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Tag: 📄Company Profiles

  • Niva Bupa Health Insurance: Transforming Healthcare Coverage for Millions in India

    Niva Bupa Health Insurance is one of India’s leading standalone health insurers, recognized for its innovative offerings and rapid growth. 

    With a robust market share of 17% as of FY24 and coverage extended to over 14 million lives, the company has established itself as a significant player in the Indian SAHI (Standalone Health Insurance) segment. Its impressive revenue growth reflects its strong operational and strategic momentum.

    The company has set ambitious goals, including expanding to 600 cities, increasing its hospital network to over 10,000, and covering 10 million people by the end of FY24. 

    Additionally, its upcoming IPO is poised to strengthen its financial position and drive further growth.

    In this Startup Talky article, we will explore Niva Bupa’s journey, strategic plans, financial performance, and the challenges it faces in the competitive health insurance landscape.

    Niva Bupa Health Insurance Company – Company Highlights

    Name Niva Bupa
    Headquarters New Delhi, India
    Sector Insurance
    Founder Maninder Singh Juneja David Fletcher Chandrashekhar Bhaskar Bhave
    Founded 2008
    Website www.nivabupa.com

    Niva Bupa Health Insurance Company – About
    Niva Bupa Health Insurance Company – Industry
    Niva Bupa Health Insurance Company – Founders and Team
    Niva Bupa Health Insurance Company – Startup Story
    Niva Bupa Health Insurance Company – Mission and Vision
    Niva Bupa Health Insurance Company – Name, Tagline and Logo
    Niva Bupa Health Insurance Company – Business Model 
    Niva Bupa Health Insurance Company – Revenue Model
    Niva Bupa Health Insurance Company – Challenges Faced
    Niva Bupa Health Insurance Company – Funding and Investors
    Niva Bupa Health Insurance Company – Advertisements and Social Media Campaigns
    Niva Bupa Health Insurance Company – Awards and Achievements
    Niva Bupa Health Insurance Company – Competitors
    Niva Bupa Health Insurance Company – Future Plans

    Niva Bupa Health Insurance Company – About

    Meet Niva Bupa Health Insurance Company Limited, a trusted name in health insurance since 2008. Headquartered in New Delhi, India, Niva Bupa offers a diverse range of health insurance plans tailored to suit every unique need.

    A Legacy of Excellence

    Originally launched as Max Bupa Health Insurance Company Limited, Niva Bupa is the result of a strategic joint venture. It combines the expertise of Fettle Tone LLP, an Indian private equity firm affiliated with True North Fund VI LLP, and Bupa Singapore Holdings Pte. Limited, is a global leader in healthcare services. Together, they’ve created a brand committed to safeguarding your health and well-being.

    Pioneering Milestones in Health Insurance

    • Trailblazers in Innovation: In 2011, Niva Bupa became the first health insurer in India to integrate with the Insurance Regulatory and Development Authority’s (IRDAI) Integrated Grievance Management System in real-time. This proactive approach ensures seamless resolution of customer concerns.
    • Smart Insurance On-the-Go: In 2019, Niva Bupa revolutionized the insurance industry with the launch of AnyTimeHealth (ATH) machines, enabling customers to purchase health insurance within seconds – no hassles, just health security!

    Regulated and Reliable

    Under the supervision of IRDAI, Niva Bupa continues to set benchmarks in transparency and customer satisfaction.

    Everything You Need To Know About Life Insurance | Insurance Industry
    This post is dedicated to the domain of life insurance, the different types of life insurance, and these instruments are sold, and several other points.
    StartupTalkyDevashish Shrivastava

    Niva Bupa Health Insurance Company – Industry

    Record-Breaking Growth in FY25: India’s life insurance sector saw a 22.91% YoY growth in first-year premiums during Q1 FY25, reaching INR 89,726.7 crore (US$ 10.75 billion), up from INR 73,004.87 crore (US$ 8.75 billion) in Q1 FY24, highlighting increased trust and demand.

    Attracting Global Investment: India’s insurance sector attracted INR 54,000 crore (US$ 6.5 billion) in FDI over the past nine years, driven by progressive FDI regulations and an investor-friendly environment.

    LIC of India’s Historic IPO: The LIC IPO in 2022 became India’s largest IPO and the sixth-largest globally, marking a pivotal moment in India’s financial history and boosting confidence in the insurance sector.

    A Flourishing Future: The Indian insurance market is projected to reach US$ 222 billion by 2026, fueled by rising awareness, innovation and digital adoption in insurance services.

    Empowering Indian Farmers: Under the Ayushman Bharat PMJAY initiative, 56.8 crore farmer applications were enrolled, with 23.2 crore farmers receiving claims, safeguarding the rural economy.

    Niva Bupa Health Insurance Company – Founders and Team

    Krishnan Ramachandran (Managing Director and CEO)

    Krishnan Ramachandran (Managing Director and CEO)
    Krishnan Ramachandran (Managing Director and CEO)

    Krishnan Ramachandran, with over 25 years of expertise in healthcare and financial services, is a visionary leader dedicated to transforming lives through innovative strategies and inclusive solutions. As the former CEO of Apollo Munich Health Insurance and now a key figure at Niva Bupa, he leverages technology to enhance healthcare accessibility, affordability and quality, striving to make healthcare insurance a reality for all.

    His expertise extends to wealth management, having advised High Net Worth Families globally, providing tailored strategies to preserve and grow wealth. A seasoned professional in strategic sales, mergers and acquisitions, capital markets and international taxation, Krishnan combines deep industry knowledge with operational excellence. An alumnus of BITS Pilani and IIM Calcutta, his leadership continues to shape the future of healthcare and financial services with a focus on equitable and impactful solutions.

    Maninder Singh Juneja (Board member and Director)

    Maninder Singh Juneja (Board member and Director)
    Maninder Singh Juneja (Board member and Director)

    Maninder Singh Juneja brings over three decades of extensive experience, with 26 years dedicated to the financial services sector. As a board member and director at Niva Bupa, he plays a pivotal role in steering the company’s strategic direction. Previously, Juneja served as Senior General Manager and India Head for Retail Banking at ICICI Bank, overseeing strategy, product development, branch banking and distribution channels. Additionally, he held the position of Vice-Chairman at ICICI Home Finance Company Limited and served on the boards of prominent institutions like CIBIL, NPCI, IARC and ICICI Merchant Service Ltd.

    In 2016, he joined True North, focusing on managing and transforming businesses within the financial services sector. Juneja holds a Bachelor’s degree in Civil Engineering from MS University and a Post Graduate Diploma in Management from IIM Lucknow, credentials that underscore his expertise in blending technical acumen with business strategy.

    David Fletcher (Chief Risk Officer)

    David Fletcher (Chief Risk Officer)
    David Fletcher (Chief Risk Officer)

    David Martin Fletcher has been serving as Chief Risk Officer for Bupa since January 2017, bringing a wealth of global financial services expertise to the role. He joined Bupa in 2014 and previously held key positions as Chief Internal Auditor and Managing Director of Bupa International Development Markets. Fletcher’s international career spans senior roles with Standard Chartered and Citibank across Nigeria, China, Hong Kong, Singapore, Bangladesh, Indonesia and London. He also served as President Director of Bank Permata in Indonesia and Group Head of Internal Audit at Standard Chartered. Fletcher holds a bachelor’s degree in modern history from Durham University, UK and is a member of Bupa’s Chief Executive Committee, as well as Vice Chairman and Director of Bupa Arabia for Cooperative Insurance Company.

    Chandrashekhar Bhave (Chairman and Independent Director)

    Chandrashekhar Bhave (Chairman and Independent Director)
    Chandrashekhar Bhave (Chairman and Independent Director)

    Chandrashekhar Bhave is an experienced professional with a background in public service and securities regulation. He has held key positions at Black Box Limited, CMC Limited, Tejas Networks Limited, Saankhya Labs, NSDL Database Management, Protean Egov Technologies, and Tata Consulting Engineers.

    Currently, he serves as a director at Avenue Supermarts, Mahindra & Mahindra Financial Services, Niva Bupa Health Insurance, Vistaar Financial Services and the Indian Institute for Human Settlements.

    An alumnus of Jabalpur Engineering College, Mr. Bhave’s notable roles include Senior Executive Director at SEBI (1992-1996), Chairman and Managing Director of NSDL (1996-2008), and Chairman of SEBI (2008-2011). He was also a trustee of the IFRS Foundation and chaired the Asia-Pacific Regional Committee of the International Organization of Securities Commissions.

    Niva Bupa Health Insurance Company – Startup Story

    Niva Bupa Health Insurance, founded in 2008 as a joint venture between Max India and Bupa, launched operations in 2010 with a vision to redefine health insurance in India. Demonstrating its focus on innovation, it became the first health insurer in the country to integrate with the Insurance Regulatory and Development Authority’s Integrated Grievance Management System in 2011, offering efficient, real-time grievance resolution. In 2019, the company introduced AnyTimeHealth (ATH) machines, enabling instant health insurance purchases, further enhancing customer convenience. That same year, Fettle Tone LLP, an affiliate of True North, acquired a 51% stake from Max India, paving the way for a new era. Rebranded from Max Bupa Health Insurance Company Limited to Niva Bupa, the organization remains committed to delivering accessible, affordable and innovative health insurance solutions.

    Bupa, originally the British United Provident Association, was established in 1947 through the union of 17 British provident associations to provide healthcare for the public. As a private company limited by guarantee, Bupa reinvests all profits back into the business, ensuring sustainable growth and continued commitment to its mission.

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    Niva Bupa Health Insurance Company – Mission and Vision

    Mission

    Niva Bupa is dedicated to empowering Indians with the confidence to access the best healthcare by providing them with the knowledge, expertise, and services they need. By ensuring informed decisions and seamless healthcare solutions, the company aims to make quality healthcare accessible, reassuring customers that their health and well-being are in trusted hands.

    Vision

    Niva Bupa aspires to become India’s most admired health insurance company by prioritizing the health and security of its customers. Through innovative offerings, personalized support, and a steadfast commitment to building long-term relationships, the company seeks to set a benchmark in health insurance, earning the trust and admiration of millions across the country.

    Niva Bupa Health Insurance Company Logo
    Niva Bupa Health Insurance Company Logo

    With a tagline that inspires, “Zindagi ko claim kar le” (Claim your life), Niva Bupa Health Insurance empowers individuals to take control of their health and well-being with confidence. The brand’s identity is encapsulated in its distinctive HEARTBEAT logo, a registered service mark of The British United Provident Association Limited, symbolizing care, vitality, and a commitment to safeguarding lives. Niva Bupa continues to champion innovative health insurance solutions, ensuring every heartbeat is protected.

    Niva Bupa Health Insurance Company – Business Model 

    Customer-Centric Health Insurance Solutions

    Niva Bupa Health Insurance operates on a robust and customer-focused business model, catering to the diverse healthcare needs of families, individuals, and senior citizens. Trusted by over one crore satisfied customers, the company partners with more than 10,000 network hospitals across India, enabling cashless claim processing in under 30 minutes. With health insurance plans starting at just INR 20 per day, Niva Bupa ensures affordability and accessibility for all. Their offerings are complemented by innovative services like the 24×7 Insta Assist and a feature-rich Health App, delivering seamless support and wellness resources to their policyholders.

    Niva Bupa Health Insurance Company – Revenue Model

    Comprehensive Range of Health Insurance Plans

    Niva Bupa offers a wide array of health insurance solutions tailored to various life stages and requirements. These include Individual Health Insurance Plans, Family Health Insurance Plans, Critical Illness Insurance Plans, Personal Accident Insurance Plans, Mediclaim Policies and Travel Insurance. Each product is designed to address specific health and financial protection needs, ensuring coverage for routine healthcare, emergencies, and even unforeseen events like accidents or critical illnesses. This comprehensive approach positions Niva Bupa as a reliable partner in safeguarding the health and well-being of millions across the country.

    Niva Bupa Health Insurance Company – Challenges Faced

    Niva Bupa Health Insurance faces several challenges in a dynamic and highly competitive industry. Regulatory risks are a constant factor, as government policies and regulatory changes can impact the company’s operations and long-term strategies. The competitive landscape of India’s insurance sector demands continuous innovation and the introduction of value-added services to differentiate itself and retain market share. Additionally, efficient claim management is crucial to handle its growing customer base, as delays or inefficiencies can affect both profitability and customer satisfaction.

    Economic slowdowns pose another challenge, particularly in driving demand for health insurance products among lower-income groups, where affordability becomes a critical issue. Niva Bupa’s claim settlement ratio of 91% in FY24, which was below the industry average of 96%, indicates room for improvement in addressing customer needs. Moreover, the company’s high expense ratio, averaging 43% from FY22 to FY24, is among the highest in the industry, potentially affecting profitability. Lastly, Niva Bupa’s relatively smaller hospital and agency network, compared to competitors like ICICI Lombard, HDFC Ergo and New India Assurance, limits its accessibility and reach, highlighting the need for further expansion in this area.

    Niva Bupa Health Insurance Company – Funding and Investors

    Niva Bupa has raised a total of INR 890 crores across three funding rounds. They are as follows:

    Date Transaction Name Money Raised Investors
    Oct 12, 2023 Private Equity Round INR 800 cr –
    March 15, 2021 Corporate Round INR 9 cr Axis Bank
    Jan 1, 2019 Private Equity Round – –

    Niva Bupa Health Insurance Company – Growth

    The following table summarizes the financial performance, showing how the company’s revenues, expenses, and profits/losses evolved over the three years.

    Financials FY22 FY23 FY24
    Operating Revenue INR 1,877.35 cr INR 2,853.07 cr INR 4,115 cr
    Total Expenses INR 2,355.22 cr INR 3,214.78 cr INR 4,254.41 cr
    Profit/Loss Loss of INR 196.53 cr Profit of INR 12.54 cr Profit of INR 81.85 cr
    Niva Bupa Health Insurance Company Financials
    Niva Bupa Health Insurance Company Financials

    Niva Bupa Health Insurance Company – Advertisements and Social Media Campaigns

    Max Bupa Unveils Rebranded Identity with New Campaign

    "Zindagi Ko Claim Kar Le" Campaign
    “Zindagi Ko Claim Kar Le” Campaign

    Max Bupa, now rebranded as Niva Bupa, has launched its first campaign under its new identity titled “Zindagi Ko Claim Kar Le” (Claim Life), emphasizing its refreshed business philosophy and commitment to humanizing health insurance. The campaign introduces the concept of ‘one family, one health insurance’, highlighting Niva Bupa’s flagship product, Heartbeat Family First, which uniquely offers coverage for up to five generations under a single policy—a first in India.

    Sevantika Bhandari, Director of Marketing at Niva Bupa, explained, “Our new campaign is based on the insight that families’ health is a key priority for people across India. We want to tell our customers that with Niva Bupa, it is possible to have one health insurance for the entire family.”

    Conceptualized by Glue Creatives, the campaign underscores the brand’s focus on providing comprehensive, family-centric solutions and aligns with its mission to make health insurance more inclusive and accessible. Delivered through a 360-degree marketing approach, it spans traditional platforms such as TV, print, and radio, while also leveraging digital channels to connect with modern audiences.

    This campaign not only marks Niva Bupa’s rebranding journey but also reinforces its position as a trusted name in the health insurance sector, committed to safeguarding the health of Indian families with innovative and inclusive offerings.

    ‘Ye to Mujhe Bhi Chahiye’ campaign

    ‘Ye to Mujhe Bhi Chahiye’ campaign
    ‘Ye to Mujhe Bhi Chahiye’ campaign

    Niva Bupa Health Insurance launched an innovative campaign titled ‘Ye to Mujhe Bhi Chahiye’, designed to engage both current and prospective policyholders. The campaign tackled a significant challenge many face when considering health insurance—the concern over unclaimed premiums going to waste.

    To address this, Niva Bupa introduced its ‘Reassured 2.0’ plan, which offers a game-changing feature: the option to carry forward unused premiums. This means that if policyholders don’t make any claims, they can still utilize their premiums in future policy years, ensuring that their money doesn’t go to waste.

    The campaign featured three creative ad films, each focusing on how the ‘carry forward’ benefit works, making it clear that health insurance with Niva Bupa offers more value and flexibility for customers. By highlighting this unique feature, Niva Bupa aimed to change the way people perceive health insurance, promoting it as a long-term, beneficial investment.

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    Niva Bupa Health Insurance Company – Awards and Achievements

    • Best Standalone Health Insurer: Won at the Mint BFSI Summit and Awards in 2023.
    • Healthcare Insurance Company of the Year: Awarded by the Internet and Mobile Association of India (IAMAI).
    • Great Place to Work Certification: Achieved for the fourth consecutive year in 2023.
    • Top 25 India’s Best Workplaces in BFSI: Recognized in 2024.
    • CX Strategy of the Year: Awarded at the 14th edition of the CX Strategy Summit & Awards in 2023.
    • ESG 2023: Won the Golden Peacock Award for excellence in Environmental, Social and Governance practices.
    • Swift & Prompt Insurer: Recognized at the Annual Insurance Summit & Awards.
    • The Economic Times Best Brands 2019: Awarded by The Economic Times and Nielsen.
    • Product of the Year: For GoActive Health Insurance Plan (Awarded by Nielsen in 2018).
    • Golden Peacock Award 2015: For Heartbeat Health Insurance Plan.
    • IT Management Best Practices: Awarded at the Celent Model Insurer Asia Awards in 2016.
    • Best Product Innovation Award: Awarded for innovation in insurance products.

    Niva Bupa Health Insurance Company – Competitors

    Niva Bupa faces strong competition from several industry leaders and emerging players such as Insurance Padosi and Bridge Health. The list goes on:

    1. Star Health and Allied Insurance
    2. Care Health Insurance
    3. SEB
    4. Apollo Munich Health Insurance
    5. Max Bupa Insurance
    6. Mom’s Belief Care

    Niva Bupa Health Insurance Company – Future Plans

    Regional Expansion:

    • Niva Bupa is on track to expand its presence across 600 cities by the end of FY 23-24, enhancing accessibility to its health insurance services.

    Hospital Network Growth:

    • The company plans to increase its hospital network from 7,600 to 10,000 by the end of FY 23-24, offering customers a wider choice of cashless medical facilities.

    Bancassurance Partnerships:

    • Niva Bupa is set to increase its bancassurance partnerships to 15, aiming to lead the sector with the highest number of partnerships.

    Coverage Expansion:

    • The insurer targets covering 10 million lives by the close of FY 23-24, solidifying its position as a leading player in the health insurance space.

    Gross Written Premium (GWP):

    • Niva Bupa is aiming for a GWP milestone of INR 5,000 crore by the end of FY 23-24, reflecting its strong growth trajectory.

    IPO Plans:

    • To capitalize on India’s growing health insurance market, Niva Bupa plans to raise ₹2,200 crore through its IPO.
      • ₹800 crore will come from a fresh issue of shares to augment its capital base.
      • ₹1,400 crore will be raised via an offer for sale by promoters.
      • Anchor investors have already committed INR 990 crore, underscoring investor confidence.

    Post-IPO Stake Adjustments:

    • Bupa Singapore Holdings’ stake will decrease from 62.2% to 56%.
    • True North, a private equity firm, will reduce its stake from 26.8% to 17.5%.

    These initiatives highlight Niva Bupa’s commitment to scaling its operations and reinforcing its market presence.

    FAQ

    Who is Niva Bupa owned by?

    Niva Bupa Health Insurance Company Ltd. (formerly known as Max Bupa Health Insurance Company Limited) is a joint venture between the Bupa Group and Fettle Tone LLP.

    When was Niva Bupa founded?

    Niva Bupa was founded in 2008, making it 16 years old as of 2024.

    Who is the CEO of Niva Bupa Health Insurance Company?

    The CEO of Niva Bupa Health Insurance Company is Krishnan Ramachandran.

  • CarDekho – How It Finds the Right Cars for the Users?

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

    The emergence of the internet has transformed the car-buying experience positively, making it much more accessible and convenient than before. Today we have a lot of online portals that will take you through the process effortlessly. One such portal is CarDekho.

    Founded by Amit Jain and Anurag Jain in 2008, CarDekho is a prominent car search venture that helps users find fitting new and old car variants and buy them without any hassles.

    Here’s the StartupTalky article to know about CarDekho, its founders, competitors, business and revenue model, startup story, funding, investors, acquisitions, and more.

    CarDekho – Company Highlights

    Startup Name CarDekho
    Headquarters Jaipur, Rajasthan, India
    Sector Automotive, Ecommerce
    Founder Amit Jain, Anurag Jain, Umang Kumar
    Founded 2008
    Valuation $1.2 Billion (as per December 2024)
    Website cardekho.com

    CarDekho – About
    CarDekho – How it Works?
    CarDekho – Industry
    CarDekho – Founders and Team
    CarDekho – Startup Story
    CarDekho – Startup Launch
    CarDekho – USP and Innovation
    CarDekho – Mission and Vision
    CarDekho – Name, Logo and Tagline
    CarDekho – Business Model
    CarDekho – Revenue Model
    CarDekho – Employees
    CarDekho – Challenges Faced
    CarDekho – Funding and Investors
    CarDekho – Mergers and Acquisitions
    CarDekho – Partnerships
    CarDekho – Growth
    CarDekho – Advertisements and Social Media Campaigns
    CarDekho – Awards and Achievements
    CarDekho – Competitors
    CarDekho – Future Plans

    CarDekho – About

    CarDekho, a creation of ‘GirnarSoft‘ founded by Amit and Anurag Jain, stands as a comprehensive online platform dedicated to all things automotive. Both the web app and the CarDekho.com website house a wealth of rich automotive content. This includes expert reviews, detailed specifications, pricing information, and car comparisons, as well as an extensive collection of pictures and videos covering a diverse array of car brands and models available in India.

    Furthermore, CarDekho provides valuable insights into the automobile industry, ensuring users stay updated with fresh content, recent launches, and industry trends.

    CarDekho – How it Works?

    CarDekho offers consumers a smooth 360-degree experience by acting as a virtual auto dealer. Users of the platform can peruse through a number of categories, future autos, and new releases. Furthermore, CarDekho has its own online store with a large selection of automobile accessories, including sun films, car stereos, stickers, floor mats, and more. In addition, it also provide car loan for new car used car and refinances for the existing car.

    Company maintains an active automotive forum where industry professionals and reviewers respond to user-posted questions about cars in an effort to promote community involvement. In general, CarDekho creates a comprehensive and effective automobile platform by fusing technological know-how with user-friendly interfaces.

    CarDekho is the product of ‘GirnarSoft’ owned by the founder duo, Amit and Anurag Jain. CarDekho is a web app that has almost anything and everything about an automobile. Both the app and the CarDekho.com website boast rich automotive content including but not limited to expert reviews, detailed specs, and prices of cars, comparisons of cars, pictures, and videos of an exhausting range of car brands and models available in India.

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    CarDekho – Industry

    India’s automotive market grew rapidly, hitting $121.5 Billion in 2024 and expected to reach $247.4 Billion by 2033, with a notable compound annual growth rate (CAGR) of 7.13 % from 2024 to 2033. India is a well-known center for the production of automobiles worldwide. Its low production costs are a result of cheap labor, a plentiful supply of raw materials, and a depreciating currency. India is a key player in the global automotive industry, producing more than 4 million cars a year, making it the fourth largest automobile producer in the world.

    CarDekho – Founders and Team

    Amit Jain and Anurag Jain are the founders of CarDekho. Amit Jain is the CEO and co-founder, while Anurag Jain acts as the COO and co-founder at CarDekho. Umang Kumar has also been the President and co-founder of the company.

    Amit Jain

    Amit Jain - Co-founder and CEO at CarDekho
    Amit Jain – Co-founder and CEO at CarDekho

    Amit Jain is an IIT Delhi alumnus from where he obtained a BTech degree before going on to join Tata Consultancy Services. Leaving TCS after serving the company for around one year, Amit joined Trilogy, where he went to be a Product Manager. Jain next started with GirnarSoft as the CEO and co-founder of the company, which he is still serving at the present. Amit Jain is also the CEO and co-founder of CarDekho.

    Anurag Jain

    Anurag Jain - Co-founder and COO at CarDekho
    Anurag Jain – Co-founder and COO at CarDekho

    Anurag Jain is also an IIT Delhi alumnus who has obtained an Integrated Master of Technology in Mathematics and Computing. Jain was a Senior Systems Consultant at i2 Technologies after which he joined Sabre Holdings as a Senior Operations Research Analyst. Anurag is serving as the COO and co-founder at GirnarSoft.

    Both the founder and his brother were born on November 12th, and they both finished their education at St. Xavier’s School in Jaipur. Both of them continued their education at IIT Delhi, where Anurag studied computer science and mathematics and Amit chose to major in civil engineering. Amit was interested in products and technology-related items because he and his brother had worked in the corporate sector for about eight years, having worked for businesses such as TCS and Trilogy.

    Umang Kumar

    Umang Kumar - Co-Founder and President at CarDekho
    Umang Kumar – Co-Founder and President at CarDekho

    Umang Kumar was earlier the co-founder of Gaadi.com, but ever since the latter has been acquired by CarDekho, Kumar has been associated with the team, where he has been serving as the co-founder and President at CarDekho. Umang Kumar is an alumnus of Visvesvaraya Technological University, from where he obtained a BE degree in Computers. Kumar next went on to pursue a Post Graduate Diploma in Management from the Indian School of Business and then joined the Harvard Business School for the Naspers program in General Management, Strategy and Leadership. Before joining Gaadi Web as the co-founder and CEO, Umang founded another company, Accentium Web. During his career, Umang served a couple of other companies, 9.9 Mediaworx and ABP, where he served in key leadership positions.

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    CarDekho – Startup Story

    In January 2008, the Delhi Auto Expo inspired brothers Amit and Anurag Jain to start their own business to make buying a car easier. Cardekho.com was launched in March 2008, with the brothers starting the business from their garage foundation. As a result of their vision and influence on the automobile retail industry, their creation is valued at an astounding $1.2 billion.

    In the early days of their startup journey, the Jain brothers encountered initial challenges, particularly in their outreach to potential customers through phone calls and emails. When they finally got their first client, their persistence paid off, and they embarked on a modest but eventually fruitful journey that led to several referrals and more jobs. CarDekho’s early success served as the impetus for its growth. Equipped with an expanding workforce, amassed capital, and a well-defined idea, they formally introduced CarDekho, signifying a noteworthy turning point in their endeavor to revolutionize the automotive sector.

    CarDekho – Startup Launch

    A lot of thought and conceptualizing went into building CarDekho after its launch. Even though the company had been launched, they kept their IT consultancy services ongoing because the founders wanted the primary income to keep flowing. CarDekho is one of those companies that take the consumer through the whole process, from the start to the end and during the process, to make sure that the customer is satisfied.

    Like all the other entrepreneurial ventures, this company too was a little slow in the beginning, but when it geared up the pace, the founders never looked back. And soon enough, its numbers did the talking when they roared success out loud to the world.

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    CarDekho – USP and Innovation

    CarDekho.com has launched many innovative features to ensure that users get an immersive experience of the car model before visiting a dealer showroom. The standout feature is the “Feel The Car” tool, providing a 360-degree view of the car’s interior and exterior. It goes beyond visuals, incorporating authentic sounds and feature explanations through engaging videos. It also offers features for searching and comparing cars by the makes, models, prices, features, and more. Furthermore, it also provides live offers and promotions in all cities.

    Along with the above consumer product features, CarDekho.com provides a rich array of tech-enabled tools to OE manufacturers and car dealers. These consist of lead management applications for dealer sales executives, call tracking services, cloud-based sales performance monitoring, digital marketing assistance, virtual online showrooms, and outsourced lead management operational procedures that move customers from inquiry to sale.

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    CarDekho – Mission and Vision

    The company’s vision is to establish a comprehensive ecosystem that links automakers, dealers, consumers, and associated businesses. There goal is to make it simple for customers to buy and sell cars while handling every aspect of car ownership, such as coordinating the purchase of accessories, tires, batteries, insurance, and roadside help.

    CarDekho – Name, Logo and Tagline

    CarDekho Logo
    CarDekho Logo

    The naming of CarDekho has been done because the website aims to help users to browse through cars and car-related information. The tagline of CarDekho says, “Bharosa Kar Ke Dekho.”

    CarDekho – Business Model

    CarDekho operates as a pivotal online marketplace, serving as a nexus between buyers and sellers of automobiles. Its fundamental business model centers on offering consumers an all-encompassing platform for researching, comparing, and acquiring both new cars. As an information-based e-commerce platform, CarDekho delivers insightful content to cater to auto enthusiasts. Moreover, it seamlessly functions as an eCommerce platform, ensuring a seamless and convenient experience for individuals immersed in the car-buying process.

    CarDekho – Revenue Model

    The revenue model of CarDekho has been simple and clear-cut since day 1.

    Here are the primary mediums through which CarDekho earns its revenues:

    Advertising: To help automakers and dealerships advertise their goods and services, CarDekho provides a range of advertising alternatives. On its website and mobile app, the business charges for sponsored content, banner ads, and display ads.

    Lead Generation: CarDekho seamlessly connects manufacturers and vehicle dealerships with potential customers, generating leads. The fee for each lead is customized based on the buyer’s budget and level of interest, ensuring a dynamic and value-driven cost structure.

    Subscription Model: CarDekho presents a premium subscription model, “CarDekho Plus,” offering users exclusive benefits like discounts, free insurance, and extended warranties. The service comes at a fee, renewable annually.

    Affiliate Marketing: Partnering with third-party companies, CarDekho promotes products and services related to cars, earning commissions for each sale through its affiliate links.

    Subscription Model: CarDekho presents a premium subscription model, “CarDekho Plus,” offering users exclusive benefits like discounts, free insurance, and extended warranties. The service comes at a fee, renewable annually.

    Affiliate Marketing: Partnering with third-party companies, CarDekho promotes products and services related to cars, earning commissions for each sale through its affiliate links.

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    CarDekho – Employees

    In February 2020, CarDekho announced a secondary sale, enabling eligible employees to redeem 50% of their vested options through GirnarSoft Group’s ESOP Exercise. The company valued this cash-out at approximately $3.5 million. Notably, this marked the second instance of such a scheme in FY20, following the initial ESOP cash-out in April 2019, where CarDekho successfully bought ESOPs amounting to $2 million.

    CarDekho – Challenges Faced

    CarDekho’s early difficulties included raising awareness in a market devoid of significant competitors. In order to get past this, the business made significant marketing investments, provided discounts, and expanded into the used and new car markets, eventually leading the way as an online marketplace for automobile sales.

    Faced with competition from the used car industry, CarDekho made a calculated decision to enter the new car market, becoming one of the first companies to provide an online platform for new car purchases. This action not only addressed the fierce competition but also strengthened CarDekho’s standing as a pioneer in automobile retail innovation.

    CarDekho – Funding and Investors

    So far, CarDekho has raised $501.1 million spread across 10 funding rounds to date.

    Here are the funding details for CarDekho:

    DATE STAGE AMOUNT INVESTORS
    October 13, 2021 Series E $200 million LeapFrog Investments
    October 13, 2021 Debt financing $50 million –
    December 5, 2019 Series D $70 million Ping An Global Voyager Fund
    January 3, 2019 Series C $110 million CapitalG, Hillhouse Capital Group, Peak XV Partners
    July 20, 2018 Series B $2.99 million Trifecta Capital Advisors
    March 21, 2018 Series B $2.5 million Peak XV Partners
    March 21, 2016 Venture Round – CapitalG
    May 28, 2015 Venture Round – HDFC Bank
    January 29, 2015 Series B $50 million –
    November 27, 2013 Series A $15 million Peak XV Partners

    CarDekho.com, which went live in 2008, was set up by a bunch of young, enthusiastic IIT graduates. Its investors include Google Capital, Tybourne Capital, Hillhouse Capital, Sequoia Capital, HDFC Bank, Ratan Tata, and Times Internet.

    CarDekho – Mergers and Acquisitions

    CarDekho has acquired 3 companies.

    COMPANY ACQUIRED DATE OF ACQUISITION AMOUNT
    Revv Dec 1, 2023 –
    Carmudi Philippines Nov 28, 2019 –
    Gaadi Web Sep 30, 2014 $11 million

    CarDekho – Partnerships

    Girnar AI Innovations Lab

    Amit Jain’s CarDekho and Girnar AI Innovations have teamed up to revolutionize customer support with AI-powered solutions. Their platform, Uservox.ai, uses voice bots, chatbots, and conversational tools to create personalized and efficient customer interactions. This collaboration aims to enhance engagement and streamline customer experiences.

    CarDekho – Growth

    In its fourth year, CarDekho had already served 2.5 crore visitors by January 2012, reaching the pinnacle of success with a record 1.7 lakh used car sales across India. The launch of its iOS app, following the Android version, resulted in 100,000 downloads within a month, doubling web portal visitors and tripling revenues. By 2014, with a team of over 600 employees, CarDekho expanded its offerings with portals like BikeDekho and PriceDekho.

    In 2019, CarDekho significantly expanded its reach by collaborating with 3,000 used car dealers, 4,000 new car dealerships, ten financial institutions, and eighteen insurance providers in India. This strategic network aimed to simplify processes like used car financing and insurance, offering a more streamlined experience for both buyers and sellers in the automotive market. Concurrently, CarDekho introduced Gaadi by CarDekho and inaugurated CarDekho stores in the National Capital Region (NCR) in January 2019, diversifying its services to cater to a broader audience.

    In September 2021, CarDekho shifted its strategy to require thorough home inspections before car purchases, resulting in the closure of over 20 stores. This move reflects CarDekho’s confidence in the efficiency of the home inspection model, prompted by changing market dynamics post the COVID-19 crisis and showcasing the company’s adaptability to industry challenges.

    CarDekho launched Rupyy

    This new platform offers a whole new horizon of financing alternatives to the customers and retailers of automobiles. With the birth of Rupyy, CarDekho aims to empower customers with easy and convenient methods to apply for and receive approval for their auto-financing requirements. According to the CarDekho statement, Rupyy is an end-to-end digital platform that is designed to make the loan journey smooth and hassle-free for customers.

    Rupyy work via a QR code-based onboarding process at vehicle dealerships and loan companies. This QR code-based process guides the customers with a self-help path running video KYC, e-NACH, and e-Agreement technologies, which helps them approve their loans right at the point of sale within a few minutes.

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    Financials

    CarDekho Financials FY21 FY22 FY23 FY24
    Operating Revenue INR 884 crore INR 1,597 crore INR 2,332 crore INR 2,250 crore
    Total Expenses INR 1,277 crore INR 2,170 crore INR 2,921 crore INR 2,669 crore
    Profit/Loss Loss of INR 343 crore Loss of INR 535 crore Loss of INR 566 crore Loss of INR 640 crore
    CarDekho Financials
    CarDekho Financials

    Expenses

    CarDekho total expenses dropped from INR 2,921 crore in FY23 to INR 2,669 crore in FY24.

    EBITDA

    CarDekho Financials FY21-FY24 FY21 FY22 FY23 FY24
    EBITDA Margin -32.34% -28.63% -19.23% -9.19%
    Expense/Rs of Op Revenue INR 1.44 INR 1.36 INR 1.25 INR 1.19
    ROCE -36.94% -25.71% -21.6% -9.2%

    CarDekho – Advertisements and Social Media Campaigns

    CarDekho Campaign

    The auto-tech startup CarDekho, along with brand ambassador Akshay Kumar, presented advertising campaign called “Sapna re.” The brand has emphasized in the advertisement the importance of fulfilling the desire of car ownership for Indian middle-class consumers. Akshay Kumar makes an appearance in a new guise in this campaign as a father who has promised to purchase his little child a car.

    CarDekho – Awards and Achievements

    Some of the noteworthy awards that CarDekho received in its early days were:

    • “Best” and “Most Popular” Auto Website of 2016
    • Website of the Year India 2014 in Automobile Category
    • Best Car Website of 2012
    • Most Popular Website of 2012
    • Website of the Year, India 2011 and 2012
    • Best Automotive Website of 2009

    CarDekho – Competitors

    Other online marketplaces in India that deal with and cater to the same set of the target audience are:

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    CarDekho – Future Plans

    CarDekho was looking to expand its business to Southeast Asian markets as per news of 2021. The company, according to the co-founder and President Umang Kumar, was aiming to establish its leadership in the automobile ecosystem of the region. CarDekho has expanded its footprints into Southeast Asia following the acquisition of Carmudi, as per news on October 4, 2023.

    Mayank Gupta, CarDekho Group CFO, regarding the startup’s growth plans, said, “With scale, leverage, efficiencies, and process improvements, we are trying to contribute towards our total EBITDA level profitability, and that is what we intend to achieve before the IPO.”

    CarDekho has therefore kept its growth plans on track and expects great growth in the future.

    CarDekho plans to file its DRHP by March 2025, aiming to raise $500 million (INR 4,100 crore) with an IPO valuation of $2–2.5 billion, nearly double its 2021 valuation of $1.2 billion. The company focuses on enhancing customer experiences through advanced, personalized technologies.

    FAQs

    Who is CarDekho Founder?

    Amit Jain and Anurag Jain are the founders of CarDekho. Umang Kumar has also been the co-founder of the company since CarDekho acquired Gaadi.com.

    Is Cardekho reliable? How are CarDekho cars?

    Yes, CarDekho is reliable. It is, in fact, one of the most trusted places for certified pre-owned cars. CarDekho cars are thoroughly inspected and come with a 6 months warranty along with a 7-day money-back guarantee.

    What is CarDekho net worth?

    CarDekho has a net worth of $1.2 billion as of December 2024.

    Who is Amit Jain?

    Amit Jain is the CEO and co-founder of CarDekho.

    What is CarDekho Revenue Model?

    The primary mediums through which CarDekho earns its revenue are:

    • AdSense
    • Sponsored Advertisements
    • Commissions from the manufacturers and dealers
    • Affiliate marketing
    • Lead generation
    • Car insurances

    How much funding has CarDekho raised?

    So far, CarDekho has raised a total of $501.1 million spread across 10 funding rounds to date.

  • Acko – India’s pioneer in digital Insurer!

    In an unpredictable world where fraud is a constant, insurance offers a consoling barrier against life’s transience, safeguarding our vehicles and personal safety. However, not all insurance providers embrace the notion of zero commissions and an exclusively online business model. A notable exception to this norm is Acko, which is rapidly gaining favor for its innovative approach and customer-centric practices.

    Acko is committed to offering Indians high-quality insurance options. The company’s extraordinary growth and influence on the insurance industry have earned it unicorn status.

    In this article, we will delve into the successful journey of Acko, its founder, business model, funding, competitors, and more.

    Acko – Company Highlights

    STARTUP NAME ACKO
    Headquarters Bangalore, Karnataka, India
    Sector Insurance
    Founders Varun Dua, Ruchi Deepak
    Founded 2016
    Valuation $1.4 Billion (as of December 2024)
    Website acko.com

    Acko – About
    Acko – Industry
    Acko – Founders and Team
    Acko – Startup Story
    Acko – Mission and Vision
    Acko – Name and Logo
    Acko – Products and Services
    Acko – Business Model
    Acko – Revenue Model
    Acko – Esops
    Acko – Shareholders
    Acko – Funding And Investors
    Acko – Investments
    Acko – Acquistions
    Acko – Growth
    Acko – Partnerships
    Acko – Advertisements and Social Media Campaigns
    Acko – Awards and Achievements
    Acko – Competitors
    Acko – Future Plans

    Acko – About

    Acko General Insurance is a private general insurance company operating in India. The company has received its license from the Insurance Regulatory and Development Authority of India (IRDA) in September 2017. Acko boasts of an online model of insurance, with the help of which it offers its customers premium insurance facilities and bite-sized insurance products with zero commissions. All the operations of the company take place through its digital platform, thereby removing the need for any paperwork.

    Acko – Industry

    The International Trade Administration’s estimate indicates that India’s insurance market is expected to grow at a quick pace and reach a valuation of $280 billion by 2025. This significant increase is propelled by an impressive compound annual growth rate (CAGR) ranging from 12% to 15%.

    The population’s increased knowledge of the importance of insurance and the concurrent rise in disposable incomes are the main causes of this amazing expansion. The aforementioned characteristics indicate a growing market trend in the insurance industry that is consistent with the changing economic conditions.

    Acko – Founders and Team

    Varun Dua, Founder and CEO, and Ruchi Deepak, Founder and Board Member founded Acko in 2016.

    Varun Dua

    Varun Dua, Founder and CEO of Acko
    Varun Dua, Founder and CEO of Acko

    Varun Dua is the CEO and the founder of the company, Acko. He completed his education at MICA, Ahmedabad, and the University of Mumbai. After finishing his graduation, Varun served as a trainee at Leo Burnett Advertising for less than a year. He then started his career as a marketing manager at Tata AIG Life Insurance and Franklin Templeton Investments. Varun then founded Coverfox Insurance Broking Pvt. Ltd. Before he founded Coverfox in 2013, Varun founded Glitterbug Technologies. Varun Dua holds a prominent role as one of the Sharks on Season 3 of Shark Tank, adding his expertise and insights to the entrepreneurial landscape.

    Ruchi Deepak

    Ruchi Deepak, Founder and Board Member of Acko

    Ruchi Deepak, a distinguished entrepreneur, serves as both the founder and Board Member of Acko, a pioneering platform in the insurance industry. After completing her studies at Lady Shri Ram College for Women, she set off on a voyage that went beyond the classroom. Her subsequent appointment as a board member at Pitstop further demonstrated her wide range of experience and allowed her to share her perspectives on convenience and car maintenance. She also founded Airloom where she is serving as the founder and CEO, this demonstrates her dedication to leadership and innovation.

    Acko – Startup Story

    Acko was founded by Varun Dua and Ruchi Deepak in 2016 as the first digital insurance service provider in India. Varun and Ruchi identified two major problems in the insurance industry before starting Acko. They saw how difficult and opaque the procedures were, especially when it came to simple things like auto insurance. They also understood the complexities involved in determining insurance premiums and sought to develop a pricing strategy that would be more accommodating to customers.

    “We saw a huge opportunity that a digitally empowered insurance company could unlock both in terms of customer experience and enterprise value. My co-founder Varun Dua and I decided to pursue it,” added Ruchi.

    The Indian insurtech market, which was formerly dominated by multi-insurance companies, underwent a change in 2018 as general insurance received more money and attention. Seizing this opportunity, Varun and Ruchi established Acko and positioned it as a force for disruption. Acko joined the market with the goal of revolutionizing the insurance sector and providing a more open and approachable insurance experience by streamlining insurance procedures and pricing.

    Acko – Mission and Vision

    The mission on the company’s website states, “To always prioritise you in everything we do.”

    The vision of the company is to deliver outstanding value to its customers.

    Acko Logo
    Acko Logo

    Acko General Insurance is under the umbrella of its parent organization, Acko Technology & Services Private Limited.

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    Acko – Products and Services

    Acko Products

    Acko General Insurance provides exclusive Acko mobile insurance, Acko car insurance, Acko bike insurance, Acko Group Health insurance, and more. Let’s check out some of these insurances and how they work:

    Acko Car Insurance – Acko car insurance policy offers coverage for numerous care-related risks. Opting for car insurance from Acko helps the users get financial assistance in case their own car faces damage.

    Acko Bike Insurance – The Acko Bike Insurance plan offers extensive coverage for two-wheelers, protecting against damages, total loss, and theft. With Acko Bike Insurance, one can get a comprehensive policy that ensures financial security in various scenarios, providing peace of mind and a secure riding experience.

    Acko Health Insurance – Acko Health Insurance offers comprehensive coverage for medical expenses, ensuring financial protection and access to quality healthcare. Tailored for individual well-being, Acko’s plans provide a reliable safety net for unexpected health challenges.

    Acko Life Insurance: When it comes to life insurance, Acko offers a convenient online option that allows you to purchase coverage directly from your mobile phone. This eliminates the need for physical meetings and offers various plan options, including Term Life Insurance, Whole Life Insurance, and Endowment Plans. Acko’s online approach ensures a hassle-free experience, providing flexibility and ease in choosing the right coverage for your needs.

    Acko Travel Insurance: Acko Travel Insurance offers comprehensive coverage for risks and financial losses during your travels. Acko’s travel insurance offers a safety net in case of flight delays, cancellations, misplaced bags, or medical crises. With the policy’s flexibility to accommodate both single and numerous journeys, customers can explore the world with confidence, knowing that unforeseen expenses will be taken care of. With Acko’s dependable and adaptable travel insurance options, customers can travel with confidence.

    Acko – Business Model

    Acko adopts a direct-to-consumer business model, leveraging its online platform to efficiently distribute traditional insurance products, thereby enabling advantageous risk selection and underwriting. Acko distinguishes itself by providing unique and user-friendly insurance options, such as rider insurance, mobile and appliance protection, ticket cancellation, and more, in addition to extensive coverage for cars and health.

    This varied portfolio not only satisfies changing client demands but also showcases the company’s dedication to offering innovative and customized insurance products via an efficient digital platform.

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    Acko – Revenue Model

    Acko strategically uses multi-faceted methods to diversify its sources of income:

    Premiums: Acko’s primary source of income is the gathering of premiums from a wide range of clients, including both private and business customers. Selling complete insurance coverage is the cornerstone of this strong financial base.

    Commissions: Acko increases its revenue by receiving commissions from affiliated businesses, making use of joint ventures to offer insurance products to their clients or staff members as value-added services. The company’s financial resiliency is enhanced by this win-win strategy.

    Data Monetization: By gathering useful consumer data, Acko’s data-driven approach not only makes it easier to identify risks effectively but also opens up new revenue streams. This data is used for analytics, advertising, and targeted marketing, demonstrating Acko’s skill in extracting value from its information repository and enhancing its entire business plan.

    Acko Life Flexi Term Plan: Acko has introduced its first Life Insurance product, the Acko Life Flexi Term Plan. This digital-first policy offers flexible coverage and simplifies long-term financial protection.

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    Acko – Esops

    With the $2 million Employee Stock Ownership Plan (ESOP) liquidity program, which benefited about 40 long-term team members, Acko reached a significant milestone in 2021. The initiative acknowledged the commitment and hard work of eligible employees by allowing them to liquidate 40%–100% of their vested ESOP after working for Acko for three years.

    This calculated action demonstrates Acko’s dedication to creating a work environment where team members are valued and appreciated for their crucial contribution to the expansion and success of the business.

    Acko – Shareholders

    Acko Shareholding as of December 2023 (source: Tracxn):

    Acko Shareholders Percentage
    Varun Dua 3.9%
    General Atlantic 20.6%
    Elevation Capital 6.3%
    Accel 8.9%
    Lightspeed Venture Partners 5.2%
    FPGA Family Foundation 5.1%
    Multiples Alternate Asset Management 4.9%
    CPP Investments 4.8%
    Intact Ventures 4.5%
    Munich Re Ventures 3.9%
    Amazon 3.7%
    Angel 5.4%
    ESOP Pool 8.6%
    Others 14.2%
    Acko Shareholders
    Acko Shareholders

    Acko – Funding And Investors

    Acko has raised a total of $458 million in funding over the 9 funding rounds.

    Here are the funding details:

    Date Transaction Name Money Raised Lead Investors
    June 7, 2023 Private equity Round – General Atlantic
    May 25, 2023 Series E – –
    October 27, 2021 Series D $255 million General Atlantic, Multiples Alternate Asset Management Private Limited
    September 15, 2020 Series D $60 million Munich Re Ventures
    November 28, 2019 Venture Round $36 million Ascent Capital, Binny Bansal
    March 13, 2019 Series C $65 million Amazon
    May 27, 2018 Series B $12 million Amazon
    May 23, 2017 Seed Round $30 million Kris Gopalakrishnan and N.R.Narayana Murthy

    Acko – Investments

    Acko made a INR 50 crore investment in MyGate on November 23, 2022, as part of their fundraising round.

    Acko – Acquistions

    Acko expanded its portfolio on March 15, 2023, with the acquisition of Parentlane. This follows its earlier acquisition of vLer on June 3, 2019, highlighting Acko’s strategic growth approach and commitment to enhancing its market position.

    In July 24, 2024, Acko acquired the digital chronic care platform OneCare to enhance its healthcare offerings. OneCare’s co-founders will join Acko’s leadership team.

    Acko – Growth

    The digital insurance firm Acko is still growing at a very impressive rate as of January 2024, and some significant growth highlights its standing in the market:

    • Over 2.8 crore customers are served by Acko’s insurance services, demonstrating the company’s broad client base’s trust.
    • Acko’s ability to provide a wide range of insurance solutions to its clientele is demonstrated by the issuance of over 8 crore policies.
    • Acko consistently maintains an exceptional 94.54% claim settlement ratio, demonstrating its dedication to prompt and equitable resolutions and fostering trust among policyholders.
    • Acko is known for its efficiency and sets industry standards. As of January 2024, they settled claims in just 12 minutes, which is evidence of their responsive and efficient processes.

    Financials

    Acko Financials FY22 FY23 FY24
    Operating Revenue INR 1,334 crore INR 1,758 crore INR 2,106 crore
    Total Expenses INR 1,835 INR 2,535 crore INR 2,830 crore
    Profit/Loss Loss of INR 482 crore Loss of INR 738.5 crore Loss of INR 670 crore
    Acko Financials
    Acko Financials

    Expenses Breakdown

    Acko total expenses have increased from INR 2,535 crore in FY23 to INR 2,830 crore in FY24.

    EBITDA

    Acko FY22-FY24 FY22 FY23 FY24
    EBITDA Margin -34.50% -40.55% -30.10%
    Expense/Rs of Operation Revenue INR 1.38 INR 1.44 INR 1.34
    ROCE -57.08% -54.98% -35.23%

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    Acko – Partnerships

    Acko has seen some partnerships since it started as a company. To mention, some of the prominent ones are:

    CRED

    CRED has partnered with ACKO General Insurance to provide motor insurance with dynamic pricing. Members with higher credit scores benefit from reduced premiums.

    Mygate

    MyGate, in collaboration with Acko General Insurance, has secured an IRDAI aggregator license to offer insurance policies with exclusive pricing and a broader range of products.

    Greaves

    Greaves’ evfin partners with ACKO to provide tailored financing and affordable insurance options, simplifying access for EV users.

    Ola

    Acko collaborated with Ola to launch an in-trip insurance program that is running in over 110 cities.

    Amazon

    The company partnered with Amazon India to bring in mobile insurance plans on the website of the seller.

    Amazon Pay

    With Amazon Pay, Acko witnessed another partnership, which helped the startup launch an auto insurance policy in July 2020.

    HDB Financial Services

    Acko also collaborated with HDB Financial Services and offered HDBFS insurance for the customers, which doesn’t have any additional costs with EMI cards.

    Ather

    In order to provide a special extended battery warranty plan in April 2023, the company has partnered with Ather.

    Lohum

    In order to recycle and reuse batteries, Lohum, a producer of sustainable energy transition materials, and ACKO have a partnership in May 2023. This will allow EV battery insurance in the nation to include provisions for recycling and reusing the batteries.

    Multipl

    ‘Invest now, Spend later’ platform Multipl has partnered in June 2023 to offer integrated insurance payment solutions to its clients.

    Sony LIV

    For the third year running, ACKO and Sony LIV team together to reimagine how media partners and businesses work together to achieve goal-driven outcomes in August 2023.

    Indian Super League (ISL) side, Chennaiyin FC (CFC)

    The Indian General Insurance company, ACKO, and the Indian Super League (ISL) team Chennaiyin FC (CFC) have announced a renewal of their partnership in September 2023. In accordance with the renewal, ACKO has been named the associate sponsor of the football team with headquarters in Chennai for the current ISL 2023–24 season.

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    Acko – Advertisements and Social Media Campaigns

    Acko Campaign

    The Acko Platinum Health Plan, the offering from Acko Insurance India, was recently introduced along with a six-part film campaign. Renowned Bollywood actors Sanjay Dutt and Arshad Warsi, who played Munna Bhai and Circuit in the Munna Bhai, are back in the campaign.

    Through Munna and Circuit, two lovable and well-known characters, the campaign seeks to convey the spirit of the Acko Platinum Health Plan while weaving an original and captivating story for its viewers.

    Acko – Awards and Achievements

    Being a successful startup that is already a unicorn and is growing each day, Acko has received numerous awards. Some of them are:

    • Golden Peacock Innovative Product Award 2019: Acknowledged for the development of “Ola Ride Insurance,” a contextual microinsurance product that garnered recognition for its innovation and relevance in the market.
    • FICCI Insurance Industry Awards 2020: Received the prestigious “Most Innovative Insurer” award in the Non-Life Segment, recognizing Acko’s groundbreaking contributions and inventive approach within the insurance sector.
    • BW Festival of Fintech 2021: Honored as the “Best Insurtech Company,” solidifying Acko’s position as a leader in leveraging technology and innovation to revolutionize the insurance landscape.

    Acko – Competitors

    The top competitors of the company are Easypolicy, PolicyBazaar, and Digit.

    • Easypolicy is the top competitor of Acko. It was founded in 2011 in Noida, Uttar Pradesh. This company competes with Acko in the Health and Life Insurance industry.
    • PolicyBazaar is one of the top competitors of Acko. It was founded in 2008 in Gurgaon, Haryana, India. This company also operates in the Health and Life Insurance industry.
    • Digit is also one of Acko’s top competitors. It was founded in 2016 and is headquartered in Bengaluru, Karnataka, India. Digit also works in the Health and Life Insurance sector.

    Acko – Future Plans

    According to a January 30, 2024, news story, Acko, has set a strategic goal of becoming profitable by the 2026–2027 fiscal year (FY27). The positive earnings from its health and general insurance businesses are expected to propel the company into profitability. Founder and CEO Varun Dua disclosed the company’s lofty goals in an interview with UBS Global.

    Varun Dua claims that Acko wants to reach a premium of Rs 2,000 crore by the end of FY24, the fiscal year 2023–2024. Furthermore, the organization expresses confidence in maintaining a strong growth rate of 35% annually, signifying a dedication to ongoing expansion and advancement within the insurance industry.

    FAQs

    Who are the owner of Acko?

    Varun Dua and Ruchi Deepak are the owners of Acko.

    What is ACKO?

    Acko General Insurance is a private general insurance company in India. It is popularly known as India’s first digital insurance company.

    Where is the Acko headquarters?

    Acko headquarters are in Bangalore, Karnataka, India.

    Does ACKO provide cashless insurance schemes?

    Yes, ACKO has cashless schemes for insurance.

    Is ACKO General Insurance reliable and trustworthy?

    Yes, ACKO General Insurance is quite reliable and trustworthy. It is licensed and certified by the Insurance Regulatory and Development Authority of India (IRDAI).

    What is Acko new car insurance?

    The Acko car insurance policy also have new car insurance policies that cover the new cars as soon as they are bought from their respective showrooms. Besides, it also has car insurance policies for old cars, which covers for all the damages dealt and received by the insured cars.

    What is Acko insurance mobile?

    Acko insurance Mobile, or Acko mobile Insurance, is an insurance policy of Acko to cover the damages to mobile devices of its users.

    Is Acko Profitable?

    In FY24, Acko experienced significant revenue growth, reaching INR 2,106 crore from INR 1,758 crore in FY23. Additionally, the company’s losses had decreased from INR 738.5 crore to INR 670 crore in the same period, Unfortunately, it still meant that Acko was not profitable as of FY24.

    What is Acko health insurance?

    Acko health insurance is another Acko product that provides insurance coverage essential for people’s healthcare needs. The health insurance of Acko offers financial assistance to the insured patient in case of any unfortunate event, accidents, planned/emergency hospitalisation, and more.

    What is meant by Acko group health insurance policy?

    Acko brings the all-new Acko group health insurance policy, which helps employees get the financial assistance they deserve in this post-Covid era.

  • Cashfree Success Story – Full Stack Payment Solution

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

    The Indian digital payments industry stands at ₹2,153 Tn i.e., ~961% of GDP (source: RedSeer report) as of 2022. Cashfree has rapidly grown in the country’s competitive environment to the point where it is now dominating the payment disbursals with more than 30% market share among payment processors. Founded by Akash Sinha and Reeju Dutta, Cashfree is a full-stack payments solution that helps Indian businesses accept and send money.

    Know more about Cashfree’s business model, how it started, its funding and investors, growth, and more, in this post ahead.

    Cashfree – Company Highlights

    Startup Name Cashfree
    Founders Akash Sinha (CEO), Reeju Dutta
    Launch Year 2016
    Headquarters Bangalore
    Sector Fintech, Digital Payments
    Website cashfree.com

    About Cashfree
    Cashfree – Industry
    Cashfree – Founders and Team
    Cashfree – Startup Story | How it Started?
    Cashfree – Startup Launch
    Cashfree – Mission and Vision
    Cashfree – Name, Tagline and Logo
    Cashfree – Product/Service and USP
    Cashfree – Business Model and Revenue Model
    Cashfree – Customer Retention Strategies
    Cashfree – Challenges faced
    Cashfree – Marketing Strategies
    Cashfree – Revenue and Growth
    Cashfree – Funding and Investors
    Cashfree – Partnership
    Cashfree – Acquistion
    Cashfree – Investments
    Cashfree – Competitors
    Cashfree – Recognition and Achievements
    Cashfree – Future Plans

    About Cashfree

    Cashfree offers businesses the fastest and most seamless way to collect and disburse payments at scale. The company’s products include a payment gateway, payout processing, marketplace settlements, Cashgram, Subscriptions, bank account verification, UPI Stack, Instant Refunds, Global Payouts, and auto-collection via virtual bank accounts.

    Cashgram is Cashfree’s innovative web link that allows users to provide account details and receive payments instantly from businesses. Cashfree is leading the way in payments innovation with faster settlements, advanced fast-refund solutions, and higher success rates on online transactions.

    The company has introduced solutions like Instant Settlements on its payment gateway; recurring payments via Subscriptions; and a UPI stack with 15+ ready-to-use integrations for all business payment needs including collections, disbursals, and verifications using UPI infrastructure. Furthermore, Cashfree also has specific solutions tailored for NBFCs – Lending, Insurance, E-commerce, and Education verticals.

    Since Cashfree’s inception in 2015, the company has built a strong presence among enterprises by innovating for experience, scale, and security. The payment industry is still seen as an evolving industry with its own challenges.

    Cashfree – Payments Industry Details

    The market for payment processing is robust in India. Payment processors use gateways to authorize direct payments across networks of online retailers, storefronts, credit cards, and individuals. That’s why Cashfree has rapidly grown in the country’s competitive environment to the point where it is now dominating payment disbursals with more than 30% market share among payment processors.

    According to Statista, the Indian digital payments industry stands at $ 1,624.00 billion in 2024 and will grow at 16.35% CAGR to reach $3,463.00 billion by 2029. This growth will be driven by:

    • Strong use case of merchant payments across user cohorts
    • Government policies such as Jan Dhan Yojana, personal data protection bill along with the growth of MSMEs
    • High smartphone penetration indicates strong headroom for growth through banking and financial services collaborations

    Cashfree – Founders and Team

    Akash Sinha (CEO) and Reeju Dutta are the founders of Cashfree.

    Cashfree Founders
    (L-R) Reeju Dutta, Akash Sinha (CEO) – Founders of Cashfree

    Both Akash and Reeju were engineering graduates. Akash and Reeju were introduced to each other by common friends, people with whom they went to college with.

    Akash Sinha (CEO & Co-founder, Cashfree)

    Akash was working at Amazon writing software and leading a tech team. He has a technical background and has also worked at BankBazaar, a fintech company. With Akash’s experience as a programmer and product owner, at Cashfree, he focuses on the intersection of technology and business opportunities. As a community builder in the startup and entrepreneur space, he is excited and enthusiastic about cutting-edge technologies that can help businesses experiment, scale, and innovate faster.

    Reeju Dutta (Co-founder, Cashfree)

    Before co-founding Cashfree, Reeju was heading marketing at FabFurnish, an e-commerce retailer. He has a background in digital marketing. He has also worked at ZS Associates, a consulting firm, advising pharmaceutical companies on managing data. At Cashfree, he focuses on customer experience, sales & marketing, finance, and hiring. He is passionate about the growth of the startup ecosystem and enjoys interacting with businesses that offer innovative solutions.

    In 2020, Cashfree strengthened its workforce to over 225 employees with hiring accelerated by the growth of e-commerce and digital payments sectors. By the end of 2021, Cashfree plans to further double its workforce to 400 team members, filling up critical positions as they gear up for the next wave of transformation. As the company builds agile digital payments products, it also plans to grow its sales and support teams.

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    Cashfree – Startup Story | How it Started?

    In mid-2015, Akash Sinha (CEO and Co-founder of Cashfree) and Reeju Datta (Co-founder of Cashfree) were bouncing ideas off each other and looking for a co-founder to build on their ideas. Akash had an idea around an AI-based chat while Reeju was thinking of something around route logistics. They were brainstorming on what could work and what wouldn’t be based on the market situation. Since hyperlocal commerce was thriving in 2015, Akash came up with the idea of finding a way to make their payments cashless – which until then was cash-intensive. That’s how Cashfree was born.

    Akash and Reeju started Cashfree in 2015 and initially, they were digitizing offline COD payments. Then in April 2016, they got into the online space completely. When they started, it was only Reeju and Akash, along with another member who handled sales.

    The idea worked well with night restaurants where it was difficult to make cash payments at odd hours. As a beta version, they launched a mobile web product were after the placement of an order. The customer receives a link to input their card details or uses their wallet to make the online payment. Soon after, the delivery person would get an SMS saying that the payment had been received.

    A few such merchants approached them to process the payments for their businesses via their website as well and that is when Akash and Reeju started developing an online payment gateway.

    Cashfree – Startup Launch

    Initially, Akash and Reeju started out by working with small restaurants in Bangalore. They were focused on night delivery restaurants, as it was a segment that required alternate options for cash payments. So, night delivery restaurants are where they found their very first users.

    Cashfree – Mission and Vision

    Cashfree’s mission is unwavering, which is “to enable online businesses to deploy payment solutions to innovate and scale.”

    The short-term vision is to invest in next-gen payments as well as banking tech to make payments processing easier and more reliable. The long-term vision is to grow Cashfree to be the leader in the payments space in India and internationally, backed by a solid foundation of in-house technologies, tech-driven processes, and in-depth industry knowledge.

    Akash Sinha, CEO & Co-founder, Cashfree said, “At Cashfree, we are working towards boosting India’s fintech ecosystem, as it is the backbone of Digital India and is a key problem-solver of the economy.”

    “Trusted by enterprises Loved by developers”, goes the tagline of Cashfree.

    Cashfree Logo

    Cashfree – Product/Service and USP

    Cashfree has built a comprehensive payment toolkit for small to large businesses in India. It has launched various products and solutions with six first-of-its-kind fintech innovations including Payouts, Instant Refunds, Cashgram, Pre-Authorization, Subscriptions, and Instant Settlements. Their products and solutions are aimed at making online payments easier and elevating customer experience through innovation and higher transaction success rates. The company’s products include a payment gateway, payout processing, marketplace settlements, Cashgram, Subscriptions, bank account verification, UPI Stack, Instant Refunds, Global Payouts, and auto-collection via virtual bank accounts.

    • Payouts: The first gateway with a bulk disbursal solution for domestic and international payments. Payouts perform bank transfers to any unified payments interface, wallet, or debit card with more than 100 payment options and support for 30+ foreign currencies. It can also verify accounts in real time.
    • Instant Refunds: Launched on September 4, 2019, this was the first-time instant refunds were available on the Cashfree payment gateway. Merchants can initiate partial or full refunds from the dashboard or via an API. It seamlessly integrates with Shopify and Magento refund flows.
    • Cashgram: COD orders providing instant refunds for the first time. Customers can send a Cashgram link to a user, who can specify a destination for payments or instant refunds.
    • Pre-authorization: Provides the ability to block funds temporarily and debit the full or partial amount upon fulfillment. Customers can save payment gateway charges on canceled orders and integrate with their enterprise resource planning software. Users get real-time tracking of transaction progress.
    • Subscriptions: Cashfree was one of the first gateways to offer recurring payments via the e-mandate payment service initiated by the Reserve Bank of India and the National Payments Corporation of India.
    • Instant Settlements: Cashfree delivered the industry-first and fastest instant bank settlements for payment collections (within 15 minutes).
    • Co-lend: The first completely automated escrow management solution for co-lending in India, called “Co-lend,” was introduced by Cashfree on February 7, 2023. It allows for quick disbursal with automatic reconciliation and a dashboard for managing numerous partnerships.
    • BNPL Plus: To help companies give their clients more inexpensive and flexible payment choices, the fintech platform Cashfree Payments has introduced ‘BNPL Plus’ in July, 2023.
    • UPI Plug-in solution: The UPI Plug-in was introduced by Cashfree Payments, an API banking firm, on September 14, 2023. It enables mobile-first businesses to accept UPI payments from clients without requiring them to leave the application.

    Pivot from the Initial product offering

    When Akash and Reeju reached out to businesses to partner with for their online cash-on-delivery needs, around 5-6 months down the line, merchants approached them for an online payment gateway (PG) service. That’s why they went on to build the payment gateway for them because both the products were kind of similar, though not the same.

    It was easy for the founders to transition to an online payment gateway. When they started rolling out the PG, they soon realized that there was still a need for a modern payment gateway that offered services like simple API integration, high transaction success rates, full collection on all the payment modes. That is how they transitioned into an online payment aggregator as businesses (customers) asked for it.

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    Cashfree – Business Model and Revenue Model

    Cashfree is a full-stack payments solution that helps Indian businesses accept and send money and is used by 3,00,000+ businesses for vendor payouts, wage payouts, bulk refunds, etc. The company makes a fee of anywhere between 1.75% and 3% of the value of the transaction as of year 2020.

    Cashfree – Customer Retention Strategies

    Cashfree has focused on building exceptional payment products and developing innovations for merchants to minimize pain points associated with various payment use cases. This has led to a lot of organic growth for the company, driven by word of mouth and inbound traffic.

    The high success rates of Cashfree’s flagship products such as Payouts and Cashgram have led to the company winning the trust of their customers. This led to these same customers also adopting some of the company’s other products to simplify payments.

    Many of the payment products built by Cashfree were a result of direct feedback from existing customers on their payment challenges. The company saw these challenges as opportunities to develop products that would add value to their customers. One of the payment innovations that was a direct outcome of customer feedback is Cashfree’s Instant Settlements cycle – where Cashfree enables merchants to get access to their funds in 15 minutes. Merchants can make use of the settled funds for disbursals to vendors and other partners even on bank holidays.

    Cashfree – Challenges faced

    In early 2015 when Akash and Reeju first started out Cashfree, they were making prototypes in AI chat and logistics, but it didn’t work out, as a lot of hyperlocal commerce companies were using COD and there was no way to pay digitally.

    That’s how they came up with their idea to use digital payment modes such as credit cards, debit cards, and netbanking. They were able to sign up 200-300 offline stores in Bangalore. They started at the right time, tried figuring out online payment pain points and ways to solve them.

    Cashfree – Marketing Strategies

    One of Cashfree’s most successful marketing campaigns was for the launch of the company’s e-commerce product suite. Cashfree’s e-commerce payments platform offers merchants the best payment experience for mobile and UPI payments and allows them to collect customer payments, process refunds, pay sellers and do a lot more. Along with the regular rollout of press releases, digital marketing, email marketing, and more.

    Cashfree also hosted a series of fireside chats and webinars with thought leaders in the e-commerce space as a knowledge-sharing platform. This series of sessions not only helped Cashfree reach out to thousands of businesses but also helped many entrepreneurs understand the finer points of running a successful e-commerce venture.

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    Cashfree – Revenue and Growth

    Cashfree has been profitable since its first year of operations and counts more than 50,000 businesses amongst its merchants including leading internet companies such as Cred, BigBasket, Zomato, HDFC Ergo, Ixigo, Acko, Zoomcar, and Delhivery, among others.

    Cashfree’s solutions are used by over 10,000 e-commerce platforms including Nykaa, Furlenco, EaseMyTrip, Wakefit, Vero Moda among others. In 2020, Cashfree processed more than over 100 million transactions from e-commerce orders and expects to onboard 5,000 e-commerce companies by the end of the year.

    Cashfree claims to process transactions worth $80 bn annually as of 2024. Furthermore, it has an over 50% market share among the payment processors. Besides, Cashfree helps 3,00,000businesses with a wide range of activities including payment collections, vendor payouts, wage payouts, bulk refunds, expense reimbursements, loyalty, and rewards. The Bengaluru-based fintech startup also boasts of an international presence in countries including the USA, Canada, and the UAE.

    At the end of 2024, here are some growth highlights of Cashfree:

    • Cashfree Payments boasted of a 50% market share in Payouts, thereby becoming the leading disbursals solution provider in India
    • Cashfree received funds from SBI Bank, India’s largest lender, which invested in the company, thereby boosting the company’s operations and growth
    • Cashfree saw a 95% rise in the number of merchants, which helped the company increase its merchant sign-ups by 268%
    • It managed to process $40 Bn transactions annually
    • Cashfree successfully served 200+ Million bank accounts has grown beyond the startup status and has emerged as a bigger and better firm now
    • Cashfree is currently serving 3,00,000 merchants
    • The company successfully launched ‘Accounts’, which is designed to be a BaaS solution, which will help the neo-banks and fintech platforms integrate banking services into their products
    • The company helped grow its employee count by 2X and is aiming to to double its employee count by 2022 end
    • Cashfree also noticed an increasing amount of trust and credibility among its stakeholders due to the partnering of Cashfree with some of the leading brands including Dvara Solutions, Deskers, Zybra, Shipway, Shyplite, Shoptimize, Hylobiz, Syrow, and more. This list also included some of the leading internet companies like Cred, BigBasket, Zomato, HDFC Ergo, Ixigo, Acko, Zoomcar, Delhivery, and more.

    Cashfree has made it possible for users and businesses to transact with ease within software platforms with the release of its payment solution as per the news report of March 6, 2024. All parties benefit from efficiency and ease as transactions happen directly without the need for external interfaces or redirects to the availability of more than 120 payment types.

    Cashfree Financials

    Cashfree Financials FY23 FY24
    Operating Revenue INR 614 crore INR 642.7 crore
    Total Expenses INR 750 crore INR 779.4 crore
    Profit/Loss Loss of INR 133 crore Loss of INR 135 crore
    Cashfree Financials
    Cashfree Financials

    Cashfree – Funding and Investors

    The funding details of Cashfree are as follows –

    Date Stage Amount Investors
    May 18, 2023 Debt Financing – Trifecta Capital Advisors
    June 7, 2021 Debt Financing – SBI
    November 24, 2020 Series B USD 35.3 Mn Apis Growth Fund II, Y Combinator
    April 9, 2019 Series A USD 5.5 Mn Y Combinator, George Osborne, Vellayan Subbiah
    August 21,2017 Pre Seed Round USD 120K Y Combinator
    January 1, 2017 Seed Round – –

    Cashfree has raised a total of $40.9 Million to date. Cashfree’s investors are – Y Combinator, George Osborne (former Chancellor of Exchequer of the UK), Vellayan Subbiah (former MD of Cholamandalam Investment), and APIS Growth Fund II.

    Cashfree plans to use the latest round of series B funding for research & development and for creating new product lines. The company will strengthen its team in India and expand into some of the emerging markets.

    The investments have supported Cashfree’s ambitious growth plans including launching and rolling out new products. The company introduced Global Payouts which enables it to offer fintech, e-commerce marketplaces, logistics platforms, remote staffing platforms, etc. based outside India, instant, simple and cost-efficient rails for bulk cross-border money transfers to India.

    International businesses can use Cashfree’s solution without having to set up a place of business in India. Cashfree also launched a payments toolkit for e-commerce stores and marketplaces in India. With a host of specific solutions, this product suite enables e-commerce businesses to collect payments on the website, mobile app, or any social media channel using Cashfree’s payment gateway, and to process partial or full refunds, facilitate seller payouts, split payments with multiple sellers and affiliate partners, and more.

    Cashfree – Partnership

    Cashfree has partnered with many companies some of the prominent partnerships are:

    Multi-Partner Cross-Border Payment Launch

    Swiggy, Nykaa, BookMyShow, Zepto, and others have partnered with Cashfree Payments to enable cross-border transactions. With RBI’s license for cross-border payments, Cashfree has launched a pilot program allowing international customers to pay for services in India.

    Shopify

    In order to offer onsite card payments to Shopify’s Indian merchants, Cashfree Payments has partnered with the Canadian e-commerce platform in September, 2023.

    Yes Bank

    Together with Yes Bank, Cashfree Payments is now able to provide exporters who have accounts there with “Global Collections,” an international collection service on May 3, 2023.

    Mobikwik

    In order to provide its consumers with the convenience of interest-free credit at their fingertips, MobiKwik announced its partnership with Cashfree Payments on August 31, 2023, a top provider of payments and API banking services. “ZIP Pay Later” will be integrated with Cashfree Payments’ Payment Gateway.

    AutoPay on QR

    ‘AutoPay on QR’ has been launched by Cashfree Payments on September 12, 2023 a provider of payment and API banking solutions, in partnership with National Payments Corporation of India (NPCI).

    Cashfree – Acquistion

    Cashfree acquired two companies. The most recent acquisition is of Zecpe on February 28, 2023.

    Company Name Date Amount
    Zecpe Feb 28, 2023 –
    Telr Nov 30, 2021 $15M

    The company has exited Telr as per various news reports.

    Cashfree – Investments

    Cashfree has made a strategic investment in Telr. The company invested 15 mn in the UAE-based payment gateway on November 30, 2021. This will further allow the company to expand its international footprints, which will start from the MENA region.

    Cashfree – Competitors

    Payu, Paytm, CCAvenue are some of the top competitors of Cashfree.

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    Cashfree – Layoff

    During a reorganization process, Cashfree has laid off up to 100 workers on January, 2023. In recent years, the SBI-backed company doesn’t appear to have conducted any layoffs until now.

    Cashfree – Recognition and Achievements

    • Akash Sinha, CEO, and Co-Founder, Cashfree was listed in Forbes 30 under 30 2021
    • Cashfree secured as the 5th fastest growing technology company in Deloitte Technology Fast 50 India 2020

    Cashfree – Future Plans

    Cashfree estimates 45,000 to 50,000 merchant leads per month and is optimistic in its continued development trajectory. With the goal of becoming profitable again by the first quarter of FY25, the company intends to improve customer satisfaction and service offerings as per news report of January, 2024.

    This entails broadening the range of services offered, making infrastructural investments in technology, breaking into untapped markets, putting the needs of the client first, and developing clever alliances. These calculated actions highlight Cashfree’s dedication to maintaining its position as the market leader in payment solutions and maximizing value for all parties involved.

    Cashfree – FAQs

    Who founded Cashfree?

    Akash Sinha (CEO) and Reeju Dutta are the founders of Cashfree.

    How does Cashfree make money?

    Cashfree charges a fee of anywhere between 1.75% and 3% of the value of the transaction.

    How much funding has Cashfree raised?

    Cashfree has raised a total of $40.9 Mn to date. Its recent funding was led by Trifecta Capital Advisors as a Debt Financing round.

    What is Cashfree?

    Cashfree is a full-stack payments solution. It helps Indian businesses accept and send money. It offers businesses the fastest and most seamless way to collect and disburse payments at scale.

    How much is Cashfree’s Operating Revenue?

    Cashfree operating revenue is around INR 642.7 crores in FY24 and a Loss of INR 135 crore.

    Is Cashfree free?

    NO. Cashfree charges a fee of anywhere between 1.75% and 3% of the value of the transaction.

  • HealthKart: India’s No. 1 Authentic Online Supplement Store!

    Healthcare is going to fundamentally transform in the years to come. No doubt, technological advancements will be helping such a change. The newfound health awareness is also a result of the emergence of the internet and the spread of both mental and physical diseases.

    All of these are leading people to approach healthcare through a preventive and fitness lens. These trends are permanent and will only exponentially manifest themselves in the years to come. Along with the rising culture to training the human body physically in order to help it stay active and promote optimal functioning, people are now also inclined to opt for preventive care methods, which include the intake of beneficial nutrients and effective supplements.

    HealthKart is a healthcare startup that believes in supporting the health and well-being of people. The Gurgaon-based wellness startup brings a wide array of health products online in India, which helps users stay fit and active and enjoy their lives in the best possible way. Besides, HealthKart also offers a variety of fitness products and services to help consumers achieve their fitness goals.

    Founded in March 2011 by two IIT graduates with significant experience in healthcare and technology domains, both in India and the US, HealthKart is hailed as India’s No. 1 authentic online supplement store.

    Here’s learning all about the HealthKart company, its Founders and Team, Business and Revenue Model, Mission, Growth, Revenue, Competitors, Acquisitions, Challenges, Future Plans, and more.

    HealthKart – Company Highlights

    STARTUP NAME HEALTHKART
    Headquarters Gurgaon, Haryana, India
    Sector Healthcare, Fitness
    Founders Prashant Tandon and Sameer Maheshwari
    Founded 2011
    Valuation $500 Million (as of November 2024)
    Website healthkart.com

    HealthKart – About
    HealthKart – Industry
    HealthKart – Founders and Team
    HealthKart – Startup Story
    HealthKart – Mission
    HealthKart – Name and Logo
    HealthKart – Business Model
    HealthKart – Revenue Model
    HealthKart – Challenges Faced
    HealthKart – Acquisitions
    HealthKart – Partnerships
    HealthKart – Funding and Investors
    HealthKart – Growth
    HealthKart – Competitors
    HealthKart – Future Plans

    HealthKart – About

    HealthKart is an online health and fitness store for men and women, which offers health products online and health services to help consumers achieve their fitness goals. The company sells authentic health supplements, fitness equipment, weight loss products, protein supplements, sports gear, and wellness products.

    HealthKart offers a comprehensive range of high-quality supplements such as proteins, vitamins, minerals, etc., sourced from across the world. These supplements are used for athletic performance, fitness, and wellness. The company also offers assistance to its customers in product selection and diet planning through trained nutritionists.

    HealthKart – Industry

    According to Allied Industry Research, the online fitness industry is growing quickly and is expected to reach $59.231 million by 2027 at a projected CAGR of 33.1%. The convenience of digital platforms and rising health consciousness are fueling this expansion, which is changing the fitness business and creating enormous potential for innovation and entrepreneurship.

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    HealthKart – Founders and Team

    HealthKart is founded by Prashant Tandon and Sameer Maheshwari (Founder and CEO).

    Founders of HealthKart
    Prashant Tandon ( Ex Co-Founder) and Sameer Maheshwari (Founder and CEO) (Left to Right)

    Prashant Tandon

    Prashant is a founding member of HealthKart along with Sameer Maheshwari. He is a Founder/Entrepreneur at Tata 1Mg since he left HealthKart in March 2015. Prashant Tandon is an IIT Delhi alumnus, who has done his BTech in Chemical Engineering from the IIT and afterward completed an MBA, in Business, from Stanford University. He was previously a Summer Associate at McKinsey & Company, a Vice President at MapmyIndia, and then a Sr. Associate at McKinsey & Company, before starting an entrepreneurial career by founding HealthKart.

    Sameer Maheshwari

    Sameer Maheshwari serves as the Founder and CEO of HealthKart. He also has a BTech degree in Civil Engineering from the IIT Delhi, along with an MBA from the Harvard Business School. Sameer was previously the Senior Sales Consutant at MicroStrategy, then a Summer Associate at Jefferies & Company, an Associate Director at the UBS Investment Bank, and a Manager Business Consultant at LucidEra before he started up with HealthKart.

    HealthKart – Startup Story

    Founded in March 2011, HealthKart India was formed on the grounds of giving simple, effective solutions to health enthusiasts. Today, HealthKart offers India’s largest range of genuine healthcare products online across various categories and all major brands. HealthKart.com is an online portal where people can find HealthKart products, and compare and buy health products online.

    Prashant always wanted to do something in the Healthcare industry. As he noticed that the health sector was known to be one of the most unorganized sectors and availing of good quality health products was an extreme painpoint in India, he got in touch with Sameer Maheshwari and shared the idea with him. Then they got together and started Bright Lifecare Pvt. Ltd., HealthKart’s parent company.

    A degree from Stanford or Harvard Business School would automatically win anybody tickets to a lucrative job. And it was no different for Sameer Maheshwari and Prashant Tandon. While the former is a Harvard graduate, the latter got his degree from Stanford. In fact, Maheshwari and Tandon quit their jobs to start, Healthkart.com, a one-stop online shop for healthcare needs. They worked with doctors and health institutions before launching a consumer-facing unit.

    “Before starting the portal, we tried our hand in different sub-sectors within healthcare,” recollects Tandon.

    From venturing into public healthcare to offering practice management software for independent physicians and small clinics, the duo tried two to three different business models.

    HealthKart – Mission

    The company’s mission on it’s website states as “to deliver a premium-quality and affordable product range that covers the entire spectrum of all body types.”

    HealthKart Logo
    HealthKart Logo

    HealthKart parent company is “Bright Lifecare Pvt. Ltd.”

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    HealthKart – Business Model

    The core of HealthKart’s business model is its extensive e-commerce platform, which serves customers’ fitness and health demands. The creators first experimented with different healthcare models before turning to direct retail to customers. HealthKart is an online store that provides a large selection of fitness and health products. It functions as a one-stop shop.

    HealthKart sells a wide variety of products in keeping with a typical retail model, making it simple for clients to browse and make purchases online. To ensure effective delivery, third-party vendors, such as leading Indian courier services, handle logistics.

    From venturing into public healthcare to offering practice management software for independent physicians and small clinics, the founders tried two to three different business models.

    But the two also realized that they wanted to be in the consumer space, so after gaining enough experience and understanding of how the healthcare industry works, they started HealthKart India for direct retail of healthcare products to consumers.

    HealthKart – Revenue Model

    HealthKart’s revenue model mainly depends on two sources:

    Sales of nutritional goods produced in-house: HealthKart gets a sizable amount of its income from the sale of its own brand of nutritional goods. These goods, which are produced by HealthKart, address a range of customer health and wellness requirements.

    Marketplace fees: HealthKart runs a marketplace in which it helps other sellers sell their products. These sellers are required to pay marketplace fees in order to list and sell their goods on the HealthKart platform. This revenue source raises HealthKart’s total revenue.

    HealthKart – Challenges Faced

    More than ten years ago, HealthKart, led by CEO and founder Sameer Maheshwari, set out to offer reasonably priced preventive healthcare solutions to Indians. Nonetheless, there were several difficulties along the way. Making sure a product is legitimate became crucial in an industry where fake goods were common.

    Other challenges were overcoming investor distrust and putting together a capable team. Furthermore, creative approaches were needed to navigate the disjointed and often unstructured healthcare sector. By utilizing India’s rapidly developing e-commerce sector, HealthKart aimed to close the gap between customers and genuine medical supplies. A major issue that surfaced was education, as customers were ignorant of appropriate items.

    In spite of these challenges, HealthKart persisted, putting in place stringent quality controls, building a strong customer service center, and utilizing e-commerce to offer real healthcare solutions to the general public.

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    HealthKart – Acquisitions

    In 2012, HealthKart company acquired the online fitness and bodybuilding community and supplement store to expand into Fitness, Weight gain, Weight loss, etc. named MadeInHealth, which is one prominent acquisition of HealthKart. The deal value of this acquisition is undisclosed.

    HealthKart – Partnerships

    KlugKlug

    On October 8, 2024, KlugKlug, an influencer marketing SaaS platform, partnered with Healthkart to enhance its influencer outreach. The collaboration aims to optimize strategies, connect with authentic influencers, and boost brand visibility.

    Unicommerce

    HealthKart partnered with Unicommerce to enhance its e-commerce supply chain on September 4, 2024. By adopting Unicommerce’s order and warehouse management solutions, HealthKart automates order processing and fulfillment across its website and marketplaces for brands like MuscleBlaze, Gritzo, and HK Vitals.

    HealthKart – Funding and Investors

    HealthKart has raised $349 million in 6 rounds of funding.

    Here are the funding details:

    Date Round Amount Lead Investors
    Nov 18, 2024 Secondary Market $153 million Chrys Capital, Motilal Oswal Alternates
    Nov 24, 2022 Series H $135 million Temasek Holdings
    May 9, 2019 Series G $25 million Sofina
    Oct 24, 2018 Venture Round $10 million Sequoia Capital India
    Aug 1, 2016 Series E $12 million Sequoia Capital India
    Jun 7, 2013 Series B $14 million Intel Capital

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    HealthKart – Growth

    HealthKart: growth highlights are:

    • It is supported by 100+ stores as of March 2024
    • It has expanded to 25,000 products as of March 2024
    • It is available in 40+ cities as of March 2024
    • It has 2.5 million+ happy customers as of March 2024
    • It has served more than 10 million customers as of March 2024

    Financials

    HealthKart Financials FY22 FY23 FY24
    Operating Revenue INR 491 crore INR 832.4 crore INR 1,021 crore
    Total Expenses INR 576 crore INR 927.5 crore INR 1,032.2 crore
    Profit/Loss Loss of INR 69 crore Loss of INR 75.5 crore Profit of INR 36.6 crore
    HealthKart Financials
    HealthKart Financials

    EBITDA

    HealthKart Financials FY22 FY23 FY24
    Expense/Rupee of ops revenue INR 1.17 INR 1.11 INR 1.01
    ROCE -138% -9.49% 5.61%
    EBITDA Margin -61% -5.78% 6.51%

    HealthKart – Competitors

    HealthKart’s top competitors include:

    • 1mg
    • Gaia Herbs
    • Best Priced Products
    • Hello Cake
    • ROAM Fitness

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    HealthKart – Future Plans

    The $100–150 million secondary transaction between HealthKart, the health supplement startup, and ChrysCapital, a private equity fund, is under discussion as per news report of April 4, 2024. Through this acquisition, early investors may receive a payout, and HealthKart’s valuation may increase from $370 million to over $500 million.

    With this capital infusion, HealthKart hopes to boost technology capabilities, broaden its product offerings, reach a wider market, and quicken its growth trajectory. As HealthKart positions itself for continued success and industry leadership in the health and wellness sector, this anticipated fundraising round marks the beginning of an exciting new chapter in the company’s history.

    FAQs

    When was HealthKart founded?

    Prashant Tandon and Sameer Maheshwari founded HealthKart in 2011.

    Who founded HealthKart?

    HealthKart was founded by Prashant Tandon and Sameer Maheshwari in 2011.

    Is MuscleBlaze owned by HealthKart?

    Yes, MuscleBlaze is owned by HealthKart.

    Who is the Muscleblaze founder?

    Sameer Maheshwari, the founder of HealthKart is the Muscleblaze founder.

    How does HealthKart make money?

    Sales of HealthKart’s own nutritional products and marketplace fees from other merchants who list their goods on the platform are the company’s main sources of income. The total revenue and business operations of HealthKart are substantially influenced by these two sources.

    How are HealthKart product authentication checks?

    The HealthKart business relies on the authenticity and quality of its products, which is clearly its USP. The HealthKart product authentication check is fuelled by tight quality controls during the sourcing and distribution phase of the products. With stringent product authentication checks, HealthKart promises 100% authentic products.

  • Awfis: Changing the Working Culture of India

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

    The coworking industry in India is at its peak and is set to become a mainstream segment. By the end of 2024, there are expected to be around 41,975 coworking spaces worldwide. Coworking is an innovative way of working, where different companies share the same space and collaborate.

    Founded by Amit Ramani in 2015, Awfis Space Solutions offers coworking and shared office spaces for rent, along with affordable facilities. The company also launched ‘Awfis@Home’, starting at a monthly subscription fee of INR 2,500. This initiative provided physical and IT infrastructure for remote work, giving a significant boost to Awfis’ market presence.

    In this article, learn more about Awfis, its founder, business model, IPO, funding, revenue, growth, and more.

    Awfis – Company Details

    Company Name Awfis Space Solutions Ltd.
    Headquarter New Delhi
    Founders Mr Amit Ramani
    Sector Co-working space/ Commercial Real Estate
    Founded 2015
    Website awfis.com

    About Awfis
    Awfis – Industry
    Awfis – Startup Story | How was Awfis Started?
    Awfis – Founders and Team
    Awfis – Shareholding
    Awfis – Name, Tagline and Logo
    Awfis – Business Model
    Awfis – Revenue Model
    Awfis – User Acquisition
    Awfis – Funding and Investors
    Awfis – Growth / Revenue
    Awfis – Partnership and Tie-Ups
    Awfis – IPO
    Awfis – Controversy
    Awfis – Future Plan

    About Awfis

    Awfis (Awfis Space Solutions Private Limited) has been able to build a niche for itself within the ever-evolving coworking segment, largely owing to its unceasing commitment to providing high-grade workspaces and amenities at an affordable cost. It understands India’s market and its key challenges from a commercial real estate perspective. The company has been able to successfully cater to the client base by providing them with an integrated workspace solution and a hassle-free experience. Awfis also offers a Virtual Office solution that helps you create a professional image for your business without booking an actual physical space. Besides, Awfis Mobility Solutions, lets one work from anywhere.

    “We see ourselves as our client’s partners, not mere service providers. We have built a best-in-class mobile app that helps book workspaces & meeting rooms on ‘Just-in-time’ basis. We also have a range of ‘Mobility Solution’ products for today’s work-on-the-go population along with our newly launched product ‘Awfis Enterprise Solutions’ that caters to SMEs and mid & large sized corporates helping them set up their head offices & satellite offices with us” Amit Ramani says explaining Awfis’ products

    The core belief of Awfis Space Solutions is to bridge the existing Commercial Real Estate (CRE) gap in India by transforming commercial assets into Grade A workspaces and making them accessible at affordable prices. The aim is to provide a commercially viable solution to the workforce of India owing to the highly price-sensitive and extremely rational Indian consumer. The company strongly believes that with their unique bouquet of products and services, they have been able to provide a feasible solution to Indian businesses, thereby creating an enriching work experience.

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    Awfis – Industry

    India’s coworking industry is growing fast, with the market expected to reach $2.84 billion by 2030. This growth is driven by several factors, including changing work landscape, cost-effective, collaborative environment, and scalability.

    The coworking space market in India has grown to over 13 million square feet and is still expanding. It’s growing not only in big cities like Delhi-NCR, Mumbai, Bangalore, and Chennai but also in smaller tier 2 and tier 3 cities.

    Awfis – Startup Story | How was Awfis Started?

    Coworking as a segment has been prevalent in the US for the last 10-15 years where the founder, Amit Ramani, had prior professional experience.

    The idea to launch Awfis and re-conceptualize the co-working segment in India struck him when he witnessed the status of the majority of the commercial spaces here. Extremely disorganized, a complete lack of transparency, and the absence of a conducive environment for employees to work in, it led him to believe that co-working was the perfect solution for India’s market and to pave the way forward for a highly flexible workforce of our country.

    Awfis – Founders and Team

    Amit Ramani is the founder and CEO of Awfis.

    Amit Ramani - Founder & CEO, Awfis
    Amit Ramani – Founder & CEO, Awfis

    Amit has been a serial entrepreneur with 18 years of experience with a focus on building sustainable businesses that solve real-world problems. Before Awfis, he served as the Founder and Managing Director of NELSON Asia, a company focused on providing design & build solutions to global & Indian multinationals. Amit’s extensive experience in strategic planning, design management, and workplace & business process improvement has allowed him to work in different leadership positions as well as a speaker and guest author for reputed platforms.

    • Mr. Amit Ramani is a member of the Young President’s Organization (YPO) Delhi Chapter which is a group of top 200 business leaders and owners in the community.
    • He has been an active member of the International Facilities Management Association CoreNet for eight years and serves on the board for the latter’s Charlotte Chapter.
    • His work has been published in the Journal of Corporate Real Estate and he has been a frequent speaker at industry forums such as CoreNet Global Summit on topics ranging from real estate strategy to developing effective work environments.
    • He is also an active member of RICS and NASSCOM.
    • His contribution to the field of real estate and facility planning has made him the recipient of the prestigious IFMA Foundation award three years in a row.
    • He has also been a guest lecturer at Cornell University, New York University, and Texas A&M.

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    Awfis – Shareholding

    Here is the shareholding pattern of Awfis as of May 2024:

    Shareholding Percentage
    Peak XV Partners 22.9%
    Chrys Capita (Bisque Ltd) 23.5%
    Amit Ramani 18.2%
    QRG Investments 9.6%
    VBAP Holdings 9.4%
    Ashish Kacholia 5%
    Others 11.2%
    Link Investment Trust 0.4%
    Awfis Shareholding Pattern as of May 2024
    Awfis Shareholding Pattern as of May 2024

    Awfis Logo
    Awfis Logo

    Awfis’ name comes from the way ‘office’ is pronounced.

    Awfis – Business Model

    Awfis operates under two leasing business models: Managed Aggregation and Straight Lease and Design & Build Model.

    • Managed Aggregation Model: This is asset-light and risk-averse. In this approach, Awfis partners with landlords or developers who typically cover part or all of the fit-out capital expenditure.
    • Straight Lease Model: Awfis leases space from developers or property owners under traditional terms, including a fixed monthly rental, common area maintenance charges, security deposits, minimum lock-in periods, lease tenure, and escalations. In this model, Awfis fully funds the capital expenditure for fitting out the property.
    • Design & Build Model: Awfis collaborates with clients to create designs tailored to their business needs. Additionally, Awfis offers Mobility solutions, which include day passes, meeting rooms, and virtual offices, ideal for freelancers and new entrepreneurs or startups.

    Awfis – Revenue Model

    The company primarily deploys two models i.e. the Straight Lease Model and the Managed Aggregation Model (MAM). Among the two, MAM has been able to give them an edge due to its unique proposition wherein Awfis partners with space owners of underutilized commercial spaces and strikes a ‘no minimum guarantees’ deal – where the space owner makes the investment on fit-out infrastructure and builds out a center. The profits from the center are shared with a higher percentage going to the space owner.

    Capital efficiency is an advantage of MAM, which enables to multiply our growing capacity by almost 4-5 times. Currently, 60% seats are under MAM and we intend to increase this to 70 – 80% in the coming year – Amit says

    Awfis – User Acquisition

    Awfis was launched way back in 2015 in New Delhi with one center in Vasant Kunj. In July 2017, the company had 5,800 desks across 20 centers. Having grown steadily throughout the last few years, they have expanded to 35,000 seats across 70 centers in just 4 years. This indicates a growing audience,

    Our biggest marketing channel has been our customers itself, who, with their positive feedback and positive word of mouth, have been our biggest strength to us. We have managed to consistently gratify our user base by enabling complete transparency while enhancing relationships with both internal and external stakeholders. Additionally, staying true to our belief “where work meets life”, we are providing our members a platform to interact, collaborate and do business within the community.

    The company also provides access to over 1000 events and experiences annually to its community members so as to maintain work-life balance and have fun while working.

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    Awfis – Funding and Investors

    Awfis has raised a total of $134.6 million in funding in over 9 funding rounds from different investors. Their last funding round was in June 2023 which was a venture round, led by A91 Partners.

    Date Stage Amount Investor
    June 19, 2023 Venture Round $40 million A91 Partners
    December 5, 2022 Series E $1.96 million Bisque
    June 1, 2022 Series E $7.8 million –
    March 12, 2021 Venture Round $5.5 million –
    May 26, 2020 Debt Financing $4.8 million –
    August 6, 2019 Series D $30 million Chrys Capital, Sequoia Capital India & The Three Sisters Institutional Office,
    May 24, 2019 Series c $3.01 million Peak XV Partners, Yes Bank
    July 25, 2018 Series C $20 million InnoVen Capital, Peak XV Partners
    April 26, 2017 Series B $20 million Peak XV Partners

    Awfis – Growth / Revenue

    Awfis revenue stood at INR 849 crore in FY24 and INR 545 crore in FY23.

    Awfis is currently spread across 181 centers in 17 cities with more than 100,000 seats. It had set its eyes on the expansion in Tier 2 cities and solidified its presence in Tier 1 cities which materialized by expanding to Kochi, Jaipur, Bhubaneshwar, Ahmedabad, and Indore. 80% of the then userbase of Awfis belonged to the Tier 1 cities.

    Awfis plans to expand further across India with a net addition of 5,368 seats and 9 centers in Q1FY25 and a total of 40,000 new seats in FY25, bringing the total seat count to 1,35,000.

    In terms of the user base, the company serves over 1500 companies ranging from India’s leading startups/ MSMEs to Fortune 500 companies, forming the largest co-working community in India. Breaking up Awfis’ revenue, SMEs account for 40 percent, corporates 40 percent, and 20% of revenue comes from startups and freelancers. In terms of community members, Awfis has over 28000 community members.

    Awfis has managed to successfully establish itself with an extremely strong foothold in the rapidly evolving co-working sector.

    Awfis’ success mantra of providing ‘Value driven services for Value focused companies’ has enabled it to spearhead the growth of this sector in India and made Awfis synonymous with co-working. Awfis has become profitable at the entity level since November 2018 and is planning to launch a public issue in 2024.

    “A homegrown brand, at Awfis, we have a deep rooted understanding of our consumers’ needs and are growing year on year at a quick pace. We identify underutilized assets, partner with land owners and deliver Grade A workspaces. We have efficiently deployed our resources to meet our business requirements without hampering the quality of workspaces provided. The entire product portfolio is such that it keeps us ahead of the game.” quotes Awfis founder Amit Ramani.

    Some of the prominent expansions of Awfis in 2024 are:

    • Awfis launched two co-working centers in Bengaluru in August 2024.
    • The company opened a new co-working center in GIFT City, Gandhinagar in September 2024.

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    Awfis Financials

    Awfis reported a net profit of INR 38.67 crore in Q2 FY25, compared to a net loss of INR 4.34 crore in the same period last year.

    The company’s operating revenue rose 40.46% year-on-year to INR 292.38 crore for the quarter. Including other income of INR 9.56 crore, total revenue grew by over 40%, reaching INR 301.95 crore for the quarter ending September 30, 2024.

    Awfis Financials FY23 FY24
    Operating Revenue INR 545 crore INR 849 crore
    Total Expenses INR 612 crore INR 892 crore
    Profit/Loss INR -46.16 crore INR -17.80 crore
    Awfis Financials FY24
    Awfis Financials FY24

    Awfis increased its operating revenue by 55.8%, going from INR 545 crore in FY23 to INR 849 crore in FY24. Total expenses rose by 45.8%, moving from INR 612 crore in FY23 to INR 892 crore in FY24. As a result, the company reduced its losses by 61.4%, from INR 46.16 crore in FY23 to INR 17.80 crore in FY24.

    Awfis Expenses Breakdown

    Awfis’ total expenses rose by 30.85%, reaching INR 287.29 crore in the September 2024 quarter, up from INR 219.55 crore in the same quarter last year.

    Awfis witnessed a notable increase in expenses, surging from INR 612 crore in FY23 to INR 892 crore in FY24.

    EBITDA

    In the first nine months of FY24, Awfis earned INR 617 crore in revenue from customer contracts, up from INR 545 crore in FY23. Its EBITDA was INR 196 crore with a margin of 31%, the same as last year.

    Awfis Financials 9MFY24 FY23
    Revenue from contract with customers INR 617 crore INR 545 crore
    EBITDA INR 196 crore INR 176 crore
    EBITDA Margin 31 31
    Profit after tax INR -19 crore INR -47 crore

    Awfis – Partnership and Tie-Ups

    Awfis has partnered with three companies:

    • Prestige Group
    • Nucleus Office Park
    • NSL (Nuziveedu Seeds Pvt Ltd)

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    Awfis – IPO

    The IPO for Awfis Space Solutions opened on 22nd May 2024 and closed on May 27, 2024. The share of Awfis IPO was listed on 30th May 2024. It was very successful on the first day, with a lot of interest from retail investors and NIIs. The IPO ended with bids that were more than 108 times the number of shares the company offered. The IPO included a new issue of 3,342,037 shares worth INR 128 crore and an Offer-for-Sale (OFS) of 12,295,699 shares worth INR 2,470.93 crore. The total IPO size was INR 598.93 crore. The price range was set at INR 364 to INR 383, with a lot size of 39 shares.

    Awfis – Controversy

    On November 27, 2024, Awfis Space Solutions reported an insider trading violation by its Vice President of Sales, Anindita Seal Sarkar. Sarkar sold 15,764 shares at INR 693.02 each for a total of INR 1.07 crore on September 30, 2024, and later bought 25 equity shares at INR 698.44 each for INR 17,461, without the required clearance. The breach was identified during a routine review on November 26, 2024. Awfis referred the matter to its Audit Committee, stating that Sarkar’s actions violated company policies and regulatory standards. Despite the breach, Awfis confirmed that no monetary penalty had been imposed and that there had been no prior violations reported in the current fiscal year.

    Awfis – Future Plan

    Awfis Space Solutions aims to increase its seats by 50% to reach 135,000, focusing on managed office spaces to grow its revenue. The company plans to add 40,000 seats by FY25, with new centers using the managed aggregation model. A report shows that 15,084 seats were added successfully, mainly through the managed aggregation model. The company is also aiming for a 30% revenue growth in FY25.

    FAQs

    What is Awfis?

    Awfis is a co-working space provider founded in 2015 and based out of New Delhi.

    Who is Awfis owner?

    Awfis was founded by Amit Ramani.

    What are co-working spaces?

    Co-working spaces, just as the term indicates, are working spaces that are shared by two or more employers.

    When was Awfis founded?

    Awfis was founded in April 2015.

  • Lendingkart – How it Extends Working Capital Loans for SMEs?

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

    In the dynamic world of startups, tales of early closures brought on by a lack of funding and operating capital limitations are common. In order to close this significant gap in the market, Harshvardhan Lunia and Mukul Sachan founded Lendingkart in 2014. The corporation saw short-term working capital provision for new ventures as an ongoing difficulty and set out to transform it.

    The goal of Lendingkart is to support your businesses financially so you can survive the difficult dynamics of the sector. This overview examines how Lendingkart, led by Mukul Sachan and Harshvardhan Lunia, has emerged as a key player in helping startups close the funding gap, thereby fostering expansion and operational success.

    In this article, let’s explore the world of Lendingkart—its founders, mission and vision, funding and investors, growth, and more.

    Lendingkart – Company Highlights

    Startup Name Lendingkart
    Headquarters Ahmedabad, Gujarat, India
    Sector Fintech
    Founder Harshvardhan Lunia and Mukul Sachan
    Founded 2014
    Website lendingkart.com

    Lendingkart – About
    Lendingkart – Industry
    Lendingkart – Founders and Team
    Lendingkart – Startup Story
    Lendingkart – Mission and Vision
    Lendingkart – Name, Tagline, and Logo
    Lendingkart – Business Model
    Lendingkart – Revenue Model
    Lendingkart – Challenges Faced
    Lendingkart – Funding and Investors
    Lendingkart – Investments
    Lendingkart – Mergers and Acquisitions
    Lendingkart – Growth
    Lendingkart – Advertisements and Social Media Campaigns
    Lendingkart – Awards and Achievements
    Lendingkart – Competitors
    Lendingkart – Future Plans

    Lendingkart – About

    Lendingkart is helping micro, small, and medium-sized enterprises access working capital loans to facilitate the easy functioning of the enterprise. The whole idea behind Lendingkart is that entrepreneurs in the 35–45 age bracket need short-term working capital loans for their SMEs. Lendingkart’s whole business module revolves around facilitating the availability of credit to small and microbusinesses digitally, and this process is effectively driven by data and analytics. So, cutting a long story short, it lends short-term capital loans to the companies that need them to carry on with their day-to-day activities.

    Lendingkart aims to solve the huge gap in developing markets where firms have to wait for days before they get paid by their previous clients. And this possesses a huge hurdle for many who haven’t ploughed back any profits. Therefore, Lendingkart came into being to service these firms because their options are severely limited, as traditional banks find them too risky to lend money.

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    Lendingkart – Industry

    India’s digital lending market has witnessed an extraordinary Compound Annual Growth Rate (CAGR) of 132% from 2017 to 2022. This remarkable growth is attributed to the transformative impact of new digital lending enterprises on the country’s traditional financial landscape. Notably, investments exceeding $1 billion have been poured into the Indian digital lending sector, underscoring the high confidence that investors place in its potential for further expansion.

    The momentum is set to propel the digital lending sector to an astonishing USD 515 billion by 2030, as projected by a comprehensive analysis from IIFL FinTech. This significant forecast not only positions India as a major player in the global digital lending ecosystem but also reflects the increasing acceptance and integration of digital financial services into the nation’s economic fabric.

    Lendingkart – Founders and Team

    Harshvardhan Lunia & Mukul Sachan (L to R) Lendingkart Founders
    Harshvardhan Lunia & Mukul Sachan (L to R) Lendingkart Founders

    Harshvardhan Lunia

    Harshvardhan Lunia is the co-founder and CEO of Lendingkart. Before founding Lendingkart, Harshvardhan was a founder and director at Domestic Finance and Investment private limited. A chartered accountant by profession, Harshvardhan also worked as a Relationship Manager at ICICI Bank, City Manager (SME banking) at Standard Chartered Bank, and Small Business Relationship Manager at HDFC Bank, before starting his entrepreneurial journey.

    Mukul Sachan

    Mukul Sachan, co-founder of Lendingkart and an alumnus of IIT and IIM, with extensive experience in engineering and finance, exited Lendingkart in May 2019 to launch his venture, Optimus Capital. Later, he assumed the role of Managing Director at Affinidi India, contributing his expertise to the fintech sector’s leadership.

    Lendingkart – Startup Story

    The path Harshvardhan took changed when he made the decision to quit his London job in order to pursue his goal of launching a debt consulting platform. Having experience with Awards, particularly small ones, and their funding plans, he decided to pursue entrepreneurship. Even though the first enterprise did not live up to expectations, it was a turning point that encouraged him to look for ideas from profitable businesses in the US, UK, and China.

    The idea for Lendingkart was born out of this investigation and study in 2014. Motivated by the goal of filling financial gaps in neglected Indian market segments, Harshvardhan imagined a debt advising platform that would resemble well-established international models. This initiated the groundbreaking journey of Lendingkart to rethink financial help for Indian enterprises.

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    Lendingkart – Mission and Vision

    The mission of Lendingkart Group is to provide enterprises with easy access to working capital financing; therefore, they won’t have to worry about the gaps in their cash flows and can concentrate on their business.

    Lendingkart vision is to build a business that can generate a greater Return on Equity (ROE) while still being sustainable.

    Name – Lendingkart

    Lendingkart Logo
    Lendingkart Logo

    The Lendingkart tagline says, “Simplifying MSME Finance.”

    Lendingkart – Business Model

    Lendingkart distinguishes itself through a business model centered around the customer, prioritizing minimal effort for business owners seeking financing. This customer-centric approach aims to alleviate financial burdens, enabling entrepreneurs to focus on the growth of their enterprises rather than being weighed down by constant money concerns. As the favored financing option for small and medium business owners in India, Lendingkart’s emphasis on expedited procedures, rapid accessibility, and commitment to facilitating business expansion sets it apart in the dynamic landscape of Indian businesses.

    The distinctive attributes of Lendingkart, including a streamlined process and quick access to funds, resonate with businesses seeking financial solutions. This commitment to a hassle-free experience and a clear focus on business expansion further solidifies Lendingkart’s position as the preferred financial choice, addressing the evolving needs of entrepreneurs in the dynamic Indian business environment.

    Lendingkart – Revenue Model

    Lendingkart, specializing in serving small and medium businesses, predominantly garners revenue through the interest income generated from the loans it extends. This primary income source is driven by the interest charged on the financial support provided to businesses seeking capital. In addition to interest income, Lendingkart diversifies its revenue channels through commissions, advertising, and gains on the assignment of loans.

    A noteworthy contributor to commission income is the innovative 2gthr program, which stands for “together.” Through 2gthr, Lendingkart collaborates with both banks and non-banking financial corporations (NBFCs) to offer co-lending services, providing an additional avenue for revenue generation and fostering collaborative financial solutions.

    Lendingkart – Challenges Faced

    Every business has particular difficulties, and Lendingkart is no exception. Throughout its assistance of Micro, Small, and Medium-Sized Enterprises (MSMEs), Lendingkart has faced unique challenges. Among these is the susceptibility of these businesses to changes in the market, which can have an impact on revenue even on modest drops in sales. Since many MSMEs do not have official financial records or a credit history, evaluating creditworthiness becomes difficult.

    Longer loan disbursement periods and the paperwork associated with loan applications contribute to the complexity. Geographical restrictions make quick loan approval difficult because the majority of MSMEs are located in rural areas. Lendingkart’s objective to effectively help MSMEs is further complicated by language difficulties, with businesses more comfortable speaking in regional languages, the lack of collateral or guarantees, and high interest rates from gray market players.

    Lunia, in 2022, said, “Even today, the credit process in traditional FIs takes months as credit evaluations are hampered due to the absence of crucial data points. When we started in 2014, MSMEs had very few resources, and the ones that existed should have done some hand-holding for business owners due to the complicated nature of these transactions. But no one did it.”

    Lendingkart – Funding and Investors

    Lendingkart has raised 18 rounds of funding to date, which equals $325.7 million.

    Some of the funding details are:

    Funding Date Stage Amount Investors
    Jun 3, 2024 Debt Financing $12.1 million Stride Ventures
    May 7, 2024 Convertible Note $10 million BlueOrchard Finance S A
    Jun 27, 2023 Debt Financing $24.3 million EvolutionX
    Aug 12, 2022 Convertible Note $6.1 million –
    July 2, 2022 Debt Financing $9.1 million GMO LLC and Triodos Investment Management
    Jan 12, 2022 Debt Financing $5.95 million BlueOrchard Finance Ltd
    Apr 6, 2021 Debt Financing $15 million FMO
    May 19, 2020 Series D $38.8 million Bertelsmann India Investments, Fullerton Financial Holdings, India Quotient, Sistema Asia Capital
    Aug 16, 2019 Venture Round $2.55 million Sistema Asia Capital
    Aug 9, 2019 Series D $25.8 million Fullerton Financial Holding, Bertelsmann India Investments and India Quotient.
    Jun 17, 2019 Debt Financing $9.7 million Alteria Capital
    Feb 12, 2018 Series C $87 million Fullerton Financial Holdings

    In 2024, Temasek’s Fullerton picks up a controlling stake in Lendingkart for INR 252 cr.

    Lendingkart – Investments

    On April 5, 2019, Lendingkart made a strategic investment in Federal Transport Private Limited through a Debt Financing Round.

    Lendingkart – Mergers and Acquisitions

    Lendingkart has expanded its portfolio through strategic acquisitions, with the recent addition being Upwards Fintech on February 8, 2023, involving a substantial amount of INR 100 crore. Prior to this, the company acquired Kountmoney on October 18, 2016, further enhancing its position in the financial landscape.

    Lendingkart – Growth

    Lendingkart has been founded in 2014 in Ahmedabad. The company first started with a single office in Ahmedabad, it has gradually set up several other offices as well, in Bengaluru, Gurgaon, Mumbai, Hyderabad, and is currently also offering pan-India services. All of these directly indicate that Lendingkart is a growing company.

    It has also cultivated a robust presence, extending its reach across an extensive network of 14,700+ pin codes within 4,100+ cities and towns. With a commendable track record, the company has facilitated the successful disbursement of 3,00,000+ loans, totaling an impressive INR 20,000+ crore to date. This widespread reach underscores Lendingkart’s dedication to delivering financial solutions to businesses in both urban and rural areas, establishing itself as a key player in the financial landscape.

    Financials

    Lendingkart Financials FY22 FY23 FY24
    Operating Revenue INR 616 crore INR 798.5 crore INR 1090.6 crore
    Total Expenses INR 889 crore INR 684.4 crore INR 1022.7 crore
    Profit/Loss Loss of INR 203 crore Profit of INR 185.93 crore Profit of INR 174.92 crore
    Lendingkart Financials
    Lendingkart Financials

    Expenses

    Lendingkart total expenses has increased from INR 684.4 crore in FY23 to INR 1022.7 crore in FY24.

    EBITDA

    Lendingkart FY22-FY24 FY22 FY23 FY24
    EBITDA Margin -34% 53.37% 44.39%
    Expense/Rs of Op Revenue INR 1.44 INR 0.86 INR 0.94
    ROCE -17% 25.26% 23.33%

    Lendingkart – Advertisements and Social Media Campaigns

    Lendingkart Campaign

    Campaigns from Lendingkart, which feature Rajkummar Rao as their brand ambassador, cleverly illustrate the difficulties that companies may have in the absence of enough funding. TILT Brand Solutions cleverly narrates the story using the term ‘atakna,’ which means becoming stuck, in their concept.

    Lendingkart offers ways to increase companies’ access to capital by utilizing data and technology. These minimalist short films are meant to be easily understood, and Rajkummar Rao’s magnetic presence lends a certain something more.

    Lendingkart – Awards and Achievements

    Lendingkart has earned several awards and achievements. Here are the details:

    • 2020: Dream Company to Work For
      Acknowledged by World BFSI, affirming our dedication to providing an exceptional work environment.
    • 2020: Most Influential Business Leader
      Honored by World BFSI, recognizing the leadership prowess of our visionary founder.
    • 2020: Digital Technology Award
      Secured at the Business Leader of the Year Awards, underscoring our technological prowess.
    • 2019: Best Lending Tech of the Year
      Conferred at the 9th India Digital Awards, a testament to our cutting-edge lending technology.
    • 2019: Best Fintech Award
      Received in the Lending category from KPMG and Business Today, highlighting our fintech excellence.
    • 2019: SIDBI ET India MSE Award
      Earned in the Fintech Lender’s category at SIDBI-ET India MSE Awards, reinforcing our impact in the industry.
    • 2019: Best Lending Tech of the Year
      Recognized by ABP News BFSI Awards, showcasing our continued excellence in lending technology.
    • 2019: Fintech Personality of the Year
      Acknowledged by ABP News BFSI Awards, honoring our leadership in the fintech space.
    • 2018: Dream Companies to Work For
      Positioned in the financial services category by Times Ascent, reflecting our commitment to a fulfilling workplace.
    • 2018: Deal of the Year
      Acknowledged by APAC Insider, recognizing our impactful business transactions.
    • 2017: Startup of the Year
      Conferred at Express IT Awards 2017 organized by Financial Express, a testament to our groundbreaking startup journey.
    • 2016 – 2019: Global Fintech100 & Global Top 50 Established Fintech Firms
      Recognized consistently by KPMG and H2 Ventures, solidifying our global standing in the fintech domain.

    Lendingkart – Competitors

    Lendingkart Technologies operates as a fintech company in the working capital space. Lendingkart’s top competitors working in the same domain include ventures like:

    • InCred
    • Indifi
    • Aye
    • Reink Media Group
    • Advanced Credit Technologies

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    Lendingkart – Future Plans

    According to a June 2023 news report, Lendingkart has set an ambitious goal for the fiscal year 2023–2024. Lendingkart Group’s visionary CEO and founder, Harshvardhan Lunia, is full of confidence that the company’s main operation would cross a significant milestone—that of INR 6,000 crore. This estimate represents a significant improvement above the INR 4,000 crore distributed during the fiscal year (FY23). Lendingkart’s dedication to growth and innovation highlights its crucial role in transforming the financial technology industry.

    FAQs

    What is Lendingkart?

    Lendingkart is an Ahmedabad-based online financing company, which helps SME attain short-term working capital loans.

    Where are the Lendingkart headquarters?

    Lendingkart headquarters is in Ahmedabad, Gujarat, India.

    Who are the founders of Lendingkart?

    Harshvardhan Lunia and Mukul Sachan are the founders of Lendingkart.

  • AI, Innovation and People-Centric Leadership: The EY Story

    Ernst & Young (EY) is a global leader in professional services, renowned for its innovative solutions and commitment to helping organizations thrive in an ever-changing business landscape. From leveraging cutting-edge technologies like artificial intelligence to pioneering industry-leading platforms, the organization continues to set benchmarks in delivering value to its clients.

    But what truly stands out is EY’s ability to support startups and emerging enterprises with the same dedication it extends to multinational corporations—helping them reach their full potential.

    In this StartupTalky, we will find out how EY’s innovative approaches, strategic partnerships, and deep expertise empower business enterprises, governments, and powerful entities to navigate challenges, scale sustainably, and make a lasting impact. Let’s also learn about its founders, history, business model, revenue model, funding, competitors, and more.

    EY- Company Highlights

    Name EY
    Headquarters London, United Kingdom
    Sector Professional Services (Assurance, consulting, strategy and transactions and tax services)
    Founder Arthur Young and Alwin C Ernst
    Founded 1989
    Website www.ey.com/en_in

    EY – About
    EY – Industry
    EY – Founders and Team
    EY – Startup Story
    EY – Mission and Vision
    EY – Name, Tagline and Logo
    EY – Business Model
    EY – Revenue Model
    EY – Challenges Faced
    EY – Funding and Investors
    EY – Mergers and Acquisitions
    EY – Growth
    EY – Advertisements and Social Media Campaigns
    EY – Awards and Achievements
    EY – Competitors
    EY – Future Plans

    EY – About

    EY empowers businesses to create long-term value for all stakeholders by combining data-driven insights and advanced technology. Through its comprehensive services, EY helps organizations build trust, transform operations, and achieve sustainable growth. EY-Parthenon delivers actionable strategies by merging innovation with pragmatic thinking while consulting services prioritize human-centric approaches, rapid technology integration, and scalable innovation. With a focus on workforce development, transaction, and corporate finance, EY reshapes business ecosystems and unlocks the potential of people to drive competitive advantage. From assurance services that foster trust in capital markets to tax and legal solutions designed for an ever-changing global landscape, EY provides the expertise needed to navigate complexity. Their technology-driven solutions reimagine industries and managed services free businesses to focus on innovation. EY’s commitment to sustainability ensures that value creation benefits society and the planet, making it a trusted partner for organizations aiming to thrive in a rapidly evolving world.

    Ernst & Young – Industry

    The Indian tax consulting market has experienced remarkable growth, expanding by 9% over the past year to achieve revenues of approximately $6.5 billion (INR 42,500 crore). This trajectory is expected to continue, with another 9% growth projected by 2018, pushing the market’s value to around $7.1 billion (INR 46,500 crore). The growth surge is largely attributed to the implementation of the Goods and Services Tax (GST), which has significantly increased demand for tax advisory services. Research from Consultancy.in, based on Statista data, highlights the pivotal role of the Big Four firms, whose aggressive expansion strategies have driven this trend.

    The GST regime has introduced compliance requirements for an estimated 9 million companies in India, creating unprecedented demand for tax consultants. Conservative estimates suggest the need for 1.3 million additional tax consultants, with large companies requiring approximately five consultants each and mid-sized firms needing at least one. This demand is poised to further fuel the growth of the tax consulting sector.

    Similarly, the broader Indian business and management consulting market has seen steady progress, growing 6% annually, and is expected to reach a value of $12.348 billion by next year. This consistent expansion reflects the increasing complexity of business operations and the growing reliance on professional advisory services.

    EY – Founders and Team

    Alwin C. Ernst

    Alwin Ernst - Co-founder, E&Y
    Alwin Ernst – Co-founder, E&Y

    Alwin C. Ernst, a visionary accountant, co-founded Ernst & Ernst in Cleveland, Ohio, in 1903 alongside his brother Theodore. His innovative approach to accounting and focus on quality services laid the foundation for what would become one of the world’s leading professional services firms.

    Arthur Young

    Arthur Young - Co-founder, E&Y
    Arthur Young – Co-founder, E&Y

    Arthur Young, a Scottish accountant with a passion for entrepreneurship, founded Arthur Young & Co. in Chicago in 1906. After moving to the United States in 1890, he dedicated himself to advancing the accounting profession and providing strategic financial solutions to clients, setting the stage for global impact.

    Janet Truncale

    Janet Truncale - Global Chair and CEO, EY
    Janet Truncale – Global Chair and CEO, EY

    Janet Truncale is the EY Global Chair and CEO, leading one of the world’s largest and most influential professional services organizations. With a career marked by innovation and excellence, Janet has played a pivotal role in shaping EY’s strategic vision and global operations.

    Before assuming her current position, Janet served as EY Vice Chair and Regional Managing Partner of the Americas Financial Services Organization (FSO), where she managed a diverse team of over 14,000 professionals across 90 offices. Her extensive experience includes providing assurance and consulting services to Fortune 500 companies and collaborating with boards, audit committees, and senior management to address complex business challenges.

    Joining EY as an intern, Janet advanced through a variety of leadership roles, including Americas FSO Assurance Managing Partner, Banking and Capital Markets Co-Sector Leader, and Initial Public Offering Leader. She has also served as a Global Client Service Partner and Senior Advisory Partner to some of EY’s biggest clients.

    Janet holds a BSE from The Wharton School at the University of Pennsylvania and an MBA from Columbia University. A certified public accountant in New York and a member of the American Institute of Certified Public Accountants, she has earned recognition as one of the “25 Most Influential Women” by the Financial Times. Janet’s journey is a testament to her expertise, leadership, and unwavering commitment to empowering businesses worldwide.

    EY – Startup Story

    EY’s current partnership was officially established in 1989 through the merger of two prominent accounting firms, Ernst & Whinney and Arthur Young & Co. Initially known as Ernst & Young, the firm underwent a rebranding in 2013, formally adopting the widely recognized abbreviation “EY.” However, this shorthand had already been in informal use long before its official endorsement.

    The firm’s roots trace back over 150 years, with a rich history shaped by multiple mergers of predecessor firms. The oldest of these, Harding & Pullein, was founded in England in 1849. That same year, Frederick Whinney joined the firm, eventually becoming a partner a decade later. By 1894, after his son joined the practice, the firm was renamed Whinney, Smith & Whinney, solidifying its legacy within the accounting profession. This lineage reflects EY’s enduring commitment to growth, innovation, and professional excellence.

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    EY – Mission and Vision

    Vision

    EY envisions a better working world where trust and confidence drive progress in global capital markets and economies. Their focus is on fostering innovation, creating sustainable growth, and making meaningful contributions to businesses and communities around the world.

    Mission

    EY’s mission is to deliver top-tier services and insights that help businesses tackle challenges, achieve breakthroughs, and modernize key processes like finance and supply chain strategies. They are dedicated to developing exceptional leaders who create lasting value for stakeholders while championing sustainable, inclusive growth. Through these efforts, EY continues to play a pivotal role in shaping a better future for its clients, people, and communities.

    EY Logo and Tagline
    EY Logo and Tagline

    “Shape the future with confidence” – EY’s tagline encapsulates their commitment to empowering businesses and individuals to navigate challenges and seize opportunities with assurance and clarity.

    EY introduced its current logo in 2013 as part of its rebranding from Ernst & Young to EY. The design symbolizes the collective knowledge, experience, and insight of their people, all working together to create a “better working world.” The yellow in the logo reflects optimism, light, and energy, reinforcing EY’s dedication to delivering impactful and forward-thinking solutions.

    EY – Business Model

    EY’s business model revolves around building and nurturing strong client relationships while delivering tailored solutions across diverse industries. Key elements of their approach include:

    • Customized Services: Each client is assigned a dedicated account manager and engagement team, ensuring services are customized and communication is consistent.
    • Reliable Support: EY provides continuous assistance, helping clients adapt to evolving business landscapes and regulatory challenges.
    • Training and Workshops: EY offers programs to empower clients with the knowledge and skills needed to tackle complex business issues effectively.
    • Purpose-driven Assistance: By publishing reports, articles, and whitepapers on industry trends, EY shares valuable insights that establish expertise and guide clients in decision-making.

    EY serves a wide range of clients, categorized into key segments:

    1. Large Multinational Corporations: Supporting global companies across sectors like finance, healthcare, and technology with audit, tax, consulting, and advisory services.
    2. Small and Medium-Sized Enterprises (SMEs): Offering solutions to navigate regulatory complexities and manage growth.
    3. Government Agencies: Assisting in policy development, program evaluation, and operational advice.
    4. Non-Profit Organizations: Providing support in governance, risk management, and financial reporting.

    EY – Revenue Model

    EY generates revenue through professional fees charged for its services, tailored to the nature of each engagement. These fees may be structured as fixed, hourly, or performance-based. The primary sources of EY’s revenue include:

    1. Advisory: Providing expertise in specialized areas like mergers and acquisitions, capital markets, and regulatory compliance.
    2. Tax Services: Offering tax planning, compliance, and advisory solutions that help clients navigate complex regulations and optimize tax liabilities.
    3. Consulting: Supporting clients in areas such as business strategy, operations, technology implementation, and risk management.
    4. Audit and Assurance: Delivering independent audits and assurance services to verify financial statement accuracy and ensure compliance with accounting standards.

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    EY – Challenges Faced

    Delivering successful business transformations is no easy feat. It requires seamless alignment across people, processes, technology, data, and governance. Yet, many organizations struggle to realize the full benefits of their efforts. A transformation mindset, where people are central to the process, is essential. This approach not only fosters innovation at scale but also enables technology to be implemented at speed.

    Recent survey insights emphasize the value of a structured Project Management Office (PMO) in driving effective transformation. Interestingly, 56% of respondents reported an acceleration in their organization’s transformation agenda in 2022, particularly in digital innovation. However, challenges continued, including limited senior leadership support, inadequate resources, and a lack of a clear vision.

    The Role of Emerging Technologies

    Data analytics is becoming a cornerstone of transformation initiatives, with 46% of respondents identifying it as a critical focus area for delivering projects and programs. While the use of Artificial Intelligence (AI) in transformation has dipped, this underutilized technology is positioned to grow in importance.

    As AI begins to demonstrate its value throughout the project lifecycle, it will enhance organizations’ ability to manage complex transformation efforts effectively.

    Sustainability at the Core

    Sustainability is no longer a peripheral concern; it is becoming deeply intertwined with core transformation strategies. Over half of the survey participants believe that sustainability will drive their corporate strategies moving forward. Among organizations planning to establish a Transformation Management Office (TMO), 63% identified sustainability as a key value driver, signaling a broader acceptance of its role in transformative programs.

    Delivering Transformation

    The landscape of business transformation is evolving rapidly. Organizations must adapt by fostering a culture of innovation, agility, and collaboration. To meet the demands of this new era, having robust project management frameworks is non-negotiable. With the right structures in place, organizations can deliver transformations with speed and precision, ensuring they stay ahead in a dynamic world.

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    EY – Funding and Investors

    Ernst & Young (EY) has been involved in noteworthy exits, including Kanisa and NetDecide, showcasing its ability to identify and support innovative ventures. In 2023, growth investments emerged as the driving force behind Private Equity and Venture Capital (PE/VC) activity, accounting for a substantial US$17.1 billion across 147 deals.

    The infrastructure sector led the charge, attracting US$11.6 billion across 57 deals, marking a 29% year-on-year growth.

    Date Name Round Amount
    Aug 28, 2018 ModesTree.com Angel Round –
    Aug 28, 2001 Kanisa Series E –
    Jul 26, 2000 Kanisa Series D –
    Jun 16, 2000 NetDecide Venture Round –

    EY – Mergers and Acquisitions

    Ernst & Young (EY) continues to expand its global reach and service capabilities with strategic acquisitions, having successfully acquired 55 organizations to date. The most recent addition to its portfolio is Dignari.

    Acquiree Name Date Price
    Dignari Oct 28, 2024 –
    Nuvalence Apr 26, 2024 –
    denkstatt Apr 23, 2024 –
    adameo Mar 21, 2023 –
    ifb group Dec 8, 2022 –
    Bridge Business Consulting Nov 21, 2022 –
    Red Moki Oct 11, 2022 –
    Cambria Solutions Aug 16, 2022 –
    Digital Detox Aug 1, 2022 –
    Q4 Associates Aug 1, 2022 –

    EY – Growth

    Combined Revenue of EY Worldwide from 2014 to 2024
    Combined Revenue of EY Worldwide from 2014 to 2024

    Revenue Growth: EY reported a 3.9% increase in global revenue for the fiscal year ending June 2024, reaching a total of $51.2 billion. Revenue grew across all service lines:

    • Tax Services led growth with a 6.3% increase in local currency (6.7% in USD).
    • Assurance showed a 6.3% rise in local currency (5.8% in USD).
    • Strategy and Transactions (SaT) grew by 2.3% in local currency (2.8% in USD).
    • Consulting remained steady, with a 0.1% increase in local currency (unchanged in USD).

    Technological Advancements: EY continues investing in cutting-edge technology to support client transformations:

    • EY Fabric, the core technology platform, now serves over 2 million unique users across 180 countries.
    • In September 2023, EY launched:
      • EY.ai, is an integrated platform combining AI with human expertise across services like strategy, risk, tax, and assurance.
      • EYQ, a private large language model (LLM), rolled out to the global workforce. Over 70% of EY employees are trained in the responsible use of AI and 75% have utilized EYQ, generating 68 million prompts since its launch. EYQ has earned multiple awards for its AI and innovation excellence.

    In FY25, EY plans to expand the integration of AI into its operations, helping clients adopt AI responsibly for transformative growth.

    Strategic Partnerships: EY has built a robust network of 100+ ecosystem alliances, 20 of which were added in FY24. These partnerships drive 48% of EY’s growth by blending technology, data, and sector expertise. Over the last five years, EY’s alliance partner revenues have grown at a 31% compound annual growth rate (CAGR).

    Sustainability Initiatives: EY remains committed to reducing greenhouse gas (GHG) emissions. Achievements in FY24 include:

    • A 40% reduction in total GHG emissions compared to FY19 levels.
    • A 42% reduction in Scope 3 travel emissions, supported by initiatives that have prevented an additional 98,000 tons of CO2e, equal to nearly 20% of travel emissions.

    Value-Driven Reporting: EY’s integrated annual report, Value Realized, details financial performance alongside environmental, social, and governance (ESG) initiatives. It underscores EY’s dedication to creating long-term value for clients, employees, and society.

    With continued investments in AI, sustainability, and ecosystem alliances, EY remains at the forefront of innovation and growth, helping businesses transform and thrive in a complex global landscape.

    EY – Advertisements and Social Media Campaigns

    EY’s New Marketing Campaign: “The Face of the Future”

    EY.ai – The Face of the Future

    EY has launched a groundbreaking, fully integrated marketing campaign, “The Face of the Future,” to emphasize the importance of keeping humans at the center of artificial intelligence (AI) transformation. This campaign showcases EY.ai, the organization’s unifying AI platform, and underscores how human-centric innovation can unlock the exponential value of AI.

    Highlights of the Campaign:

    • People-Centered Approach: Over 200 EY employees worldwide were featured, illustrating that confidence in AI starts with prioritizing human involvement in technological advancements.
    • Innovative Production Techniques:
      • A bespoke one-shot StyleGAN model was developed to highlight individual facial features, animating still images into dynamic, expressive visuals.
      • A single professional voice recording was transformed using voice AI technology to create an unlimited array of voices that precisely synchronized with the animated visuals.
      • The campaign’s innovative production techniques saved hundreds of hours typically spent on traditional filming and editing.
    • Creative Storytelling: By combining cutting-edge AI and creative artistry, EY delivers a powerful message about the future of work and the role humans will continue to play alongside AI.

    EY’s Digital Marketing in Action: The Global Information Security Survey

    Another standout digital marketing initiative by EY is its Global Information Security Survey (GISS), an annual study providing valuable insights into cybersecurity trends and challenges.

    Strategic Elements of the Campaign:

    1. Comprehensive Reporting: EY publishes an in-depth, visually engaging report featuring infographics and interactive elements tailored to CIOs, IT managers, and decision-makers.
    2. Omnichannel Promotion:
      • The findings are shared across EY’s website, email newsletters, and social media platforms.
      • Paid ads on LinkedIn and Google Ads boost visibility and reach.
    3. Content Syndication: EY partners with industry-specific publications and platforms to syndicate the report, increasing exposure and driving traffic to its website.
    4. Performance Metrics: The campaign garners strong engagement, including:
      • High download rates.
      • Increased social media interactions.
      • Widespread media coverage.

    Impact:

    The GISS campaign not only positions EY as a thought leader in cybersecurity but also strengthens its reputation and generates high-value leads.

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    EY – Awards and Achievements

    Technology Awards

    EY has consistently been recognized for its innovative work in technology, earning accolades in various categories:

    • Machine Learning: EY Fabric won the Machine Learning category in the 2022 AI Tech Awards.
    • Platform as a Service: EY Fabric secured a Silver Stevie Award in the Platform as a Service category at the 2022 Stevie Awards.
    • DevOps Solutions: EY achieved a Silver Stevie Award for DevOps Solutions in the 2022 Stevie Awards.
    • Metaverse Technology: EY won the Metaverse Tech of the Year award at the 2023 National Technology Awards.

    Business Awards

    EY’s dedication to its people, partners, and entrepreneurial spirit is reflected in its business honors:

    • Fortune 100 Best Companies to Work For EY has been named one of the Fortune 100 Best Companies to Work For an impressive 26 years in a row.
    • Entrepreneur of the Year: EY’s renowned Entrepreneur of the Year program celebrates global leaders, with the 2024 world winner being Vellayan Subbiah of India.
    • Partner of the Year Awards: EY has earned Partner of the Year awards from major tech companies, including:
      • ServiceNow
      • UiPath
      • Adobe
      • SS&C Blue Prism
      • Pega
      • SAS

    EY – Competitors

    EY has major competitors in consulting, technology, and professional services. Some of these are listed below:

    EY – Future Plans

    EY envisions a transformative future for India, leveraging the nation’s unique strengths to drive sustainable growth and innovation. With its critical role in global economic development, India is poised for immense progress, particularly in infrastructure, energy, and technology. However, alongside these opportunities come challenges like decarbonization, digital transformation, and ensuring equitable growth—all areas where EY is stepping in as a trusted advisor and strategic partner.

    The infrastructure sector is on the cusp of a revolution, with investments under the National Infrastructure Pipeline (NIP) projected at $1.4 trillion by 2025. EY emphasizes the need for differentiation to attract investments in an increasingly competitive landscape. Innovative models like GIFT City are paving the way, combining financial innovation and global connectivity to draw significant foreign direct investments (FDIs).

    Energy demand is also set to nearly double by 2030, pushing India to adopt sustainable power solutions. EY is committed to helping industries and governments meet these demands while aligning with decarbonization goals.

    EY’s projections paint an optimistic picture: India’s per capita income is expected to surpass $13,000 by 2045, fueled by strategic infrastructure investments and private-sector collaboration. Additionally, India’s Global Capability Centers (GCCs) are predicted to grow exponentially, with cities like Coimbatore emerging as rising stars.

    From fostering digital adoption in governance to promoting Diversity, Equity, and Inclusion (DEI), EY is charting a roadmap to a future where innovation and inclusivity go hand in hand.

    FAQs

    What does EY do?

    EY (Ernst & Young) is a company that advises businesses. It helps with taxes, checking accounts, and planning for growth. It also helps companies follow rules and use technology better.

    Who are the founders of EY?

    EY was founded by Arthur Young and Alwin C. Ernst in 1989 after their companies merged.

    • Arthur Young started Arthur Young & Co. in 1906 in the U.S.
    • Alwin C. Ernst started Ernst & Ernst in 1903 in the U.S.

    Their firms joined to create Ernst & Young, now called EY.

    Who is the CEO of EY?

    Janet Truncale is the Global Chair and CEO of EY.

    Who are the main competitors of EY?

    The main competitors of EY include PWC, Deloitte, KPMG, Accenture, Wipro, and more.

  • TBO Tek: Revolutionizing Travel with Technology-Driven Solutions

    TBO Tek, a trailblazer in the travel technology landscape, has been transforming how travel suppliers and buyers connect across the globe. As a leading B2B platform, TBO Tek empowers travel agents, tour operators and online travel agencies with streamlined access to an expansive network of hotels, flights, car rentals, cruises and more. Through its asset-light business model and data-driven approach, the company creates unmatched value by helping suppliers showcase their inventory and enabling buyers to easily book travel across a range of segments—including leisure, corporate and religious travel.

    As demand for international travel rises, TBO Tek is positioning itself to leverage this growth with strategic investments in technology, international acquisitions and innovative solutions like its multi-currency, multi-lingual platform. With a track record of profitability and a focus on high-margin offerings, the company is set to capture a larger share of the expanding travel market.

    In this StartupTalky article we will explore TBO Tek’s journey, its history, growth, funding, business model, hardships, revenue model, funding, growth, challenges, competitors, and more.

    TBO Tek – Company Highlights

    Name TBO Tek
    Headquarters New Delhi, India
    Sector Global online travel distribution
    Founder Gaurav Bhatnagar and Ankush Nijhawan
    Founded November 6, 2006
    Website tbo.com

    TBO Tek – About
    TBO Tek – Industry
    TBO Tek – Founders and Team
    TBO Tek – Startup Story
    TBO Tek – Mission and Vision
    TBO Tek – Name, Tagline and Logo
    TBO Tek – Business Model
    TBO Tek – Revenue Model
    TBO Tek – Challenges Faced
    TBO Tek – Funding and Investors
    TBO Tek – Mergers and Acquisitions
    TBO Tek – Growth
    TBO Tek – IPO
    TBO Tek – Advertisements and Social Media Campaigns
    TBO Tek – Awards and Achievements
    TBO Tek – Competitors
    TBO Tek – Future Plans

    TBO Tek – About

    Travel Boutique Online stands as India’s premier travel distribution platform, empowering travel agents and tour operators to provide seamless, competitively-priced services to their customers. Since their inception, they’ve been delivering an extensive range of travel solutions to agencies across India—from bustling metros like Delhi, Mumbai, Chennai and Kolkata, to smaller cities—helping businesses expand and thrive in the travel industry. Their offerings include White Label Solutions, APIs for hotel and flight bookings, dynamic packaging and, more recently, mobile app development to meet the growing demands of the digital travel landscape.

    TBO Tek – Industry

    India’s online travel market reached a valuation of $15.6 billion in 2023 and is set to grow to about $28.4 billion by 2029, with a projected CAGR of 10.5% over 2024–2029. By 2024, the market size is estimated to be around $17.24 billion, showing steady growth as the country remains a dynamic and diverse destination for travel and tourism.

    Although the COVID-19 pandemic impacted India’s travel industry, it also presented a unique consolidation opportunity, allowing stronger companies to expand through acquisitions. Domestic tourism, in particular, is rebounding, driven by pent-up demand. Travel firms have reported a 25-30% boost in bookings for air travel and accommodations, especially for popular holiday seasons like Christmas and New Year’s.

    Mobile apps have become crucial in this market, with major players like MakeMyTrip, Yatra, Cleartrip, Goibibo and Booking.com leading the way. Their user-friendly apps allow travelers to book flights, hotels, holiday packages and even car rentals seamlessly on the go, making online bookings more accessible and convenient than ever.

    TBO Tek – Founders and Team

    Gaurav Bhatnagar and Ankush Nijhawan are the co-founders and joint Managing Directors of TBO Tek.

    Gaurav Bhatnagar

    Gaurav Bhatnagar - Co-founder and Joint Managing Director, TBO Tek
    Gaurav Bhatnagar – Co-founder and Joint Managing Director, TBO Tek

    Gaurav Bhatnagar is the co-founder and joint Managing Director of TBO Tek.

    Twenty years ago, on Halloween, Gaurav Bhatnagar took a one-way flight from Seattle to Delhi. In 2004, it was quite unconventional for a middle-class professional to leave a prestigious job at Microsoft to return to India, but he was determined to fulfill a promise he’d made to himself.

    Going to the US after graduation was never part of his initial plan. He had witnessed the first dot-com boom of 1999-2000 and was already set on building his own company. However, the Microsoft offer came along and it was too good to pass up. Back then, taking a job in the US often felt like a one-way commitment, but he promised himself that he would return after two years.

    Gaurav ultimately spent nearly three years in Redmond. His time there transformed him, leaving him with unforgettable memories and friendships. He experienced firsthand the dynamics of a world-class tech company, working in an era when Microsoft was widely regarded as the gold standard. These experiences left a lasting impression on him and shaped his own ideas on building a company.

    Shortly after returning to India, his entrepreneurial journey began and the rest, as he says, is his own little piece of history.

    With a bachelor’s degree in computer science and engineering from the Indian Institute of Technology, Delhi, he began his career with Microsoft Corporation. He is also a member of the executive committee of the World Travel & Tourism Council (WTTC) and co-founded both TBO and Tekriti Software Private Limited. Mr. Bhatnagar joined the company’s Board of Directors on November 6, 2006 and has been integral to its growth since its inception.

    Beyond his role at the company, he serves as a director at several other ventures, including Tek Travels DMCC, Mediology Software Pvt. Ltd., YB Software Pvt. Ltd., NB Technologies Pvt. Ltd., TBO Holidays Pte Ltd., TBO Technology Services DMCC, TBO Technology Consulting Shanghai Co. Ltd. and ZamZam E Travel Services DMCC. He also contributes as an advisor to Kisho Capital.

    Ankush Nijhawan

    Ankush Nijhawan - Co-founder and Joint Managing Director, TBO Tek
    Ankush Nijhawan – Co-founder and Joint Managing Director, TBO Tek

    Ankush Nijhawan is the co-founder and Joint Managing Director of TBO Tek alongwith Gaurav Bhatnagar.

    Ankush, a BBA graduate from Boston with a dual major in Marketing and Psychology, is making waves in the travel industry as a visionary leader at the Nijhawan Group. With a sharp focus on building a strong brand proposition and positioning the group with its core business values, he is actively exploring new avenues for growth to establish market leadership. His transformative approach has earned him recognition from CNBC as a Young Turk for his innovation in travel through his B2A travel portal and he was recently honored with the AsiaOne 40 Most Influential Asians Under 40 Award. Today, Ankush stands out as one of the most successful young leaders in the travel sector.

    Understanding that technology would play a pivotal role in shaping the industry’s future, Ankush co-founded Travel Boutique Online (TBO) in 2006. Alongside a talented team and with a forward-thinking mindset, he saw the untapped potential in the B2B travel market, establishing himself as a cornerstone of TBO’s success. His efforts have helped TBO grow into a leading player, widely respected across the industry.

    A passionate globetrotter, Ankush’s love for discovering hidden gems worldwide fuels his drive to create unique, immersive itineraries that go beyond typical travel experiences. His enthusiasm for diverse cultures and commitment to sustainable tourism inspire him to foster meaningful connections with local communities, making his approach to travel both innovative and impactful.

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    TBO Tek – Startup Story

    Ankush came from a family with a background in travel, which inspired him to start Travel Boutique in 2000, shortly after returning from his studies. Initially, it was a B2B offline travel company operating in North and some parts of East India. By 2005, with the internet making strong inroads into the travel industry, Ankush saw both a challenge and an opportunity, as companies like MakeMyTrip and Yatra were quickly adapting to online models.

    Around this time, he met Gaurav through a mutual friend. Gaurav, a computer science graduate from IIT Delhi, had been working at Microsoft in the U.S. but returned to India to pursue his entrepreneurial dreams. With his vision that travel would be one of the first sectors to move online due to minimal logistics needs, Gaurav wanted to create an online travel platform. At that point, he was running a software services company called Tekriti Software.

    Their meeting led to a powerful collaboration. Together, they transformed Travel Boutique into Travel Boutique Online (TBO) in 2006. TBO Tek Ltd. was born with a mission to simplify airline ticketing and meet the diverse needs of travel agents. The reimagined platform provided travel distribution services, streamlining the travel inventory to suit the specific demands of its clients. What started as an air-ticketing solution evolved into a global travel distribution platform, connecting travel buyers and suppliers across the world.

    Today, TBO is a leader in B2A (Business to Agents) travel services, serving clients across the Americas, the UK, Europe, Africa, the Middle East, India and the Asia Pacific. A significant milestone was achieved on May 15, 2024, when TBO was publicly listed on the NSE and BSE in India, marking a new chapter in its growth journey.

    TBO Tek – Mission and Vision

    The Vision of TBO Tek is as below:

    At TBO, they aim to lead the global travel scene with smart innovations and powerful tech. They want to be the go-to choice for travel partners everywhere by offering the largest selection of hotels—both domestic and international—and making sure all their partners have the best travel options right at their fingertips. Their vision is all about making travel more accessible, connected and simple for everyone involved.

    The Mission of TBO Tek is as below:

    1. Putting Tech First: TBO is all about driving the industry forward with tech! From custom white-label and API solutions to mobile apps, they’re here to equip travel companies—big or small—with the tools they need to succeed.
    2. Best Prices, Every Time: Getting the best deal shouldn’t be hard. By fine-tuning their hotels and packages departments, TBO ensures their partners always get competitive rates, whether booking locally or globally.
    3. Stay Connected, Anytime: With TBO Mobile, their partners can access everything they need, wherever they are. Plus, the new Announcements and Notifications page provides the latest updates in just one click.
    4. Here to Support You: Great tech is just one part of TBO’s promise. Their client servicing team is dedicated to ensuring partners always have support on hand. Whether it’s a quick question or something more in-depth, their team is only a call away!

    With their focus on constant innovation and top-tier support, TBO is always working to make travel businesses thrive.

    TBO Tek Logo
    TBO Tek Logo

    TBO Tek has launched a fresh, vibrant logo that perfectly captures the company’s youthful energy and customer-first approach. This new identity reflects their ongoing commitment to innovation and their dynamic role in revolutionizing the travel industry. Alongside the logo, TBO Tek has also unveiled a new brand tagline: “Empowering Travel, Connecting People.”

    TBO Tek – Business Model

    TBO Tek operates on an asset-light business model that leverages operating efficiencies and strong cash generation. Their core platform, tbo.com, serves as a bridge between a large and fragmented network of suppliers and buyers. The platform allows suppliers to market their inventory, set prices and connect with a global base of buyers. On the buyer’s side, tbo.com offers an integrated, multi-currency and multilingual solution that makes booking travel across various segments—such as leisure, corporate and religious travel—seamless and accessible worldwide.

    TBO Tek’s business model is underpinned by the strategic use of data as a corporate asset. This data-driven approach enhances their value proposition and drives growth through value-accretive acquisitions. Additionally, the platform fosters a network effect with interlinked flywheels, which strengthens its overall ecosystem and enhances the value for all partners involved.

    TBO Tek’s leadership team, along with its board of directors, brings a wealth of experience and expertise to the company, guiding its mission to revolutionize the travel industry. By maintaining a focus on technological innovation and operational efficiency, TBO Tek has created a highly scalable platform that continues to evolve, expanding its global footprint and strengthening its position as a leader in the travel technology space.

    TBO Tek – Revenue Model

    TBO Tek operates with two primary revenue models: the B2B Rate Model and the Commission Model, both of which play a key role in its robust financial structure.

    B2B Rate Model

    Under this model, TBO Tek receives inventory from suppliers (such as hotels, airlines, car rentals and cruises) at special B2B rates. TBO Tek then applies a mark-up on these rates and passes the adjusted price to buyers (travel agencies, tour operators, etc.). This model allows TBO Tek to earn a profit on the difference between the supplier’s rate and the price charged to buyers, creating a steady stream of revenue from the mark-up applied to each transaction.

    Commission Model

    In the commission model, suppliers set the price at which they wish to sell their products to end travelers. TBO Tek receives a commission on each transaction made through its platform. A portion of this commission is retained by TBO Tek, while the remaining portion is shared with the buyer. This model ensures that TBO Tek benefits from each successful booking, fostering strong partnerships with suppliers and maintaining a steady flow of income.

    Together, these revenue models enable TBO Tek to generate consistent and scalable income while simplifying the business of travel for both suppliers and buyers. The combination of competitive B2B pricing and commission-based earnings ensures the company’s platform remains attractive to a wide range of travel industry partners across the globe.

    TBO Tek – Challenges Faced

    TBO Tek’s revenue model is sensitive to several external factors, including global economic shifts, security and environmental concerns and unforeseen events like epidemics or natural disasters, all of which can significantly affect the travel and tourism industry. Their revenue is heavily reliant on hotel bookings and air ticketing, meaning any disruption in these sectors can directly impact their earnings.

    A major challenge lies in the company’s dependency on a limited range of suppliers. Changes in supplier dynamics, such as cost reduction pressures or the inability to establish new supplier relationships, could lead to disruptions in the inventory they offer. This can result in fluctuations in both revenue and profit margins. Additionally, delays in receiving payments or recoverable amounts from airlines could have a negative effect on their cash flow.

    Furthermore, as suppliers seek more control over distribution channels—particularly by moving toward direct platforms to reduce intermediaries—TBO Tek’s ability to renegotiate contracts with suppliers may become increasingly difficult. This scenario could affect the company’s competitiveness and profitability.

    The duopoly in the Indian aviation industry, where two dominant players control much of the market, also presents a significant challenge. The limited competition in this sector may influence pricing, availability and terms, creating additional business pressures for TBO Tek in the region.

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    TBO Tek – Funding and Investors

    TBO has secured a total of $61 million in funding across 3 rounds, with its first round taking place on March 28, 2012 and last funding round on September 1st 2018.

    Date of funding Funding Amount Round Name Investors
    Sep 01, 2018 $50M PE Affirma Capital
    Feb 26, 2015 $2.34M Seed Naspers
    Mar 28, 2012 $8.66M Seed Naspers

    TBO Tek – Mergers and Acquisitions

    TBO Tek has strategically expanded its global footprint through acquisitions like:

    Acquired Company Date
    BookaBed 2023
    Jumboline 2023
    Island Hopper 2019
    Gemini Tours and Travels 2022

    TBO Tek – Growth

    Travel Boutique Online (TBO Tek) has displayed impressive financial growth and operational expansion in recent quarters, underscoring its strong position in the travel industry. Here are some key highlights of their performance:

    Q1 FY25 Financial Performance

    • Net Profit Growth: TBO Tek’s consolidated net profit surged by 29%, reaching INR 60.91 crore.
    • Revenue Growth: Operating revenue increased by 21%, amounting to INR 418.5 crore.

    FY24 Financials

    TBO Tek Financials 2023 2024
    Operating Revenue INR 1065 crore INR 1393 crore
    Total Expenses INR 914 crore INR 1181 crore
    Profit/Loss INR 148 crore INR 201 crore
    TBO Tek Financials FY24

    Revenue Growth Over the Last Three Years

    TBO Tek has experienced substantial growth in revenue, rising from INR 141.80 crore in FY21 to INR 1,064.58 crore in FY23, reflecting their expansion and strong market position.

    Customer and Seller Expansion

    • Buyers: The number of buyers using TBO Tek’s platform grew from 23,532 in FY21 to 41,861 in FY24.
    • Sellers: The platform’s seller base expanded dramatically, increasing from 45,025 in FY21 to 2,13,633 in FY24. This significant growth indicates the platform’s increasing popularity and trust among both buyers and sellers in the global travel industry.

    Booking Rate

    The booking rate on TBO Tek’s platform also showed a healthy increase, rising from 4.87% in FY21 to 7.29% in FY24, a sign of growing customer engagement and successful conversions.

    Gross Transaction Value (GTV)

    GTV Growth: TBO Tek’s GTV grew by 14% year-on-year, reaching INR 7,940 crore in Q1 FY25, highlighting the platform’s expanding reach and increasing transaction volume.

    TBO Tek – IPO

    The much-anticipated IPO opened for bidding from May 8 to May 10, 2024, with a price band set between INR 875 and INR 920 per share. Investors could participate with a minimum lot size of 16 equity shares. The total issue size was INR 1,550.81 crore, and the allotment of shares was finalized on May 13, 2024. Following its successful subscription, the shares made their debut on the BSE and NSE on May 15, 2024, marking another milestone in the company’s journey.

    TBO Tek – Advertisements and Social Media Campaigns

    Grand prize winner Sarah Raouf walks away with BMW X2
    Grand prize winner Sarah Raouf walks away with BMW X2

    In an exciting turn of events, TBO Holidays has revealed the grand prize winner of its highly successful ‘Book n Win Bonanza’ promotional campaign, which ran for 120 days across the MEA region. The campaign culminated in a thrilling raffle draw, where Sarah Raouf from Family Tours, Egypt was declared the lucky winner of the grand prize – a brand new BMW X2!

    Campaign Highlights

    • Grand Prize: Sarah Raouf, a travel agent from Family Tours in Egypt, took home the BMW X2 as the grand prize winner of the campaign.
    • Total Winners: Over 1,500 winners were chosen throughout the campaign, with 6,000 rewards distributed in total.
    • Campaign Duration: The 120-day campaign started in April and ran successfully, engaging over 1,200 travel agents across the region.

    Rewards and Prizes

    The ‘Book n Win Bonanza’ campaign was a huge success, offering a wide variety of prizes to lucky participants:

    • TBO+ Reward Points: 1,200 travel agents won TBO+ Reward Points, which could be redeemed for any products of their choice on the TBO.com platform.
    • Cruise Packages: Two fortunate agents received cruise packages courtesy of MSC Cruises.
    • Spin the Wheel: Participants also had the chance to spin the wheel on the TBO Holidays’ online platform, winning exciting prizes like:
      • iPhones, iPads, iMacs
      • Large screen televisions
      • Shopping vouchers
      • Cruise packages
      • 5-star hotel and resort vouchers for exotic locations like Thailand, Malaysia and UAE

    Campaign Success and Engagement

    The ‘Book n Win Bonanza’ was designed to reward TBO Holidays’ loyal travel agent partners while also promoting engagement with the platform. With over 1,500 winners, the campaign successfully created buzz and excitement within the travel agent community, strengthening TBO Holidays’ relationship with its partners across the region.

    This marketing initiative highlighted TBO Holidays’ commitment to supporting travel agents with valuable incentives, showcasing their brand as a key player in the travel distribution space.

    TBO Tek – Awards and Achievements

    • World’s Leading B2B Travel Provider: Awarded to TBO Holidays at the 26th Annual World Travel Awards in 2019, a testament to TBO’s global reputation.
    • Best Travel Technology Provider – B2B Category: Received at the Travel and Tourism Excellence Awards by FICCI, underscoring TBO’s innovation in travel technology.
    • Best Online Travel Agency: Recognized again by FICCI, reflecting TBO’s excellence in B2B travel agency support.
    • Best Online Travel Booking Site: TBO won this at SATTE 2019, highlighting its seamless booking experience.
    • Hotel Bedbank – Best Website: Awarded to TBO Holidays at the TravelMole Asia Pacific Awards in 2019 for its user-friendly and efficient booking platform.
    • Most Valuable Partner Dubai: Presented by FCM Travel Solutions UAE in 2019, affirming TBO’s valuable partnerships in the MEA region.
    • Best Online B2B Travel Portal: East India 2016 and South India 2016 by India Travel Awards,
    • The World’s Greatest Brands 2015-16 and Best Innovative Technology Product – North India 2015

    TBO Tek – Competitors

    TBO Tek competes with a range of other travel technology companies, all striving to dominate the B2B travel booking and distribution space through innovative tech solutions and expansive supplier networks such as:

    • TravClan
    • InterGlobe Technology Quotient
    • Vakrangee
    • Indian Railway Catering & Tourism Corporation Ltd
    • BLS International Services Ltd
    • Thomas Cook (India) Ltd
    • Easy Trip Planners Ltd
    • LE Travenues Technology Ltd.

    TBO Tek – Future Plans

    TBO Tek is driving its global expansion by strategically establishing and acquiring subsidiaries, such as TBO Jumbonline Canarias in the Canary Islands, to capitalize on the region’s tourism growth. This new subsidiary, operated by the recently acquired Jumboline Accommodations & Services for INR 219.6 Cr, aims to leverage local expertise and broaden TBO’s reach in the European market.

    The company’s international growth plan focuses on acquiring companies with strong distribution and supply networks to build a robust travel ecosystem. Previous acquisitions, such as Island Hopper in the Indian Ocean Islands and Gemini Tours and Travels in the Maldives, showcase TBO’s commitment to widening its global footprint. With the expected 11.1% CAGR growth in the outbound travel market through 2027, TBO Tek is positioned to capture a significant share by investing in user acquisition, expanding its buyer and supplier base and conducting targeted marketing and promotional activities. A portion of IPO proceeds will also be allocated towards further strategic acquisitions to solidify TBO’s presence worldwide.

    FAQs

    What is TBO Tek?

    TBO Tek is a technology-driven travel platform that offers a range of services for travel agents, tour operators, and suppliers. It provides a comprehensive suite of tools to manage travel bookings, such as hotel reservations, flights, and holiday packages.

    When was TBO Tek founded?

    TBO Tek was founded on November 6, 2006.

    Who are the founders of TBO Tek?

    Gaurav Bhatnagar and Ankush Nijhawan are the co-founders and join managing directors of TBO Tek.

  • Ola Electric: Revolutionizing Mobility with Clean Energy Solutions

    Ola Electric, India’s largest mobility platform and one of the top ride-hailing companies globally, is leveraging its strong foundation in urban mobility to champion sustainable transportation. In this StartupTalky article, we will explore the journey of Ola Electric from its inception to how it became a key player in India’s EV revolution and growing innovation with the creation of the Future Factory, the world’s largest and most sustainable two-wheeler manufacturing facility.

    The below article portrays Ola Electric’s success story, its history, growth, funding, business model, hardships, challenges, competitors, and more.

    Ola Electric – Company Highlights

    Name Ola Electric Mobility Private Limited
    Headquarters Bangalore, Karnataka
    Sector EV
    Founder Bhavish Aggarwal
    Founded 2017
    Valuation $7 billion (August 2024)
    Website Olaelectric.com

    Ola Electric – About
    Ola Electric – Industry
    Ola Electric – Founders and Team
    Ola Electric – Startup Story
    Ola Electric – Mission and Vision
    Ola Electric – Name, Tagline and Logo
    Ola Electric – Business Model
    Ola Electric – Revenue Model
    Ola Electric – Challenges Faced
    Ola Electric – Funding and Investors
    Ola Electric – Investments
    Ola Electric – Mergers and Acquisitions
    Ola Electric – Growth
    Ola Electric – Advertisements and Social Media Campaigns
    Ola Electric – Awards and Achievements
    Ola Electric – Competitors
    Ola Electric – Future Plans

    Ola Electric – About

    Ola Electric is driving India’s emergence as the global hub for the electric vehicle (EV) revolution. As a pioneering EV company, they are working towards a brighter, safer, and greener future by building an ecosystem of products, services, and cutting-edge technology that will shape the next frontier of innovation. Their focus is deeply rooted in research and development, with expertise in design, engineering, and manufacturing that is dedicated to creating high-quality and accessible EVs.

    From concept to production, Ola Electric is committed to owning and developing all core EV technologies and components. This includes everything from battery cells to electric vehicles, making them central to the future of sustainable transportation.

    Ola Electric’s R&D efforts extend beyond India, with facilities in the UK and the US, including their Battery Innovation Centre, where they are developing cutting-edge cell and battery technologies that will lead the industry into the future.

    Ola Electric – Industry

    India is setting an ambitious goal to boost the share of electric vehicle (EV) sales by 2030, targeting 30% for private cars, 70% for commercial vehicles, 40% for buses, and a massive 80% for two-wheelers and three-wheelers. This translates into a bold objective of having 80 million EVs on the roads by the end of the decade, all driven by a push for complete domestic production under the ‘Make in India’ initiative.

    Globally, the electric vehicle market was valued at $255.54 billion in 2023 and is expected to skyrocket to approximately $2,108.80 billion by 2033, growing at a strong compound annual growth rate (CAGR) of 23.42% from 2024 to 2033.

    India Electric Vehicle Market Size, 2022 to 2032
    India Electric Vehicle Market Size, 2022 to 2032

    In India, EV sales have been on the rise. By May 2024, EV sales surged by 20.88%, reaching 1.39 million units. In 2023, EV sales in India saw an even bigger leap, growing by 49.25% to 1.52 million units. Though still in its early stages, the Indian EV market is gaining significant momentum. According to Fortune Business Insights, the Indian EV market is projected to expand from $3.21 billion in 2022 to a whopping $113.99 billion by 2029, growing at a rapid CAGR of 66.52%.

    This global shift toward EVs is creating exciting new opportunities for automotive suppliers, particularly in the Indian EV battery market, which is forecasted to grow from $6.77 billion in 2023 to $27.70 billion by 2028. This highlights the massive potential of India’s EV sector as it continues to evolve and expand.

    Ola Electric – Founders and Team

    Bhavish Aggarwal is the Co-founder and CEO of Ola Electric.

    Bhavish Aggarwal - Co-founder and CEO, Ola Electric
    Bhavish Aggarwal – Co-founder and CEO, Ola Electric

    Bhavish Aggarwal, born on August 28, 1985, is a prominent Indian entrepreneur known for his remarkable contributions to the tech and mobility sectors. Aggarwal hails from Ludhiana, Punjab, where he was born and raised. He completed his bachelor’s degree in computer engineering from the Indian Institute of Technology, Bombay, in 2008. Early in his career, he worked with Microsoft Research India as a research intern, later becoming an assistant researcher. However, it wasn’t long before he ventured into entrepreneurship. During his time at Microsoft, he filed two patents and published three papers in international journals, demonstrating his strong technical expertise.

    In 2010, he co-founded his first major company, Ola Consumers (ANI Technologies Pvt.), which quickly emerged as a strong competitor to Uber in India. What started as a ride-hailing app soon expanded into other sectors, including online payments and food delivery, establishing Ola as a versatile and powerful player in India’s tech ecosystem.

    Aggarwal also founded Ola Electric, a venture dedicated to revolutionizing the electric vehicle industry in India. Most recently, he launched OlaKrutrim, a groundbreaking artificial intelligence (AI) company, which became India’s first AI unicorn in 2024, reaching a valuation of $1 billion.

    Recognized globally for his influence, Aggarwal was named in Time magazine’s list of the 100 Most Influential People in 2018. With a net worth of $2.3 billion, he stands as one of the youngest self-made billionaires in the world.

    Bhavish Aggarwal’s journey from tech researcher to founder of multiple successful ventures showcases his vision for the future of technology and mobility, both in India and on the global stage.

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    Ola Electric – Startup Story

    Ola initially started as Olatrip.com, a small website venture offering weekend trip packages. Founded by two IIT Mumbai graduates, Bhavish Aggarwal, and Ankit Bhati, it began as a startup aimed at selling online tour packages. After working at Microsoft for nearly two years, Bhavish shifted his focus to entrepreneurship. However, a frustrating experience with a car rental service led Aggarwal to encounter a significant gap in the transportation industry, which drove him to innovate and disrupt the market. Henceforth, the duo began to rethink the car rental system entirely, sparking the creation of Ola Consumers (formerly Ola Cabs). What began as a solution to improve car rentals soon transformed into a ride-hailing giant, now simply known as Ola.

    As the company grew, it expanded beyond ride-hailing, eventually venturing into the electric vehicle space.

    In a press conference in Mumbai in late July, Bhavish reflected on the EV journey, saying, “Three years ago, when we launched our product, I believe that’s when the EV story began.”

    These words encapsulate the meteoric rise of Ola Electric, which quickly became a key player in India’s electric vehicle revolution. At a time when India’s green infrastructure was still developing, Bhavish’s ambitious vision to create the world’s leading “urban mobility EV company” drove Ola Electric’s rapid growth. His bold vision, coupled with Ola Electric’s innovative strides, has placed both the company and Aggarwal at the forefront of India’s EV transformation, powering the country’s shift toward a sustainable, electric-powered future.

    Ola Electric – Mission and Vision

    Ola Electric’s mission is to significantly reduce emissions and lower fuel dependency by transitioning Ola’s cabs and other vehicles to electric, promoting mass electric mobility for a cleaner and greener future.

    While Ola Electric envisions:

    • Bringing together brilliant young minds to drive innovation
    • Shaping the future of electric vehicles on a global scale
    • Excelling in technology and engineering
    • Creating industry-leading products that set new benchmarks for electric mobility

    Ola Electric Logo
    Ola Electric Logo

    Ola’s tagline “All-electric Future. From India. For the world.”, perfectly captures the company’s mission of leading the electric vehicle revolution from India with a global perspective. 

    The word “Ola”, symbolizes the ease and friendliness that the company aims to bring to its customers. Ola strives to make hailing a cab and using their services effortless and user-friendly. This reflects their commitment to providing seamless, customer-centric experiences while driving the future of electric mobility.

    Ola Electric – Business Model

    Ola Electric’s business model operates on three core platforms:

    1. R&D and Technology: Ola Electric takes charge of designing and developing its own electric vehicle (EV) technologies and components. This includes key areas like software, electronics, motors, batteries, and advanced manufacturing techniques. Their focus on in-house innovation allows them to maintain control over the quality and functionality of their products.
    2. Manufacturing and Supply Chain: Ola Electric boasts a flexible assembly line, supported by a shared supply chain and a vertically integrated manufacturing ecosystem. This integration streamlines their production process, ensuring efficiency and scalability, from the components to the final product.
    3. D2C Omni-Channel Distribution: Ola Electric embraces a direct-to-consumer (D2C) approach for selling and servicing its EVs. This includes an online shopping platform, a robust charging network, and company-owned sales and service centers. By handling distribution and services directly, Ola Electric ensures a seamless and consistent customer experience.

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    Ola Electric – Revenue Model

    Ola Electric generates revenue from the following streams:

    • Selling Scooters: The main revenue driver for Ola Electric is the sale of its electric scooters, including popular models like the S1 Pro, S1 Airand S1 X+.
    • Selling Accessories: Ola Electric also generates income through the sale of accessories such as spare parts, chargers, and other related products that complement its EV offerings.
    • Services: Ola Electric provides a range of services, including maintenance, after-sales support, and other customer services to ensure the long-term satisfaction of its users.

    Ola Electric – Challenges Faced

    Ola Electric, the electric vehicle (EV) company headquartered in Bengaluru, has experienced several operational challenges that have impacted its business. Here’s a closer look at these issues:

    Ola Electric Layoff

    On November 21, 2024, a source revealed that Ola Electric plans to lay off about 500 employees as part of a restructuring effort to improve the company’s profits.

    This comes a few months after its sister company, Ola Consumer (formerly Ola Cabs), also underwent restructuring in April, affecting 10% of its staff. During that time, CEO Hemant Bakshi stepped down after less than a year, and CFO Karthik Gupta also left, impacting around 200 employees.

    Service Issues

    • Enhancing Customer Trust Amid Increased Complaints: With rising complaints about software glitches and hardware issues, Ola Electric faces the challenge of restoring customer confidence. The Hyperservice campaign and quick-service guarantee are aimed at improving service reliability and customer experience. Aggarwal’s commitment to doubling service centers to 1,000 by December presents a logistical challenge. Expanding infrastructure while ensuring consistent service quality will require efficient resource management, staffing, and training. Introducing a one-day quick-service guarantee, with backup Ola S1 scooters for delays, requires robust operations management. Ola Electric must ensure availability and streamlined service processes to meet this promise consistently.
    • Minimizing Impact of Service Challenges on Sales: The decline in sales, linked to unresolved service issues, places pressure on Ola Electric to stabilize sales by improving its service reputation. The effectiveness of the Hyperservice campaign and prompt delivery of promises will be critical in reversing this trend. Offering cab coupons through Ola Care+ adds value for customers, but ensuring adequate customer retention and satisfaction may require further enhancements to Ola Care+ plans and personalized support.

    Market Share Decline

    Ola Electric’s market dominance has seen a downturn, with its market share dropping from 40.4% to 32.4% in recent months. This dip indicates increased competition and possibly waning customer confidence in the company’s products or services.

    Market Competition

    Ola Electric, once dominating India’s electric scooter market, saw a significant drop in sales in September, marking its lowest monthly sales figure at 23,965 units. This decline led to a market share dip of 27%, a sharp fall from its commanding 50% share in April. As Ola Electric’s sales slumped, competitors like TVS Motor and Bajaj Auto capitalized, gaining ground with the introduction of newer models and stronger service networks.

    This shift suggests increasing competition and growing consumer expectations for product quality and after-sales service, areas where Ola may need to focus to regain its footing in the market. The decline also raises questions about its long-term dominance, as rivals continue to innovate and expand.

    Technological Advancements

    Ola Electric, once a fierce competitor to Uber in the ridesharing market, has now shifted its strategy towards tackling a new giant—Tesla. As Tesla eyes the Indian EV market, Ola Electric is aggressively aiming to undercut Tesla by offering more affordable electric vehicles.

    Their contribution to India’s mobility landscape is primarily through two-wheeled mopeds, which have made Ola Electric the country’s largest manufacturer of electric scooters. Expanding beyond scooters, the company has intensified its focus on electrification. It is actively developing its lithium-ion battery technology and building Asia’s largest battery R&D facility. This cutting-edge center will drive Ola’s ambitions to lead the EV revolution in India by advancing battery tech and maintaining a competitive edge in the global market.

    By investing heavily in these areas, Ola Electric is positioning itself to dominate India’s EV market and compete internationally, with innovations that could reshape the future of electric mobility.

    Ola Electric – Funding and Investors

    Ola Electric has raised a total of $1.7B in funding over 15 rounds. Ola Electric has been making headlines with a series of substantial investments:

    Date Name Investors Money Raised
    June 11, 2024 Debt Financing Alteria Capital INR 1 billion
    April 1, 2024 Debt Financing EvolutionX Debt Capital INR 4.1 billion
    Oct 26, 2023 Debt Financing SBI $240 million
    Oct 7, 2023 Series E — INR 11.9 billion
    Sept 7, 2023 Private Equity Round Tamasek Holdings $140 million
    May 22, 2023 Private Equity Round — INR 25 billion
    Jan 24, 2022 Series D — INR 15 billion
    Dec 8, 2021 Series C Tamasek Holdings $53 million
    Sept 30,2021 Series C Alpha Wave Global, Softbank $200 million
    July 12, 2021 Debt Financing Bank of Baroda INR 7.4 billion
    March 12,2020 Series B Pawan Munjal family Trust $1.0 million
    July 02, 2019 Series B Pawan Munjal family Trust,Softbank, Hyundai Motor Company,Kia $267.0 million
    May 06, 2019 Series A RNT AssociatesAngel Investor: Ratan N. Tata, Gaurav Deepak $2.1 million
    Feb 26, 2019 Series A Tiger Global Management, RNT Associates, Sarin Family Trust, India Internet Fund, Z47.Angel Investor: Gaurav Deepak $57.0 million

    Ola Electric – Investments

    Ola Electric has invested in StoreDot, details of which are as below:

    Name Total Equity Current Stage
    StoreDot $226 million Series D

    Ola Electric – Mergers and Acquisitions

    Ola Electric made a single acquisition in 2020.

    Acquisition Date Price
    Etergo May 27, 2020 $23.1 million

    Ola Electric – Growth

    Ola Electric has experienced significant growth in revenue, deliveries, and market share in the Indian electric vehicle market, specifically in two-wheeled EVs:

    • Revenue Growth: In Q1 2024, Ola Electric’s revenue rose by 32.3%, reaching INR 1,644 crore, up from INR 1,243 crore in Q1 2023.
    • Deliveries: The company delivered over 1.2 lakh electric scooters in Q1 2024, a substantial increase from 70,575 units in the same period the previous year.
    • Market Share: As of September 2023, Ola Electric captured approximately 47% of India’s two-wheeler EV market, marking it as a dominant player.
    • IPO Success: Ola Electric’s listing on the National Stock Exchange (NSE) on August 9, 2024, resulted in a stock surge to ₹126.21 by August 23, a 66% increase.
    Ola Electric Financials FY23 FY24
    Operating Revenue INR 2631 crore INR 5010 crore
    Total Expenses INR 3883 crore INR 6277 crore
    Cost of Material Consumed INR 2505 crore INR 4391 crore
    Employee Benefit Expenses INR 427 crore INR 439 crore
    Total Loss INR -1472 crore INR -1584 crore
    Ola Electric Financials
    Ola Electric Financials

    Ola Electric’s revenue grew by 90% from FY23 to FY24, going from INR 2631 crore to INR 5010 crore. However, its total expenses also went up by about 62%, from INR 3883 crore to INR 6277 crore. The cost of materials increased by 75%, and employee expenses rose slightly by 3%. Despite the revenue growth, the company’s losses grew by 8%, from INR 1472 crore in FY23 to INR 1584 crore in FY24.

    Looking ahead, Ola Electric anticipates that electric two-wheeler adoption will reach 41-56% by FY28. Its vertically integrated model spans R&D, technology development, manufacturing, sales, service, and charging infrastructure, with plans to incorporate its cell technology by Q1 FY26.

    While Ola Electric achieved strong operational growth, challenges persist. Its net loss widened 8% in 2024. Nevertheless, Goldman Sachs forecasts that Ola Electric’s revenue will expand at 2.5 times the rate of its peers, with volume growth expected to outpace competitors fivefold over the next three years, setting the stage for potential EBITDA breakeven soon.

    Ola Electric – Advertisements and Social Media Campaigns

    Ola’s marketing strategy has strategically leveraged its brand recognition and environmental messaging to boost its presence in the electric vehicle market. Here’s an overview of Ola’s promotional approach and targeted advertising efforts:

    1. Eco-Friendly Brand Messaging: Ola Electric has centered its marketing around the eco-conscious benefits of electric scooters, emphasizing reduced emissions and cost-effectiveness. This approach appeals to the growing environmental awareness among consumers, especially younger audiences who value sustainable choices.
    2. Targeted Advertising Campaigns: To reach potential customers, Ola Electric has launched focused ad campaigns that highlight the financial and ecological advantages of EVs. By showcasing lower operating costs, emission reductions, and ease of use, the campaigns effectively communicate the benefits of transitioning to electric scooters.
    3. Influencer and Celebrity Partnerships: Collaborations with influencers and celebrities have helped Ola amplify its brand message and reach a wider audience. These endorsements, targeted at a youth-centric market, enhance the brand’s appeal and establish a relatable connection with potential customers.
    4. Youth-Centric Advertising Campaigns: Ola’s 2017 campaign, which targeted young, ethically-minded consumers, emphasized the importance of tackling urban challenges like traffic congestion and pollution. This campaign resonated with socially aware young people who are interested in creating positive change in their communities.
    5. World Environment Day Campaign #FarakPadtaHai: Launched on June 5, 2017, this campaign encouraged nationwide awareness of ride-sharing as a means of reducing pollution and traffic. Through a TV commercial and other offline activities, Ola fostered a sense of responsibility towards the environment, further solidifying its eco-friendly brand positioning.
    6. The Shared Pass Initiative: Ola introduced a shared pass at an affordable rate of ₹1 to promote shared travel, overcoming initial reluctance among users about ride-sharing with strangers. This campaign successfully increased shared ridership, reflecting Ola’s ability to engage users and drive the adoption of shared transportation solutions.

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    Ola Electric – Awards and Achievements

    Ola Electric’s achievements and recognition reflect its innovation and leadership in the electric vehicle industry.

    1. IHS Markit Innovation Award (CES): Ola Electric received this award at CES for its groundbreaking design, performance, and smart features, setting new standards for electric scooters in India and globally.
    2. German Design Award: Ola Electric was recognized for the sleek and innovative design of its scooters, reinforcing its appeal in both aesthetics and functionality.
    3. Advanced Chemistry Cell (ACC) Battery Storage Capacity Allocation: Awarded in March 2022 under India’s Production Linked Incentive (PLI) scheme, Ola Electric received a 20GWh capacity allocation for ACC battery storage, entitling it to five years of incentives to advance EV battery development.
    4. Electric Scooter of the Year – Car&Bike Awards 2023: The Ola S1 scooter won this category, prevailing over competitors like the TVS iQube S, Vida V1 Pro, and Okinawa Okhi-90 for its excellence in performance and design.
    5. PLI-Automotive Certificate from ICAT: In March 2024, the International Centre for Automotive Technology (ICAT) awarded Ola Electric the PLI-Automotive Certificate, recognizing its pioneering contributions to electric mobility under the PLI scheme.
    6. WomenIN Leadership Award at UK-India Awards 2024: Ola Electric was honored at the UK-India Awards for its commitment to diversity and leadership in the EV sector, emphasizing its role in promoting inclusivity within the industry.

    These awards highlight Ola Electric’s dedication to innovation, design excellence, and sustainable mobility, positioning the company as a leader in the electric vehicle industry.

    Ola Electric – Competitors

    Ola Electric faces competition from several prominent players in India’s rapidly growing electric vehicle (EV) sector, particularly in the two-wheeler segment:

    Ola Electric – Future Plans

    Ola Electric has positioned itself at the forefront of India’s electric vehicle (EV) transformation, with ambitions that extend beyond two-wheelers to broader electrification and energy independence. By leveraging new funding and strategic partnerships, Ola is scaling its operations and product lineup:

    Recent Funding and Expansion

    • October 2023 Funding: Ola Electric secured INR 3,200 crores (~USD 385 million) from investors like Temasek and project debt from the State Bank of India. These funds will drive expansion into new product lines and support the setup of India’s first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
    • Gigafactory and Lithium-Ion Cell Manufacturing: As the first Indian EV company selected for the government’s Advanced Chemistry Cell (ACC) Production-Linked Incentive (PLI) scheme, Ola is building a pioneering lithium-ion battery cell manufacturing unit, with an eventual target capacity of 100 GWh, significantly boosting India’s local EV supply chain.

    Product Portfolio Expansion

    • Scooter Range: Ola’s recent Gen-2 platform has allowed for an expanded lineup of electric scooters, including the S1 Pro, S1 Air, S1X+, S1X (3kWh)and S1X (2kWh), covering a broad range of price points from INR 89,999 to INR 1,47,499. This lineup enhances accessibility for various consumer segments.
    • Upcoming Electric Motorcycles: Ola has announced four models—Diamondhead, Adventure, Roadster, and Cruiser—designed to meet different consumer preferences and expected to launch by the end of 2024. These motorcycles reflect Ola’s commitment to style and advanced engineering in the EV segment.

    Vision for India’s EV Ecosystem

    Ola Electric aims to lead India toward energy self-sufficiency by strengthening domestic manufacturing of critical EV components and creating a robust battery supply chain. Through its diversified portfolio and pioneering facilities, Ola Electric is setting a high standard for innovation and scalability in India’s EV market, positioning the country as a central hub for future-ready technology and sustainable energy solutions.

    FAQs

    Who is the founder of Ola Electric?

    Bhavish Aggarwal is the co-founder and CEO of Ola Electric.

    What does Ola Electric do?

    Ola Electric makes electric scooters and works on other electric vehicle technologies to reduce pollution and promote clean energy.

    When was Ola Electric founded?

    Headquartered in Bengaluru, Ola Electric was founded in 2017.

    Who are the competitors of Ola Electric?

    The main competitors of Ola Electric include Ather Energy, Hero Electric, Bounce Infinity, Ampere Vehicles, Greaves Electric Mobility, and more.