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  • The IPL Money Game: How Did the IPL Become One of the Richest Sports Leagues in the World?

    This domestic cricket league was founded in 2008 as an audacious idea combining Bollywood glamour, auction drama, and T20 fireworks. Today, the Indian Premier League (IPL) is more than just a cricket tournament; it’s a commercial juggernaut and one of the wealthiest leagues in the world. With franchise valuations skyrocketing, record-breaking media rights, and a loyal fan base that spans continents, the IPL has transcended sports. It’s a brand, an emotion, and most importantly, a money-minting machine.

    In 2025, the league’s valuation crossed $16.4 billion (approximately INR 1,34,858 crore) in 2024, as reported by American investment bank Houlihan Lokey, marking a 6.5% increase from the previous year, despite global economic slowdowns. What’s driving this relentless rise? How did IPL, within just 17 years, carve a space alongside elite leagues like the NFL, NBA, and Premier League?

    Let’s break down the biggest reasons that transformed IPL from a cricketing experiment into a multi-billion-dollar powerhouse.

    The Business of IPL: How a Cricket League Turned Into a Goldmine?

    The Business of IPL: How a Cricket League Turned Into a Goldmine?

    The IPL’s explosive commercial growth is not just a stroke of luck. It’s the result of innovative business strategies, digital disruption, and a keen understanding of what fans want: all packed into a tight, high-stakes sporting format. The unbeatable strategy that turned the IPL into a money-making machine is mentioned below:

    Media Rights: The Real Jackpot

    The IPL’s most significant revenue stream is its broadcasting rights. In 2022, the BCCI signed a 5-year media rights deal worth a record-breaking INR 48,390 crore (~$6.2 billion) for the 2023–2027 cycle.

    Why does it matter?

    Every IPL match now generates INR 118.02 crore ($14 million), making it the second most valuable sports property globally on a per-match basis only behind the NFL.

    Breakdown of the 2022 Deal:

    • Disney Star secured TV rights: INR 23,575 crore
    • Viacom18 secured digital streaming: INR 20,500 crore

    This deal completely changed the commercial landscape of Indian cricket.

    Franchises Now Worth Billions

    IPL teams are no longer just sports teams; they’re full-blown business assets. In 2023, Chennai Super Kings saw an increase of 80% and are worth $15.4 billion. Whereas the Mumbai Indians under Rohit Sharma’s leadership, the team’s brand value in 2023 is at $190 million, up by 34.8% from $141 million last year.

    What’s driving team value?

    • Stable Revenues from Media Rights Share: The IPL’s media rights deal for the 2023–2027 cycle, valued at INR 48,390 crore (~$6.2 billion), has provided franchises with a substantial and consistent revenue stream. This stable financial backing is one of the primary factors fueling the growth in team valuations.
    • Massive Fan Loyalty and Brand Partnerships: The IPL’s franchises benefit from extremely loyal fan bases and strategic brand partnerships. The combination of these factors contributes to strong commercial appeal, not just locally, but globally, driving up the valuation of teams.

    Top 10 Richest Leagues in the World | Biggest Sports Leagues
    Discover the top 10 richest and biggest sports leagues in the world, ranked by revenue and global influence. Explore how these top sports leagues generate billions, driving the world of sports with unmatched excitement and financial power.
    StartupTalkyRishi Mundra

    Big Brands Love IPL Sponsorship

    IPL’s popularity means brands are willing to spend big bucks for visibility. In 2024, TATA Group renewed its title sponsorship deal at INR 2,500 crore for 5 years, the biggest title sponsorship ever in IPL history.

    Why brands invest?

    • Massive reach: 600M+ total viewers
    • Cross-platform visibility (TV + digital)
    • Audience: Urban + rural, Gen Z + families

    Alongside TATA, brands like Dream11, JioCinema, Swiggy Instamart, and CEAT continue to spend crores for spot ads, team sponsorships, and digital campaigns.

    Dream11’s Digital Campaign

    All Sponsors of Indian Premier League 2025 | Official Partners & Brand Collaborations
    Discover the official sponsors and brand collaborations of the Indian Premier League (IPL) 2025. Explore how leading companies are partnering with IPL teams to enhance the cricketing experience and boost their brand visibility.
    StartupTalkyVivek Dev Jacob

    Free Streaming Boosted Viewership

    In a landmark move that redefined digital sports broadcasting in India, Viacom18 streamed IPL 2023 and 2024 for free in HD on JioCinema. This bold decision removed the traditional paywall and democratized access to premium cricket content, especially benefiting audiences in Tier 2 and Tier 3 towns, where OTT subscriptions are less common due to affordability barriers.

    Key Impacts

    • Massive Digital Reach: IPL 2023 witnessed over 44.9 crore viewers tuning in digitally via JioCinema, making it the most-watched digital sporting event in Indian history.
    • Record-Breaking Concurrent Viewership: The IPL 2023 final set a new global record with 3.2 crore (32 million) concurrent viewers, the highest ever for a live-streamed event in India, surpassing even global sporting events like the FIFA World Cup or previous ICC tournaments.

    Global Distribution of IPL Matches

    The Indian Premier League (IPL) has established a vast international broadcasting network, ensuring that matches are accessible to fans in over 120 countries. This extensive reach is facilitated through partnerships with major broadcasters across various regions:​

    • United Kingdom: Sky Sports Cricket holds the exclusive rights to broadcast IPL matches in the UK and Ireland, providing comprehensive coverage for cricket enthusiasts in these regions. ​
    • United States & Canada: Willow TV is the primary broadcaster, offering live coverage of IPL matches to audiences in North America. ​
    • Sub-Saharan Africa: SuperSport broadcasts IPL matches across Sub-Saharan Africa, bringing the excitement of the league to a vast audience on the continent.
    • Australia: Fox Sports and Kayo Sports provide live streaming and television coverage of the IPL, catering to Australian cricket fans. 
    • New Zealand: Sky Sport NZ airs IPL matches, ensuring New Zealand viewers can follow the tournament. ​
    • South Asia & MENA: Star Sports and beIN Sports cover the Indian subcontinent and the Middle East and North Africa regions, respectively.

    Additionally, YuppTV streams IPL matches across more than 100 countries, including regions in Europe, Southeast Asia, and South America, making it one of the most expansive OTT providers for the tournament.

    Fees of IPL Title Sponsors Over the Years
    IPL title sponsor fees are crucial for BCCI and the companies involved, impacting revenue with franchises. Here is the IPL title sponsors list.
    StartupTalkyRishi Mundra

    International Expansion of IPL Franchises

    Beyond broadcasting, IPL franchises have actively expanded their presence by acquiring teams in international T20 leagues, thereby extending their brand influence globally:​

    USA’s Major League Cricket (MLC) – United States 

    The inaugural season of MLC in 2023 saw significant involvement from IPL franchises:

    • Mumbai Indians: Established MI New York, bringing their brand to the U.S. cricket scene.​
    • Chennai Super Kings: Partnered to form the Texas Super Kings, based in Dallas.
    • Delhi Capitals: Collaborated with local investors to launch the Seattle Orcas franchise.
    • Kolkata Knight Riders: Took charge of the Los Angeles Knight Riders, expanding their global footprint.

    SA20 – South Africa

    • Mumbai Indians: Own MI Cape Town
    • Chennai Super Kings: Manage the Joburg Super Kings.
    • Delhi Capitals: Operate the Pretoria Capitals
    • Rajasthan Royals: Control the Paarl Royals.
    • Sunrisers Hyderabad: Run the Sunrisers Eastern Cape.
    • Lucknow Super Giants: Oversee Durban’s Super Giants.

    Top 15 Highest Paid Players in IPL History
    IPL is one of the most valuable sports leagues in the world. Let’s find players who have earned the most through IPL since its inception in 2008. Here’s the list of players with the highest earning in IPL history.
    StartupTalkyRishi Mundra

    Next-Gen Tech Keeps Fans Hooked

    The IPL has introduced AR overlays and VR experiences, allowing fans to immerse themselves in match previews and live analyses. These technologies provide interactive visualizations, enabling fans to explore player statistics, pitch conditions, and strategic insights in a more engaging manner. 

    Such innovations have been particularly impactful in Fan Parks across Tier 2 and Tier 3 cities, offering an immersive experience to a broader audience. Moreover, Reliance has conducted brain-mapping studies to understand viewer engagement during IPL matches. These studies revealed that ads streamed during live matches resulted in up to four times better engagement and memorability compared to other platforms.

    Youth-Driven Content and Meme Culture

    The IPL has mastered capturing Gen Z audiences with youth-centric content and meme culture. As a result of strategic use of social media, collaboration with influencers, and short-form content, teams such as Royal Challengers Bengaluru (RCB), Kolkata Knight Riders (KKR), and Rajasthan Royals (RR) have significantly enhanced their level of engagement with fans.

    • Dominance in Short-Form Content: Teams such as RCB, KKR, and RR have excelled in producing short-form content tailored for platforms like Instagram Reels and YouTube Shorts. This approach aligns with Gen Z’s preference for quick, engaging videos, fostering a deeper connection with the teams.

    RR’s YouTube Shorts

    • Meme Marketing and Viral Trends: The IPL’s embrace of meme culture has led to viral moments that resonate with younger audiences. Events such as Rinku Singh’s five consecutive sixes and the Kohli-Gambhir exchange have sparked widespread meme creation and sharing, amplifying the league’s reach beyond traditional cricket fans.​
    • Influencer Collaborations: Collaborations with influencers like Danish Sait, Shubham Gaur, and Taran Singh have enabled teams to produce relatable and entertaining content. These partnerships have been instrumental in engaging fans off the field, particularly among Gen Z demographics.

    RCB’s Collaboration with Danish Sait

    • Second-Screen Engagement: A significant portion of Gen Z fans engage with IPL content through second screens, using social media to interact during live matches. This behaviour underscores the importance of real-time digital engagement strategies to maintain and grow the league’s youthful fan base.

    Boosts India’s Economy

    The Indian Premier League (IPL) has evolved into a significant economic catalyst for India, influencing various sectors beyond cricket. Here’s an overview of its multifaceted economic impact:​

    • Contribution to GDP: According to a KPMG survey commissioned by the BCCI, the IPL 2015 season contributed INR 1,150 crore (approximately $182 million) to India’s GDP. The total economic output associated with IPL matches in India for that season was estimated at INR 2,650 crore (approximately $418 million), encompassing direct, indirect, and induced economic activities.
    • Employment Generation: Each IPL season creates a surge in employment opportunities across various sectors. Over 30,000 temporary jobs emerge in areas such as players, coaches, and support staff.
    • Boost to Tourism and Hospitality: Host cities experience increased tourism during the IPL season, leading to higher occupancy rates in hotels and increased patronage of restaurants and local attractions.
    • Support for Local Vendors and Small Businesses: The IPL season provides a significant boost to local vendors and small businesses. From merchandise sales to food stalls near stadiums, small enterprises benefit from the increased footfall and consumer spending associated with the matches.

    How IPL Teams Earn Money?
    The IPL allows the best cricket players around the world to exhibit their talent. Here’s a learning of how IPL teams make money.
    StartupTalkyPV Vyshnavi

    Conclusion

    What started as a cricket tournament has transformed into a billion-dollar business empire that stretches far beyond the boundaries of sport. From packed stadiums to second-screen streaming, from celebrity ownership to Silicon Valley tech partnerships, the IPL has crafted a strategy for the future of entertainment and commerce.

    FAQs

    What is the IPL and when did it start?

    The Indian Premier League (IPL) is a professional Twenty20 cricket league in India. It was founded by the Board of Control for Cricket in India (BCCI) and the first season was played in 2008.

    Who is the title sponsors for IPL 2025?

    For 2025, Tata is the official title sponsor for the Indian Premier League.

  • Meesho Marketing Strategy: Marketing That Turned Users into Entrepreneurs

    The e-commerce industry has flourished well in recent years. The platforms have been a blessing for the consumers. People are now keener towards online shopping. They get to have a wide variety of discounts and easy exchange and returns.

    Online shopping sites like Amazon, Flipkart, and Myntra are super popular. Now, another platform, Meesho, has entered the market. It is a social e-commerce platform that provides a wide range of products.

    Meesho, apart from selling, allows the customers to resell the products in their social network. In recent times, the platform has become extremely popular. This has been possible because of the eye-catching marketing strategies of Meesho.

    About Meesho – India’s Leading Social E-Commerce Platform
    Foundation of Meesho
    How does Meesho Works?
    Meesho Target Audience
    Meesho Marketing Mix
    Marketing Strategy of Meesho

    Covid-19 Marketing Strategy of Meesho
    Prominent Marketing Campaigns of Meesho

    About Meesho – India’s Leading Social E-Commerce Platform

    Meesho Logo
    Meesho Logo

    The name Meesho is short for ‘Meri e-Shop’. It is India’s first social e-commerce company. It provides a platform for various small businesses to enter and flourish in the online market.

    Meesho allows a person to buy things from the platform. Along with this, it enables a person to resell the products from home. One can trade through their social media networks like WhatsApp or Facebook. The best part here is that a person does not have to bear any extra expense for trading.

    Foundation of Meesho

    Sanjeev Barnwal and Vidit Aatrey
    Sanjeev Barnwal and Vidit Aatrey

    Meesho came into existence in the year 2015. Vidit Aatrey and Sanjeev Barnwal are the co-founders of the company. They were batchmates in IIT Delhi. The headquarters of the company lies in Bengaluru.

    They started the company with the idea of establishing small and medium enterprises online. Their initial idea was quite like Zomato and Blinkit (ex-Grofers). This was to bring the local retailers online.

    Later on, they came up with an extensive idea for the company. It was to enable the people to resell the products using the platform.

    Vidit Aatrey: Biography | Education | Meesho
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    How does Meesho Works?

    Meesho helps people to resell the products with no investment. A person can go to the app and select any product that they like to resell. Then, one can add up their commission on top of the product and shipping charge. With this final price, one can share the products over WhatsApp or Facebook groups.

    If a customer makes an order, then you can place it on the app. Meesho will get the payment, and you will get your cut. In this process, Meesho also takes a fixed percentage of commission from the sellers for itself.

    Meesho Target Audience

    Meesho’s target audience are the everyday Indians looking for value and convenience. This includes price-conscious shoppers from Tier 2, Tier 3, and rural areas who want quality products at affordable prices. Many of them are first-time online buyers, exploring the ease of shopping from their phones. Meesho also empowers small business owners and resellers—especially women—who use the platform to earn by sharing and selling products on social media apps like WhatsApp and Facebook. These users value simplicity, low investment, and the freedom to work from home.

    Meesho Marketing Mix

    The marketing mix of Meesho refers to the 4Ps of marketing: Product, Price, Place, and Promotion. Meesho uses a variety of marketing strategies and tactics to reach its target audience and to promote its products and services:

    Meesho Marketing Mix
    Meesho Marketing Mix

    Product: Meesho has a diverse product line that includes apparel, home and kitchen, technology, and accessories. The company obtains its products from a range of providers and charges reasonable pricing. Meesho also provides a number of unique products that are only available on its marketplace.

    Price: Meesho does not directly set product prices because individual resellers have pricing discretion. Sellers usually determine their own prices, taking into account aspects including cost, competition, and profit margins.
    To attract both merchants and consumers, the portal periodically offers discounts or promotions.

    Place: Meesho is primarily an online marketplace and mobile application that connects vendors and customers across India. Sellers can use the Meesho app to display their products and sell to clients in their immediate vicinity or over larger networks. Meesho covers money processing and logistics, making transactions and deliveries easier.

    Promotion: Meesho uses a variety of promotional channels to reach its target audience and to promote its products and services. The company uses social media marketing, digital marketing, and offline partnerships to reach its target audience. Meesho also runs contests and promotions to generate excitement and buzz around its brand.

    Marketing Strategy of Meesho

    Meesho has more than 11 lakh suppliers. The platform has gained huge popularity. Meesho has become the Unicorn in 2022. This became possible because of its proper planning and insane marketing strategies.

    Here are some of the marketing strategies followed by Meesho:

    Niche Based Strategy

    Meesho Marketing Strategy

    The foremost Meesho marketing strategy is based on a niche to empower women. Meesho aims to build the idea of independence among women. Women who are homemakers and lack financial independence are the most benefited from it.

    Meesho’s strategy was to develop a niche around its company. It is to empower women with business opportunities at home. It enables them to be an entrepreneur without investment and too much hassle.

    This woman-empowering strategy by Meesho gained huge popularity. It created an entrepreneurial hope among homemakers.

    Meesho Business Model | How Does Meesho Make Money
    Meesho is an e-commerce platform for retailers to start their own online stores. Know how Meesho works, including Meesho’s business and revenue model.
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    Social Media Marketing

    The world is digitizing at a rapid rate. People spend a lot of time on their social media. Meesho also engages in social media marketing. Meesho’s promotion strategy focuses on social media marketing, influencer partnerships, referral programs, and regional content.

    Meesho Social Media Marketing
    Meesho Social Media Marketing

    This helps to develop a connection with the audience. It engages in collaborations, campaigns, graphics, and videos to promote its brand. It makes sure to build its online popularity.

    Search Engine Optimization Strategy

    Meesho’s SEO approach focuses on optimizing its website and content for relevant keywords so that it appears high in search results when people search for those phrases. Meesho also employs a range of SEO strategies to increase the authority and ranking of its website in search results.
    Meesho has become the most popular retail business in the country, with over 30.3 million visits each month and an annual revenue of over 200 million dollars. It is ranked 103rd in the country in terms of site visitors and 11th in its domain. It has gradually gained popularity and boosted engagement, with viewers interacting for an average of 3.59 minutes and a bounce rate of 51.69%.

    Target Marketing

    Meesho’s first and foremost marketing approach is to launch a focused campaign for women. Meesho carved out a niche for their company. It strives to empower women by providing them with business opportunities at home. They can establish their own business without spending much money or time. Meesho’s feminist strategy is much admired. Meesho’s target marketing strategy has helped the company reach its target population and develop its business. Meesho is currently one of India’s largest e-commerce enterprises and is well-positioned to expand further in the future.

    Influencer Marketing

    Influencers hold great potential and an audience with them. When a brand gets associated with an influencer, it gains the customers’ trust. Meesho’s marketing strategy is dependent on the influencer program.

    Meesho has also opted for the strategy of influencer marketing. Various influencers like Abhinav Singh, Garima Chaurasia, Khushi Chaudhary, and Anisha Dixit promote Meesho. This helps Meesho gain more audience for the company.

    Meme Marketing

    Memes Posted by RVCJ Collaborating with Meesho
    Memes Posted by RVCJ Collaborating with Meesho

    Meme marketing is the latest trend in the market. Everyone loves to see and share them. So, strategizing a company’s promotion in these memes is a successful marketing technique.

    Meesho’s marketing strategy has taken a plunge into meme marketing. Meesho shares its new offers and discounts in memes. For example- They have used a dialogue from Jab We Met movie to convey its affordable prices. This strategy helps the company to attract more audiences and gain customers.

    YouTube and Facebook Ads

    Advertisements are the best way to market any business. Keeping up with the trend of digital marketing, Meesho uses YouTube and Facebook ads.

    These ads help Meesho to build a strong presence. YouTube has a huge demographic audience. Thus, this strategy helps Meesho get seen by more viewers. Whenever a person clicks on these ads, they are redirected to the company’s site or app. In this way, it helps the company to earn traffic. This strategy has boosted Messho’s marketing.

    Here’s one of the popular ad campaigns – “Sahi Price” by Meesho.

    Other prominent marketing strategies of Meesho are email marketing, television commercials, sponsorships, and SMS marketing to build its brand presence.

    Meesho’s Traffic Sources

    Meesho’s marketing strategy is mainly focused on Direct traffic, which is 52.03% on average. It gets an organic search of 37.71%. Apart from these, it generates traffic of 3.73% from social media, 1.07% from emails, 0.18% from referrals, and 0.09% from the display. The generation of traffic helps them in online marketing.

    Social Media traffic on Meesho:

    Social Media Channels Traffic Distribution
    YouTube 52.70%
    Facebook 32.13%
    Instagram 5.87%
    Whatsapp 5.74%
    Pinterest 1.13%
    Others 2.43%

    Covid-19 Marketing Strategy of Meesho

    Meesho took a high road and gained huge popularity during the pandemic. At a time when people were losing their jobs and looking for business opportunities, Meesho came as a ray of hope.

    It not only provides products at an affordable rate but also helps individuals to resell them. They made campaigns like #MyStoreMyStory. The ad shows how a woman carries many roles in her life for her loved ones. It promotes itself by showing how Meesho helps women earn their entrepreneurial identity with no investment.

    During the pandemic, Meesho, through its marketing strategies, encouraged people to engage in its business opportunities.

    Meesho Products List | List of Items you can Sell on Meesho
    If you are planning to become a Meesho supplier but confused about products to sell on Meesho, here are the products that you can sell on Meesho.
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    Prominent Marketing Campaigns of Meesho

    Arrey Wah!

    Marketing Campaigns of Meesho - Arrey Wah!
    Marketing Campaigns of Meesho – Arrey Wah!

    The “Arrey Wah!” marketing campaign by Meesho emphasizes the value and simplicity of buying on Meesho. The campaign includes a series of advertisements depicting people from many walks of life discovering excellent things at low prices on Meesho.

    The advertisements were frequently amusing and relatable, emphasizing the significance of value and ease in today’s environment. This advertising has been extremely successful in reaching out to Indian customers. The advertisements are relatable and entertaining, emphasizing the significance of value and convenience in today’s environment.

    Meesho Pe Hai Sab Kuch

    Marketing Campaigns of Meesho - Meesho Pe Hai Sab Kuch
    Marketing Campaigns of Meesho – Meesho Pe Hai Sab Kuch

    The “Meesho pe hai sab kuch taaki aap kar payein bahut kuch” campaign seeks to promote Meesho as a one-stop shop for all of your requirements, regardless of price or lifestyle.

    The campaign includes a series of advertisements depicting people from different walks of life using Meesho to achieve their objectives. A young woman in one advertisement uses Meesho to buy a new dress for a job interview.
    Meesho’s price and convenience are also highlighted in the campaign. People are shown saving money on Meesho and obtaining their items fast and simply in the advertisements. Through this campaign, Meesho’s strategy was to increase its traffic and retain its customers.

    #MyStoreMyStory

    Marketing Campaigns of Meesho - #MyStoreMyStory
    Marketing Campaigns of Meesho – #MyStoreMyStory

    Meesho’s #MyStoreMyStory marketing campaign is a social media promotion that highlights Indian women’s business drive. The campaign tells the tales of women who used Meesho to launch their own enterprises and attain financial independence.

    The campaign is founded on the observation that many Indian women want to work and support their families, but they may face obstacles such as a lack of capital, knowledge, and resources. Meesho is a platform that enables women to launch their own businesses with no upfront investment or experience.

    Sahi Sahi customer, Toh Business Ek Number

    Marketing Campaigns of Meesho - Sahi Sahi customer, Toh Business Ek Number
    Marketing Campaigns of Meesho – Sahi Sahi customer, Toh Business Ek Number

    The campaign is built on the realization that customer quality is more essential than customer quantity. The campaign also emphasizes Meesho’s tools and services, which assist sellers in finding the proper clients. The advertisements depict retailers utilizing Meesho’s product recommendations, targeting, and analytics solutions to reach the proper buyers. This campaign shows the creativity of Meeho’s marketing.

    Shopping ki Power

    On July 24, 2024, Meesho unveiled its latest campaign, “Shopping ki Power”, aimed at encouraging first-time online shoppers in India. With the tagline “Shopping ki power lo apne haath mein”, the campaign promotes informed purchasing by showcasing real customer images, reviews, and educating users about Meesho’s easy return and refund policy. Conceptualised by DDB Mudra and Meesho’s creative team, the campaign focuses on building trust and confidence in e-commerce.

    Conclusion

    Meesho is one of the startups that made great progress in less time. In eight years, it has proved to be a great blessing for tier 2 and 3 cities. They have gained a huge customer base from these cities.

    The company has helped various small businesses to establish themselves online. It started from helping the local shops and now has become a social e-commerce platform, helping various individuals. The unique idea and marketing strategies have helped Meesho grow well with further growth potential in its pocket.

    FAQs

    Who is the CEO of Meesho?

    Vidit Aatrey is the co-founder and CEO of Meesho.

    How does Meesho’s marketing strategy work so effectively?

    Meesho’s marketing strategy is particularly effective because it targets its niche audience and reaches them through various channels and tactics.

    How many resellers are on Meesho?

    Meesho has more than 15 million resellers on its platform, of which 15 million are women.

    What is the business model of Meesho?

    Meesho earns from the 10% to 20% commission they charge sellers when they sell a product.

    What is Meesho target audience?

    Meesho targets price-sensitive consumers, mainly from Tier 2, Tier 3, and rural areas of India, who are often first-time online shoppers. It also focuses on small business owners and resellers—especially women—who use the platform to earn by selling products through social media. Meesho appeals to mobile-first users looking for affordable, convenient shopping and earning opportunities.

  • Behind the Scenes: How Swiggy Runs and Earns | Swiggy Business Model | How Does Swiggy Make Money

    The business of restaurants and cafes has taken on a new form thanks to the online meal delivery service. Customers now have access to an enormous array of options in addition to improved connections to regional and global food chains thanks to this system. At the moment, Swiggy and Zomato are the two industry titans; while numerous other businesses attempted their hand at this market, they were unable to compete with these titans. In addition to being the biggest online food ordering and delivery service in India, Swiggy is also the number one unicorn startup in the country. Since its launch in August 2014, it has more than five lakh app installations, partnerships with over 1,50,000 restaurants, and has a strong presence in more than 325 cities across India.

    Swiggy pioneered quick pick-and-drop meal delivery services to ease people’s lives. It provides a single window for placing orders from a wide selection of restaurants and a complete meal ordering and delivery system that links local restaurants with food enthusiasts.

    They have revolutionised and broken all barriers pertaining to food delivery. From a time when we had to travel, order, and wait to get our favourite food parcelled, today we have grown so much through apps like Swiggy to have high favourite delicacies delivered right in front of our doors. This article will look into the business model that has helped Swiggy gain a place in the market.

    Through this article, we will understand the whole ecosystem of Swiggy’s business, right from what business model it follows to how it makes money, we will put a magnifying glass on each of its developments.

    About Swiggy

    The Bangalore-based business Swiggy was founded in 2014 and has already spread to over 100 Indian cities. Swiggy, which was founded by Rahul Jaimini, Nandan Reddy, and Sriharsha Majety, has a vast national business network. As food ordering and delivery giants, they are currently expanding their digital presence by introducing a variety of platforms and expanding their services in response to circumstances such as “when you prefer not to dine out, they bring the restaurant to you.” In the ongoing competition between Swiggy and Zomato, the app’s features are consistently attracting customers to place orders with Swiggy. Customers may keep tabs on their orders, get real-time updates, talk to customer service, pay with cash on delivery, find incredible bargains, and so on. People from the working class and students love Swiggy because they don’t have much time to cook for themselves.

    For example, Swiggy Pop is a 30-35-minute meal delivery service for a single serving. Swiggy offers a variety of products and services to its customers. The Swiggy POP menu offers several dishes such as Asian combos, burgers, bowl meals, biryanis, and Indian thalis. All single-serve meals priced between Rs 99 and Rs 200 will be delivered quickly.

    Swiggy—Delivering happiness at your doorstep!
    Swiggy is a food delivery application. It allows the users to access their application from Android, IOS, and website, to order food from nearby restaurants. Read about Swiggy founders,funding and business model.
    StartupTalkyVidhi Punamiya

    Swiggy Business Model

    While Swiggy’s primary revenue generator is its commission model, the company does have other verticals that contribute to its success. It uses cutting-edge methods and technology to meet the market’s increasing need for foodies. In addition to being a model of efficient and effective customer service, it also follows all the latest trends in the restaurant industry.

    It connects establishments with customers who are looking to eat. It runs well on a dual partnership basis, which is good news for eateries and grocery shops that want to use the platform for food delivery.

    Swiggy’s business model focuses on localized, on-demand meal delivery. In addition to connecting eateries, it coordinates a network of delivery partners to provide customers with their meals whenever they want them (within 30 minutes).

    Similar to Uber, Bundl Technologies Private Limited built this unicorn startup’s business model around a dual partnership arrangement.

    Cooperating Restaurants: Restaurant partners are businesses that have agreed to deliver to Swiggy app and website users.

    Collaboration with Delivery Partners: Individuals in the delivery fleet are in charge of picking up the order from the partner restaurant and delivering it to the final customer.

    Swiggy’s entire business ecosystem runs on commission, delivery charges, subscriptions, restaurants, and cloud kitchens.

    Sriharsha Majety: Visionary Behind Swiggy
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    Business Model Canvas of Swiggy

    Swiggy Business Model Canvas
    Swiggy Business Model Canvas

    Let’s understand the Business Model of Swiggy in detail:

    Key Partners of Swiggy

    • The major partners that drive Swiggy forward are the restaurants and shops that sign up to have their enterprise enter into food delivery services.
    • Other than eateries, Swiggy also partnered with pharmacies, groceries, et cetera through their platform. Today, Swiggy Mart is a very important part of the company.
    • Recently, they had also partnered with Instagram to allow users to use Instagram’s food order stickers in their stories. These stickers will help the viewers of such stories to order similar things from Swiggy.

    Key Activities of Swiggy

    • The most important activity that Swiggy has to undertake is to acquire customers and manage their orders in real-time. This is accompanied by handling delivery and payment processes simultaneously.
    • Having a very efficient partnership with retail shops, restaurants, and other eateries is an unavoidable part of Swiggy. Swiggy Go fulfills another important activity of pick-up and delivery as well.
    • Having a sound technical system is a very important part of Swiggy since multiple aspects need to be addressed at the same time while an order is being placed.
    • Management of these technical operations, maintaining an efficient IT infrastructure, and proper updation of the system are other important activities of Swiggy.

    Key Resources of Swiggy

    • The key resources of Swiggy are the local partners like Keventers, Yogidthaan, and Biriyani Blues tea, which are bestsellers in the cities.
    • Delivery providers and technology providers are other key resources of Swiggy, which have played a very significant role in strengthening its system.
    • The resources of Swiggy are expanding as it continues to reach out to more places and more untapped markets.

    Value Proposition of Swiggy

    • Swiggy’s policy of no restriction is one of the main value propositions of the firm.
    • It also has a very robust online payment system, which has made the entire food ordering journey easier for the customers.
    • The no minimum order policy has also helped in reaching up to 14 million orders per month, while many orders amounted to less than a hundred rupees.
    • The Swiggy app’s other main value proposition is that it has given its platform to restaurants and stores to use.
    • It has helped both Swiggy and its partners to save more than 30% of their operational costs.
    • Recently, they also launched Swiggy Go, wherein they offer instant pick-up and drop services, which can be utilized by customers to send any kind of packages, documents, parcels, or even tiffin.
    • They also have digital wallets by partnering with companies like PhonePe, Paytm, FreeCharge, etc.

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    Customer Relationship of Swiggy

    • Swiggy, being an expanding company, needs to have a very efficient customer relationship to ensure long-term growth. Hence, it has active customer support at the perusal of user.
    • Apart from a 24*7 telephonic system, they also have chat services.
    • Being active on social media, customers can also send messages to Swiggy’s social media pages, where they usually reply promptly.
    • It also allows you to rate the places and food delivered by Swiggy.

    Channels of Swiggy

    • Swiggy can be accessed in multiple ways. Various channels on Swiggy include their mobile apps and websites, which are available on both Android and iOS.
    • Their recent additions to Swiggy Stores and Swiggy Go are the new channels of the firm.

    Customer Segment of Swiggy

    • The people who prefer dining in their own homes but do not want to cook their own food are the main customer segment of Swiggy.
    • From the people who wanted food to be delivered at their doorsteps being principal customers, we can see a shift to the people who not only want food delivered but also things like groceries, gifts, flowers, medicines, etc, coming into the central stage of customer segments.

    Cost Structure of Swiggy

    • Swiggy also has to incur a lot of expenditure daily to ensure the proper functioning of the app and websites.
    • They have to incur the expenses of their employees and delivery partners. This is apart from the 2 or 3% commission that Swiggy gives to restaurants that partner with them.
    • They also have to bear the cost of website and app development, along with maintenance charges.
    • Advertisements, marketing, and administration create huge expenses as well. Swiggy also has to bear the cost of other miscellaneous expenses, including returns and refunds.

    How Swiggy Makes Money | Swiggy Revenue Model

    Swiggy Financials 2024

    Swiggy Financials FY23 FY24
    Operating Revenue INR 8265 crore INR 11247 crore
    Total Expenditure INR 12884 crore INR 13947 crore
    Procurement Costs INR 3381 crore INR 4604 crore
    Employee Benefit Expense INR 2130 crore INR 2012 crore
    Advertising Expense INR 2501 crore INR 1851 crore
    Delivery & Related Charges INR 1694 crore INR 1637 crore
    Net Loss/Profit INR -4179 crore INR -2350 crore
    Swiggy Financials FY24
    Swiggy Financials FY24

    Swiggy reported a 36% rise in operating revenue to INR 11,247 crore in FY24 ahead of its IPO and reduced its losses by 44% to INR 2,350 crore. Swiggy’s total expenses rose from INR 12,884 crore in FY23 to INR 13,947 crore in FY24.

    Swiggy was an early player in the Indian food delivery market because of its innovative business approach, which has allowed it to diversify its revenue streams and become a market leader. Upon analyzing the activities of Swiggy over the years, one can observe that their revenue streams are increasing. This is indicative of the company’s very stable and long-term growth. The pandemic restrictions on dine-in services have further helped Swiggy to get the extra push it needed. Below are the Swiggy revenue streams through which the company earns and runs.

    Delivery Charges

    Since there is no minimum order amount for delivery on Swiggy, the app frequently receives orders below Rs 100. Owing to this, the logistics cost of such orders increases. Therefore, as Swiggy established a dominant position in the market, it began charging delivery fees for small orders, the exact amount of which varied by city. Customers are Swiggy’s primary source of revenue. If a customer’s order total is less than Rs. 250, the business will charge them for delivery. The fee for each order ranges from twenty to forty rupees.

    Commission

    Another significant portion of the income comes from commissions, which Swiggy gets. In exchange for delivering restaurants’ food orders through the Swiggy app and generating sales leads, it receives commissions from such eateries. Every order placed through Swiggy’s site costs a 15% to 25% fee for restaurants. Restaurants receive perks on this account, such as more exposure and, on occasion, a 2% to 3% reduction in commission.

    Swiggy also uses many methods to earn money from advertisements. It displays advertisements for a variety of restaurants on its application and charges a fee to promote them in multiple regions. On top of that, Swiggy charges certain establishments a premium to have their names shown higher on the app’s list of available places to eat. Banner ads and priority restaurant listings were the two main ways that Swiggy began to commercialize its platform. Following in the footsteps of Zomato and Foodpanda, Swiggy has just begun using banner ads. Their website and app feature regionally specific restaurant promotions and listings. The pricing for different regions on the displayed page varies according to the restaurant’s desired level of visibility through the banner ad.

    Swiggy Access

    Just lately, Swiggy debuted Swiggy Access, a facility similar to a central kitchen base that holds the kitchens of several restaurants, including Swiggy’s own labels. Restaurants will be able to set up kitchens in locations even when they’re not physically there, thanks to this cloud kitchen business concept. From its humble beginnings in Bangalore, the chain has grown to include 36 kitchens across 30 locations in Hyderabad, Kolkata, Delhi, and Mumbai.

    Table Reservations

    Swiggy has made partnerships with several high-end restaurants. When customers reserve a table at one of these restaurants, Swiggy charges a commission to the restaurant. Additionally, customers are required to pay a nominal booking fee to Swiggy.

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    Quick Commerce

    Through its Swiggy Instamart app, Swiggy has recently expanded into the online grocery delivery area. The company operates this business through its delivery partners and has established partnerships with numerous grocery retailers. The company retains a commission on each order from the grocery store, while the client is charged with delivery and handling fees.

    Swiggy Super

    A new membership program called Swiggy Super has just been introduced by Swiggy. Swiggy does not impose surge pricing, requiring the consumer to pay a set amount, and offers limitless free delivery on orders above Rs 99. An introductory price of Rs 49 for a one-month membership and Rs 129 for a three-month membership are the two available alternatives, with the former costing Rs 149 and the latter Rs 349.

    Swiggy Go

    Swiggy, a frontrunner in the delivery space, uses “Swiggy Go” as an income generator. With its 2019 launch, it provides clients with an immediate pick-up and drop-off service. The service enables users to select, send, and drop anything from and to numerous locations throughout geographies, and the corporation earns a significant amount from it.

    Financial institutions like ICICI Bank, HSBC, and Citibank are some of Swiggy’s business partners. Affiliate marketing is a relatively new but very effective revenue stream, and it works for everyone involved. The meal delivery giant has gotten an advantage over competing models thanks to its innovative features and outstanding customer service. With its top-notch service, it has expanded its clientele.

    How Does Swiggy Make Money?
    How Does Swiggy Make Money?

    USP of Swiggy

    Delivery in a timely way and the absence of a minimum order requirement are Swiggy’s primary points of differentiation.

    Swiggy SWOT Analysis

    SWOT Analysis of Swiggy
    SWOT Analysis of Swiggy

    Swiggy Strengths

    • The speed of Swiggy’s delivery is one of the reasons for its fame.
    • Swiggy has been an excellent p user-friendly platform for consumers to place orders.
    • The brand’s extensive range and the variety of nearby restaurants are two more of its strengths.

    Swiggy Weaknesses

    • Swiggy will only take orders from establishments that are physically close to the consumer. However, to satisfy their clients, many competitors expand their territory.
    • Customers’ overall bills are increased by Swiggy’s specific packing and delivery expenses.

    Swiggy Opportunities

    • To gain a larger portion of the market, the corporation can rebrand itself more frequently.
    • Additionally, the organization may capitalize on cities in which it does not have a presence.

    Swiggy Threats

    • Zomato, another big player in this industry, is a direct competitor to the corporation. Since Zomato is a major player, it has the potential to offer substantial discounts to clients in the future, drawing them away from Swiggy.
    • People nowadays are more health-conscious than ever before, and as a result, they prefer to cook their meals at home rather than ordering from out.

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    Conclusion

    Swiggy’s growth over time has been phenomenal. It aims to raise more funds to strengthen and expand its services to more places. Despite being a latecomer in the industry, Swiggy was able to gain its deserved position through strategic planning and stable expansion.

    Swiggy is doing a fantastic job of satisfying its consumers’ appetites, and it has complemented this with a well-thought-out business plan. This venture is poised for massive growth in the years to come if it continues at its current rate. Even though it’s in a head-to-head competition with another giant named Zomato, Swiggy has a critical advantage that will determine its fate.

    FAQ

    Who is the founder of Swiggy?

    Swiggy was founded by Nandan Reddy, Sriharsha Majety, Rahul Jaimini in 2014.

    How much Commission does Swiggy charges?

    Swiggy charges 22-25 per cent on order value from their restaurant partners.

    What is the business model of Swiggy?

    Swiggy’s business model is a hyperlocal food delivery platform. It connects customers with nearby restaurants through its app and website, charges restaurants a commission fee on each order, and collects delivery fees from customers. It also earns from ads and subscription plans like Swiggy One.

    What is the revenue model of Swiggy?

    Swiggy’s revenue model is multi-channel. It earns money mainly by charging a commission fee from restaurants on each order placed through its platform. It also collects delivery charges from customers, especially during peak hours or for long distances. Swiggy earns through advertisements by promoting restaurants on its app and website, and from subscription plans like Swiggy One, which offer users free deliveries and other benefits for a fee. Additionally, it has expanded into grocery and quick commerce (Instamart), adding new revenue streams.

    How does Swiggy dineout make money?

    Swiggy Dineout makes money by charging commission fees from partner restaurants for every table booking or dining bill paid through its platform. It also earns through subscription plans like Gourmet Passport, which offer users discounts. Additionally, it generates revenue from promotional listings and ads for restaurants.

  • List of All the Brands Owned by PepsiCo | Pepsico Subsidiaries

    People all around the world know about Pepsi, and its products are enjoyed over one billion times just in every day by its consumers. PepsiCo Inc. is an American multinational company that manufactures, markets, and distributes various snacks, food, and beverages.

    PepsiCo is also known to be one of the largest companies in the world because its products are available throughout 200 countries. The company was first formed in 1965 with the merging of the Pepsi-Cola and the Frito-Lay companies. The company is currently headquartered in Harrison, New York.

    It is also the largest food and beverage business in North America according to its net revenue and the second-largest in the world, only behind Nestle. For the year 2024, PepsiCo’s revenue was $91.85 billion.

    The company offers a wide variety of products such as soft drinks, fruit juices, ready-to-drink tea and coffee, energy/sports drinks, chips, packaged foods, bottled water, etc. The company is now also expanding its categories of products like probiotics, functional beverages, and even cold-pressed juices. Since its inception, Pepsico has acquired many brands. So, here’s a look at all the brands under PepsiCo.

    PepsiCo Beverages North America
    Frito-Lay North America
    Quaker Foods North America
    Pepsico Latin America
    Pepsico Europe
    Pepsico Africa, Middle East, South Asia (AMESA)
    Pepsico Asia Pacific, Australia/New Zealand, China (APAC)

    A Brief History of PepsiCo

    The company had its humble beginnings with a carbonated drink that was made by a pharmacist, Caleb D Bradham, in North Carolina in the 1890s. The company was trademarked in the 1900s and became popular under Pepsi–Cola. However, after 20 years of success, Mr Bradham sold the company after it went bankrupt.

    It wasn’t until the 1930s that it became profitable again because of Loft Inc.’s efforts. At this point, the Pepsi-Cola company expanded with Diet Pepsi and also went on to purchase Mountain Dew in the 1960s.

    PepsiCo Inc. was founded in 1965 when the two big companies which are Pepsi-Cola and Frito-Lay, were merged. The company then went on to acquire Tropicana in 1998 and then Quaker Oats and Gatorade in 2001. Pepsi now has products like Pepsi, Diet Cola, Fritos corn chips, Lays potato chips, Cheetos cheese-flavoured snacks, Ruffles potato chips, and Rold Gold pretzels. But with the addition of Quaker Oats, Gatorade sports drinks were also added to the list, making it a billion-dollar company.

    In 2018, the company acquired SodaStream, a company that makes machines for homemade sparkling water. Its recent acquisitions include Organic and raw trading Co, which is an Australian company, Chi Limited from Nigeria, and Tropic from France. It also acquired Costa, a British Coffee company.

    Now, 70-plus years later, PepsiCo is a conglomerate and a multinational manufacturer and supplier of soft drinks, food items, snacks, and different types of juices. The company distributes its variety of products to more than 200 countries.

    Pepsico Subsidiaries
    Pepsico Products List

    PepsiCo Subsidiaries

    PepsiCo Inc. is best known for its manufacturing, marketing, distribution, and sales of popular beverages, food items, snacks, etc. The company has 23 brands that generate more than $1 billion each according to their retail sales, including popular brands like Frito-Lays, Gatorade, Pepsi-Cola, Quaker, and Tropicana, which provide a wide range of products.

    Three of its beverage companies, Pepsi-Cola, Mountain Dew, and Diet Pepsi, are among the top ten most beloved soft drinks in the American market. The Frito-Lays Company is a global leader as it holds 40% of the market share worldwide and 56% in the US for its snacks.

    Frito-Lay manufactures and sells nine out of ten potato chips, which include Lay’s, Doritos, Tostitos, Ruffles, and Cheetos. Another subsidiary that is a leader in its sector is Tropicana, as it holds 41% of the US orange juice market.

    PepsiCo subsidiaries are divided into seven divisions, which are PepsiCo Beverages North America, Frito-Lay North America, Quaker Foods North America, Latin America, Europe, Africa, the Middle East, and lastly being Asia, Australia/New Zealand, and China.

    Each of these subdivisions has many subsidiaries under it:

    • The Frito Lay North America – This division manufactures, markets, and distributes Lays, Doritos, Cheetos, Tostitos, Fritos, Ruffles, and the Santitas Brands.
    • Quaker Foods North America – It manufactures, markets, and distributes various Cereals, Rice, Pasta, Aunt Jemima, Quaker Chewy, Cap’n Crunch, Life, and Rice and Roni brands.
    • The North American Beverages – North American Beverages manufactures, markets, and distributes syrups, fruit juices, and soft drinks like Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Tropicana juices, and bottled water like Aquafina, Sierra Mist, etc.
    • Latin America – This division manufactures, markets, and distributes beverages, food products, and snacks specific to the South American countries.
    • Europe – The Europe division of PepsiCo manufactures, markets and distributes beverages, food products and snacks specific to Europe and African regions.
    • South Asia and the Middle East, and Africa – This division manufactures, markets, and distributes food products and snacks like Lays, Kurkure, Chipsy, etc.
    • The Asia Pacific, Australia/New Zealand, and China – This of PepsiCo division manufactures, markets, and distributes also offers a variety of snacks and beverages like 7UP, Mirinda, Pepsi, Mountain Dew, Cheetos, Doritos, Lay’s, etc.

    PepsiCo Beverages North America

    PepsiCo Beverages North America is a sector that manufactures, markets, and sells beverages in North America. This division has made many notable innovations, partnerships, and strategic acquisitions. These beverages are not only enjoyed in America but all over the world.

    PepsiCo Beverages North America sells soft drinks, bottled water, ready-to-drink coffees and teas, sports drinks, and juices, through which it tries to satisfy a wide range of customers’ tastes, occasions, and lifestyles, especially in North America.

    PepsiCo subsidiaries include the most popular beverages consumed in America. Some of the most well-known beverage manufacturers under this division are Pepsi, Mountain Dew, Gatorade, 7UP (outside the U.S.), Tropicana Pure Premium orange juice, Sierra Mist, SoBe Lifewater, Tropicana juice drinks, AMP Energy, Naked Juice, Izze, and Aquafina.

    PepsiCo Beverages North America also helps out third-party companies like Starbucks and Unilever in manufacturing, marketing, and selling their ready-to-drink coffees and teas.

    Some of the well-known PepsiCo subsidiaries under PepsiCo Beverages North America are:

    Pepsi

    Pepsi
    Pepsico Subsidiaries – Pepsi

    Pepsi is one of the first drinks the company started selling, which started out as a refreshing and energizing drink. Now it is known to be one of the world’s most popular and consumed soft drinks around the world.

    Gatorade

    Gatorade
    Pepsico Subsidiaries – Gatorade 

    Gatorade is one of the most popular brands under Pepsi, which is known for its signature line of sports drinks and is popular in America. The company is currently the fourth largest brand of PepsiCo and is distributed to over 80 countries. The company was acquired by PepsiCo in 2001 and is now the official drink for the NBA, AVP, PGA, Major League Basketball, and other sports teams and events.

    Mountain Dew

    Mountain Dew
    Pepsico Subsidiaries – Mountain Dew

    Mountain Dew is another soft drink brand that is owned by PepsiCo, the company became its subsidiary in 1964. Today, Mountain Dew is the number one flavoured carbonated soft drink in America. Mountain Dew comes in many flavours and varieties. Mountain Dew is also one of the top soft drinks in the US.

    Naked Juice

    Naked Juice
    Pepsico Subsidiaries – Naked Juice

    Naked Juice is a juice and smoothie producing company that was purchased by PepsiCo in 2007. This acquisition helped in building PepsiCo’s portfolio as it can offer healthy drinks for health-conscious customers by selling nutritional juices and smoothies through Naked Juice.

    Tropicana

    Tropicana
    Pepsico Brands – Tropicana 

    This brand is loved by everyone as it excels in producing orange juice. Tropicana is popular because it provides fresh fruit juices and is not concentrated. PepsiCo acquired the company in 1998 and was one of the main acquisitions for PepsiCo. With Tropicana, PepsiCo could compete with Coca-Cola’s Minute Maid.

    Frito-Lay North America

    Frito-Lay is a main subsidiary of PepsiCo, as it manufactures, markets, and sells a wide variety of snacks, including Corn and potato chips. The company merged with Pepsi-Cola in 1961. Today, the company has 29 snack brands under it with more than 55,000 employees.

    It makes many of the most popular snacks, such as Lay’s potato chips, Doritos tortilla chips, Cheetos cheese-flavoured snacks, Tostitos Chips with their dips, Ruffles Potato chips, Fritos Corn chips, Rose Gold Pretzels, Walkers potato chips, and Santitas tortilla chips, etc. The annual Revenue of Frito-Lay in North America is up to $17.1 billion in 2019.

    Some of the well-known PepsiCo subsidiaries under Frito-Lay North America are:

    Lays

    Lay's
    PepsiCo Brands – Lay’s

    Lay’s is one of the world’s most popular and iconic potato chip brands, and Pepsi products, owned by PepsiCo through Frito-Lay since 1965. Today, there are over 200 different varieties of Lays flavours all over the world. Lay’s potato chips bring in more than $1 billion yearly in retail sales.

    Sabritas

    Sabritas
    PepsiCo Brands – Sabritas 

    Sabritas is the main brand under which PepsiCo manufactures different Frito Lay products and popular snacks for Mexico, such as Crujitos, Poffets, Rancheritos, and Sabritones etc. The company is also known to control about 80% of the Mexican snack market.

    Cheetos

    PepsiCo Brands - Cheetos
    PepsiCo Brands – Cheetos

    Cheetos is a very popular snack not only in America but all over the world. The cheese puff snack was given the rank of the top-selling cheese puff in the primary markets of the United States in 2010. It is also one of the most profitable brands of PepsiCo, as it is sold in more than 36 countries. Its worldwide annual sales record is more than $4 billion. The company has now expanded its product line to more than 21 different flavours in America alone.

    Doritos

    PepsiCo Brands - Doritos
    PepsiCo Brands – Doritos

    Doritos is one of the most recognized tortilla-type chip brands in the world. It became a PepsiCo subsidiary in 1964 and originated from a restaurant at Disneyland. The company has gained a lot of popularity mainly because of its unique marketing campaigns and many ad commercials aired during the Super Bowl.

    Tostitos

    Tostitos
    Tostitos 

    Tostitos is another brand similar to Doritos, as it also produces Tortilla chips that are meant to be eaten with dips, which are also sold by the company. This brand is extremely popular in all North American countries.

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    Quaker Foods North America

    Quaker Oats has always been known for its quality, great taste, and nutrition. The company was merged with PepsiCo in 2001, and since then has been manufacturing, selling, and distributing a variety of healthy products such as cereals, Rice, Pasta, Dairy products, etc.

    One of its most well-known brands is Quaker Oatmeal, Quaker’s granola bars, Cap’n Crunch cereals, Pasta Roni, Quaker grits, etc. The annual revenue of Quaker Oats was $3.7 billion in 2021.

    Some of the well-known subsidiaries under Quaker Foods North America are:

    Cap’n Crunch

    Cap'n Crunch
    Cap’n Crunch

    Cap’n Crunch is an extremely popular Corn and Oat cereal consumed in America, manufactured by the Quaker Oats company. The company became a PepsiCo subsidiary in 2001. Since then, the company has expanded its products by introducing new flavours.

    Life Cereal

    Life Cereal
    Life Cereal

    Another popular oat and soy protein cereal brand is manufactured by Quaker Oats Company, and one of the most profitable subsidiaries of PepsiCo.

    Rice A Roni

    Rice A Roni
    Rice A Roni

    This is a company that makes boxed food in a variety of rice, vermicelli pasta, and seasonings. This company is owned by Quaker Oats and is a popular subsidiary of PepsiCo.

    Quaker’s products

    Quaker
    Quaker

    Quaker’s own product line is very profitable for the Pepsico brand. The company makes a variety of popular American snacks such as Quaker’s natural granola, Quaker’s Oatmeal and instant Oatmeal, Quaker Oat Bran, Quaker grits, Quaker puffed rice, Quaker chewy granola bars, Quaker oatmeal cookies, snack bars, etc.

    Pepsico Latin America

    PepsiCo Latin America Foods is another important division as it manufactures, sells, and distributes many well-known brands whose products are especially famous in Latin American countries. Some of these brands are Doritos, Marias Gamesa, Cheetos, Ruffles, Bacconzitos, ManiMoto, Emperador, Saladitas, Sabritas, Lucky, Elma Chips, Tostitos, and Rosquinhas, and many other products. This division mostly works independently, but also works with other third-party companies.

    Some of the well-known PepsiCo subsidiaries under Pepsico Latin America are:

    Sabritas

    Sabritas is another popular subsidiary of Pepsico from Mexico, which is known for the quality, variety, and authentic flavours of its products. The company was acquired by PepsiCo in 1966. This company works under Frito-Lay and PepsiCo and has its own line of potato chips named Sabritas. It also makes several local brands that are well appreciated, such as Crujitos, Poffets, and Rancheritos. The company is also known to control about 80% of the Mexican snack market.

    Gamesa

    Gamesa is a leader when it comes to the cookie market, as it exports its products to more than 16 countries. This company was acquired by PepsiCo in 1990. And ever since then manufactured a wide variety of products that range from Pastries to Oats and cookies, and cereals. Some of its well-known brands are Emperados, Arcoiris, Mamut, Chokis, and Maizoro.

    Other Regional Brands

    The other lesser-known subsidiaries under PepsiCo’s Latin America Foods division are brands like Natuchips in Venezuela, Colombia, and Ecuador, Tortix in Guatemala, Toddy Cookie from Argentina, and lastly, Toddynho from Brazil, which are local snack brands from different Latin American countries.

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    Pepsico Europe

    The Europe branch of PepsiCo manufactures, markets, sells, and distributes snacks and other food brands or subsidiaries throughout all countries in Europe and South Africa. It also operates independently and third-party companies such as Lay’s, Walkers, Doritos, Cheetos, and Ruffles, including Quaker’s products and popular beverages like Pepsi, 7UP, Diet Pepsi, and Tropicana juices. PepsiCo Europe also manufactures many ready-to-drink teas and coffees because of its joint ventures with Starbucks and Unilever.

    Some of the local specific subsidiaries are Marbo, Smiths, Paw Ridge, Duyvis, Snack a Jacks, Twistos, Lebedyansky, Solinki, and dairy products like Domik v Derevne, Chudo, and Agusha. It operates the subsidiary Matutano in Spain and Portugal and has manufacturing plants in England. The Chief Executive Officer of PepsiCo Europe is Silviu Popovici, and headquartered in Geneva, Switzerland.

    Some of the well-known PepsiCo subsidiaries under Pepsico Europe are:

    Duyvis

    Duyvis
    Duyvis

    This is a Dutch snack-based company that became PepsiCo’s subsidiary in 2006 and is known for its salty snacks, a variety of peanuts with flavours, and nuts, along with its dips.

    Wimm Bill Dann

    Wimm Bill Dann
    Wimm Bill Dann

    This company is known to be one of the largest dairy-producing companies, as it manufactures yoghurt, milk, flavoured milk, fruit juices, and other soft drinks. The company is headquartered in Moscow, Russia, and was acquired by PepsiCo in 2011. It is a leader in the food and beverage market of Russia as it holds a 34% market share in all dairy products in Russia.

    Lebedyansky

    Another Russian company was acquired by PepsiCo in 2008. The company is known for its fruit juice, baby food, vegetable juice, and soft drinks. Lebedyansky is the largest juice manufacturer in Eastern Europe and the sixth-largest in the world.

    Marbo

    Marbo
    Marbo

    This potato chip company is from Serbia and was acquired by PepsiCo in 2008. This company managed to help the locals of Backi Maglic, Serbia, by providing 100 jobs.

    Pepsico Africa, Middle East, South Asia (AMESA)

    PepsiCo’s Asia, Middle East, and Africa manufactures, markets, and sells beverages and snacks to all the countries of Asia, the Middle East, and Africa. It also likes the other make products independently and for third-party companies.

    Some of the popular PepsiCo subsidiaries under Pepsico Africa, Middle East, South Asia (AMESA) are Lay’s, Kurkure, Chipsy, Red Rock Deli, Doritos, Cheetos, Simba, other Quaker’s products, and beverages like Pepsi, Mirinda, Sting, 7UP, Mountain Dew, Aquafina, and Tropicana. The business in these regions accounted for 10% of PepsiCo’s net revenue worldwide. PepsiCo AMESA’s chief executive officer is Eugene Willemen, and is headquartered in Dubai, UAE.

    Kurkure

    Pepsi Brands - Kurkure
    Pepsi Products – Kurkure

    Kurkure is one of the popular products of Pepsi company sold in India. It is a corn puff snack made up of rice, lentils, and corn. Kurkure is an Indian brand from PepsiCo India and is known for its snacks, especially in India and Pakistan.

    Sabra Dipping Company

    Pepsi Brands - Sabra
    Pepsi Products – Sabra 

    Sabra is actually an American company that is known for producing food products that are made in a Middle Eastern style. It makes dips like Hummus and guacamole. All Sabra products are vegetarian.

    Simba

    Pepsi Brands - Simba
    Pepsi Products – Simba

    Simba is a South African snack manufacturer that was acquired by PepsiCo in 1999. It is known for its snacks that are made up of potatoes and maize. This company also holds over 63% of the South African chips market.

    Pioneer Food

    Pepsi Products - Pioneer Food
    Pepsi Products – Pioneer Food 

    Pioneer Food was recently acquired by PepsiCo in 2020. The company is known for its popular snacks like Bokomo Cereals, Spekko, Ceres fruit juice, and Sasko bread. This acquisition helped PepsiCo grow across the entire African continent.

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    Pepsico Asia Pacific, Australia/New Zealand, China (APAC)

    This sector manufactures, markets, and sells beverages and snacks to all the countries of Asia Pacific, Australia/New Zealand, and China. It also likes the other to make products independently, and for third-party companies like Starbucks and Unilever.

    The Smith’s Snack Food Company

    Smith's Snackfood Company
    Smith’s Snackfood Company

    Smith’s Snackfood Company is fully owned by PepsiCo. It makes many popular snacks like Doritos, Burger Rings, Twisties, and Cheetos. The company started in 1920 in Australia, founded by Frack Smith, Jim Viney, and George Ensor. PepsiCo bought the company in 1998 by investing $300 million. Today, Smith’s holds a big share of the snack and drink market in the United Kingdom.

    It also makes similar products such as Cheetos, Doritos, Lays, Smiths, and beverages like Pepsi, 7UP, Aquafina, Mirinda, Mountain Dew, etc. The Chief Executive Officer of the division is Wern-Yuen Tan and is headquartered in Shanghai, China.

    Conclusion

    This completes the list of all the brands owned by PepsiCo. PepsiCo is a conglomerate that manufactures, markets, and distributes snacks, beverages, and other food products that are loved by everyone. Every country definitely has some subsidiaries that belong to the company. There are a lot of PepsiCo products that we probably use in our daily lives. This article will surely help you find out what those are.

    FAQs

    Pepsi company belongs to which country?

    Pepsi is an American food and beverage company founded in 1893.

    How many brands does PepsiCo own?

    PepsiCo owns 23 brands that generate revenue of $1 billion for the company.

    Does Pepsi own Gatorade?

    Gatorade is a popular sport drink brand based in America. Pepsico acquired Gatorade in 2001.

    Who owns Doritos?

    Doritos is an American brand that sells flavoured tortilla chips. Pepsi bought Doritos when it merged with Frito-Lay in 1965.

    Is Dr Pepper a Pepsi product?

    No, Dr Pepper is not a Pepsi product. It is owned by Keurig Dr Pepper in the U.S. However, in some regions, PepsiCo has agreements to distribute Dr Pepper.

    What drinks are Pepsi products?

    Pepsi products include popular drinks like:

    • Pepsi
    • Mountain Dew
    • 7UP (in some countries)
    • Mirinda
    • Slice
    • Tropicana
    • Gatorade
    • Lipton Iced Tea (with Unilever)
    • Aquafina (bottled water)
    • Sting (energy drink)

    These vary by country, but all are PepsiCo beverages.

    Does Pepsi own Lays?

    Yes, PepsiCo owns Lay’s. Lay’s is one of the flagship snack brands under Frito-Lay, a subsidiary of PepsiCo.

    Who owns Pepsi?

    Pepsi is owned by PepsiCo, a multinational food and beverage company based in the United States. PepsiCo is a publicly traded company, so it is owned by shareholders who hold its stock.

  • CRED Marketing Strategy Explained: How CRED Built a Premium Brand in Fintech

    CRED, founded in 2018 by Kunal Shah, is a fintech startup that has revolutionized credit card payments in India. Operating in the personal finance world, CRED has been growing like wildfire, with a monthly active user base of approximately 13 million. 

    So, what’s its secret sauce? 

    It’s all about making bill-paying feel exclusive and, dare we say, fun. From quirky ads that’ll make you chuckle to teaming up with big-name brands, CRED’s marketing game is strong. Stick around as we unpack how this company’s unique approach is shaking things up in the crowded fintech scene.

    CRED – Target Audience
    CRED – Marketing Mix
    Unique Marketing Strategies of CRED
    CRED – Marketing Campaigns
    CRED – The Road Ahead

    CRED – Target Audience

    CRED’s target audience primarily consists of affluent, creditworthy individuals in India. Specifically, CRED focuses on people with high credit scores, typically those with scores above 750. These are often urban professionals, high-income earners, and financially savvy individuals looking for exclusive benefits and a premium experience managing their credit card payments and personal finances.

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    CRED – Marketing Mix

    CRED Marketing Mix
    CRED Marketing Mix

    CRED has disrupted India’s credit card payment landscape with its unique approach to the marketing mix and made a name for itself among credit-savvy urban Indians. It’s done this by mixing a few key ingredients: coming up with innovative products, pricing them cleverly, making everything easily accessible online, and promoting to just the right audience. It’s all added up to position them as a go-to premium brand in the market. Let’s delve into the key components of CRED’s marketing strategy.

    Product

    At its core, CRED’s product is a mobile application that revolutionizes credit card payments by gamifying the experience. The app offers not just bill payment services, but also rewards for timely payments, exclusive deals, credit score monitoring, and additional financial services like rent payments and personal loans.

    Price

    CRED uses a freemium model. The basic app is free to use, which lowers the entry barrier for potential users. The startup generates revenue via commissions from partner brands, fees from financial products, and a premium subscription tier. This model allows CRED to offer high perceived value to users while maintaining a steady income stream.

    Place

    CRED’s place strategy is predominantly digital, with the app available on major mobile platforms and the web. Interestingly, CRED creates exclusivity by limiting access to users with credit scores above 750, focusing primarily on affluent, urban customers in India’s major cities. 

    Promotion

    The promotion strategy is where CRED truly shines. The company runs humorous advertising campaigns that feature celebrities, sponsors major events like the IPL cricket tournament, and partners with influencers. 

    Referral programs, content marketing, and exclusive member events further drive engagement and acquisition. This approach helps create buzz, reinforces the brand’s premium positioning, and fosters a sense of community among users.

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    Unique Marketing Strategies of CRED

    CRED’s distinctive marketing strategies have helped it stand out in a competitive market.

    Exclusive membership

    CRED positions itself as an exclusive club for individuals with high credit scores – it typically requires a credit score of 750 or above for membership. This creates a sense of prestige and aspiration.The brand started out as this super exclusive club where you needed an invite just to join. Pretty fancy, right? But it didn’t stop there. It’s now rolled out something called “CRED Select” for the crème de la crème members. It’s like VIP treatment for the VIPs, offering extra perks and goodies. So even within this already exclusive group, there’s now a special inner circle. Talk about taking exclusivity to the next level!

    Quirky, high-production value advertisements 

    CRED’s ads often feature celebrity cameos and absurdist humor, making them highly memorable and shareable. 

    One of CRED’s most notable and widely discussed advertising campaigns was the “CRED: Great for the Good” series launched during the Indian Premier League (IPL) cricket season in 2020. The ad features legendary Indian cricketer, Rahul Dravid, known for his calm and composed demeanor, in a completely unexpected light, experiencing “road rage”. 

    The ad escalates quickly. Dravid is shown smashing his rearview mirror with a coffee cup, standing through his car’s sunroof shouting “Indiranagar ka gunda hoon main!” (I’m the goon of Indiranagar), and even destroying vehicles around him with a cricket bat. The ad ends with the tagline “Not everyone gets it,” implying that CRED, like Dravid’s bizarre behavior, is not for everyone. 

    Rewards-driven model

    CRED incentivizes credit card bill payments by offering rewards and cashbacks, essentially gamifying financial responsibility.

    CRED incentivizes timely credit card payments through its app by awarding users with CRED coins. These coins serve multiple purposes, including redemption for various rewards or discounts. The platform often provides cashback on bill payments, sometimes offering a percentage of the total bill amount.

    Within the app, users can access the CRED Store, where they can utilize their accumulated coins to purchase products at discounted rates. To add an element of engagement, CRED periodically introduces “mystery boxes” that users can unlock using their coins. These boxes contain surprise rewards, effectively transforming the routine bill payment process into a more engaging experience. 

    Partnerships with premium brands

    To reinforce the app’s premium positioning, CRED collaborates with luxury brands like The Taj Group of Hotels, offering CRED members exclusive discounts, upgrades, or special packages at Taj properties. Members might receive complimentary room upgrades, special booking rates, or access to exclusive Taj experiences.

    The brand’s partnership with Cure.fit provides CRED users with special offers on Cure.fit’s services. This could include discounted subscriptions to Cure.fit’s digital fitness classes, meal plans, or access to their offline gyms and fitness centers.

    CRED also partners with other luxury and premium brands across various categories. For example, access to exclusive Jimmy Choo collections, premium test drives or chef’s table experiences at high-end restaurants.   

    Experiential marketing

    Experiential marketing by CRED
    Experiential marketing by CRED

    While other fintechs showcased their technology using AI/ML, CRED distributed free beer at the recent Global Fintech Fest 2024 to engage attendees in a fun, interactive activity. Attendees needed 50,000 CRED coins to scan the code, access the CRED bar and redeem the coins for beer. 

    The disruptive idea reinforced their image as a fintech company that is different, enjoyable, and lifestyle-oriented, rather than just focused on financial transactions.

    Word-of-mouth referral program

    The company encourages member referrals, leveraging word-of-mouth marketing, social proof and network effects. As more users join through referrals, the value of the platform potentially increases for all users. This could lead to more partnerships, better deals, or enhanced features as the user base grows. While encouraging referrals, CRED maintains its focus on creditworthy individuals by applying its credit score criteria to all new sign-ups.

    CRED – Marketing Campaigns

    Not Everyone Gets It (2020-2021)

    Not Everyone Gets It (2020-2021)

    CRED’s IPL campaigns have been particularly noteworthy. The “Not Everyone Gets It” series, launched during IPL 2020 and continued in 2021, featured celebrities like Rahul Dravid, Anil Kapoor, and Madhuri Dixit in unexpected avatars.

    The most viral ad from this campaign showed the normally calm Rahul Dravid in an uncharacteristic “angry” persona stuck in Bangalore traffic. Playing on CRED’s exclusivity, it implied that not everyone would understand the app’s benefits. 

    CRED Jackpot (2021)

    During IPL 2021, CRED launched the “CRED Jackpot” campaign. This initiative offered members a chance to win prizes by paying their credit card bills through the app. The campaign featured cricketer Neeraj Chopra and actor Jim Sarbh in quirky advertisements.

    The Jackpot campaign was successful in driving user activity on the app. CRED reported a significant increase in credit card bill payments during the IPL season.

    CRED Mega Jackpot (2022)

    CRED Mega Jackpot (2022)
    CRED Mega Jackpot (2022)

    Building on the success of the previous year, CRED introduced the “Mega Jackpot” campaign during IPL 2022. This campaign featured a star-studded cast including Kamal Haasan, Vijay Deverakonda, and Kapil Dev in a series of eccentric commercials.

    The Mega Jackpot offered even larger prizes, including luxury cars and all-expenses-paid trips. This further incentivized users to engage with the app during the cricket season.

    CRED Pay (2023)

    To promote its new payment feature, CRED launched the CRED Pay campaign in 2023. The ads featured Ayushmann Khurrana and were designed to showcase how CRED Pay simplifies online transactions. The campaign emphasized how CRED makes payments seamless and encouraged users to adopt the feature. 

    CRED – The Road Ahead

    CRED’s innovative approach to marketing has undeniably disrupted India’s digital finance sector. The company has not only carved out a significant market share but also redefined customer engagement in fintech. As the company continues to evolve, its impact on the industry is likely to deepen. Competitors will need to adapt as part of an evolving creative and customer-centric fintech landscape. While challenges lie ahead, including maintaining growth and navigating regulatory changes, CRED’s success story offers valuable lessons for startups and established players to follow. 

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    FAQs

    What is CRED company?

    CRED allows credit card users to pay their bills through its platform and extends rewards for each transaction. The fintech platform also lets the users make their house rent payments, and also avail all the benefits of the short-term credit lines that the app now offers.

    Who is CRED founder and CEO?

    Kunal Shah is the founder and CEO of CRED.

    CRED started in which year?

    Kunal Shah founded CRED in 2018.

  • Why Papa John’s Failed in India? | Papa John’s Pizza Case Study

    Papa John’s, one of the world’s largest pizza delivery chains, entered the Indian market in 2006 with high hopes and global brand recognition. However, despite its international success, the brand struggled to connect with Indian consumers and eventually exited the market in 2017. This case study explores the reasons behind Papa John’s failure in India, including its challenges with localization, competition, and operational strategy, and what lessons other global food brands can learn from its experience.

    The Startup Story of Papa Johns
    Papa Johns Entry In India
    Papa Johns Expansion in India
    Why Papa John’s Failed in India?
    Future Plans – Reentering India

    Papa John’s India Case Study

    The Startup Story of Papa Johns

    Papa John’s was founded in 1984 by John Schnatter. After his venture became a success, the company went public in 1993. The growth of Papa John’s was so phenomenal that within a year that it had 500 stores, and by the year 1997, it had a total of 1500 stores. Papa John’s operates over 5,500 locations across 49 countries and territories, making it the third-largest pizza delivery company in the world, which is inclusive of both restaurants and company-owned stores. The restaurant chain has opened its franchises in many countries across the globe, including Russia, Spain, Colombia, the United Kingdom, Mexico, etc.

    Papa Johns Entry In India

    Papa John’s took its first step in India in 2006. They were run by Om Pizza and Eats. This firm was owned by the nephew of the steel baron Lakshmi Mittal, Atulya Mittal. Their main intention was to seize the pizza market in India and attract the customers of the already established pizza giants in India, like Domino’s and Pizza Hut. Papa John’s first opened four outlets in India.

    They had very clear reasons for choosing India to expand their business. One of the main reasons was the immense efficiency of the consumer food market as far as national productivity, innovation, and R&D were concerned.

    The pizza segment was contributing a major part of India’s gross fast food market. Along with this, the scope for tourism and the presence of a mix and diverse culture opened up a wide range of opportunities in front of the company as far as experimentation and innovation in their products are concerned.

    They were also sure about the much-needed glocalisation that has to be done to suit the Indian taste and culture. They also decided to promote their brands in different ways, including advertisements in all kinds of media. They also ensured that the pricing of their products aligned with the capacity of the local people.

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    Papa Johns Expansion in India

    In June 2006, Papa Johns Pizza opened its first outlet in India in Noida. Aiming to take advantage of the rising middle class in India, it planned to open various outlets in all the prominent places in India. These places include Delhi, Haryana, Punjab, Himachal Pradesh, Rajasthan, Uttar Pradesh, and Uttarakhand. The outlets were opened by Om Pizza Eats India, the master franchise for Papa John’s.

    Om Pizza had been operating more than 15 Papa John’s outlets across India and had a revenue of INR 25 crores and expected an annual cash loss of INR 10 crores. However, in December 2013, the controlling stakes in the major franchise were bought by Avan Projects for INR 25 crores.

    Along with Avan Projects and Global Franchise Architects, Papa John’s announced a merger with the existing Pizza Corner stores in South India. This happened during the first quarter of 2015.

    This merger helped Papa John’s expand the number of stores in India by more than 40 stores. But it had its downsides. Now they had outlets in major south Indian cities like Bangalore, Chennai, and Hyderabad. By the end of 2015, they were operating in 11 cities in India. They were Mysore, Bengaluru, Hyderabad, Chennai, Vellore, Maddur, Pune, Hosur, Mumbai, Mandya, Tirupati. Do note here that by this time itself, the first outlet at Noida was already closed.

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    Why Papa John’s Failed in India?

    There are several factors responsible for the failure of Papa John’s Pizza India. The challenges faced by Papa John’s that eventually resulted in the fall and closure of the Pizza company in India are mentioned below.

    Unprepared for Competition

    In India, Papa John’s had to face a lot of unprecedented challenges. Not all the challenges can be included in this category of unexpected; some of the problems were due to the lack of planning and vision of the firm.

    The first one was its inability to compete with the giants in the industry, like Pizza Hut and Domino’s. Not only that, but the other two really took advantage of the shortcomings of Papa John’s, which made things harder for the company.

    Although they trained their employees efficiently to use technology and build the name of the brand, they were unable to reach the lighter end of the tunnel. They lost all of their customers to the giants – Domino’s and Pizza Hut.

    As mentioned earlier, the net profitability of Papa John’s was way behind that of Domino’s and Pizza Hut. Reports say that their net margin was only 4.6% of their total sales, while Domino’s Pizza and Pizza Hut had a net margin of 8.2% and 7.9%, respectively. This was the data of 2014, and it was during this dangerous juncture that Papa John’s came to terms with Pizza Corner for the merger.

    They did not consider the risk factors involved with such a merger and nor did they calculate the risk that is associated with a probable failure. When they took so much on themselves, the management was unable to operate efficiently in their newly opened stores.

    India Quick Service Restaurant Market
    India Quick Service Restaurant Market

    Lack of First Mover’s Advantage

    During this time, Domino’s was expanding its outlets in India like wildfire. The company had only 364 stores in 2010. It rose to a whopping 1127 stores by the time it was 2017. As far as Papa John’s was concerned, it had only 66 stores across 11 cities in India, while Domino’s had launched its outlets in more than 265 cities.

    They were also quick enough to become the first food service company that launch online and mobile ordering across India in a successful manner. The phenomenal growth of Domino’s crippled the expansion of Papa Johns. They were unable to compete with the extremely fast delivery and sophisticated technology of Domino’s.

    One of the biggest setbacks that Papa Johns Pizza had to face was that they never got to have the first mover’s advantage. They were always the ones to watch Domino’s faring heights helplessly. This enabled Domino’s to sell its pizzas at a very low profit margin. They were able to bear the cost because of the wider presence they had across the nation. This further adversely affected Papa John’s Pizza.

    Overdependence on Technology

    While most of the firms, especially in the fast-food market, prefer people who are warm and cordial to others, Papa John’s looks for employees who are technically sound.

    It forgot the fact that the staffing in the stores plays a very important role in establishing any outlet. This, along with the absence of good training and the lack of a sound employer-employee relationship, put Papa John’s in a very dark spot. One must say that they were dependent more on technology than on developing their human resources.

    Unwise Choices

    It is always important to watch the indicators such as exchange rate, interest rate, stock exchange, imports, exports, and similar details that inform us about the world economy. By inferring the nature of these indicators, every business firm should be able to improve and work on its EBITDA. However, Papa John’s was more interested in building its brand rather than strengthening its foundation.

    They did not pay enough attention to the existing stores while they were busy opening up newer outlets in South India. When things were going south, instead of looking for ways to improve their business, they went on a merger with Pizza Corner, which demanded a huge investment. The inability to choose the right choice among the available choices further paved the way to the exit of Papa John’s from the Indian market.

    Customer Dissatisfaction

    Papa Johns India Pizza Pricing | Papa Johns menu vs Dominos menu
    Papa Johns India Pizza Pricing | Papa Johns menu vs Dominos menu

    There is a very common phrase that never gets old in the business world – the customer is king. It can be observed that many times Papa John’s Pizza forgot this mantra. While they had planned the glocalisation of the menu, it did not materialise well when implemented.

    In India, pork consumption is not that popular. Papa John’s India should have identified this cultural nuance and excluded or kept a low profile for their pork dishes. There are already existing examples where many international companies in the food business adapt their menu depending upon the country, if not the regional states. However, Papa John’s did not look into it, and their dishes were not accepted as dearly as they accepted Domino’s and Pizza Hut dishes.

    It is understood that it does not mean that the whole of India does not eat pork, the numbers were very less and this led to a situation where there was absolutely no demand for the pork varieties.

    This again would not have been a problem had they been able to effectively popularise their other dishes. But they were very behind in the market while Domino’s and Pizza Hut had an extremely localised menu that aligned with the likes of pizza lovers. This led to a rapid decline in sales.

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    Future Plans – Reenetering India

    Papa John’s is set to reenter the Indian market in 2025 after exiting in 2017 due to underperforming stores. Although its return was initially planned for last year, the launch was delayed. Now, the company aims to open over 650 outlets in India over the next decade. Papa John’s is taking a careful approach, ensuring its franchise partners have the right menu, technology, and restaurant setup to succeed in India’s complex market with diverse consumer preferences.

    Conclusion

    It can be concluded that the inability of Papa John’s to analyse the existing market and the nuances of the local market made them highly incompetent. While Papa John’s India saw a diverse population as an opportunity to expand their outlets, they did not foresee the challenges that are associated with it. Being in the business world, they should have been more careful about the correct signs that we see around and should have acted accordingly.

    The untimely merger also came as a blow to the third-largest pizza delivery chain in the United States of America. Had they researched more about the demographic distribution of the Indian population and the challenges and advantages of the Indian fast food market, they would have had better luck in this country.

    The case of Papa John’s is an example for all the entrepreneurs out there to have a clear understanding of the existing market and a clearer vision for their business in the future before getting into it.

    FAQs

    Who founded Papa Johns?

    Papa Johns was founded by John Schnatter in 1984.

    Is Papa Johns available in India?

    Papa John’s entered India in 2011 and shut down its operations in 2017.

    Why Papa John’s failed in India?

    Some of the reasons why Papa John’s closed in India are:

    • Papa John’s was Unprepared for Competition
    • It lacked First Mover’s Advantage
    • They were over-dependent on Technology
    • Customer Dissatisfaction with the types of Papa John’s Pizza

    Who were the biggest competitors of Papa John’s in India?

    Dominos and Pizza Hut were the biggest competitors of Papa Johns, which were already successful in capturing the Indian market before Papa Johns.

    What happened to Papa John’s pizza?

    ​Papa John’s entered India in 2006 but exited in 2017 due to challenges such as poor localization, operational inefficiencies, and stiff competition from established players like Domino’s and Pizza Hut. The company failed to adapt its menu to Indian tastes and struggled with delivery logistics and customer service, leading to underperformance.

    Is Papa John’s in India?

    Papa John’s is planning to reenter India in 2025 after closing in 2017.

  • How Upwork is Revolutionizing the Freelance Economy

    Upwork is a top-tier freelance platform designed to link up organizations with freelancers across the globe. Its category diversity includes IT, writing, designing, and customer service, thus reducing the difficulty freelancers encounter looking for job relevance. It has an easy-to-navigate dashboard for managing profiles, proposals, and communication. It also has a secure escrow payment system that temporarily keeps the money until a client approves a job done to ensure both sides are financially guarded. Upwork has incorporated the built-in features of messaging, video calls, and file-sharing tools, ensuring the proper facilitation of tasks.

    Upwork uses an online Work Diary for time tracking, which records keys and captures screen images for all tasks done under hourly contracts while allowing milestone payments to mark each stage on fixed-price contracts. Its open feedback mechanism enables clients and freelancers to build their reputations. With Upwork Enterprise, businesses can gain access to expert-vetted talent, more security in protecting data, and dedicated account management services. 

    History and Journey of Upwork

    Upwork originated from two separate platforms: Elance, founded in 1998 by Beerud Sheth and Srini Anumolu, and oDesk, founded in 2003 by Odysseas Tsatalos and Stratis Karamanlakis. Elance was one of the first online marketplaces connecting small businesses with freelancers, while oDesk was created to facilitate remote staffing and workforce management. The two companies were merged in 2013 as Elance-oDesk and rebranded to Upwork in 2015 before launching an updated system on June 17 of that year.

    Since going public in 2018, Upwork has significantly expanded, reaching 14 million users by 2017. In 2020, it introduced the “Project Catalog” feature, enabling freelancers to offer pre-packaged services. A major strategic move came in 2022 when Upwork suspended operations in Russia and Belarus. As of 2024, Upwork reported revenues of $769 million and a net income of $216 million.

    Upwork has established itself as a leading freelancing marketplace, offering secure transaction models, transparency tools, and enterprise solutions, ensuring that freelancers and businesses can compete effectively in the digital economy.

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    Business Model and Revenue Model of Upwork

    Upwork is what would be called a two-sided marketplace. It connects businesses to freelancers for remote work, bringing in revenue through various means for all interactions between freelancers and clients. A client posts a job requirement while freelancers write a proposal within some defined “Connects” for the job and offer services within various categories. Everything occurs under this security of transaction using an escrow system, including hourly work, which is managed within the “Work Diary” tool.

    The revenue model includes a 10% service fee on freelancer earnings, a 5% client service fee, and membership plans such as Freelancer Plus and Business Plus. Additional income comes from Connects sales, advertising, and enterprise solutions for larger companies.

    Starting May 1, 2025, Upwork will introduce a variable Freelancer Service Fee for new contracts, replacing the fixed 10% rate. This fee will vary based on factors such as client demand for specific work and will remain consistent for the duration of the contract. Existing contracts will not be affected by this change.

    Revenue of Upwork worldwide from 2016 and 2023
    Revenue of Upwork worldwide from 2016 and 2023

    In 2023, Upwork generated $689.14 million in revenue, with 85% ($586.1 million) coming from its marketplace. The platform’s Gross Services Volume (GSV) reached $4.14 billion.

    Upwork has played a transformative role in global talent access and cost-effective hiring, making freelance work more fluid and integrated within the evolving gig economy for both individuals and enterprises.

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    Growth and Impact on the Freelance Industry

    Upwork has successfully matured into its current place among the freelancing platforms. Between 2016 and 2023, Upwork’s revenue grew from $166.44 million to $689.14 million, showing a 4.2x growth over this period. The company’s GSV (gross services volume) reached $4.14 billion in 2023: its marketplace revenue increased by 37% compared to 2021 and thus stood at $586.1 million. Upwork recorded 851,000 active clients at the end of 2023, and that number has increased by 57.59% since 2019. It also connects over 18 million freelancers around the globe, including the 3.7 million based in the US, where top earners exceed $1.5 million.

    Beyond numbers, Upwork has redefined remote work and the gig economy by connecting businesses with global talent. Through the Project Catalog, coaching for freelancers, and other collaborations with Coursera and Udemy, skill development is improved. Major clients, including Marriott and Reddit, have adopted Upwork Enterprise Solutions. It keeps extending flexibility, innovation, and accessibility across a workforce in the current digital economy.

    Goals, Challenges, Solutions, and Competitors of Upwork

    One important thing in the development of a company is that it is feasible and, above all, it is possible only when the company meets all its goals and overcomes all the barriers.

    Goals of Upwork

    • Connecting Businesses and Freelancers: Upwork seeks to link businesses with skilled freelancers worldwide, thus encouraging cooperation beyond borders.
    • Creating Economic Opportunities: The Primary focus of Upwork remains on empowering people through flexible work opportunities to allow freelancers to gain back control of their careers and make a living.
    • Empowering the Future of Work: Upwork sees itself as a pioneer in transforming the traditional workplace by enabling remote work and flexibility, thus allowing freelancers to engage in activities that they are passionate about and to find meaningful work.
    • Innovating with Artificial Intelligence: Upwork centers the utilization of AI tools, including OpenAI‘s models, to improve user experience and productivity and to simplify its operations.

    Upwork Challenges

    • Saving a Deal: Many freelancers complain of low-paying gigs, thus creating tough competition with very little earning potential.
    • Excessive Service Fees: Upwork charges its service fees in the range of 5%-20%, which can be quite an unbearable burden to freelancers working small contracts.
    • Saturation of Platforms: A slew of freelancers registered on Upwork makes it difficult for freshers to find a distinguishable footing and procure a project.
    • Mismatch of Clients and Freelancers: Although features like ‘Best Match Insights’ in Upwork try to find the correct freelancer for a project, it remains a challenge to ensure that happens with any regularity.

    Solutions

    • AI-Powered Tools: The Job Post Generator and Proposal Tips features provide ease for writing up job posts and proposals, thereby making life easier for the clients as well as freelancers. Upwork’s AI assistant provides key insights, suggests customizations, and acts as an efficiency multiplier.
    • Talent Recognition: Talent badges are another way for freelancers to show their expertise to attract high-quality clients.
    • Escrow Payment Protection: With Upwork, clients and freelancers are protected in the course of the project through escrow accounts pre-funded with project money.
    • Enterprise Solutions: Upwork provides tailored services for large-scale enterprises, enabling them to scale their remote workforce efficiently.

    Competitors of Upwork

    • Fiverr: Primarily inclined towards micro-gigs with fixed pricing, but offers fewer opportunities for extensive engagement compared to Upwork.
    • Freelancer.com: Very much like Upwork, but it is criticized for its convoluted bidding system and less competitive quality of gigs.
    • Toptal: Targets elite professionals with a strong vetting process, resulting in higher fees.
    • Guru: A straightforward freelancing platform, but it has a smaller user base.

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    Conclusion

    Upwork has established itself as a staple in the freelancing market, serving as a global meeting point for businesses and professionals to exchange skills, innovations, and achievements. The business model of Upwork is built on simplifying the connection between various trade structures through diverse pricing options, ensuring clients remain engaged. With a global user base, Upwork admires a work culture that permits the use of contingent work, embracing change through AI and various advanced tools for enhancing its capability, thereby expanding to meet market dynamism.

    The platform has empowered millions by providing economic opportunities and promoting autonomy in their careers. It shapes the future of today’s workforce by facilitating online, remote work, contributing to the evolution of the digital age.

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    FAQs

    What is Upwork?

    Upwork is a website where people hire freelancers for jobs like writing, design, coding, and more.

    What is Upwork business model?

    Upwork is an online marketplace that connects clients with freelancers for various services like writing, design, programming, and more. Its business model is based on earning revenue through service fees charged to freelancers (ranging from 5% to 20% depending on earnings), payment processing fees from clients, and subscription fees for premium plans. By acting as a middleman, Upwork provides a secure platform for remote work, helping businesses find talent and freelancers find jobs globally.

    Who are Upwork competitors?

    The main competitors of Upwork include Fiverr, Toptal, Guru, Freelancer.com, and others.

  • How Does Google Pay Make Money? | Google Pay Business Model

    Google Pay is a digital wallet platform and online payment system developed by Google to power in-app and tap-to-pay purchases on mobile devices. Google Pay enables its users to make payments with their Android devices phones, tablets, watches, etc.

    In addition, the service also supports passes such as coupons, boarding passes student ID cards, event tickets, movie tickets, public transportation tickets, store cards, and loyalty cards.

    It can be used for online payments, in-app purchases, contactless in-store payments, and even for sending peer-to-peer money. So whether someone is browsing for a new pair of sneakers online or buying your morning coffee, Google Pay can do all the heavy lifting for them.

    In this article, we’ll take a closer look at the Google Pay business model, how it makes money and how it has become one of the most successful digital payment solutions in the world.

    Safe, simple and fast payments l Google Pay hai, tick hai

    Google Pay Key Features
    Google Pay Business Model
    How Does Google Pay Make Money | Google Pay Revenue Model
    Sources Through Which GPay Makes Money
    Google Pay Net Worth
    Growth of Google Pay in India
    Funding Received by Google Pay

    Google Pay Key Features

    • Easy and Convenient Payments: Google Pay makes it easy and convenient to make payments using your mobile device. You can make payments using your phone, tablet, or smartwatch, without the need for cash or physical credit cards.
    • Integration with Google Services: Google Pay is integrated with various Google services, such as Google Chrome, Google Assistant, and Google Maps, which makes it easier to make payments while using these services.
    • Secure Transactions: Google Pay uses multiple layers of security to protect your payment information, including encryption, tokenization, and biometric authentication (such as fingerprint or facial recognition).
    • Multiple Payment Options: Google Pay supports multiple payment options, including credit cards, debit cards, and bank accounts. You can also add loyalty cards and gift cards to your account for easy access.
    • Rewards and Cashbacks: Google Pay often offers various rewards and cashback programs for using the service, such as earning rewards for making purchases or referring friends.
    • Bill Payments: Google Pay allows you to pay various bills, including utility bills, credit card bills, and more, all within the app.

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    Google Pay Business Model

    Google Pay has been consistently rising in India, The Alphabet and Google CEO- Sundar Pichai said that the company has taken cues from the successful experience in the country and would soon put out a revamped digital payments product globally.

    Compared to the other mobile wallets Google Pay is successful in India because of its business model which includes the following factors:

    • Partnership-Focused Innovation
    • Localization for Success
    • Ecosystem Integration
    • Small Business Support
    • Job Seeker Support
    • Digital Payment Awareness
    • Rural Outreach
    • Entity-Based UX
    • In-App Engagement
    • Cashback Offers

    Google Pay focuses on partnerships, localization, and ecosystem approach as it forged deep partnerships with the central bank and government to innovate and build collectively and make products interactive and open to working jointly within the ecosystem.

    The company deepened its support for small businesses through a new app called Google Pay for Business which was a free and easy way for small merchants and storefronts to enable digital payments without the hassle of a time-consuming verification process.

    Google Pay also supports job seekers by introducing a spot on Google Pay to help people find entry-level positions that aren’t always easily discoverable online.

    It collaborated with the Government to come up with Digital Payment Abhiyan to increase awareness about cashless payment and online financial security in the country.

    The company also launched the Vodafone Idea Phone Line to help people in rural areas where the internet connection is weak to get information about everything.

    Its entity-based UX users search for who they paid earlier rather than the transaction date and time. Under the entity-based model, users see individual chat leads of every individual or merchant, they transact with, whenever they have to check a payment record.

    Google Pay introduced the spot platform in India which is a way for the business to create an experience and engage their customers within the Google Pay app. Popular services like UrbanClap (now Urban Company), Goibibo, MakeMyTrip, RedBus, Eat.Fit, and Oven Story were the first to board in its early access program.

    Scratch cards are another attraction as Google Pay provides lucrative cashback and offers on varying transactions. These cashbacks are directly credited to a linked bank account. The app also provides multiple payment options so users can transact through their mobile numbers and Virtual Payment addresses.

    Biggest Contactless Payment Brands at POS in India as of March 2024
    Biggest Contactless Payment Brands at POS in India as of March 2024

    How Does Google Pay Make Money | Google Pay Revenue Model

    Google Pay has several global revenue-making opportunities. The revenue might be both from transaction fees from banks or merchants which is $4.1 billion and also from ads and product offers within Google Pay which is $0.4 billion.

    Google Payment India Private Limited reported its revenues for the financial year 2020-21 as ₹14.8 crore. The company further reported a net profit of ₹1.4 crore during the same fiscal.

    Google Pay was first launched in August 2017. Google first named this app “Tej” and later changed the name to “Google Pay“.

    Google Pay does not charge its users for accessing Google Wallet. Receiving and sending money on Google Pay is free. Previously, the company had an agenda of adding a 2.9% fee to funds via debit card. However, now the plan is dropped and it’s all free as mentioned above.

    The app has over 67 million monthly active users and enabled more than 2.5 billion transactions and now has an annual run rate of over US$110 billion in transaction value. This app user can now pay at more than 200,000 stores in more than 3,500 cities and towns, and more than 2,700 online merchants.

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    Sources Through Which GPay Makes Money

    Google Pay earns money through the following sources:

    • Mobile Recharges: The basic revenue model of Google Pay is mobile recharges. Whenever a user recharges on any SIM operators from this app, then they get a commission from that operator on every recharge.
    • Bill Payments: Google Pay allows you to pay for any kind of bill from this app such as electricity, DTH recharge, water, insurance, loan repayment, postpaid bills, and so on. Whenever you pay any company bill, it takes a commission from that company.
    • UPI Transaction: So this app does not earn from UPI transactions, it just analyzes your transaction data, which it uses to make its new product. The main reason most people use Google Pay is for UPI payments. The app also provides more services such as mobile recharge, and bill payment. So when people have to use either or both of these services, they use this app and this app earns from both the services.
    • Ad Revenue: Google Pay uses its large user base and transaction data to offer targeted ads, generating revenue through in-app promotions and merchant-sponsored offers. Ads are personalized based on user behavior and spending patterns, appearing within the app or across Google platforms. Merchants also pay to feature special offers, driving traffic to their sites or apps.
    • Partnerships: Google Pay earns revenue through partnerships, ads, transaction fees, and in-app purchases. It teams up with banks, e-commerce platforms, and payment providers, often sharing revenue from transactions like virtual card payments.

    Google Pay Net Worth

    The company’s net worth stood at ₹12.8 crore for FY21 compared to ₹10 crore at the same time the previous year.

    Growth of Google Pay in India

    Google mobile payment system Google Pay has emerged as the king of UPI payments in India, with an annualized transaction value worth $110 billion. Google Pay has 150 million users worldwide, with 67 million users in India. Millennials are 30% of active users of Google Pay.

    According to a report by GlobalData, the value of mobile wallet payments in India experienced a compound annual growth rate (CAGR) of 72.1% from 2019 to 2023, reaching INR 202.8 trillion ($2.5 trillion) in 2023. Mobile wallet payments in India are projected to exceed INR 531.8 trillion by 2028.

    In India, Google Pay holds a 35% market share in UPI payments. The app resembles a chat app that is easy to use and is available in local languages.

    The platform is used by customers to buy train tickets, pay bills, and even purchase lunchtime meals from street vendors. In India, local stores have begun to accept Google Pay payments via a phone application. Meanwhile, the Google Pay platform’s update includes features like tokenized cards for more secure payments, food security, Google Pay for business, e-KYC, and simpler onboarding and donations.

    In India, Google Pay is facing stiff competition from other fintech startups including wallets such as Paytm, PhonePe, Amazon Pay, Airtel Payments Bank, etc. The upcoming contender in the race is the Whatsapp Pay service by Facebook.

    Funding Received by Google Pay

    Founders of Google Pay in India raised $13.2 million in January 2020 in a Seed funding round for its neobank, Fi led by Sequoia India and Ribbit Capital. Also participating in the funding rounds were David Velez, Kunal Shah, and VC fund Hillhouse Capital.

    In October 2020 the investment app, ETMONEY, had partnered with Google to offer Google Pay users a route to invest in mutual fund schemes and the National Pension System (NPS).

    This collaboration will allow Google Pay users to identify the right mutual fund schemes and invest in them within minutes using their Google account and Unified Payments Interface (UPI) ID.

    Google Pay users will not have to create a user ID to access this facility. It will be the same if one wants to invest in NPS as well. Sujith Narayanan and Sumit Gwalani, both co-founders of Google Pay India formerly called Google Tez said that the seed funding brings the Neobank startup Fi to a valuation of roughly $50 million.

    FAQs

    What is GPay?

    Google Pay is a fast and simple way to pay using credit or debit cards saved to your Google account. It works for online purchases, in-app transactions, and in-store payments with your Android device.

    What is the revenue of Google Pay in India?

    Google Pay revenue in India was INR 1467 crore in 2021.

    How many people use Google Pay worldwide?

    Google Pay has 150 million users worldwide.

    How does Google Pay make money in India?

    Google Pay makes money through commissions it gets for transactions from companies or operators. For every transaction that you make using Google Pay, it gets a commission from the company.

    Who are the competitors of Google Pay in India?

    The top competitors of Google Pay in India are:

    • PhonePe
    • Paytm
    • PayPal
    • Amazon Pay
    • Whatsapp Pay

    Is Google Pay profitable?

    Google Pay is likely profitable for Google, though its standalone earnings are not publicly disclosed.

    What is GPay business model?

    Google Pay business model earns revenue through transaction fees, targeted ads, partnerships with banks and merchants, and in-app promotions.

  • CRED Business Model | How Does CRED Make Money?

    Not many things out there can match the convenience that comes with a credit card. After all, what can be better than spending money- money that you don’t have to hold or carry in your wallet? Moreover, we hover around, get 6-7 weeks to pay back the same, and then also earn rewards, discounts, or cashback on it. Well, these instruments are designed in such a way that they keep you hooked.

    Kudos to the noble banks and fintech players, but then – every boon comes with a T&C. Founded in April 2018 by Kunal Shah, CRED has emerged as a pivotal fintech platform that redefines the way credit card payments, rewards, and management are perceived across the nation.

    This platform stands out by prioritizing the credibility of its users, employing credit scores as a criterion to curate a community of trustworthy individuals, thereby simplifying the credit card bill payment process and rewarding timely transactions with exclusive offers and discounts.

    With a robust user base of almost 16 million and a valuation soaring to $6.4 billion as of June 2022, CRED’s trajectory reflects its groundbreaking approach to imbibing a gated ecosystem that benefits both individual lenders and financial institutions by ensuring a circle of high trust.

    CRED’s business model, which pivoted the startup to the much-coveted unicorn status within just over two years of its inception, has been simple yet phenomenal. The USP revolves around offering a meticulous balance between user convenience and enticing rewards. The platform allows users to effortlessly manage their credit card bills, track expenses, and avail themselves of P2P lending at competitive rates, and by doing so – the Fintech major not only enhances financial health but also ingrains a culture of financial responsibility.

    The platform’s focus on amplifying user value through exceptional rewards for responsible financial behavior, coupled with its strategic partnerships for exclusive deals, sets a precedence in the CC payments space, accentuating the importance of credibility and trust in the digital era.

    In this article, we will be exploring the CRED business model and understanding how CRED makes money and what is its revenue model.

    What is CRED?
    Understanding the CRED Business Model – How Does CRED work?
    CRED Revenue Model – How Does CRED Make Money?
    Decoding the CRED Revenue Streams
    CRED’s Value Proposition to Users
    Challenges and Opportunities

    What is CRED?

    CRED, established in 2018 by Kunal Shah, is an innovative Indian fintech company that offers a reward-based credit card payment application. It started with the idea of targeting creditworthy individuals, specifically those with a credit score above 750, ensuring a community of high trust. However, with time – the credit card payment enabler has become more lenient when it comes to profiling individuals. The platform verifies new members by checking their credit scores with major credit bureaus such as CIBIL, Experian, and CRIF, requiring only their full name and a valid Indian mobile number for initial setup.

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    Key Features and Services of CRED

    • Credit Card Payment and Management: CRED simplifies the management of credit card expenses by providing a detailed analysis of spending patterns and efficiency, which aids users in better financial planning.
    • CRED Protect: An AI-driven feature, CRED Protect, offers automated monitoring of credit card payments, sends due date reminders, and analyses spending habits to prevent fraudulent transactions.
    • Rewards System: Upon paying their credit card bills through CRED, members gain access to exclusive rewards such as event tickets, experiences, gift cards, and premium upgrades from well-known brands like Diesel, Perfora, The Man Company, AJIO, Myntra, and others.
    • Additional Financial Services: Besides basic card management, CRED has expanded its offerings to include house rent payments and short-term credit lines, providing more comprehensive financial solutions.
    Value of Credit Card Transactions in India
    Value of Credit Card Transactions in India

    User Impact and Market Presence

    • User Base and Transactions: As of 2021, CRED has processed approximately 20% of all credit card bill payments in India, with a user base exceeding 5.9 million. The market share has continued to soar and grow.
    • Investments and Financial Health: Supported by major investors like DST Global and Sequoia Capital, CRED has raised significant funds to fuel its growth, despite reporting substantial losses in 2020 due to aggressive marketing and advertising strategies.
    • Strategic Acquisitions: In its pursuit to broaden its service spectrum, CRED has acquired startups like Happay, focusing on expense management, and HipBar, a liquor delivery service.

    CRED continues to upscale its platform with features that promote good creditworthiness and financial discipline while rewarding creditworthy behavior, positioning itself as a cornerstone in India’s fintech scene.

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    Understanding the CRED Business Model – How Does CRED work?

    The business model of CRED revolves around creating a seamless experience for credit card users while partnering with businesses to provide exclusive rewards and incentives.

    Three Pillars of the CRED Business Model

    • CRED’s Customers: CRED’s customers are an essential component of its business model. While many people use payment apps or log in to their bank accounts to pay their credit card bills, CRED provides an attractive alternative by offering rewards and incentives. As more people use CRED to earn benefits, they share those benefits more widely, creating a network effect that strengthens CRED’s position in the market.
    • CRED App: The CRED app is a key component of its business model. The app provides users with a user-friendly interface to see all the available offers for paying their credit card bills. As users continue to pay bills, they accumulate CRED coins, which they can redeem for rewards.
    • Businesses That Provide Offers On The App: This is another important pillar of CRED’s business model. By bringing businesses on board and forming tie-ups with them, CRED provides small and large businesses alike with visibility, as buyers of all types use the app. This partnership is beneficial for businesses, as it allows them to increase their customer base and revenue while also providing users with more rewards and incentives to use the app.

    CRED Revenue Model – How CRED Makes Money?

    CRED Revenue Model - How CRED Makes Money?
    CRED Revenue Model – How CRED Makes Money?

    The progressive business model of CRED leverages multiple revenue streams to create a robust ecosystem for creditworthy users. Here’s a detailed breakdown of how cred makes money:

    Revenue from Business Listings

    • Businesses pay to display their products and offers on the CRED app, generating significant listing fees for the platform.

    Transaction-Based Earnings

    • CRED charges a processing fee ranging from 1 to 1.5% on various transactions, which includes payments made through CRED pay.
    • Additional revenue is earned through commissions on sales from advertisements optimized to encourage spending on the platform.

    Interest and Commission from Financial Services

    • The platform earns interest on loans provided through peer-to-peer lending and CRED Stash.
    • A commission is also earned from transactions where users redeem CRED coins for offers from partnered brands.

    Diverse Financial Offerings

    • CRED’s array of services, such as CRED Pay, CRED Store, and CRED Escapes, ensures a broad base from which to draw revenue, ranging from payment processing fees to premium subscriptions.

    Strategic Revenue Sharing

    • A revenue share is obtained from partnered brands when users redeem points for rewards, integrating user engagement with profitability.

    Thus, by focusing on a trust-based model, CRED not only secures a high-engagement user base but also creates a profitable framework through diverse revenue channels, making it a unique player in the fintech space.

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    Decoding the CRED Revenue Streams

    Let’s decode the revenue streams of the Shah-led company and understand how they make the revenue model of CRED a big-time success.

    Revenue Composition and Growth

    Primary Revenue Sources

    CRED’s positioning revolves around multiple income streams that the neo-fintech player has figured out over the years. The majority of its income, nearly 90% – is derived from three key services: CRED Cash, Cred Max, and various insurance products. These services cater to the essential needs of the platform’s creditworthy user base, ensuring a steady influx of revenue.

    Operational Revenue Enhancement

    CRED saw its operating revenue grow by 71% to INR 2,397 crore in FY24, up from INR 1,400 crore the previous year.

    Including other income, CRED’s total revenue increased by 66%, reaching INR 2,473 crore in FY24, compared to INR 1,484 crore in FY23.

    However, despite the rise in revenue, the company’s net loss expanded by 22%, reaching INR 1,644 crore in FY24, up from INR 1,347 crore the previous year. CRED noted that its operating loss decreased by 41%, dropping to INR 609 crore from INR 1,024 crore in FY23.

    For the fiscal year 2023, CRED reported a substantial increase in operational revenue, which grew by 3.5 times to reach INR 1,400.6 crore, up from INR 393.5 crore in the previous fiscal year. This growth highlights the effectiveness of CRED’s business strategies and its ability to monetize its services efficiently.

    Particulars FY23 FY22
    Revenue from Operations INR 1,400.3 crore INR 394.4 crore
    Other Income INR 84.4 crore INR 28.2 crore
    Total Revenue INR 1,484.6 crore INR 422.6 crore
    CRED Financials 2024
    CRED Financials 2024

    Fee-Based Earnings

    CRED capitalizes on transactional processes by charging a processing fee of approximately 1-1.5% on various transactions made through the platform. Additionally, the platform earns fees when users select offers from the ‘Discover’ section, further augmenting its revenue.

    Interest Income and Financial Services

    A significant portion of CRED’s revenue also comes from interest earned on peer-to-peer lending and CRED Stash, which provides an instant credit line to customers. This not only diversifies CRED’s revenue streams but also enhances user engagement by offering financial solutions within the app.

    Strategic Financial Management

    Despite a notable increase in revenue, CRED’s total operating expenditure, including one-time costs, amounted to INR 3,082 crore in FY24. Whereas, the company’s total expenditure rose by 66.4% to INR 2,832 crore in FY23 from INR 1,702 crore in FY22. The company has strategically reduced marketing and promotional expenses by 26.8% to INR 713 crore in FY23 from INR 976 crore in FY22, focusing more on direct integrations with banks to lessen payment processing charges. Through the continuous evolution of financial strategies and optimization of its service offerings, CRED is not just sustaining but also significantly strengthening its fiscal footprint in the competitive fintech arena.

    CRED’s Value Proposition to Users

    CRED’s value proposition uniquely intertwines convenience with rewards, offering a robust platform for creditworthy individuals to manage their finances effectively and enjoy exclusive benefits. Here’s how the CRED business stands out:

    Kunal Shah Led CRED's Value Proposition to Users
    Kunal Shah Led CRED’s Value Proposition to Users
    • Rewards for Financial Responsibility: Users earn rewards for timely credit card payments, which not only encourages punctual bill settlements but also aids in maintaining a healthy credit score.
    • Suite of Financial Management Tools: With features like CRED Protect and Smart Statements, users can effortlessly monitor transactions, identify discrepancies in their credit reports, and initiate disputes to correct them, ensuring financial accuracy and security.
    • Exclusive Access to Deals and Offers: Membership in CRED opens doors to curated deals and premium packages, allowing users to make significant savings on various purchases, enhancing the shopping experience, and providing real value for money.
    • More Payment Options with CRED Max: Beyond credit card bills, CRED Max enables users to conveniently pay for rent, utilities, insurance premiums, and even subscriptions, simplifying the management of regular expenses.
    • Better User Experience: CRED’s interface is designed for ease of use, making financial transactions not just simple but enjoyable. This focus on user experience helps retain members and fosters long-term loyalty.
    • Security and Privacy: All personal data and transactions on CRED are securely encrypted, ensuring that users’ financial information remains private and protected.
    • Appealing to Diverse User Needs: CRED appeals to a broad segment of financially savvy users, from those seeking to improve their credit scores to privacy-conscious consumers, all finding value in the platform’s offerings.

    Understanding user needs through innovative features and maintaining a high standard of security has led CRED to successfully deliver a compelling value proposition that resonates with its target audience.

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    Challenges and Opportunities

    Competitive Scenario and Differentiation Challenges

    • Operating in a Crowded Market: CRED operates in a highly competitive digital finance market in India, where numerous loyalty programs vie for consumer attention. Establishing a distinct presence amidst this crowd poses a significant challenge for how CRED works.
    • Effective Communication: The crucial task for CRED is to effectively communicate its unique value proposition. Many potential users are already familiar with traditional loyalty rewards programs, making it imperative for CRED to highlight its differences and benefits clearly and persuasively.

    Competition and Market Positioning

    • Facing Established Giants: CRED encounters intense competition from well-established players in the payments and financial services sector, including the likes of companies like Gpay and PhonePe. These competitors offer similar services, which necessitates CRED to continually innovate and offer superior value to retain and attract users.
    • Differentiation Strategy: To stand out, CRED needs to keep differentiating itself through unique features, exceptional user experiences, and tailored services that resonate with its target audience of creditworthy individuals. It is even trying to do so by constantly gamifying the platform with animated contests, among others.

    Future Prospects and Strategic Focus

    • Sustainable Monetisation: While CRED has successfully attracted a large user base and built a strong brand, the ongoing challenge is to monetize this base in a sustainable manner. The focus must be on creating long-term value for users without compromising upon profitability.
    • Playing Upon Brand Strength: CRED’s future prospects will heavily rely on its ability to make the most out of its brand and user trust to introduce new revenue-generating services and expand its market reach without compromising on user experience or data security.
    • CRED plans to grow by tapping into digital payments, promoting financial literacy, and using technologies like AI to enhance user experience. It aims to expand through strategic partnerships and new market entry. Additionally, CRED is part of the RBI’s e-rupee pilot, exploring India’s digital currency future.

    CRED needs to address these challenges and capitalize on opportunities. If done in the right way, the CC leader can continue to enhance its market position and achieve sustained growth in the long run.

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    End Note

    Looking ahead, the road for CRED is both challenging and ripe with opportunities. As the platform continues to hover through the market dynamics and explores sustainable monetization strategies, its innovation-led approach will be crucial. The significance of the CRED business model lies not just in its current achievements but in its potential to shape future financial behaviors and market trends.

    Consequently, the broader implications of the company’s success extend far beyond its immediate ecosystem, potentially influencing the global fintech dream and offering insights into the power of trust and reward in building a financially responsible society.

    FAQs

    What does CRED do?

    CRED is an innovative Indian fintech company that offers a reward-based credit card payment application.

    How does CRED make money?

    CRED earns money from fees charged to businesses for the privilege of showcasing their products and offers on the CRED app. In addition, CRED earns money from transaction-based earnings, interest and commissions from financial services, and diverse financial offerings.

    What is the CRED membership process?

    To make the most out of CRED, you must have a credit score (CIBIL) of 750 or simply own a credit card. Upon joining, CRED will request permission to access and verify your credit score from credit bureaus such as Experian, CRIF, and CIBIL to assess what services it would extend to you, based on your rapport.

    What issue does CRED aim to address?

    CRED was born out of Kunal Shah’s challenges with managing multiple credit cards. The platform aims to tackle the issue of late payments on credit card bills, which can lead to accruing interest and damaging one’s CIBIL score. CRED provides a solution by helping users manage their credit card payments more efficiently.

    How does the CRED app work?

    CRED is a credit card bill payment app that rewards users with cashback and discounts for timely payments. Users link their credit cards, pay bills through the app, and earn perks from various brands. The app also offers credit score tracking for financial monitoring.

    Is CRED a profitable company?

    CRED saw its operating revenue grow by 71% to INR 2,397 crore in FY24, up from INR 1,400 crore the previous year. Despite the rise in revenue, the company’s net loss expanded by 22%, reaching INR 1,644 crore in FY24, up from INR 1,347 crore the previous year.

    What is the CRED revenue model?

    The revenue model of CRED involves revenue generation through diverse channels, including, Revenue from Business Listings and Financial Institutions, Transaction-Based Earnings, Interest and Commission from Financial Services, Diverse Financial Offerings, and Strategic Revenue Sharing.

    What is CRED business model?

    The business model of CRED is built on three pillars – its customers who pay credit card bills, the CRED app, and the businesses that provide offers on the app.

    How CRED works?

    CRED is accessible only to individuals with a credit score of 750 or higher (CIBIL). The app verifies your credit score by requesting access from credit bureaus such as Experian, CRIF, and CIBIL. If you meet the eligibility criteria, CRED allows you to link your existing credit cards to your account.

  • Flipkart Business Model | How Flipkart Makes Money

    Every Indian citizen is aware of the e-commerce site called Flipkart. It is a company that has grown rapidly over time, worked its way to the top, and got attention from big names like Walmart, which acquired the company for a whopping $16 billion in 2018. Flipkart is the largest e-commerce platform in India, commanding an estimated market share of approximately 38%.

    Flipkart was first idealized by Sachin and Binny Bansal in 2007 while working at Amazon. The Bansal duos, who are often mistakenly thought of as brothers, were able to successfully design a business model based on their experience and expertise. Their business scheme led to the initial funding process from external sources.

    Initially, they invested a total of $5,600 towards developing an ideal online bookstore. 2 years after their initial launch, Flipkart gained enough potential to raise $1 million from Accel India.

    Flipkart- An Overview
    Flipkart’s Revenue Generation | Flipkart Revenue Model
    Flipkart Business Model
    Flipkart Digital Marketing Strategy
    How Does Flipkart Function Exactly?
    Other Sources of Revenue for Flipkart

    Flipkart- An Overview

    Flipkart works as a marketplace that connects all interested sellers to their potential customers and assists them in making the sale. Flipkart follows a clear Business-to-Consumer model, more commonly known as a B2C model. With over 80 categories, Flipkart has sellers for all items, ranging from groceries, toiletries, clothes, books, shoes, furniture, and electronics to more.

    Flipkart’s Big Billion Day Sale is like a festival in the country. It is usually during the festival season that we get the best deals and discounts on various products.

    Flipkart has now become more of a multichannel platform. It launched its FinTech app called PhonePe. Recently, it has also started its own food retail business called FarmerMart.

    The company’s main focus is on providing a seamless shopping experience to its customers. It invests heavily in technology and logistics to ensure fast and efficient delivery of products. The company has also introduced innovative features like no-cost EMI options, product exchange policies, and buyback guarantees.

    In 2018, Flipkart was acquired by Walmart, which further boosted its financial strength and operational capabilities. Flipkart operates multiple subsidiaries, including Myntra, PhonePe, and Flipkart Wholesale, which cater to specific customer segments and provide specialized services.

    In addition to its e-commerce operations, Flipkart also offers various financial services to its sellers through its subsidiary, Flipkart Financial Services. The company has also launched its own loyalty program, Flipkart Plus, which offers various benefits to its customers, such as free delivery, early access to sales, and more.

    Overall, Flipkart has transformed the Indian e-commerce landscape, and its success has inspired the growth of other e-commerce companies in the region.

    Flipkart Success Story: From a Startup to India’s Leading E-Commerce Platform
    Discover the success story of Flipkart, India’s leading e-commerce platform. Explore Flipkart’s subsidiaries, business model, funding, ESOPs, founders, owners, and more.
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    Flipkart’s Revenue Generation | Flipkart Revenue Model

    The most obvious source of income is via the sellers enlisted on its platform. It charges a varying and minimal commission along with a convenience fee from sellers as per their sales or revenue or an established deal.

    Secondly, Flipkart has its own company called E-kart that provides logistics and delivery services to the sellers on the platform. Hence, it once again charges a minimum fee for its services.

    Thirdly, when you open the website or the Flipkart mobile app, there are various advertisements visible. Flipkart lends space for them and hence generates revenue from external sources.

    Flipkart Revenue

    Flipkart Financials 2023 2024
    Operating Revenue INR 55824 crore INR 70542 crore
    Total Expenses INR 60859 crore INR 75038 crore
    Profit/Loss INR -4897 crore INR -4248 crore
    Flipkart Financials FY24
    Flipkart Financials FY24

    In 2023, Flipkart’s operating revenue was INR 55,824 crore, while its total expenses amounted to INR 60,859 crore, resulting in a loss of INR 4,897 crore. In 2024, operating revenue grew to INR 70,542 crore, and expenses increased to INR 75,038 crore, with a reduced loss of INR 4,248 crore.

    Sachin Bansal: Visionary Behind Flipkart & Navi | Biography | Education | Net Worth | Personal Life | Investments
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    StartupTalkyKanimozhi Sivakumar

    Flipkart Business Model

    Flipkart’s business model can be broken down into the following components:

    1. Online Marketplace: Flipkart’s online marketplace allows sellers to list their products and connect with millions of customers across India. Sellers can list their products on the platform, and buyers can purchase those products through Flipkart.
    2. Commission-Based Revenue: Flipkart generates revenue by charging a commission on the sale price of the products sold on its platform. The commission rate varies depending on the category of the product and the seller’s rating.
    3. Logistics and Fulfillment Services: Flipkart has a robust logistics and fulfillment network that helps sellers deliver products to customers across India. The company charges fees for these services, including packaging, storage, and shipping.
    4. Advertising Revenue: Flipkart also generates revenue through advertising. It offers various advertising options to sellers, including sponsored products, banner ads, and social media promotions. Advertisers pay Flipkart to feature their products on the platform, which helps increase their visibility and sales.
    5. Subscription-Based Services: Flipkart Plus is a loyalty program that offers various benefits to its customers, such as free delivery, early access to sales, and more. The company generates revenue through Flipkart Plus subscriptions and by offering exclusive deals and promotions to its members.
    6. Financial Services: Flipkart Financial Services is a subsidiary that provides various financial services to its sellers, including working capital loans, insurance, and invoice financing. The company generates revenue through fees and interest charges on these services.

    Overall, Flipkart’s business model is focused on providing a seamless shopping experience to its customers while providing various revenue streams to its sellers and partners. It invests heavily in technology and logistics to ensure fast and efficient delivery of products, and it continues to innovate and expand its offerings to maintain its leading position in the Indian e-commerce market.

    Binny Bansal: Biography | Net Worth | Education | Future Plans
    Uncover the story of Binny Bansal’s entrepreneurial journey, from co-founding Flipkart, one of India’s largest e-commerce platforms, to his significant impact on shaping the digital landscape. Learn about Binny Bansal’s success story, education, net worth, personal life, and more.
    StartupTalkyshifa ali

    Flipkart Digital Marketing Strategy

    Flipkart has a strong digital marketing strategy that has helped it build a strong brand and attract a large customer base in India. Here are some key elements of Flipkart’s digital marketing strategy:

    1. Social media marketing: Flipkart has a strong presence on social media platforms such as Facebook, Twitter, and Instagram. The company uses these platforms to promote its products, share customer reviews, and engage with its followers.
    2. Search engine optimization (SEO): Flipkart has a strong focus on SEO and invests heavily in optimizing its website for search engines. This includes optimizing product listings, creating high-quality content, and improving website speed and performance.
    3. Email marketing: Flipkart uses email marketing to keep its customers informed about new products, offers, and promotions. The company sends personalized emails based on customer preferences and purchase history, which helps improve customer engagement.
    4. Influencer marketing: Flipkart has collaborated with various social media influencers and celebrities in India to promote its products and build brand awareness. These influencers help reach new audiences and promote Flipkart’s products in an authentic and engaging way.
    5. Performance marketing: Flipkart invests heavily in performance marketing, including search and display advertising. The company uses advanced targeting and retargeting techniques to reach the right audiences and drive sales.

    Overall, Flipkart’s digital marketing strategy is focused on building a strong brand and engaging with customers across various digital channels. The company’s investments in SEO, email marketing, influencer marketing, and performance marketing have helped it become one of the leading e-commerce platforms in India.

    Flipkart Marketing Strategy Leading To Its Success
    Discover the Marketing Strategy of Flipkart: Uncover the Secrets Behind Flipkart’s Innovative strategies and Customer-centric approach.
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    How Does Flipkart Function Exactly?

    Flipkart is an online B2C shopping portal that provides shopping opportunities to Indian consumers. It allows the vendors to sell their ready-to-sell products by giving appealing discounts or sales to its consumers who wish to buy them. The buyers choose the products they want and place an order, and the products are shipped to them. The sellers get an agreed price after deducting some commission for Flipkart’s services that are provided to these sellers.

    Here’s how the company functions:

    1. Sellers list their products: Sellers list their products on the Flipkart platform, providing details about the products, including product images, descriptions, and pricing. Sellers are required to follow Flipkart’s guidelines and policies for product listings.
    2. Customers browse and purchase products: Customers browse the Flipkart website or mobile app and search for products they wish to purchase. They can filter search results based on various criteria such as price, brand, and product category. Customers can also read product descriptions, view product images and reviews, and compare products before making a purchase.
    3. Order placement: When a customer decides to purchase a product, they place an order on Flipkart. The customer can choose from various payment options, including cash on delivery, credit/debit cards, net banking, and e-wallets.
    4. Notification to the seller: Once an order is placed, Flipkart notifies the seller about the order and provides the necessary details, such as the customer’s shipping address and order details.
    5. Product delivery: The seller ships the product to the customer’s address using Flipkart’s logistics and fulfillment network. Flipkart provides various services to sellers, including packaging, storage, and shipping, to ensure fast and efficient delivery of products.
    6. Payment processing: Once the customer receives the product and confirms the delivery, Flipkart processes the payment and deducts the commission and fees from the seller’s account. The percentage commission charged by Flipkart varies depending on the type of product and its sales. It ranges from 5% to 20%, excluding taxes and discounts. This was the basic idea from which Flipkart earned its online place.
    7. Customer service: Flipkart provides customer service support to handle any issues or concerns that customers may have regarding the product, delivery, or payment.

    E-commerce Business Model

    Other Sources of Revenue for Flipkart

    Flipkart generates revenue not just by selling products but has various revenue channels, including:

    • Web Portal: Providing a platform to the sellers, Flipkart charges a commission for all the services given to them, proving to be the basic source of revenue.
    • Listing & Convenience Fee: This is another method of revenue; it charges some amount of listing fee to the sellers and convenience fee to the buyers for fast delivery. The convenience fee also includes the gift-wrapping charges and billings that add up to the total revenue of the company.
    • Logistics: This is revenue collected from the sellers for shipping their products. It provides services to its sellers that are similar to other courier companies. The charges of delivery services vary from place to place and the distance required to be covered.
    • Digital Media: Flipkart sells ads to the sellers or brands as well as various products such as co-advertising, co-branding, etc.
    • Co-branding Opportunities On Flipkart’s Homepage: The slider on Flipkart’s homepage introduces a chance for sellers to advertise their products and launches to the buyers, which get thousands of views.
    • Co-advertised Products Towards Publications: These are ads that are shared by the newspapers and magazines’ front pages and allow the brands to advertise themselves. Suppose a new phone has been launched in the market. Flipkart gets the ad on the front page of the newspaper, and the cost is shared with the brand that has to advertise the product.
    • Target Search Results: This works like when someone searches for a product; Flipkart decides which sellers’ products are to be shown on the top. This is the space that will be solved by Flipkart shortly.
    • Myntra: Myntra is a website owned by Flipkart, which is another online fashion portal that boosts up the overall fashion category of Flipkart. Myntra earns a huge amount of sales on its fashion products and has been measured to be higher than the fashion sales of Flipkart. The revenues earned by the website Myntra are accounted for the total earnings of Flipkart.

    Conclusion

    Flipkart is focusing on bringing back local brands to its platform to improve the buying experience for its users. The business model of Flipkart is all-encompassing and has several revenue-generating streams. Overall, Flipkart’s business model has disrupted the traditional retail industry and transformed the way people shop in India. Its success has inspired numerous other e-commerce platforms to emerge, making it an important player in the Indian economy and a model for other companies to follow. There is a lot to learn from the Flipkart revenue model.

    FAQs

    What is Flipkart?

    Flipkart is one of India’s largest e-commerce companies, offering a wide range of products like electronics, fashion, home goods, and more. Founded in 2007, it allows customers to shop online while handling delivery, payments, and customer service.

    How Flipkart earn money?

    Flipkart makes money by charging a commission on the sale price of the products sold on its platform, as well as fees for logistics and fulfillment services, advertising, subscription-based services, and financial services.

    How does Flipkart differ from other e-commerce platforms?

    Flipkart was one of the first e-commerce platforms in India and has played a significant role in transforming the retail industry. The company’s focus on technology and innovation, customer-centric approach, and strong logistics and fulfillment network have helped it maintain its leading position in the Indian e-commerce market.

    Flipkart is B2B or B2C?

    Flipkart operates on the B2C model (Business-to-Consumer).

    What is Flipkart Plus?

    Flipkart Plus is a loyalty program that offers various benefits to its customers, such as free delivery, early access to sales, and more. The company generates revenue through Flipkart Plus subscriptions and by offering exclusive deals and promotions to its members.

    How does Flipkart handle customer complaints and returns?

    Flipkart has a dedicated customer service team that handles customer complaints and queries. The company also has a flexible returns and refund policy that allows customers to return products within a specified timeframe if they are not satisfied with their purchase. Flipkart also provides various options for customers to contact customer service, including phone, email, and live chat.

    How has Flipkart impacted the Indian economy?

    Flipkart has had a significant impact on the Indian economy, particularly in the e-commerce sector. The company has created numerous job opportunities, both directly and indirectly, and has helped many small and medium-sized businesses reach a larger customer base. Additionally, Flipkart has contributed to the growth of the digital economy in India and has played a key role in transforming the traditional retail industry.

    What are the top competitors of Flipkart?

    Flipkart faces strong competition from other e-commerce platforms in India. Some of the top competitors of Flipkart are Amazon India, Snapdeal, Paytm Mall, Jabong and more.

    How Flipkart works?

    Flipkart works by connecting buyers and sellers online. Sellers list products on the platform, buyers place orders, and Flipkart handles payment, delivery, and customer support.

    What is Flipkart business model?

    Flipkart operates on a B2C marketplace model, where it connects sellers with buyers through its online platform. Sellers list their products, and Flipkart manages orders, payments, and deliveries. It also follows a partial inventory-led model for certain products. The company earns revenue through seller commissions, advertising, logistics services, and direct product sales.