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  • Why Did Foodpanda Failed and What Entrepreneurs Can Learn From It?

    Online delivery apps are doing really well. In a world where we all are constantly online and searching for a lot of information, it has become a normal activity to order online. Companies like Amazon, Flipkart and others are now going to the marketplace for every millennial. They are easy to use, convenient to scroll and a heaven for the shopaholics. They are so easy and convenient that people today are getting addicted to the technology of online delivery. This newfound business is doing really well as the whole economy is shifting to a digital place. Everything is online, choosing an item, its delivery tracking and the payments for the same.

    Not just that, entrepreneurs from all over the world then thought of inventing further in the direction. Some geniuses thought to deliver food. It was not considered a good idea in the beginning, but as people gave feedback and the delivery services improved, the idea started to seem a viable option. Then it struck, and many companies emerged to deliver food to the public.

    There was Zomato, Swiggy, Foodpanda and the likes. All of them competed for one single thing, the largest market share in the food delivery sector. As the competition for market share transformed into a war, it became necessary for some companies to vanish. This competition led to the death of many food delivery companies and led many companies to go bankrupt. One of the companies that vanished from the market was Foodpanda. This article talks about the company and what were the reasons for its failure. Let us see the story in words.

    A Little Brief About FoodPanda
    The timeline of FoodPanda
    Why Did Foodpanda Fail in India?
    Lessons Entrepreneurs Can Learn From Failure of Foodpanda

    A Little Brief About FoodPanda

    People love convenience and why won’t they? Everyone wants convenience at their doorstep and this is why it is a massive opportunity for companies to scale themselves. Food delivery is a massive convenience for people in our society.

    Foodpanda is one of the startups that aimed to deliver food to people in a convenient manner. Not just that, Foodpanda also delivered all sorts of grocery items to its users. It is an online food and grocery startup that was owned by Delivery Hero. It has a good stronghold in Asia and the headquarters lies in Singapore. As of now, it is the largest food and grocery delivery platform in Asia. It operates in about 12 markets in the continent of Asia.

    The Timeline of FoodPanda

    Foodpanda’s business strategy is an interesting read. We can learn a lot of lessons from the business line of Foodpanda. Before we go into the details of how Foodpandafailed, it is important that we know something about the timeline of Foodpanda. Here we will be looking at the humble beginnings of the company and how it went through various acquisitions on the line.

    In early 2015 the company bought full stakes in a company called, TastyKhana. Along with that, the food delivery platform Foodpandaalso gained control of Just Ear India, which was a food ordering portal.

    These were some moves that the company pulled off to increase revenue and scale of the company. The efforts did not really affect the revenue and the company even had to lay off 300 employees by the end of 2015.

    The time was tough for Foodpandaas the company even faced allegations of malpractices. There was news that mentioned Foodpandaas a non-paying restaurant service provider and there were also allegations of fake listings. At that time, the food delivery platform was based out of Gurugram and was spread across 200 cities in the country. That was a tough year, and the next year, that was 2016, Rocket India was looking for a buyer for the company. They set the price really low, at about 10 to 15 million dollars.

    A year later, in 2017 the food delivery business was acquired by Ola for a 100 percent equity and that too at a valuation of around 40 to 50 million dollars. Ola further mentioned in public that the company will further invest 200 million dollars to revive the company and make it work sharply.

    After this happened and the company started to work slowly but efficiently, they began offering discounts to lure customers to use Foodpanda. Efforts gained some momentum and people started to recognise this as a good platform to order food.

    By the end of August 2008, Foodpanda had reached 2 lakh orders per day of operations. It was a huge feat for the company and the stakeholders of the food delivery platform. But soon enough, clouds of uncertainty covered the sky.

    Next year, that was 2019, the magnitude of the orders dropped to 5000 per day, in the middle of the year. Reacting to this, Ola made a decision to stop the loss that they were expecting in the near future. Ola, the owner of Foodpanda suspended its operations in the middle of the same year. They also fired some 1500 delivery partners or delivery executives from their job to cut the expected loss in the food delivery venture.

    After that time, it is said that Foodpanda existed in a form of a cloud kitchen. A cloud kitchen was a term coined when Foodpanda acquired a company called “HolaChef” in October 2018. A cloud kitchen refers to a kitchen that is cloud in nature, which means that they only make food and they outsource the delivery and other services out of the kitchen. As a cloud kitchen business, they had three private label brands under them. In 2019, Notable names of sub-brands included FLRT and The Great Khichdi experiment.

    Why Did Foodpanda Fail in India?

    At its inception, the company was doing well, making a name for itself and was also working towards building a good brand value. By now we discussed the starting and the ending of this company which delivered food to its consumers. By now you must be wondering how the company failed. After we have thoroughly discussed the timeline in which the company operated, it is now time to see some reasons why it failed. Here we will be listing some of the most common and seen ways or reasons that failed Foodpanda as a food delivery company. These pointers are not just mistakes of Foodpanda but checkpoints for every entrepreneur trying to set up his venture.

    If you only look at the successful ventures, you will most probably be looking at fifty percent of the whole story or probably less. So, let us see why the company failed and then we will further discuss some precautions that could have saved the company.

    Now, Foodpanda was a big company, not just looking at the capital invested but the number of employees and the scale of operations was huge. Small leaking can play a big role in sinking the ship of Foodpanda but there were mostly massive issues and blunders.

    Before we discuss all the factors that lead to this downfall, let us list some of the factors that lead to this situation. There was no single factor that failed Foodpanda, in fact, there were multiple reasons. Those reasons include fake restaurants and orders, technological issues and disorganised business models, lack of leadership and massive miscommunications.

    Miscommunications

    There was a massive miscommunication issue that went on in the company. According to a report, the company’s workers were saved from the fact that the owners have left the company. Key people like Rohit Chadda and Mohit Chadda left the food delivery business back in August 2016 and for a long time, employees were not informed about this development. It was later in time when the issue magnified itself and presented itself as a massive hindrance to profitable operations.

    The company employees and workers had to face customers and calls from clients about bad operations. When they are unable to deliver food, they have to comprehend their service with free vouchers. Which was a hit to the profitability of the company. From all the instances above, we can notice that the company was suffering massive communication errors and blunders. Due to this, not only The operations were affected but the credibility and profitability were also affected.

    Fake Orders and Lack of Proper Procedures

    In another set of events, there was news that broke out. In May 2016, a fast-food chain, hailing from Mumbai ended its partnership with Foodpanda. The company complained that the food delivery partner owed the delivery service company payment of one and a half lakh.

    It was also mentioned that Foodpanda was delaying the payment without properly explaining the reasons for such delays. After the investigation, it was found that there was no record of such a transaction in the books of Foodpanda. This was a massive blunder that was taken into notice.

    To quote another instance of bad governance, we can look at the Tasty Khana case. Tasty Khana was a venture around food delivery, which was based out of Pune and was acquired by Foodpanda in 2014. The founder of TastyKhana, Shachin Bharadwaj mentioned that he was not satisfied with how the work and operations were done at Foodpanda.

    He also mentioned some reasons why he disliked the operations at Foodpanda. Reasons include no check for fake orders, lack of proper procedures in place, and financial irregularities.

    Documents with crucial data were accessible to everyone and there was mismanagement at almost every second step of operations. These points came right before the downfall started and was a surety factor of the failure of this company.

    Failed to Technologically Upgrade

    In the decade when every company moved to digital ways of doing business, Foodpanda’s shift was not strong and effective enough. Believe it or not, every company on the globe is shifting to become a technology company first and then the company which it intends to become.

    In the case of Foodpanda, they did change for the better but couldn’t follow up with the demands of a digital-centric consumer. The app was not up to the mark, there were restaurants listed that did not even exist and the whole plan of retaining customers was flawed.

    Poor Management

    Another reason was poor management, which is also a repercussion of poor communication and predictions. Customers and restaurants who were connected with the delivery company would often argue about the bad service that they provide.

    Customers had a rash experience talking to their delivery partners and delayed delivery reasons. Every enquiry that the customers made was a hit on the management team of the company. This was another reason for miscommunication which led to a vicious circle of ineffectiveness and blunders.

    Foodpanda even failed to capture all the orders that were placed for them, they were also unable to communicate cancelled orders to their restaurant partners which created a ruckus for both the parties. Using the current latest technology available, the company could not figure out an optimum and smooth customer experience, for which they had to pay a price in the future.

    Rohit Chadda, the co-founder and the MD of Foodpanda also founded another venture with the name, Ziner. In 2014 the website of Ziner showcased dates that were ditto the same as the Foodpanda servers and website. This action from the team was eyebrow-raising.

    Later in a notice, Chaddha mentioned that no data has been taken from Foodpanda, and this is a totally different venture, not relating to the other venture that he had undertaken in the past. The company founded by Chaddha has made over 300 million dollars in sales from clients like Rocket Internet and Goldman Sachs since 2012.

    More than a hundred employees from various cities left the business at Foodpanda. The resignations include those from Delhi, Mumbai, Pune and Gurgaon, when asked about the reasons for leaving the food delivery company, they stated poor management and lack of transparency of the company which posed a negative image for the company.

    Lessons Entrepreneurs Can Learn From Failure of Foodpanda

    There was no simple point according to the facts that prove efficiency and effectiveness in the culture of Foodpanda. Nothing worked properly up to the expected point. These loopholes can be used as a guiding light for people who are willing to amend problems and make solutions.

    There was no authority figure when this food delivery company was operating but we can now take some valuable lessons. Here we are going to list some useful advice and tips that we can learn. Let us see what are these checkpoints.

    A Proper Framework

    As the founder of Tasty Khana mentioned that the company had no sense of operations, it was a lesson right there. A proper structure of things is important, that framework has to be well built and has to be made better through iteration.

    This involves getting points on how to run a business and determining the best and most effective/efficient way of running it. The framework that we discussed just now should also essentially meet the business plan of the whole organisation. This is what good corporate governance looks like.

    Strong and communicative management is crucial too. Marketing is important but if a company only focuses on pure advertising and does not look toward building a good user experience, it will cease to exist. In this segment of business, both customers and restaurants suffered from the inability of food panda and thus, the venture failed to produce desired results.

    Communication for Structuring

    At Foodpanda, this was the centre of all issues. Employees and the management did not communicate enough. Moreover, when repercussions happened and the company faced obstacles due to bad communication structure, even then no step was introduced to improve communication.

    It was a clear sign that the company is not going to survive much. The customers, the listed restaurants and the people at Foodpanda were involved with a lack of communication which resulted in a bad working environment. No framework or strategy worked in the culture at food panda due to the lack of communication, which was the centre of the storm. This ruffled feathers of restaurants, and most consumers who shifted to other delivery apps.

    Ownership Story

    The founder of the company Foodpanda left their business and went out. Rahul Chadda and Mohit Chadda were the founders of the company which provided the company with their vision and started a venture. Their vision was worked upon as the company grew its scale but then this happened.

    Both the founders left the company and as soon as they left, the vision of the company blurred. This blur in vision caused much trauma for the culture of food pandas. This effect was magnified with less or no communication at all. Adding to this, the founders did not even do anything to better the situation. They simply left with no scope for improvement. When Ola bought the company, they were unstable themselves and they also couldn’t figure out the work that needed to be done with Foodpanda. We all know the end and the story of the downfall of this venture.

    The business world operates with a steering wheel of risk. There is volatility in every aspect of every business. There will be market conditions that you will not be able to handle but there are always options to edit the internal environment that suits the outside.

    Good internal control and management will go a long way in making a venture successful. The future is uncertain but in the face of that uncertainty, there can be some certainty, which can be bought by sheer work and commitment to building a solid culture at work.

    Foodpanda failed in many aspects in building a good inside culture. There were communication issues, there were ownership issues and much more. All these holes in the workings led to the downfall of such a big organisation and these little leaks sank the ship of the food delivery business. This massive failure can be one of the biggest learnings an entrepreneur can take and step forward in the direction of success.

    We can learn that it is really important to frame the culture at your workplace. It is extremely crucial to document everything and do everything systematically. Even if these suggestions bring little certainty in the world of uncertainty, this is a really good deal.

    Conclusion

    Online delivery companies are really doing well. They are probably the backbone of the internet economy. In such a big market, every entrepreneur is trying to put their hands on to get some profits out of the flowing water. This delivery ecosystem has emerged as a new form of a sector that is food delivery. We discussed how there are many key players in the sector who are doing really good. Food panda was one of the popular names among the food delivery apps. The company was doing well until some blunders crept into working for the company.

    We discussed that the company was incurring big mistakes in the department of communications and operations. There were issues on the behalf of the ownership of the company, key people, like the chief executive officers, left the company without properly framing the workings of the company. Many of the companies which were acquired by food panda disconnected from the board as the working was not efficient.

    From all the blunders that the company did, we can learn a lot. Every entrepreneur who wishes to set up his own venture has to read this story of a food panda. The entrepreneur can then value the power of good communication and teamwork. It is really important to understand the value of culture at work. Culture is what sets the tone of efficiency. If the company and the entrepreneur do not work towards setting up a great culture, no other accomplishments can be achieved.

    In the end, the story of the Foodpanda, from its arrival to its peak to its downfall is a really important case study for budding entrepreneurs. Failures happen so that we can learn from them and a smart person is a person who learns from other people’s mistakes.

    FAQs

    What happened to Foodpanda in India?

    Foodpanda entered India in 2015 to capture the food delivery market but failed to do so, later in 2017 the company was acquired by Ola for a 100 percent equity at a valuation of around 40 to 50 million dollars.

    Is Foodpanda working in India?

    No, Ola suspended the operations of Foodpanda in 2019 as it was facing a huge loss.

    Who bought Foodpanda in India?

    Ola acquired Foodpanda in 2017 for 100 percent equity at a valuation of around 40 to 50 million dollars.

  • What Is Bharat Founders Fund and How to Raise Funds From Them?

    Done with all gossip involving Shark Tank judges and Contestants. Let’s move ahead to the new talk of the town and the biggest venture of 50+ investors all working for providing better support to future entrepreneurs.

    According to the Economic Survey 2021-2022, India has become the third-largest Startup Ecosystem In the World. There are more than 70,000 startups in India with 93 Unicorns. Unicorns are companies having a valuation of more than $1 billion. With the growing numbers of startups, the government plans to provide better facilities to them.

    However, starting a startup and leading it to the road to success are two different things. The government does provide better services for starting a startup. Yet, guiding a startup toward success can only be done by someone insightful. To process the needful, a group of Investors mostly successful entrepreneurs and senior leaders, came together under the brand name of Bharat Founders Fund.

    What is Bharat Founders Fund?
    Importance Of Bharat Founders Fund
    List of Companies Bharat Founders Fund Has Invested In
    How to Raise Funds From Bharat Founders Fund

    What is Bharat Founders Fund?

    Bharat Founders Fund (BFF) is an early age venture of 50+ investors looking forward to supporting startups. The group of investors includes successful entrepreneurs and senior leaders.

    Amongst them, some popular names are Vidit Aatrey and Sanjeev Barnwal, co-founders of Meesho; Gazal Kalra, co-founder of Rivigo; Cars24 co-founders Vikram Chopra, Mehul Agrawal, and Gajendra Jangid; Smita Deorah and Sumeet Mehta of Lead School; Vamsi Krishna, co-founder of Vedantu; and Saurabh Garg, co-founder of NoBroker.

    The tagline of Bharat Founders Fund is “By today’s leading founders, for the next generation of founders“. The BFF is a group of successful Indian entrepreneurs globally looking forward to investing in early-stage ventures and providing them with backup support for building a future Bharat.

    Bharat Founders Fund has its target of funding 100 companies each year. BFF has an approximate target of spending $20 million on investments with the spending of about $1,00,000 – $2,00,000 on each startup. The startups selected by BFF can be in their early form of an idea and then can be nurtured through the efforts of the BFF team and startup leaders.

    The Fund and its process will be managed by Investopad partners Maanav Sagar and Sera Arora.

    Investopedia is a firm helping startup leaders get where they are going by providing them with needed support from investors and mentors.

    “The idea is to help these companies get access to the best mentorship and interact with a wide portfolio of our venture partners who have built successful startups,”, expressed Maanav Saagar on his thoughts on BFF ventures.

    Importance Of Bharat Founders Fund

    India is in its leading position for the introduction of startups. However, there is some lack of knowledge noticed when it comes to the subject of developing a startup. The best possible help for such situations can be mainly provided by the one who travelled the same path. Funds are another issue faced by startups. To help newly booming startups with funds and guidance, Bharat Founders Fund can be trusted.

    “Today, founders and senior operators in a startup have created wealth through either successful exits or employee options (ESOPs) and are actively looking to give back and invest in startups. Bringing these founders together as venture partners will allow Bharat Founders Fund to connect its portfolio companies with senior startup operators which have the experience of taking an idea (or business) from zero to one,” expressed Sera Arora in an interaction with ET.

    Apart from funding a startup, the Bharat Founders Funding team will be releasing playbooks at some intervals. These playbooks can be taken as a source of overcoming some

    List of Companies Bharat Founders Fund Has Invested In

    As per the recent updates, BFF has already invested in 20 companies. The list of companies is:

    • Skillbee-  A job offering platform.
    • Admit Kard-  An EdTech Startup.
    • FIXCRAFT- A car service center.
    • Yellow Class- A new-age learning platform.
    • Schmooze- A dating app.
    • Zorp- A software developing platform.
    • Wegot- An IoT-based water management startup.
    • Basic Home Loan- A Fintech company startup.
    • Convin- A conversation intelligence software startup.
    • Little leap- An online development platform.
    • Bliss club- A Women’s activewear brand startup.
    • Qube Health- A mixture of Fintech and Health Tech platforms.
    • Vaya- A financial service providing platform.
    • Wealthy- A Financial service platform.
    • Cloudchef- A Enterprise service company.
    • Looppanel- A conversation intelligence tool.
    • ThisDay- An internet publishing platform.

    How to Raise Funds From Bharat Founders Fund?

    Bharat Founders Fund is made to invest in early-stage companies with potential ideas. There are no proper eligibility criteria for any startups to look for. The Bharat Founders Fund will accept startups from all sectors as long as it catches the eyes of investors.

    One can easily contact Bharat Founders Fund by filling up the form on the website bff.investopad.com with the needed details.

    Bharat Founders Fund Form
    Bharat Founders Fund Form

    “We would like to invest and enter a company as early as possible. The idea is to help these companies get access to the best mentorship and interact with a wide portfolio of our venture partners who have built successful startups,” explained Maanav Sagar.

    After funding the selected startups, investors will not lead their way to become the board members, instead, they will provide necessary decisions when required. The investor can hold the power to change or appoint a director when required.

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    Conclusion

    Bharat Founders Fund is one of the biggest collaborations done by taking 50+ successful entrepreneurs and senior leaders on its team. They look forward to investing in potential startups and providing the needed support to startup leaders. The estimated amount to be spent on investments is around $20 million. BFF plans to invest in 100 companies each year.

    FAQs

    What is Bharat Founders Fund?

    Bharat Founders Fund is a venture capital firm founded by 50 successful entrepreneurs of India. Some of the entrepreneurs are, Vidit Aatrey and Sanjeev Barnwal, co-founders of Meesho; Gazal Kalra, co-founder of Rivigo; Cars24 cofounders Vikram Chopra, Mehul Agrawal, and Gajendra Jangid; Smita Deorah and Sumeet Mehta of Lead School; Vamsi Krishna, co-founder of Vedantu; and Saurabh Garg, co-founder of NoBroker.

    How to raise funding from Bharat Founders Fund?

    You have to fill out a form on bff.investopad to reach out to Bharat Founders Fund.

  • How Google’s Wing Will Revolutionise Drone Delivery?

    Our world is nothing less than a Sci-Fi movie, thanks to the technologies among which we are living and also those that are getting invented.  Every day we get to see new technological inventions to make our life easier. Twenty years ago no one would have believed that we would get our delivery packages through a kind of robot that can fly and can be controlled by a remote. In the present time, it is the reality.

    Technology has evolved in such a way, that nothing seems impossible now. From robots to drones every invention is coming in handy these days. In this article, we will talk about Google’s Wing and how it is going to change the way of drone delivery. So let’s get right into the business.

    “Drones can be useful tools, and I am all about useful tools. One of my mottos is ‘the right tool for the right job.” -Martha Stewart

    What Is Drone Delivery?
    Benefits of Drone Delivery
    What Is Google Wing?
    How Google Is Revolutionising Drone Delivery Service?
    Current Situation of Drone Delivery
    Top Companies Providing Drone Delivery Services

    What Is Drone Delivery?

    As mentioned before, a drone is a small aerial vehicle that can be controlled by a remote or software-controlling system and doesn’t need a human pilot to function. Now, coming to drone delivery, it basically means delivery done through these aerial vehicles. Drone delivery is used to deliver small packages to consumers. With the help of these drones, groceries, takeaways and medicines can be delivered.

    The drones used in this process consist of batteries that are rechargeable and also have 4 to 8 propellers. These drones can be controlled by AI technology or remote and they have some unique features as well.

    These drones are capable of avoiding collisions while flying with other drones; they have smart landing technology and navigate their way to the said location without any problems.

    Benefits of Drone Delivery

    The evolution of technology has led to a position that now you can receive your delivery through an aerial vehicle but the reason why people are getting interested in this is because of their benefits. Some of the benefits of Drone Delivery are:

    • These deliveries through drones can be lower costs.
    • They are quite efficient and delivery can be done without any bumps on the roads, literally.
    • The delivery can be fulfilled instantly as it takes less time.
    • It is environmentally friendly as natural fuels are not needed for the fulfilment of the operations.
    • The number of accidents will be reduced on the road if drones are used for deliveries.

    What Is Google Wing?

    Google’s Wing is mainly a subsidiary company of Alphabet Inc. that provides drone-based delivery technology to its customers. The company was founded in the year 2012 and the first drone delivery was successful in the year 2014.

    Google Wing
    Google Wing

    The Wing is offering delivery drone services through which one can shop from the nearby stores in their cities and get their packages delivered to them through drones in just minutes. This is not only making buyer’s life easier but also helping local businesses.

    How Google Is Revolutionising Drone Delivery Service?

    The first and foremost aim of Google Wing is to make this service available for everyone and everywhere. They are trying to make a drone delivery system in a way that anyone can get access to the drone delivery option and drones can be used to deliver packages anywhere. Through this service, Wing is mainly trying to empower small local businesses.

    There are various companies apart from Google that are providing drone delivery services. However, not everyone is able to fulfil its promises of delivering packages successfully and at a perfect time. The wing is transforming that, it is successfully delivering packages on time. Wing can be seen operating in the cities of Australia like Canberra and Logan, in the cities of United States and in the city of Helsinki which is in Finland.

    Now one can get their delivery from shop to directly their homes with the help of drones. Wing has already completed its 100,000 delivery milestone in the year 2021.

    With the ongoing pandemic, Wing not only is helping in keeping the virus from getting spread but also it is good for the environment as well as natural fuels or gases are not being used. The wing is about to launch its service in Dallas-Fort, USA, where a number of suburban homes can be found. The wing is said to complete 1000 orders per day.

    Current Situation of Drone Delivery

    As per reports, almost 2000 drone delivery is happening every day around the world. Apart from small packages, drones are delivering vaccines, medical supplies, food, electronics and even blood transfusions.

    Drone delivery companies are said to receive over $1 billion in funding combined in the past few years. With the sword of Covid-19 hanging around our neck, the concept of social distancing is still here. Therefore, drones are coming in handy in this situation. By 2026, the drone delivery market is expected to reach $5.6 billion.

    Top Companies Providing Drone Delivery Services

    Apart from Wing, there are a few companies that are providing drone delivery services to their customers and they are:

    Amazon

    Amazon launched its drone delivery service called Prime Air which promises to complete the delivery in just 30 minutes. It has already received approval from Federal Aviation Administration (FAA).

    Fed-Ex

    This US-based company collaborated with Wing to fulfil the delivery orders of e-commerce and logistics with the help of drones.

    UPS Flight Forward

    This one is another US-based company that came into existence in 2019 and is offering drone-based delivery.

    DHL

    DHL collaborated with EHang, one of the biggest and world-known AAV companies to deliver packages through drones in some cities of China.

    Flytrex Aviation Ltd.

    Flytrex first launched its services in Iceland and it delivers food from restaurants and medical supplies as well. Flytrex is based in Israel.

    Drone Delivery Canada

    This drone delivery Service Company is based in Canada and provides its service to various sectors like E-commerce, healthcare, pharmaceutical and others.

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    Conclusion

    Drones itself is a magnificent technology that is bringing a revolutionary change in the delivery industry of the world. And it looks like Google is all set to revolutionise drone delivery services with its Wing. It will be exciting to see how Wing will transform the last-mile delivery services. Some of the top companies are also including their name in providing these services to their consumers. It is just a matter of time before drone delivery service will become one of the prime ways of delivery.

    FAQs

    Does Google own Wing?

    Wing is a subsidiary of Google’s parent company Alphabet. Wing is a company that provides drone delivery services.

    Do Wing drones have cameras?

    Yes, Wing drone does have cameras that are low res black and white cameras used to navigate and avoid obstacles.

    Where does Google Wing deliver?

    Google Wing is currently operating in 3 countries Australia, the US, and Finland.

  • How Are Startups Getting Affected by Rising Fuel Prices?

    The pandemic has hit the Indian economy hard. Consumer demand has fallen drastically and the supply side of the market has become vulnerable to shocks and crunches. But it’s not all for these entrepreneurs. The latest addition to their list of woos is the ever-increasing price of petrol, which is a key manufacturing ingredient for many chemical and pharmaceutical processes and the backbone of energy-driven service startups.  

    The price of petrol has galloped upwards through 2020 and touched all-time highs in June 2021. The government has sighted several reasons for this hike in petrol price but all those claims have been shot down by independent policy experts and economists, who claim the real factor behind this meteoric rise in the price of petrol is the indirect tax levied on it by the Government of India.

    Several economists, energy policy experts, and trade have requested the government to reduce this indirect tax on petrol to help increase the profitability of these already hard-hit startups and these requests have been backed by the State Bank of India (SBI) and Reserve Bank of India (RBI) in their annual and quarterly evaluations. Now, let’s have a look at the impact of the rise in petrol prices on startups, in a sector-wise manner.

    Impact on Startups In the Logistics Sector
    Impact on Startups in FMCG (Fast Moving Consumer Goods) Sector
    Impact on Startups in Appliances Industry
    Impact on Startups in the Pharma Sector
    Impact on Startups in the Core Manufacturing Sector
    Impact on Startups in the Doorstep Service Industry

    Impact on Startups In the Logistics Sector

    The logistics sector is one of the hardest-hit sectors in the current economic scenario. The pandemic and rising fuel prices have helmed the conquest against this sector and have succeeded in closing doors for many budding startups and as well well-established companies.  

    With the increase in diesel and petrol prices, the startups in the logistics sector have been forced to increase the cost of their services to just breakeven and this, in turn, has led to shrinkage in demand.

    Freight owners have complained about the lack of two-way cargo trips and how it has affected their profit model and them vulnerable to losses. Overall, the country’s mobility has been hard hit by this upward climb in the price of petrol.

    The Reserve Bank of India has cautioned the government about the same in its reports on the Indian Economy and the depressionary spiral that the startups and MSMEs of this sector have become prone to, following the price of petrol and other energy commodities like diesel.

    Impact on Startups in FMCG (Fast Moving Consumer Goods) Sector

    Fast Moving Consumer Goods can be defined as products that are sold quickly over the counter and are bought by most consumers, irrespective of their preferences like biscuits, candies, medicines, etc. Due to the steady demand for these goods, the goods have to be shipped continuously to maintain the supply.

    The startups here have faced acute problems with the rise in fuel prices. Due to increased freight costs and distribution costs, the cost of the products has gone up, which has led to the shrinkage of demand for the durable goods produced by these startups.

    All this increased distribution has caused the firm to not even break even and decimated its profits. Also, like fuel is a key ingredient in meeting the energy demands of the production plants and some manufacturing processes, the inflationary push has caused extra trouble for the startups in the FMCG sector.

    Impact on Startups in Appliances Industry

    Currently, this sector is valued at 85,000 crores, and alone the domestic appliances sub-circuited is estimated to be 35,000 crores. The sector used to be one of the most thriving playgrounds for startups. But the increase in manufacturing and transporting costs owing to an increase in fuel prices have hard-hit many budding startups. Also, this increase in petrol and diesel prices has caused a cost-push in raw material, component supply, and operational costs.

    Impact on Startups in the Pharma Sector

    The pharma sector is no stranger to the hardships of increasing oil prices. Petrol and diesel play a huge role in the manufacturing aspect of this industry. The rise in the cost of fuel has, in turn, raised the cost of petrochemical raw inputs and the cost of operating the manufacturing unit.

    Also, to maintain a steady supply of drugs in the markets, startups here have to maintain well-equipped fleets of freights. With the rise in the cost of petrol and diesel, the cost of maintaining and distributing the product through such a logistic mechanism has become excruciatingly expensive for startups to maintain.

    Crude Oil Price vs Retail Price
    Crude Oil Price vs Retail Price

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    Impact on Startups in the Core Manufacturing Sector

    The core manufacturing sector acts as the backbone of our economy. Being on the most thriving playground for MSME startups, this sector has become the subject of many complex backlashes and ripple effects that accompany an increase in the price of an essential energy commodity like petrol.

    The cost of production and maintenance of plants has shot up rapidly with the increase in fuel price. Petrochemical components have become costlier, along with the logistic cost of acquiring these key components of the manufacturing process.

    The transportation cost of the finished product and distribution cost has pushed the market price to rise to combat the effects of the rise in diesel price. However, this increased shelf price has been met with a rapid demand shrinkage, which has put this sector in a difficult economic spot.

    Impact on Startups in the Doorstep Service Industry

    The doorstep service industry relies on the commitment to procure and provide already available services at the cheapest rate possible. The increase in petrol price has become a great impediment for the sector, as the logistic costs have risen sharply.

    In the past few years, several internet-based startups have come up in this sector, but today most of them have had to close shop and the remaining strive hard to break even. Many economists suggest, that if the fuel price rises any more, the valuation of this industry can fall greatly, and most startups will fail to maintain their business model in the long run.

    Conclusion

    Thus, we can conclude the rampant increase in petrol price has a detrimental effect on the startup atmosphere of the country, irrespective of whichever sector they belong to. A further surge in petrol prices may become the key reason for the closing of startups in the coming months. However, it can be expected that the government will pay heed to the petrol price policy advice given by the apex bank, and eminent economists and reduce the petrol price to create a more business conducive atmosphere.

    FAQs

    What is the effect of the increase in the price of fuel?

    The rise in fuel price affects the price of other essential goods as the transport costs increase. It also leads to inflation which affects businesses.

    Will higher fuel prices lead to inflation?

    Yes, higher fuel prices lead to inflation as the fuel price impacts all the goods and services.

  • Top 4 Marketing Strategies of Cure.Fit [Case Study]

    Cure.Fit is a health and wellness startup based in Bangalore founded in 2016 by Mukesh Bansal and Ankit Nagori. However, the latter left the company in October 2020. Cure.Fit distinguishes itself from other players on the market by using a mix of online and offline platforms to direct its preventive health philosophy through interaction, coaching, and delivery.

    The company initially started at HSR, Bangalore with one fitness center. Today it operates more than 100 centers in the city of Bangalore and has also expanded to other cities.

    The multiple services of Cure.Fit, including Eat.fit meal delivery has hooked millennials to healthier habits and food. The mobile application that Cure.Fit offers has an integrated framework that promotes healthier lifestyles and mental health.

    After a rebranding attempt, Cure.fit has changed the name of its “Cure.fit” app to “Cult.fit”, as of May 11, 2021. Cure.fit has turned into a unicorn startup, valued at $1.56 bn, on November 10, 2021, thus becoming the 36th unicorn in 2021 and 77th unicorn overall in India. The company was reviewed as a unicorn after a cross-selling deal with Zomato, where the fitness brand acquired the fitness arm of the foodtech giant, Fitso for $50 mn and infused another $50 mn.

    Cure.Fit Business Model
    Marketing Strategies of Cure.Fit
    Expansion Plan of Cure.Fit
    A Look at the STP of Cure.Fit
    How does the brand engage its users?
    Acquisitions of Cure.Fit
    Campaigns of Cure.Fit
    Customer Feedbacks of Cure.Fit

    Cure.Fit Business Model

    Being a health-tech startup, Cure.Fit has rather witnessed an exciting and unique journey whether it is the funding or the expansion of the company, which we will discuss later on in this article when compared to that of other health-tech startups of the country.

    The company’s funding was always deeply rooted, which began with the rounds of biggies like Axis and HDFC and was complemented with Flipkart, Myntra, and the latest round where the company raised around $75m from Tata Digital. The brand has successfully raised over $479.6M in a total of around 10 funding rounds. Furthermore, Cure.Fit has also acquired a handful of companies like Tribe Fitness, a1000Yoga, and Kristy’s Kitchen, which helped in further expansion of the brand. Its recent acquisition was TREAD.

    With its innovative marketing plan that comprises unique campaigns and other promotional ventures, the company is now operational with more than 180 fitness centers across the country.

    At the core of the vision of Cure.Fit lies holistic health and well-being, which the brand wants to make easily accessible to people all around the nation. To make it possible Cure.Fit has an unshakable focus on the mind, body, and nutrition of their consumers and others.

    Though the original business model of the company mainly focused on gyms, healthy foods, and health clinics, their model also included online/digital fitness sessions after the pivot, which is effectively leveraged after the COVID-19 outbreak. To sum up the business model, it consists of four pillars or platforms that are built to empower a healthy lifestyle. Cure.fit also has a mobile application that offers an integrated platform to bring in healthy lifestyles and holistic cure, concerning fitness, food, and mental well-being:

    Cult.Fit

    With the assistance of the best class trainers and group workouts, this section of Cure.Fit is built to make exercise enjoyable and easy. It can be done as a group class at a Cult.Fit center and at home with the help of DIY videos.

    Cult.fit became a popular fitness brand over the years and no less than a market leader that was synonymous with success. As a result, Cure.fit had further aimed to expand their own brand under a single, popular banner, “Cult.fit”. Cure.fit now has been rebranded as Cult.fit, effective from May 11, 2021, onwards.

    Cult.Fit had acquired Gold’s Gym by picking up a majority stake in F2 Fun & Fitness India Pvt Ltd.

    Mind.Fit

    This section includes mental fitness solutions. It provides different practices such as yoga, meditation and care. Whether it’s stress and anxiety management, better sleep quality or focus improvement, or combining your body-mind, there are many formats to suit the needs of the users.

    Care.Fit

    By providing physician consultation in its health centers via video conferencing. This platform provides basic health care needs. It provides high-quality facilities such as in-house pharmacy and medical services, health monitors, ultrasound systems, ECGs and diagnostic test packs.

    Eat.Fit

    This platform offers fresh and delicious food which is nutritious and is prepared with special care to keep it healthy. There are a range of food and menus to choose from when offering healthy and conservative-free items.

    Cure.fit acquired the 10th position in the highest funded startups in 2018. However, Eat.fit was declared a separate entity after it spun off its parent Cure.fit on October 1, 2020. This was done because of the rising demands, as mentioned by Cure.fit. Varun Dhawan is the face of the flagship brand of Curefoods, Eat.fit.

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    Marketing Strategies of Cure.Fit

    Content Marketing

    In a very short time, Cure.Fit has attracted a large number of viewers because they answer consumer questions and link consumers to the brand. Cure.Fit creates material such that influences consumers to buy their services.

    Social Media Marketing

    Cure.Fit wins the people’s hearts through its committed sharing of content. Cure.Fit exactly understands who its customers are and produces persuasive content.

    Cure.Fit aims at reaching people who want to lead a balanced and fit lifestyle seriously with 3.5 Lakh followers on Facebook and Instagram. It uses the platform to provide up-to-date information, to submit invitations for events, posts, imaginative posts, tips and recipes for healthy food and drinks, customer reviews, etc.

    Offline Marketing

    Along with leveraging the cutting-edge technologies to gear up their marketing initiatives embracing the digital ways, Cure.Fit has also made space for marketing offline as well. The company has opted for active radio channels where they assign their fitness experts to conduct talk sessions.

    Influencer Marketing

    Cure.Fit has developed a strategy for influencing the promotion of its releases to promote new goods. The brand collaborated with many inspiring figures from around the world, including Hrithik Roshan, Milind Soman, Tiger Shroff and Sindhu, as well as other prominent athletes. Hrithik Roshan has also signed a five-year agreement with his brand ambassador Cure.Fit.

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    Expansion Plan of Cure.Fit

    Cure.Fit has witnessed a considerable growth in the health and wellness sector in the past years and it gets a renewed boost with Tata Digital signing an MoU to invest up to $75 million on June 7, 2021. Mukesh Bansal, Founder and CEO of Cure.Fit will join Tata Digital as President, according to the strategic deal that both the companies are looking forward to.

    The expansion plan of Cure.Fit as clearly laid by the company includes:

    • Introducing a ready-to-eat category
    • Bringing a whole new range of workout apparel and equipment
    • Introducing the facility of online doctor consultation
    • Help in the consultation of super-specialists online for you and your family
    • Reaching 20 cities encompassing 200 outlets in 2022

    A Look at the STP of Cure.Fit

    Cure.Fit segments its buyers to urban and rural divisions where their users range from kids and youths to adults.

    The main target consumers of Cure.Fit is based out of urban cities and metros, mostly belonging to higher income groups and aged between 20-40 years.

    Cure.Fit as a brand is positioned as a fitness brand that promotes “healthy body, mind, and soul.”

    How does the brand engage its users?

    Cure.Fit has seen a successful run engaging a considerably large band of consumers throughout the years. The 3 main methods that Cure.Fit adopt to engage its users:

    • Gamification – Cure.fit has a unique way to encourage its users to display their badges and weekly ranks to their friends.
    • Buddy workout – Cure.fit believes in spreading their business by word of mouth and has a keen affinity towards the “kid next door.”
    • Fitter families – Cure.fit encourages families to come on board and keeps them motivated with the help of interesting programs like super family of the week.

    Acquisitions of Cure.Fit

    Cure.fit has acquired over 14 companies to date. Cure.Fit acquired Urban Terrain on December 20, 2021, and then it acquired Gold’s Gym on February 14, 2022, which was the last acquisition of Cure.Fit. Here are some of the other major acquisitions:

    Acquired Company Name Acquired Date Price
    Gold’s Gym February 14, 2022 –
    Urban Terrain December 20, 2021 –
    OneFitPlus December 20, 2021 –
    RPM Fitness December 20, 2021 –
    FITSO November 11, 2021 $50 mn
    TREAD June 10, 2021 –
    Fitternity February 9, 2021 –
    Onyx January 18, 2021 –
    Rejoov April 12, 2019 –
    Seraniti November 20, 2018 –
    Fitness First India Pvt. Ltd May 22, 2018 –

    Campaigns of Cure.Fit

    #FORTHELOVEOFFIT

    Cure.Fit breaks the barrier and allows people to share their health in the most enjoyable way. It provides a unique offer that includes physical, emotional, and dietary fitness. The film aims to demonstrate the full range of deals from the cure.fit app, which also tries to get people to think fitness is more open and fun.

    This campaign shows that Cure.Fit will benefit you if you don’t feel well and are not prepared to attend a physician.

    #CULTLIVE

    The aim of this campaign is to demonstrate that cult trainers are dedicated to your health and fitness and encourage you to enter the app for a live workout.

    Customer Feedbacks of Cure.Fit

    Cure.Fit has been largely successful in onboarding new customers and retaining their old ones, and has ended up being recommended by a large group of customers. Cure.Fit allows unlimited pauses in between the challenges that the company presents its users. This has contributed largely to the successful streak of customer retention that the company boasts of!

    With its successful branding, quality products and services, and innovative motivational ventures it has been seen that 90% of their cult users recommend the classes to others. Furthermore, it has also been seen that 60% of the total users renew their subscriptions.

    Conclusion

    Mobile apps drive the world today and people really rely on them for everyday work. Apps like Cure.Fit try a lot harder to interact with people and completely change their lifestyle in these tough periods of social separation. Cure.Fit has used its marketing strategy in a way that the their consumers respond.

    FAQs

    Who owns Cure.Fit?

    Mukesh Bansal and Ankit Nagori are the founders of Cure.fit.

    When was Cure.Fit founded?

    Cure.fit was founded and launched in 2016.

    Who are the target audience of Cure.Fit?

    The target audience of Cure.fit are people from the urban population who are between 20 years to 40 years of age.

    Are Eat.Fit and Cure.Fit the same?

    No. Eat.fit was previously a subsidiary of Cure.fit, but was declared an independent entity in October 2020.

  • What Is WhatsApp Communities and How Businesses Can Leverage it?

    In the 21st century, staying connected with your friends and families is a necessity and it is not an impossible task as technology has bestowed us with an option to do that. Social media helps us get connected with people, even if they are from the opposite part of the world.

    Apart from staying connected, social media also helps us stay up to date, join communities, and share our similar interests with others and also helps people with their business.

    One of the most essential and popular social media platforms that help us stay connected with each other is definitely, WhatsApp Messenger. This instant messaging app is owned by Meta and was founded in the year 2009 by Brian Acton and Jan Koum. Today, the instant messaging app is used by over 2 billion people.

    Recently, WhatsApp is said to have launched a new feature called WhatsApp Communities. In this article, we will talk about what WhatsApp Communities is and how it is going to help businesses. So, without any further ado, let’s get right into the business.

    “WhatsApp’ began as a simple idea: ensuring that anyone could stay in touch with family and friends anywhere on the planet, without costs or gimmicks standing in the way.” -Jan Koum

    What Is WhatsApp Communities?
    What Will WhatsApp Communities Offer?
    How Whatsapp Communities Is Different From WhatsApp Groups?
    How Can Businesses Leverage WhatsApp Communities?

    What Is Whatsapp Communities?

    The first update about the WhatsApp community feature came from WABetainfo in the first week of November 2021. WhatsApp Communities is an upcoming feature by WhatsApp for its users where they can combine different WhatsApp groups into a single one and can be controlled by the admin.

    This community will be used to communicate with people from different groups in the same space and they can also share their opinions here about different topics. The feature is said to be available first for iOS users than for android users. WhatsApp has been working on this feature for quite a while, as its competitors like Telegram and Discord already have a similar feature like this called Telegram Channel and Discord Server.

    Telegram Channel
    Telegram Channel

    What Will WhatsApp Communities Offer?

    The WhatsApp Communities introduced by WhatsApp will offer some exciting and necessary features to its users and they are:

    • One can add multiple WhatsApp Groups with the help of this feature into a larger group known as the Communities.
    • Just like any other WhatsApp group, Communities also have the option to add descriptions and names of the community.
    • There is an announcement section that is open for only the admins of the group.
    • Any kind of message that is photos, videos, voice messages, or files like doc, mp3, and zip can be sent in the community without any restrictions.
    • As different groups will be present in a single community, it becomes easier to reach a large number of people at once by sending a message in the community.
    WhatsApp Communities Feature
    WhatsApp Communities 

    How WhatsApp Communities Is Different From Whatsapp Groups?

    Some of the differences from regular WhatsApp groups that make WhatsApp Communities unique are:

    • WhatsApp lets you add only 256 people to a WhatsApp group, while Communities is said to have an option of adding as many groups as they can in the community, their number of individual contacts will be there in the community.
    • The Communities admin is set to have more power and control over the groups added to the community.
    • To connect with different groups, now only one message is enough that can be sent to the community and everyone present there from all the groups will receive the message.
    • The admin has the power to specify who can message in this community.
    • The icon of the Communities is going to be different. While normal chats and groups have round icons, the community will have a square icon with round edges, this will help the user to differentiate normal chats and groups from the Communities.

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    How Can Businesses Leverage WhatsApp Communities?

    WhatsApp is used by businesses to promote their products and services and of course, it also helps in keeping the customers engaged with the brand. With the instant messaging app’s new feature WhatsApp Community that is about to roll in, businesses will also receive some advantages with the help of this community. Those advantages are:

    • The community is made to put together individuals who have the same interests in a single big group and create a community that will be for their business.
    • Marketing of the products and services can be done easily as videos or other informative things can be shared there to reach the masses.
    • The community can be easily managed by the admin; it provides all the similar options to a normal group but also this upgraded feature gives the admin of the community better control.
    • The best thing about this is that it is free, and marketing your business through this feature will not cost you an extra penny, and you will also be able to reach a large number of people to market your business.

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    Conclusion

    WhatsApp has conquered the entire world since 2009. It is the most used instant messaging app in the world. WhatsApp has always helped small businesses with marketing and other stuff with its features. Now with the new feature called Community, it is only going to get bigger for businesses.

    FAQs

    What is WhatsApp communities?

    Whatsapp communities is an upcoming community feature by WhatsApp that will let you connect with different WhatsApp groups and will give more power to the admin.

    When will WhatsApp communities launch?

    There is no release date announced yet as the feature is still under development and will launch on iOS first and then on Android.

  • Business Model of HDFC Life Insurance Company | How HDFC Life Makes Money?

    Life is a gift that each one of us cherishes. Indeed, life is so beautiful, but at the same, it’s also very uncertain. As we drive through life, we find a partner, bring up a sweet family, and perhaps start a business. Today we’re enjoying our life, spending time with our loved ones, working for our family, no matter what our profession is. However, we still remain in the dark about what happens the following day.

    Here, the significance of insurance in a long-term plan rises. It’s because insurance is all about giving financial protection that helps us take care of ourselves, our families, and our loved ones. The main motive of life insurance is to furnish financial help to dependants upon the sudden death of their persons.

    These are the following reasons why people purchase life insurance:

    1. To extend another income arm, to restore the earning ability.
    2. To sponsor college education and dependency earnings for the family.
    3. To sponsor retirement plans, to repay a loan in the event of sudden death.
    4. To sponsor business or alliance in the incident of death of one of the company owners.

    The agreement expends a stipulated amount. It’s provided to the named legatee after the insured dies. The HDFC Life Insurance Company Ltd. is one of the most reputed private life insurance companies for the Indian citizens, who can avail of a wide range of life insurance plans and packages that the company brings.

    Founded in 2000, headquartered in Mumbai, HDFC is a subsidiary of Housing Finance Development Corporation (HDFC), and Standard Life, Abrdn, which operates as a long-term life insurance provider, which brings an array of individual and group insurance services.

    HDFC Life Insurance Company Highlights

    Startup Name HDFC Life Insurance Company Ltd.
    Founded 2000
    Owned by HDFC, and Standard Life, Abrdn
    Headquarters Mumbai, Maharashtra
    Industry Insurtech, Insurance, Fintech
    CEO Vibha Padalkar (CEO and MD)
    Website hdfclife.com

    About HDFC Life Insurance Company
    HDFC Life Insurance History
    Business Model Of HDFC Life Insurance Company
    What’s unique about HDFC Life Insurance Company’s Business Model
    How does HDFC Life Insurance company make money?

    HDFC Life Insurance

    About HDFC Life Insurance Company

    When we talk about life insurance companies, there are numerous such companies that strike our minds, out of which HDFC life is one of the prominent ones. HDFC refers to Housing Development Finance Corporation, which is a leading long-term life insurance solutions provider along with being a huge banking institution. HDFC currently boasts of having 421+ branches and operates in over 980 cities, villages and towns in India. The company is presently working with a whopping 16544+ people. Furthermore, the HDFC Life parent organization, HDFC Bank is hailed as the 3rd largest firm on the Indian product exchanges. Besides, it is also identified as the 19th largest employer in India, with the gigantic workforce it operates with.

    Areas of operation

    Since 23 October 2000, HDFC Life Insurance company has been serving as a trusted life insurance organization, which is currently spread in over 421 branches and 980+ cities and villages of developing India. This business has also established a liaison department in Dubai.

    With a multi-channel network, It has a powerful existence in its markets. Its network comprises bancassurance partners, SFBs, direct channels, MFIs, and insurance brokers. Apart from this, it also has partnerships with about 39 ecosystems that are non-traditional.

    Key products and services

    HDFC Life Plans
    HDFC Life Plans

    Its essential products and services include pension, health, savings, protection investment, and a wide range of plans providing the requirements of youths and women. These products add up to an aggregate of 37 commercial stocks with more than 13 group products.

    Yet, it formulates other optional riders (customization of existing plans with optional benefits) to help the customers. HDFC Life Insurance Company has about seven riders for its customers.

    The essential products include protection plans, health plans, retirement plans, rural & social plans, children’s plans, savings & investment plans, women’s plans, etc.

    Target Audiences

    The HDFC Life Insurance Company has been offering insurance solutions, both individual and group, across all cities of India. It mainly targets adults.

    HDFC Life Insurance Company has been successful in big cities such as Delhi, Pune, Mumbai, and Bangalore. It’s working to extend its services to the remotest corners of the country with the assistance of about 250 partners.

    HDFC is performing a commendable job both online and offline. Its overall strategy is to target audiences by establishing its presence on the three most prominent social media platforms: Twitter, Facebook, and YouTube.

    HDFC Life Insurance History

    HDFC Life Insurance was incorporated on August 14, 2000, and currently stands owned by HDFC Ltd and Standard Life. The HDFC bank now wants to own some additional stakes in the Life Insurance segment of HDFC Ltd to cross the 50% mark in shareholding. For this, the HDFC bank has written to RBI on April 5, 2022, requesting the approval of owning 47.82% shares that HDFC Ltd. owns in HDFC Life, or buying additional shares from the market and thereby, increase its holding to over 50%.

    Starting in the month of August 2000, the HDFC life insurance corporation had successfully obtained the certificate of commencement of business not earlier than October 12, 2000. Furthermore, it was on October 23, 2000, that it obtained the certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI) to undertake the life insurance business. From here, to have partnerships with over 39 non-traditional ecosystems along with possessing a multi-channel network, consisting of Insurance agents, Bancassurance partners, a Direct channel, Insurance Brokers, MFIs, SFBs and more, the journey of HDFC Life Insurance is fascinating indeed!

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    –

    Business Model Of HDFC Life Insurance Company

    HDFC Life Logo
    HDFC Life Logo

    The HDFC Life has already evolved from a product-centric to a customer-centric model of approach. It needed to set the customers in the middle of our business model, influence the vast quantities of customer data that is being produced and deliver specific offerings fitted to their unique necessities, which it is continuing to work on.

    Everything and everyone are required to be accessible anytime and anywhere. It implies that the services are needed to be created digitally first! The life insurance business models have improved over the last decade, ridden by the policyholders. The company is working on it and presently created a robust customer approval architecture; you would see businesses striding into the successive era of customer-centricity.

    The life insurance company of HDFC has classified its product portfolio that covers all the major five principal categories across the individual and company categories namely participating, non-participating insurance term, non-participating insurance health, other non participating, and unit-linked insurance products.

    Moving on to decoding the company’s business model, the company has two types of products and services. The first category includes lean products such as ULIP. The second category of products is the traditional products.

    Lean products contribute about 55% to the business model of the company. On the other hand, traditional products contribute about 45% to the business model of the company. The company also has tie-ups with many bancassurance, SFBs, MFIs which help in selling the products of the company on their premises.

    The company has a scaling-based business model, which means the profit during the initial years wasn’t much. HDFC Life Insurance Company started getting earnings from 2011. It’s the blend of perfect consumer-oriented architecture along with proper scaling and investment which has helped HDFC Life Insurance Company reach glorious heights.

    What’s unique about HDFC Life Insurance Company’s Business Model?

    HDFC Life Insurance Company is a cooperative business between HDFC Ltd and one of India’s leading housing finance associations, and Standard Life Aberdeen, an international investment company. It was established in 2000; HDFC Life is a prominent long-term life security solutions provider in India.

    1. Costumer-centered approach: Presently, one of the transformative ideas that propel customer-centricity to another phase is a customer approval architecture that chops across regions. The company’s visualization of the customer as the only authority to choose and decide when, how, and with whom to share the data is the key.

    It could be related to his/her health, finances, identity, location, driving records, and anything else produced (only) on the customer’s approval. While numerous leaders and entities could be behaving as the custodians of this data, they are not the owners – that authority would rest entirely only with the person. With such an architecture, insurers would be able to personalize, price better and even serve better!

    A consumer who provides the insurer access to their medical data constantly can be given bonuses for updating, enhancing, and maintaining their health metrics in a more organized way than the average consumer.

    Similarly, an individual who shares his/her driving data can look forward to discounts on machine protection on the back of their safe driving. The insurance company is taming success with such a consumer-centered approach.

    2. Coalitions & Tie-ups: On March 31st, 2020, the Company comprised 37 private and 11 group products in its portfolio, along with six discretionary rider benefits, catering to a different extent of customer requirements.
    HDFC Life proceeds to profit from its existence across the nation with 421 branches and more portions of touch-points through various coalitions. The coalitions include 270 bancassurance members, including NBFCs (Non-Banking Financial Companies), SFBs (Small Finance Banks), MFIs (Micro Finance Institutions), etc., and an additional 40 new ecosystem me.

    ‌It’s a prominent financial business company in India that has always been fulfilling and ensuring quality services. It has developed an enviable foothold in the market as a finance and insurance provider.

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    –

    How does HDFC Life Insurance Company make money?

    HDFC Life Insurance Company makes money primarily via its life insurance plans, which are laid out as:

    • Protection Plans
    • Health Plans
    • Children’s Plans
    • Savings Plans
    • Retirement Plans
    • SHAURYA Plans
    • ULIP Plans
    • Group Insurance Plans
    • Discontinued Insurance Plans
    • Rural and Social Plans

    Now, let us understand how HDFC Life Insurance Company makes money through its business strategy by taking a small example. They take money from overseas and increase capital through investing in ECBs, the domestic bond market, Masala Bonds, deposits, and a variety of references. Commercial paper is just one of the numerous sources through which they increase their money.

    They generate income in two ways: Charging bonuses in trade for insurance range and also re-investing those dividends into other interest-generating assets. Like all private companies, HDFC insurance companies, too, try to market productively and lowers managerial costs.

    The returns from the premiums of policies are also a part of how the company generated its revenue. The other miscellaneous charges from the customers also contribute to the business model.

    The profitability mainly depends on three factors. These factors are:
    1. Profit extracted from policyholders
    2. Rate of claim settlement ratio
    3. Mortality rate

    With a well-prepared business model, the company has generated healthy revenue. HDFC Life keeps checking the rate of inflow and outflow, which helps it manage its revenue. The company has reported a 3% increase in its net Q3 profits, which rose from INR 264.99 cr to INR 273.65, whereas the total revenue of HDFC Life has significantly decreased from INR 21126 cr to INR 14222 cr, as of January 2022.    

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    Conclusion

    The above study on HDFC Life Insurance Company states all its key products and services to the insurers by making it a profitable business through their planning and strategies. They even perfected their business model and provided greater access to a holistic suite of services, including bank accounts.

    HDFC Life has been thinking of widening its agencies and also enhance its assistance to bonuses from 12-13%. With that too, the proportioned level of 25% by moving beyond the top 25-30 cities.
    The company plans to develop the agency force and look out for LIC’s defense of its attrition to private peers.

    HDFC is India’s leading life insurance company which is extending its range to you individually as well as group insurance solutions—and tailored to fulfill your needs, life objectives, and plans.

    FAQs

    What is the full form of HDFC?

    HDFC stands for Housing Development Finance Corporation Ltd.

    When was HDFC Life established?

    HDFC Life is a leading long-term life insurance solutions provider in India which was established in 2000.

    Who is owner of HDFC Life?

    HDFC Ltd. and Standard Life, Abrdn are the owners of HDFC Life.

    Is HDFC Life a subsidiary of HDFC Bank?

    HDFC Life Insurance Company Limited is a joint venture between HDFC Ltd. and Standard Life Aberdeen, a global investment company.

    Which is the HDFC bank parent organization?

    The HDFC bank’s parent organizations are HDFC Ltd. and Standard Life, Abrdn.

  • 5 Biggest Sales Challenges in Selling SaaS and How to Overcome Them

    Software as a service, commonly abbreviated as SaaS, is a type of software that is hosted by a software company or single provider. It permits its customers to connect to and use apps based on the exclusive cloud-based feature over the internet.

    The customer need not need to worry about the storage. The software is backed up by the product engineers of the providers. The customer success team looks after the management of the software.

    SaaS sales can be understood as the process of selling web-based software that is accessible by the customers through an online portal. SaaS sales products help solve business-related issues.

    SaaS sales are regulated by the following sales representatives- Sales Development Representatives (SDRs) and Business Development Managers (BDMs). The former focuses on the outbound sales and qualifying leads, and the latter works on conducting product demos and closing deals respectively. Here is a list of a few most common challenges faced by SaaS founders that they face when selling SaaS, along with suggestions on how to overcome them.

    1. Qualified and Unqualified Leads
    2. Stressful SaaS Sales Cycle
    3. Choosing the Right SaaS Sales Model
    4. Conversion from Freemium to Premium
    5. Too Many Competitors

    Importance of SaaS Sales Strategy

    Like all B2B sales, the prime objective of the SaaS sales team is to generate qualified leads and revenue for the company.

    Planning gives an idea about what we are up to and paves the direction for us. Therefore, a strategized sales technique must be adopted. The decision of the SaaS sales strategy depends on the company’s SaaS adoption and development.

    The SaaS sales strategy includes various sales techniques to fulfil two-fold objectives i.e., upselling clients and closing deals.

    A SaaS Sales strategy plays a vital role in the success of the company as it focuses on the growth of the company and its position in the market, in the longer run. The SaaS sales strategy most commonly uses the subscription-based pricing model. While creating the strategy the team must focus on the following points:

    • Lead generation to turn interested into sales.
    • Focus on the target group of the market and convert prospects into consumers by introducing them to the company and its offerings.
    • The final stage of the transaction includes the agreements signed between the company and the customers thereby, resulting in sales.

    This simple 3-step transaction has to face a lot during the implementation phase.

    1. Qualified and Unqualified Leads

    Lead generation
    Lead Generation

    Lead generation gives happiness. But the same end up in tears if it does not give you a sale in return. Therefore, it is necessary to make sure that you do not waste time on unqualified leads.

    Categorization of your leads into qualified and unqualified must be followed after lead generation as not all leads require an equal amount of attention. Contacting all leads will result in a waste of time and leave you exhausted.

    Here, the team needs to come up with a strategy so that more time and focus can be given to the most important leads. This distinction could be made by a little survey through an interesting and engaging questionnaire in a Google form or measuring their quality through a lead scoring formula.

    Preparing a lead scoring model that fits your business model is a good idea. It helps to focus and save time on the most important inbound leads. It can also prepare you for future dealings with bigger opportunities yet to come in the future. The lead scoring formula gives amazing results when comes to filtering the potential customers from the free trial users who are never planning to convert.

    2. Stressful SaaS Sales Cycle

    SaaS sales cycle
    SaaS Sales Cycle

    SaaS sales cycles vary from product to product. Each sales cycle depends on various factors such as the target market, the pricing model, or even the target audience.

    It might involve dealing with unrealistic expectations at times, which creates pressure on the sales team. The only solution to this problem is- Benchmarking. It helps you get started as you have a goal set to achieve. Once the benchmark is reached, it’s no more an issue. The next step is to align the results with the expectations.

    The team should set a benchmark to predict the average sales cycle based on industry, pricing, and customers’ needs.

    3. Choosing the Right SaaS Sales Model

    Sales models play a vital role in the success journey. However, picking one isn’t as simple as it may seem. Your decision directly impacts the growth and revenue. Therefore, all the SaaS sales model options available must be reviewed thoroughly. Further, there should be a test to find the most suitable one in a limited time.

    Finally, it can be rolled out if successful. Otherwise, there should be a re-test if your sales model lacks at any point for your SaaS product.

    4. Conversion from Freemium to Premium

    This one can be regarded as the biggest challenge for every SaaS business that wants to grow.

    Many of the generated leads are of the view that they would enjoy the free trial and switch to the other SaaS product’s free trial once the previous one gets over, without paying for the product in the end.

    It’s good to know that all the free trial users cannot be convinced to pay. But at the same time, you need to pay attention to those who are showing interest in your SaaS product in a different way as compared to others. They could be the ones who would like to continue.

    That is the point where you need to create an engagement and keep those warmest leads engaged throughout the trial period. You need to set up a strategy for how you approach them.

    You need to make them well versed with the benefits and further exclusive features eagerly waiting for your customers once their free trial ends. You should let them know how that your product is important to them as they are to you.

    You must try to find out more about them and try not to overwhelm them. Take them into trust with your pocket-friendly policy and other benefits by the time they get ready to retain with you.

    5. Too Many Options to Choose From

    Too Many Options
    Too Many Options

    New SaaS products pop up like crazy. Having competition is good – it increases the value of the market.

    When a customer is looking for that one product that satisfies exactly what he wants, he faces too many options. The customer gets confused about which SaaS product to choose from when several options are presented before them.

    To make your product the most obvious and preferable choice out of many alternatives, you must think like a customer. You need to figure out the ways to stand out in the heavily crowded market.

    You need to highlight the most exclusive feature that compels your customer to opt for your offering, over the other options available to them at the same time.

    While presenting your product, you need to explain its value, how is it different from the other offerings, and how it benefits your customer.

    Your website must be customer-friendly. It must be a little more informative than your competitors; fill it with the past experiences of you and your present and current customers. The content must be such that it helps customers make more informed decisions.

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    Conclusion

    Every SaaS business faces sales challenges. Sales is not an easy task, we need to earn it. There is a solution to all the challenges. Whether it’s the lack of time to qualify all the leads, a longer sales cycle, or dealing with a saturated market. The only thing we need to do is to figure out the right strategy and find the best possible solution to get the SaaS product in front of customers.

    FAQs

    What are sales biggest challenges in selling SaaS?

    The customer is faced with too many options, converting a customer from a free trial to a paid customer, choosing the right sales model, and qualified and unqualified leads.

    Is it hard to sell SaaS?

    Yes, selling a SaaS product is not easy as there are already other companies trying to convert customers into paid customers so it is important to make your product stand out and provide the best customer service.

    Why is SaaS so profitable?

    SaaS businesses are profitable as it is a recurring model where you are already earning revenue from recurring customers as well as from new customers.

  • How Brands Use Surrogate Advertising to Promote Banned Products?

    Advertising is the most common and effective method of sales promotion. Advertisements are the best way to generate leads for the sale. But a few products stand out of availing the opportunity of being advertised.

    Consumption of certain products such as liquor which causes harm to health, should not be allowed as a result which government has not allowed publicizing such products. So, Surrogate Marketing acts as a solution to such products. Whereby, a product of the same brand other than the main product is advertised. This product acts as the ‘surrogate’ of the original one. This type of advertising method, where another product is advertised as a glimpse under the name of another product usually of the same or similar brand is called Surrogate Advertising. Let’s understand the origin and examples to understand surrogate advertising in India in detail.

    What is Surrogate Advertising?
    Origin of Surrogate Advertising
    Surrogate Advertising Examples – How Brands Promote Products Using Surrogate Advertising?

    What is Surrogate Advertising?

    Surrogate marketing is a marketing strategy, which is specifically a form of sales promotion strategy used for the branding of products that are generally banned to advertise by the government. The list includes products like alcohol, cigarettes, etc in the market.

    These products are preferably advertised indirectly or masked under another product. The brands secretly demonstrate surrogate products to their audience to indirectly promote the banned products.

    Origin of Surrogate Advertising

    Surrogate advertising came into existence as an alternative option for advertising the banned products. The roots concepts relating to surrogate advertising have their origin in Britain.

    The housewives in Britain began protesting against liquor advertisements as they believed that such type of brands incites their husbands to consume such products. The protest began to grow at an alarming rate as a result of which, and liquor advertising was banned.

    To mitigate the adverse impact of the protest, the brand owners decided to adopt an alternative method to bring such products before the public. They decided to do this the other way round. They started the promotion of some other products of their brands like fruit juices and soda which later emerged as surrogate marketing.

    As per the reports of several surveys and interviews, the stats draw inferences that 42 out of 50 people are easily able to recognize the actual product being advertised correctly.

    Surrogate Marketing is beneficial to several brands as it is a kind of marketing strategy that helps to market banned products and keep their brand name active in the minds of customers. Surrogate marketing helps companies to sustain themselves in the market.

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    Surrogate Advertising Examples – How Brands Promote Using Surrogate Advertising?

    Listed below are a few ways that brands opt to showcase their surrogate advertising strategy along with a few interesting examples of surrogate marketing.

    Advertising

    You must have been interrupted by a series of advertisements in the middle of your favourite T.V. show. Advertising on televisions through videos is the highly opted method of creating brand awareness. All most all marketers use this as their major marketing tool.

    Surrogate Marketing also involves the creation of impressive, creative, and attractive advertisements. They are also remembered for their catchy taglines. Take a look at a few examples of surrogate advertising.

    Magic Moments Music Studio & CDs

    Vodka is the main and primary product of this brand. But, there is just a glimpse of the vodka bottle in its video advertisement which prima facie shows Music CDs and studios. The connection between music and liquor, depicted in the video is sufficient for the viewers to comprehend the actual advertisement i.e. people generally prefer listening to music while drinking.

    Bagpiper

    Bagpiper is one of the top whiskey brands in India which shows Water, Soda, and Music in its video advertisement. It also applies a surrogate marketing strategy to sell its product in the name of – Bagpiper Club Soda. The very famous and interesting catchy line “Khub Jamega Rang” is brought up by this brand only.

    Rajnigandha Silver Pearls

    Rajnigandha sells a wide range of ‘pan masala’. The brand advertises silver cardamom and promotes it as a tobacco-free product. Therefore, it is deceptive sometimes as well.

    Imperial Blue Music CDs

    The “Men will be men” tagline is very popular and attractive. Imperial Blue brand is the one who has brought it. It also uses CDs to eclipse its actual product.

    Sponsoring events and tournaments

    The second most popular way opted as the surrogate marketing technique after video advertisement is sponsoring events and tournaments to promote the banned products indirectly.

    Indian Premier League (IPL)

    IPL has an immense fan following and is India’s biggest cricket tournament. Several brands sponsor IPL teams and the whole tournament. Kingfisher sponsors the IPL as its good times partner with – Oo La La La Le O with good times.

    Sunburn

    Sunburn is a music festival that is celebrated in India. Famous liquor brands including Carlsberg, Kingfisher, and Magic Moments sponsor this event. Music festivals are usually regarded as the colossal platform for Surrogate marketing.

    Sunburn Festival
    Sunburn Festival

    Bacardi NH7 Weekender

    Bacardi NH7 Weekender is a music festival sponsored by Bacardi which is a liquor brand. It is an example of blending music and liquor. It is a famous tagline because of its catchy tagline- ‘When Music kicks into the rescue’.

    Bacardi Weekender
    Bacardi Weekender

    Conclusion

    Certain products like alcohol, tobacco or cigarettes, pose a moral issue and remain deprived of getting an opportunity to be featured on advertising platforms mainly due to the prohibition of marketing imposed on them.

    So the only option left with the marketers is to advertise their original product in the disguise of another product of their brand, such method is termed ‘Surrogate Marketing’.

    Marketing is necessary to create awareness, increase sales and, sustain the market in the longer run. Without Surrogate Marketing, brands offering controversial products would have no existence in the market. It allows them to sustain themselves in the competitive world, which is the essence of Surrogate Marketing. The customer needs to comprehend and recognize the actual product being advertised and is hidden behind another, then only it can be concluded that this strategy worked well.

    FAQs

    Which company uses surrogate marketing?

    Bacardi, Kingfisher, Bagpiper, Rajnigandha, and Imperial Blue are some of the top brands that use surrogate marketing.

    What is an example of surrogate advertising?

    Imperial Blue Music Cds, Bagpiper Soda, and Officers Choice soda are some examples of surrogate advertising.

    Why surrogate advertising is important?

    Surrogate advertising is important as it helps brands advertise their product that is banned from advertising and indirectly impact consumers buying decisions.

  • How ITC Can Benefit From the Russia Ukraine War?

    On the 24th of February 2022, Russian President Vladimir Putin shocked the world when he had announced the decision to launch a “special military invasion” in the eastern parts of neighbouring Ukraine in order to “protect the Russian-speaking people” there.

    While there are various reasons speculated for the war, such as Ukraine wanting to join the North Atlantic Treaty Organization (NATO) or Putin’s vision of bringing back the old erstwhile Soviet Union, the economic effects of the war have been brutal for the world.

    While the catastrophic effects of the invasion on the energy sector have been well-documented, given that Russia is one of the largest exporters of petroleum and natural gas and the subsequent oil embargo it has faced at the hand of the United States, this war also has effects on other sectors of the economy. One such sector is the agricultural sector, especially wheat production.

    Russia is the largest exporter of wheat in the world, and Ukraine is the fourth largest exporter of the same commodity. Together they combine for a whopping 30% of the worldwide wheat production. But now, due to the various instability issues in the supply chain, there is a need for other countries to fill the void. India can be one of those countries.

    And in India, one of the largest wheat exporters is the agribusiness section of ITC Ltd (formerly known as the Indian Tobacco Company). The agribusiness section of ITC accounts for about 21.88% of their revenue as per FY21 (Fiscal Year ranging from 1 April 2020 to 31 March 2021).

    With ITC’s agribusiness section being one of the major contributors to India’s wheat exports, this article would discuss how they can benefit from this war, like, for example, the geographical conditions which help India’s aims, unlike exporters. We would also briefly discuss how ITC procures wheat from its farmers.

    Procurement of Wheat by ITC
    How Much Wheat Does ITC Export?
    The Opportunity That Beckons
    How Can ITC Exploit This Opportunity?
    Role of the Government (Central and State)

    Procurement of Wheat by ITC

    ITC procures wheat through their e-Choupal initiative. Launched in June 2000, it has provided computer and Internet by e-Choupal kiosks access to the rural regions across multiple agricultural regions in the country.

    Through e-Choupals, farmers can negotiate with the representatives of ITC, eliminating the need for a third party. They also help farmers place orders for basic agricultural needs like seeds and fertilizers, which enhances their productivity.

    In 2020, ITC launched e-Choupal 4.0 which gives farmers information on weather and markets on a real-time basis. Today, around 4 million farmers growing a wide variety of crops like soybean, coffee, wheat, rice, pulses, and shrimp in over 35000 villages, are connected with ITC through 6100 e-kiosks. These farmers are spread across 10 states (Madhya Pradesh, Haryana, Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Kerala, Maharashtra, Andhra Pradesh, and Tamil Nadu).

    How Much Wheat Does ITC Export?

    As per a March 2022 Business Standard report, out of the nearly 7.25 million tonnes of wheat exported in FY 2022, ITC is responsible for about a whopping 50% of it. With the Indian government targeting a record 10 million tonnes of wheat export for FY 2023, it is reasonable to expect that ITC would be a major contributor to it.

    According to domestic brokerage firm Edelweiss, the poor production of wheat in Russia and Ukraine in the third quarter of FY 2022 (July 2021- September 2021), was a major reason for a 100% YoY (year-on-year) increase in ITC’s agribusiness division revenue as they slowly started to fill the void. They were also aided by other factors, such as a growth in demand for spices and leaf tobacco.

    The Opportunity That Beckons

    The invasion of Russia on Ukraine has further exacerbated the issue regarding the poor yield of wheat exports.

    In the case of Russia, it is because of the various sanctions the Western World has imposed on them due to the invasion. These sanctions also affect other Russian exports like petroleum and potash. In fact, Russia has even temporarily stopped exports to ex-Soviet countries in Belarus and Kazakhstan for the time being.

    In the case of Ukraine, it is mainly due to the Russian airstrikes on all their major port cities on the Black sea like Odessa and Chornomorsk. This has led to supply chain disruptions worldwide.

    So if we consider these two factors, then it should be no surprise that wheat prices have touched a record high of around $13.50 per bushel (roughly around $500 per tonne). This had led to a huge void in the market, especially with countries dependent on wheat imports like Egypt struggling right now, given its ever-increasing population at a rate of 1.9% per year.

    How Can ITC Exploit This Opportunity?

    Given that wheat is a crop that is mainly harvested in the months of April and May, it looks like India is at the right time to help the world overcome the consequences of the Russian invasion of Ukraine as there has never been a demand for wheat higher than what it stands right now.

    Another thing that needs to be considered as per the Edelweiss report mentioned before, the wheat produced in India is comparable in all parameters to Russian Red Sea Wheat, be it in quality, taste, or texture. Thus, all these factors help us conclude that the wheat produced in India is primed to fill in this huge void of wheat exported by Russia and Ukraine.

    And who else is better positioned than ITC here? ITC already has a strong market in Bangladesh, the Middle East, and countries based in southeast Asia like South Korea and the Philippines.

    Top Wheat Export to Countries From India
    Top Wheat Export to Countries From India

    No wonder it has started taking steps to exploit this advantage, such as scaling up its wheat development program and introducing location-specific superior seed varieties. It has also started exporting its wheat to countries like Lebanon as well.

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    Role of the Government (Central and State)

    Even the current Prime Minister of India, Narendra Modi, has acknowledged this need to fill this void and recently said that India should seize this opportunity of exporting the best quality of wheat the exporters can.

    The government has also decided to aid these companies so that India’s exports can be further boosted as per the directive of our Prime Minister. They have started establishing laboratories at a faster rate for quicker testing. They have also told port authorities to give priority to wheat exports.

    Admittedly, a major issue that still persists that the exporters continue to raise is state-specific taxes. For example, in Punjab, they have to pay 3% taxes as per the fee they have paid to the market and 1% service charges. Exporters have appealed to the respective state governments to give tax relief, which would ease their business a lot.

    Conclusion

    Thus, in this article, we have talked about why there is a huge gap in the wheat exports market due to the Russian invasion of Ukraine and how ITC can exploit this gap. This gap is something that not only ITC but other exporters like Cargill or Olam Agro can take advantage of. And thankfully, it seems all of them are.

    As per various reports, India could potentially export 4 million tonnes of wheat (around 55% of what it used to export annually) within the next two months, so it can be seen that Indian exporters are seizing this moment. This bodes well for the Indian economy and, thus, the country as a whole.

    FAQs

    Was Russia a major exporter of grain?

    Yes, Russia is one of the largest exporters of wheat in the world and accounts for 16.5% of wheat production in the world. The country exported 37 million tonnes of wheat in 2020.

    Does Ukraine produce a lot of wheat?

    Yes, Ukraine accounts for 11.5% of wheat production in the world. It exported 18 million tonnes of wheat in 2020.

    Who does Ukraine export wheat to?

    Egypt, Indonesia, Turkey, Pakistan, and Morocco are some of the top countries to which Ukraine exported wheat.

    Who does Russia export wheat to?

    Egypt, Turkey, Nigeria, Bangladesh, and Pakistan are some of the top countries to which Russia exported wheat.

    How can ITC benefit from the Russia Ukraine crisis?

    As the Russia Ukraine war has caused a huge shortage of wheat in the world, ITC can seize this opportunity by providing the wheat to the countries that Russia Ukraine exported to.