StartupTalky

Tag: Business Operations

  • leap.club Shuts Down Amid Funding Crunch and Retention Woes

    The women-only community business leap.club is shutting down its operations after raising $2.3 million since its founding in 2020 because of expensive customer acquisition costs and retention issues.

    The startup used LinkedIn and Instagram to publicise the decision operations. The firm claimed to have done a lot of things correctly in terms of atmosphere, space, member experience, and event planning, but the unpleasant reality is that the acquisition and retention metrics weren’t strong.

     Leap.club announced that it will close its offline club in Bandra, Mumbai, which it opened last year, as part of the decision. Additionally, it plans to shut down its app and online community by the end of this month.

    The business went on to say that it had to make the difficult choice to put the app and online community on hold by the end of May.

    Climbing the Success Ladder

    Leap.club entered an expansion phase in 2024 after experiencing rapid growth in 2023. In the same year, it moved its headquarters from Gurugram to Mumbai and opened its first actual community workspace in the nation’s financial centre.

    Mumbai’s offline workspace included meeting spaces, workstations, and carefully chosen experiences. Remarkably, leap.club also sought to establish a real workspace of this kind in Bengaluru.

    According to the startup’s “2024 wrap” blog, it staged over 50 social and professional events and onboarded 450 paying members for its Mumbai club. But there were issues with the expansion as well.

    The firm claimed to have closed a capital round during the year, but it abruptly collapsed and never came to fruition. According to leap.club, the company is surviving some difficult times and is working as a team of ten people.

     It’s challenging, but it’s also an opportunity for the brand to concentrate on what really counts and work harder to recover.

    The Downfall

    The startup’s journey appears to have ended abruptly due to a lack of finance and an uncertain business plan. When the firm first started out, it used a call-based sales technique, onboarding users by speaking with them on the phone.

    The first 10,000 members were onboarded in 2.5 years; however, this methodology limited the startup’s options for scalability and caused “team fatigue”.

    Leap.club shifted all of its membership buys online in 2023. But this led to a short-term revenue shortage. The startup’s financials also showed the difficulties with its business plan.

     According to Tofler, their net loss increased from INR 3.38 Cr in the previous fiscal year to INR 5.59 Cr in the fiscal year that ended in March 2024 (FY24), a 65% increase. In addition, its sales fell 54.1% from INR 5.7 Cr in FY23 to INR 3.7 Cr in the reviewed year.

  • Zaggle and Google Collaborate to Enhance Business Operations

    Through its Indian distributor, Redington (India) Limited, SaaS fintech giant Zaggle has teamed up with Google to launch a scheme that would increase business productivity while giving staff members access to high-end technology through structured lease alternatives. By integrating with Zaggle’s employee benefits plan, this application, Smart Employee Purchase (EPP+), will assist companies in cost management and enhancing employee engagement. In terms of business optimisation, companies can maximise cash flow by using structured leasing models to take advantage of tax benefits and lease payments that are predictable. In addition, risks will be reduced with the aid of enterprise-grade security, frequent upgrades, and full lifecycle management. Additionally, companies will be able to purchase and manage devices’ lifecycles with a single provider.

    With the five-year deal, Redington will act as a middleman between Google and Zaggle in a domestic relationship. The business affirmed that there are no related party transactions involved in the agreement and that Redington is not of interest to promoters or promoter group entities.

    How Collaboration can Benefit Employees?

    Employee benefits include discounted access to Google Pixel devices, which come with theft and ADLD (Accidental Damage and Liquid Damage) coverage. Compared to market prices, workers in higher tax groups could save up to 35%. The concept promises to improve financial planning by lowering the total cost of ownership and providing tax savings through salary packaging. According to Godkhindi, managing director and CEO of Zaggle, the company is providing organisations with a complete device management solution that combines cost-effectiveness, security, and easy administration through the Smart Employee Purchase (EPP+) program. This program gives businesses the ability to make investments in their employees, increasing employee satisfaction and engagement while making sure they are prepared for the future.

    Recent Developments at Zaggle

    Raj Narayanam founded Zaggle in 2011, and the company now offers businesses solutions for payments, costs, and corporate employee perks. It provides a variety of SaaS tools, including Zaggle Propel for employee incentives and rewards, Zaggle EMS for cost management, and Zaggle Save for managing expenses and rewards. The company claimed to have over 3,300 clients at the end of Q3 FY25, including BigBasket, Mumbai Metro One, Zomato’s Blinkit, and HT Media. The board recently approved the SaaS giant’s all-cash acquisition of a 16.67% share in Mobileware Technologies Private Limited, a supplier of digital payments services. In addition, Zaggle’s third-quarter (Q3) financial results for the fiscal year 2024–2025 (FY25) showed excellent financial performance. For the quarter in question, its consolidated profit increased 30% year over year (YoY) to INR 19.74 Cr. Similarly, in Q3 FY25, operating revenue jumped 69% YoY to INR 336.89 Cr.

    ‘Made-in-India’ Chip Set for Launch by Sep/Oct: Vaishnaw
    Union Minister Ashwini Vaishnaw announces that India’s first indigenous semiconductor chip will be introduced by September-October, marking a major tech milestone.
    StartupTalkyNitin Konde