With its cutting-edge electric bike-sharing services, Yulu is a trailblazing urban mobility platform that offers convenient and environmentally friendly transit options. Utilising cutting-edge IoT technology and data-driven insights, the company generally operates in busy metropolitan regions, optimising the availability and upkeep of its e-bikes.
In this article, we’ll understand the Yulu business model and explore how Yulu makes money through rentals, partnerships, and smart mobility solutions.
Amit Gupta, RK Misra, Naveen Dachuri, and Hemant Gupta founded Yulu in 2017 with the specific goal of lowering environmental impact and urban congestion by providing sustainable transit options. To guarantee the best possible availability and upkeep of its electric bikes (e-bikes), the company makes use of state-of-the-art IoT technology and data-driven insights. With an emphasis on price, user safety, and ease of access, Yulu hopes to significantly improve urban transportation.
Yulu’s pay-per-use business model makes it possible for customers to rent e-bikes for brief periods of time, which makes it the perfect option for last-mile connectivity and quick journeys. This model is intended for both regular commuters and infrequent users looking for a quick and affordable way to travel around. The e-bikes are easily accessible through the user-friendly software, which allows users to unlock a bike and begin riding by scanning a QR code. Based on real-time data analytics, Yulu continuously modifies its fleet management tactics to maximise availability and reduce downtime. To increase its reach and impact, Yulu also works with business organisations and local authorities to include its services in broader urban mobility ecosystems.
How Yulu Makes Money?
The rental fees that consumers pay based on the length of their ride are the main source of income for Yulu.
Generating Revenue By Billing Users: The total cost is determined at the conclusion of each journey, and users are billed on a per-minute basis. From those who require a brief five-minute ride to those who need longer rental periods, this flexible pricing structure serves a broad spectrum of users.
Generating Revenue Through Subscription: In order to further promote a change to more environmentally friendly transportation practices, Yulu also provides subscription packages that save consumers money on frequent travel.
Generating Revenue Through Value-Added Services: In order to improve its financial sustainability and raise brand awareness, the company also looks into new revenue streams through strategic alliances and advertising options on its bikes and app.
By consistently inventing and growing its service offerings, Yulu hopes to be in the vanguard of the urban mobility revolution.
Yulu offers competitive per-minute rates that cater to both frequent riders and regular commuters. For regular users, subscription options also provide substantial discounts. These factors are the primary USP of Yulu and help it stand out in the market.
SWOT Analysis of Yulu
SWOT Analysis Of Yulu
Strengths
By using electric cars, Yulu encourages ecologically responsible travel and appeals to consumers who care about the environment.
Yulu has formed alliances with businesses and the government that can support infrastructure development and growth.
Yulu’s services are ideal for connecting consumers to public transit hubs and short-distance commuting.
Weaknesses
Consistent profitability has proven difficult for Yulu, with some reports pointing to losses.
Yulu may have a limited reach because it mostly caters to millennials and people looking for short-distance transit.
It might be costly to expand and maintain the infrastructure needed for battery changing and charging.
Yulu can look into ways to provide new services, such as lengthier journeys or customised transit options.
Yulu can enhance its products by utilising technological developments in fields like smart city integration and battery technology.
Threats
Traditional modes of transport and other micromobility businesses compete with Yulu.
Yulu’s operations may be impacted by modifications to laws or policies pertaining to shared mobility or electric automobiles.
A threat could come from evolving customer tastes or the introduction of new transportation technologies.
Conclusion
Expansion and strengthening alliances continue to be Yulu’s top priorities going forward. It seeks to expand its footprint throughout India and investigate prospects in other developing markets. Global urban transportation trends are well aligned with the focus on data-driven decision-making and an unrelenting dedication to sustainability. In addition to providing transit services, Yulu stands as an example of environmentally friendly innovation.
Yulu is an electric bike-sharing platform that offers eco-friendly last-mile connectivity solutions in urban areas.
How does Yulu make money?
Yulu generates revenue through per-minute rental charges, subscription packages for frequent users, and value-added services like brand partnerships and advertising on bikes and its app.
Who are the founders of Yulu?
Yulu was founded in 2017 by Amit Gupta, RK Misra, Naveen Dachuri, and Hemant Gupta.
What is the business model of Yulu?
Yulu operates on a pay-per-use business model, allowing users to rent e-bikes for short durations. It also offers subscriptions and collaborates with businesses and city authorities for expanded urban mobility.
Is Yulu available in Mumbai?
Yulu was launched in Bangalore and is now available in Mumbai, Pune, Bhubaneswar, and Delhi.
Is Yulu profitable?
Yulu’s EBITDA profitable and is aiming for IPO by 2027.
L’Oreal is a globally recognized brand that has been leading the beauty industry for over a century. The company has established itself as an industry leader by consistently providing innovative and high-quality beauty products that cater to diverse customer needs. L’Oreal’s products are designed to enhance natural beauty, promote self-confidence, and empower individuals to express themselves in unique ways. With a strong focus on research and development, L’Oreal continues to create cutting-edge products that push the boundaries of the beauty industry. Let’s look into how the brand has remained relevant in the ever-evolving beauty landscape.
In the bustling city of Paris, a young chemist by the name of Eugene Schueller had a vision that would change the beauty industry forever. In 1907, he established L’Oreal intending to create high-quality hair dyes that would revolutionize the way people approached beauty. Schueller’s passion for chemistry and beauty, combined with his ambition and entrepreneurial spirit, led him to create a line of products that quickly became popular among Parisian women.
L’Oreal continued to innovate and expand its product offerings, introducing new lines of cosmetics, skincare, and hair care products. In the 1950s, the company established itself as a global brand, setting up operations in North America and expanding into other markets around the world.
L’Oreal is a household name and one of the largest cosmetics companies in the world. With a presence in over 150 countries, the brand continues to innovate and push the boundaries of beauty. Its products are designed to enhance natural beauty, promote self-confidence, and empower individuals to express themselves in unique ways.
Despite its global reach, L’Oreal remains committed to its core values of innovation, sustainability, and inclusivity. The company continues to invest heavily in research and development, constantly pushing the envelope with new and exciting product offerings.
L’Oreal’s journey from a small Parisian salon to a global beauty powerhouse is a testament to its pioneering spirit and commitment to innovation. Today, the brand continues to be a trendsetter and a leader in the beauty industry, empowering individuals around the world to look and feel their best.
L’Oreal’s target audience is nothing short of inspiring, as the brand strives to cater to a diverse range of individuals with different ages, skin types, and beauty needs. From women of all ages to men looking to groom themselves, L’Oreal has something for everyone. The brand also targets young adults and beauty enthusiasts who are passionate about trying new products and staying ahead of the curve. L’Oreal’s commitment to inclusivity and diversity is further evident in its professional range of products that cater to stylists and salon professionals. With a mission to provide high-quality products that empower individuals to look and feel their best, L’Oreal’s target audience is a true reflection of the brand’s ambition and motivation to push the boundaries of beauty.
Loreal Marketing Campaigns
L’Oreal is a brand that has always been at the forefront of the beauty industry, with its innovative approach to marketing and product development. The brand has consistently pushed the boundaries of beauty and challenged traditional beauty standards through its marketing campaigns. In this article, we will take a closer look at some of L’Oreal’s most successful marketing campaigns and how they have contributed to the brand’s success.
The “Because I’m Worth It” Campaign
One of L’Oreal’s most iconic marketing campaigns is the “Because I’m Worth It” campaign. Launched in 1973, the campaign was designed to empower women and encourage them to invest in themselves. The campaign featured prominent women from various fields, including actresses, models, and businesswomen, who confidently declared, “Because I’m Worth It.” The campaign was revolutionary, as it challenged societal norms that had long dictated that women should prioritize their family or career over themselves. The “Because I’m Worth It” campaign not only helped L’Oreal become a household name, but it also played a significant role in changing cultural perceptions of beauty.
Loreal Marketing Campaigns
The “Smart Hairbrush” Campaign
In recent years, L’Oreal has continued to innovate with its marketing campaigns, embracing technology and digital media to reach a wider audience. In 2017, the brand launched its “Smart Hairbrush” campaign, which featured a high-tech hairbrush that could analyze hair quality and provide personalized hair care recommendations. The campaign was designed to target tech-savvy consumers who were looking for innovative and high-tech beauty solutions. The Smart Hairbrush campaign was a huge success, as it generated significant buzz on social media and helped establish L’Oreal as a leader in the beauty-tech industry.
L’Oreal Marketing Campaigns
The “True Match” Campaign
The “True Match” campaign was launched in 2016. The campaign was designed to celebrate diversity and inclusivity in beauty, featuring a range of models from different ethnicities and skin tones. The campaign challenged the traditional beauty standards that had long favored lighter skin tones, and instead, celebrated the unique beauty of all individuals. The “True Match” campaign was a huge success, as it resonated with consumers who were looking for more inclusive beauty products.
The “L’Oreal for the Future” Campaign
L’Oreal has also been active in promoting sustainability and eco-friendliness in its marketing campaigns. In 2020, the brand launched its “L’Oreal for the Future” campaign, which focused on the brand’s commitment to sustainability and the environment. The campaign highlighted L’Oreal’s efforts to reduce its carbon footprint, use more sustainable packaging, and promote sustainable practices in the beauty industry. The “L’Oreal for the Future” campaign was a bold move by the brand, as it highlighted its commitment to social responsibility and sustainability.
Discover L’Oreal for the Future – L’Oreal
L’Oreal’s marketing campaigns have inspired and empowered individuals to embrace their unique beauty, and the brand’s continued commitment to innovation and social responsibility promises to shape the future of beauty.
L’Oreal, one of the world’s leading beauty companies, has built its success on a well-crafted marketing mix. The marketing mix, also known as the 4Ps (product, price, promotion, and place), is a fundamental concept in marketing that businesses use to create a cohesive marketing strategy. Let’s see how L’Oreal has used the marketing mix to create a successful brand and connect with its customers.
Loreal Marketing Mix
Product
L’Oreal offers a wide range of beauty products that cater to different customer needs and preferences. The company’s product line includes skincare, hair care, makeup, and fragrance products. L’Oreal has also developed separate product lines for specific customer segments, such as men and young adults. The company continuously innovates and introduces new products to stay ahead of competitors and meet changing customer demands. L’Oreal’s focus on research and development ensures that its products are of high quality and provide excellent value to customers.
Loreal Pricing Strategy
L’Oreal products are priced to reflect their quality and value. The company uses a premium pricing strategy for its high-end products and offers affordable prices for its mass-market products. L’Oreal’s pricing strategy is based on market segmentation, with different price points for different customer segments. The company uses promotional pricing during specific times of the year, such as during the holiday season or for new product launches, to encourage customers to try its products.
Promotion
L’Oreal uses a variety of marketing channels to promote its products, including traditional advertising, digital marketing, and influencer marketing. The company’s advertising campaigns are known for their high production values and emotional appeals. L’Oreal also uses social media platforms, such as Instagram and YouTube, to reach younger customers and connect with them in a more personal way. The company also collaborates with influencers and celebrities to promote its products and increase brand awareness.
Place
L’Oreal products are sold through a variety of channels, including retail stores, department stores, and online retailers. The company uses a selective distribution strategy, which means it only sells its products through authorized retailers to maintain the brand’s exclusivity and quality. L’Oreal also operates its e-commerce platform, where customers can purchase products directly from the company’s website. The company’s strong distribution network ensures that its products are widely available and easily accessible to customers.
L’Oreal has built a successful brand by using a well-crafted marketing mix. The company’s focus on high-quality products, premium pricing, emotional appeals in its promotional campaigns, and strategic distribution has enabled it to connect with its customers and maintain its position as a leading beauty company. L’Oreal’s commitment to innovation and customer satisfaction ensures that the brand will continue to thrive in the highly competitive beauty industry.
Loreal Marketing Strategy
L’Oreal has established itself as a trendsetter in the industry. Its innovative and creative marketing strategies have helped it stay ahead of the competition and connect with its customers in a meaningful way. L’Oreal’s marketing strategies are diverse and constantly evolving, reflecting the company’s commitment to staying ahead of the curve.
Let’s explore L’Oreal’s marketing strategies and how the company has successfully built a strong brand that resonates with consumers around the world.
Research and Development
L’Oreal has a robust research and development team that is constantly developing new products and improving existing ones. The company invests heavily in research and development to create innovative and effective products that meet the needs of its customers. This strategy has helped L’Oreal stay ahead of the competition and create products that are truly groundbreaking.
A Snapshot of L’Oreal’s Website
Storytelling
L’Oréal is great at using emotional stories in its marketing. The company knows people connect with brands through feelings, not just products.
Instead of only talking about product features, L’Oréal’s ads focus on common hopes and worries about beauty. This helps build strong, lasting connections with customers.
For example, the “True Match 2018” campaign celebrated diversity and helped people find their perfect foundation shade, making everyone feel included and confident.
L’oreal Marketing Strategy
Digital Marketing
L’Oreal is a leader in digital marketing and has been able to leverage social media platforms and influencer collaborations to engage with younger customers. The company has a strong social media presence, with millions of followers across different platforms. It regularly posts engaging and visually appealing content that resonates with its target audience. L’Oreal also collaborates with influencers to promote its products, reaching a broader audience and driving sales.
L’oreal Advertising Campaigns
Emotionally Charged Campaigns
L’Oreal’s marketing campaigns are often emotionally charged, featuring empowering messages that resonate with customers. One of the most iconic examples of this approach is the “Because I’m Worth It” campaign, which encourages women to feel confident and beautiful. The campaign has been a defining element of the brand’s identity for over four decades and has helped create a strong emotional connection between the brand and its customers.
Diversity and Inclusivity
L’Oreal has a strong commitment to diversity and inclusivity, and this is reflected in its marketing strategies. The company has launched campaigns featuring models of different ethnicities, body types, and ages. Its “True Match” campaign aimed to provide makeup products that matched a wide range of skin tones, helping customers feel seen and represented. This approach has helped L’Oreal appeal to a broad range of customers, creating a brand that is inclusive and relatable.
L’Oreal for different ethnicities, body types, and ages
Sustainability and Social Responsibility
Today, many customers want brands that care about people and the planet. L’Oréal focuses on sustainability to connect with these customers and show it acts responsibly.
L’Oréal’s sustainability program focuses on four main areas: eco-friendly packaging, safer product formulas, reducing environmental impact, and supporting women’s empowerment. The company works to use recyclable materials, create green products, lower its carbon footprint, and help women.
L’Oréal aims to cut greenhouse gas emissions by 50% per product by 2030 and make all its sites carbon neutral by 2025. These goals show L’Oréal’s strong commitment to protecting the environment and leading in sustainable beauty.
Influencer Marketing
L’Oréal knows that social media influencers greatly affect what people buy. So, they use influencer marketing to reach many different groups and grow their brand. They work with a variety of influencers, women, men, and non-binary, from different backgrounds to connect with more people. Some famous partners include Kaushal Beauty and Patricia Bright.
L’Oréal also partners with influencers from around the world, like India and Finland, to celebrate all cultures. They even featured influencers over 45 to show beauty at every age.
By working with diverse influencers, L’Oréal builds trust, stays popular on social media, and keeps leading in the beauty world.
Conclusion
L’Oreal’s Paris marketing strategies have been instrumental in building a strong and recognizable brand that resonates with customers across the globe. The company’s focus on research and development, digital marketing, and emotionally charged campaigns have helped it stay ahead of the competition and connect with customers on a deeper level. L’Oreal’s commitment to diversity and inclusivity in its marketing strategies has also helped it appeal to a broad range of customers. As L’Oreal continues to evolve and innovate, it is certain to remain a trendsetter in the beauty industry.
If you are a business owner or marketer looking to take your brand to the next level, take inspiration from L’Oreal’s marketing strategies. By implementing these strategies, you can build a strong and recognizable brand that connects with customers on a deeper level and stays ahead of the competition. So go ahead and start implementing these strategies in your marketing efforts.
FAQs
What is Loreal target audience age?
L’Oreal’s target audience is women of all ages to men looking to groom themselves. The brand also targets young adults and beauty enthusiasts who are passionate about trying new products and staying ahead of the curve.
What are some successful marketing campaigns of L’Oreal?
Some of L’Oreal’s most successful marketing campaigns are –
Because I’m Worth It Campaign
The Smart Hairbrush Campaign
The True Match Campaign
The L’Oreal for the Future Campaign
What are Loreal core values?
L’Oréal’s core values focus on innovation, quality, and respect. The company is committed to creating high-quality beauty products through continuous research and creativity. It values diversity and inclusion, celebrating beauty in all forms and cultures. Sustainability and social responsibility are also key, as L’Oréal strives to reduce its environmental impact and support communities worldwide. These values guide everything L’Oréal does, helping it stay a trusted and leading brand in the beauty industry.
The extensive Nestlé business model canvas offers valuable insights for owners and marketers. The multinational food and beverage corporation is able to have a significant market presence thanks to its elaborate and innovative business strategies. The business effectively links itself to health, well-being, and nutrition, which increases customer loyalty.
Nestlé’s inspirational narrative began in Switzerland in the 1860s. Due to inadequate nourishment, infants at that time faced potentially fatal problems. Henri Nestlé, the company’s founder, recognised this widespread issue and sought to address it.
Nestlé used his experience as an apprentice pharmacist to make a “soup for infants” out of bread, milk, and sugar. Children were able to save their lives with this cereal, which then spread throughout Europe and beyond. Henri founded the company in 1867, and in 1905 it amalgamated with the Anglo-Swiss Condensed Milk Company. The Nestlé Group was founded as a result of this transaction.
After surviving two World Wars and other major events, this consumer brand saw the highs and lows of the economy. It is now a conglomerate firm that owns 29 well-known brands, such as Kit Kat, Nespresso, and Nescafé.
Nestlé’s business strategy places a strong emphasis on innovation, global sustainability, and ethical sourcing. The business regularly modifies its products to satisfy changing consumer tastes and dietary requirements by utilising its strong supply chain and cutting-edge R&D skills. Nestlé’s dedication to improving health and well-being is demonstrated by its specialised research facilities and emphasis on long-term sustainability initiatives like lowering environmental impact and raising community standards of living. In order to maintain its leadership position in the food and beverage sector, the company also makes large investments in technology to increase operational effectiveness and product quality.
Nestle Business Model Canvas
Nestlé, a global leader in the food and beverage industry, operates with a strong focus on innovation, sustainability, and consumer health. Its business model is built on a diverse portfolio, advanced R&D, and an extensive global presence. Below is a detailed Business Model Canvas highlighting Nestlé’s strategic approach.
Nestle Business Model Canvas
1. Key Partners
Farmers and raw material suppliers (e.g., dairy, cocoa, coffee)
Retail and e-commerce platforms (e.g., Walmart, Amazon)
Premium and personalized experiences (e.g., Nespresso)
Sustainable sourcing and ethical practices
Innovative, science-based nutrition solutions
Wide global availability and cultural relevance
5. Customer Relationships
Loyalty programs (e.g., Nespresso Club)
Customer service and support
Personalized offers through digital platforms
Health and nutrition consultation (via Health Science)
Community engagement and sustainability transparency
6. Channels
Supermarkets and hypermarkets
Convenience and traditional stores
Company-owned stores (e.g., Nespresso)
E-commerce platforms and direct-to-consumer sites
Subscription models (e.g., Nespresso pods)
Institutional sales (e.g., hospitals, schools)
7. Customer Segments
Mass consumers (everyday grocery shoppers)
Health-conscious individuals and patients
Coffee and premium food lovers
Parents and children (e.g., baby food, cereals)
Businesses (HORECA – Hotels, Restaurants, Cafes)
Emerging market consumers
8. Cost Structure
Raw materials procurement (milk, cocoa, etc.)
Manufacturing and distribution costs
R&D and innovation expenses
Marketing and brand promotion
Sustainability and compliance investments
Technology and digital infrastructure
9. Revenue Streams
Retail and e-commerce product sales
Health Science division (medical nutrition)
Premium product lines (e.g., Nespresso)
Coffee machines and accessories
Subscription services (e.g., Nespresso pods)
Licensing and brand partnerships
How Nestle Makes Money?
Nestle Annual Revenue
According to Nestlé’s latest financial report, the company earned $101.54 billion USD in revenue over the past 12 months.
In 2024, Nestlé made $101.54 billion, which is $11.95 billion more than what it earned in 2023.
Nestlé has a diverse revenue model that leverages both direct and indirect sales channels. The company makes money by selling its wide range of products on several retail and internet channels throughout the world. Strategic business segments include health science, where specialised medical nutrition products address certain health issues and support revenue. Additionally, via brand loyalty and distinction, premium products like Nespresso increase profit margins. Nestlé’s global reach and adaptable pricing policies enable it to manage market swings, guaranteeing steady revenue growth successfully.
Additional products like coffee machines and subscription services are provided by Nestlé brands, expanding their revenue streams and bolstering their long-term financial success in the marketplace.
Nestlé’s extensive worldwide reach, which currently includes more than 2,000 brands in 190 countries, as of now. Nestle India’s total revenue in 2024 was INR 245 billion. This was a rise from the previous year, when the total revenue was approximately INR 192 billion.
Nescafe, KitKat, Maggi, and Nestea are just a few of the many well-known and respected brands that Nestle owns.
Nestle has operations in more than 190 nations, giving it access to a wide range of markets and a sizable client base.
Nestle makes significant investments in R&D in order to innovate and produce new goods.
Nestle Weakness
Despite being present all over the world, Nestle’s revenue is largely dependent on a small number of important markets.
Over the years, Nestle has been involved in a number of unethical issues and controversies, including claims of unethical marketing tactics, resource exploitation, and labour rights violations.
Nestle is susceptible to product recalls, just like any other food and beverage firm.
Nestle Opportunities
The demand for better food and beverage options is rising as consumers become more health-conscious. Nestle may benefit from this trend by adding more wholesome and useful items to its lineup.
For Nestle, emerging markets like China, India, and Brazil present substantial development prospects.
Nestle might investigate collaborations and strategic acquisitions to broaden its product line and penetrate new markets.
Nestle Threats
There are many domestic and international competitors fighting for market share in the fiercely competitive food and beverage sector. Companies like Unilever, Coca-Cola, and PepsiCo compete fiercely with Nestle, which may affect its profitability and market position.
Nestle must continuously innovate and modify its products since consumer trends and preferences can shift quickly.
Nestle has operations in several nations, each with its own set of rules and guidelines. It can be difficult to comply with these rules, which could lead to extra expenses and limitations on the business’s activities.
Nestle leads the industry thanks to a number of advantages, including a robust portfolio of brands and a global presence. But the business also has drawbacks, like reliance on a small number of markets and reputation-damaging controversies. Nestle can benefit from expanding into emerging areas and the rising demand for healthier options. It is also threatened by fierce competition, shifting customer tastes, and difficult regulations.
FAQ
Who is the Founder of Nestlé?
The founder of Nestlé is Henri Nestlé.
Who is CEO of Nestlé?
Laurent Freixe is the current CEO of Nestlé.
What is the main business of Nestlé?
Here are some of the ways Nestlé makes money:Nestlé’s main business is producing food and beverages, including products like dairy, coffee, bottled water, and nutrition items.
What is Nestle USP?
Nestlé’s extensive worldwide reach, which currently includes more than 2,000 brands in 190 countries, as of now. Nestle India’s total revenue in 2024 was INR 245 billion. This was a rise from the previous year, when the total revenue was approximately INR 192 billion.
What is business model of Nestle?
Nestlé’s business model is based on producing and selling food, beverages, and health products across global markets. It earns money through retail, e-commerce, premium products like Nespresso, and health nutrition solutions, supported by strong brands, R&D, and a global supply chain.
Which is Nestlé owner country?
Nestlé is originally from Switzerland. It is a Swiss multinational company headquartered in Vevey, Switzerland.
A vibrant and forward-thinking furniture rental business, Furlenco serves city people looking for adaptable and fashionable living options. Furlenco, an Indian company, offers a large selection of kitchen, living room, and bedroom furniture in addition to necessary household appliances.
In this article, we explore the Furlenco business model and how the company makes money through its subscription-based rental services.
About Furlenco
In 2012, Ajith Mohan Karimpana created Furlenco. In October 2011, it began as “Rent Ur Duniya” before changing its name to Furlenco. Its products are thoughtfully chosen to satisfy the needs and preferences of modern lives. with addition to being ideal for families and young professionals who move about a lot, Furlenco’s products are also ideal for people who would rather not be constrained by the high expenses and obligations involved with buying furniture. Customers may browse, choose, and have their chosen furniture delivered and installed hassle-free thanks to the company’s user-friendly online platform.
With Furlenco’s subscription-based business model, clients can rent furniture for a variety of lengths of time, from months to years, depending on their needs. Without having to worry about ownership, this concept enables customers to continuously update or modify their furniture arrangement to suit their changing needs and preferences. Furlenco also provides customised furniture packages that are regularly updated to take into account customer preferences and the newest trends. Because customers are more likely to stick with a service that can easily adjust to their changing lifestyles, this strategy not only guarantees customer happiness but also improves customer retention.
How Furlenco Makes Money?
Furlenco’s revenue model is based mostly on these membership fees, which offer a consistent and reliable source of income.
Generating Revenue Through Subscription Fees– In order to keep the furniture in excellent shape, customers pay a monthly leasing cost that covers maintenance and upgrading services.
Generating Revenue Through Premium Charges- Through extra services like damage waiver policies and premium packages, which offer benefits like reduced tenure commitments and first dibs on recently introduced furniture lines, Furlenco further augments its revenue.
Generating Revenue Through Wide Variety of Products- Furlenco sustains a steady revenue stream by utilising a variety of product offerings and adaptable subscription plans, all the while always innovating to satisfy the changing demands of its clientele.
This concept helps the business reduce the depreciation risks usually connected with furniture while simultaneously optimising lifetime customer value.
USP of Furlenco
By incorporating sustainable practices into the sharing economy, businesses like Furlenco are setting the norm and advancing the much-needed circular economy and that is its main USP.
SWOT Analysis of Furlenco
SWOT Analysis of Furlenco
Strengths
Since 2012, Furlenco has built strong relationships with its clients, and as a result, it has been able to reach most of its potential market by offering fantastic home décor services.
Creating a Strong Dealer Community helps the sales staff explain the advantages of the items to clients and motivates the dealers to market the company’s goods and services.
Furlenco has been successful in cultivating a highly skilled workforce through training and learning initiatives. Furlenco invests a lot of money in the training and development of its staff, which produces a group of people that are not only extremely skilled but also motivated to achieve more.
Weaknesses
Furlenco has a distinctive marketing approach, but other new businesses and other well-known brands are also developing fresh approaches.
Furlenco’s potential for growth may be constrained by its concentration on particular demographics and geographical areas.
Poor customer service, especially with relation to order pickups and delays, has been noted by a few consumers.
Opportunities
Furlenco has the potential to investigate opportunities to expand into new consumer segments and geographical markets.
Lead generation and service promotion can be achieved by utilising social media platforms for targeted advertising, including sponsored advertisements and organic content.
Working along with other enterprises, like real estate firms or interior designers, can open up new growth opportunities.
Threats
With new competitors joining the market, the furniture rental industry is becoming more competitive.
Uncertainty in the economy might affect consumer spending and lower demand for luxuries like furniture rental.
Supply chain interruptions, including those brought on by world events, may affect product availability and delivery schedules.
Conclusion
The transformation of Furlenco from a start-up to a major force in the furniture rental industry is a perfect example of strategic innovation, customer-focused service, and flexibility. Furlenco is not only meeting customer expectations but also establishing the standard for the industry as a whole by continuing to place a high priority on adaptability, sustainability, and a flawless user experience. Furlenco is a shining example of how to prosper in a world where convenience reigns supreme and access surpasses ownership by genuinely comprehending and satisfying the changing needs of its clientele.
Furlenco is an Indian furniture rental company that offers stylish and adaptable furniture and home appliances for rent.
Who is the founder of Furlenco?
Furlenco was founded by Ajith Mohan Karimpana in 2012. It was initially launched as “Rent Ur Duniya” in October 2011 before rebranding to Furlenco.
What is Furlenco’s business model?
Furlenco operates on a subscription-based rental model where customers pay a monthly fee to use furniture and appliances. The model allows flexibility in rental duration, easy upgrades, and minimal ownership hassle.
The used automobile industry in India has grown within the past ten years. People favor used cars over brand-new ones. Why? Buying a used automobile not only saves money but also eases your concerns about tiny dings and scratches! For entrepreneurs in this market, the increase in demand for secondhand cars was a huge potential. With this business line in mind, Spinny has developed a successful business plan and has so far outperformed its rivals. Let’s examine its business model to see how it rose to prominence in this field.
About Spinny
Established in 2015 by Ramanshu Mahaur, Niraj Singh, Ganesh Pawar, and Mohit Gupta, Spinny sprang to prominence as one of the leading providers of luxury pre-owned automobiles. Customers may easily buy or sell old cars on this cutting-edge platform. According to customer reviews, the platform is completely reliable. More than 5,000 completely inspected used automobile models are available. It provides after-sales services in addition to a hassle-free automobile buying and selling experience. A company that sells used cars and provides after-sales services is a customer’s fantasy come true.
Managing vehicle documentation and ownership transfer
Operating a hybrid (phygital) customer experience
3. Value Propositions
Fully certified, quality-assured used cars
Transparent pricing with no hidden charges
End-to-end service: inspection, purchase, documentation, and delivery
Phygital model: seamless online browsing + offline test drives
Same-day evaluation, instant payment to sellers
Trusted platform with no middlemen
4. Customer Relationships
Personalized customer support (online and offline)
After-sales services and support
Easy return & refund policies
Trust-building through transparent and reliable processes
5. Channels
Spinny’s website and mobile app
Experience centers and hubs across cities
Digital marketing and social media
Partnered loan/insurance platforms
6. Customer Segments
Used car buyers seeking quality-assured vehicles
Car owners looking to sell used vehicles quickly
First-time car buyers preferring affordable options
Middle-income and urban customers valuing convenience and trust
7. Cost Structure
Vehicle procurement costs
Inspection and refurbishment expenses
Operations and logistics (hub rent, test drives, delivery)
Salaries and staff
Marketing and customer acquisition
Technology and platform maintenance
8. Revenue Streams
Primary: Profit margin from buying and selling used cars
Secondary:
Inspection service fees
Extended warranty packages
Financing/loan facilitation income
Commissions from direct-sell transactions
Referral commissions from insurance & finance partners
9. Key Resources
Inspection and refurbishment infrastructure
Digital platform (app/website)
Vehicle inventory
Trained technical and customer support staff
Experience centers and operational hubs
Strategic partnerships with financial and insurance institutions
Spinny Business Model
Spinny is a site for buying and selling old cars. Keep in mind that it is an independent site and does not act as a middleman or include any middlemen. It merely purchases automobiles from their owners and resells them to consumers. It provides a carefully chosen range of used vehicles that have undergone a rigorous certification and inspection procedure to guarantee quality.
Used automobiles are sourced by Spinny from a variety of sources, including auctions, dealers, and direct owners. To guarantee its quality and condition, every vehicle goes through a rigorous certification and inspection procedure. Gaining the trust of clients requires this step. Customers can then peruse the certified vehicles’ comprehensive details and photos on the Spinny cars website and app.
The company uses a phygital methodology, which combines digital and physical methods. It can be referred to as a hybrid model since it blends physical locations around India with internet services. Customers can have a smooth purchasing experience with this method, which combines the ease of internet browsing with the guarantee of in-person inspection and test drives. Because Spinny offers clear pricing for its cars, it’s simpler for customers to comprehend the expenses. Customers receive the greatest deals based on the market worth and condition of the car thanks to the transparent pricing model.
Spinny’s overall revenue increased by 4.5 times to INR 180 crore in the fiscal year 2022. In the market for used cars, Spinny uses a full-stack business model. From the inventory of cars to the in-store experience, it has complete control over the process. Spinny can make money using a variety of channels thanks to this concept.
Generating Revenue Through Car Sales: Spinny buys, fixes, and sells used cars. It sources used cars from dealerships and auctions in addition to purchasing them from private sellers. Spinny makes money from the difference between the purchase and sale prices by selling the cars to clients at a markup after they have been refurbished and certified.
Generating Revenue Through Value-Added Services: In order to make more money, Spinny charges for extra services including auto inspections, extended warranties, and auto loans. When it comes to extra services, auto inspections make the most contribution. The cost of performing inspections is one of the inspection services offered to car sellers. Additionally, the company’s after-sales service packages are a vital source of income.
Generating Revenue Through Commission on Sales: When a used car is sold through its platform, Spinny receives a commission for each successful transaction. However, there is a catch when it comes to commission. Additionally, Spinny serves as a marketplace for people looking to sell their vehicles directly to consumers. In these situations, Spinny helps with the selling process and receives a commission for successful sales.
Generating Revenue Through Partnership Programs: Spinny has partnerships with insurance companies, banks, and other service providers. When clients choose to use Spinny’s platform to purchase their services, Spinny receives referral fees or commissions from these relationships. As a result, Spinny makes money by collaborating with insurance and financial institutions.
Spinny Financials 2024
Spinny Revenue 2024
In FY23, Spinny reported an operating revenue of INR 3,259.7 crore, while its total expenses amounted to INR 4,196 crore, resulting in a loss of INR 819.89 crore. For FY24, the company saw a rise in revenue to INR 3,725 crore, but expenses also increased to INR 4,409 crore, leading to a smaller loss of INR 590.37 crore.
USP of Spinny
The unique selling point of Spinny is that, on the same day that the evaluation team at Spinny determines that a used car is suitable for purchase, it takes custody of the vehicle that satisfies quality standards and additional requirements, such as driving and service history, pays the owner in full, and handles the transfer of the vehicle’s documentation.
SWOT Analysis of Spinny
Spinny SWOT Analysis
Spinny Strengths
In addition to providing financing options, Spinny has seen a surge in digital sales.
Spinny provides real-time video conversations with executives, home delivery, and home test drives.
The complete car history, along with high-definition photos, is available on the Spinny website.
Spinny Weaknesses
Spinny’s growth in new markets has slowed.
Spinny’s pricing is greater than those of competing sites, according to numerous consumer reports.
Spinny Opportunities
In India, the market for used cars has been expanding and is predicted to keep doing so.
By offering financing alternatives, Spinny can boost sales.
Spinny Threats
As the used car market is expanding, more players are likely to join this sector which means competition will increase to the next level.
This spike in demand for used cars will also attract international players and these companies have deep pockets.
Spinny needs to keep updating its technology to lead the race.
Spinny’s customer-centric approach and technical innovations are revolutionizing the used car sector. It uses a direct-to-consumer business strategy and offers a carefully chosen range of previously owned cars that have been examined, certified, and covered by warranties. Spinny provides more reasonable pricing and superior quality assurance by doing away with middlemen and showroom overhead. Significant growth and client loyalty have resulted from their tech-driven solutions and customer-centric approach.
To sum up, Spinny’s business strategy alters the conventional used car industry. It emphasizes value, convenience, and trust, all of which are advantageous to both buyers and sellers.
FAQs
What is Spinny company and what does Spinny do?
Spinny is a used car trading platform that aims to deliver affordable used cars via an easy and transparent process for everyone.
What is Spinny Business Model?
Spinny’s business model focuses on buying, certifying, and selling used cars online. It offers financing, warranties, home delivery, and test drives. Revenue comes from car sales, commissions, and additional services, using technology for seamless operations.
How does Spinny make money?
Spinny makes money by selling used cars, earning a margin on each sale. It also generates revenue from financing options, commissions on car sales, extended warranties, and value-added services like home delivery and test drives.
What is Spinny franchise cost?
As a Spinny Affiliate, you can assist car owners in selling their vehicles through Spinny and earn up to INR 10,000 for every successful car purchase or sale.
What is Spinny profit margin?
Spinny’s net profit margin is currently negative, as total expenses exceed revenue due to high operational and expansion costs.
What is Spinny net worth?
Spinny’s estimated valuation is between US$1.5 billion and US$1.7 billion.
In today’s time of digital discounts and instant savings, coupons do more than just save us money; they fall into deep psychological triggers. Whether it’s a paper coupon, a promo code, or a cashback offer, the thrill of “saving” often outweighs the actual benefit. So why do we chase discounts, even when the payoff is small?
Consumers make choices based on coupons, whether they feature 20% off, free delivery, or a buy-one-get-one deal. When you understand how coupons influence consumer behaviour, you can create smarter marketing strategies that drive results and build loyalty. This article explores the psychology of discounts and how they influence consumer behaviour.
How Discounts Hack Your Brain – The Psychological Triggers Behind Every Discount
How Discounts Hack Your Brain – The Psychological Triggers Behind Every Discount
Limited-Time Offers Trigger Urgency and Impulse
Discounts with deadlines create a powerful sense of urgency that can override rational decision-making. When we see messages like “Only 3 hours left!” or “Sale ends tonight!”, our brain shifts into action mode.
Fact: According to Statista, 68% of shoppers admit to buying things they didn’t plan to because they were on sale.
Why It Works: Time-sensitive deals tap into our FOMO (Fear of Missing Out). The ticking clock makes us feel we will miss something valuable. This emotional pressure often leads to spontaneous purchases, even when the item wasn’t originally on our radar.
This generation sees coupons and promo codes as part of a smart shopping strategy, not just a bonus. Whether it’s installing browser extensions, subscribing to deal newsletters, or hunting for limited-time discounts, millennials are proactive deal seekers.
The Millennial: A Deal-Seeking Generation
This generation sees coupons and promo codes as part of a smart shopping strategy, not just a bonus. Whether it’s installing browser extensions, subscribing to deal newsletters, or hunting for limited-time discounts, millennials are proactive deal seekers.
Fact: Nearly 70% of millennials search for a deal before purchasing.
Why It Matters: Millennials comprise the largest consumer segment today, meaning their buying habits hold serious weight for businesses. Brands that understand their value-first mindset and offer relevant, time-sensitive deals are made to win their loyalty and wallets.
Many consumers stick to what they know, but the right coupon can change that behaviour. A well-timed discount can break brand loyalty and nudge shoppers toward trying something new. It shifts the mindset from “Why take the risk?” to “Why not give it a try?”
Fact: A survey found that 80% of shoppers are willing to switch brands or try a new business if offered a coupon or promotional deal.
Why It Works: Coupons lower the perceived risk of trying something unfamiliar. Imagine you have a favourite pizza place. Would you normally pay full price to try a different one? Probably not. But if you get a 50% off coupon, suddenly it feels worth a shot. Even if the pizza comes loaded with anchovies you didn’t ask for, you didn’t pay full price, so the risk feels smaller.
Anchoring in Pricing Strategy: The Power of Comparison
Have you ever seen a product listed as “INR 2,000” but you get it only for INR 1,000 and felt like you are getting a steal? That’s the anchoring effect at work.
Why It Works: Our brains are wired to compare numbers. When we see an original price crossed out, we automatically anchor our perception of value to it, even if that price was artificially inflated. So, INR 1,000 feels like a deal when it is framed against INR 2,000, even if INR 1,000 is the product’s actual worth.
Example: You might hesitate to pay INR 1,000 for a pair of shoes until you see they were “originally” INR 2,000. Suddenly, it feels like a bargain, not a splurge.
Too Good to Resist: The Freebie Effect
There’s something magical about the word “free.” Offers like “Buy 1 Get 1 Free” often feel more rewarding than an up to 50% discount, even though the savings are mathematically the same.
Fact: A study cited by Forbes found that freebies increase purchase likelihood by 88%.
Why It Works: Our brains are wired to respond emotionally to the concept of “free.” It creates a sense of gain without loss, making the offer feel more valuable.
When businesses offer exclusive deals or personalized discounts, customers feel valued, as if the brand created the offer just for them. This sense of appreciation strengthens emotional connections and makes customers more likely to return, even when competitors offer similar promotions.
Discounts Encourage Brand Switching
When shoppers are faced with a tempting offer from a new or lesser-known brand, they become significantly more open to stepping outside their usual preferences.
This behaviour is linked to risk aversion, a psychological principle where people like to avoid uncertainty.
Fact: Around 80% of consumers say they’d try a new brand if offered a discount.
Going with the Flow
We are more likely to purchase when we see others doing the same. This psychological phenomenon, known as social proof, plays a powerful role in discount-driven shopping behaviour.
Fact: According to the India Retail Report, 60% of shoppers say they feel more inclined to buy during a sale simply because others are shopping too.
Why It Works: When we see “Best Seller” labels, crowded stores, or products tagged as “Most Popular,” it creates a bandwagon effect, subtly telling us, “If others are buying it, it must be a smart choice.” Discounts enhance this further to join the crowd and not miss out.
The Power of Personalized Offers
Instead of blanket promotions, brands are now turning to personalized offers, crafted based on a customer’s browsing history, purchase behaviour, and loyalty tier. This targeted approach makes customers feel seen and appreciated, and helps businesses protect their profit margins by offering discounts only when and where they matter most.
Creating Positive Shopping Memories
Saving money doesn’t just benefit the wallet; it boosts emotions, too. When customers use coupons and walk away feeling like they got a great deal, they associate that positive experience with the brand.
This emotional connection turns into a loyalty loop. Shoppers who feel good about their savings are far more likely to return, recommend the brand to others, and become long-term customers.
The Importance of Transparency in Pricing
Today’s consumers are more cautious than ever when it comes to discounts, especially online. With inflated “original prices” and misleading markdowns becoming common tactics, trust is harder to earn. In fact, research shows that over 60% of online shoppers compare prices across multiple websites before making a purchase, making it easier to detect fake deals. For brands that rely on promotions, transparency is key. Clear, honest pricing builds credibility and encourages repeat business.
Conclusion
In today’s hyper-competitive market, understanding these psychological principles is not just helpful, it’s essential. Brands that master the art of discounting with authenticity, timing, and personalization will do more than boost sales; they’ll build trust, spark loyalty, and create shopping experiences customers genuinely enjoy.
Coupons offer more than just discounts; they can open up new experiences and possibilities for discovering brands and products you might not have previously found out. It is the foundation for repeat purchases, better customer relationships, and organic brand advocacy. For businesses, feel-good moments go beyond one-time rewards.
Why do discounts influence consumer behavior so strongly?
Discounts tap into deep psychological triggers like urgency, fear of missing out (FOMO), and emotional gratification. Offers such as limited-time deals, freebies, and percentage discounts create a perception of value, prompting spontaneous purchases and influencing buyer decisions.
Why are “Buy 1 Get 1 Free” offers so effective?
Buy 1 Get 1 Free” taps into the freebie effect, which creates a powerful emotional reaction.
Can offering coupons improve brand loyalty?
Yes, Coupons that offer real value and are personalized to customer needs help create positive shopping experiences.
As a world leader in online classifieds, OLX Group offers a platform that enables people to efficiently and easily purchase, sell, or trade a wide variety of used goods and services. In an effort to streamline transactions in local communities, OLX Group uses cutting-edge technology to make item listings as simple as possible.
OLX, which was founded in 2006 by Fabrice Grinda and Alec Oxenford, is a global company that facilitates millions of transactions between buyers and sellers via its website and mobile application. Known for its easy-to-use interface and wide reach, Olx Group upholds its objective of establishing a trustworthy and easily accessible marketplace where consumers can easily get rid of things they no longer need or get reasonably priced items that meet their needs.
The core of OLX Group’s business strategy is offering a strong digital platform that serves a range of market niches. In contrast to conventional classified services that mostly rely on physical posts, OLX incorporates cutting-edge technological solutions to improve transaction security and user experience. In order to provide individualised suggestions and identify possibly fraudulent activity, this novel solution makes heavy use of data analytics, machine learning, and artificial intelligence. This ensures that the marketplace is safe and efficient for its customers. In order to increase its market penetration and user engagement, OLX Group also places a high priority on mobile access, acknowledging the growing reliance on mobile devices for online transactions.
How OLX Makes Money?
OLX Group’s revenue model is complex, utilising a variety of revenue sources to sustain and grow the business.
Generating Revenue Through Premium Listing Fees: Premium listing fees, which users pay to advertise their ads for increased exposure and quicker transactions, are how OLX makes money.
Generating Revenue Through Advertising Fees: In order to monetise its substantial traffic, OLX also makes money by providing advertising services to companies wishing to target particular demographics within its large user base.
Generating Revenue Through Transactional Fees: Transactional fees for value-added services, like safe payment methods and shipping alternatives, are another important part of the income stream. Through income diversification and ongoing product improvement, Olx Group guarantees a long-term business operation that adjusts to consumer tastes and market demands.
USP of OLX
OLX’s primary USP, its mobile-first strategy, greatly increased its market penetration. More than 75% of OLX consumers access the marketplace via the mobile app as of 2024, highlighting how important mobile technology is to their strategy.
SWOT Analysis of OLX
SWOT Analysis of OLX
Strengths
More than 100 nations are home to OLX. This is one of the brand’s great advantages. The platform would see a large number of users if it had a strong presence in numerous nations.
With around 11 billion page visits, OLX has a strong brand image. Additionally, it has roughly 25 million listings, 8.5 million transactions, and 200 million active users per month.
Naspers provides OLX strong support. Naspers has extensive expertise working with several eCommerce giants.
Weaknesses
Due to its reliance on technology, OLX is unable to attract potential clients who are not internet users.
There is a potential that the quality would suffer because a lot of customers and vendors interact online and have different conversations there.
There is a risk that OLX might also engage in fraudulent conduct because it is a completely online platform where many people connect and discuss their sales and purchases.
Opportunities
OLX believes that diversifying its product listing will increase its opportunities. It might contain a lot of product subcategories, which would give buyers and sellers more chances to go through their needs.
Establishing an offline channel will allow OLX to expand its advertising reach and raise platform brand recognition.
By posting employment openings, this online portal can expand its offerings. This would increase its business opportunities and boost the number of users.
Threats
Quickr is one of the numerous competitors that OLX encounters at a similar domain, which poses a serious danger to the brand.
Second-hand goods are sold at a discount at many physical establishments. Additionally, this poses a risk to the brand. In order to view and feel the thing before making a purchase, people would rather visit an offline store.
Conclusion
By offering a dependable and trustworthy platform for purchasing and selling goods and services, OLX has grown to become a dominant force in the online marketplace sector. OLX makes money through ads, Google Custom Search Engine, Sponsored Links, and Sponsored Listings. Its business strategy is centred on boosting user traffic and listing counts. Additionally, the business has introduced cutting-edge services, including the option for sellers to pay to have their listings featured, which increases revenue for both OLX and the seller. The success of OLX is evidence of the value of flexibility and creativity in the modern, fast-paced digital environment, and its sustained expansion is something to keep an eye on in the years to come.
FAQs
What is OLX ?
OLX is a global online classifieds platform founded in 2006 that allows users to buy, sell, or trade second-hand goods and services easily.
Who founded OLX and when?
OLX was founded in 2006 by Fabrice Grinda and Alec Oxenford.
What is the main revenue model of OLX?
OLX earns through multiple streams: premium listing fees, advertising services for businesses, and transactional fees for value-added services like secure payment and shipping.
Shiprocket is a prominent Indian logistics and supply chain solutions company that facilitates seamless e-commerce shipping for businesses of all sizes. The company offers a platform that enables users to ship products through various courier companies. It also provides a dashboard that enables users to track and manage orders and offers an API for developers to integrate the company’s services into their own applications.
About Shiprocket
Shiprocket was founded in 2017 by Vishesh Khurana, Gautam Kapoor, Saahil Goel, and Akshay Ghulati. Since then, it has been a dependable partner in the e-commerce industry. The company’s business strategy centres on giving retailers a complete, technologically advanced platform to effectively handle their shipping requirements. Order fulfilment, shipping, and tracking solutions are just a few of the services that Shiprocket provides.
Simplifying the logistics process for online retailers is the foundation of Shiprocket’s business strategy. Because the platform interfaces with numerous courier providers, merchants may select the most dependable and affordable shipping solutions. From order processing to last-mile delivery, Shiprocket’s technology optimises the shipping process. The company serves a wide range of customers, from tiny companies to major e-commerce organisations.
How Shiprocket Makes Money?
Shiprocket combines various business concepts to generate revenue.
Generating Revenue Through Per-Shipment Charges: Businesses must pay a fee to Shiprocket for each shipment handled via their network. Logistics and shipping aggregators frequently use this kind of income, which enables them to make money according to the volume of transactions.
Generating Revenue Through Subscription Plans: Medium and big merchants can choose from membership levels offered by Shiprocket. These programmes offer advantages including priority assistance, access to numerous e-commerce channel connections, and reduced shipping costs.
Generating Revenue Through Value-Added Services: Shiprocket provides its clients with a number of value-added services, such as order management tools, shipment tracking, courier suggestions, and automatic shipping labels. While some of these services might be offered without charge, some might have an additional fee.
USP of Shiprocket
Shiprocket’s strong technological infrastructure is its unique selling point. The platform provides a wide range of services, such as automated workflows, real-time tracking, and order fulfilment. The business enables smooth integration with well-known e-commerce systems including Shopify, Magento, WooCommerce, and BigCommerce by using APIs.
Shiprocket offers sellers a smooth delivery experience by integrating with a number of online marketplaces and shopping carts.
Shiprocket uses data analytics to give sellers insightful information on their shipping performance and clientele.
Weaknesses
For the actual delivery of items, Shiprocket mostly depends on outside logistics providers (courier firms), which may result in possible service interruptions or problems with quality.
Shiprocket is under constant pressure to maintain low pricing in the very competitive e-commerce logistics business.
After a shipment is turned over to a courier partner, Shiprocket, as a platform, has little control over the delivery procedure.
Opportunities
Shiprocket can look into ways to extend its offerings into new regions, both domestically in India and beyond.
They can launch innovative services like same-day delivery, expedited shipment, or tailored logistics for particular sectors.
Synergistic opportunities may arise from partnerships with other e-commerce enablers, such as marketing platforms or payment gateways.
Threats
The current logistics environment may be upended by new technologies; therefore, Shiprocket will need to innovate and adapt to stay ahead.
Customer data security and privacy must be guaranteed, and any breaches might seriously harm Shiprocket’s brand.
Shiprocket’s growth may be impacted by a possible economic slowdown, particularly given the current conflict scenarios amongst various nations, which could have an effect on consumer purchasing and e-commerce activity.
Conclusion
In general, Shiprocket’s business strategy is predicated on offering SMBs in India economical and effective shipping options. Shiprocket has built a profitable business that supports its clients’ growth and success in the e-commerce industry by utilising its ties with logistics providers and creating an intuitive platform. The corporation should now investigate the possibilities of new markets, especially in Southeast Asia and other developing nations.
Shiprocket is an Indian logistics and supply chain platform that simplifies e-commerce shipping.
Who are the founders of Shiprocket?
Shiprocket was founded in 2017 by Vishesh Khurana, Gautam Kapoor, Saahil Goel, and Akshay Ghulati.
How does Shiprocket make money?
Shiprocket generates revenue through per-shipment charges, subscription plans for businesses, and value-added services like order management tools, tracking solutions, and API integrations.
The way we save, invest, and exchange money is changing as a result of technological advancements in today’s lightning-fast financial industry. The pioneering force behind this transformation is fintech, an abbreviation for financial technology. When it comes to the stock market and online broking, Zerodha is what comes to the mind of an Indian. Zerodha is the most prominent and the leading discount brokerage company, founded in 2010. The company is the first-ever stock brokerage company that gave rise to discount brokerage options for investors as well as traders.
Today, Zerodha is the biggest brokerage company in India with a client count above 5 million. It is also known as the Robinhood of India.
The company contributes over 15% to every retail order volume in India on a daily basis through trading and investing in various stocks, Commodities, F&O, IPOs, and others. In this article, we have briefly discussed the business model and revenue model of Zerodha. Let’s get started!
About Zerodha
Zerodha is an Indian fintech startup that has been shaking up the conventional brokerage sector since its founding in 2010 by brothers Nithin Kamath and Nikhil Kamath. The company’s name represents its objective to remove hurdles and democratize finance. It is a mix of “Zero” and “Rodha,” the Sanskrit words for obstacles.
The largest online brokerage firm in India, Zerodha is widely famous for its discount brokerage option. Zerodha offers financial services with the main motive of providing low-cost services to customers. Zerodha is a significant member of BSE, MCX-SX, and NSE, which provides broking services to the traders of the stock market.
Zerodha is headquartered in Bengaluru and has a huge customer base. Zerodha is the first discount broker in India because of this, it gained huge support from the audience.
An essential part of Zerodha’s success has been its dedication to offering traders and investors products that are affordable, easy to use, and driven by technology. Belief in creating a world without brokers is Zerodha’s motto. The financial market players will benefit greatly from this ideology. In addition to meeting the unique demands of each client, the organization strives to offer cheap trade services and first-rate customer service. Using cutting-edge innovation, innovative ideas, and unparalleled customer service, Zerodha aims to build a world without brokerages.
Besides, the most intriguing thing about Zerodha is that it always comes up with brilliantly innovative ideas supported by several strategic and definite efforts. Zerodha runs with the tagline of “The Free Trade Zone“.
Moreover, Zerodha offers tons of open online education and community programs that uphold retail traders as well as investors.
Fintech platforms like Smallcase, Streak, Sensibull, Quicko
Technology service providers
Regulatory bodies like SEBI
Key Activities
Running trading platforms (Kite, Console)
Brokerage and margin trading operations
Developing fintech tools and APIs
Educating users through Varsity
Value Propositions
Zero brokerage on equity delivery trades
Flat ₹20 fee for intraday and F&O trades
Transparent and simple pricing
User-friendly tech tools and mobile platforms
Free mutual fund investment via Zerodha Coin
Customer Relationships
Self-service platform with online tutorials and support
Transparent reports and statements
Community building via social media and Varsity
Quick issue resolution through online support
Customer Segments
Young salaried professionals (below 30 years)
First-time investors
Active intraday and F&O traders
Tech-savvy developers and fintech enthusiasts
Key Resources
Trading and account management platforms (Kite, Console)
Kite Connect API
Skilled technology and support teams
Regulatory licenses and compliance systems
Channels
Zerodha website and mobile app
Social media platforms like Instagram, Twitter
Referrals and financial influencers
Educational platform Varsity
Cost Structure
Technology development and maintenance
Employee salaries and operations
Compliance and legal costs
Customer acquisition and marketing
Revenue Streams
Brokerage fees on intraday and F&O trades (up to ₹20/order)
Interest income from margin trading
Demat account DP charges
Subscription fees from partner tools (e.g., Streak, Smallcase)
Float income from idle client funds
Annual account maintenance charges (₹300/year)
Where does Zerodha operate?
Zerodha is a financial service company that offers various retail and institutional-based brokerage, bonds, mutual funds, and currency & commodities trades. Zerodha operates in various states of India, including Hyderabad, Bengaluru, and Pune.
Key Products and Services of Zerodha
The broking limited company, Zerodha, offers tons of key products to its customers. These products include Console for account management, Kite for trading platforms, Varsity for financial education, Quicko for the traders in Tax stems, Coin for Free Mutual Fund, Kite Connect API for the developers, Kill Switch for the risk management for retail traders, and Sentinel for the cloud-based market alert tool.
Zerodha majorly targets its potential audience in Pune, Bengaluru, and Hyderabad based on the average age group of people below 30 years. It focuses on those below 30 people who are new to their jobs and have already started saving from their salaries and are searching for better saving and investing methods to increase their money effectively. With its incredible services and products, it has gained over a million active users.
Zerodha Business Model
The most significant thing about the business model of Zerodha is the success and popularity it gained among the audience. Zerodha offers a very convenient service to its customers, because of which it gained absolute success in the strenuous market as well.
Zero Brokerage Model
When it comes to equity delivery deals, Zerodha stands out due to its zero brokerage strategy. This is a great alternative for long-term investors since it allows investors to purchase and hold equities without paying brokerage fees. They make money from many categories, including intraday trading, futures, and options, and others, by collecting a flat fee on each deal.
Transparent Pricing
Another important part of Zerodha’s business model is transparency. Importantly, being a fintech company they offer a straightforward pricing system. To prevent unpleasant unexpected events, traders can determine their trading costs in advance. Customers trust them more because of this openness, and they distinguish themselves from more conventional brokerages that have convoluted pricing structures.
Zerodha USP
The entire business model of Zerodha is very transparent and has no hidden costs later on. It lets you know all your transactions and also provides a quick tutorial on online trading.
It keeps all the information transparent and open to the customers. These facets help the company more vibrantly and gain more significant clients for trading.
The USP of Zerodha is its zero brokerage concept. Traders don’t need to pay to trade stocks if they plan to keep them for longer than a day. There is no brokerage fee; all the trader has to do is pay their taxes. Brokerage fees from intraday and derivatives trading are Zerodha’s main source of revenue. For FNO trading, Zerodha has a fixed brokerage fee of INR 20 per order.
Zerodha is the biggest trading network with the highest number of active users in India. People across India use Zerodha for investing and trading. Zerodha revenue sources include brokerage fees, interest on margin funding, and income from partner platforms and technology services. The company charges only Rs. 20 (or 0.03%) for every F&O and intraday capital trade.
Although its charge is pretty low, as a huge number of transactions take place, the company gains enough profit. Besides the account maintenance, it charges Rs. 300 annually.
From the records of the past few years, Zerodha experienced rapid growth. This results in the 2% contribution of investors in the stock exchange. This, later on, boosts the revenue of the company. With this revenue source, Zerodha raised its valuation worth $1 billion. The valuation of Zerodha is around $3.6 billion (2023).
Along with stock trading, Zerodha also provides a platform called Zerodha Coin where users may invest in mutual funds without paying a commission. Numerous clients seeking an easy method to put their money into mutual funds have taken advantage of this service. The larger movement towards digital wealth management and the use of the term “hire a fintech developer” to describe the process of creating and managing such systems is congruent with this.
Zerodha Financials
Particulars
FY24
FY23
FY22
FY21
Revenue
INR 9,994.5 Cr
INR 6,877.1 Cr
INR 4,964 Cr
INR 2,729.6 Cr
Expenses
INR 3,119.3 Cr
INR 2,992.7 Cr
INR 2,165.1 Cr
INR 1,260.2 Cr
Profit after Tax
INR 1,122 Cr
INR 2,094 Cr
INR 2,907 Cr
INR 4,700 Cr
Revenue Model of Zerodha
Zerodha has shown consistent growth in revenue and profit over the last few years. In FY24, the company saw significant growth in revenue and profit, continuing its upward trajectory from FY23.
Zerodha Revenue Breakdown:
Particulars
FY24
FY23
Revenue from operations
INR 9,372.2 crore
INR 6,832.8 crore
Other income
INR 622.3 crore
INR 44.3 crore
Total revenue
INR 9,994.5 crore
INR 6,877.1 crore
Zerodha’s revenue has consistently increased over the last few years, with a notable spike in FY24. Revenue from operations saw substantial growth, and other income showed a significant rise in FY24 compared to FY23.
Zerodha SWOT Analysis
Swot Analysis of Zerodha
Zerodha Strengths
Zerodha has shaken up India’s traditional brokerage market with its novel approach to trading, providing clients with commission-free trading.
Customers can rely on quick and dependable trading because of Zerodha’s powerful technological infrastructure.
To meet the demands of traders with varying skill sets, the firm has created several trading platforms and tools.
Thanks to its user-centric strategy and great customer service, Zerodha has a high customer satisfaction rating.
To meet the varied investing needs of its clients, Zerodha provides a comprehensive suite of financial products, including stocks, bonds, mutual funds, and derivatives.
Zerodha Weakness
The potential for growth and expansion is limited for Zerodha because its operations are limited to India.
Zerodha is at risk of cyber threats and system breakdowns because its business model is highly reliant on technology.
Brokerage fees and commissions are Zerodha’s only sources of income, which may lead to difficulties for the company down the road.
Zerodha Opportunities
Zerodha has a great chance for growth due to the continuously expanding population of retail investors and traders in India.
Zerodha has a golden opportunity to grow its business by taking advantage of the growing popularity of online shopping in India.
If Zerodha wants to diversify its revenue streams and access new markets, it might look into foreign expansion prospects.
Zerodha Threats
There is a lot of competition for Zerodha’s products and services from both well-established brokerage businesses and emerging startups.
Business operations and profitability at Zerodha are susceptible to changes in regulatory policies and guidelines.
Investor sentiment and trade volumes are influenced by economic uncertainty and market volatility, which in turn affect Zerodha’s revenue sources.
Even after this huge customer base, Zerodha is still working on expanding the company on a broad scale with a more significant client base. Nithin Kamath, the CEO of Zerodha, mentioned in an interview that he is aiming to take the company to a client base of 5-10 million in the upcoming years.
Zerodha believes in promoting its services, as the company hardly spends any money on advertising channels. The company holds a great reputation in the market because of its incredible services and customer interactions. This has resulted in the comprehensive and impeccable growth of the company.
Within the context of the Indian brokerage industry, Zerodha’s commission-free trading business model is characterized by an effective technological infrastructure, a high level of customer satisfaction, and diversified product offerings that offer significant value. These offerings are relatively uncommon and difficult to imitate, and a robust organizational culture supports them. This helps the company maintain its significant competitive advantage.
In the upcoming years, Zerodha is expected to grow even more and expand more promptly. Stay tuned for more updates!
FAQ
What does Zerodha do?
Zerodha Broking Ltd. is an Indian stock broker and financial services company. The company provides institutional and retail brokerage services, as well as currency and commodity trading. Additionally, Zerodha offers investment options in mutual funds and bonds.
Is Zerodha free?
Traders don’t need to pay to trade stocks if they plan to keep them for longer than a day. There is no brokerage fee; all the trader has to do is pay his taxes. For FNO trading, Zerodha has a fixed brokerage fee of INR 20 per order.
What are the strengths of Zerodha?
The strengths of Zerodha include commission-free trading, its technological infrastructure, versatile trading platform, high customer satisfaction, and its comprehensive financial products.
What is Zerodha business model?
Zerodha follows a discount brokerage business model, offering low-cost trading services in stocks, commodities, and currencies. It charges zero brokerage on equity delivery trades and a flat fee of ₹20 per order for intraday and F&O trades. The company earns revenue from brokerage fees, interest on margin funding, and its tech platforms like Kite and Coin. By focusing on technology and low costs, Zerodha has attracted a large base of retail investors.
How Zerodha earns money?
Zerodha earns money through brokerage fees on intraday and F&O trades, charging up to INR 20 per order. It also makes money from interest on margin funding, DP charges when clients sell shares, and subscription fees for premium tools like smallcase and Streak. Additionally, it earns float income from idle client funds.
Myntra has gone a long way from its humble beginnings as an eCommerce platform for personalized gift items to become the premier online fashion retailer in India. Throughout its history, the company has never compromised on providing clients with the highest quality, thanks to its brilliant business methods. Myntra is one of the most prominent names in the fast-growing eCommerce industry, which has its share of innovators and industry standards-setters. Imagine a society where clothing is more than simply a means of transportation; it is a means of self-expression via style and self-assurance. Myntra is more than an online store; it’s a place where style can be expressed. Thanks to its vast selection of brands, styles, and trends, Myntra has revolutionized the way we view and enjoy fashion.
Through this article, we will touch on the business model of Myntra and will find out how it is earning money and churning its yearly profit through its revenue model.
In 2007, Vineet Saxena, Mukesh Bansal, and Ashutosh Lawania established Myntra. The three of them saw a niche in the market for customized presents and set out to fill it. After seeing the potential in the fashion and lifestyle area, Myntra swiftly expanded from its initial platform for personalized gift products. The organization shifted its emphasis in 2011 to establish itself as a premier online destination for fashion products. Myntra, the Bangalore-based company is worth over a million dollars because of its extensive presence across India.
Fashion eCommerce Market in India
Myntra Business Model
As an online marketplace, Myntra facilitates the sale of fashion items by third-party vendors. Revenue for the firm comes mostly from the transaction fees paid by suppliers since it is a marketplace service provider. Logistics, advertising, and consulting are some of its other revenue generators. Products sold by Myntra under its brand are also available for purchase.
Myntra Business Model Canvas
Myntra Business Model Canvas
Key Partners
Fashion and lifestyle brands (e.g., Levi’s, H&M, Biba, Nike, Mango)
Third-party vendors and sellers
Flipkart (parent company)
Logistics and delivery partners
Advertising and promotional partners
Key Activities
Operating the online fashion marketplace (website and mobile app)
Managing seller/vendor onboarding and transactions
Handling logistics, warehousing, and last-mile delivery (e.g., Myntra JIT, M-Direct)
Running ad campaigns and customer acquisition strategies
Developing technology features like AI personalization and AR trial rooms
Value Propositions
Wide range of branded fashion and lifestyle products
Seamless and user-friendly online shopping experience
Fast and reliable delivery options
Exclusive brand collaborations and collections
Personalized recommendations powered by AI
Customer Relationships
App-first user experience with smooth navigation
Customer support and service assistance
Loyalty programs, discounts, and offers
Personalized shopping based on behavior and preferences
Customer Segments
Youth aged 18–34 years
Urban, fashion-conscious online shoppers
Buyers looking for both budget and premium fashion
Customers who prefer convenience and trend-driven options
Key Resources
E-commerce platform (app and website)
Strong logistics and fulfillment network
Partnerships with over 6,000 brands
In-house tech team and customer service
Marketing and sales teams
Channels
Myntra mobile app (primary channel)
Myntra website
Digital marketing (SEO, social media, influencers)
Cost Structure
Logistics and delivery operations
Platform development and maintenance
Employee salaries and vendor payouts
Advertising and promotional costs
Warehousing and tech infrastructure
Revenue Streams
Commissions from sellers
Delivery/logistics income
Advertisement fees from brands
Sales of Myntra-owned private label products
A customer-centric strategy, collaborations with fashion brands and designers, and investments in state-of-the-art eCommerce technology are all parts of Myntra’s business model. These methods have kept customers coming back for more. The product variety of Myntra was enhanced by collaborations with over 6,000 lifestyle and fashion companies, including Levi’s, H&M, Biba, Nike, Mango, Hilfiger, and many more.
Customers looking for both well-known brands and new trends were drawn to this variety. In 2014, Flipkart made a strategic move by acquiring Myntra for over $300 million. This merger brought together two giants of the industry. Myntra was able to tap into a wealth of new resources and experience, thanks to this partnership.
The Myntra company chose to discontinue its website in 2015 and instead run it through its mobile app. But a 10% hit to the economic model was what brought the website back from the dead. The company plans to expand into more markets. One of the leading fashion eCommerce sites in India, Myntra, offers a variety of fulfillment options. Myntra JIT and M-Direct stand out among the others.
According to a report, Myntra generated approximately US$3.9 billion in revenue during the calendar year 2023. The cumulative sales of its primary competitor, Reliance’s Ajio, were estimated to exceed US$2 billion.
Myntra Revenue 2024
Income for Myntra comes from a variety of sources. A greater sum of money is added to the company’s vault through various means, including logistics, advertisements, partnerships, etc.
Here we will discuss some of the company’s major revenue streams that help the firm generate profit.
Logistics:Myntra has established partnerships with numerous organizations to ensure the efficient operation of its logistical chain. Additionally, it imposes a delivery fee on every order. The majority of delivery charges are incurred by the consumer, and Myntra then distributes the remaining balance to the logistical company after deducting its commission. The logistical services it offered brought in INR 19,915 million in 2023.
Marketplace Services: As previously mentioned, Myntra is one of the largest fashion marketplaces in the country. The company offers a vast selection of fashion products to its consumers through both its website and app. This fashion site is the most frequently visited and charges commissions from the seller and the customer. The commissions are dependent upon the ticket size of the order and the specific product. In 2023, Myntra generated a gross revenue of INR 17,812 million through marketplace services.
Advertisement:Myntra has become a prominent and preferable location for branding and promotion due to its increasing popularity, which has expanded to the next horizon. Myntra charges advertisement fees to brands to showcase their products on the company’s website and app. In 2023, Myntra generated a total revenue of INR 5,353 million through this approach.
Myntra Revenue Breakdown | How Does Myntra Make Money
USP of Myntra
Strategic acquisitions and technology advancements have shaped Myntra’s growth trajectory to become a fashion destination. Enhancing the user experience, Myntra has also ventured into AI customization. Despite Flipkart’s 2014 $250 million acquisition, Myntra continues to function autonomously.
Young, tech-savvy people looking for colorful, on-trend clothing at affordable prices make up the bulk of its target demographic, which ranges in age from 18 to 34. From a psychological perspective, their target demographic places a premium on current trends and the ease of internet shopping.
Due to the extreme nature of Myntra’s business strategy, the company has been able to influence the fashion trend through the use of a variety of marketing methods. Myntra’s business model has seen amazing development, which has resulted in the establishment of a prominent and actively developing eCommerce sector.
FAQs
What is Myntra?
Myntra is one of the largest fashion eCommerce stores in India that deals with a wide range of fashion and lifestyle products for men, women, and kids.
What are the revenue streams through which Myntra earns money?
The main revenue streams through which Myntra earns money are logistics, advertisements, and marketplace services.
How does Myntra work?
Myntra works as an online fashion marketplace where third-party sellers list products, and customers buy them through Myntra’s website or app. Myntra handles marketing, logistics, and customer service while earning through commissions, ads, and delivery charges.
What are the strengths of Myntra?
Myntra offers a diverse product inventory with more than 5,000 brands to choose from. The company’s efficient supply network enables it to reach more than 90,000 locations nationwide. Reliable tech and user interfaces, such as visual search and virtual trial rooms powered by augmented reality. Features such as visual search and virtual trial rooms powered by digital reality provide a solid user experience.
What is business model in Myntra?
Myntra follows a marketplace business model where it connects fashion and lifestyle brands with customers through its online platform. It earns revenue mainly through commissions from sellers, logistics fees, and advertisements. Myntra also sells private label products and uses technology to enhance customer experience, making it a leading fashion e-commerce platform in India.
What is Myntra business model for seller?
Myntra’s business model for sellers is marketplace-based. Sellers can register on Myntra’s platform to list and sell their fashion and lifestyle products. Myntra provides access to a large customer base, handles order logistics, payments, and customer support. In return, sellers pay a commission on each sale, which varies by product category and pricing. This model helps sellers scale quickly while Myntra earns revenue through commissions, ads, and value-added services.
Is Myntra profitable?
Yes, Myntra generated a profit of INR 31 crore in FY24.
Chayanika Goswami
