostel.
Did Oyo acquire Zostel?
No, Oyo was in talks to acquire Zostel but later opted not to acquire them.
What do you think of buying now and paying later? Sounds so fascinating! That’s right, nothing can be compared with the happiness of a shopaholic that comes with this idea of buying now and paying later. Well, this ain’t just an idea anymore!
Buy now, pay later (BNPL) has been a great success ever since its development. As the name implies, BNPL provides the customers with the offer of buying their favorite product now and paying the cost anytime later.
The major reason behind the success of the Buy now, pay later model is its ability to attract a large audience and enhance E-commerce sales. That’s why more and more companies across the world are adopting this remarkable online retail business model.
However, the Buy now, pay later model is kinda similar to credit card payments! There have been many questions raised on its similarities. But the offerings come in the BNPL model, and cannot be found in the credit card payments. In fact, it has raised its average order value by 33% in the retail industry.
In this article, you will be getting a brief description of how this amazing business model works and Why ecommerce companies opting for how it is increasing E-commerce sales. Let’s get started!
Similar to its name, the Buy Now, Pay Later Business Model is pretty simple. The customer purchases any product and instead of paying the whole cost of the product at once, they pay it in the form of installments over a certain period. So, when you don’t have the complete amount of money, you can still buy it and pay the money afterward.
Customers can choose the finance provided by the stores themselves or a third party like PayPal and Klarna Credit. It doesn’t matter which payment method you choose, the pay later service will work tremendously for you.
Through this method, the retailer gets enhanced sales and shifts the product from inventory pretty quickly.
The Buy Now, Pay Later business model is initiating a new line of offerings for the customers to buy any product in installment, just as they used to purchase through the layaway business concept.
The Target Audience of Buy Now, Pay Later
Among the immense number of consumers in the retail industry, Buy Now, Pay Later is used by almost everyone! According to statistics,
33% consumers are in the age group 18-25
40% consumers are in the age group 26-34
62% consumers are in the age group 35-50
16% consumers are in the age group 51-64
By looking at these figures mostly grown-ups and millennials are the regular users of the Buy Now, Pay Later business model. And now, many bigger e-commerce companies have also adapted this business model strategy, and customers’ sales are increasing tremendously.
How does the Buy Now, Pay Later (BPNL) business model work?
Usually, in credit card payments, the consumer contacts the corresponding bank or credit card company. But, In the Buy Now, Pay Later business model, the consumers are directly connected with the merchants.
This payment mechanism was initiated by companies such as Afterpay, Klarna, and Affirm around 5-15 years ago. These companies established an entirely different business model for merchants to increase their customers worldwide.
They used the consumer’s debit card as the payment means for the transaction. This has extensively grown ever since the pandemic happened! During the financial crisis, people could still purchase their essentials and pay the money in installments.
On a general basis Buy Now, Pay Later companies to charge 5-6% of commission from the merchants. The purchasing behavior when compared with the conventional credit card payment methods, demographics are entirely different.
The Buy Now, Pay Later companies earns from the consumers by charging interest on the “loan” amount. Many companies also earn from late fees. Late fees are penal fees charged to users in case of an inability to repay.
Why are E-commerce companies using Buy Now, Pay Later (BPNL) model?
When we look at previous statistics, the Buy now, pay later model is mostly adopted in the retail sector. But with time, this is evolving on a great scale. Many companies, from all service sectors across the world, are adopting this amazing opportunity to attract more customers.
When a company offers installment payment on various products, customers’ purchasing also increases. With this buy now, pay later services, e-commerce companies will offer many more additional services in order to improve their customer’s experiences. This will result in the involvement of higher consumer costs.
As other industries adopted this tremendous business model, healthcare is the last on the list. Even Walnut has also adopted this service in its healthcare sector.
Walnut Website
Furthermore, Buy now, pay later also reduces the financial stress from the company, and customer engagement heightens.
As the E-commerce platforms are growing with an extensive speed. Adding buy now, pay later service into it would take the graph, exponentially.
We have noticed great growth of the buy now, pay later business model. No doubt, it has taken the retail industry to the next level of sales and customer engagement. The buy now, pay later model is more budget-conscious and careful with consumer protection.
This unique business model is likely to grow more vigorously in the upcoming years. With that in mind, we can state that the buy now, pay later model has brought various advantages for industries, especially the retail sector.
FAQ
What are some of the Buy Now, Pay Later companies?
Affirm, Afterpay and Klarna are some of the Buy Now, Pay Later companies.
What is Buy Now, Pay Later business model?
The customer purchases any product and instead of paying the whole cost of the product at once, they pay it in the form of installments over a certain period.
How do Buy Now, Pay Later companies make money?
The Buy Now, Pay Later companies make money by charging merchants a 2% to 3% merchant fee.
What if your personal search on the internet gets leaked? These days, we might not know what could happen next, with one touch of your fingerprints leads to a terrible episode. Hackers are well known about this fact in misleading the given information with just one click on the history of our personal search engine.
For instance, if you’re ferreting, how do you deposit money in the bank? On google, then the next time, you may get an email regarding the question you have searched on Google. Later, the mail asks you to do the Call to Action in the mail, then without any second thoughts, you would go and click for the mail. And next your account in which you are planning to deposit a hefty amount gets hacked.
That’s wherein an internet privacy company- DuckDuckGo on 25th September 2008 with an intention to safeguards your personal information under your control and conditions without any tradeoffs.
DuckDuckGo has developed as an idea for a better search engine that risks its terms to protect your personal information on the internet. In the world, Google tracks down our private stuff, where DuckDuckGo comes in with an audacious move to challenge the hacker by protecting our search history with the help of its own private search engine. Moreover, DuckDuckGo plays as an anonymous website in order to impede user’s private search into the public.
DuckDuckGo commenced its operation in 2008, where its headquarters are located in Paoli, Pennsylvania, United States. The company was founded by Gabriel Weinberg and renders services worldwide.
Main Product and Services of DuckDuckGo
DuckDuckGo has a search engine that bestows utmost service to protect your personal information to an indefinite extent. DuckDuckGo guards the searcher’s privacy without any trade-off and eliminates the filter bubble of personalized search results.
Recently; DuckDuckGo introduced Email Protection, as email plays a vital role in opening a Google account and ultimately shows what stuff you have looked on Google, comes as a suggestion in your email account. This could be done with the help of DuckDuckGo Email protection by hiding your address.
DuckDuckGo plays the protective card in many searchers, without getting into the wrong hands. Their only ultimate aim is to protect the personal information, which has been ferreted by the users generally on the internet. So, DuckDuckGo proposes to earn the trust and confidence of internet users.
Business Model of DuckDuckGo
DuckDuckGo doesn’t store any personal information about people’s search as well as take utmost care in protecting people’s search. The company uses its search engine to create buzz, where your search history relies upon DuckDuckGo.
Besides, DuckDuckGo established an alternative search engine and also generates additional apps to protect your private stuff from Google, Facebook, WhatsApp and other possible tracker apps.
You may wonder, how does DuckDuckGo earn revenue out of this? The answer is Advertisement and anonymous affiliate.
DuckDuckGo sells advertisements directly based on the user’s interest and spurns the method of hyper-targeted advertising systems of Google and Facebook.
On the other hand, DuckDuckGo earns revenue in terms of having an affiliate relationship with other unbeknownst companies to spike their business technology requirements.
DuckDuckGo being a search engine earns its revenue from the number of searches they get on their platform. But the unique feature of its business model mainly focuses on advertising and commission or affiliate programs.
Advertising
DuckDuckGo earns money from advertisements without jeopardizing the privacy of its users by sending advertisements from the keywords typed on the search bar. They do not show targeted advertisements based on search history, web history or interests of a person. The user is also given an option to disable the advertisement showing on the page.
Affiliate Marketing
DuckDuckGo uses affiliate marketing to earn more profits. The company uses Amazon and eBay affiliate programs to earn. When people use DuckDuckGo to go to the Amazon site and buy a product, DuckDuckGo receives an affiliate commission from Amazon.
The Amazon Commission rate ranges from 1-10 per cent based on the product category. The eBay partner program gives 1-6 percent commission to DuckDuckGo on purchase.
The value earned by DuckDuckGo from these revenue forms can’t be calculated or known because the number of people using the search engine isn’t known because of the company’s privacy rules.
Conclusion
DuckDuckGo is considered the best search engine that offers privacy to its users. At times privacy is difficult with the usage of the internet and mobile phones that track our location and activity, DuckDuckGo offers its users a chance at privacy. As of March 2021, the company had 97,653,174 searches on an average daily.
The company doesn’t have stock that is listed, since stockholders would have control over the company and can push to make changes to the belief of the company which is privacy.
The belief of the company that user privacy is the goal of the company has caught the attention of people who are reeling back to gain their privacy and thus making the search engine gain more traction.
FAQ
What is DuckDuckGo?
DuckDuckGo is a company that deals with internet privacy. It is a completely anonymous search engine that provides the same results to all its users since the search results to its users based on their search history, web history or their interests.
Who is the founder and owner of DuckDuckGo?
DuckDuckGo was founded by Gabriel Weinberg in 2008 and the company is headquartered in Paoli, Pennsylvania, United States. Previously, Gabriel Weinberg had launched a social network application which is now defunct, Names Database. He has also drafted a bill called Do-Not-Track Act 2019 for complete privacy protection.
How does DuckDuckGo make money?
DuckDuckGo makes money by using two forms of revenue: Advertising and affiliate marketing. Advertising based on the keywords on the search box and affiliate revenue through Amazon and eBay affiliate programs.
Some people find such a predicament in order to trade their cryptocurrency into various cryptocurrencies such as Bitcoin, Litecoin, NEO, Cardona etc. So, here a cryptocurrency exchange company Binance established a smooth and reliable platform that aids in trading a cryptocurrency into various cryptocurrencies.
Binance was founded by a Chinese-Canadian business executive Changpeng Zhao in 2017. The main purpose of building Binance is to enhance high-frequency trading software. The company holds more than 500 cryptocurrencies trading software and virtual tokens for instance- Ether, Dogecoin, Cardona, Litecoin etc.
Moreover, Binance tolerates exchanging its own Blockchain-based cryptocurrency Binance Coin BNB. Binance provides various services to its users like helping out in making investment decisions, transfer of electronic funds and eligibility to earn interest.
As of now, Binance is currently functioning in more than 180 countries except the United States of America, Italy and the United Kingdom. In the past two years, Binance has been struggling with multiple warnings from various governments regarding its spurious and counterfeit activities in the name of global trading of cryptocurrency.
Financial Conduct Authority banned the world’s biggest crypto exchange company Binance from conducting illegal ‘regulatory activity’ in U.K. as the company didn’t register with the FCA in order to operate their services in the country.
Binance helps in trading, listing, de-listing, fundraising and withdrawal of international cryptocurrencies. Besides, the company also provides services in exchanging its own cryptocurrencies with enormous benefits through initial coin offerings.
Binance allows the trading process with the support of these seven types of trade orders- Limit Order, Market, Trailing stop order, LLimit TP/SL Order (Strategy Order), Stop market order and Stop-limit orders. People can exchange their cryptocurrencies with these trade orders.
Other than the exchange of cryptocurrencies, Binance also generates users to earn interest by funding Stablecoins in the market for an exchange. Besides, interest is estimated on the coin’s tenure, value in the market, interest rates available on such coins.
Binance bestows Visa Card which is a credit card that accesses users to convert their cryptocurrency into fiat current and can spend that liquidity money on products.
Target Audience of Binance
Binance highly targets those investors who are ready to fund a hefty amount of cryptocurrency in the market for the exchange of high-frequency cryptocurrency.
Binance, being the largest and most famous cryptocurrency exchange in the world with its own two forms of cryptocurrencies, has a business model that makes the company a highly profitable enterprise.
The company earns its profit by trading fees, fees from its broker program, interest on loans, stock token spreads, mining services, interchange fees, cloud offerings and profits from investment.
One major source of income for Binance is by charging brokerage fees in Binance Coins (BNB) for every transaction that takes place on the exchanging platform. It also makes capital gains on the coin investments and thus makes the BNB coin price rise.
What is unique about the Business model of Binance
Binance charges a fee for trading cryptocurrency. When a user buys or sells a cryptocurrency, generally Binance charges a 0.1 per cent fee for the trade. But the charge can differ according to the currency and type of exchange.
Investing
In 2018, Binance began investing in other cryptocurrencies and it also distributed ledger technology projects. The company can earn when the investments are sold at a profit and the incoming dividends also serve as a source of income.
Mining Services
In 2020, Binance introduced two mining pools for mining bitcoin and Ethereum. Bitcoin users are charged 2.5 per cent and Ethereum users are charged 0.5 per cent pool fees by Binance.
Spreads
Users of Binance can buy stock tokens from April 2021. Stock tokens are similar to real stock and the value of the underlying shares determine the value of the token. Binance earns through spread from the difference between the buying and selling price even though a fee isn’t charged for buying and selling of tokens.
Interchange Fees
In July 2020, Binance in partnership with Visa launched a Visa debit card. Users need to transfer funds from their cryptocurrency wallet to the spot wallet. Binance charges an Interchange fee when the debit card is used for making a purchase. The fee is paid by the merchant and is less than 1 per cent. Binance also charges a fee for ATM withdrawals and payments up to 0.9 per cent.
Interest On Loans
Binance allows its users to take cryptocurrency loans for a period of 7-180 days by pledging their crypto holdings as collateral. Binance earns by way of Interest on these loans and the interest is calculated based on the amount taken as loan, the time period and the collateral.
Cloud Offerings
Binance Cloud platform allows users to launch digital asset exchanges using their software-as-a-service capabilities. Binance offers other services apart from spot trading like peer-to-peer fiat exchange, etc. Binance charges an annual fee on their cloud products and splits the trading commission with the investors.
Cryptocurrencies are gaining popularity in the present and have become a popular form of investment among many due to their changing value and the transactions being secure while paying using cryptocurrencies online are some of the many factors for the popularity of cryptocurrencies.
Changpeng Zhao has utilised his existing knowledge of cryptocurrency and has made Binance a major player in the cryptocurrency exchange platforms with its unique features and effortless trading.
FAQ
What is Binance?
Binance is the largest online cryptocurrency exchange trading platform founded in 2017. The company was initially based in China and is currently headquartered in Malta due to the increasing regulation of cryptocurrency in China.
Who is the founder and owner of the Binance?
The cryptocurrency exchange platform Binance was founded by Changpeng Zhao in 2017. Previously, he had founded a company in Shanghai that built a high-frequency trading system for stockbrokers, Fusion Systems in 2005.
How much profit has Binance made as of 2020?
Binance is expected earn profit of $800 million to $1 billion in 2020. In 2019, Binance earned a profit of $570 million.
Every business generates services in order to get some sort of revenue. From a small business to a large industry, they all work for a single goal and that is Revenue. Likewise, Gmail also generates its revenue via rendering some services to the uses.
Gmail plays as a business tool in the collection of data as it aids advertisers to ameliorate their ads in an ingenious way to bring quality out of it. Factually, more data engender more income to Gmail. The second way to earn, Gmail campaign personalized ads like contextual inbox ads within Gmail.
Besides, Gmail also makes money out of generating GSuite subscription for businessmen, that helps to allow custom domain emails. People may wonder, how does data represent income to Gmail? When you sign up for Google email services by accrued on all Google’s terms and conditions. Ultimately your data has been stored in the Google Dashboard and those data are required to keep their business running.
Gmail, a Google offered service mainly generates revenue by using its platform for personalized advertising for companies through advertising agencies and it shares user data to provide relevant ads according to the search and likes of the users.
Advertisement contributes to the revenue of the company predominantly. Gmail also earns through GSuite Subscription. It is used by businesses and professional bodies and institutions to create custom domain emails.
Businesses per se seek Gmail as their revenue source, where they pitch their products or brands to audiences. Gmail earns every penny by running personalized ads that emphasize highly user’s interest and track their activity across the web; Therefore, Gmail establishes pertinent advertisements according to the users.
Furthermore, Gmail makes literally 120 million dollars per day from these three activities-
Displaying personalized ads
Share data to deliver relevant ads
Drive businesses to subscribe to GSuite for custom domain
Gmail displays personalized ads
Gmail Advertising
Ever searched for a product that you wanna buy and your Google and Gmail is filled with advertisements related to the product. And Google earns by displaying those targeted ads.
Have you heard of Google Adsense? Google Adsense is a program released by Google in June 2003. It provides publishers with a way to earn money through their online content by matching ads to the site based on the content and visitors. The ads are created and paid for by advertisers who wish to promote their products.
While users sign up in Gmail, they permit Google to use their data. Google uses this data to show targeted ads to its users using Google Adsense. Gmail sends customized ads to the users’ inboxes based on the types of newsletters and emails subscribed by them.
Gmail earns when a user clicks the ad that is being marketed. Advertisement revenue is high due to the large number of users on the platform.
How many of you have clicked the “Agree to terms and conditions” box without reading them while creating your Gmail account? Definitely everyone. What we are essentially allowing is Gmail and by large Google is sharing our data with them. Personal data is the emails you send, the regular emails that you receive from your contacts and includes the people in your contact list too.
By accessing your data, Google can know your preferences and dislikes, send ads accordingly, and gain higher revenue. But Google also gives its users the option to opt-out of such ads and sharing of personal data for targeted ads can be discontinued.
GSuite Subscription
GSuite tools
Gmail earns through GSuite Subscription. GSuite subscription is a subscription plan for companies and professional institutions. Using GSuite Subscription, the company can use larger storage space and have customized email logins. They have access to all office applications. GSuite can be subscribed by making a monthly payment for every user. The standard price is USD 6 per user per month.
Gmail account is mainly created to use any Google services like for installing a game or signing up for YouTube with a Gmail account.
Businesses have been gained much in the field of Gmail, by running personalized ads. Moreover, businesses can track down customer’s interests and work on it, to capture as much as customers to their business by rendering services which is favourable to them.
Low-cost services, as Gmail offers valuable email management features to the users. Business finds Gmail as their source of revenue, as Gmail runs personalized ads to track users.
Gmail is highly integrated within the Google ecosystem, and there will be no delude activity
Cons:
While Gmail underscores highly on data collection, repercussion concerns on data monopoly and data privacy. Hackers may penetrate crucial data as leads to leakage of data privacy.
Zoho mail has offered multiply features such as bestowing lower-cost custom domains to businesses and competing with Gmail.
Conclusion
In the present world, everything runs on technology: virtual education, work from home, etc. making Gmail an integral part of our lives. Basically, all forms for all purposes ask for a Gmail address which shows the extensive use of Gmail and its large number of users.
With the Covid pandemic, Gmail saw an increase in users and increasing use of Gmail by people that in 2020 Gmail had two major blackouts globally. Many Companies, Corporations and educational institutions had purchased GSuite to continue the work and education remotely during the pandemic making Google earn a large revenue. Thus making Gmail an essential part of the lives of people.
FAQ
What is Gmail?
Gmail is a free email service provided by Google that generates revenue by displaying personalized ads to its users.
How does Gmail generate revenue?
The two major ways Gmail generates revenue is by displaying personalized ads to its users and through GSuite Subscription.
Is Gmail profitable?
Yes, Gmail is the number one email service provider and has over a billion users across the globe. It has become one of the profitable businesses for Google.
During our college days, we always came up with some great business ideas. But, who chases the dreams of engineering life? Well, it might sound surprising but two people made their college dream startup true! It’s Siddharth Munot and Prabhkiran Singh, two IITians. These two knew what they wanted and worked on it with all they had.
Siddharth Munot and Prabhkiran Singh founded an incredible E-Commerce startup, named Bewakoof in 2012. They both were from the Civil sector in IIT Bombay. They always wanted to pursue a distinct career. They worked on this plan after graduating from college and put all their efforts in one direction. And that’s where Bewakoof was started!
Bewakoof started with an investment of just Rs. 30,000. But the company came out to be splendid and soon, it gained huge success accordingly. As of 2019-20, Bewakoof made an annual turnover worth Rs. 210 crore.
Earlier in 2019, the company raised funding of Rs. 70 crore from the global alternative asset manager Investcorp. The company was launched in April 2012. Bewakoof established a strong and enormous connection with its customers which brought great outcomes for the company.
In this article, we will be discussing the incredibly formed business model of Bewakoof along with its business strategies. Let’s get started!
Bewakoof, founded in 2012 by Prabhkiran Singh and Siddharth Munot, is a lifestyle fashion brand that manufacturers very creative and distinct fashion accessories and clothes, following the trends.
The company is based on the principle of producing an impact on people through honesty, innovation, and compassion. Bewakoof is an immense team of 400 people who collectively sold around 5.1 million products from the website.
Bewakoof keeps its product range up-to-date, as around 1 lakh products are sold every month. The company eliminates the middleman and manufactures its products itself.
Bewakoof is the only Indian brand that customized western clothes with India-inspired slags and printed the regional languages such as Marathi, Hindi, Bengali, and others. With digitalization, has grown enormously and brought great deals for the company.
Where does Bewakoof operate?
The very prominent fashion E-commerce brand, Bewakoof is headquartered in Mumbai, Maharashtra, India. As being an E-commerce platform, the company delivers its products in every corner of India through logistics services.
Key Products and Services of Bewakoof
Bewakoof offers tons of customer-based services through its E-commerce platform. The customers get complete access to all the products available on the Bewakoof.com website.
The company manufactures various Men’s and Women’s clothing including T-shirts, Accessories, Mobile Covers, and many more, at very affordable prices.
Target Audience of Bewakoof
Bewakoof is majorly focused on the person who belongs to the age group of 16-24 years old. The company targets students, professionals, entrepreneurs, and others who are counted in financially stable environments.
Business Model of Bewakoof
The business model of Bewakoof is utterly evolved. The company keeps up the tune with all the important aspects of business, from designing to warehousing. Brand marketing exists entirely through digital platforms whereas the end-to-end productions are held in-house.
Bewakoof promotes its products from two major platforms: Justdial and Facebook. The company also organizes extensive college campaigns which allow students to do Bewakoofy (stupidity) around the campus and they get free t-shirts as rewards from the company.
Bewakoof keeps up with the trends and follows them through their products. They print famous slags and punchlines on their t-shirts to follow social media trends.
Bewakoof is widely famous among the youth. As social media brings out enormous customer engagement to their website. In fact, Bewakoof has over a 1.5 million customers base, and the company keeps up with them to gather more ideas and concepts for their products.
How does Bewakoof make money?
Bewakoof has an estimated annual turnover of $71.8 million every year. The company ties-up with top E-commerce companies to its products by selling them on the company’s website. It has tied up with Snapdeal, Seventymm, and Indiatimes Shopping.
The company gets a 27% revenue growth from various operations that are enhanced from Rs. 164.22 crore (FY19) to Rs. 208.33 crore by FY2020.
Bewakoof generates its revenue from various customer deals and operations. The company’s estimated revenue value per employee is worth $228.000. It collaborates with various brands and gets the profit percentage in hand.
As of FY19, Bewakoof’s operating revenue varied from Rs. 100 crores to Rs. 500 crores. Alongside, the company’s EBITDA increases with a percent rate of 65.75. Bewakoof has grown immensely over the past few years. And with its business model, there’s a lot on-road as well.
Conclusion
Bewakoof is a very strategic and promising lifestyle fashion brand that ought to be one of the finest. The company has a huge fan base which brings out absolutely tremendous revenue results. The company works on the principle of honesty and thoughtfulness. It works towards minimizing the environmental imprints and enhancing the social impact. Bewakoof has had a long journey since its launch and with such speed, the company is estimated to grow even wider.
FAQ
Who is the CEO of Bewakoof?
Prabhkiran Singh is the co-founder and CEO of Bewakoof.
When was Bewakoof founded?
Bewakoof was founded by Prabhkiran Singh and Siddharth Muno in 2012.
What is the revenue of Bewakoof?
The revenue of Bewakoof is INR 208.33 crore as of 2020.
Waking up late in the morning and rushing to your office by holding a sandwich in one hand and bag vase in the other- just to catch the cab or drive yourself. Nevertheless, you will be in a fix and end up with a chastise from your boss!.
Just imagine, Pulling yourself up at 9 in the morning and being late for work. What will you do at that time?. That’s why Shuttl has been launched for those professional workers to travel conveniently to the office and start a tranquil day.
The Shuttl is an office commute travel bus aggregator mobile app, which runs in six major cities in India. In 2015, two IITans Amit Singh and Deepanshu Malviya joined together and founded Shuttl, an intra-city bus fleet.
The company opened their Series C funding, where Amazon, Dentsu, Trifecta, SIG, Lightspeed or Times Internet etc have invested a hefty amount in dilating the company.
Moreover, Shuttl facilitates real-time supervision by tracking down the progress of the destination, managing intelligent routing and automated data management. To sum up, Shuttl is a stress-free commute to work, where you have to mention the place you work and set the time to pick you up from your home. Later track your ride on the automated data management to eschew any risk.
Shuttl commenced its first commuter service in Delhi NCR and later expanded in Kolkata, Pune, Mumbai, Hyderabad and Chennai. The company is operating over 350 routes and 2000 buses in six cities. Notable; Shuttl became favourable at the start of its technology centre in Chennai as the city is still dealing with poor road infrastructure which engendered high traffic alert.
So, Shuttl optimised the challenge and ran successfully in Chennai. Furthermore, Shuttl is planning for another launch of its service in Bangalore.
However, Shuttl became undermined in recent times due to the ongoing pandemic and paused function in some cities.
Main products and services of Shuttl
Shuttl functions as an intra-city bus commuter for professional works, to secure convenient and reliable journeys every day. The company began this transportation service in order to shun air pollution and traffic, as people who are going to their workplace, largely opt for individual cars or drive themselves.
Shuttl helps you to access the app at your fingertips that benefit you with guaranteed seat optimization, Contactless booking and payments at a reasonable cost.
Besides, Shuttl works as an urban transportation service by commuting the customers at the time, they have mentioned to pick on the required destination and later drop at their home safe and sound.
Target audience of Shuttl
Shuttl developed as a mass transportation service for a tranquil journey for those professional workers, who are running late for work.
Shuttl is designed as a tech-enabled mobility service that commutes customers from the pick-up point to the place they are working. For instance, You are super late for a meeting which is scheduled at 9 in the morning, but it’s already thirty past eight and there is no hope for any rental cab.
Subsequently, Amit Singh and Deepanshu Malviya launched an easy-mobility urban commuter bus service, which rides you from home to the workplace, right on time.
Additionally, the Shuttl app provides stupendous features to the clients, by tracking down the ride on the dashboard, seat optimisation, contactless payment and booking. The company solicits an affordable price for the service and operates only in eight cities- Kolkata, Pune, Mumbai, Hyderabad and Chennai.
Shuttl’s business model makes the company a huge success. The unique features of the business model followed by the company are:
GPS tracking
The Shuttl app has a GPS tracking feature to allow the commuters to know exactly where the bus is and where and when the commuters have to board it to reach their destination.
Face-recognition Check-in
The bus is equipped with a Face-recognition screen that identifies the bus operator and shows the driver ID as only authorised drivers are allowed and also identifies commuters to have a check if they are validated and genuine to board the bus.
CCTV
Shuttl SAFE buses are furnished with Live CCTV coverage to protect the commuters and check if they are in any form of danger. Both the app and the bus have panic and SOS buttons for emergency rescue if the commuter is in danger.
Alcohol Detection
The bus has an alcohol detection setup that is linked with the ignition button to check if the driver is drunk or not and to protect the commuters from incidences of drunk driving. In this setup, the driver isn’t required to breathe into the device.
Call Back
The company provides another feature called Homecheck which is a callback option to check if the commuter has reached his/her home or destination safely.
How does Shuttl make money
How does a commuter bus operator earn their income? Yes, the fare paid by the commuters using the bus to commute from one place to another. But how does Shuttl earn maximum revenue from just the fare? Shuttl doesn’t own buses but rather enters into contract agreements with bus operators to use their buses and their crew including drivers and conductors for a fixed monthly payment.
Then, these buses are used under the company name and the fare for the ride is collected from their customers and are used to pay for extra expenses like fuel, salary, agreed on an amount to the bus operators, etc. Thus the company makes its profit effectively and efficiently.
Conclusion
It is proven in the past by many successful companies and their founders how the identification of a problem faced by the general public and creating a solution to it can make a business highly profitable and successful but if that solution is eco-friendly and protects the environment what’s not there to love about it.
Shuttl not only helps people have an economically viable means of transportation that is relaxed without the tension of travelling in an unhygienic over-crowded bus but in the process reduces people’s need to use their vehicle and thus reducing traffic, pollution and reducing the usage of fuel by the general public.
Shuttl is a much-needed alternative to commute for office-goers that is beneficial for both the environment and the people.
FAQ
What is Shuttl?
Shuttl is a Gurgaon based company founded in April 2015 that provides office commute service and is India’s largest mobile app that offers this service.
What is the source of revenue for Shuttl?
Shuttl earns its revenue by way of fare collected from their commuters. Shuttl earned a revenue of INR 142 Crore in the financial year 2020 and the company was fulfilling 60000 rides by employing 1200 buses.
Who is the founder of Shuttl?
Shuttl was founded in April 2015 by IIT alumni Amit Singh and Deepanshu Malviya.
Sushree Sangeeta Behera
