StartupTalky

Tag: subscription model

  • Zomato Business Model & Revenue Breakdown: How Zomato Works and Makes Money

    Zomato is an Indian restaurant search, discovery, and online food delivery service. The food tech unicorn was founded by Deepinder Goyal and Pankaj Chaddah in 2008. Zomato is well known throughout the country and has also managed to venture into many international markets over the years. It currently operates in 10,000 cities in 24 countries, including the USA, India, Australia, Brazil, New Zealand, Singapore, the United States and in the Middle East Qatar.

    Today, Zomato focuses on online food ordering, restaurant reservations, loyalty programs, consultant services, and a lot more. Zomato is also a food search engine that works the same as Google’s search engine but explores a wide range of food and restaurants. The company has grown from a home project to one of the world’s largest food aggregators. Zomato not only connects people to food in every context but also works closely with restaurants to enable a sustainable ecosystem.

    With its unique and sustainable business and revenue model, as well as a well-defined organizational structure of Zomato, the company has managed to remain a top player in the market. Zomato has become successful because of factors such as affordability, easy accessibility, and assortment, which have built trust among people from the years of service. Zomato continues to work on finding innovative ways to serve its customers.

    Zomato – History

    Founders of Zomato - Deepinder Goyal and Pankaj Chaddah
    Founders of Zomato – Deepinder Goyal and Pankaj Chaddah

    Zomato, which was earlier known as Foodiebay, was established in July 2008 by two IIT graduates, Deepinder Goyal and Pankaj Chaddah. The idea first struck Deepinder when his colleagues consistently had a demand for paper menu leaflets from different restaurants to order food. That is when he thought of converting the restaurants’ paper menus to a digital app, which is far more accessible and easier to use.

    In a matter of 9 months, the company grew to become the largest restaurant directory in Delhi and later expanded to other cities due to its success. By 2012, Zomato had started expanding internationally to countries like the UK, South Africa, Qatar, Sri Lanka, South Africa, New Zealand, Brazil, etc. During this course, the company had to change its name since its last four letters of ‘Foodiebay’ coincided with ‘eBay’; the company name was changed to Zomato in 2010 to avoid any legal issues.

    In 2015, the company forayed into the food delivery business and went on to launch Gold in India, which was a subscription product under which subscribers would get access to complimentary food and drinks. Zomato also launched Hyperpure, which directly works with Farmers to improve the quality of food produce and supply fresh produce to restaurants. The company now views its business as a combination of three key large pillars: Delivery, Dining Out, and Sustainability.

    Deepinder Goyal: Zomato Founder’s Journey, Education, Age & Life Behind the Brand
    Deepinder Goyal is the Co-founder and CEO of Zomato. Discover the inspiring journey of Deepinder Goyal, founder of Zomato. Learn about his education, background, age, early life, and how he built one of India’s top food tech companies. Know more on Deepinder Goyal Wikipedia.
    StartupTalkyRishabh Rathi

    How Zomato Works: A Simple Guide for Customers & Restaurants

    How Zomato Works
    How Zomato Works
    1. Search Restaurants: Open the Zomato app or website, enter your location, and explore restaurants by cuisine, name, or deals nearby.
    2. Check Details: Click on a restaurant to see its menu, prices, photos, reviews, hours, and delivery information, all in one place.
    3. Place Your Order: Pick your favorite dishes, customize them to your liking, and add them to your cart.
    4. Make Payment: Pay easily via card, net banking, wallet, or even cash on delivery (if available).
    5. Track Delivery: Once the order’s confirmed, the restaurant prepares your food, and a Zomato delivery partner brings it right to your door. You can track the delivery in real-time.
    6. Leave a Review: After your meal, rate the restaurant and share your feedback to help others.

    Zomato also helps users discover new places and gives restaurant owners tools to manage their listings, menus, and reviews.

    Zomato – Business Model

    Zomato Business Model Canvas
    Zomato Business Model Canvas

    During the initial phase of the company, Zomato used to scan the menu of the restaurants and keep it on the site, and the menu was received by people. It still follows the same formula but has also added other services to its operation. The business model of Zomato is quite different from that of other food delivery such as Swiggy and Foodpanda. The key partners of Zomato are Uber and London & Partners, which could launch Zomato in the UK within the expected timeline. The business plan of Zomato focuses on expanding its food delivery network, enhancing customer experience, and generating revenue through restaurant partnerships, advertisements, and subscription services.

    While the company’s key resource is its large database of restaurants across 10,000 cities in 24 different countries, the business model is based on providing local restaurant search services, collecting data on food menu contacts, and providing relevant information to their customers. The main channels for Zomato are mobile applications and its website. The target audience of the company is the users who try to find local restaurants of various cuisines and restaurants who want their name to reach a large number of people. The Zomato working model is built around connecting customers with restaurants through online food ordering, delivery services, and real-time tracking.

    Zomato also caters to customers who prefer home delivery; it helps out database and market research of companies. At the same time, the online service is built with a mandatory rating mechanism. Zomato’s business model has revolutionized the food industry by incorporating various restaurants and making it convenient for people to find restaurants, provide feedback, and food business industries by incorporating various listings and availability according to their choice of cuisine.

    Zomato – Expansion & Impact

    • Zomato employs over 5,000 individuals, spanning diverse roles and compensation levels.
    • The monthly user base is 80 million users.
    • Zomato continually expands its platform, adding a new restaurant every 30 seconds.
    • Presence established in 24 countries.
    • Available in multiple languages, including Turkish, Portuguese, Indonesian, English, Hindi, and some regional Indian languages.

    Zomato – Revenue Model | How Zomato Earns Money

    Zomato Financial Snapshot
    Zomato Financial Snapshot

    Zomato Yearly Financials

    Particulars FY24 FY23
    Total Revenue 12,961 crore 7,760.9 Cr
    Revenue from operations INR 12,114 crore INR 7,079.4 crore
    Other income INR 847 crore INR 681.5 crore
    Profit/(Loss) before tax INR 291 crore (INR 1,014.6 crore)
    Tax expense (INR 60 crore) (INR 43.6 crore)
    Current tax INR 1 crore INR 0.4 crore
    Deferred tax (INR 61 crore) (INR 44 crore)
    Profit/(Loss) for the year Profit of INR 351 crore Loss of INR 917 crore

    Zomato, in itself, does not offer the products to customers, but the revenue model of Zomato is massive. Zomato is not just a food business; it is also in the advertising business. Zomato turnover has seen significant growth over the years, reflecting the company’s expanding presence in the online food delivery market. Zomato’s business has two parts: one is the delivery business, and two is the advertising business. Today, Zomato has multiple revenue streams besides online ordering, which most consumers would be familiar with. Zomato’s profit for the year 2024 was INR 351 crore.

    Zomato Expense Breakdown

    Zomato Expense Breakdown FY24 FY23
    Total Expenses INR 12,670 crore INR 8,775.3 crore
    Purchase of stock-in-trade INR 2,887 crore INR 1,438.2 crore
    Changes in inventories (INR 5 crore) (INR 43 crore)
    Employee benefit expense INR 1,659 crore INR 1,465 crore
    Finance costs INR 72 crore INR 48.7 crore
    Amortization & Depreciation INR 526 crore INR 436.9 crore
    Other expenses INR 7,531 crore INR 5,429.5 crore

    Zomato saw growth in FY24, with its operating revenue increasing by 70.8%, reaching INR 12,114 crore compared to INR 7,079.4 crore in FY23. The company also turned profitable, posting a profit of INR 351 crore in FY24, compared to a loss of INR 917 crore in FY23. However, total expenses increased by 44.4% to INR 12,670 crore in FY24, up from INR 8,775.3 crore in FY23.

    Restaurant Listings and Advertising

    Zomato first started as a restaurant search and rating service. This brought in the advertising revenues from restaurants who joined the platform. They further extended this feature to food delivery and restaurant reservations; for this, Zomato charges commissions from restaurants that want to be placed on the feed. Advertising is Zomato’s major source of revenue. The restaurants can promote their banner on the site in order to get better visibility and appeal to a large section of the audience via Zomato.

    Food Delivery

    Zomato Revenue Model - Food Delivery
    Zomato Revenue Model – Food Delivery

    Through the food delivery business, Zomato charges a commission to the restaurants based on orders. The company earns through restaurants that pay a commission for each delivery, which is then split among the delivery partners and the company. Zomato imposes a commission ranging from 20% to 25% on each order made at a specific restaurant, with potential variations in commission rates from 5% to 7% in certain regions. However, online food delivery only contributes a low percentage of income compared to other revenue streams because of the huge competition and the need to provide deep discounts.

    Subscription Programs

    The next major source of revenue for Zomato is a subscription fee. Restaurants pay a certain fee monthly; in return, Zomato offers them the analytical tools. Zomato has a huge number of databases that know what a customer wants to eat, where he/she wants to eat, and what the consumers are searching for, and it is given to restaurants, which helps them know about all this information through the cookies. It has a tool called Zomato Order which is given to restaurants, which tells them about consumers’ interests. The restaurants then use this tool to flash their discount offers on food.

    Live Events

    Zomato Revenue Model - Zomaland
    Zomato Revenue Model – Zomaland

    Zomato has forayed into the events space by partnering with restaurants and creating limited events. By which they made a sale through the price of the tickets. Zomato recently introduced Zomaland and entered the live event market in 2019. Zomato charges users an entry fee to attend Zomaland, where, besides food, they can witness live musical performances and other acts. Zomato also organized an entertainment carnival in 2018 in Delhi, Pune and Bengaluru, where more than 100 thousand people showed up.

    White Label Access

    The next source of revenue is app development. Zomato launched a service called Zomato Whitelabel, under which they give offers to restaurants to develop customized food delivery apps. It also works with cloud kitchens and restaurants for consultancy services. Zomato works with selected restaurant operators to help in identifying locations for expansions at a minimal fixed cost but with increased options for the user. It provides the requisite licenses and operational enablement for such restaurant partners.

    List of All the Acquisitions and Subsidiaries of Zomato
    Zomato is one of the most popular delivery apps in India that is ruling the food delivery industry. Check out the list of subsidiaries and acquisitions of Zomato. Learn about Zomato’s all businesses and see how it is diversifying beyond food delivery.
    StartupTalkyDamini Bhandary

    Data Insights

    Zomato studies how people use its app and how restaurants perform. It shares this information with restaurants and others in the food business. This helps restaurants improve their menu, prices, and promotions. Zomato also uses the data to make its app better. It earns money by charging a fee for sharing this data.

    Zomato Kitchens

    Zomato also provides kitchen infrastructure services to select restaurant operators; it works with entrepreneurs to set up and operate Zomato kitchens under various other labels. This helps entrepreneurs fund restaurants in the right location with an investment of INR 35 lakhs. It also claims to offer returns in the range of INR 2 lakh to INR 4 lakh per month to investors and has so far completed more than 180 affiliated kitchens.

    Zomato Gold

    Zomato Revenue Model - Zomato Gold
    Zomato Revenue Model – Zomato Gold

    Zomato Gold is a premium subscription service offered by Zomato, providing members with exclusive dining benefits. Subscribers enjoy complimentary dishes or drinks at partner restaurants, making dining out a more rewarding experience. The service aims to enhance the dining lifestyle by offering special privileges and discounts at a wide range of top-rated eateries. Zomato Gold caters to food enthusiasts seeking unique culinary experiences while enjoying cost-effective perks. It has become a popular choice for those who appreciate both quality dining and savings.

    The Zomato Story: Founders | History | Success Story | Growth | Funding
    Zomato is a reputed Indian food-tech company led by Deepinder Goyal. Here’s the story of Zomato’s growth, which covers its startup story, history, founders, ESOPs, revenue, funding, investors, and more! Explore the growth of Zomato’s startup story here.
    StartupTalkyRishabh Rathi

    Zomato – Value Proposition

    Revenue Breakdown of Zomato
    Revenue Breakdown of Zomato

    Zomato Revenue Breakdown

    Zomato Revenue Streams FY22 FY23
    Food Order & Delivery INR 3414 crore INR 4533 crore
    HyperPure Supplies B2B INR 537 crore INR 1506 crore
    Others INR 241 crore INR 234 crore
    Blinkit – INR 806 crore

    The total revenue generated by Zomato in FY 22 was INR 4192 crore whereas its turnover in FY 2023 was INR 7079 crore.

    The business model of Zomato offers a variety of value to its customers, while Zomato’s revenue model focus has been on creating something new and extra that the customers cannot get anywhere else. Zomato is a one-stop shop for dinners and offers a way for restaurants to differentiate themselves. Restaurants have an option to create differentiation by keeping the listing updated, responding to criticism positively, and also by being accountable for their action.

    Marketing Strategy of Zomato | What makes Zomato Unique
    Zomato is a popular name in the food delivery service. But what made the brand famous? The marketing strategy of Zomato is a mixed marketing strategy that has successfully kept the traffic coming, thereby driving sales. Here’s a look at Zomato marketing strategies.
    StartupTalkyAnik Banerjee

    Conclusion

    Zomato’s business plan believes in creating value for its customers to sustain its business operations. The company endeavors to bridge the gap between customers and restaurants by providing efficient technology applications, which, as outlined in the business plan, has played a crucial role in reducing delivery times and enhancing overall service quality. Zomato business plan focuses on food delivery, restaurant listings, and data insights to create a profitable and scalable model in the food tech industry.

    FAQs

    What is Zomato?

    Zomato is an online platform that offers food delivery and helps users discover restaurants with various dining options available.

    What is Zomato Business Model?

    Business model of Zomato is a commission-based model, charging restaurants a percentage fee for orders through its platform. Revenue is generated via subscription services, including Zomato Gold, which grants exclusive dining benefits.

    How Zomato works?

    Zomato connects users with restaurants by allowing them to browse menus, read reviews, and order food for delivery or pickup. It also offers table reservations and subscription services like Zomato Pro for discounts. Restaurants can list their services and manage orders through the platform.

    What is the revenue of Zomato?

    Zomato’s revenue is ₹12,961 crore (2024).

    How to contact Zomato for business?

    You can contact Zomato through email to start a business with them.

    What is Zomato for business apps?

    The Zomato for Business app is for business owners. It is an interface with powerful features to get the most out of your Zomato listing.

    Zomato operates in how many countries?

    Zomato operates in 10,000 cities in 24 countries, including the USA, India, Australia, Brazil, New Zealand, Singapore, the United States, and in the Middle East Qatar.

    What is Zomato revenue model?

    Zomato’s revenue model is based on several key sources. It earns a commission from restaurants for each food delivery order placed through its platform. Additionally, Zomato generates income from advertising by allowing restaurants to pay for premium listings and visibility. The subscription service Zomato Pro brings in revenue from users who access discounts and exclusive deals. Zomato also makes money through Hyperpure, which supplies quality ingredients to restaurants. These revenue streams help Zomato sustain and grow its business.

    What are Zomato products and services?

    Products and services offered by zomato include food delivery, restaurant discovery, and table reservations. It allows users to explore local dining options, read reviews, and place orders online. Zomato Pro offers members discounts at partner restaurants, while Hyperpure supplies fresh ingredients to restaurants. These services help Zomato connect customers with restaurants and enhance the dining experience.

  • The Success Story of NoBroker: Creating a Dalal-Free Real Estate Ecosystem in India!

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

    Anything that has to do with real estate, specifically as a purchaser has always been convoluted and annoying. The constant push from the sellers, nagging from the middlemen, lack of fluid communication, and running helter-skelter to get the paperwork done are some of the common horrors in the world of real estate. Was it meant to be this way?

    Yes, many of us have pondered on the scene on several occasions but without any outcome. Akhil Gupta, Amit Agarwal, and Saurabh Garg also thought of improving this gloomy scenario and found a solution in the form of NoBroker. Founded in 2014, NoBroker is a Bangalore-based startup in the real estate search domain, that connects flat and property owners with tenants and buyers directly through their platform, thereby making buying, selling, and renting properties simpler, transparent, and affordable.

    NoBroker claims to handle around $2 billion worth of transactions on its platform each year and saves INR 130 crores of brokerage monthly. The platform helped Indian real estate customers save around INR 1,100 crores worth of brokerage in 2020. The company further strives to help the Indians usher in a new era of smooth and easy real estate transactions minus the “brokers.” The startup became a unicorn on November 23, 2021.

    StartupTalky interviewed Mr. Saurabh Garg, Co-Founder & CBO of NoBroker to get insights on the Startup Journey and the Growth Story of NoBroker. Read on to learn about NoBroker company, its owner, business model, revenue model, competitors, founders, revenue, funding & more.

    NoBroker Company Details

    Startup Name NoBroker
    Headquarters Bangalore
    Founders Amit Kumar Agarwal, Saurabh Garg, Akhil Gupta
    Founded 2014
    Sector Proptech, Real Estate
    Total Funding $430.9 million (March 2023)
    Website nobroker.in
    Registered Entity Name NoBroker Technologies Solutions Private Limited

    About NoBroker
    NoBroker – Real Estate Industry Details
    NoBroker – Founders and Team
    NoBroker – History and Startup Story
    NoBroker – Products and Services
    NoBroker – Name and Logo
    NoBroker – Business Model and Revenue Model
    NoBroker – Startup Challenges Faced
    NoBroker – Funding and Investors
    NoBroker – Shareholding
    NoBroker – Growth and Revenue
    NoBroker – Financials
    NoBroker – ESOP
    NoBroker – Acquisitions
    NoBroker – Competitors
    NoBroker – Awards and Recognition
    NoBroker – Future Plans

    About NoBroker

    NoBroker is a disruptive force in the real estate sector that uses innovative technologies to connect property owners, buyers, and renters with the help of a single platform.

    Here’s what NoBroker has to say about their mission:

    Our mission is to lead India’s real estate industry towards an era of doing real estate transactions in a convenient and brokerage-free manner.

    NoBroker – Real Estate Industry Details

    India’s real estate market was worth $477 billion in 2022. It is projected to grow to $1 trillion by 2030 and $5.17 trillion by 2047. Furthermore, the market size of the real estate sector in India, which was estimated to be around US$ 120 billion in 2017, will be expected to grow to US$ 1 trillion by 2030 and will contribute nearly 13% to the country’s GDP by 2025.

    In FY23, India’s residential real estate market experienced unprecedented growth, with home sales reaching a record high of INR 3.47 lakh crore ($42 billion), marking a substantial 48% year-on-year increase. This surge underscores the sector’s potential, with forecasts suggesting its contribution to India’s GDP could rise to 15.5% by 2047, expanding the real estate sector to a projected $5.8 trillion.

    Besides, Indian firms are also expected to raise more than $48 billion with the help of infrastructure and real estate investment trusts in 2022 when compared to raised funds, which are worth $29 billion to date, according to ICRA.

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    NoBroker – Founders and Team

    (L-R) Amit Kumar Agarwal, Akhil Gupta, Saurabh Garg - NoBroker Founders
    (L-R) Amit Kumar Agarwal, Akhil Gupta, Saurabh Garg – NoBroker Founders

    NoBroker company was founded by Amit Kumar Agarwal, Akhil Gupta, and Saurabh Garg.

    “I first met Akhil when we were studying at IIT Bombay and Amit at IIM Ahmedabad. Convincing them was not tough, as we all had our fair share of hassle when looking for properties” says Saurabh Garg, Co-founder & CBO, NoBroker.

    • Amit Kumar Agarwal: Co-founder and CEO of NoBroker
    • Akhil Gupta: Co-founder, Chief Tech and Product Officer of NoBroker
    • Saurabh Garg: Co-founder and CBO of NoBroker

    NoBroker company currently operates with a team of 1000+ highly motivated individuals consistently working to offer better services to over 30 million registered users across Bangalore, Mumbai, Pune, Chennai, Hyderabad, and Delhi-NCR.

    Amit Kumar Agarwal: Co-founder & CEO, NoBroker

    Amit Agarwal is a banking and finance veteran, with over 15 years of experience in the banking and finance sector in management consulting and strategy. He had previously worked with leading global entities like PricewaterhouseCoopers, where he collaborated with numerous renowned Indian and foreign banks. Besides, he also garnered considerable experience of working with the top CXOs on several critical aspects, including the formulation of business strategy and the enhancement of on-ground profitability. He also displays a successful track record of guiding entry and portfolio strategy along with large-scale policy implementation and has won several industry accolades for his accomplishments.

    In his role as the CEO of NoBroker.in, Amit spearheads the organization’s overall vision and direction and is responsible for defining and gilding its corporate strategies. Amit is an alumnus of the Indian Institute of Technology, Kanpur, and IIM, Ahmedabad.

    Akhil Gupta: Co-founder & CTO, NoBroker

    Akhil is the Co-founder and Chief Tech and Product Officer of NoBroker and has been instrumental in building the foundation for NoBroker’s spectacular growth. Akhil holds a dual degree (B.Tech & M.Tech) from the Indian Institute of Technology, Bombay.

    He leads the entire tech vertical of the company and is responsible for building, scaling, and managing teams along with overseeing the business growth of NoBroker to promise a heightened customer experience. His commitment to efficiency and finding disruptive solutions to the most crucial business challenges has helped NoBroker offer some ground-breaking features like the AMP/PWA, and WhatsApp chat feature, along with the use of AI and ML to provide rent prediction and recommendations. These were some of the firsts in its league. Many of the products built at NoBroker serve as successful case studies at Google and Facebook.

    Furthermore, Akhil also monitors the products of the company and is continuously engaged in making necessary amendments and improvements to them. Akhil had over a decade’s worth of experience before setting forth with NoBroker. He had previously worked with Oracle, where he had led several products in Siebel, Oracle Ebiz, and Oracle Sales Cloud, and was also responsible for filing a couple of patents for the same. He is currently associated with the world’s largest customer-to-customer real estate portal and is anticipating massive growth in the upcoming years.

    Saurabh Garg: Co-founder & CBO, NoBroker

    Saurabh Garg was also a student of IIT Bombay and IIM Ahmedabad and as soon as he finished his studies, he set out with Hindustan Unilever Limited as a fresh graduate. Saurabh worked for the Sales and Marketing team of HUL and left the company after 3 years. Next, he founded Four Fountains De-Stress Spa, which was his first entrepreneurial leap. Saurabh is still serving as the Co-founder and Director of the Four Fountains Spa, which he founded back in May 2007.

    His experience with Hindustan Unilever and as an entrepreneur helped him gain considerable experience. This has further benefitted him in his role as the Chief Business Officer at NoBroker.in. Saurabh’s role in the revolutionary real-estate platform is mainly to pursue strategic alliances with real estate developers and corporates to bring high-quality supply and demand at a low cost, thereby expanding the revenue stream. Saurabh contributed largely to building the marketing team from scratch and empowered them to take on new challenges and try new and disruptive solutions without fearing failure. This freedom to experiment is one of the reasons why NoBroker.in has achieved over 1 million app downloads within the first 3 years with surprisingly less marketing costs. The platform also has the lowest customer acquisition costs in the competitive Indian real estate sector.

    Amid mounting social media criticism from dissatisfied customers, Saurabh Garg stated that the company is actively addressing concerns and harnessing artificial intelligence to resolve issues efficiently.

    NoBroker – History and Startup Story

    Reminiscing the startup journey of NoBroker.in, Saurabh Garg (Co-founder & CBO of NoBroker) says:

    “We established NoBroker.in when we realized that the real estate search and discovery process was fragmented, opaque, inefficient, and full of hassles for the customer. The idea first germinated after the awful experiences that we personally had with brokers while looking for a property. All the other online platforms are also marketing platforms for brokers and it is very difficult to contact the owner/seller directly. This dependence on the broker made the experience horrible for the customer. Brokers subject customers to biases, pressures, and manipulations”

    He continued –

    “Through NoBroker.in, we wanted to empower Indian home-seekers to find a home of their choice in a hassle free manner without paying a hefty brokerage. We did not have a prototype or a model to copy from as this was a solution built for a problem unique to Indian real estate. Brokerage has been an accepted norm for generations and therefore, penetrating the market with as disruptive a solution was not easy. The idea was simple yet bold but we knew that there was a huge scope for it. We launched the website in March 2014. Once the customer understood the unique proposition, there was no turning back for us”.

    NoBroker – Products and Services

    NoBroker.in addresses the gap of information asymmetry that the Indian homebuyers face in its real estate market. Its disruptive solution connects property seekers with property owners, a process that earlier used to cost as much as 1-2 months of rent or 4% of the transaction amount as brokerage. The platform also provides personalized recommendations and assists with decision-making based on real-time data.

    “We are the only platform in the C2C space that directly connects tenants and buyers with owners and sellers” Saurabh mentioned.

    The platform offers end-to-end one-stop solutions for property seekers including services such as rental agreements, movers & packers services, home loans, interiors, special packages for NRIs, relocation services for corporates, remote property management services, etc. It also facilitates online rent payment via credit cards, debit cards, net banking, and UPI wallets.

    NoBroker also promises to be a one-stop-shop for processing the paperwork and documentation, associated with the lease agreement registration, bank franking, police verification, and society approvals.

    NoBroker Home Services – Along with serving as an excellent solution for home buyers and renters, NoBroker also extends a list of useful services for homes, which are:

    • Painting services
    • Cleaning services
    • Home sanitization services
    • AC repair services
    • Pest control services
    • Carpentry services
    • Plumbing services

    NoBroker Furniture – NoBroker also offers a wide range of furniture to buy/rent and ease the process online. It helps in installing and free relocation of furniture, swapping old ones with new ones, and maintaining them.

    The platform’s visitor and community management super app- NoBrokerHood is currently optimizing society living across 11,000 societies in Bangalore, Mumbai, Pune, Hyderabad, Chennai, Delhi-NCR, Kolkata, Ahmedabad, Nagpur, Jaipur, and Kochi.

    CallZen

    CallZen, a platform for conversational AI, has been introduced by NoBroker on October 12, 2023. The Bengaluru-based company has already ventured into other verticals, such as apartment management software, home services, and beauty, so this is an entirely new business line for NoBroker.

    “The name had to be simple, self-explanatory and direct. So, when I saw that name NoBroker.in is available I booked it immediately back in 2007” says Saurabh.

    NoBroker Logo
    NoBroker Logo

    NoBroker – Business Model and Revenue Model

    The business model of NoBroker acts as a digital peer-to-peer platform that allows homeowners/sellers and prospective tenants/buyers to connect directly without the involvement of a broker. It provides a subscription business model to customers who are looking to buy, sell, or rent a property.

    NoBroker has 3 revenue models:

    • Freemium model for tenants
    • Freedom plan
    • Relax plan
    • MoneyBack plan

    Apart from that, NoBroker also offers an array of home services like packers and movers, home cleaning, home painting, interiors, and a lot more. These are also among the notable sources of revenue for NoBroker.

    NoBroker Business Model: How NoBroker Makes Money?
    Discover how NoBroker makes money with its innovative business model focused on eliminating brokerage fees in real estate transactions.
    StartupTalkyNitin Konde

    NoBroker – Startup Challenges Faced

    Real estate is a huge sector and a vastly unorganized one. For generations, it had relied on traditional processes, which involved a third party. The history of brokerage services can also be traced down to the earliest establishments of real estate. The team, therefore, focused on the most fundamental challenge faced by real estate customers: the service they were receiving was not commensurate with what the customer paid for it.

    As there was information asymmetry, people had no option but to rely on broker services. Real estate platforms have been around for decades and have tried to solve the issue of information asymmetry. However, they couldn’t keep brokers away from the system. This led brokers to exploit the system to their benefit.

    “When I – along with my Co-founders Amit and Akhil – formed NoBroker.in, we were determined to use technology to address the gaps in the property discovery creating a platform that was 100% brokerage free” Saurabh added.

    Their approach differed from the other online real estate platforms in that they were essentially tying up with property brokers and getting them to list properties on their platforms. On the other hand, the team connected owners with sellers and tenants with buyers directly. Because of this approach, NoBroker’s value proposition found a favorable reception from the customers. NoBroker has the highest number of owner-listed properties.

    It bootstrapped for quite a few months. Getting investors to believe in its proposition was a challenge because the team did not have an existing successful model to convince them to back it.

    “But we were sure of our resolve and our solution, and the needle moved when we raised our first $20 million”, Saurabh exclaims proudly.

    The pandemic ironically offered a shot in the arm as people could not use offline services and relied heavily on online platforms to search and finalize a house. One way or the other, the value-conscious Indian customer has realized and appreciated NoBroker’s unique proposition and helped it grow.

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    StartupTalkyVidhi Punamiya

    NoBroker – Funding and Investors

    NoBroker has raised a total funding of $430.9 million to date. The company raised INR 400M from its Series-E funding led by Google, dated March 1, 2023. This has shot the valuation of the startup to over a billion dollars, thereby making it India’s first proptech (property tech) unicorn startup and the 38th Indian startup to be a unicorn in 2021.

    It also raised $210 mn from its Series E funding led by General Atlantic and Tiger Global Management, dated November 23, 2021, where the US-based Moore Strategic Ventures also joined later on.

    Paytm’s Vijay Shekhar Sharma and Anand Chandrashekharan, ex-Facebook are among the angel investors in the company. Google, Tiger Global, General Atlantic, and BEENEXT are some of the popular investors fueling the brand.

    With the successful completion of the upcoming round, the company is estimated to be valued at over $1 billion. However, the startup managed to raise more than that and eventually emerged as a unicorn.

    The Funding and Investors’ details of NoBroker are as follows –

    Date Amount Stage Investors
    March 1, 2023 INR 400 million Series E Google
    November 23, 2021 INR 15.8 billion Series E General Atlantic, Tiger Global Management
    April 16, 2020 $30 million Series D General Atlantic
    November 5, 2019 $10 million Venture Round General Atlantic
    October 1, 2019 $50 million Series D Tiger Global
    September 11, 2019 $51 million Venture Round Tiger Global Management
    June 5, 2019 $51 million Series C General Atlantic
    June 4, 2019 $2.5 million Debt Financing Trifecta Capital Advisors
    December 19, 2016 $7 million Series B KTB Ventures
    February 24, 2016 $10 million Series B BEENEXT
    February 23, 2015 $3 million Series A Fulcrum Ventures India, SAIF Partners
    March 1, 2014 – Angel Round –

    NoBroker – Shareholding

    NoBroker’s shareholding pattern as of July 2024, sourced from Tracxn:

    NoBroker Shareholders Percentage
    Amit Kumar Agarwal 6.8%
    Akhil Gupta 6.8%
    Saurabh Garg 5.3%
    General Atlantic 31.1%
    Tiger Global Management 13.9%
    Elevation Capital 16.3%
    Moore Ventures 4.6%
    Beenext 4.4%
    Beenos 1.4%
    DG Incubation 1.3%
    VD Investments 0.9%
    KTB Ventures 1.6%
    Rocketship 0.5%
    Qualgro 0.4%
    Youngmonk Trust –
    Fulcrum PE –
    DST Global –
    Trifecta Capital –
    Google 0.5%
    Angel 1.2%
    ESOP Pool 3.0%
    Total 100.0%
    NoBroker Shareholding
    NoBroker Shareholding

    NoBroker – Financials

    NoBroker has shown significant revenue growth over the years, but expenses have also increased, leading to continued losses. Below is a detailed financial breakdown from FY24 to FY20.

    Particulars FY24 FY23
    Revenue INR 803 crore INR 609 crore
    Expenses INR 1299 crore INR 1190 crore
    Profit/Loss INR -411 crore INR -506 crore
    NoBroker Financials
    NoBroker Financials

    NoBroker EBITDA

    NoBroker Financials FY24 FY23
    EBITDA Margin -66.55% -42.5%
    Expense/INR of op Revenue INR 1.62 INR 1.95
    ROCE -37.12% -34.12%

    NoBroker – ESOP

    NoBroker announced the completion of its employee buyback worth INR 32.2 crore in a report dated March 15, 2022. The buyback program of the proptech unicorn promises to allow 95 former and current employees of the company to liquidate their stock options, which make up for 57% of total employees with ESOPs.

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    NoBroker – Acquisitions

    NoBrokerHood acquired Society Connect on February 11, 2020, to integrate the financial module with its services on one single platform and make society’s living easy and hassle-free.

    NoBroker – Competitors

    “As mentioned above, what differentiates us from other online real estate platforms is that ours is the only platform that is 100% brokerage free. We are not just enabling property discovery. We are a transaction platform and provide end to end solution. In that sense, we don’t have competition” says Saurabh.

    YourOwnROOM Success Story – Rental & Property Management Startup
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    NoBroker – Awards and Recognition

    NoBroker.in is a market leader in customer-to-customer real estate transactions and leading third-party endorsements have recognized the same,

    • NoBroker.in was part of the elite ‘Champions of Change’ with the Prime Minister of India organized by the NITI Aayog.
    • NoBroker.in has been recognized as the “Coolest Startup” by the India Today Group.
    • The company was distinguished as the most promising startup for 2017, a recognition that it received from the Govt. of Gujarat.
    • NoBroker was also recognized by Forbes Japan as one of the 20 hot startups in India.
    • NoBroker was listed as one of the top 100 startups (36 on readers rating) with gravity-defying momentum to look up to in 2017 by YourStory.
    • NoBroker bagged the Digital Marketer of the Year award by IAMAI in 2018.
    • Most recently, the company received an award at the Emerging Awards by Tracxn where it was declared as one of the topmost companies in Real Estate Tech from across the globe.
    • NoBroker won for Disintermediation of Real Estate Transactions in the category of Innovation in Real Estate at the 14th AGBA in April 2024.

    h

    NoBroker – Future Plans

    NoBroker plans to expand its presence significantly in the Indian real estate market. They aim to reach 50 cities within the next three years, moving from their current base of 6 cities. This expansion is driven by strong demand and a focus on improving services through technology. NoBroker is actively pursuing AI-driven B2B services to increase profitability and eventually consider an IPO. 

    FAQs

    Who are the Founders of NoBroker?

    NoBroker was founded by Amit Kumar Agarwal, Akhil Gupta, and Saurabh Garg.

    What is NoBroker?

    NoBroker is a Bangalore-based real estate search portal, which helps connect flat owners with tenants/buyers directly and makes the buying-selling of real estate simpler. NoBroker removes the need for brokers in real estate-related dealings.

    When was NoBroker founded?

    NoBroker was founded in 2014.

    What is NoBroker net worth?

    NoBroker net worth as of March 2023 is $954 million.

    How does NoBroker make money? What is NoBroker revenue model?

    Around 70% of NoBroker’s revenue comes from the subscription plans it offers on various packages. Advertisements from furniture start-ups also contribute significantly as NoBroker claims over 2.5 million users visit its website per month. NoBroker also earns revenue by offering services, such as connecting tenants with movers and packers, drafting rental agreements, and extending a wide range of home services.

    What is NoBroker business model?

    NoBroker follows a freemium model, offering broker-free real estate transactions. It earns revenue through subscription plans, advertising, home services, and financial products like rent payments and home loans. Its AI-driven platform connects buyers, sellers, tenants, and landlords directly, eliminating middlemen.

    How NoBroker works?

    NoBroker is a broker-free real estate platform that connects property owners with buyers or tenants directly. It uses AI-powered matching to suggest suitable listings and allows users to communicate without middlemen. The platform also offers value-added services like home loans, rent payments, legal help, and movers. It follows a freemium model, earning from subscriptions, ads, and services, while keeping basic property listings free.

  • Age of Learning – Creative and Technologically Advanced Learning Platform

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Age of Learning.

    Education has become crucial more than ever. Proper education helps children develop critical skills, including mental agility, decision-making, and logical thinking.

    With the advancement in technology, the world is moving to digital learning. Now students can access digital learning materials and interact with tutors and peers online while enjoying flexible, engaging, and creative courses. Edtech platforms provide more personalized and self-directed learning through exciting activities, games, materials, and programs.

    Age of Learning is an edtech company that provides a comprehensive and engaging online education curriculum for pre-k, kindergarten, elementary, and middle school programs. Read further to know more details.

    Age of Learning – Company Highlights

    Company Name Age of Learning
    Headquarters Glendale, California, United States
    Primary Industry Edtech
    Founder Doug Dohring
    Founded In 2007
    Website Ageoflearning.com

    Age of Learning – About
    Age of Learning – Industry
    Age of Learning – Founders & Team
    Age of Learning – Startup Story
    Age of Learning – Mission & Vision
    Age of Learning – Revenue Model
    Age of Learning – Products and Services
    Age of Learning – Challenges Faced
    Age of Learning – Funding and Investors
    Age of Learning – Mergers and Acquisitions
    Age of Learning – Patents and Trademark
    Age of Learning – Growth
    Age of Learning – Partners
    Age of Learning – Awards and Achievements
    Age of Learning – Competitors

    Age of Learning – About

    Age of Learning is the leading technology provider that blends education’s best practices, advanced technology, and insightful creativity to provide compelling educational experiences to children across numerous countries.

    An extensive team of education experts develops the company’s research-based digital education programs and content that have proven efficacy in elevating kids’ learning gains. The company has helped educate over 50 million children across the United States and other countries.

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    Age of Learning – Industry

    Age of Learning is one of the most renowned California-based companies in the edtech industry. The term edtech is short for ‘education technology’ and constitutes using computers, technology, computer programs, and educational systems to provide education and learning to students and workers.

    The Edtech industry is home to the companies involved in creating digital platforms and content for delivering the best education curriculum and learning to people. In 2022, the global edtech market was valued at $123.4 billion and is projected to grow at a CAGR of 13.6% from 2023-2030.

    Apart from the Age of Learning, BYJU’S, Coursera, Instructure, and Knewton are the top companies in the edtech industry.

    Age of Learning – Founders & Team

    Doug Dohring - Founder, Age of Learning
    Doug Dohring – Founder, Age of Learning

    Doug Dohring is the founder of the company. He is a California-based entrepreneur who led multiple companies to success during the past three decades. Before founding Age of Learning, Doug founded NeoPets, Inc., in 2010. Additionally, he founded The Dohring Company in 1986.

    The talented team of Age of Learning includes more than 500 employees, ranging from nationally-renowned educators, curriculum experts, animators, designers, and engineers.

    Age of Learning – Startup Story

    Age of Learning was set up in 2007 by Doug Dohring and is presently led by CEO Paul Candland. Its first flagship product, ABCmouse.com Early Learning Academy, was launched in 2010. Over 30 million kids use it by completing more than 6.8 billion learning activities.

    What Is ABCmouse.com?

    The company collaborated with the National Opinion Research Center at the University of Chicago in 2015. The main goal behind this collaboration was to develop a series of web-based assessments.

    In 2019, the company launched Adventure Academy- the first massively multiplayer online (MMO) game and app, helping children to learn. It launched The Age of Learning Foundation, a charitable organization to provide the company’s digital learning products free of cost to kids worldwide.

    Furthermore, it launched My Math Academy in 2021, a personalized, adaptive digital learning system driven through AI technology.

    Age of Learning – Mission and Vision

    The company’s mission is to help children worldwide build a strong foundation for academic success and a lifelong love for learning. Moreover, its primary goal is to create a world of opportunity for kids worldwide through education, both today and in the future.

    Age of Learning – Revenue Model

    The company works on a subscription-based revenue model. It implies that Age of Learning’s primary source of revenue is the fee paid by the users to subscribe and access its educational website and mobile applications.

    Age of Learning – Products and Services

    Age of learning’s expanding portfolio of educational products comprises ABCmouse English, Adventure Academy, and the personalized and adaptive learning programs- My Math Academy and My Reading Academy.

    Age of Learning – Challenges Faced

    In September 2020, Age of Learning settled a Federal Trade Commission complaint alleging that it was involved in deceptive marketing and billing practices. The complaint was focused on the 2015-2018 period; during this time, tens of thousands of consumers were affected, constituting 2% of ABCmouse subscribers. Although it didn’t admit the guilt, it agreed to pay $10 million to settle charges and avoid a prolonged dispute.

    Age of Learning – Funding and Investors

    Age of Learning has undertaken 5 funding rounds in which it has raised a total of $531.5 million. Its latest funding round – Series C Round, was conducted on June 29, 2021, and raised a total of $300 million. 5 investors fund the company, and the main ones are Tecent, Qatar Investment Authority, and TPG.

    Date Round Number of Investors Money Raised Lead Investor
    June 29, 2021 Series C 4 $300 million TPG
    August 15, 2020 Series B 1 $50 million Tecent
    May 3, 2016 Series A 1 $150 million ICONIQ Capital
    January 12, 2018 Venture Round 1 – The Rise Fund
    April 12, 2012 Debt Financing – $16.5 million –
    June 17, 2011 Debt Financing – $15 million PayPal Ventures

    Age of Learning – Mergers and Acquisitions

    Age of Learning and Rakuten came together to establish a Joint Venture.

    Age of Learning – Patents and Trademark

    Age of Learning has obtained multiple patents, including the original patent for a vertically integrated educational system. Currently, it has 21 registered trademarks categorized into the ‘Education and Entertainment’ class.

    Age of Learning – Growth

    The current valuation of the company stands at $3 billion. Moreover, its monthly website visit growth rate is reported to be 41.82%. Age of Learning has over 651,000 monthly app downloads, with ABCmouse and Adventure Academy the most popular ones.

    Age of Learning – Partners

    Age of Learning has partnered with:

    • White House
    • The Boys & Girls Clubs of America
    • The U.S. Department of Housing and Development
    • The Campaign for Grade-Level Reading
    • Digital Promise
    • Teletica
    • Boston Children’s Hospital

    Age of Learning – Awards and Achievements

    The company is proudly recognized for the excellence of its products and received several national awards for education, parenting, and media organizations. Some of the awards it garnered are:

    • 2020 American Business Awards – Gold Stevie Winner for Adventure Academy in the Kids & Family Category
    • 2020 American Business Awards – Gold Stevie Winner for Adventure Academy in the Education: Game-based Curriculum Solution Category
    • 2020 Tech Advocate Awards – Winner for Adventure Academy in the Best Gamification App Category
    • 2020 NAPPA Award for ABCmouse
    • 2020 NAPPA Award for Adventure Academy

    Age of Learning – Competitors

    Age of Learning has ranked 3rd among its 1344 active competitors. Some of its main competitors are:

    FAQs

    What age range of students does Age of Learning cater to?

    Age of Learning caters to pre-kindergarten, kindergarten, elementary, and middle school students, covering the age range of 2 to 8 years old.

    What subjects are covered in Age of Learning’s curriculum?

    Age of Learning’s curriculum covers a wide range of subjects including language arts, reading, math, science, social studies, art, and music. They also offer learning resources such as puzzles, books, and games to enhance learning and engagement.

    What types of multimedia resources are included in Age of Learning’s online curriculum?

    Age of Learning’s online curriculum includes a variety of multimedia resources such as interactive games, puzzles, books, videos, animations, songs, and art activities.

    Who are the competitors of Age of Learning?

    There are various competitors of Age of Learning which invlude –

    • JumpStart
    • BrainPOP
    • MarcoPolo Learning
    • EduDo
    • Nearpod
    • BYJU’S
    • Coursera
    • Duolingo
    • edX

  • Forbes Business Model | How does Forbes Make Money?

    Forbes is a media and publishing firm based in the United States, formed in 1917. The company regularly covers business, technology, financial markets, financial planning, sports, and various other issues. It also publishes a magazine with the same name, eight times a year, and has a readership of 5.8 million as of spring 2020.

    Forbes is most well-known for its lists, which include rankings of billionaires, top 30 under 30, universities, celebrities, and self-made women, to mention a few. Former Republican presidential candidate Steve Forbes leads the organization.

    What is the Business Model of Forbes?
    What is the Revenue of Forbes?
    Forbes Figures of 2021
    How does Forbes Make Money?
    Is Forbes a Profitable Business?

    What is the Business Model of Forbes?

    CEO Mike Federle has revealed Forbes’ new business plan. According to Mike, it is built on an audience and business scale with 150 million individuals. With the focus on direct-to-consumer conversion, this investment [the SPAC] will allow the company to design bespoke products that address these distinct business cohorts.

    In other words, they are focusing on trying to convert the regular subscribers into buying additional material like educational products, etc.

    The company now wants to utilize its proprietary technology stack and analytics to convert readers into long-term, engaged platform users, including memberships and recurring subscriptions to premium content and highly targeted product offerings.

    What is the Revenue of Forbes?

    Forbes Logo
    Forbes Logo

    Forbes is excellent at estimating how much other people are worth, their global wealthy list of billionaires is currently updated in real-time and is a beautiful resource for those interested in such matters.

    The total value of the combined company is projected to be $630 million. When Hong Kong-based investor group Integrated Whale Media Investments bought a controlling stake in Forbes in 2014, it was valued at $475 million.

    In 2020, it generated $163 million in sales, with the expectation of about $193 million in 2021. However, the revenue for the year 2021 saw a rise of 40% to $259 million as compared to $185 million in 2020 and the net income stood at $38 million. This figure was beyond the expectations of the company.

    Forbes Figures of 2021

    The revenue for the fourth quarter of 2021, increased 51% year-over-year to $94 million, driven by contributions across Media and Consumer businesses. The net income was $18 million during this period compared to a net income of $10 million for the same period in 2020.

    The revenue for the year 2021 saw a rise of 40% to $259 million as compared to $185 million in 2020 and the net income stood at $38 million.

    The adjusted EBITDA saw an increase of 86% to $60 million in 2021 compared to the adjusted EBITDA of $33 million for the previous year.

    Every month, Forbes reaches more than 150 million people across all platforms – online, on social, through Live and virtual events, and through video and print. Forbes aims to use the content it publishes to introduce consumer-focused paid products to increase consumer revenue.

    How does Forbes Make Money?

    Single Purchases

    When the company started initially, its model was based on the fact that they were providing information that was verified and well researched. It was released eight times a year, so people were more intrigued.

    Subscription Model

    The subscription model is the most important way of revenue for the company. The company tried to make fixed customers when selling physical copies. Although when they shifted to the online platform, they followed a similar pattern. This way, they kept providing customers with daily information.

    Advertising Revenue

    Forbes Advertising Examples
    Forbes Advertising Examples

    It is an example of a traditional revenue model. Companies buy advertising space on your site or magazine, also known as the advertising business model. Organizations express their intended content in text or visual format in the purchased advertising space. Companies pay you to promote their ads using standard advertising space for a price in the magazine, pay-per-click (PPC), pay-per-view (PPV), and other agreed-upon strategies online.

    Live Events

    Live events have become a significant source of revenue. Forbes hosted more than 60 events worldwide in 2018, including marquee events like the Under 30 Summit, which debuted in Europe this year with an event in Amsterdam. The CMO Summit, which also extended into Europe, and the Women’s Summit are two other important events. Forbes will also host an Under 30 Global Women’s Summit in 2019.

    Promotion through Earned Media

    Individuals and firms recognized on a Forbes Ranking, Cover Story, or other feature can repurpose the content for use on their owned and sponsored media platforms to highlight their excellent publicity and industry leadership. Billboards, print ads, banner ads, social media displays, television ads, and so on are examples of these.

    Licenses

    Forbes also has 40 licensing agreements worldwide, including China, India, and Russia. The Forbes School of Business, an MBA program in collaboration with online Ashford University, and a Learn at Forbes online skills-training platform are other licenses. Because it is an annual annuity, the licensing company is almost profit-driven. Budget year after year, it was understood that the license agreement requires a minimum payment. In certain circumstances, it’s a one-time payment combined with a revenue share or an equity investment.

    Is Forbes a Profitable Business?

    Forbes is not required to declare profits because it is a private enterprise. However, Federle said in a December 2018 interview with Digiday that it had its most lucrative year since its inception. He wouldn’t give a particular sales amount but said overall revenues were up more than 18% year over year, with profits up to 42%.

    After the difficulties in trading during the pandemic in 2020, the company’s growth shifted towards profitability in 2021. The company claims a net income of $19.5 million for year-to-date 2021, compared to a net loss of $2.8 million for the same period in 2020.

    Conclusion

    In brief, Forbes is a company that has built a reputable brand in itself. Forbes has traditionally made money from subscriptions, single purchases, and advertising revenue. However, profiting from this paradigm is becoming increasingly complex and the entire media sector is affected.

    Forbes’ current income strategy entails increasing live events and utilizing its brand and readership to create scalable products. The revenue potential is being addressed in areas such as education and eCommerce.

    FAQs

    What is Forbes’s Business Model?

    Forbes is focusing on trying to convert the regular subscribers into buying additional material like educational products, etc. The company now wants to utilize its proprietary technology stack and analytics to convert readers into long-term.

    How does Forbes make money?

    Forbes makes money through the Subscription model, Single purchases, Advertising revenue, Live events, Promotion through earned media, Licenses, etc.

    How much does the Forbes website make?

    Forbes website estimated revenue is more than $48 Million. And it has a daily income of more than $44,000.

    Who is the CEO of Forbes?

    Steve Forbes, Mike Federle, and Michael Perlis are the CEOs of Forbes.

  • Substack Business Model – How Does Substack Make Money?

    Today, writers can reach millions of people around the world by writing blogs. They can earn money by leveraging the Google and Facebook ad models. This might seem a safe option to make money but, it also restricts the creativity of the writers.

    Writers are not able to create a direct connection with their readers because they have to constantly think about the on-page and off-page SEO.

    Writers know that if they don’t rank their article on the first page of Google they won’t get the traffic due to which they will not earn money. This was a big problem for writers. To put an end to this, Substack was launched in 2017.

    Within a few years, it has empowered the relationship between a reader and a writer. It has gained immense popularity and people are loving this platform. Substack has over 5,00,000 paying subscribers.

    Let’s understand the business model of Substack and how it makes money.

    What is Substack?
    Business Model of Substack
    How Does Substack Make Money?
    Future of Substack

    What is Substack?

    Substack was founded in 2017 by Chris Best, Jairaj Sethi, and Hamish McKenzie. The headquarters of the company is in San Francisco, California, USA.

    It is an online platform that helps writers launch their email newsletter. Writers can earn money by collecting a subscription fee from email newsletter subscribers.

    The platform provides all the tools to the writers which allow them to write high-quality content. The best part about Substack is that writers can publish unlimited content for free.

    Business Model of Substack

    The business model of Substack is simple. It provides all the tools to the writers to write content and earn money through subscriptions.

    You can manage your email list, add subscribers, send emails and analyse the analytics. Readers can subscribe to your email list monthly or annually.

    Apart from making things simpler, Substack has made the bond between readers and writers stronger in the following ways:

    Freedom to Write Content

    Page view metrics and advertisers have taken away the freedom to write authentically from the writers.

    Most writers feel that their creativity is lost due to these algorithms and metrics. Substack helps the writers to write content on their terms and build a genuine audience.

    Writers can keep all their subscription lists and content with them. Substack provides all the editorial and publishing tools so that writers can make engaging content. Most importantly, the platform has provided financial freedom to the writers.

    Substack V/S Website

    Now, the main question lies in why should someone use Substack instead of simply creating their own website?

    See, if you opt for a website you need to think about the domain, hosting, website design, payment integration, funnel management and a lot more. You have to hire a professional website developer to do all of these things.

    You have to figure out and make all these arrangements by yourself. Now, tech-savvy people won’t find it tough to do all these. This will also take a lot of time and you also need to invest money. But People who just want to write engaging articles without being involved in all these technical customs use Substack.

    Building Trust

    Trust is a very significant aspect of any business. Substack helps to build trust between the readers and writers. Due to the newsletter subscription model, writers engage in a one-to-one conversation with their readers as the article is directly sent to the email inbox.

    Since there is no algorithm pressure on the writers, the main focus stays on creating quality content for readers. Writers can understand what a reader finds interesting and write content accordingly.

    Substack producer, Valerio Bassan quoted, “As a publishing tool, newsletters provide a solid answer to the number one question in media today: how can we rebuild trust between us and our readers?”

    Using Substack writers can build their own brands. Emily Atkin who previously worked at The New Republic and ThinkProgress moved to Substack. She is now the author of the climate-focused Substack newsletter. Emily now earns more money as compared to her previous salaried journalism job. She is an excellent example of how Substack is changing the lives of many writers.

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    How Does Substack Make Money?

    Substack makes money by charging a 10% commission to every paid subscriber. So, until you make money using Substack, the platform also does not make any money. The minimum subscription fee is $5 per month to $75 per month.

    To make more money the main focus of Substack is to get more writers to produce content on their platform and make those writers earn money.

    The subscription model incentivizes the writers to make engaging content and give more value to their readers. Contrast this to an ad model where the incentive for writers was to gain as much attention as possible.

    Future of Substack

    In the future, Substack may add discovery tools like a recommendation engine which would help readers find interesting content according to their preferences. This will boost the relationship between writers and readers.

    Podcasting is another great opportunity. Substack already allows its writers to distribute free podcasts. These podcasts are monetized through ads. Rather than following the ad model, Substack can add a paid subscription option for podcasts. This will help both the company and writers to earn more money.

    FAQs

    How does Substack work?

    Substack helps writers publish their content, build an audience and make money by collecting a subscription fee from email newsletter subscriptions.

    How does a Substack subscription work?

    A Substack subscription starts from $5 a month and can go upto $75 a month. The price goes up as you increase the number of subscribers.

    How does Substack make money?

    Substack makes money by charging a 10% commission to every paid subscriber.

    Is Substack profitable?

    Yes, Substack is profitable as writers can build their brand on the platform and earn money by collecting a subscription fee from email newsletter subscriptions. Writers can leave the platform at the time they want and keep all the subscription lists with them.

    Does Substack own your content?

    No, all the content you publish on Substack is owned by you.

  • Why Netflix Shares Dropped? | Where Netflix Went Wrong?

    As humans, our main source of entertainment has always been movies and series. Two decades ago, television was the main form through which we used to get our daily dose of entertainment. Flash Forward to two decades later, Streaming services have taken the place of television. People are now more into OTT platforms for their dose of entertainment and these streaming services are also serving them with regular movies, series, reality shows and everything that can entertain them.

    Topping the list of streaming platforms is Netflix. Netflix was founded in the year 1997 by Ted Sarados and Reed Hastings. It started offering streaming services in 2007 and since then it hasn’t looked back. There is hardly anyone who doesn’t know about Netflix and hasn’t used it to watch a movie or a series at least once. According to Netflix, they have over 222 million subscribers from all over the world. Therefore, it is not wrong to say that it is the most popular streaming service.

    However, recently the biggest streaming platform has encountered some pretty big roadblocks and somehow they are the only one who is responsible for this. Netflix was eyeing to add 2.5 million new subscribers in the first quarter. However, the opposite happened, Netflix has lost over 200k subscribers in a couple of months and 37% of its shares plummeted in a single day. In this article, we will talk about what has gone wrong with Netflix, why it is losing its subscribers and why its shares dropped for the first time in a decade. So, without any further ado, let’s get started.

    Netflix Share Drop

    “There is a revolution happening, and within two years I think that Wi-Fi and Netflix will be built into all the televisions.” -Reed Hastings

    What Reasons Is Netflix Giving for Share Price Fall?
    Where Netflix Went Wrong?
    What Will Netflix Do Now?

    What Reasons Is Netflix Giving for Share Price Fall?

    After the drop in the share prices, Netflix has given three reasons for the loss of its subscribers and they are:

    Increase in Price

    Netflix Subscription Plans

    Netflix has increased their monthly subscription price in recent times.  UK subscribers are said to be paying three times more for what they used to pay two years ago for the same service. This has created quite a stir amongst the subscribers. Although Netflix said that the increase of the price is to provide more quality content and experience to their customers, the sudden hike in the prices in the UK and Ireland was frowned upon by the public.

    Netflix Exit From Russia

    Just like many other companies Netflix also suspended their operation in the country because of the ongoing conflict between Russia and Ukraine The Russia-Ukraine war is another major cause of the subscriber’s loss of the platform. Netflix stopped all their services in Russia after the country declared war on Ukraine. Over this course, Netflix has lost over 700k subscribers because of the escalation of the war.

    Sharing of Passwords

    Netflix said that the sharing of passwords with other households is also the reason for the loss of subscribers. According to reports, 100 million households are enjoying the streaming service free of cost, with the help of password sharing. As mentioned above Netflix has over 222 million subscribers and these people are sharing their passwords with their friends, extended family and relatives.

    Where Netflix Went Wrong?

    While in this situation, some of the decision by Netflix has backfired and are constantly frowned upon by the customers. Those decisions are:

    From its very existence, Netflix as a platform never included ads in their services and the brand value has always been about improving the customer experience. Unlike other streaming services, Netflix avoided advertising and believed that it could do better business without it. In a sudden shift in the platform’s belief, the CEO of the streaming giant revealed that they are planning to introduce advertising on the platform in one or two years. Contrary to their previous statement where they said they will not use advertisement and. This is going opposite of their brand values as they have always focused on improving the customer experience. This decision came after Netflix was reported of losing over 2 Lakhs subscribers. According to them, it is to lower the price of the subscription.

    Sharing Password Crackdown

    This is probably the biggest blunder the streaming giant has done. As mentioned above, there are over 200 million subscribers of Netflix in the world but along with that 100 million households are sharing the passwords of their accounts with others. Password sharing was never a problem and one of the reasons the streaming platform was popular because of this and how consumer-friendly it was, until now.  Netflix reasons that the increase in their price structure of the subscription is because of password sharing, so to decrease the subscription cost they have decided to stop password sharing.

    Being Insensitive

    The worst thing, a business can do is treat their customers as criminals. As mentioned above, Netflix is on the verge of banning password sharing among households in America. However, before that Netflix is reported to fine accounts in Costa Rica, Peru and Chile who share their password with others. This somehow is quite triggering and seems unfair to certain cultures of the world and is tarnishing the image of the brand.

    Bad PR

    It takes a lot of time to build the reputation of a brand but it takes a second to get it crumbled. Netflix as a brand always focused on customer experience and entertainment. However, the recent news of cracking down on passwords, increasing the subscription price and introducing ads on the platform shows that they have become money-hungry and are not that consumer-friendly anymore. This way, the damage has already been done and the PR of the company hasn’t even done their job properly, which has resulted in such a stir. As they are now changing their core strategy, customers are finding it infuriating.

    Cease to Innovate

    Netflix has been famous for its great and unique content. However, in recent times, people believe that the streaming service has stopped making unique and innovative content. They are creating content that are mundane and repetitive. This way they are forgetting the basic thing that made them successful.

    What Will Netflix Do Now?

    Netflix is right now in deep trouble. There is still no definite answer as to when Netflix will stop losing subscribers. It is the first time in a decade that the streaming giant has received such a blow. In fact, the worse is still not over as Netflix has already said that it will lose more subscribers with the current scenario. By the next quarter, it is predicted to lose 2 million more subscribers. Netflix is currently gearing up to follow its decision of introducing ads on the platform and banning password sharing. However, it is not clear if these two decisions will be able to revive Netflix or it will make it fall more into the abyss.

    Conclusion

    Netflix is submitting itself to the current Global financial situation and thus it has seen a drop in its shares and such a big one for the first time in a decade. Their way of handling the situation and lack of proper PR seems like they are only thinking about their revenue. So their decision of introducing ads and password crackdown make them look like they are shifting from being a customer-centric company to just a money-hungry organization. If proper steps are not taken any sooner, Netflix will lose more subscribers and maybe its USP as well.

    FAQs

    Why did Netflix lose 200k Subscribers?

    Netflix is losing its subscribers because it recently has decided to put a ban on sharing the account passwords by consumers.

    Who is the founder of Netflix?

    Reed Hastings and Marc Randolph are the founders of Netflix.

    When was Netflix founded?

    Netflix was founded in the year 1997 and started its streaming service in 2007.

  • History, Present, and Future of the Subscription Business Model

    Today, almost every next application uses a subscription model for its digital streaming. Although the subscription model doesn’t need any specific introduction, basically you pay some amount of money and unlock premium content on various applications.

    From TV shows to music, you can have a subscription to anything you want. In fact, many companies even offer household products and food under their subscription packages. Here, a question arises! How has this subscription model become this successful and popular?

    The subscription business model is entirely based on customers’ preferences and services. If the services for the customers are good, they stick to the company and become loyal customers by buying the subscription package. That’s why keeping the customers happy and satisfied is a necessity in a subscription model.

    The subscription models are very effective and bring great advantages for the service provider. And it is expected for the upcoming years, companies with subscription-based business models would experience more success and fame. And that’s what we are discussing through this article! In this article, we will cover the history, present, and future prospects of the subscription model. Let’s get started!

    About Subscription Business Model
    History of the Subscription Business Model
    The Present of Subscription Business Model
    The Future of Subscription Business Model

    About Subscription Business Model

    Subscription-based business models work on investing in the compounding price of customers’ connection and loyalty. Therefore, an immense and continuous source of revenue is formed. As long as the customers will buy the subscription package, the company will continue generating more money.

    The subscription revenue model brings a great amount of revenue to the company and also, improve the relationship with customers. This promotes compounding growth that results in a huge loyal customer base.

    History of the Subscription Business Model

    The subscription business model has come a long way from Western European cities, used for clean drinking water delivery, grains delivery, and even exotic vegetables and fruits. This model has emerged as one of the most significant and famous business models for various retailers and companies in the global market. It is a business model that is bound to change depending upon the market and demand.

    In the early 17th century, the subscription business model first came in public appearances and came well-documented. After that, the Subscription business model grew on a larger scale and diversified into broad categories of services and goods.

    Then, by the time of the 20th century, subscription packages were available in every sector like newspapers and magazines, and with time, they evolved more promptly and gained importance in the market.

    Today, the subscription service business model works by utilizing advanced technology and offering great services to the customers through it.

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    The Present of Subscription Business Model

    Today, the subscription model has made a very successful image in the market. Many prominent companies have opted for the subscription-based business model which resulted in great success.

    When it comes to market share, the business model is attaining acceptance at the global level, day by day. As the financial acumen of people is increasing widely, managing them into smart decisions is very essential. And that’s where subscriptions jump in! It convinces people to choose subscriptions instead of purchasing them wholly.

    Suppose you decide to buy a car, so instead of purchasing it for long term usage or renting, you can choose a subscription package from the company where you’ll get a car within a certain duration of time, and you also have multiple options to change your car model later on. You can upgrade your car model periodically rather than being stuck with an old one. And that’s what sells these substitution package deals.

    The world is working towards upgrading people’s convenience above everything. The subscription business model provides such convenient services to its customers. That’s why it is gaining more relevance in the market.

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    The Future of Subscription Business Model

    The subscription model has been around since the 17th century and in such a long period, this model has gained great attention and been co-opted by many top successful companies like Netflix, Microsoft, Salesforce, and Adobe. In the last five years, the subscription business model has received a 100% increase in its revenue, i.e., from $57 million in 2011 to $2.6 billion in 2016.

    Formerly, this business model was only used by technology-based companies because of its Software as a service (SaaS). But, today it is associated with every other company. And it is estimated that in the coming future, the Subscription business model will grow even more promptly.

    People across the globe are preferring renting or subscribing over owning any goods and services. And this gives a great advantage for companies with the Subscription business model.

    From food to heavy equipment, the Subscription business model works everywhere. And this is considered to be the next major shift after the industrial revolution.

    It is estimated that in the coming 22nd century, subscribing to goods and services would be more common rather than being the exception.

    Conclusion

    The subscription model has come a long way ever since its first public display in the 17th century. Market, as well as the customers, have given great attention to the strategies of the Subscription business model.

    This has numerous advantages for companies as well as the customers. In the upcoming years, this business model would grow even more widely and bring great results for the companies.

    FAQ

    When was the subscription model invented?

    The subscription business model was started by publishers of books and periodicals in the 17th century.

    What are some of the subscription business model examples?

    Amazon Prime, Kindle Direct, Netflix, and $1 Shave Club are some of the famous examples of subscription business models.

    What is the subscription revenue model?

    The subscription revenue model generates revenue by charging customers a recurring fee that is processed at regular intervals.

    The subscription services are getting popular day by day as you can provide your customers high-quality products at affordable prices. Also, it is a great source of recurring revenue.

  • The Correct Way to Start a Subscription Box Business in 2022: The Ultimate Guide

    Subscription box businesses have taken the world by storm, and we don’t need to tell you that. It’s difficult to overlook the business potential offered in this expanding market, with more than 2,000 subscription box firms cropping up in recent years. Subscription boxes are hands down, one of the best ways to shop. They provide consumers with one-of-a-kind experiences centred on products and ideas and introduce new businesses.

    Subscription commerce provides a reliable business model based on recurring monthly revenue tailored to practically any niche, from puzzles to cosmetics to pets. If an online community exists around a product or genre, there’s a chance one can create a subscription box brand. However, creating a successful subscription box requires much more than a solid idea and a love for the things you’ll be shipping, and that’s why we break it down for you in this article with the help of a step-by-step guide.

    Here’s the step-by-step guide on how to start a Subscription Box Business.

    1. Subscription Box Business Idea
    2. Creating a Prototype for Subscription Box
    3. Fulfillment Services for Subscription Box
    4. Creating Budget for Subscription Box Business
    5. Pricing the Subscription Box
    6. Establish Your Brand
    7. Creating a Website for Subscription Box Business
    8. Marketing Strategies for Subscription Box Business
    9. Growing Your Customer Base
    FAQs

    1. Subscription Box Business Idea

    When it comes to subscription box businesses’ success, a good idea is its backbone. Specificity distinguishes decent ideas from fantastic ones, how your concept would fill a gap in an overly crowded market. Your box must stand out, but how do you intend to accomplish this? Some of the important questions for detailed analysis are market research, competition, and customer base.

    Market Research

    Conduct market research before launching your subscription box to ensure a business possibility in the sector you’re enthusiastic about. Try to get specific and break down your ideas to find a perfect product. The more specialized your box is, the easier it is to pick products for a certain audience, allowing you to increase client retention and provide a positive experience.

    Competition

    There are two types of competition for you: direct and indirect. Identity both Big names of your sector, as well as those who have failed, and ask yourself where the success and failure stem from in both cases. You’ll want to be prepared to answer queries like, “How many boxes are you competing with?” during your study. What do they have to give, and at what cost? How can you set your box apart from theirs? Answering these questions will assist you in developing a viable and appealing business.

    Customer Base

    Spend time researching your potential customer. What is the age of your customer? What stores do they frequently visit? What is their degree of income? Which social media channel do they prefer? Trends and customer purchasing habits in the subscription box industry and the things you intend to send, whether they be cosmetics, food, etc.

    2. Create a Prototype for Your Subscription Box

    When you launch the subscription box, one of the most common misconceptions is that you have to get your first shipment ready for launch before you begin marketing. This isn’t accurate, and relying on it could slow you down in the process of preparing your launch. The idea behind the prototype box is to introduce potential customers to the kinds of items they’ll receive month in and month out.

    Here are the steps you’ll need to create a prototype for your subscription box:

    Choose the Products

    Sips by Subscription Box
    Sips by Subscription Box

    Make sure you round up only 5-7 items representing the types of items your customers could anticipate receiving once they sign up. The most important thing is to avoid misleading people by using a prototype box. People are likely to decide to cancel their subscription if they believe your advertising efforts have deceived them.

    Choose the Box

    Depending on where you are in the process depending on your progress, you might or might not have your box finished. It’s probably the most important aspect of unboxing, and it’s worth the time to understand. The good thing is once you’ve worked out the dimensions and layout, it’s not necessary to purchase 2,000 boxes to begin.

    The most important things to take into consideration are branding as well as the design and size. Your box is the face of your company, regardless of how high quality the items are inside. A box that is not up to scratch can negatively impact the user experience.

    Choosing Packaging Supplier and Materials

    It could be crinkle paper, tissue paper, or even wrapping your product. To help with marketing, we suggest starting with crinkle paper since it won’t block out or cover your products from being taken.

    Among the most crucial decisions to make is which firm will provide your packing. Sure, you want to send a low-cost box. However, you’d like to send a package that makes receiving and opening it each month an adventure. Many organizations can design your packaging, so shop around until you find one that provides the ideal balance of quality and cost.

    3. Find a Fulfillment Service for Your Subscription Box Business

    If you’re starting, you’ll probably be able to manage all of the fulfilment on your own. If you want to create a subscription box that can take on the big companies, you’ll need to employ a fulfilment company to handle the logistics of sending your boxes each month. Look into fulfilment in the same way you looked at packaging. Numerous organizations can assist you in saving hundreds of hours per month.

    4. Create a Budget for Your Business

    You’ll need a clear and well-defined budget to fully assess things like return on marketing expenditure and overall profitability.

    • How much do you think your customers would be willing to pay for the items you’ll be sending them?
    • How much can you anticipate paying each month for the products you ship? What about packaging and fulfilment costs?
    • Average LTV (lifetime value) of your niche’s customers?
    • What is the maximum amount of money you can spend on marketing to get each customer?

    Consider all of the costs associated with production, fulfilment, client acquisition, and customer retention to get a clear image of what you’ll need to spend/charge to be profitable and successful in the long run.

    5. Set the Right Price for Your Subscription Box

    One of the most costly mistakes an owner of a subscription box will make is pricing their subscription box. Suppose you’re pricing your subscription too low to remain competitive or charging too much to make a substantial income margin. In that case, each side of the spectrum can affect the viability of your business.

    If you’ve come up with an amount, but you feel there’s something wrong with it, don’t hesitate to send out questionnaires or other deals to your customers. Find out the details to determine which price points seem to be most popular with your target audience? If you’re diligent about pricing, you’ll create the foundation to ensure a steady, reliable stream of income.

    Aspects to be considered when determining the price of your box

    • Cost of the product: The items included in your package.
    • The cost of the box: Your box and accessories for your box (stickers and stamps).
    • Materials for packing cost: Filler paper bubble wrap, filler paper, or inserts.
    • Postage and shipping cost: Mailing labels packing tape, mailing labels, etc.
    • Fulfilment cost: Physically packing your box.
    • Transactions and platform fees: Charges from your payment processor as well as your e-commerce platform per transaction.
    • Fixed monthly cost: Gmail fees, prices for accounting software, etc.
    • The acquisition costs: Advertising & marketing to attract new customers.

    6. Build a Brand For Your Subscription Box Business

    Branding is a very important part of growing a successful subscription service. It helps people notice, share, and remember your service long after exposure to it. If your branding is compelling, people will understand your brand at first sight. People are more likely to share your box if they are impressed by the packaging and the contents, giving you free advertising you did not have to pay for.

    Name

    Effective branding entails more than just a clever name. It should inform customers about the type of business you’re in (subscription box) and the things they’ll receive if they place an order with you.

    Consider a logo as a company name that you don’t have to read to recognize. People will likely know the shape of your logo before they read it, even if it is a script that reads out your box name. Overly intricate logos should be avoided. Keep your design minimal while remaining unique. People will be far better able to identify with your brand if they can comprehend it right away.

    Slogan

    Some companies are noted for their catchphrases, which clearly state the advantages of doing business with them. While it isn’t necessary for branding, creating a memorable slogan is a fantastic way to help your consumers and future buyers remember what the company is all about. For example, when we hear Have a Break, our mind instantly reminds us of Kitkat.

    7. Build a Website for Your Subscription Box Business

    Your website is more than just a place to sell products; it’s also your marketing tool. The foundation of any successful subscription box business and public face for what you stand for.

    Use a Template Site: Depending on your starting capital, a template site from an e-commerce platform like Shopify may be the most cost-effective way to get up and running. They’re simple to make, cheap, and come with a plug-and-play interface that allows you to set up a website in a matter of hours.

    Template sites have drawbacks, but they’re a smart place to start if you’re on a budget and don’t have the technical know-how to develop a conversion-optimized, custom e-commerce website.

    Any eCommerce firm can outgrow the capabilities of template sites; therefore, if you’re starting with a good budget, a conversion-optimized, custom e-commerce site should be preferred. The opportunity to fully personalize every design aspect and functionality to maximize the customer experience and generate more conversions is one of the advantages of this type of site.

    Expert marketers create conversion-optimized websites after conducting comprehensive research into your target buyers, rivals, and user behaviour on your website. The process entails more than just creating a nice-looking website that showcases your stuff.

    8. How to Market the Subscription Box to Reach Maximum Customers?

    Make a website that is all about conversions

    To begin selling, you’ll need a website that is optimized for conversions. It would be best if you comprehended your ideal buyer’s journey as well as the types of content they will require at each stage of their relationship with your firm. You’ll need to know what kinds of material your target subscription buyer enjoys so you can create content offers for them at each point of their journey and capture their information so you can groom them to buy.

    Content offers

    It’s all about purchasing and repurchasing in subscription boxes. Begin creating more “deals” for your visitors and continue to nurture them with great material until they are subscribers.

    Create Tutorials to use your products

    Creating instructions on how to utilize the products you send your members every month, whether your box focuses on beauty, crafts, nutrition, or even men’s grooming, is a terrific way to serve your audience. It’s a tried-and-true way to show that you genuinely care about what you’re offering and that you’re there to assist them.

    Develop Referral Program

    Once it comes to subscription box marketing, referral programs are extremely important. When starting a referral program, there are a few things to consider.

    1. How is it going to work?
    2. What does the individual who makes the reference stand to gain?
    3. How will you persuade them to act?
    4. What system will you use to keep track of referrals?
    5. How will you ensure that the system is not abused?

    Create Ads

    Your goal and marketing plan will determine the type of ad you launch and provide your audience. If you want increased sales right away, a “purchase now” offer is the way to go. If you’re going to grow your subscriber base and nurture them into making purchases via email (which is typically more cost-effective), you’ll need to use a different technique. Before you run any advertising, make sure you fully grasp your aim and approach, as well as how you’ll track campaign success or failure.

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    9. Grow Your Customer Base

    Many recurring subscription businesses are overly focused on customer generation and stop investing in keeping their current customers happy. The goal is to keep growing your company. One of the most efficient methods to keep your clients pleased is to provide excellent customer service. It’s unavoidable that problems develop. This is particularly true for startup companies. The way you address them will determine your success.

    Rather than attempting to push difficulties under the rug, devote resources to resolving the issue for your consumer as soon as possible. Then, regardless of the problem, work to over-deliver and ensure their customer service interaction is happy.

    Social media channels such as Facebook and Twitter are ideal places to operate your customer support business. You could want to create a separate Facebook page or Twitter account solely for customer issues and questions.

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    Conclusion

    Many entrepreneurs have been drawn to the subscription box sector because of its potential. However, it would be best to ask yourself how to start a subscription box business from a solid foundation that is poised to produce predictable growth and long-term success, not how to create a subscription box business.

    The suggestions in this article may help you get a head start on developing and launching your subscription box business.

    FAQs

    Are Subscription Boxes Profitable in 2021?

    Yes, Subscription boxes are, in fact, more popular than ever.

    Is a Subscription Box business worth it?

    According to research, subscription models are more than 200% profitable for organizations than one-time payment methods.

    How much do subscription box businesses make?

    Subscription Box businesses have a 40% to 50% profit margin.

  • Top 10 Best Subscription Boxes of 2021

    With the growing digitalization across the world, people are opting for various advanced products and services. Among such advanced services, subscription boxes are widely popular! It works best as it saves your money and also provides you a quality product. That’s the fun of Subscription boxes.

    Today, numerous companies have opted for the Subscription-based business model. From the past few years, Subscription services have expanded on a large platform, especially in a pandemic, people have tried several online grocery and meal kit boxes. The result has been tremendous. When you receive a brand new Subscription box in your mail every month, nothing could be more joyful!

    Whether it’s about beauty products or entertainment, Subscription-based businesses are earning great revenues. Moreover, Subscription boxes are the best gift for your loved one these days. These boxes are available in all categories and occasions, you just need to choose the right one for you!

    The most fascinating thing about Subscription boxes is that they are extremely affordable. And that’s what attracts the audience most! In this article, we have covered some of the best Subscription box services of 2021. Let’s get started!

    GlossyBox
    Facetory
    Winc
    Fresh Baked Cookie Crate
    SnackNation
    Trunk Club
    Nuuly
    Kiwico
    Birchbox
    Ritual
    FAQ

    GlossyBox

    GlossyBox
    GlossyBox

    It’s a monthly subscription box service made for beauty products. GLOSSYBOX sends five selected (according to your preferences) beauty products to your address in a beautiful pink box.

    GLOSSYBOX offers a wide range of beauty categories including fragrance, skincare, haircare, and makeup. All products are varied from foreign beauty brands and are tremendous.

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    Facetory

    Facetory
    Facetory

    Facetory works on offering the best and most affordable beauty products to its customers. With such a wide range of products in the market, Facetory aims for producing the most attainable, affordable, and practical usage products. The company works best for all occasions and categories. You can give Facetory boxes to your friends, family, and anyone.

    Winc

    Winc
    Winc

    When it comes to wine subscription boxes, what’s better than Winc! Can you imagine, WINE for every month! That’s unbelievable. And that is what Winc proposes.

    It offers a palette quiz from which the customers can choose the personalized wine bottle for their every month subscription box.

    No more standing in a line at your local shop for buying a bottle of wine, you can have it delivered to your home every month. Winc charges $13/bottle as it delivers four bottles per month.

    Fresh Baked Cookie Crate

    Fresh Baked Cookie Crate
    Fresh Baked Cookie Crate

    Imagine, unboxing a box filled with the most delicious cookies, Tasty! Yes, it is. Fresh Baked Cookie Crate delivers a box packed with delicious ingredients, simple and handy guidelines along with the best surprise a foodie could ask for, by every month.

    Fresh Baked Cookie Crate prepares its boxes with great compassion and puts each item meticulously chosen that provides the most amazing pleasure of eating cookies.

    SnackNation

    SnackNation
    SnackNation

    Thinking of something to gift your colleague who is missing out on the pleasure of snacks in the working hour? Well, SnackNation is the best choice for you! It delivers a box of various snacks which are very healthy. It provides around 15 to 50 treats in each box, based on customer’s preferences and budgets. SnackNation is best to spend your quality time eating the most healthy and delicious snacks of all time.

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    Trunk Club

    Trunk Club
    Trunk Club

    Trunk Club is an incredibly popular subscription box company under the Nordstrom Umbrella. It offers a huge range of inventory for both men and women. Your browsing is done by professional stylists.

    Trunk Club prepares your box and in case you want to swap any item, you can do it before the shipment. It delivers 6-10 items in its box every month. Trunk Club charges $25 for the styling fee along with other items that you purchased.

    Trunk Club offers the best customer service and offers tension-free shopping experience.

    Nuuly

    It often happens when we choose urban clothing from Anthropologie or free people, it gets pretty expensive. And that’s where Nuuly comes in!

    Through its subscription service, Nuuly delivers six styles from the stores’ prominent brand, every month at the price of $88. Nuuly also offers free shipping and return access to its customers.

    Kiwico

    Kiwico
    Kiwico

    Kiwico starts at $19.95 and offers various boxes filled with tons of hands-on fun activities for all age groups and their interests. The customer gets to choose from the preference of age-based subscriptions for STEM and inventiveness.

    Kiwico offers great service and shopping options that builds up a huge customer base for it.

    Birchbox

    Makeup and skincare often becomes pretty expensive, plus it is really tough to go with experiments in these products. For that purpose, Birchbox was founded. The subscribers get various category options of skin type, hair concerns, and more; from these, Birchbox sends five new mini products, based on their preferences and types, from the top brands every month with the starting price of $13/month.

    Ritual

    Ritual
    Ritual

    Ritual is entirely based on the commitment to simplicity, traceability, and elements that are formulated for body health and fitness. Ritual offers the products in the form of the only vitamin required for a healthy functioning body.

    Ritual utilizes beadlet-in-oil embossing which is meant to provide great nutrients in comparison to traditional capsules. Its package includes a 60 capsule containing bottles which are absolutely vegan-certified.

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    Conclusion

    Subscription boxes are the best choice when you are looking for getting your required products in general proportion every month. It makes your life easy and filled with joy. You can buy clothes, beauty products, or groceries; anything you require.

    These subscription-based companies offer great deals and deliver the box every month as per the delivery date. In today’s digital world, subscription boxes are the best to save money and buy quality products.

    FAQ

    What is Subscription box?

    Subscription boxes are recurring delivery of niche products.

    What are some of the top Subscription boxes?

    GlossyBox, Facetory, Winc, Fresh Baked Cookie Crate, SnackNation and Trunk Club are some of the top Subscription boxes.

    Why are subscription boxes so successful?

    Subscription boxes are successful because it gets straight delivered to the consumers home which is more convenient than walking to the store.

  • SignalX Startup Story: AI-powered Risk Intelligence Platform

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by SignalX.

    With a vision to build a global counterparty verification platform catering to risk intelligence requirements across industries, Govind Balachandran, Zakir Wahab, and Piyush Arora founded SignalX. SignalX is an intuitive AI-powered Risk Intelligence platform that runs comprehensive risk assessment & credibility verification on any given target – individual or a corporate entity, in just 48 hours. In just 3 years, SignalX has served over 200+ risk and compliance professionals across various domains.

    StartupTalky had an Exclusive Interaction with Govind Balachandran, Co-Founder & CEO of SignalX to get insights on the Startup Journey of SignalX. Also to know the business model of SignalX, its funding status, How SignalX started, its future plans & more.

    SignalX – Company Highlights

    Startup Name SignalX
    Founders Govind Balachandran (CEO), Zakir Wahab (CFO), Piyush Arora (CTO)
    Headquarters Hyderabad
    Founded 2018
    Total Funding $750K (Seed)
    Industry Regtech, Compliance, Due Diligence, Risk Assessment
    Website signalx.ai

    SignalX – About and Vision
    SignalX – Industry Details
    SignalX – Founders and Team
    How SignalX Started?
    SignalX – Product/Services
    SignalX – Name Meaning & Logo
    SignalX – Business Model and Revenue Model
    SignalX – Startup Launch
    SignalX – Startup Challenges Faced
    SignalX – Marketing Strategy
    SignalX – Growth
    SignalX – Funding and Investors
    SignalX – Competitors
    Tools used by SignalX to run startup
    SignalX – Awards and Achievements
    SignalX – Future Plans
    SignalX – FAQs

    SignalX – About and Vision

    SignalX is an intuitive AI-powered Risk Intelligence platform that runs comprehensive risk assessment & credibility verification on any given target – individual or a corporate entity, in just 48 hours. It provides detailed financial, legal, compliance, and reputational analyses on potential clients, vendors, business partners, investment targets, and all counterparties and third parties. SignalX enables businesses to build trust and transact faster. The platform is used by Risk, Audit, Valuation, Compliance, and Forensics teams across industries.

    The long-term vision of SignalX is to build a global counterparty verification platform catering to risk intelligence requirements across industries.

    “We want to evolve and be recognized as a trusted RegTech and Compliance brand across the globe.” says Mr. Govind Balachandran, Co-Founder & CEO, SignalX

    SignalX – Industry Details

    In a broader sense, SignalX operates in the domain of credibility verification and risk tech technologies which cuts across Regtech, Fintech, LegalTech, ComplianceTech, GRC, and more. There have been massive investments by the Big4, Compliance Firms, and Law Firms into forensic technologies. GRC as a domain is expected to be at 60B USD over the next 5 years. The team at SignalX is hoping to play a meaningful role in this space.

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    SignalX – Founders and Team

    Govind Balachandran (CEO), Zakir Wahab (CFO), and Piyush Arora (CTO) are the founding team of SignalX. Govind looks after the sales, marketing, and delivery ops of the business. Zakir looks into finance, compliance, hiring, and other ops. Piyush looks into product and engineering.

    “We have been working together for many years now. It was a no-brainer decision to start together. We met each other through our previous ventures” Govind added.

    Govind Balachandran | Co-Founder & CEO, SignalX

    SignalX founder and Ceo
    Govind Balachandran, Co-Founder, and CEO of SignalX

    Govind Balachandran has over 7 years of experience in marketing and product development. At SignalX, his prime focus is on growth and New Business acquisition. Previously, he was the Director at Nebulae Software. He also co-founded Kaddy Analytics, a cloud-based analytics platform for stakeholders in the education system. Govind has devised enterprise solutions for forensic and fraud analytics, Edtech, and HRTech verticals and has worked with various Series A and Seed-Stage startups, playing a key role in their growth and product development. Govind holds a Bachelor of Technology (Honors) in Mechanical Engineering with a Minor in Economics from IIT Hyderabad.

    Zakir Wahab | Co-founder & CFO, SignalX

    Zakir Wahab is a serial entrepreneur & a co-founder/CFO at SignalX. He is an alumnus of Andhra University, is an early-stage investor, and brings immense experience across the fields of finance, strategy & e-governance.

    Piyush Arora | Co-founder & CTO, SignalX

    Piyush Arora heads the technology team at SignalX. As co-founder & CTO, he also looks after product growth & engineering. Piyush is an alumnus of IIT Hyderabad and previously worked at Qualcomm.

    SignalX founders and team
    SignalX Team 

    How SignalX Started?

    It started out wanting to build a simple tool that can help in assessing the credibility of counterparties. The team had known first hand, the challenges faced by risk and forensic teams and their expectations from technology. SignalX has been focused on this objective from day 1 and over time, through many iterations, today it is one of the most comprehensive risk intelligence platforms with analytics that helps you make risk decisions faster and accurately.

    SignalX – Product/Services

    SignalX runs its proprietary machine learning algorithms to gather data through sources that are publicly available like datasets managed by government agencies, regulators, media journals, and other third parties. Its algorithms assure reduced false positives and ensure the efficacy and accuracy of an extensive research process. SignalX also generates and shares reports with clients in just 2 days, which gives them the edge of speed for the next steps and reduces the extremely tiresome and tedious process of diligence.

    The core value proposition of SignalX is to offer risk signals pertaining to any target whose name is given to the platform – an individual or an entity. Hence the name SignalX.

    SignalX
    SignalX Logo

    SignalX – Business Model and Revenue Model

    SignalX offers multiple pricing options. Its pay-as-you-go model is quite popular. However, most of its users prefer a subscription service.

    SignalX – Startup Launch

    “We’ve been creating content on our blogs from day 1. Inbound has been a strong channel for us. Customer referrals are another channel that continues to bring us leads. We have had a strong focus on customer service and retention from the very beginning” says Govind.

    SignalX has a strong focus on organic traffic. Some of the content the team created about a year back is performing better month on month. The company is continuously driving improvements to these assets. The brand is a key element for SignalX going forward.  A risk intelligence platform must be comprehensive, thorough, auditable, and credible. These are some of the values that the customers expect from the company. To develop its PR channel, SignalX has signed up with SSPR.

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    SignalX – Startup Challenges Faced

    Having bootstrapped the firm for the first two years, it was required to develop cash flows from month one. Being a new firm in the market, it is very tough to build trust and credibility. Being bootstrapped also makes one conscious of not undercutting the pricing such that it’s not profitable to operate. Early on, the team had to deal with situations where they had to develop trust with clients to get them to give SignalX business. Today SignalX has worked with over 200+ compliance and risk teams. So, it’s much easier to represent itself in front of newer clients.

    The pricing strategy was one of the items that took quite a bit of iteration. The iterations are also difficult since it creates discrepancies between newer and older customers. However, since SignalX has been able to deliver strong value, it has been able to work with the customers in updating the pricing.

    SignalX – Marketing Strategy

    SignalX is heavy on Organic and Referrals. Email marketing is something it incorporates a lot. The company has received some of the best throughputs from the long-form content it created on its blogs a while back. “We’re still driving continuous improvements on this front” Govind added.

    SignalX – Growth

    SignalX has served over 200+ risk and compliance professionals across various domains. Its solution has made a mark in Section 29A (IBC) due diligence requirements in the Insolvency & Bankruptcy domain. Its product is also used by the forensic teams at some of the Big4’s.

    The company’s goal is to build a global counterparty risk intelligence solution that can cater to requirements from across industries, law enforcement, governments, and more. It is adding newer use cases to the platform every quarter. SignalX recently launched Supplier and Partner Risk Intelligence modules to help supply chain or distribution heavy businesses to assess legal, financial, reputational, and compliance risks associated with counterparties.

    SignalX – Funding and Investors

    Being bootstrapped since its inception in 2018, SignalX received seed funding from 3Lines VC, 9Unicorns, and Hyderabad Angels for $750k in September 2020.

    Date Stage Amount Investors
    Sept 2020 Seed Fund $750k 3Lines VC, 9Unicorns, Hyderabad Angels

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    SignalX – Competitors

    SignalX’s competitors include RDC, Bloomberg, Dun & Bradstreet, Exiger, DueDil, DDIQ, and others.

    Tools used by SignalX to run startup

    Few tools which SignalX uses to run the startup are – Hubspot, ActiveCampaign, Jira, Hootsuite, etc.

    SignalX – Awards and Achievements

    • SignalX got recognized by the Government of Telangana
    • Winners of EmergeX, Microsoft in the domain of Emerging Technologies

    SignalX – Future Plans

    SignalX will continue to add more use cases to its platform to cater to a wider set of requirements. The team will be strengthening the ML to bring best-in-class technology for risk professionals. SignalX will also be expanding its database coverage across borders and also forensic analytics to improve fraud and risk signal detections. “We have some exciting features coming up that look at how we fundamentally address credibility verification and manage the risk process.” says Govind Balachandran, Co-Founder& EO of SignalX.

    SignalX – FAQs

    What is SignalX?

    SignalX is an intuitive AI-powered Risk Intelligence platform that runs comprehensive risk assessment & credibility verification on any given target – individual or a corporate entity, in just 48 hours.

    Who are the founders of SignalX?

    Govind Balachandran (CEO), Zakir Wahab (CFO), and Piyush Arora (CTO) are the founding team of SignalX.

    How much funding has SignalX raised?

    SignalX received seed funding from 3Lines VC, 9Unicorns, and Hyderabad Angels for $750k in September 2020.

    Is SignalX Indian Company?

    Yes. SignalX is an Indian company headquartered in Hyderabad, India.

    Who are SignalX’s competitors?

    SignalX’s competitors include RDC, Bloomberg, Dun & Bradstreet, Exiger, DueDil, DDIQ, and others.

    How does SignalX source data for analysis?

    SignalX sources its data from datasets managed by government agencies, regulators, publicly available media, and various other third-party datasets. SignalX runs its proprietary machine learning algorithms to reduce false positives and infer meaning. SignalX does not look into any data points that are not made publicly available by the target company or by other parties either through the media or in their regulatory filings.