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Tag: Revenue model

  • Rapido Business Model | How Does Rapido Earn Money?

    The rising traffic in most of the cities these days has become an unavoidable problem. Getting stuck in traffic in today’s metropolitan cities is one of the inescapable situations.

    More often, there comes a time when you have to reach a destination, but there is no way for you to do so. In such times, you are frustrated and worried while thinking of some miracle to happen. But thanks to new-age technological advancements and innovative minds, we have companies like Rapido to rescue us in these kinds of situations.

    You will just have to install the app, and you will be able to travel anywhere within the city. Rapido joined the Unicorn Club on 29 July 2024 with a $120 million investment from WestBridge Capital at a valuation of over $1 billion.

    Here’s a look at the business model of Rapido and how it makes money.

    About Rapido
    Rapido Business Model
    How Does Rapido Make Money | Rapido Revenue Model
    Rapido USP
    Rapido SWOT Analysis

    About Rapido

    Rapido is an Indian bike taxi and logistics service provider headquartered in Bangalore, Karnataka. Formerly known as the theKarrier, the company was founded in 2015 by two IIT alumni and PESU alumni – Aravind Sanka, Pavan Guntupalli, and Rishikesh SR.

    Rapido Founders - Pavan Guntupalli, Rishikesh SR, Aravind Sanka
    Rapido Founders – Pavan Guntupalli, Rishikesh SR, Aravind Sanka

    Hero MotoCorp Chairman Pawan Munjal and former Google India Vice President Rajan Anandan are people who have stakes in Rapido. The company operates in almost 100+ cities and had 20 million+ customers in FY23.

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    Explore how Aravind Sanka, Rapido’s co-founder, is transforming urban mobility in India with innovative solutions for transportation. Read more about Aravind Sanka’s education, career, investments, net worth, and more.
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    Areas of Operation

    Due to the increasing demand for Rapido, they have expanded their operations almost all over India. Some of the cities where Rapido operates are Coimbatore, Jalandhar, Patiala, Tirupati, Trichy, Kolkata, Udaipur, Amritsar, Bhubaneswar, Rohtak, Vishakapatnam, Sagar, Hyderabad, Gwalior, and many more.

    Key Products and Services

    Rapido is a bike taxi service provider, but along with that, they also have auto-rickshaw and third-party logistics services.

    It was in 2020, after the COVID-19 outbreak, that the company decided to expand its logistics that offer hyperlocal delivery for local businesses and eCommerce companies.

    Following that year, Rapido decided to expand its Auto services in 11 additional Indian cities in the states of Rajasthan, Gujarat, Uttar Pradesh, Punjab, and Andhra Pradesh, to name a few.

    Rapido Auto
    Rapido Auto

    Rapido also offers a service called Rapido Corporate. It is an employee travel management for organizations. In this service, organizations need to partner up with them if they want to offer travel services to their employees.

    Target Audience of Rapido

    Rapido’s target audience is mainly commuters who travel in their day-to-day lives. Its main goal is to offer services to commuters who prefer open and safe commute options in comparison to over-expensive cab rides.

    Rapido Success Story | Valuation | Funding | Unicorn | Business Model | Founders
    Rapido has entered the unicorn club by receiving $120 million in funding from Westbridge Capital in July 2024. Check out the full story here! Know more about it on Rapido Wiki.
    StartupTalkyPurbalee Dutta

    Rapido Business Model

    As per the latest reports in February 2025, Rapido has shifted to a SaaS model, removing daily commissions for drivers, says Co-founder Aravind Sanka. Drivers now pay a subscription fee upfront and keep 100% of their fares. The platform serves two million drivers monthly, focusing on value for both riders and customers.

    Before this, the business model of Rapido was mainly B2C (Business-to-customer model). This means that they offer their services directly to their customers as a business entity.

    In addition to this, they have also leveraged vehicle storage options to provide carriage services. Moreover, the end receivers of their product and services are customers like us.

    Their B2C model allows consumers to book a bike ride through their app. Customers need to download the Rapido app, create a profile, and set pick-up and drop-off locations.

    Upon successful booking, a driver known as the ‘Captain’ will be assigned with their details like name, photo, and other details. This gives assurance to customers regarding the driver with whom they are going to commute. Users can make payments either with cash or using a digital payment method.

    For Captains, Rapido allows anyone with two-wheelers to register as Captains. They are free to choose whatever vehicle they want, like motorcycles, scooters, or e-bikes, but it cannot be older than 2010. They also need to have a phone with a 3G/4G mobile data connection.

    Rapido encourages people between the ages of 18 and 50 to be Captains. Presently, the company is looking for more female captains to join their community.

    How Does Rapido Make Money | Rapido Revenue Model

    Rapido makes money through its bike and rental services. Rapido’s revenue model is mainly of two categories:

    The Commission-based

    Commission-basis means the company generates money by acting as an intermediary between the ‘Captains’ and the customer. They charge a fee of 20% of the entire fare.

    The B2C commission-based

    The other method through which Rapido earns money is through its B2C logistics services, Rapido Store. This is a major source of revenue as the company focuses on delivering the goods of logistics companies to their preferred location.

    Advertising and Partnerships

    Rapido works with businesses to show ads on their platform. They may promote local shops or display targeted ads for their users. They earn money through ad fees or paid promotions.

    Delivery Services

    Rapido doesn’t just offer rides but also delivers packages. Users can send parcels or documents through the Rapido app within the city. Rapido earns money by charging delivery fees.

    Rapido Financials

    Rapido Financials FY23 FY24
    Operating Revenue INR 443 crore INR 648 crore
    Total Expenses INR 1172 crore INR 1066 crore
    Profit/Loss INR -675 crore INR -371 crore

    Rapido has grown 4.4 times over the past two years, with revenue rising from INR 145 crore in FY22 to INR 648 crore in FY24. The ride-hailing company also reduced its losses by 45% in FY24, helped by better cost management. In 2024, the operating revenue of Rapido increased by 46.3% to INR 648 crore from INR 443 crore in 2023. The company’s total expenses decreased by 9%, dropping to INR 1,066 crore from INR 1,172 crore. The company reported a loss of INR 371 crore in 2024 compared to INR 675 crore in 2023.

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    Rapido USP

    The Unique Selling Proposition (USP) for Rapido precisely gives it an edge over other forms of ride-hailing. It addresses some of the most critical needs of a typical urban commuter in India. In fact, unlike all the other different models, which are focused on levying high commissions, Rapido has gone to the subscription mode, providing rides at comfortable prices, especially for regular commuters and those living in smaller cities. This mode of transportation, which is speed and convenience-oriented, offers an easy and short bike taxi ride, which will save travel time by 50% in congested areas. Economically competing with taxi fares, Rapido is an alternative.

    For safety, this platform boasts “Captains” who have undergone a rigorous vetting process, and the rides can also be tracked through GPS. The app ensures smooth riding experiences through real-time tracking, cashless payments, and customer service. Now, Rapido has also gone beyond bike taxis to include auto-rickshaws, cabs, and delivery services in its portfolio, strengthening its outreach and boosting user engagement. All put together, it’s a game changer in the ride-hailing landscape of India for affordability, speed, and reliability.

    • One of the most important things to look at in Rapido’s services is its affordability. For daily commuters, Rapido seems to be the perfect mode of transport. At any time, either day or night, a traveler’s trip is less expensive than most cab rides.
    • They provide helmets for safety.
    • The app has easy accessibility because it is available in five major languages.
    • There is also a speed-tracking feature that lets the Captains know their speed.
    • Rapido’s business model offers insurance for both parties – the driver and the rider.

    Rapido SWOT Analysis

    Rapido SWOT Analysis
    Rapido SWOT Analysis

    Rapido Strengths

    • Dominance in the Market: Rapido’s former trust is reliant on its consumer consideration over its 65 percent market share in India’s bike-taxi industry.
    • Economical Services: Easy, affordable rides make an attractive option for budget-off commuters. Its pricing strategy fills a gap between traditional taxi riding and new-age app-based ride-hailing services, catering to a very large customer base.
    • Simple and Convenient: The company’s app is an apt source for booking rides easily and quickly, bringing the customer satisfaction clause into operation effect for the company.
    • Rapid Expansion: This company operates in about 100 cities and thus has successfully tapped into new markets and continues expanding.
    • Driver-focused Model: The platform provides a fixed payment fee structure to a driver rather than payment based on commission per ride, thus cultivating more trust and satisfaction among its driver partners.

    Rapido Weaknesses

    • Perception Problems: Some would-be users may consider bike rides to be unsafe and so deter their usage. Some features for assuring safety have been put in place, but it is still very difficult to alter the perceptions of consumers.
    • Limited Service Diversification: Rapido has started diversifying into food and courier deliveries and can begin to move away from its emphasis on bike-taxi services; however, it could limit the potential to attract a wider customer segment compared to competitors offering various modes of transport.
    • Inconsistent Operations: Users experience non-uniformity of service even after developing all the backend technology, which hinders the overall trust in the service.

    Rapido Opportunities

    • Unexploited Potential in the Market: Further market penetration across India opens good potential for Rapido to scale its customer base and market share.
    • Diversification into New Services: More channels, such as car-hailing or food delivery, can be innovated to attract additional customers and improve their stake in the competition.
    • EV Adoption: Adaptation to EVs may fall within the spectrometer of developing eco-friendly environment concerns and the government’s pro-poor approaches.

    Rapido Threats

    • Intense Competition: Well-established competitors like Ola and Uber as well as newer emerging regional players, pose a challenge to Rapido’s market share as well as its pricing strategies. These competitors could also create pressure on profitability and growth.
    • Regulatory Challenges: The ongoing regulatory tussles concerning ride-hailing in India, coupled with possible changes in government policies, could impact Rapido’s operations and compliance costs.
    • Economic Factors: Any economic downturn or shift in consumer spending behavior could substantially impact demand for ride-hailing services, especially in the price-sensitive segment.

    Conclusion

    It is quite clear by looking at the business model of Rapido, that customers and drivers both benefit greatly. By always making constant app updates and improving the system, they wish to make their app user-friendly for every walk of life. They are soon going to launch special and simplified features for visually challenged people.

    Since its inception in 2015, Rapido has come a long way and joined the unicorn club on 29 July 2024. Day and night they are striving hard to be the solution for India’s intra-city commuting problems. Rapido’s bike services are a boon for anyone who wishes to reach their destination in a jiffy.

    FAQs

    How does Rapido make money or what is Rapido revenue model?

    Rapido earns money by charging a fee of 20% of the entire fare. The company also earns from its logistics services. Visit their website to learn about the Rapido fares chart.

    Who are the founders of Rapido?

    Aravind Sanka, Pavan Guntupalli, and Rishikesh SR founded Rapido in 2015.

    What is Rapido business model?

    The business model of Rapido is mainly a B2C, business-to-customer model. This means that they offer their services directly to their customers as a business entity themselves.

    How to start Rapido business?

    To start a Rapido business:

    1. As a Rider – Register on the Rapido Captain app, upload documents, get approval, and start rides.
    2. Rapido Franchise – Contact Rapido, check requirements, sign an agreement, and earn commissions.

    What was Rapido turnover 2024?

    The operating revenue of Rapido increased by 46.3% to INR 648 crore from INR 443 crore in 2023.

    How does Rapido work?

    Rapido connects users with bike and auto riders for quick rides. Customers book via the app, riders accept, pick them up, and drop them at their location. Rapido earns through ride fees.

    What is Rapido net worth in rupees?

    As of October 2024, Rapido’s net worth was valued at Rs 6,800 crore.

    What is Rapido walk feature?

    Rapido doesn’t have a walk feature, but it offers bike, auto, and cab ride options. 

    What is Rapido owner name?

    Aravind Sanka, Pavan Guntupalli, and Rishikesh SR are the founders of Rapido and the parent organization of Rapido is Roppen Transportation Services.

    How to earn money from Rapido?

    To earn from Rapido, become a “Rapido Captain” by registering on the app and using your bike for rides. You earn money from fares, plus bonuses and incentives based on your performance.

  • The Titan Company Business Model | How Does Titan Make Money

    Titan is one of the most popular watch manufacturers in India with a revenue of 21,204 crore rupees as of 2020. This public company was established in 1984 and has expanded to be the fifth-largest watch manufacturer in the whole world and also the largest branded jewelry maker in India. More than 80% of its revenue comes from the latter.

    The firm is a part of the Tata group and started its journey in a joint venture with TIDCO. The one thing that we should appreciate about Titan is its diverse revenue streams and the immense trust that its customers have in them. The firm changed its name from Titan Co to Titan Industries Ltd in 1993. This article will explore the business model of Titan.

    Titan Business Model

    Titan’s business pattern comprises a set of diversifications and a customer-first approach towards establishment across several consumer segments. Previously, the company was well known for quartz watches but has transformed itself into a premium and smart-watches company, while the jewelry vertical which is symbolized by Tanishq fetches approximately 82% of the total revenues. The company is further strengthened by Tanishq’s reputation for transparent pricing and high-quality gold and diamond jewelry. 

    The company has again opened up through eyewear products known to many customers with the Titan Eye+, and later to fragrances and fashion accessories further strengthening the company’s diversity. Titan has already established exclusive retail networks in over 1,300 stores across India. Titan thus captures all the market routes – physical, digital, and even e-commerce avenues – bringing services that offer customers better access and engagement with these availabilities. Strong brand trust, high pricing, and value-added services such as after-sales support and customization create durable relationships with customers.

    Many advantages should remain with Titan in case it goes commercial because one drawback is the dependency on the Indian market, which limits its global reach, and the next is the fierce competition from domestic and foreign players in the jewelry and watch segments. On the other hand, the increase in disposable incomes gives a growth opportunity; further avenues of creating international reach with certain strategic alliances with global brands open up. 

    Key Activities of Titan

    Titan is known for its quality manufacturing and sales. In 1984 it started manufacturing quartz analog watches and further diversified into various other products.

    Today they manufacture watches, eyewear, perfumes, and jewelry. Their branches also cater to the requirements of people of all age groups. They provide the best experience to their customers.

    Monetising Heritage

    The biggest factor that multiplies the sales of Titan Company Limited today is the sense of the superior quality of craftsmanship associated with the firm. Their product quality is admired by most of the users. One of the main reasons for this is their people-centric vision of creating and elevating experience that impacts the world.

    Their mission has always been to create a value-driven culture that nourishes innovation, performance, and the highest global standards in everything they do. Throughout their businesses, how they pitch themselves ensures that customers take precedence over anything else.

    There is absolutely no doubt about the fact that it is in fact the people who made Titan the brand that it is today. They have reached a position at which they are capable of monetizing the heritage that they have proudly inherited through years of delivering quality products.

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    Channels of Titan

    There are multiple platforms through which Titan makes its products available to the people. On the other hand, they have many exclusive outlets in the name of Titan across most of the cities in India. There are outlets in other countries too.

    Some of these outlets sell all the products by the Titan group while most of them are exclusive showrooms that sell particular products like watches, eyewear, jewellery et cetera.

    They also have exclusive online websites through which the customers can directly place orders and get them delivered to their doorsteps. Apart from that Titan has also partnered with most of the key platforms through which they make their products available.

    Titan Website
    Titan Website

    In fact, Titan has done and is continuing to do everything possible to make their products accessible and affordable to all sections of society.

    Customer Relationship

    Customers are one of the biggest assets of the company. Hence they have enabled various options to give the best experience to the customers. As a part of this, they have devised a customer support service that can be reached at 18002660123. The customers can also raise their concerns by writing to customercare@titan.co.in.

    Alternatively, the customers can also directly reach out to the offline customer care centers or showrooms with the product and its receipt.

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    How Titan Makes Money | Revenue Model of Titan

    The diverse product range is the revenue driver for Titan, with jewelry being a significant portion of its earnings. The jewelry division, which accounts for nearly 89.1% of earnings, has come under the banner of Tanishq, which reported revenues of around INR 10,696 crore (approximately $1.3 billion) according to the latest financials. The watches and wearables segment, on the other hand, reports 7.6% of total revenues at roughly INR 913 crore due to increased demand for both smartwatch and traditional watch acquisition. Titan Eye+ eyecare contributes 1.7% and generates INR 203 crore. Additional revenue streams from other business activities bring another 1.7% to the overall revenues, amounting to INR 199 crore.

    Titan’s success in revenue is backed by several strategic advantages. The Tanishq brand is widely perceived as a marker of quality and trust and thereby also earns decent customer loyalty, as well as high sales volumes. Furthermore, its diverse segments in jewelry, watches, and eyewear mitigate the risk of market fluctuations in any one category. Titan has a deep and extensive retail network that ensures accessibility and presence towards driving sales. These vary from jewelry, but Titan enjoys income from the other segments as well, thus supporting itself through a very good brand reputation and extensive retail reach to ensure a foothold growth across several markets.

    As far as the watch manufacturing is concerned they have multiple sub-branches that are titled FastTrack Helios, Xylys, Titan Raga et cetera. It might be a surprise that despite the watches being the most popular product of the company, it only contributes a small amount.

    They are the primary growth drivers of the firm. It can be rightly concluded that all Titan is known for their watches it is their business that happens in Tanishq that drives the business forward.

    Titan Company Limited Financials

    Fiscal Year Operating Revenue Total Expenses Profit-Loss
    FY22 INR 27,210 crore INR 25,037 crore INR 2,173 crore
    FY23 INR 38,270 crore INR 38,270 crore —
    FY24 INR 47,600 crore INR 44,298 crore INR 2,816 crore
    Titan Company Limited Financials
    Titan Company Limited Financials

    Titan – Unique Selling Proposition

    Titan Company has forged a unique lifestyle proposition that is all about quality, craftsmanship, and innovation in watches and jewels. With an ever-expanding range of immaculate materials and avant-garde designs, luxury and budget access market segments of watches, ornaments, and eyeglasses for the company. The technological advancements that bolster its competitive edge include Titan Edge, which is ultra-slim.

    Backed by the Tata Group, Titan enjoys unquestionable consumer loyalty. The brand emphasizes experiential retailing where an engaging shopping experience is created and has a strong commitment to sustainability and corporate responsibility. Accessibility across price points and its reputation of being reliable make Titan’s value proposition about extraordinary customer experiences that set the standards and instill trust, thereby making Titan a leader in India’s lifestyle market.

    Businesses by Titan – Iconic Brands of Titan

    • Titan
    • FastTrack
    • Zoop
    • Sonata
    • Titan eye plus
    • Mia
    • Titan clock
    • Taneira
    • CaratLane
    • Titan Raga
    • Skinn
    • Zoya
    • SF
    • Tanishq
    • Helios
    • Octane
    • Xylys
    • Nebula
    • Fabre-Leuva

    Titan SWOT Analysis

    Titan SWOT Analysis
    Titan SWOT Analysis

    Titan Strengths

    • Brand Equity: Titan enjoys a whopping brand equity due to its commitment to quality and innovative designs that have earned a loyal clientele.
    • Product Diversification: It has been manufacturing a variety of products-from clocks and watches to jewelry with the Tanishq brand, eyewear, and perfumes. Market fluctuations are, therefore, not a major threat to this diversification.
    • Widespread Distribution Network: Titan has a good network of retail outlets, including exclusive showrooms like ‘World of Titan’, giving it a presence in various segments of the market.
    • Creativity and Design Excellence: Due to uniquely designed and technologically superior products, like smartwatches and high-end jewelry, Titan has been the most favored name in a sea of competitors.

    Titan Weaknesses

    • Heavy Dependence on the Indian Market: A significant share of Titan’s revenue comes from India, exposing it to economic downturns in that country. Although efforts are being made to expand abroad, the international footprint still remains limited.
    • Vulnerability to Gold Price Fluctuations: The jewelry segment’s heavy reliance on gold exposes Titan to developments affecting fluctuations in gold prices, which can impact profit margins and consumer demand.
    • Counterfeit Risks: The uniqueness of the designs of Titan products increases their counterfeiting potential, capable of undermining the brand’s value and sales.

    Titan Opportunities

    • International Market Expansion: Titan can invest in expanding territories abroad in adopting markets, such as countries with hefty Indian diaspora or love for Indian craftsmanship. This could be useful primarily for the Tanishq brand.
    • Innovation in E-commerce: Titan must therefore harness eCommerce capabilities to propel itself further into the prospects of online shopping.
    • Premiumization: With increasing disposable incomes expected from Vise economies and India, consumption demand for luxury items has increased. Titan now has the opportunity to thrift on the opportunity by manufacturing premium jewelry and watches.
    • Sustainability Commitments: Titan will carry on with sustainable sourcing practices, along with ethical methods, particularly in terms of its jewelry, so that the company can attract customers who want to consume more socially and improve its position.

    Titan Threats

    • Economic Recession: Some unfavorable economic conditions would lead to less consumer spending, and it would consequently create an adverse impact on sales from all other segments.
    • Stringent Competition: It is being burdened by tough competition with international luxury brands like Rolex and Swatch as well as domestic brands like Kalyan Jewellers which may be exerting pressure on their market share and pricing strategy.
    • Changing Consumer Preferences: Sales are also susceptible to changes in the tastes and preferences of consumers, particularly those with regard to watches and jewelry which are fashion-sensitive.
    • Regulatory Challenges: The implication of operating in a highly regulated industry is that changes in taxation or import/export-related government policies would unfavorably affect their operations.

    Conclusion

    From the looks of the business model of Titan, they will likely continue to thrive in the years to come. They have a knack for expanding their businesses to newer areas while retaining the quality of whatever was existing.

    The very fact that Titan watches are the most preferred and popular among middle-class people in India is a testament to it. Heritage is something that we inculcate through commitment and passion. This is one thing that one should learn from the functioning of the Titan group.

    FAQs

    Is Titan an Indian brand?

    Yes, Titan is an Indian brand that mainly manufactures fashion accessories such as watches, jewelry, and eyewear.

    Does Titan own Tanishq?

    Yes, Tanishq is an Indian jewelry brand and a division of Titan Company.

    How was Titan Company formed?

    Titan was formed between the joint venture of Tata Group & Tamil Nadu Industrial Corporation in 1984.

    What are Titan Company products?

    Titan Company offers watches (Titan, Fastrack, Sonata, Raga), jewelry (Tanishq, Mia, Zoya, CaratLane), eyewear (Titan Eye+), perfumes (Skinn by Titan), sarees (Taneira), accessories (belts, wallets, bags), and smart tech (smartwatches, fitness bands).

    Who owns Titan?

    Titan Company is owned by Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO). Tata Group, through Tata Sons, is the majority shareholder.

    Is Titan a Tata product?

    Yes, Titan is a Tata Group brand. Titan Company is a joint venture between Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO).

  • How IPL Teams Earn Money

    The latest edition of the Indian Premier League (IPL) is here now in 2025, and naturally, we are in the midst of the cricket frenzy with players set in action, the religious fans of the game all thrilled and waiting for their favorite matches, and the franchise owners and other businessmen anticipating great returns out of it. The Twenty20 Cricket League allows the best cricket players around the world and gives them a chance to showcase their talent. The key business plan of the IPL is to invite private companies to buy cricket franchises.

    The franchises are sold at huge prices, so the corporates are largely attracted to invest in various other major components of IPL. Regarding the Indian Premier League auctions, teams spend crores of rupees just to get the desired players. With the kind of money involved in the league, it is hard to ignore the financial aspects of the game. In terms of the valuation, the IPL business value was calculated to be $16.4 billion as of 2024 and the stand-alone IPL brand value stands at $3.4 billion as of 2024.

    According to BCCI, the 2023 IPL season contributed $11.2 billion to the GDP of the Indian Economy. The viewership of IPL 2024 reached the 620 million viewer mark and was watched by more than 350 billion minutes, which is much higher than the total watch time of IPL 2020. Therefore, IPL is as much about business as it is about cricket, glitz, and showbiz. Here are the right prominent ways to answer how IPL franchise earn money.

    How IPL Teams Make Money
    Impact of IPL on Indian Economy

    1. Media Rights
    2. Ticket Sales/Gate Revenue
    3. Merchandising
    4. Selling stake
    5. Sponsorship
    6. Prize Money
    7. Brand Value
    8. Unlisted Shares
    9. Investments in IPL
    10. OTT Platforms
    11. Franchise Rights

    1. Media Rights

    The official media sponsor of the IPL for the last decade was Sony India, and then Dream 11. The current title sponsor of IPL is TATA Group. Disney+Hotstar is declared as the official broadcaster of IPL 2022, which has further onboarded new sponsors, Zomato, Pristyn Care, Ather Energy, Parle Agro, Livspace, Niyo, Spotify, L’Oreal, Spinny, ahead of the cricketing extravaganza.

    IPL is known for its revenue distribution model. The BCCI gets a substantial amount from broadcasters and online streamers. Based on IPL franchises to earn money, and IPL team ranking, this amount is distributed among all IPL teams after deducting their fees.

    Media rights are another way how franchises earn money in IPL. They are the IPL brand’s biggest financial contributors. Star India reportedly broke the bank in 2023 to buy IPL broadcasting rights for a massive INR 23,575 crores. Each match of the IPL reportedly helps BCCI make INR 60.18 crores, while the latest bid in the BCCI media rights auction stands at INR 23,758 crores, which amounts to INR 59.10 crores per match.

    The broadcasters can afford such exorbitant prices because of the advertising and viewership revenues. At the end of the league, the higher-ranking team gets the larger share of media revenue. Media rights account for 60 to 70% of the total earnings of the IPL team, through which IPL team members earn money. Besides that, the IPL franchises also make money by broadcasting special shows such as KKR’s Knight Club.

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    2. Ticket Sales/Gate Revenue

    The revenue generated from the sale of tickets for matches forms another major source of income for the owners of IPL teams. Each franchise is entitled to a minimum of 7 home matches, which gives them a fair opportunity to generate money. The ticket revenue share in the IPL team revenue is around 10%. The home team gets a fixed share of the total ticket sales, and all IPL team owners earn money by selling tickets.

    The franchises then have complete rights to the income from gate tickets and passes. Like any other major sports event, the IPL teams depend largely on their fans for revenue. It is one of the most watched leagues worldwide, with full houses on most occasions. This is one of the few mediums of income where fans and franchises are directly involved in the financial transaction and through which IPL team earn money.

    IPL Advertisement

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    3. Merchandising

    How Do IPL Teams Make Money - Merchandising
    How do IPL Teams Make Money – Merchandising

    The revenue received from sales of official IPL merchandise also forms a significant part of income for IPL teams. The IPL merchandise includes official jersey replicas, sports souvenirs, and sports equipment, among other things. Merchandising is a huge opportunity for IPL and the franchisees to monetize their brand, and IPL has started replicating the global sporting events.

    This trend is expected to change, with more IPL franchises now moving towards elevated merchandise promotion. The game merchandise market in India is growing at an annual rate of 100 percent. This market is about 30 million dollars. Every franchisee sells its merchandise; this includes T-shirts, caps, bats, wristwatches, and other items. Therefore, merchandising is a significant source for IPL franchise to earn money.

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    4. Selling Stake

    The IPL franchises can make big gains by selling stakes at the right time. For example, Delhi Capitals, formerly the Delhi Daredevils case. Jindal Steel Works brought a 50% stake in the IPL franchise for a hefty price of INR 550 crore from GMR. The group has expressed its desire to increase its share in the franchise from 50 to 100%.

    So, within a decade, GMR almost doubled its investment in the franchise. Recently, there were intense rumors that the owners of Rajasthan Royals wanted to go by the same route and sell 50% of their stakes in the franchise. Although such big deals don’t happen deals every day, selling stakes is surely one of the major routes to making money for IPL franchises. This is one of the prominent ways through which the IPL team owner make money.

    5. Sponsorship

    How Do IPL Teams Make Money - Sponsorship
    IPL Sponsorships – How IPL Franchises Make Money

    Everything within the stadium has a price tag, from players batting to the bails on the stamps. The sponsors are the real source of income in the Indian Premium League. All the teams of IPL have sponsors for everything: the main sponsor, a jersey sponsor, and even a sleeve sponsor, which hugely contributes to the overall income. The teams tie up with organizations to promote brands in return for an exorbitant amount.

    The promotion is done in two forms: through print media and through advertorials. The player’s jerseys are a valuable marketing tool. This is why an IPL outfit has an average of 10 brand logos: 6 on the jerseys, 2 on the pants, and another couple on the cap. Moreover, the franchises also create ad content to promote the brands’ products.

    While the brands that cannot make on the jerseys are still promoted through the teams’ social media handles and package design, for example, CSK has tied up with at least 18 brands, with Etihad Airways being the title sponsor.

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    6. Prize Money

    Prize money is obviously one of the franchise’s main income sources. The tournament’s winning team gets the largest share of the prize money, which goes to the team owners and the players. In 2023, the winners got INR 20 crores, the runner-up got INR 13 crores, the third place in the playoffs was INR 7 crores, while the fourth place in the playoffs got INR 6.5 crores.

    7. Brand Value

    How do owners of ipl teams make money
    Most Valuable IPL Teams in 2023

    Brand value adds a lot to the team. If you have star players like Virat Kohli and MS Dhoni or even Rohit Sharma in your team, you have a better chance of attracting brands and investors. Winning IPL or even making it to the Playoffs helps IPL franchises to boost their brand values. This, in turn, helps in easily getting brands on board – at prices that the owners demand. Note that MI, CSK, and KKR, all of whom have won IPL more than once, are at the top of the brand value.

    So, the clout that teams like CSK and MI enjoy during negotiations with brands may not necessarily be experienced by DC and KXIP. However, it is important to know that Brand Value is not only affected by a team’s past performances. Bollywood stars like Shah Rukh Khan and Preity Zinta also add a lot to that aspect, along with business leaders like Keshav Bansal and Neeta Ambani.

    8. Unlisted Shares

    It is worth noting that while it is a new phenomenon for Indian sports franchises, numerous European football franchises have been offering their pre-IPO stocks in cricket fans’ lives for a while now. In India, Chennai Super Kings is among the select few sports franchises whose unlisted shares can be traded. These franchises have been able to generate a considerable amount of capital through their pre-IPO stocks, which has proven to be a valuable source of funding for them.

    9. Investments in IPL

    Saudi Arabia shared plans to invest up to $5 billion in the IPL in 2023. The league is also attracting a lot of interest from American investors who are putting big money into it, making the IPL one of the most profitable sports ventures. According to the Financial Times, US companies like Silver Lake Partners, KKR & Co., and TPG Capital have invested over $3.2 billion in the IPL.

    US investors are drawn to the IPL because of its huge popularity and its potential to grow even more. The IPL isn’t just a well-loved sporting event; it also has a big impact on India’s economy.

    10. OTT Platforms

    Viacom18, the company that owns Jio Cinemas, won the OTT rights for IPL from 2023 to 2027. They bid INR 23,758 crore just for the digital streaming rights! Altogether, the total revenue from IPL media rights for 2023-2027 came to around INR 48,390 crore. This includes INR 23,575 crore for TV rights and INR 23,758 crore for digital rights. This is more than twice the amount earned in the previous period!

    11. Franchise Rights

    IPL teams earn from franchise rights by getting a share of the central revenue pool, signing local sponsorships, and selling team merchandise like jerseys and caps. Some teams organize international matches, invest in cricket academies, and monetize digital content through ads and brand collaborations. This helps them earn even outside the IPL season.

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    Conclusion

    Indian Premier League(IPL) is a money-making business and festival for cricket fans worldwide. Cricket fans around the world travel across seven countries and seven continents to watch IPL in India. All credit goes to the cricket league as it has created a bigger impact on cricket fans’ lives. It’s a money-making league where the money is generated from all sources. The money is generated from advertisements, sponsors, stadium tickets, merchandise, TV, and media.

    FAQs

    What is the brand value of IPL 2024?

    The IPL business value was calculated to be $16.4 billion as of 2024 and the stand-alone IPL brand value stands at $3.4 billion as of 2024.

    How IPL team owners earn money?

    IPL team owners earn money primarily through sponsorships, broadcasting rights, ticket sales, merchandise, and team merchandise. They also generate revenue from franchise fees paid by team owners and endorsements.

    What is IPL merchandise?

    The IPL merchandise includes IPL and team t-shirts, key rings, jerseys, polo t-shirts, mobile covers, chargers, caps, joggers, coasters, wristbands and more.

    What is the IPL business model?

    The IPL business model revolves around acquiring players and teams, advertising, merchandising, sponsorship, fantasy gaming, and more. The IPL business model’s core is inviting private firms and businesses to own franchises.

    Which is the oldest IPL team?

    MS Dhoni-led Chennai Super Kings (CSK) had the oldest players in their team, while Rajasthan Royals (RR) had the youngest team playing in the IPL 2021 according to the average age of the players in the squad.

    Which is the No.1 successful team in IPL?

    MI and CSK are the most successful teams in the league’s history, with 5 IPL titles.

    What is IPL team owner income per match?

    IPL teams can earn between INR 3–5 crores per match from ticket sales. The home team receives 80% of the ticket sales, while the state cricket board receives the remaining 20%.

    How much IPL winning team owners make money?

    The IPL offers the highest prize money: INR 20 crore for the winning team and INR 12.5 crore for the runner-up.

    How IPL teams earn money?

    IPL teams earn money in the following ways:

    1. Media Rights
    2. Ticket Sales/Gate Revenue
    3. Merchandising
    4. Selling stake
    5. Sponsorship
    6. Prize Money
    7. Brand Value
    8. Unlisted Shares
    9. Investments in IPL
    10. OTT Platforms
    11. Franchise Rights

    How do IPL franchises make money?

    IPL franchises make money through multiple streams, including broadcast revenue from media rights, sponsorships from brand partnerships, and ticket sales from home matches. They also earn from merchandise sales, prize money based on performance, and player trading. Additionally, income comes from local sponsorships, digital content on platforms like YouTube, and investments in global leagues and regional events. These diverse revenue sources ensure IPL franchises remain profitable.

  • PharmEasy Story: From Billion-Dollar Unicorn to Million-Dollar Valuation

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.

    The medicine industry has always been as disorganized as we can imagine. Though we were all pleasantly happy with the wholesale and retail market structure that the pharmaceutical industry has offered its customers, the digitalization of the same was evident. Thus, it happened.

    With the digitalization of the medical industry, we can now order our medicines from a wide range of eCommerce medical stores online and get them delivered online without any hassles. One of the major players that makes online ordering of medicines easy is PharmEasy.

    PharmEasy has developed a healthcare delivery platform to simplify and modernize the healthcare setup in India. The platform helps patients to stay connected with various local pharmacy stores and outlets. Data and technology are the driving factors behind a robust health and well-being ecosystem today and PharmEasy is leveraging both of them to strengthen healthcare in India.

    If you are wondering “What does PharmEasy do?” then PharmEasy serves as an online pharmacy and handles the hassle-free delivery of medicines and other medical equipment. PharmEasy operates in several major cities in India. Shopping for medicines online has thus, become convenient and easy through PharmEasy. The company delivers medicine and other medical equipment to thousands of customers every day.

    Recently, API Holdings, the parent company of PharmEasy, had its valuation reduced to $458 million in September 2024. This is a big drop of around 92% from its previous highest valuation of $5.6 billion in 2021. One of its investors, Janus Henderson lowered the value of its investment in PharmEasy by 91.8%.

    PharmEasy’s parent company, API Holdings, is seeing a major shift as three of its co-founders—Dharmil Sheth, Dhaval Shah, and Hardik Dedhia—step away from active roles in the organization.

    Read on to find out more about PharmEasy’s success story, founders and owners, net worth, business model, growth, competitors, revenue model, funding details, and acquisitions.

    PharmEasy – Company Highlights

    Startup Name PharmEasy
    Headquarters Lal Bahadur Shastri Marg, Mumbai, India
    Founder/Owner Dharmil Sheth, Dr. Dhaval Shah
    Founded 2014
    Net Worth/Valuation $458 million (November 2024)
    Parent Organization 91streets Media Technologies/API Holdings Private Limited
    Website pharmeasy.in

    PharmEasy – About And How It Works?
    PharmEasy – Industry
    PharmEasy – Founders and Team
    PharmEasy – Startup Story
    PharmEasy – Name, Tagline and Logo
    PharmEasy – Business Model
    PharmEasy – Revenue Model
    PharmEasy – Funding and Investors
    PharmEasy – ESOPs
    PharmEasy – Acquisitions
    PharmEasy – Challenges Faced
    PharmEasy – Customer Acquisition
    PharmEasy – Partnerships
    PharmEasy – Competitors
    PharmEasy – Growth and Revenue
    PharmEasy – Future Plans

    PharmEasy – About And How It Works?

    Pharmacy is an e-commerce platform for the purchase of medicines and other healthcare-related equipment. Whenever one uploads a prescription on PharmEasy, it is then sent to a drugstore in their vicinity. The company uses a mobile app and web technology to offer the best quality healthcare products and essentials to its customers at affordable rates.

    You might be thinking, “Ah! discounted products, they would be of cheap quality for sure.“ But no, a discount has nothing to do with compromise in terms of quality. The pharmacy provides top-notch products at par with the quality that you can find in reputed pharmacies and medical stores.

    Once PharmEasy sends your medical prescription to the drugstore, a delivery agent collects the medicines from the drugstore while adhering to all sorts of precautions and guidelines. Your order is then packaged and eventually delivered to your doorstep.

    PharmEasy – Industry

    Along with all the industries of now, the medicine/healthcare industry has also been witnessing decent growth empowered by the penetration of new-age technologies and the internet. Internet users have already grown at a CAGR of 18.17% between 2015 and 2019 and are further expected to rise at a CAGR of 9.3% till 2028. Besides, the e-commerce transactions also increased by 26.2% in 2023.

    The market of Indian e-pharmacies is predicted by a leading consulting firm to grow greater than 7X times between 2019 and 2023. It reached a total value of $394.09 million in 2024 and is expected to rise to $801.34 million by 2030, at a CAGR of 12.62%, which is fascinating, to say the least.

    PharmEasy – Founders and Team

    Dharmil Sheth and Dr. Dhaval Shah are the founders of PharmEasy.

    PharmEasy Owner, Founders
    Dharmil Sheth and Dhaval Shah

    Dharmil Sheth

    Dharmil is the Co-founder of PharmEasy along with being the Co-founder of API Holdings. He is also the founder and president of Ekagrata. Sheth also founded 91streets before founding PharmEasy. Dharmil is an Electronics Engineer with a Btech degree, after which he obtained an MBA in Marketing from IIM Ghaziabad. Techno Gravity Solutions and MakeMyTrip.com were among the first companies that Dharmil Sheth worked with in Business Development and as a Summer Intern respectively.

    Dr. Dhaval Shah

    Dr. Dhaval Shah has an MBBS from Rajiv Gandhi Government Medical College, after which he pursued an MBA from XLRI Jamshedpur. Shah has been the General Secretary at both of his colleges. He eventually became a Consultant at McKinsey & Company and then founded PharmEasy and API Holdings.

    The team behind PharmEasy has set its sights on becoming India’s best healthcare delivery venture. The focus at the moment is digitization to the maximum possible extent. PharmEasy is a private company that is adding new employees to its task force every other day.

    PharmEasy is undergoing a significant change as three co-founders of the parent organization, API Holdings—Dharmil Sheth, Dhaval Shah, and Hardik Dedhia—step back from active roles in the firm.

    Siddharth Shah, the fourth co-founder, will continue to lead the company.

    As per a company statement on 22 January 2025, the three co-founders will remain part of the group, align their shareholding for the long term, and continue as board members or observers, but they have chosen to step away from daily executive responsibilities.

    PharmEasy – Startup Story

    Dharmil Sheth, the founder of PharmEasy, and his doctor pal, Dr. Dhaval Shah came up with the idea of building an online pharmacy. Both of them agreed on the potential of technology in the healthcare sector and it is this idea that primarily gave rise to PharmEasy in 2014. Presently, the company extends its supplies to nearly 98% of the Indian pin codes.

    The company wanted to achieve the mission of doorstep delivery of everything related to healthcare, which it is always on the verge of achieving. Digitization has become an integral component of India’s healthcare industry. Be it scheduling a doctor’s appointment or delivery of reports and medicines, every step in the industry has been digitized. A major chunk of the credit goes to the e-pharmacies like PharmEasy for this initiative. The “health commerce industry” in India is growing at unprecedented rates courtesy of these e-pharmacies.

    “Take it easy PharmEasy” says the tagline of the company.

    PharmEasy Logo
    PharmEasy Logonet

    PharmEasy – Business Model

    PharmEasy delivers medicines and other medical accessories across Indian towns and cities. It is like Grofers for medicine. The pin codes maintained by PharmEasy are used to identify pharmacies closest to the customers. Customers can either access PharmEasy’s website or use its mobile app to order items. They are entitled to discounts of up to 20% if they order using the mobile app, which further increases brand recognition and adds new customers to PharmEasy.

    PharmEasy is an e-pharmacy, the processes of which are mostly online acting as a 3-way chain between the buyers, suppliers, and the distribution network.

    Buyers – PharmEasy is a ready platform from which buyers can search for their medicines or healthcare accessories and buy them online without any hassles.

    Suppliers – PharmEasy collaborates with a wide range of local suppliers and medical shops, all of which help the company arrange their stocks and keep them live online. Besides, the company also earns revenue from various pharmaceutical companies that want to showcase their products online and on the PharmEasy app as featured brands.

    Distribution channel – PharmEasy operates with a vast distribution spread out all across the nation. This helps the company to deliver its products for a broad range of pin codes all over India.

    Due to various rules and regulations set by the Indian government, the company doesn’t deliver Schedule H drugs.

    Why do people abstain from e-pharmacies? Research has found that most people do this because they aren’t sure where the medicines are coming from. PharmEasy is dispelling this notion for good!

    Wellnessmonk Story, Founder, Funding, Revenue Model, Products, Competitors
    Wellnessmonk – Startup Success Story
    Startup NameWellnessmonkHeadquarterKanpur
    [https://startuptalky.com/kanpur-startups/]FounderGyaan DixitSectorE-Pharmacy
    Founded2017Parent organizationDreamz Nutrition & Pharmaceutical Private Limited
    Wellnessmonk – Introduction
    Wellnessmonk – Industry Details
    Wel…
    StartupTalkyShubham Kumar

    PharmEasy – Revenue Model

    PharmEasy primarily earns by displaying the sponsored results of various pharmaceutical entities. These kinds of advertisements are found on the home pages of such organizations. Advertising is a major source of revenue and this e-pharmacy leverages it to the hilt. Besides, with the new-age strategies, you can now advertise your products, services, or business with little or no money and market your brand. Attractive discounts also contribute to PharmEasy’s revenue. Furthermore, PharmEasy earns commission from its customers for the healthcare products and medicines that are sold via the platform. The brand also earns through the delivery charges that get levied on the products.

    PharmEasy – Funding and Investors

    API Holdings, the parent company of PharmEasy, has raised INR 1,804 crore ($216 million) in a funding round led by Ranjan Pai’s Manipal Education and Medical Group (MEMG) along with its existing investors on 29 April 2024. However, this new investment comes with a 90% drop in the company’s valuation from its highest point. The valuation of PharmEasy as of September 2024 is $458 million, slashed 92% from the peak of $5.4 billion.

    PharmEasy has received $1.7 billion in funding to date in over 14 rounds. PharmEasy had last raised a private equity fund from VestinWolf Capital Management after raising a pre-IPO round worth $354 million from a clutch of investors. Market volatility, low investor sentiments, and the funding winter are some of the popular reasons behind PharmEasy looking to raise funds at a lower valuation.

    The primary round saw an infusion of the $354 million funding round was worth $204 million and led by Amansa Capital, Steadview Capital, OrbiMed, Abu Dhabi’s sovereign wealth fund ADQ, and more. In the second round of funding that PharmEasy received, the company mopped up around $150 mn from the partial exits of a bunch of existing angels and other early-stage investors like Fundamentum, Eight Roads Ventures, Bessemer Venture Partners, and others. PharmEasy, which is all set to file its Draft Red Herring Prospectus (DRHP) has also disclosed that over 20 senior employees, five founders, and some of the new investors had picked secondary shares at a valuation of $5.6 billion. The company was valued at $5.4 billion in February 2022. The company is yet to decide on its IPO round and will not be setting its pricing before the nod from SEBI.

    Before this round where the company has further raised $354 million worth of funding in its Pre-IPO round of funding, split into 2 rounds, it raised a whopping $500 million round via its Series F funding round that was led by Arokiaswamy Velumani, valuing the company at $1.8 billion in June 2021.

    Here are all the funding and investor details of PharmEasy to date.

    Date Series Amount Investors
    April 29, 2024 Venture Round $216 million MEMG Family office, Existing Investors
    Nov 7, 2022 Debt Financing – EvolutionX Debt Capital
    November 1, 2021 Private Equity Fund – VestinWolf Capital Management
    Oct 20, 2021 Venture Round – Trifecta Capital Advisors
    October 18, 2021 Pre-IPO Round $354 million Amansa Capital, Fundamentum, Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ and more
    July 7, 2021 Series F $500 million Arokiaswamy Velumani
    June 17, 2021 Secondary Market $20 million B Capital
    April 7, 2021 Series E $390 million Prosus Ventures, TPG Growth and others
    November 27, 2019 Series D $220 million Temasek Holdings and others
    September 26, 2018 Series C $50 million Eight Roads Ventures India and others
    September 11, 2018 Debt Financing $5.44 million InnoVen Capital and more
    February 28, 2018 Series C $27.23 million Eight Roads Ventures India, F-Prime Capital, and others
    April 25, 2017 Series B $2 Million Bessemer Venture Partners
    March 30, 2017 Series B $16 Million Bessemer Venture Partners

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    PharmEasy – ESOPs

    PharmEasy was reportedly valued at $5.4 billion in February 2022. Due to the exceptional growth that the company had seen, PharmEasy decided to reward the cofounders and employees by creating new employee stock options (ESOPs) for them.

    The healthcare major had passed a special resolution, where it has declared that it would be allotting around 79,987 ESOPs to each of the five co-founders of the firm – Siddharth Shah, Dharmil Sheth, Hardik Dedhia, Karsh Parekh, and Dhaval Shah. The collective worth of all these shares making the Founders’ ESOP pool is estimated to be around INR 236 crores. PharmEasy has also additionally expanded its ESOP pool with INR 356 crore worth of new options for eligible employees. This new ESOP pool has reportedly been expanded with 603,103 equity shares. Moreover, PharmEasy has also amended its existing ESOP Scheme to align it with the SEBI regulations.

    PharmEasy – Acquisitions

    PharmEasy has acquired 3 companies –

    Acquiree Name Date Deal Value
    Aknamed September 14, 2021 $144 million
    Thyrocare Technologies June 26, 2021 $605.70 million
    Medlife May 25, 2021 $250 million

    Aknamed – A healthcare company that strives to streamline the supply chain of the industry in India. PharmEasy has acquired Aknamed on September 14, 2021. PharmEasy acquired the majority stakes of Aknamed for an initial investment of INR 308 crores ($41.90 mn). The company will be acquiring Aknamed completely in a few months in a deal size estimated to be around INR 1000 crores ($136.04 mn).

    Thyrocare Technologies – Thyrocare is a full automatic diagnostic laboratory, which claims to be the first of its kind in India. PharmEasy acquired Thyrocare on June 26, 2021. In a definitive agreement where the company has acquired 66.1% stakes in Thyrocare, the deal size is mentioned at INR 4564 crores ($620 mn).

    Medlife – Medlife is an online medicine supplier from Bangalore, India, which has facilities for home delivery. On September 22, 2020, the Competition Commission of India approved the merger of Medlife (Online Pharmacy) with PharmEasy. It is noted as the First Major Consolidation in this sector after the entry of Amazon and Reliance. According to this deal, PharmEasy’s Parent Entity will acquire 100% equity in Medlife and the promoters of Medlife will get a 19.95% stake in the entity. Though the talks of the acquisition began in August 2020, the CCI approval was received in September 2020, and it is not earlier than May 2021, 8 months after the CCI nod that PharmEasy finally announced the merger with its rival Medlife. From May 25, 2021, Medlife discontinued its operations and fully merged into the PharmEasy platform. The company acquired majority stakes in Medlife valued at $250 million.

    PharmEasy – Challenges Faced

    The company started its journey in the year 2014 and has now become a major player in the online pharmacy segment. However, PharmEasy didn’t witness overnight success. Challenges are inevitable and the mentioned e-pharmacy also had its share of problems. It was difficult for PharmEasy to deliver products without a prescription.

    Knowing the medicines by their names wasn’t enough. A valid prescription was compulsory for supplying the products. Many didn’t want to upload their prescriptions fearing consequences. Furthermore, location tracking back then when the company started, was difficult for PharmEasy’s delivery agents. It is not like that anymore, though.

    The company eventually overcame the challenges thrown at it and has grown tremendously since its inception in 2014.

    PharmEasy Layoffs

    PharmEasy laid off 40 employees, as per the reports on June 16, 2022. The company has laid off around 40 of the employees who were working with its subsidiary Docon Technologies during the week. These employees who were laid off mainly belonged to the sales department and hailed from Mumbai, Delhi, Chandigarh, Jaipur, and more. PharmEasy has offered a two-month salary for the employees as part of the severance package and is reportedly helping the employees too in getting new jobs. It was also announced that Docon Technologies would be rebranded to PharmEasy One and would then be a whole entity and that most of the Docon employees would be shifted to any of the API Holdings’ entities.

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    PharmEasy – Customer Acquisition

    Customer acquisition of a company depends upon trust and faith. It’s a symbiotic relationship between how much the company is giving to its customers and how those users are benefitting in return.

    Acquiring new users has not been problematic for PharmEasy ever since it overcame the initial hiccups and challenges. A solid user-retention rate has proved PharmEasy’s expertise in keeping customers satisfied.

    PharmEasy – Partnerships

    Swiggy

    Swiggy plans to enter the online pharmacy market by delivering medicines in 10 minutes. Partnering with PharmEasy, it will leverage its infrastructure and regulatory framework via Instamart for rapid delivery of prescription and OTC drugs.

    PharmEasy – Competitors

    The company’s top competitors are –

    • Tata 1Mg
    • Ranger Health
    • Medibuddy
    • Myra Medicines
    • Hello Heart
    • BrownPacket and more.

    Besides, there are also other hospitals and chains like Apollo Pharmacy that are trying to boost overall sales via their online platform along with their brick-and-mortar stores. Most of the companies mentioned here are trying to reinforce their online delivery system of medicines. However, most of them are trailing PharmEasy.

    PharmEasy – Growth and Revenue

    PharmEasy Financials

    PharmEasy Financials FY22 FY23 FY24
    Operating Revenue INR 5,729 crore INR 6,644 crore INR 5,664 crore
    Total Expenses INR 8,491 crore INR 8,974 crore INR 7,254.8 crore
    Profit/Loss Loss of INR 2,731.7 crore Loss of INR 5,211.7 crore Loss of INR 2,533.5 crore
    PharmEasy Financials
    PharmEasy Financials

    In 2023, PharmEasy had an operating revenue of INR 6,644 crore, and its total expenses were higher at INR 8,974 crore, leading to a loss of INR 5,211.7 crore. In 2024, their revenue decreased to INR 5,664 crore, and expenses also dropped to INR 7,254.8 crore, resulting in a smaller loss of INR 2,533.5 crore.

    Dhaval Shah and Dharmil Sheth are playing a major role in this growth through excellent leadership and superior decision-making.

    PharmEasy Financials FY22 FY23 FY24
    EBITDA Margin -39.66% -20.38% -9.59%
    Expense/Rupee of ops revenue INR 1.48 INR 1.35 INR 1.28
    ROCE -32.11% -27.12% -15.71%

    India’s IPO market slowed in 2022 after 2021 saw the largest amount of funds raised in at least a decade. API Holdings Ltd., owner of India’s largest online pharmacy PharmEasy, withdrew its preliminary filing for an initial public offering, citing market conditions and strategic considerations. PharmEasy had filed its DRHP with the market regulator SEBI and was planning to raise INR 6,250 crore through a fresh issue of shares on November 10, 2021. The existing investors of the company were not selling any shares in the upcoming IPO, as per the DRHP.

    Furthermore, PharmEasy had announced that it would be looking for a pre-IPO fundraising of up to INR 1,250 crore via private placement after consulting with the BRLMs (Book Running Lead Manager). However, according to the latest news, PharmEasy was looking to slash its IPO valuation considering the volatility of the current market, as of February 19, 2022. PharmEasy currently partners with over 60K brick-and-mortar pharmacies from across the country and has served 20 mn+ patients since it was formed.

    Finally, there is no shortcut to success and PharmEasy is a case in point. From being an unknown candidate in the online pharmacy space to becoming an established brand, Dharmil Sheth-founded PharmEasy has conquered varying obstacles to reach the zenith of success.

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    PharmEasy – Future Plans

    PharmEasy plans to launch an IPO in the future if its performance remains strong. The company is working to reduce its debt before going public. It is waiting for approval from the Competition Commission of India (CCI) to move ahead with its plans.

    FAQs

    Who is PharmEasy owner?

    API Holdings Private Limited is the Parent Organisation of PharmEasy. Dhaval Shah and Dharmil Sheth are the Founders of PharmEasy.

    How much is PharmEasy Revenue and Profit?

    In 2023, PharmEasy had an operating revenue of INR 6,644 crore, and its total expenses were higher at INR 8,974 crore, leading to a loss of INR 5,211.7 crore. In 2024, their revenue decreased to INR 5,664 crore, and expenses also dropped to INR 7,254.8 crore, resulting in a smaller loss of INR 2,533.5 crore.

    How PharmEasy work?

    Customers can upload a prescription on PharmEasy, which is then sent to a drugstore in your vicinity. The package is then delivered to their doorsteps within the stipulated time.

    How much is PharmEasy net worth?

    API Holdings, the parent company of PharmEasy, had its valuation reduced to $458 million in September 2024.

    Is the Pharmeasy office in Bangalore its headquarters?

    No, the Pharmeasy headquarters is in Mumbai, Maharashtra but it has its office in Bangalore.

    How much funding have Pharmeasy funding rounds earned for the company?

    The Pharmeasy funding rounds have helped the company raise a whopping $1.7 bn, as of November 2024.

    What are PharmEasy acquisitions?

    Aknamed, Thyrocare, and Medlife are the 3 major PharmEasy acquisitions.

  • BookMyShow Business Model | How BookMyShow Makes Money

    BookMyShow is currently India’s largest online entertainment ticketing platform spread across 5 countries and operating in almost 60 cities.

    It was earlier running under the brand of Big Tree Entertainment Pvt Ltd. BookMyShow was founded by Ashish, Parikshit, and Rajesh in the year 1999. It initially operated as a software reseller for movie tickets but gradually ventured into cloud-based events, sports, and movies. The company’s founders have seen several ups and downs since the inception of the company.

    The proposition of selling entertainment tickets online was initially conceptualized by Ashish Hemrajani who started a small venture in his bedroom at the age of 24. Since its establishment, BookMyShow has been on a roller-coaster ride. The company has seen it all; it survived the Dot Com crash in 2007 and sailed through the global financial crisis of 2008.

    It managed to sail through tough times and emerged as the hero in the end. BookMyShow has become a platform offering a plethora of choices for its customers. Customers can now book tickets and surf trailers anytime from anywhere. In this article, we will explore the BookMyShow Business Model, BookMyShow Revenue Model, and how BookMyShow earns money.

    Establishment of BookMyShow
    BookMyShow Business Model
    How BookMyShow Works?
    BookMyShow Revenue Model | How Does BookMyShow Make Money
    BookMyShow Revenue Strategy

    Establishment of BookMyShow

    In the initial days of 1999, a software reseller for VISTA Group, a private company, was founded. This company was started under the Big Tree Entertainment Private Limited Company, known as a parent organization for BookMyShow. It was started by Ashish Hemrajani, Parikshit Dar, and Rajesh Balpand.

    Later, when the dot com raised its peak, the company modified by focusing on sales rather than booking through the Internet. This finally dissolved in 2007, and the website – BookMyShow was started as a ticketing aggregator.

    BookMyShow has grabbed it all: cultural events, parties, concerts, shows, plays, fairs, and other international events as well. The company also introduced tickets for activities happening in one’s vicinity. Booking has become easier than ever.

    The company has been now following an upward trend in growth and innovations. In 2012, the company launched its Android and IOS app and since then, the company has never looked back. More than 30 million downloads have been made for the app version of BookMyShow.

    It has over 16 million customers and 10 million+ tickets are sold per month. The funding of $150 million for BookMyShow comes from Accel, Network 18, Stripes, and Saif Partners. Now by looking at the current analytics and data, BookMyShow is the 34th largest website according to Alexa and India’s biggest website for booking tickets.

    The app allows its users to check on any event happening in and around them: timings, reviews, availability, trailers, and much more.

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    BookMyShow Business Model

    BookMyShow Business Model is one of those rare business model examples based on the internet that actually make money as internet handling fees/convenience fees on consumer services.

    Book My Show Business Model is very straightforward. It charges convenience fees on every ticket that is booked through the platform. They initially started out as free (zero convenience fee) for consumers and then when it gained popularity they started levying a 10% internet handling fee plus taxes.

    How BookMyShow Works?

    The working of the BookMyShow Business Model is brilliant. As we know BookMyShow does not charge any extra money on the hall services. So, how does it make the money? It works through the following sources:

    Internet Handling/Convenience Fee

    Whenever you book a ticket through the BookMyShow website, it charges you an additional price as the Internet Handling/Convenience Fee. This is basically a service fee that you have to pay to the company to provide you with the convenience of booking tickets easily online for any movie or event. This saves you from physically visiting and standing in line at the Ticket Centre.

    Therefore, charging the Internet Handling or Convenience Fee becomes the major source of revenue for BookMyShow.

    Ticket Sales Commission

    BookMyShow is one of the biggest platforms for selling tickets. That’s why it charges a commission fee from the cinema hall and event organizers based on the gross value of total tickets sold from the website BookMyShow. This mainly depends on the popularity of the movie or event and the price of the ticket.

    However, to save the little commission charge, the multiplexes or the event organizers put only a fraction of the total tickets on the BookMyShow website. That’s why sometimes when BookMyShow shows “sold out” on any event or movie tickets, it may be available on the counter of multiplexes.

    BookMyShow often earns through the banner advertising of the upcoming or the latest movie or event. It promotes the show or movie through its banner in the form of advertisements. Also, it earns great revenue from the paid promotion of certain movies and events on its website to catch the eyes of viewers and regular consumers.

    BookMyShow banner Advertising
    BookMyShow banner Advertising

    BookMyShow Revenue Model | How Does BookMyShow Make Money

    BookMyShow Revenue Model has almost 90% of the market share under the entertainment ticketing sector. It is called the king of all; despite emerging competitors, BookMyShow has managed to retain the leader’s position.

    The company has always focused on discounts, especially on movie tickets, and promotes payments through BookMyShow wallets; its wallet is the major source of revenue that contributes about 60% of the total revenue.

    The company charges a convenience fee over and above the price of the tickets. This difference is what BookMyShow keeps. As far as non-movie events are concerned, BookMyShow commission comes from the sale of such tickets.

    BookMyShow Financials

    BookMyShow Financials FY22 FY23 FY24
    Operating Revenue INR 277 crore INR 976 crore INR 1,397 crore
    Total Expenses INR 395 crore INR 941 crore INR 1,320 crore
    Profit/Loss Loss of INR 92 crore Profit of INR 85 crore Profit of INR 109 crore
    BookMyShow Financials
    BookMyShow Financials

    In FY23, BookMyShow had an operating revenue of INR 976 crore, but its total expenses were INR 941 crore, resulting in it making a profit of INR 85 crore. In FY24, the company’s operating revenue increased to INR 1,397 crore, while total expenses were INR 1320 crore. This change led to their profit rising to INR 109 crore. BookMyShow turnover or operating revenue for FY24 was INR 1397 crore.

    EBITDA

    BookMyShow FY22-FY24 FY22 FY23 FY24
    EBITDA Margin -16% 12.70% 11.07%
    Expense/Rs of Op Revenue INR 1.43 INR 0.96 INR 0.94
    ROCE -12% 12.63% 15.25%

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    BookMyShow – Revenue Strategy

    BookMyShow follows a strategy of no refund after payment. It also has a source of revenue from non-ticketing means. Due to its large internet audience, it has the first-mover advantage and promotes new artists and their offerings, therefore catching up a significant part of the revenue from promotional methods as well.

    BookMyShow has certain sources of revenue for the company. Its sources are:

    Revenue through Tickets

    On the selling of tickets for any movie or event, BookMyShow gets a commission from the organizer or cinema hall. This is a major source of revenue that comes to around 60% of total revenue. The commission comes around as:

    • From the additional charges of internet handling and gap on booking tickets.
    • Convenience fee over the pricing of tickets.
    • Commission through the ticket booking.

    Revenue through Other Events

    When a company wants to promote its new artwork, film, or artists, they sign BookMyShow for its promotion through its massive page views.

    BookMyShow offers tickets from all categories and shows such as sports, dramas, plays, tours, and many more. You can search through the categories and find your interest-based show. Once the ticket is booked, it cannot be canceled or postponed.

    The business thrived despite no investor support from 2002 to 2006. After the Dot Com boom settled, the Indian market was revamped with better internet services, credit, and debit card facilities, and infrastructure setup. The number of multiplexes across India also proliferated. With a favorable scenario in the backdrop coupled with BookMyShows’s promising business plan, investors were willing to put their money in BookMyShow.

    BookMyShow has raised a total funding of over $224.5 million in 6 rounds. In the latest round of funding raised in January 2019, Singapore-based Jungle Ventures invested an undisclosed amount in Bigtree Entertainment Singapore Pte Ltd. (owned by BookMyShow SEA).

    BookMyShow started operating in South East Asia in 2016 with its headquarters in Indonesia. With funding from Jungle Ventures, the company is now planning to shift its headquarters to Singapore. As confirmed by BookMyShow SEA’s CEO Kenneth Tan, the funds raised will be utilized to enhance the technological operations of BookMyShow SEA and to efficiently cater to the increasing number of users in the Southeast Asian region.

    Sources say that before raising $100 million in funding from ‘TPG Growth‘ in July 2018, BookMyShow was valued at about $750 million. With the boost from TPG Growth, BookMyShow now hovers at around $850 million.

    BookMyShow recently announced the release of its own video streaming platform. This launch can be a great success and a big revenue stream.

    FAQs

    What is BookMyShow?

    Bigtree Entertainment’s BookMyShow is India’s largest entertainment ticketing website. Headquartered in Mumbai, it is the only destination for movie and non-movie options like events, plays, and sports.

    What is the business model of BookMyShow?

    BookMyShow operates on a commission-based model. It earns revenue by charging a fee on every ticket sold for movies, events, and shows. Additional income comes from advertising, partnerships, and convenience fees charged to users.

    How much does Bookmyshow charge for listing?

    BookMyShow charges sellers a listing fee of Rs 20 for the first book listing and Rs 10 for each additional book listing.

    How BookMyShow earns money?

    BookMyShow makes money through the following sources:

    • Ticketing revenue
    • Non-ticketing revenue

    Is refund available in BookMyShow?

    Yes, Select ‘Purchase History’ and choose the booking you wish to cancel and tap on ‘Cancel Booking’ available on the bottom-right of the screen. Then Refund to BMS cash will be credited within 4 hours and in case of original payment source, funds will reflect within 5-7 working days.

    What are BookMyShow event listing charges in India?

    BookMyShow charges a convenience fee for booking tickets. It also adds an internet handling fee of ₹5–25 per ticket, depending on the ticket price. Taxes are applied on the convenience fee, along with any government taxes.

    How much commission does BookMyShow take?

    BookMyShow earns revenue through various channels, including commissions from ticket sales, convenience fees, advertising, and partnerships. The specific commission rates charged to event organizers and venues are not publicly disclosed and can vary based on factors such as the type of event, venue, and location. Additionally, BookMyShow charges customers a convenience fee and an internet handling fee per ticket, which can range from ₹5 to ₹25, depending on the ticket price. These fees contribute to the company’s overall revenue model.

    Does BookMyShow take extra money?

    Yes, BookMyShow charges extra fees in addition to the ticket price, such as commission fee, internet handling fee, and taxes.

    What is BookMyShow profit?

    BookMyShow earned a profit of INR 109 crore in 2024.

  • Cricbuzz: The Ultimate Cricket Hub Driving Fans and Revenue

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.

    We all love watching and playing cricket right? “Cricket is my favorite sport” yelled a guy from that corner. Of course yes, it’s almost the entire Indian’s favorite sport! Imagine when the IPL‘s last over is on and there’s a power cut. Can you imagine how annoying, it’s for you, me, or any cricket lover?

    Anyway, no worries about that anymore. Cricbuzz is an Indian cricket news platform. It will provide you with all the desired news you want, in case of a power cut or you might be out of the station without a television.

    Learn more about Cricbuzz, its founders, business and revenue model, startup story, growth, revenue, challenges, and more.

    How Cricbuzz became the Biggest Cricketing News Sensation
    How Cricbuzz became the Biggest Cricketing News Sensation

    Cricbuzz – Company Highlights

    Company Name Cricbuzz
    Headquarters Bengaluru, Karnataka, India
    Founders Pankaj Chhaparwal, Piyush Agarwal, and Pravin Hegde
    Founded 2004, mobile app – 2010
    Annual Revenue $22 million (2020)
    Parent Organization/Owner Times Internet
    Website www.cricbuzz.com

    Cricbuzz – About
    Cricbuzz – Founders And Team
    Cricbuzz – Owner
    Cricbuzz – Startup Story And History
    Cricbuzz – Business Model
    Cricbuzz – Revenue Model
    Cricbuzz – Achievements
    Cricbuzz – Competitors
    Cricbuzz – Growth
    Cricbuzz – Creative Marketing Strategy and Active Social Media Presence

    Cricbuzz – About

    Cricbuzz is an Indian cricket news website owned by Times Internet. It features articles, news, and live coverage of cricket matches. This includes scorecards, videos, text commentary, team rankings, and player stats. This website also provides a mobile app. Cricbuzz is one of the most popular mobile apps for cricket news and scores in India.

    Check Cricbuzz website for Cricbuzz Live Cricket Score
    Cricbuzz Logo

    Cricbuzz – Founders And Team

    Pankaj Chhaparwal, Piyush Agarwal, and Pravin Hegde are the founders of Cricbuzz.

    Pankaj Chhaparwal | Founder and CEO, Cricbuzz
    Pankaj Chhaparwal | Founder and CEO, Cricbuzz
    • Pankaj Chhaparwal is the founder and CEO of Cricbuzz. He has been working here from the beginning itself. He pursued his education at L D College of Engineering, Gujarat University.
    • STAR has taken Piyush Agarwal. He pursued his education at the Indian Institute of Technology, Banaras Hindu University.
    • Pravin Hegde is the co-founder and CTO at Cricbuzz.
    • Sarah Waris is a Freelance Contributor at Cricbuzz. She joined the company in March 2019.
    • Abhideep Das is the Content Strategist and the Senior Producer at Cricbuzz. Before he was the Creative Producer of Digital Content for Kolkata Knight Riders. He was also an Editorial Consultant at Bayside Media Private Limited.

    Cricbuzz – Owner

    Times Internet is the owner of Cricbuzz. Times Internet is India’s largest digital products company. Its subsidiaries include Economic Times, Bangalore Mirror, Gaana, MX Player, MensXP, Times of India, Cricbuzz, IndiaTimes, CricPlay, Databack, Dineout, ETMoney, and more.

    Times Internet - Cricbuzz Owner
    Times Internet – Cricbuzz Owner

    Cricbuzz – Startup Story And History

    Three former Infosys employees started Cricbuzz. In November 2014, Times Internet, part of the Times of India group, bought a big share in Cricbuzz.

    In January 2015, Times Internet merged its cricket platform, GoCricket, with Cricbuzz. GoCricket’s website started redirecting users to Cricbuzz, and the GoCricket mobile app was also combined with Cricbuzz.

    Later, in August 2015, Cricbuzz sponsored the India-Sri Lanka test series.

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    Cricbuzz – Business Model

    Cricbuzz’s business model is mainly concerned with giving updated scores of the matches. It sells to OnMobile which has got a relationship with different mobile operators. Under this, users get the latest live score updates for a charge. This is the primary source of their income. Other than this source, the company runs various advertisements on its platform, which is also a source of revenue generation for the company. The company is in a partnership with InMobi to monetize mobile advertisements.

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    Cricbuzz – Revenue Model

    Cricbuzz makes money mainly through advertising and sponsorships:

    • Advertising: Cricbuzz earns a lot from display and video ads on its platform. Cricbuzz grabs a huge amount via Adsense and Admob on its site and app. The strategic placement of advertisements in a user-friendly manner near the content helps Cricbuzz Monetize.
    • Sponsorships: Big brands like Google, ESPN, Star Sports, BCCI, and ICC partner with Cricbuzz. These deals bring in more money, boost trust, and help Cricbuzz create more content.
    • High-Traffic Platform: Cricbuzz has many cricket fans visiting its platform, making it a great choice for advertisers.

    Cricbuzz’s revenue model mainly revolves around Advertisements something ubiquitous from which the companies usually earn. It also earns through the display of the Cricbuzz scores on Hike Messenger. Cricbuzz creates value for users, which also promotes itself to customers.

    It also earns money by sharing live cricket scores with telecom operators. These operators send score updates as messages to their users. Google AdSense also plays a big role in helping Cricbuzz make money.

    Cricbuzz Financials

    Metrics FY 2019-20 FY 2018-19 FY 2017-18 FY 2016-17 FY 2015-16
    Revenue INR 156.6 crore INR 133 crore INR 97.3 crore INR 70.5 crore INR 66.4 crore
    EBITDA INR 70.6 crore INR 69.6 crore INR 41.4 crore INR 15.4 crore INR 18.7 crore
    Net Profit INR 49.9 crore INR 48.6 crore INR 25.8 crore INR 11 crore INR 11.6 crore
    Cricbuzz Financials

    Cricbuzz’s revenue grew steadily from INR 66.4 crore in FY 2015-16 to INR 156.6 crore in FY 2019-20. Its EBITDA also rose from INR 18.7 crore to INR 70.6 crore during the same period. Net profit increased from INR 11.6 crore in FY 2015-16 to INR 49.9 crore in FY 2019-20, showing strong financial growth over the years.

    Cricbuzz – Achievements

    • With 496.25M organic traffic, Cricbuzz was ranked 26th worldwide by RankRanger for The Top Websites by Organic Rank.
    • In October 2019, the company was ranked 406 globally.
    • It was ranked 40 in India by Alexa Internet.
    • The site was the 7th most searched site in India for the year 2014.
    • The mobile app has over 100 million downloads and more for October 2019.
    • The website is used by more than 50 million users all over the world. It generated 2.6 billion page views in January 2015. Unbelievable!

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    Cricbuzz – Competitors

    The top competitors of the company are the International Cricket Council, ESPNcricinfo, Cricket Exchange, and Onecricket.

    • The International Cricket Council is the world governing body of cricket.
    • ESPNcricinfo is a sports news website only for the game of cricket.
    • Cricket Exchange provides its users with the fastest Live scores. With accurate Odds and sessions and everything. It keeps the users in touch with cricket.
    • Onecricket is something more than fantasy sports. It’s the best platform to follow cricket games, compete with your friends, and showcase your cricket knowledge.

    Cricbuzz – Growth

    During the 2015 World Cup. Cricbuzz was the most used cricket score website for cricketing news and updates. The company also received a massive number of visitors during the World Cup at a time. It was the most desired destination of all cricket lovers on mobile with over 1 billion visits during the World Cup alone.

    Cricbuzz – Creative Marketing Strategy and Active Social Media Presence

    To increase its popularity out of the circle of cricket fans, Cricbuzz started a social media campaign “Strategic Timeout”. Strategic Timeout is called out by IPL teams during mid-game to reformulate the strategy. The content was based on how social media influencers used the lockdown period strategically. This content leads the influencer followers to the Cricbuzz app and social media pages.

    Social Media Campaigns by Cricbuzz | StratupTalky
    Social Media Campaigns by Cricbuzz

    Cricbuzz has very active and interactive social media pages. It keeps posting new challenges and campaigns along with cricket world updates and talks. Some of the challenges are “Guess the champion”, “Strategic Timeout”, “Mask India” and “AbCricketBuzzega”. To hype up the upcoming season of IPL 2020 Cricbuzz recorded a rap “AbCricketBuzzega”.

    There was a possibility. There is a possibility. And there will always be a possibility to pump up money through cricket. Pitches are always the priority in this aspect. Now we see advanced synthetic pitches. These are used for shorter formats. A tinge of grass and sponge pitch is required for bowlers. This kind of thing will make the sport more interesting than before. Of course, it needs deep and strategic planning. Games are suspended due to rain. Soon, there will be closed-roof stadiums to avoid the most annoying part of live cricket.

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    Conclusion

    Cricbuzz is a popular website and mobile application that provides up-to-date news, scores, and statistics for cricket matches around the world. It is a reliable source of information for cricket fans and offers a wide range of features such as live scores, commentary, and player profiles. It is considered one of the most popular cricket websites which provides all the information related to cricket.

    FAQs

    Who are the Cricbuzz founders?

    Pankaj Chhaparwal, Piyush Agarwal, and Pravin Hedge are the founders of Cricbuzz.

    How does Cricbuzz make money?

    Cricbuzz grabs a huge amount via Adsense and Admob on its site and app. The strategic placement of advertisements in a user-friendly manner near the content helps Cricbuzz Monetize.

    Who owns Cricbuzz?

    Pankaj Chhaparwal, Piyush Agarwal, and Pravin Hegde are the founders of Cricbuzz. Times Internet is the Parent Organisation/Owner of Cricbuzz.

    Who are the Top Competitors of Cricbuzz?

    The top competitors of Cricbuzz are the International Cricket Council, ESPNcricinfo, Cricket Exchange, and Onecricket.

    How much is Cricbuzz’s Revenue?

    Cricbuzz’s Revenue is nearly $22 million as of 2020.

    How does Cricbuzz website work?

    The Cricbuzz website features articles, news, and live coverage of cricket matches. This includes scorecards, videos, text commentary, team rankings, and player seats.

  • BlackBuck Business Model | How does BlackBuck Make Money

    BlackBuck is an incredibly popular digital platform for trucks. BlackBuck is considered the pioneer in the field of trucking. The company has introduced a new and organized pathway for making trucking convenient for all shippers and truckers. Basically, it’s a tech-enabled platform for logistics services to shift conventional trucking to a digital platform.

    The company is working towards making truckload bookings and moving them at the utmost capacity. The shippers would have all the required information about the whereabouts of truckers.

    BlackBuck was founded in 2015 and has brought remarkable development in the field of trucking operations. Legally, BlackBuck is termed as Zinka Logistics Solutions Pvt. Ltd. It is headquartered in Bengaluru, Karnataka, India.

    BlackBuck helps the shippers to have access to a suitable truck at an accurate time for the right place, just by pressing a button. The company has partnered with the World Bank and the Indian Government on various important policies including the Goods & Service Tax (GST), E-Way Bill, and many others.

    Zinka Logistics, the parent organization of BlackBuck recently launched its IPO on 13th November 2024.

    In this article, we will be discussing the BlackBuck Business Model, how BlackBuck makes money as well as the strategies opted by BlackBuck for its immense success. Let’s get started!

    About BlackBuck
    Where Does BlackBuck Operate?
    Key Features of BlackBuck
    BlackBuck Business Model
    How Does BlackBuck Make Money?
    Competitors of BlackBuck

    About BlackBuck

    BlackBuck is the leading as well as the largest trucking network in India. The company has put great effort into shifting trucking to the digital platform and enabling the shipper with the right trucker or reshaping the trucking infrastructure in order to simplify payments, financial services, and insurance.

    BlackBuck’s strong technology helps it to provide efficiency, dependability, and seamless experience to the truckers as well as shippers.

    BlackBuck has a hugely strong team of over 2000 people and holds the best sets of investors including Apoletto Asia, Goldman Sachs, Light Street, Sequoia Capital, Accel Partners, Tiger Global, and IFC.

    The company deals with more than 10,000 clients onboard across 3000+ villages along with 400+ industrial centers and over 3,00,000 truckers. It formerly received ‘CNBC-TV18- Young Trucks Startup of the Year‘ and the ‘Zee Business- Company of the Year Logistics’ in 2018. BlackBuck’s company logo marks the beginning of a new path.

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    Where Does BlackBuck Operate?

    BlackBuck company functions in more than 200 cities across India. The track records of the distributed assets to the truck drivers in all these cities became quite difficult to manage and organize through a spreadsheet. In the upcoming years, the company is prepared to expand its territory and enlarge its assets to more cities to facilitate the services.

    Key Features of BlackBuck

    BlackBuck utilizes various advanced technologies in the field of logistics. The company comes up with tons of features, but the most effective are:

    • Quality benchmark
    • Monitoring and controlling
    • Direct procurement channels

    BlackBuck Business Model

    BlackBuck follows business-to-business (B2B) as well as business-to-consumer (B2C) models. BlackBuck company works towards upgrading the logistics services for the truckers. It contributes towards dealing with the major issue of trucks returning empty.

    The company designed its business model in such a manner that its trucks can be reassigned from their definite location for another trip so that the customers would get better prices and pay for the return trip and most importantly, a lower carbon footprint.

    BlackBuck used to function with spreadsheets to keep track of its assets and trips. But, with the increased number of registered trucks and shippers, the management became very tough and complicated. That’s why the company is putting major research into a better solution for this problem and seeing more options in hand.

    How Does BlackBuck Make Money?

    BlackBuck charges a small amount of fees from its customers at a fixed rate for the contract business. It generates a huge fraction of its money by charging the customers as well as the truck owners a commission of around 15-20% depending on the freight value.

    Blackbuck Logistics Company provides all the required facilities to the registered trucks for a smooth truck race. With its advanced technology, BlackBuck takes trucking to the next level in the industry.

    BlackBuck is upgrading logistics into an absolutely reliable and efficient at country level. BlackBuck made a net profit of INR 28.67 crore in Q1 FY25, compared to a net loss of INR 35.93 crore in the same quarter in FY24. Blackbuck’s revenue from operations grew by nearly 55%, reaching INR 92.16 crore, up from INR 59.46 crore in the previous year.

    BlackBuck YoY Topline Growth
    BlackBuck YoY Topline Growth

    BlackBuck’s operating revenue grew from INR 119 crore in 2022 to INR 176 crore in 2023, reaching INR 297 crore in 2024. Commission income increased from INR 75 crore in 2022 to INR 127 crore in 2024, and subscription fees went up from INR 39 in 2022 crore to INR 117 crore in 2024. Service fees also rose from INR 4 crore in 2022 to INR 13 crore in 2023, reaching INR 51 crore in 2024.

    BlackBuck raised funding worth $364 million in around 9 funding rounds. In its last funding round, the company raised $67 million from prominent investors including VEF, Tribe Capital, and Emerging Asia Fund in 2021. This increased BlackBuck’s valuation up to $1.02 billion and took it to the list of unicorns in space at 2nd after its biggest competitor Rivigo.

    Competitors of BlackBuck

    BlackBuck is immensely famous in the logistics sector. With its advanced technology and features, it’s known to be quite distinguished. As the leading and largest logistics services provider, many companies are up to beat BlackBuck. But, its top competitors in the market are Delhivery, BlownHorn, Rivigo, Xpressbees, and ElasticRun.

    Conclusion

    BlackBuck has worked enormously in the field of logistics services and ought to make the procedure convenient and efficient. The company utilizes advanced technology in trucking services and develops a huge customer base, resulting in great deals.

    The company follows both B2B and B2C business models. Its major source of revenue is from the commission it charges from the customers and truckers which is 15-20%. BlackBuck is one of the largest logistics services providers in India and is working on improving trucking more efficiently.

    FAQ

    What does Blackbuck company do?

    BlackBuck company helps move goods across India. It connects truck owners with businesses that need to transport goods. It also uses technology to make trucking easier and more efficient.

    What is BlackBuck company?

    BlackBuck is an Indian logistics company that connects trucks with businesses for goods transport.

    Is BlackBuck a unicorn?

    Yes, BlackBuck is the first logistic startup to turn unicorn in 2021.

    Who is BlackBuck company owner?

    Rajesh Yabaji is the co-founder and CEO of BlackBuck.

  • Infosys Business Model – How Infosys Makes Money?

    Infosys is a leading multinational specializing in technology-driven solutions like business consulting, IT, and outsourcing services. Infosys enables businesses across various sectors to use end-to-end services, including digital transformation, AI, cloud computing, and cybersecurity.

    Infosys uses its expertise and technology to help organizations cut costs, improve operations, and reach their goals, making it a trusted global partner.

    This article will explore Infosys’s business and revenue models in depth, helping readers clearly understand the company’s growth trajectory.

    About Infosys
    Infosys Business Model
    How Infosys Makes Money | Infosys Revenue Model
    Value Proposition of Infosys
    Infosys SWOT Analysis

    About Infosys

    About Infosys
    Infosys Office

    Founded in 1981, Infosys is a global consulting and IT services company listed on the NYSE, with over 317,000 employees. Started with an initial capital of $250, it was registered as Infosys Consultants Private Limited on July 2, 1981. In 1983, the company relocated to Bangalore, Karnataka. In 1999, Infosys became the first Indian company listed on NASDAQ, gaining access to capital markets and boosting its growth.

    On August 24, 2021, Infosys became the fourth Indian company to achieve a $100 billion market capitalization. Recognized as one of India’s leading Big Tech companies, Infosys ranks as the second-largest Indian IT company by revenue and the third-largest by market capitalization as of March 31, 2024.

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    Infosys Business Model

    Infosys Strategies and Models
    Infosys Strategies and Models

    Infosys’s business model is all about providing innovative and personalized technology solutions for clients. The company offers a range of services, including application development, systems integration, consulting, and outsourcing.

    Clients typically begin their partnership with Infosys by outlining their specific needs and goals while collaborating with the company’s solution architects. Next, Infosys examines the client’s current IT setup to identify challenges and opportunities. After this, Infosys works with clients to develop customized solutions, which may involve creating new applications or integrating existing systems. 

    The company focuses on quality and efficiency through careful project management and industry best practices, ensuring that its solutions provide real value. Additionally, Infosys offers ongoing support, including troubleshooting and performance optimization, to help clients make the most of their technology investments. Infosys offers services like Infosys NIA, an AI platform, and Infosys Finacle, a banking solution, that supports sectors like finance, retail, and healthcare in driving digital transformation for clients.

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    How Infosys Makes Money | Infosys Revenue Model

    Infosys primarily earns revenue through fees for consulting, IT services, and outsourcing, making it a key partner for businesses in many industries. Additionally, Infosys licenses its software products and platforms, which diversifies its income and ensures a steady cash flow. This varied revenue model also reduces market risks, as long-term contracts and repeat business from loyal clients provide stable income. This allows Infosys to invest continuously in innovation and new capabilities.

    Process Improvement

    A major revenue driver for Infosys is Process Improvement. By using advanced technologies like automation, AI, and cloud computing, Infosys enhances both internal processes and client solutions. Regular performance benchmarking and continuous improvement create added value for clients and increase revenue by optimizing workflows and reducing costs.

    Workforce Efficiency

    Workforce Efficiency is also key. By shifting more work to offshore locations with skilled talent at lower costs, Infosys reduces expenses, improves margins, and offers competitive pricing. This model gives Infosys the flexibility to scale efficiently with project demands, boosting revenue.

    Knowledge Reuse

    Another strategy is Knowledge Reuse. Infosys’s experience and strong knowledge management allow it to reuse established solutions, reducing development time and expenses. This reuse maintains high service quality, fosters client trust, and promotes repeat business.

    Strategic Projects

    Strategic Projects through Centers of Excellence (CoEs) drive growth by focusing on high-impact projects that meet industry needs, creating revenue from innovative, large-scale initiatives.

    Software Services

    Finally, Software Services form 95% of Infosys’s revenue, with a skilled workforce delivering high-quality digital solutions. The Global Delivery Model also plays a key role, particularly in North America, where Infosys earns nearly two-thirds of its revenue.

    With its strong resources and capabilities, Infosys provides valuable solutions, strengthens its market position, and supports sustainable growth, making it a trusted IT partner worldwide.

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    Revenue of Infosys Limited worldwide from financial year 2014 to 2024

    Revenue of Infosys Limited worldwide from financial year 2014 to 2024
    Revenue of Infosys Limited worldwide from financial year 2014 to 2024

    Value Proposition of Infosys

    Infosys’ value proposition is distributed across 4 categories: 

    • For Enterprises: Infosys offers creative solutions that align with business goals, helping enterprises adapt to changing technologies and market demands while streamlining operations and enhancing customer experiences. 
    • For Government Organizations: Infosys provides expertise in navigating regulatory landscapes and ensuring data protection, improving operational efficiency and service delivery. 
    • For SMEs: Infosys delivers cost-effective solutions that boost productivity and engagement, enabling SMEs to compete with larger companies. 
    • For Startups: Infosys supports startups with industry knowledge and scalable resources to accelerate their growth. 
    • For Global System Integrators (GSIs): Collaborating with Infosys allows GSIs to leverage technical expertise and global delivery for innovative digital transformation solutions.

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    Infosys SWOT Analysis

    Infosys Strengths

    • Comprehensive Training Programs: Infosys provides extensive employee training and competency development, utilizing a mix of classroom, virtual, macro, and microlearning methods.
    • Wide Course Offering: The company offers approximately 1,500 continuous education courses, ensuring employees have access to a diverse range of learning opportunities.
    • Digital Transformation in Training: Infosys actively modernizes its training processes by leveraging digital platforms, enhancing the overall learning experience.
    • Industry Leadership in Employee Development: Recognized for its innovative training initiatives, Infosys is considered one of the best in the IT industry for employee training and skill enhancement.

    Infosys Weaknesses

    • Client Dependency Risks: Infosys relies heavily on North America for over 60% of its revenue, exposing the company to geopolitical and regulatory risks that can hinder growth.
    • Integration Challenges from Acquisitions: The company has struggled with integrating acquisitions due to cultural misalignment, leading to significant financial losses, such as the $90 million write-off from failed acquisitions like Panaya and Skava.

    Infosys Opportunities

    • Rapid Growth in IT Ecosystem: India’s IT industry is growing at 15.5% annually, outpacing the overall economic growth and presenting Infosys with significant opportunities, particularly in the software product sector, projected to reach a $1 trillion global market by 2025.
    • Rising Demand for Cloud Solutions: The public cloud services market in India is expected to grow at an impressive rate of 22.9% annually, with projections of reaching $17.8 billion by 2027, offering Infosys ample opportunities to provide cloud-native solutions and digital services.
    • Dominance in Outsourcing: As the leading outsourcing destination, India comprises 55% of the IT and Business Processing Management services market, with projected spending in the IT sector set to increase by over 11.1% to $138.6 billion in 2024, creating substantial growth prospects for Infosys.
    • Strategic Expansion and Acquisitions: Infosys’s size enables it to effectively acquire smaller competitors, leveraging past successful acquisitions to enhance its market position and drive further business growth.

    Infosys Threats

    • Cybersecurity Risks: With advancing technology, Infosys faces heightened threats from data breaches and cyberattacks.
    • Geopolitical and Economic Challenges: Geopolitical uncertainties and economic fluctuations, such as trade wars, currency volatility, and policy shifts, pose significant risks to Infosys’s cross-border operations and profitability.
    • High Employee Attrition: Infosys experiences a high attrition rate of 12.6%, one of the worst in the industry, resulting in increased recruitment and training costs as the company struggles to retain talent.
    • Intense Competition and Regulatory Hurdles: Operating in a competitive IT landscape with rivals like Accenture and IBM, Infosys faces pressure to innovate and manage costs.

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    Conclusion

    Infosys’s client-centric approach focuses on building long-term relationships through dedicated account management, enhancing satisfaction and loyalty. The company invests significantly in research and development to foster innovation and uses flexible pricing models to meet diverse client needs. By implementing a global delivery model, Infosys achieves operational efficiency, providing cost-effective, high-quality solutions that position it well in the dynamic technology landscape.

    FAQ

    What is the main source of income for Infosys?

    Software Services form 95% of Infosys’s revenue, with a skilled workforce delivering high-quality digital solutions. The Global Delivery Model also plays a key role, particularly in North America, where Infosys earns nearly two-thirds of its revenue.

    What is the main business of Infosys?

    Infosys primarily offers IT services and consulting, specializing in digital transformation, software development, and technology solutions for businesses worldwide.

    Who are Infosys biggest clients?

    Infosys’ biggest clients include:

    1. Google
    2. Microsoft
    3. Bank of America
    4. Goldman Sachs
    5. Johnson & Johnson

  • Top 7 Best Revenue Models for Your Startup

    Every startup builds a business model that is viable and promises huge returns after a specific time frame. But for a business to sustain itself in this highly competitive ecosystem, earning revenue along with some investments is important. So, here are some of the revenue models for startups i.e. a channel through which a specific business earns to sustain and grow itself. The offerings could either be a B2B (Business to Business) or B2C (Business to Consumer).

    What is Revenue Model?
    Markup Revenue Model
    Commission Revenue Model
    Subscription Revenue Model
    Arbitrage Revenue Model
    Advertising Revenue Model
    Pay Per Use Revenue Model
    Licensing Revenue Model

    What is Revenue Model?

    A revenue model is a conceptual framework that determines and explains the revenue earning strategy of the business. A revenue model is a framework for generating financial income. It is the strategy of managing a company’s revenue streams and the resources required for each revenue stream. It includes the product or service of value, the revenue generation techniques, the revenue sources, and the target consumer of the product offered.

    Revenue Models For Startups

    Markup Revenue Model

    Normally followed by middlemen. In simple words, earning profits by selling goods at a price that is higher than its actual price, this margin includes all the profits, commission-based revenue model, and additional costs. They buy the product from the manufacturer, before selling it to the consumer. E-Tailers, retailers follow this type of revenue model.

    Commission Revenue Model

    Charging a fee or a commission for providing a platform, to connect a provider with a consumer. They charge a commission based on service or item being sold. The commission may be fixed or maybe a percentage of the selling price. This commission-based revenue model is highly popular in generating a revenue stream, especially for various internet companies. Aggregators like Ola, Payments wallets like Paytm work on this business model.

    Subscription Revenue Model

    Charging a periodic fee for a specific service. Most common for OTT (Over the top) platforms and SaaS (Software as a service) providers to generate revenue. The periodicity can be weekly, monthly, or yearly, based on the service and its provider. A subscription for basic access in addition to some extra charge contingent upon use. An essential telephone utility pays a pre-decided expense for a month to month use yet may have additional charges for extra administrations, for example, significant distance calls, registry administrations, and pay-per-call administrations.

    At the point when the essential help is offered for nothing out of pocket, this plan of action is frequently alluded to as freemium. This revenue model has a high recurring ratio i.e. a customer might come back to the platform if he likes the service and finds Return on Investment good enough. Netflix, Prime Video, Byju’s follow this revenue model.

    Subscription Revenue Model
    Subscription Revenue Model

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    Arbitrage Revenue Model

    This revenue model works on the price difference of the same product in different markets. Currencies, bonds, commodities are traded in different markets and the profit generated through the trading results in cash flow. This revenue model of a startup is usually a low risk one but might result in heavy losses if a currency gets delisted due to heavy inflation. The arbitrage online system is a publicizing procedure that includes purchasing traffic from a site that coordinates to your webpage and selling promoting space on your site. Utilizing this basic method the potential for cash making is boundless.

    Advertising Revenue Model

    Money is generated by providing a platform for companies or individuals to display their advertisements. Social media platforms earn through this business model. This revenue model is highly profitable if successfully implemented. A provider might charge an advertiser based on duration and area, if present in an offline channel or based on clicks and views in the case on online channels. Facebook, Instagram, and various magazines and newspapers follow this model for generating cash flow. This revenue model is easy to adopt if you have a greater regular audience and you can easily earn more money.

    Pay Per Use Revenue Model

    Platforms charges a user commission, every time he uses their service. Rates might differ as per the service being provided and the amount. Credit card companies follow this revenue model of a startup.

    Licensing Revenue Model

    Most inventors and owners of any intellectual property earn by providing a license for their invention. People who have patented their inventions follow this revenue model. The license amount is dependent on time, region, and volume. Software providers like Microsoft follow these types of business models for startups to generate a revenue stream. A licensing revenue model allows technology producers to monetize their new technology products by licensing them to other companies so that they may be integrated into an end-product.

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    FAQs

    What is a revenue model?

    A revenue model is a strategy for managing a company’s revenue streams and the resources required for each revenue stream. A business model is the structure comprised of all aspects of a company, including revenue streams for startups, and describes how they all work together.

    What are the types of Revenue Models?

    Types of Revenue Models are as below:

    • Markup Revenue Model
    • Comission Revenue Model
    • Subscription Revenue Model
    • Arbitrage Revenue Model
    • Advertising Revenue Model
    • Pay per Use Revenue Model
    • Licensing Revenue Model

    What is Commission Revenue Model?

    Charging a fee or a commission for providing a platform, to connect a provider with a consumer. They charge a commission based on service or item being sold. The commission may be fixed or maybe a percentage of the selling price. This commission-based revenue model is highly popular in generating a revenue stream, especially for various internet companies.

  • Business and Revenue Model of Canva

    In a world where every company, small or big, wants to stand out on their social media pages, they would need templates or appealing designs to make an impression. Whether you want to create a resume for your dream job or create a logo for your brand, we all know where to go. Canva is the one-stop solution to fix all your social media-related problems.

    In this article, we will read through the business model of one of the most widely used apps for designing, Canva.

    An Intro to Canva
    Areas of Operation
    Key Products and Services
    Target Audience of Canva
    Business Model of Canva
    Unique Selling Point of Canva
    How Does Canva Make Money?
    Conclusion

    An Intro to Canva

    Canva was founded in 2013 by Melanie Perkins, Cliff Obrecht, and Cameron Adams, with its headquarters in Sydney, Australia.

    Welcome to Canva

    Canva is a graphic design tool to help create social media presentations and graphics. The app or tool was designed with the intent to help non-designers or people who do not have the technical experience to create designs as UI/UX people do. With its simple and easy-to-use approach, Canva can be used by everyone, including students, teachers, or social media influencers. The app includes ready-made templates for users to use. Users can download Canva on iOS, Android, Windows, and MAC.

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    Areas of Operation

    Canva is available worldwide. It is a SaaS platform aimed at helping non-designers create digital and non-digital designs easily. As long as a person has a computer and smartphone, Canva can be easily accessed through a browser or directly by downloading the app. The company claims to be available in 190 countries and 100 languages.

    Canva, Homepage
    Canva, Homepage 

    Key Products and Services

    Within a span of 10 years, Canva has surely evolved as one of the leading design applications in today’s date. It offers a wide range of services both free and paid-based that includes exclusive services relating to every industry, such as media, newsroom, real estate, tech, fitness, education, startups, healthcare, sports, retail, franchises, and consumer packaged goods.

    Here’s a quick look at the below products and services offered by Canva:

    • Canva Pro: Under this segment of Canva Pro, individuals or companies need to subscribe for a certain amount to get access to unlimited features, animations, premium videos, content planner, and more, which are not available under its free platform.
    Try Canva Pro
    Try Canva Pro
    • Canva for Enterprise: This product by Canva is designed to help businesses or companies to create their own version of design templates. This includes features like content creation, brand management, team collaboration, branded team templates, workshops, and many more.
    • Canva for Education: Canva also offers a design platform for educational purposes. It allows teachers or students to create and personalize lesson plans, infographics, posters, videos, and more. Teachers can also create webinars, tutorials, etc.
    • Canva for Nonprofits: The company also offers exclusive templates for nonprofit activities under its segment Canva for Nonprofits. It has everything that a nonprofit organization can use to create powerful high-impact social media posts or graphics, presentations, websites, flyers, and signage.
    • Marketing: The app offers solutions for marketing agencies like logos, posters, flyers, brochures, social media, QR code generators, and more.
    Canva Helps in Designing the Logos, Flyers, Brochures
    Canva Helps in Designing the Logos, Flyers, Brochures
    • Print: Canva also lets its users print their creations. They can print their designs for business cards, t-shirts, mugs, invitations, hoodies, calendars, labels, and cards.
    Canva Offers to Print the Designs
    Canva Offers to Print the Designs 
    • Videos and Photos: Offers services for normal video editing, photo editing, photo collages, and YouTube video editor.
    Design Videos with Canva
    • Visual Documents: Canva offers solutions for visual documentation like presentations, docs, worksuite, PDF editor, whiteboards, and graphs and charts.
    Canva Offers Solutions for Visual Documents
    Canva Offers Solutions for Visual Documents

    Target Audience of Canva

    Canva was created for designing purposes that can be used by anyone. The company’s focus is on people who do not belong to a professional graphic background. Its target audience is basically anyone, from casual users to professional teams, from amateurs to experts in design both educational institutions and non-profit organizations.

    Business Model of Canva

    Canva runs on a distinctive SaaS business model. The company uses both free and subscription, or in other words, freemium version revenue models to market, and convert leads. Canva allows its users to either freely use its specific features or via subscription plans that offer additional elements.

    Canva’s platform is developed in a manner that offers all design solutions to its users in one place. There are numerous features of the platform, which include different templates for presentations, social media posts, resumes, brochures, invitations, certificates, newsletters, etc. Further, the app enables users to easily print and publish their designs on a variety of social media platforms.

    Unique Selling Point of Canva

    We already know Canva is for those who do not have any prior training in graphic design. It adds value by making it very simple for users to design and create. As a user, Canva grants access to a variety of special features that make designing straightforward and enjoyable.

    Some unique features of Canva are:

    • Thanks to the drag-and-drop user interface specialty of Canva, users can easily design and create anything without any hassle.
    • By offering pre-made and ready-to-use templates, posters, and other graphics, a user’s time is also saved on Canva.
    • The platform provides numerous features for each industry-specific need.

    Along with offering user-friendly features, Canva stands out as a top and reliable design software for many companies. It is trusted by popular companies like Salesforce, Hubspot, Sony Music, Reddit, and Skyscanner.

    How Does Canva Make Money?

    Canva makes money by offering all the above-mentioned products and services. Moreover, it has three main sources through which it generates revenue:

    • The Free plan: In its free pricing plan, users can use features like 250,000+ free templates, more than 1 million free photos, and 5GB of cloud storage. This type of plan is meant for those who want to use it for their personal needs.
    • Canva Pro: Under this, Canva offers some extra features along with basic features. This plan is meant for users who want professional use with features like brand kits, dedicated folders, custom branding, logo design, and collaboration tools.
    • Canva for Teams/Enterprise: Canva for Enterprise is designed for people who want to collaborate with their teams at a company. It has features like brand controls, dedicated folders for specific projects, the team reports and insights, and cloud storage of 1TB.

    Plan Price
    Canva Free $0
    Canva Pro $12.99/month for one person
    Canva for Teams $14.99/month for the first 5 people

    Besides the above-mentioned sources, Canva also has other sources through which it generates its income:

    • Canva Print: It has a printing service for its users who wish to print their designs. The company has teamed up with various printers that can help deliver the material printed. Canva bases its service fees on the product category, order volume, and delivery location. It offers free shipping, express delivery, and free in-store pickup from FedEx Offices or Staples (USA & Canada only). The company ships to more than 30 countries and charges according to the order.
    • Canva Design School: Just like a school, Canva also has a design school that offers thousands of courses on design, social media marketing, and branding. These courses are available both online and offline. The online courses are free, while the offline, in-person classes start from $5.
    • Canva Marketplace: Another way through which Canva makes money is through the marketplace. It allows users to purchase designs for one-time use on Canva. The price of these designs is available for $1. By purchasing these designs, designers can use the platform to list their innovations. For one purchase, Canva charges a 35% commission in exchange for giving these designers the platform.

    Conclusion

    By establishing a unique way of doing business, where it offers a very simplistic platform for people who can create the design in whichever way they desire, Canva has outshined since its inception. The company is at this stage of tremendous success right now, even if a small proportion of its users choose to purchase the paid plans, it can still easily cover its expenses.

    Today, the company enjoys over 100 million users and has over 2000 employees. By acquiring companies like Zeetings, Pixabay, Pexels, Kaleido.ai, and Smartmockups, Canva is bracing itself to be a dominant player in the graphic and software industry. In addition, Canva aims to compete with Google and Microsoft in the office software market with its websites and whiteboard products.

    FAQs

    What is the target audience of Canva?

    Canva’s target audience is basically anyone, from casual users to professional teams, from amateurs to experts in design both educational institutions and non-profit organizations.

    How does Canva make money?

    Canva has three main sources through which it generates revenue:

    • Canva Free
    • Canva Pro
    • Canva for Teams

    What are the key products and services offered by Canva?

    Here’s a list of products and services offered by Canva:

    • Canva Pro
    • Canva for Enterprise
    • Canva for Education
    • Canva for Non-profits
    • Marketing
    • Print
    • Videos and Photos
    • Visual Documents