In today’s fast-paced AI/ML landscape, early stage investors meticulously follow all relevant developments that can redefine business models and improve efficiencies. The use of AI/ML for business excellence has always been a hot topic. But the GenAI boom in the past two years has carved the path for startups looking to use this technology genre.

Although the overall funding scenario remains subdued, venture capital (VC) firms are doubling down on AI investments all over the globe. A Goldman Sachs report published last year forecast that businesses may invest around $200 Bn globally by 2025 to accrue the full benefits of GenAI, while private funding at a global level may rise to $158.4 Bn by that time.

According to a NASSCOM-BCG report, India’s AI market is estimated to reach $17 Bn by 2027, growing at an annualised rate of 25-35% between 2024 and 2027. Most of this growth will be driven by the rise in enterprise tech spending on AI tools and talent and an increase in AI investments. 

In addition, there shall be emphasis on AI-driven consumer services. Ecommerce startups using AI to personalise shopping and automate customer support have primarily gained here, raising $561 Mn in 102 deals during the first six months of 2024, according to a report by Inc42.This trend is in line with widespread online shopping and the need for smart tech to boost businesses.

To explore things further, Inc42 and Oracle recently organised a virtual panel discussion on VCs Bet Big On AI To Drive The Next Wave Of Startup Success. It was part of an ongoing series titled Boardroom: Powering Data With AI.

Moderated by Ankur Dubey, principal at Capria Ventures, the session brought together leading investors and partners from the industry, including:

• Arjun Rao, partner at Speciale Invest
• ⁠Girish Shivani, executive director & fund manager, YourNest Venture Capital
• Rajiv Mehta, MD & general partner, Athera Venture Partners
• ⁠Vikram Ramasubramanian, partner at Inflection Point Ventures
• Anagh Prasad, investor at Accel
• Sahil Makkar, VP at IndiaQuotient
• Saravanan Palanivel, VP (cloud engineering), Oracle India

How Startups Can Corner Success In An AI-First Ecosystem

The rapid advance of AI-GenAI applications and cloud-based AI platforms, software and services are driving AI implementations at scale. The all-new tech ecosystem has also transformed communications, not just between humans and machines (although chatbots/AI agents are becoming conversational wizards day by day) but between machine and machine to optimise data flow and automate routine-to-complex tasks.

AI is accelerating time-to-market for products and services, reducing costs and improving end-user experience to bring a better return on investment (RoI). 

“In my opinion, we have to reimagine these experiences [of product building] from the ground up,” said Arjun Rao of Speciale Invest. 

“Startups are often asked whether they are building AI-native products as opposed to embedded AI. In the first case, they build products from scratch with AI at the core. It requires imagining interfaces and making things much more seamless. Then you can possibly deliver 10x value. These are specialised developments instead of embedding, which is adding GenAI layers on top of existing workflows

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,” he added.

Rajiv Mehta of Athera Venture Partners (formerly Inventus India) emphasised the importance of strategic focus and agile monitoring.

“Given how fast [technological] disruptions are happening, you should be acutely aware of what the market demands and must focus on those priorities. I would say speed is critical here. The way things are moving, you must try and stay ahead of the curve.” 

Another critical factor is competitive vigilance.

“Make sure you are watching what your competitors are doing. Sift through the data and catch the signal, discarding the noises. There is always a fine line between what you can build and what needs to be built,” he said. 

Speaking about target investment areas and growth opportunities, Anagh Prasad of Accel said, “We have made substantial investments in enterprise automation. We are now pursuing verticalised assistance for services outsourced to India.”

The panel also explored opportunities around quantum computing and algorithms, AI DevOps and autonomous databases, as these innovations are set to shape the future of startups and legacy players alike.

The post VCs Bet Big On AI To Drive The Next Wave Of Startup Success appeared first on Inc42 Media.

Artificial intelligence (AI) has driven tech innovations for decades. Its India journey started in the early 2000s when algorithms were incorporated into computing hardware. By the 2010s, AI usage was more prevalent due to the rise of big data analytics and AR-VR applications.

When OpenAI launched its GenAI (generative AI) application, ChatGPT, in 2022, it was a giant leap towards human-like creativity, conversational power and deep analysis of data and industry trends. The markets are now flooded with GenAI tools, offering various enterprise-level solutions to maximise efficiency and optimise costs.

Industry experts say this is merely the beginning. The GenAI boom will transform all businesses by improving processes, enhancing customer experiences and redefining decision-making. According to a recent McKinsey Global Survey on AI, 65% of respondents said their organisations regularly use GenAI, nearly double the percentage from the previous survey conducted less than a year ago.

While GenAI can drive business growth, one has to deal with multiple risks like data breaches, deep fakes and biases. So, enterprises must craft a well-balanced AI strategy to reduce costs, create value and increase trust in organisations by mitigating those risks.

To explore it further, Inc42 and Oracle hosted the final edition of their two-part series titled Boardroom: Powering Data With AI. Held in Delhi on August 22, the roundtable brought together 10 tech leaders from diverse sectors (travel tech, healthtech, manufacturing, electric vehicles and more) and deep-dived into the theme – Unlocking Data & AI Potential: Charting a Path to Innovation and Growth.

Moderated by Sameer Dhanrajani, CEO at AIQRATE & 3AI, the session was attended by: 

• Sushan Rungta, CTO at Absolute
• Vivek Agarwal, cofounder & CTO, Square Yards
• Diwas Sharma, principal engineer, Fashinza
• Dr Shakti Goel, chief architect & data scientist, Yatra Online
• Shiva Singh, director (engineering) at Moglix
• Sanjeev Singh, head of technology & data, Gensol EV
• Pushkar Aditya, SVP (technology), Clovia
• Gaurav Bagga, SVP and head of engineering & product, Pristyn Care
• Saravanan Palanivel, VP (cloud engineering), Oracle India

A Deep Dive Into Industry Use Cases

Dhanrajani started the discussion by emphasising that AI-GenAI was not a sudden phenomenon but a long continuum. He referred to the evolving debate over human versus AI, questioning this new-age technology’s capabilities and potential.

“With machines growing smarter and stronger, a time will inevitably come when human creativity and ingenuity have to confront a stark reality. We have long anticipated the possibility of machines surpassing human abilities, but will that happen?” he pondered.

As the conversation unfolded, Dhanrajani delved into the widespread adoption and application of AI-GenAI across industries, assessing how deeply it would be embedded into modern businesses.

Shedding more light on industry use cases, Rungta of Absolute detailed how AI transformed the platform’s on-ground advisory services for farmers, resulting in speedy reach and significant cost-cutting.

“Earlier, we spent a lot of time and money reaching the farmers in person and helping them use our agronomic solutions. But now we integrate satellite images and weather data to offer AI-powered insights, which are accurate and time-critical,” he explained.

When it comes to agritech, time-sensitive information is critical, helping farmers cope with weather patterns, pest attacks, soil conditions, crop health monitoring and more in real time. As AI applications are now extensively used in various areas of farming, farmers can optimise their harvests and gain a competitive edge, pointed out Rungta.

The shift towards a tech-led approach at the grassroots is significant, given that India’s agriculture sector contributes 18.2% to the country’s GDP and employs nearly 45% of the workforce.

Yatra’s Shakti Goel, a tech veteran with more than two decades of experience, also highlighted the remarkable journey of AI, from Lotus spreadsheets to Oracle databases to the advent of GenAI. According to him, AI has long been a trusted tech tool supporting human decision-making. But its potential to revolutionise business strategies has not been fully realised until now.

He cited how Coca-Cola introduced its cherry flavour in the US, where IoT-enabled dispensers allowed customers to add the flavour to their drinks. More interestingly, the initiative was based on data analytics instead of an on-ground market survey.

Goel revealed an interesting use case when talking about Yatra’s AI journey. Digging into its hotel data, it realised that it was selling a significant chunk of Hilton bookings. But Yatra did it for third parties and not directly for Hilton. Armed with this insight, the company approached Hilton with a proposal to supercharge their partnership. 

Gaurav Bagga of Pristyn Care (a startup specialising in elective surgery) discussed how modern healthcare providers can leverage GenAI to improve patient experience.

“We use GenAI to analyse and improve how our care co-ordinators engage with patients. The data gathered from these interactions allows us to prioritise action items so that care coordinators can make informed decisions and deliver on their commitments,” he said. 

Balancing Risk, Cost And Innovation In The Era Of GenAI 

AI has immense potential to transform businesses. But it also comes with significant risks such as data breaches, hallucinations (inaccurate/misleading assumptions), biases and lack of compliance.

According to a 2024 Orca Security report, 58% of organisations store sensitive data in the cloud. This data could leak if used for AI-GenAI training or validation purposes, leading to a breach of confidentiality and other damaging consequences. Orca Security report 

So, how can businesses confidently adopt AI-GenAI, balancing growth and efficiency with security concerns?

“It is not a one-size-fits-all solution. A single large language model (LLM) may not suit every industry. To achieve higher accuracy, you need a customised model built on your data, rather than relying solely on generic models,” said Palanivel of Oracle India.

He also mentioned Oracle’s Retrieval-Augmented Generation (RAG) technology in this context, which enhances the accuracy and effectiveness of AI applications by integrating retrieval (of training data) and knowledge augmentation (without retraining) in a unified system. This mechanism helps mitigate risks like hallucination, misinformation and bias, which occur in purely generative models that cannot reference knowledge sources outside training. 

Other experts on the panel also voiced their concerns about open-source AI applications, trained on widely available data that may lack accuracy or a neutral, cognitive approach needed for reliable GenAI functions. Nevertheless, they have a cost advantage. Startups, for instance, may not find it feasible to build custom LLMs and must opt for pay-and-use models. 

It will take time to gain trust in these third-party systems. A TCS survey found that 59% of corporate functions have AI implementations in progress or completed these projects. However, only 20% of corporate leaders feel well-positioned to leverage AI to their strategic advantage. Cloud providers are stepping up data security, while businesses will increasingly depend on high-quality and customised data for enterprise usage. 

The big question remains, though: Will artificial intelligence outsmart humans? 

Until we get closer to creating artificial general intelligence that can function on a par with a human’s cognitive capabilities, the answer is – no. In the foreseeable future, the new technology will continue to complement human capabilities, but it will also redefine the future of jobs.

To begin with, AI-GenAI will enhance human productivity by automating repetitive and time-consuming tasks. Again, AI and deeptech will continue to create new opportunities, from prompt engineering and agent-specific expertise (think of Copilot skills) to AI advisory roles, LLM development and more, our panellists said. In essence, the future of work will be driven by the three A’s – AI, analytics and automation. So, enterprises and individuals must strategise and develop skills to meet the requirements of a new epoch.

The post How GenAI is Rewriting Business Strategies Across Sectors appeared first on Inc42 Media.

As the global economy faces headwinds, brands and business platforms increasingly enhance customer experience (CX) to boost the top line and lower customer acquisition costs. However, CX is no longer limited to routine support or after-sales services in this consumer-driven economy. Businesses today have a deeper understanding of CX success criteria and how tech innovations can help them achieve real-time customer centricity.

This is especially crucial as great CX is a growing demand in post-Covid times. According to a recent Salesforce report titled State of the Connected Customer, 80% of customers say the experience a company provides is as important as its products and services and 81% expect faster service as technology advances.

CX is a vast area, though, spanning the entire customer journey. But at a granular level, growth, profitability and customer satisfaction hinge on a seamless and multi-channel payment experience rather than struggling with random digital tools every time a transaction is made. Startups in the travel and mobility sector require a transformative payment system even more. Whether it is ride-hailing for local travel, long-distance tourist mobility or travel package/hotel booking, these businesses are essentially volume and value-intensive and need to accommodate multiple payment methods as people embrace the latest payment solutions.

Take, for instance, new solutions like BNPL (buy now, pay later) or the UPI-credit card linking that provides customers with many choices. As consumers demand instant, hassle-free and secure payment options in sync with their unique needs, building an overarching payment ecosystem is emerging as a successful CX hack in the travel and mobility space, enabling startups to build a major competitive moat.

To explore how to enhance CX in travel and mobility through an inclusive payment approach, Inc42 and Simpl (a Bengaluru-based payments startup) recently held an online panel discussion titled How Seamless Payments Are Reshaping Travel & Mobility, Taking CX A Notch Up. The panel discussion was part of an ongoing series called Consumer Brands Reimagined.

The session covered many critical topics, including: 

• Understanding one’s target customers and their key pain points
• How a seamless payment experience can shape and enhance CX 
• Decoding the needs and expectations of new-age consumers

Moderated by Nitya Sharma, founder and CEO of Simpl, the panel brought together CX leaders from the travel and mobility sectors, including

• Avinash Banavathu, VP (growth) at AbhiBus
• Ameya Sood, associate VP (product) at ixigo
• Abhishek Bhasin, director (brand & app performance marketing) at MakeMyTrip
• Pramod N, VP (head of product and data science) at Rapido 

Navigating The Customer Experience Matrix In Travel And Mobility

The travel and mobility space is undergoing a major change thanks to the rise of Gen Z. This new-age consumer class values instant gratification, looks for asset-light consumption (renting over owning) and prefers flexible payment methods like BNPL. Per a June 2024 PYMNTS report, nearly 50% of Gen Z and millennial consumers used BNPL in the past 12 months, and 63% of them cited better control on cash flow as an important reason for their choice.

The BNPL market size is estimated to reach $122.8 Bn by 2031, but there is no set usage pattern in a diverse market like India. Newer payment solutions like UPI and BNPL have not wiped out cash or traditional plastic money (credit and debit cards), although new-age consumers rarely carry physical cards. Nevertheless, travel and mobility businesses will do well to cater to all payment preferences if they do not want to overwhelm not-too-tech-savvy customer cohorts.      

Bhasin of MakeMyTrip narrated a use case where a payment service was designed to enhance customer experience. “We focus on being proactive and recently launched a product called Visa Rejection. It provides a 100% refund on flight tickets if your visa is rejected.” 

The product meets customer requirements in unforeseen circumstances. The goal is always to stay ahead of the curve and come up with solutions that consumers may not even realise they need, he added.

According to Sood of ixigo, when customers hit the pay button, they are at the final stage of their journey. Therefore, any friction at this point is bound to impact CX metrics. 

“At ixigo, we rely entirely on digital payments. It is the last stage of the [sales] funnel and extremely critical for our LOBs (lines of business). Our payment solutions must ensure that a user making it to the payment stage has a zero-friction experience,” he said.  

To know how consumer brands master seamless payment experiences and enhance customer satisfaction, watch the Inc42-Simpl panel discussion – How Seamless Payments Are Reshaping Travel & Mobility, Taking CX A Notch Up. 

The post How Seamless Payments Are Reshaping Travel & Mobility, Taking CX A Notch Up appeared first on Inc42 Media.

Moving from traditional school programmes to online/remote learning propelled the edtech sector during the Covid-19 pandemic. Now, a new learning choice rooted in immersive technologies like augmented and virtual reality (AR and VR) is making its way into mainstream education. 

AR-VR-powered edtech solutions are totally different from routine teaching and learning. Simply put, students interact with their virtual surroundings (true-to-life simulations presenting specific topics) for enhanced engagement, experimentation and collaboration. As education becomes hands-on and experiential, it also supports personal learning styles, an approach rarely adopted by traditional classrooms.

Pure-play virtual reality schools do not pop up in India every day. But Nikhil Bhatnagar and Sakshi Pawar were aware that VR learning would be a huge and growing industry in the near future. They launched SparkVR in 2022, determined to take problems out of textbooks and put them in the virtual space for an immersive experience and thorough understanding. 

“Imagine a student putting on a VR headset and instantly getting inside a human heart. They can see the blood flow, watch the valves open and feel the heartbeat. This leap from static images to fully immersive experiences is what SparkVR envisions for the future of education,” Bhatnagar pointed out.  

With a degree in computer science and exposure to artificial intelligence and virtual reality, Bhatnagar had first-hand experience in the education space for more than a decade. So, he decided to build various tailored solutions for academic learning, customised modules for corporate training and realistic simulations for the army. The mission is to boost skill acquisition through lifelike learning environments.

The startup now works with five schools and two universities, majorly based in Rajasthan. It clocked revenue of INR 15 Lakh in FY24 through B2B subscriptions and eyes a 40x leap to reach INR 6 Cr in the current financial year. It also aims to build a 1K-strong network, including government partnerships, to bring advanced technologies to the education landscape.     

SparkVR is backed by iStart Rajasthan, a state-led initiative to empower local startups through funding, mentoring and infrastructure support. It also raised INR 50 Lakh from Royal Scottish Investment.

Beyond Smart Classes: How SparkVR Upped Tech Play To Boost Learning 

Smart classrooms with whiteboards (displays loaded with text, images, pre-recorded audio-video lessons and more) are not a novel concept. But the SparkVR founder focussed on designing a system beyond existing solutions. He wanted learning to be fast and effective, accessible and affordable so that parents would not have to pay a premium.

“We noticed how countries like the UK, the US and Russia rapidly adopted VR. It sparked the idea – why shouldn’t we bring this innovation to the Indian education system? VR can significantly enhance the learning experience for both students and teachers,” said Bhatnagar.

The model is pretty simple. Users only need VR headsets and strong internet connections to access top-notch learning experiences. The startup collaborates with school teachers to develop and update its educational content quarterly, ensuring that students and educators can always access the latest study materials. 

What sets it apart from similar ventures is its use of 6DoF (six degrees of freedom) technology, offering a high level of realism and interactivity. This advanced tech enables users to move and interact naturally within the VR space for better communication, deeper understanding of the topic and improved learning.

Corporate employees can also create personalised avatars to attend virtual training for professional upskilling. Students, too, can interact with virtual guides to explore campus facilities and courses at universities and communicate with administrators. 

SparkVR has integrated analytics tools to track user engagement and performance that help enhance training processes and optimise learning outcomes. Its software and content modules are fully compatible with the Meta VR headsets it currently provides. However, the startup will manufacture the hardware when semiconductor production (along with advanced chips) begins in India.

To deepen the immersive learning experience in schools, it will set up dedicated VR labs, each costing around INR 6 Lakh. It is also working on AR-based learning models to make learning even more immersive and meaningful.

Talent Woes And iStart’s Hand-Holding 

“As a fast-growing startup working in AR-VR education space and focussing on Metaverse technologies, it is a constant struggle to find professionals with the right technical expertise and creative vision,” observed Bhatnagar.

It is not surprising. Tech startups often face a significant talent crunch, as the demand for skilled professionals far exceeds the available supply. India ranks seventh globally in terms of talent shortage, with 81% of employers struggling to find qualified workers, according to a 2024 ManpowerGroup Employment Outlook survey.

To bridge the talent gap, SparkVR invests in internal training to upskill its existing teams and help them excel in more advanced roles. It also connects with edtech platforms and industry networks to identify top talent at an early stage for targeted recruitment.

Talent shortage also leads to hurdles in scaling up, making it difficult to maintain quality standards and innovation momentum. However, the Jabalpur-based startup who also has its team in Rajasthan got extensive support from iStart Rajasthan to overcome these challenges. 

“iStart mentored us, provided resources and offered networking opportunities. Its hand-holding and our strategic focus on team building and recruitment allowed us to navigate these problems,” said Bhatnagar.

Will AR-VR Integration Drive Indian Edtech?     

Adopting immersive technologies at scale can benefit India in more ways than one. As the country races towards 100% literacy, a core theme of the National Education Policy (NEP) 2020, schools are gearing up for a tech makeover to empower students. 

According to a recent ResearchGate report, 75% of public school students in India want VR to replace existing teaching methods. On the other hand, 86% of private school students are keen to use it as a supplementary learning tool. Given this shift in focus from rote learning, around 50% of Indian schools may soon adopt immersive technologies. It also means homegrown extended reality (XR) startups like SparkVR, ClassVR and the rest will witness growth opportunities as never before.

Although India-specific numbers are not available yet to quantify this growth, the global AR-VR market in the education space is estimated to reach $14.2 Bn by 2028 from $3.8 Bn in 2023, at a CAGR of 29.6%.

A leap towards immersive technologies will have its challenges, though. For starters, traditional courseware has to be spun on its head and simulations of complex concepts will have to be developed, focussing on spatial thinking.

A robust internet infrastructure, advanced software, and affordable headsets and visors are equally crucial for seamless content streaming and constant dialogue between users and educators. After all, AR-VR education is more than putting users into headsets for the long term with zero human interventions. It is all about identifying critical areas of learning (say, STEM education) and reconceptualising those as supplemental programmes to ensure equitable, inclusive and quality education.

Educational institutions in India have been laggards in adopting new technologies and learning systems. Now that several AR-VR startups spearhead the change, will they adopt these cutting-edge edtech solutions at scale minus the downsides?

The post How SparkVR Is Using Virtual Reality To Transform Traditional Classrooms appeared first on Inc42 Media.

Is AI-GenAI playing a pivotal role in improving processes and productivity across mainstay enterprises? Most companies think so and focus on leveraging these new tech opportunities to achieve sustainable growth. Data remains the critical base for AI/GenAI tools to understand and analyse the best way to increase efficiency and hourly productivity.  

This should not be a problem in a digital environment, as businesses tend to sit on vast amounts of data. However, most organisations struggle to derive meaningful business insights due to the presence of data silos, isolated data repositories that fail to bring the bigger vision. 

Moving business data to the cloud is one way out. Cloud systems provide scalable storage and consolidate data from different sources into a central repository. An EY-FICCI report also states that 78% of organisations are now implementing cloud strategies to modernise technology infrastructure and integrate intelligence into business applications. While companies failing to adopt cloud operations may not be able to utilise the full benefits of advanced technologies like GenAI, those doing so face significant challenges regarding effective and secure data management. 

To look at the hurdles and opportunities in AI-GenAI and data management, Inc42 and global IT services giant Oracle recently organised a roundtable in Bengaluru. Delving on the theme, Unlocking Data & AI Potential: Charting A Path To Innovation And Growth, it was the first of a two-part roundtable series titled Boardroom: Powering Data With AI and saw more than 10 tech leaders convene from various sectors, including deeptech, biotech, fintech, SaaS and more.

Moderated by Sameer Dhanrajani, CEO at AIQRATE & 3AI, the session brought together:  

• Naveen Budda, cofounder, KarmaLifeAI
• Vinay Rai, Executive VP, Netradyne
• Ramakrishna R, cofounder & CTO, CureSkin
• Alok Dube, chief architect, Embitel Technologies
• Henry Jacob, CTO, Quess Corp
• Parth Gaglani, head-product & analytics, Rocketium
• Amit Phatak, VP & head of decision intelligence, USEReady
• Dr Sudha Rao, cofounder & executive director, Genotypic
• Mayank Satnalika, director (AI and engineering), CloudSEK
• Anoop Mishra, senior director & head of data platform, Ace Turtle
• Pranjal Singh, data scientist, udaan
• Saravanan Palanivel, VP-cloud engineering leader, Oracle India

From Healthcare To Ecommerce: How AI Is Impacting Industries

The roundtable discussion began with a deep dive into specialised AI applications in different industry sectors. 

“AI has brought remarkable advancements in life sciences and pharmaceuticals,” said Rao of Genotypic. “In pathology [disease detection], for example, AI-driven image analytics can detect conditions like glaucoma earlier than traditional diagnostics. AI is also transforming demographic and genomic data use in image analysis, disease prediction, tumour classification and more.” 

Ramakrishna R explained how AI helps CureSkin build a large customer base beyond Tier I cities, although most dermatology specialists are based in those locations. “For us, AI is an optimisation tool bridging this gap,” he said.

“Besides, a single doctor can manage and treat hundreds of patients every day with the help of AI, a feat impossible to match without such technology,” he noted, highlighting AI’s prowess in diagnostic support and predictive analytics. 

Singh from Udaan (a B2B marketplace targeting SMEs) discussed the unique challenges businesses often face beyond the metros. “In Tier II and III cities [Bharat, to be precise], AI plays an important role in product discovery and related issues. Many customers in these regions are not tech-savvy. So, we have introduced features like vernacular and voice search to meet their preferences and improve their shopping experience,” he said.

Netradyne, a startup ensuring fleet safety, is another compelling use case. “We use AI, especially deep learning in computer vision, to enhance road safety. Our IoT devices with cameras and sensors are mounted on vehicles to monitor road conditions and evaluate driving safety. This technology has already led to a 50% reduction in accidents and the system is in the cloud for real-time analysis,” said executive vice-president Vinay Rai.

How Enterprises Are Navigating AI Adoption

In spite of doubts and fears, AI-GenAI and its many subsets have rapidly transitioned from futuristic concepts to core components of modern business strategies. Companies increasingly embed these technology tools into their operations as these technologies permeate everyday life. But this rapid adoption has a downside. The cost of adequate data security compels organisations to balance seizing tech advantages to drive growth and mitigating data risks.

“Yes, AI adoption is on the rise, but data security remains a significant concern,” said Dube of Embitel Technologies. “Many advanced language models, though highly effective, are not cost-efficient to run on-premises or on individual cloud instances. As a result, organisations often rely on well-trained models from open-source providers. While adoption is progressing, challenges around data security remain a barrier.” 

He explained that companies frequently utilise open-source AI tools for non-sensitive data they are comfortable sharing publicly. However, businesses remain cautious when handling sensitive information.

Saravanan from Oracle had a different perspective, though, he emphasised the synergy between AI & cloud for enterprises. 

He cited an example of “Horses for Courses” that every problem of GenAI will not be solved by one model and one model does not fit all. “For summarisation you require a model different from image creatio , than a language translation. Each model requires a set of data to get trained which are specific to use cases. Model using RAG (Retrieval Augmented Generation) trained on use case specific data, delivers higher accuracy with lesser hallucination,” he said.

Oracle for one, offers various models which are specifically trained for key enterprise use cases, some of them are Cohere, Llama, Hugging face & others 

“Data security is, of course, a concern for any AI use case. AI tools require large amounts of data, and the cloud provides a unified storage solution for this data. With more data, AI models become more efficient. Oracle offers solutions where your data remains within your own environment while still using shared AI models & delivers the results” he said

Saravanan added that for enhanced security, cloud providers often dedicate AI clusters to customers running large language models (LLMs), ensuring data isolation and protection through encryption.

“Most large banks have not fully embraced AI because they are often too comfortable with their existing rules and processes,” observed Mishra of Ace Turtle. 

Satnalika of CloudSEK concurred, saying psychological barriers hinder AI adoption in the financial sector. For instance, banks cannot justify subjective decisions like loan approval if the process becomes automated. 

Despite varying adoption rates across industries, one thing remains certain. Businesses are keen to keep pace with this latest technology to optimise internal processes, enhance customer service and maintain a competitive edge.

Industry data is in sync with this trend. According to a recent report, enterprise AI/ML transactions soared nearly 600%, jumping from 521 Mn a month in April 2023 to 3.1 Bn by January 2024. The US accounted for 40% of enterprise AI transactions, while India was second with 16% of global AI transactions, driven by the country’s increased focus on fostering innovation. The APAC region saw a 135% (1.3 Bn) jump in AI transactions, also attributed to India’s widespread adoption and usage of AI tools.

The road ahead is clear. Indian businesses will continue to invest aggressively in AI-GenAI and cloud technologies to stay competitive and drive growth. 

The post Harnessing AI For Growth: How Indian Enterprises Are Using AI to Transform Business Operations appeared first on Inc42 Media.

There’s something special about the chatpata (deliciously tangy) candies that will never fail to tickle Indian taste buds. Many of us are still besotted with mango and imli (tamarind) delights, so much so that these timeless flavours have found their way into chutneys, juices, curries and countless other dishes.

Nostalgia hit him when Vinay Kothari, an FMCG professional, stumbled upon some jackfruit candies at a roadside stall on a trek to the Western Ghats in January 2018. The familiar taste flooded his mind with long-forgotten childhood memories, and he left the place with bags full of those savoury candies. 

Upon his return, he booked a stall at a flea market and sold the entire stock in half a day. Overwhelmed by the response, he joined forces with his sister Raksha (an engineer by profession) to set up a new venture. The duo launched the direct-to-consumer (D2C) food brand GO DESi before the year was out.

As its name suggests, the brand encourages consumers to embrace their desi roots and buy traditional candies in a variety of flavours, all made from fruit pulp and brimming with the natural goodness of jaggery used as a sweetener. 

GO DESi runs a 40K sq. ft manufacturing facility in Sira village and Bidadi near Bengaluru and collaborates with farmers, self-help groups, co-operatives and rural businesses to ensure a steady product flow. These tie-ups are critical for a food brand that thrives on local flavours and must have a thorough knowledge of the landscape for best-in-class procurement and excellence in production. 

The brand has 40 SKUs on offer across four categories. These include its flagship DESi PoPz (candy bar on a stick), traditional Indian sweets, snacks and mouth fresheners. 

GO DESi clocked INR 60 Cr in revenue in FY24 and targets INR 75 Cr in FY25.

Inside GO DESi’s ‘Sweet’ Bet: Old Classics Made New

“GO DESi isn’t just one thing. It’s not just about the products or the stores. It is about crafting a unique experience that our consumers can connect with,” said Vinay. 

So, it incorporates a whole range of regional flavours and natural ingredients in its products. The focus is more on exploring varieties not readily available in urban markets. For instance, DESi PoPz is made from tamarind, mango or guava pulp. 

It has also introduced yummy but healthy snacks like baked ragi chips, guava bytes, spicy mango bytes and more. 

But the best part of its product journey is a bold leap to reimagine traditional sweets. Classic Indian treats like kaju katli, laddu and barfi are made cool and contemporary, breathing fresh life into these long-cherished confections.

“You may give your partner a popular chocolate bar on Valentine’s Day, but do you consider giving them a kaju katli? Not ever, but why? The challenge lies in making traditional sweets cool enough for that. We are working on a product line that resonates with Gen Z and Generation Alpha,” Vinay sounded confident.

How does GO DESi achieve this? By reshaping traditional barfis as barfi bars resembling chocolate bars. This innovative twist preserves the essence of the treat and aligns with today’s consumer preference. The packaging complements the modern approach and stylish gift boxes are rolled out during Diwali and Raksha Bandhan to add to the ‘cool’ quotient.

From Offline To Online, How GO DESi Has Mastered Omnichannel

If product development is an essential criterion for business success, so is distribution and sales. Brand discovery and reaching customers en masse are challenging for new brands. To cope with it, the founders kept the pricing pocket-friendly. Their flagship product, DESi PoPz, is sold at INR 5 a piece. More importantly, they prioritised offline distribution instead of an online-first approach that most D2C brands choose to minimise intermediary costs.

For Vinay, offline distribution comes naturally, given his prior experience, but it was also a strategic move despite the high costs of brick-and-mortar retail. 

“To achieve a certain top line, we had to reach a much larger audience, which was initially daunting. Hence, the offline-first approach. Nevertheless, we decided not to rely on a single route and gradually adopted a multi-channel strategy. This worked well, as we did not put all our eggs in one basket. Today, we are truly an omnichannel brand, and this broad distribution approach has driven our success,” explained Vinay.

Covid-19 lockdowns in early 2020 further bolstered the decision to diversify the brand’s distribution from offline to online. Its digital journey started with DESi PoPz assortment boxes and the founders saw an opportunity to expand the product line minus the hassles of offline marketing. GO DESi entered the Amazon marketplace and set up its D2C website, followed by quick commerce and offline kiosks. It currently runs 31 kiosks in Bengaluru and claims a presence in 50K offline stores.  

Vinay says he always starts with DESi PoPz (due to its low price point and innovative format) whenever exploring a new distribution channel. The success of the flagship paves the way for the introduction of other products.

Currently, about 40% of the D2C player’s sales come from offline, nearly 20% from marketplaces like Flipkart and Amazon, 30% from quick commerce and just 10% from its website, typically through bulk orders. 

Rukam Capital: The Catalyst Behind GO DESi’s Growth

Breaking into an overcrowded retail space and creating a niche is no small feat, especially in a segment ruled by legacy giants like Haldiram’s and Bikanerwala. But the founders did not waver. 

“The traditional sweets market in India presents a considerable opportunity, as nearly 85% remains unorganised. Only a handful of players have transitioned to the packaged sweets segment, but the unorganised sector dwarfs the combined confectionery and chocolate markets. It is at least eight to 10 times larger,” observed Vinay.

The domestic market for packed sweets reached INR 6,229.7 Cr in 2023, per a Research and Markets report, and it is projected to surge to INR 25,970.8 Cr by 2032, at a CAGR of 17.19%. Although consumers prefer established brands, no single entity can fill this void.   

“The rising demand for packaged sweets is driving growth across platforms, and this is the gap we aim to address,” said Vinay.

Delhi-based Rukam Capital, known for investing in early stage consumer brands, has played a crucial role in this endeavour. GO DESi secured one of its first institutional rounds from Rukam in 2018, and the VC firm has consistently supported the business. It had invested INR 79 Cr across three rounds and recently joined another round of INR 41 Cr, led by Avishkaar Capital.

Vinay also lauded the VC’s support even during challenging times like the Covid-19 pandemic. “What stands out about Rukam is its thorough understanding of the ground reality. It knows what it takes to build and scale a business and understands startups’ unique challenges.”

“The unorganised to organised play is a very important point for an emerging market like India. There are many much loved recipes and food products which appeal to the Indian palette. In the couple of decades prior to our investment in Go DESi with the exception of brands like PULSE, no real startup was created in the impulse category. It is a no-brainer that a high-quality product like Imli PoP would appeal to consumers all over the country,” said Archana Jahagirdar, managing partner at Rukam Capital.

She acknowledged that the founders’ backgrounds and their commitment to building a healthy yet tasty product made this investment decision fairly easy. 

“Our approach with our portfolio is to be there in a non-intrusive way and help with thinking through an appropriate solution for such problems. So, from emphasising on in early days on keeping a close eye on business fundamentals, brand building and adding heft to the leadership team we have been there with the founders every step of the way,”  Jahagirdar added.

GO DESi’s Vision: More Twists To Indian Sweets, Overseas Expansion 

According to industry estimates, around 82% of Indians prefer traditional sweets to Western desserts, chocolate and ice cream. Keeping in mind the evolving market and consumers, GO DESi plans to dive deep into traditional sweets.

It will also launch new flavours and explore new product categories. The focus is to ensure widespread consumption of Indian sweets and snacks.

The brand aims to double its kiosks from 31 to 60+ across major Indian cities by FY25, achieve a valuation of INR 500 Cr by 2028 and expand the global reach of packaged traditional foods. 

“We want to become one of those packaged food brands that make Indian cuisine truly global. Just as Korean cuisine has gained huge popularity and everyone is talking about it, we aspire to achieve the same for Indian sweets,” the founders said.

There are glitches, of course, as Indian brands need to adopt healthy ingredients, follow global quality standards and offer a broad range of dietary choices for the diabetic, the vegan, the vegetarian and more. But new-age players like GO DESi and its peers are all set to innovate and cater to the modern palate.

The post How D2C Brand GO DESi Is Adding Modern Twist To Traditional Sweets & Candies appeared first on Inc42 Media.

BITS Pilani’s KK Birla Goa campus is all set to hold the 12th edition of its annual entrepreneurship summit, ‘Coalescence 2024: Pioneering Limitless Possibilities’, from September 13-15. 

The flagship annual event is organised by the Centre for Entrepreneurial Leadership (CEL), a student-run organisation fostering innovation and entrepreneurship among students.

This year’s edition of Coalescence will feature a stellar lineup of speakers and events, providing opportunities to aspiring entrepreneurs to network and showcase their ideas. Ankur Warikoo, an entrepreneur, author and motivational speaker, will be the chief guest for the summit. 

The summit will also feature Dr. Vijendra Chauhan, a distinguished Hindi literature professor at Delhi University and a celebrity influencer among UPSC aspirants. Zoozle founder Rajesh R Dembla, Habuild cofounder Saurabh Bothra, Stratzy cofounder Mohit Bhandari among others as speakers, who will share their experiences about building successful ventures. 

The previous editions of the summit featured Zerodha cofounder Nikhil Kamath, Snapdeal founder Rohit Bansal, Justdial cofounder V. Krishnan, CRED founder Kunal Shah, Bollywood actor Tapsee Pannu and Postman founder Abhinav Asthana. 

Last year, over 5,000 persons attended Coalescence and 110+ colleges took part in the entrepreneurial summit where about INR 5 lakh prize money was given to winners and more than 25 events took place. 

This year, CEL aims to make the summit even bigger and better. As part of the event, the student group organises a ‘Shark Tank’ panel which brings together founders of startups that feature on the popular business reality TV show ‘Shark Tank India’. This year, the panel will consist of founders from a diverse range of industries, from healthy snacks to luxury travel. 

Rize Bar’s Dhruv Verma and Sahil Manral, Uncle Peter’s Pancakes’ Sundeep Singh and Akashdeep Dan, WhySoBlue’s Shweta Shivkumar and Nasher Miles’ Abhishek Daga will be on the panel this year. 

Coalescence 2024 will also host workshops and events to offer students hands-on experience in various aspects of entrepreneurship. The Startup Treasure Hunt, How To Create A Personal Brand, The Stock Edition, Business Quiz, Case Study Competition, among others, will be the theme of the workshops this year. 

The events and workshops will be followed by ‘Networking Night’, during which founders and business leaders will interact over some fun exercises, providing students insights into their lives and learnings. More than 30 founders and speakers from across the country, over 25 business leaders from Goa, and about 10 BITS alumni will attend the night. 

Coalescence 2024 will conclude with ‘Startup Showcase’, which will see participation from investors and venture capitalists. It will provide a platform for students to find internship opportunities or kick-start their entrepreneurial journeys. 

The post Coalescence 2024: BITS Pilani All Set To Host Annual Summit To Connect Students With Startup Founders, Investors appeared first on Inc42 Media.

Social media has influenced everything from the way we interact to the way we make purchasing decisions. However, a growing disillusionment seems to be emerging among Gen Z, the quintessential followers of social media. 

Often stereotyped as digital natives glued to their screens, this demographic may be close to reaching a tipping point. A recent survey by Talker Research of 2,000 Gen Z Americans found that three out of four believe social media negatively impacts their mental health. 

Despite this, many are not ready to abandon social platforms. They cite boredom and the need for distractions as the reasons to stay engaged. This raises an important question: Can we eliminate doom scrolling while still enjoying the benefits of social media?

Ish Goel, a serial entrepreneur and the founder of Hunch, believes that the key to solving this issue lies in transforming users from passive consumers into active contributors.

“The 1:10:90 rule applies to most social media platforms, which is 1% create content, 10% engage, and 90% merely consume,” Goel said, adding that Hunch aspires to change this by giving voice to silent spectators online.

To challenge the current state of affairs, Ish, along with Nitika Goel and Kartic Rakhra, founded the new-age social media discovery platform, Hunch, in December 2022. Imperative to mention that the trio had previously founded PlotX, a Web3 gaming startup, in 2020.

Moving on, the premise of Dubai-based Hunch is simple — The platform allows users to create polls on any topic — from politics to education, entertainment, dating and more — while maintaining complete anonymity. Unlike traditional platforms, Hunch has no private accounts and its polls are open to all.

Users can engage by voting, or ‘hunching’ (as the founders like to call), commenting or adding emojis and likes. They can also follow each other without the pressure of revealing their identities. The founders hope this anonymity will lead to more candid discussions on the new-age social media discovery platform, providing users with a safe space to express their thoughts without the fear of being judged.

Currently, Hunch claims to have over 2 Mn users in India and the US. The platform targets young adults between 18 and 30 years of age.

Breaking The Social Media Mould: The Hunch Way

Highlighting the core philosophy of their platform, the founders said that the Hunch app transforms ‘likes’ and ‘follows’ into meaningful connections and cultivates an environment that is both authentic and interactive.

“We empower users to express themselves freely without the burden of societal expectations and getting judged,” Ish said.

With its thesis to completely change the existing social media paradigm, Hunch aspires to challenge the dominance of established players. Interestingly, the startup aims to accomplish this by betting big on polls. Unlike other platforms that offer polls just as a feature, Hunch places them at the core of its user experience. 

Further, the concept of anonymity also resonates strongly with social media users, which the Hunch founders claim to have championed in their endeavour.

A 2024 study by the University of Queensland reveals that people prefer to remain anonymous online because it provides a sense of comfort, especially for those who are self-conscious or socially anxious in real life. Anonymity allows them to participate in discussions and form relationships without feeling exposed.

Hunch leverages this insight to its advantage. However, on the flipside, the same study also notes that anonymity can lead to antisocial behaviour, such as trolling or cyberbullying, due to lack of accountability.

So, how does Hunch address this issue? Well, for this, the startup has created clear and comprehensive guidelines that define what is acceptable on the platform and what’s not. The app’s guidelines are in line with the laws in India and the US.

To manage user-generated content, Hunch employs a robust content moderation system that combines AI-powered tools and a dedicated review team. Users can report the content, including private messages, which they believe violates community guidelines. 

The app’s reporting feature is user-friendly, allowing individuals to label specific violations and offer additional context. Each report is manually reviewed by an in-house team, while AI tools assist in identifying content that breaches community guidelines. Additionally, Hunch’s in-app reputation system, driven by a ‘Vibe score’, filters out bot accounts and helps distinguish between good actors from bad ones.

Challenges And Funding Opportunities

Entering a market dominated by giants like Facebook, Linkedin, Instagram, and others has not been an easy feat for the Hunch founders. Despite this, as per Ish, they have been able to successfully capture the attention of social media users through a well-thought-out strategy, primarily focussed on product differentiation and marketing.

Meanwhile, Hunch’s tech team, which is entirely based in India, has developed a proprietary algorithm designed to match user profiles with content that aligns with their interests.

“Our entire tech and product team operates out of India. We have hired top-tier tech talent. Our tech stack includes a diverse range of tools, including GraphQL, Kinesis and more,” Ish said.

The algorithm analyses the polls a user answers and recommends connections with others who have similar responses. The more polls a user engages with, the richer the data, which enhances the app’s ability to connect people with shared interests and viewpoints. 

This matching system ensures that users encounter others who resonate with their preferences, allowing them to build more meaningful and relevant interactions. For example, if a user frequently engages with content related to dating, their feed will likely feature more dating-related polls. This personalised approach ensures a relevant and engaging user experience.

However, what’s more interesting is that Hunch’s social media bet with polls at the centre seems to be resonating well with venture capitalists (VCs), too. The startup first raised $3 Mn in seed capital in December 2022. Then, in March 2024, it secured $23 Mn in a Series A funding round led by Alpha Wave. South Korea-based VC firm Hashed Emergent and others also participated in the round.

The funding push has been pivotal for Hunch, enabling it to scale its tech team and fuel its marketing efforts.

Ish noted that as a new entrant in the social media space, the startup initially faced several challenges in encouraging users to transition from familiar platforms to Hunch. 

To take control of the situation, the founders adopted a marketing strategy that comprised performance and brand-based approaches, including PR efforts, influencer campaigns and campus marketing initiatives.

Buoyed by growing interest from Indian users, Hunch gained the confidence to expand and launched in the US in 2023. This move was a logical step, given that India and the US are the largest social media user nations globally, with 755.47 Mn and 302.25 Mn users, respectively, after China at 1Bn+, according to Demandsage.

Hunch For The Future 

Currently in its pre-revenue stage, the founders’ short term goal is to create a sustainable revenue stream. To capitalise on the value and utility that users gain from the platform, the startup is primarily considering monetisation through in-app purchases.

In addition, the startup is laser focussed on solidifying its presence in the US market, all while broadening its user base in India. 

As per Ish, the strategy is different from most of its Indian counterparts. For example, Koo and Moj attempted to Indianise X and TikTok, respectively. While Koo has now ceased to exist, the Indian government pulled the plug on TikTok on June 29, 2020.   

With hardly anything in common, Hunch is actively pursuing its goal of empowering global users to voice their opinions. However, come as it may, the anonymity proposition could be a double-edged sword. 

While it allows people the freedom to express themselves, it also opens the door for misinformation and hate speech. To mitigate these risks, the founders will need to make sure that the platform does not become a breeding ground for trolls and cyberbullies.

The post How Hunch Captured 2 Mn Users in India & The US By Redefining Social Media Interaction appeared first on Inc42 Media.

India’s startup ecosystem has been recognised as a hotspot for innovation and value creation. The ensuing environment has brought together entrepreneurs, investors (both individual and institutional), mentors, academia, MSMEs and corporate houses and government stakeholders to work on ideas, technologies and funding. However, the primary challenge lies in boosting the dynamics among these interdependent stakeholders for the best possible outcomes.

Consider a dorm room startup that has successfully created a prototype and now requires capital and paying customers to enter the target market. The founders must approach risk-happy angels or venture capitalists keen on supporting early stage businesses in that niche. But it is easier said than done unless one has access to a suitable network or relevant information about the enablers.          

The same holds good for the entire cluster. Unlike industrial leviathans, the overarching structure of the new-age system is highly dynamic. Here, businesses operate across different life cycles, from early to growth and late stage, and span many sectors, including ecommerce and fintech to deeptech, regtech and more. Therefore, accessing the right resources at the right time is critical to achieving exponential growth for the ecosystem.

As Gernot Grabher and David Stark pointed out in their research, “the unit of entrepreneurship is not the isolated individual but networks of actors”. Hence, a collaborative framework and seamless access to critical data are needed for equity and efficiency, the key elements of growth. 

Recognising this need, the Indian government is setting up BHASKAR (Bharat Startup Knowledge Access Registry), a centralised data repository and feature-rich platform to support “networking, collaboration and the efficient exchange of knowledge and resources across the entrepreneurial value chain”. Piyush Goyal, the Union minister of commerce and industry, announced the initiative at the Startup Mahakumbh in March 2024.

Bharat Startups Are Rising, But More Help Is On Their Way

Indian startups are likely to create 50 Mn jobs and add $1 Tn to the economy by FY30, per a CII-McKinsey report. The ecosystem also contributed 10-15% to the country’s GDP growth between FY16 and FY23, and their GMV of exports could jump 20-23x to $140-150 Bn by FY30 from $6-10 Bn in FY23, the report stated. 

Interestingly, this rapid job and wealth creation is no longer confined to traditional startup hubs across metros/Tier I. Last September, the commerce and industry ministry told the Rajya Sabha nearly 50% of Indian startups hailed from Tier II and III locations, underscoring that the startup wave gradually permeated every nook and cranny. 

The fact that the number of startups recognised by DPIIT (Department for Promotion of Industry and Internal Trade) soared to more than 1.4 Lakh in 2024, up from 300 in 2016, confirms that decentralised startup growth is taking centre stage, and the entrepreneurial spirit is rising across Bharat — from just the top three hubs (Delhi, Mumbai and Bengaluru) to emerging hubs like Chennai, Hyderabad, Pune, Kerala and the likes.

The growth of these regional hubs away from top locations helps create unique entrepreneurial cultures and business models. But there is always a risk that VCs may not interact with this new breed of startups, even though entrepreneurship varies substantially across metropolitan regions. In such cases, an initiative like BHASKAR plays a crucial role.

Thanks to its comprehensive, centralised compilation of startup data, BHASKAR will provide adequate visibility to underrepresented businesses. Startups, too, can tap into a rich data pool for effective networking and collaboration, leading to real-time impact. 

“When I started my journey with DPIIT, I felt there was a need for a platform that could connect the ecosystem at one place. Through Startup India, we have been recognising startups on the basis of the skillsets they possess. But what about those startups that are just entering into the ecosystem? With this registry, I want people who have made it in the ecosystem to continue being a part of it and mentor up and coming startups,” said Sanjiv, joint secretary at the Department for Promotion of Industry and Internal Trade (DPIIT) at an Inc42 event in March this year.

As the initiative is all set to unlock India’s dormant entrepreneurial energy, it will ensure the rise of startups beyond metros and boost participation from all over the country. BHASKAR’s inclusive approach will benefit all stakeholders and embody India’s spirit of thriving together.

How BHASKAR Aims To Drive Startup Growth

At its core, BHASKAR features an integrated data goldmine that covers startups and their founders, investors, incubators and accelerators, academia and government organisations. The free-to-use repository will do away with existing data silos and make crucial information readily accessible. This means startup data banks across ministries, government departments and other support organisations will be integrated with the BHASKAR platform. 

The all-new database with improved searchability will also ensure focussed networking and seamless connectivity among like-minded stakeholders.

BHASKAR also offers ecosystem analytics and quantitative data. This helps explore micro and meso levels to monitor how well the elements of the ecosystem connect for cross-organisational collaborations and strategic resource allocations. Stakeholders can also monitor progress, identify areas for improvement and make insightful decisions.

All entities willing to join BHASKAR’s one-stop repository must register on Startup India, a portal managed by DPIIT. After successful enlisting, each member gets a unique ID and a category-specific tag to avoid data duplication. 

The new initiative aims to broaden the startup resource pool, from funding and market linkages to incubation support, networking, mentorship and more, therefore creating an inclusive and diversified ecosystem. This will help implement innovative ideas, enable vital knowledge-sharing and fructify jointly held initiatives.

Indian Government Boosting Startup Growth

India’s startup scenario is rapidly maturing alongside global leaders like the US and China. And BHASKAR is a crucial extension of its ongoing efforts to empower emerging startup hubs nationwide. The project will offer a qualitative and quantitative overview of the ecosystem to connect startups, enablers and the government to address gaps and drive growth.

In a major boost for startups, the Economic Survey (2023-24) highlighted the Indian government’s commitment of more than INR 10.5K Cr to alternative investment funds (AIFs) under the Fund of Funds for Startups (FFS) scheme. This has already resulted in investments worth more than INR 18K Cr by the end of FY24.

With the rollout of BHASKAR, these unifying efforts will improve the growth prospects of less prominent regions and demographics and nurture innovation across the nation, bringing India closer to its vision of becoming a $5 Tn economy.

The post Decoding BHASKAR — Inside Indian Govt’s Mission Of Unifying The Indian Startup Economy appeared first on Inc42 Media.

When quick commerce became all the rage at the peak of the Covid-19 pandemic, no one was convinced that the 10-minute grocery delivery format would be sustainable. After all, Amazon was already going deeper into same-day and next-day delivery and Walmart-owned Flipkart was attempting to follow suit.

But as new players like Zepto and Blinkit rewire customer expectations and set industry standards, convenience has emerged as a core component for driving success across Indian retail, the world’s third-largest market after China and the US. 

Globally, the quick commerce opportunity is estimated to reach $303.3 Bn by 2030, from $38.9 Bn in 2023, at a CAGR of 34.1% during the forecast period. However, the widespread consumer use of quick commerce has not always spelt well for emerging e-tailers or direct-to-consumer (D2C) brands in India, says Madhav Kasturia, founder & CEO of Zippee, a fulfilment platform enabling same-day delivery for digital-first consumer brands & marketplaces across India — via their own websites. 

“Over a lakh of India’s brands face a myriad of obstacles when partnering with quick commerce platforms: Category limitations, opaque listing process, unsupportive category managers, hefty platform commissions and reduced visibility against category leaders are just some of them. With limited resources and brand recognition, breaking through a fiercely competitive market is an uphill battle,” he added.

D2C brands are often required to pay high commission on sales to list on q-commerce platforms, while larger established FMCGs enjoy more favourable terms and conditions. The reason: brand leverage. A highly-funded, growth stage brand may still get by, but what about those in their 0-10 journey? 

The D2C dilemma is bound to make the q-commerce listing decision quite tricky. On one hand, brands can open yet another door (currently touted as the hottest new distribution channel) for their customers to drive incremental sales. On the other, most brands on the platforms are not making sustainable tailwinds, with skyrocketing commissions eating into their margins. 

Kasturia identified these issues early in the day and claims to have found the sweet spot, a midway between traditional courier delivery times that take three+ days and the cost-intensive 10-minute hustle. 

Zippee provides a same-day delivery window for D2C brands powered by q-commerce-like dark stores, dedicated in-house teams for last-mile deliveries and a tech ecosystem required to run such a delivery network. 

For instance, the startup has maximised operational efficiency by using optimal inventory management, efficient order batching and picking, route optimisation and live order tracking. Additionally, its automated communications suite keeps customers informed throughout the delivery process, reducing return-to-origin (RTO) rates and increasing customer satisfaction and net promoter score (NPS).

More importantly, an extended timeframe than the 10-minute rush enables Zippee to control delivery costs, creating a win-win scenario for brands, consumers and the delivery platform.

Currently, Zippee operates dark stores in Tier I cities such as Delhi, Mumbai, Bengaluru, Hyderabad, Pune, Kolkata, Chennai, etc. It caters to D2C brands and marketplaces across FMCG (food and beverage), beauty personal care, petcare, apparel, babycare and more. Notable brands on the platform include Supertails, GIVA, Ultrahuman, Epigamia, Lenskart, Clinikally, Haldiram’s and Two Brothers Organic.  

Zippee promises rapid delivery using q-commerce-style dark stores

 How Zippee Fixes Quick Commerce Pain Points 

Ecommerce players delved into the consumer psyche and leveraged fast delivery to fulfil innate desires for immediate rewards, convenience and a sense of control. 

But with the explosion of quick commerce, fast deliveries need to be relooked with a fresh lens. 

Kasturia says Zippee has a critical gap to fill in this logistics jigsaw. 

To begin with, q-commerce thrives on a hyperlocal model and requires a more nuanced approach to scale. What sells briskly in one neighbourhood might barely move in another, forcing businesses to figure out how each dark store can best service the specific needs and preferences of its nearby markets. 

In contrast, D2C brands tend to impact their entire consumer base instead of minuscule segments and may not require a hyperlocalised product strategy to drive growth.   

Other risky points stem from the rigid 10-minute delivery model and inflexible operational design. 

“While speed is vital to building customer trust and loyalty, quick commerce players often restrict brands to just 2-5 SKUs, a significantly narrower assortment-mix than traditional online marketplaces. Hence, the appeal of 10-minute delivery may not always outweigh the broader category selection & SKU offered by marketplace giants & brands, who’re rolling out rapid deliveries as well,” said Kasturia.

Moreover, brands often lose out on valuable customer data that platforms control, hindering their ability to analyse behaviour, preferences and re-target consumers to offset CAC — something that has been pivotal for the rise of D2C websites in India, he added.

Kasturia said that Zippee has experimented with a frugal yet practical approach to last-mile delivery . “10-minute delivery being a capital-intensive consumer model, addresses different consumption occasions, primarily impulse needs like groceries. If you look at the logistics industry, you will also find numerous courier players in India offering 3-10 day delivery services. But no one has sustainably reduced those delivery TATs (turnaround times) to 3-10 hours with a focus on consumer brands,” he said.     

The pharmaceutical sector is a case in point. “Many pharma products don’t fit into the 10-30 minute emergency use cases. Most e-pharmacy orders today are for routine medicines where same-day delivery can significantly enhance user experience,” said Kasturia. 

Balancing cost optimisation with speed: The Zippee way

Clinikally-Zippee Tie-Up: A Case Study In Optimised Delivery & Cost Efficiency

“Our strategy to focus on a same-day delivery window allows us to cover a broader service area, batch more orders per rider trip and optimise logistics costs. It’s effective,” said Kasturia.

A case in point is the dermatech marketplace Clinikally, set up in 2022 by Arjun Soin. Specialising in personalised skin and hair treatments, the startup struggled with traditional courier services. Its lengthy delivery schedules led to high RTO rates, with nearly 27% of orders being cancelled due to delays. 

It came across Zippee’s same-day delivery services allowing it to improve delivery time for customers looking for prescription-grade medicated products at the earliest. 

This also enhanced customer experience through better visibility into order status. “Our WhatsApp bot  enabled  cash-on-delivery (COD) order verification, real-time delivery tracking, as well as automated NDR management flows to boost Clinikally’s delivery fulfilment rates & reduce support queries,” said Kasturia.

These measures yielded excellent results. Clinikally team saw an 81% reduction in RTOs due to cancellations and incorrectly/mistakenly placed orders, significantly cutting forward logistics costs and streamlining inventory management. According to Kasturia, Zippee’s efficiency led to 92% of COD order fulfilment, with more first time Clinikally customers returning and opting for non-COD payments as their trust in the brand grew.

How ‘Rapid’ Delivery Formats Are Shaping The Future of Ecommerce Logistics

“Today, we don’t hear brands asking: Why same-day delivery?” said Kasturia. “All they want to know is how fast we can do it. This is the biggest mindset shift we have observed across the industry.”

The founder claims that Zippee currently operates on a brand waitlist for same-day delivery & has mapped 1.5K brands in the past two years to identify growth opportunities within the ecommerce landscape. Its research revealed that more than 60% of D2C orders originate from India’s top 10 cities. However, Tier II locations and beyond are rapidly becoming a focal point for many brands.

To cater to this growth, Zippee aims to bring same-day delivery to online shoppers in more than 20 Indian cities by expanding its network of dark stores beyond Tier I. The logistics startup has begun its deep diving into the Bharat market and is initially targeting Jaipur, Chandigarh and Kochi. It has started piloting 2-hour deliveries in select locations across the country.

The Gurugram-based startup has previously raised $3M from multi-billion dollar consumer giant Haldiram’s along with a group of marquee angels such as Kunal Shah (CRED), Ashneer Grover (Bharatpe), Peyush Bansal (Lenskart), Prashant Pitti (easemytrip), Raj Shamani (House of X), Aakash Anand (Bella Vita Organics), Arjun Vaidya (V3 Ventures) to scale its tech infrastructure and dark store footprint across India.

Now, the question is: Will India beyond metros provide an ample market opportunity to new-age logistics startups like Zippee which are facing competition from deep-pocketed ecommerce marketplaces with in-house delivery networks  (Amazon and Flipkart, for instance) and 3PL players  (XpressBees, Delhivery and others)? 

Based on a survey by Invesp, a staggering 80% of urban online shoppers in India desire same-day shipping, with 61% expressing the desire for even faster deliveries, within one-three hours of placing an order.

On the other hand, a recent PwC India report states that 54% of consumers in Tier II, III and IV locations value deals and offers over quick deliveries –  which may be rooted in gaps in purchasing power and differences in consumer psychology between metropolitan areas and smaller cities.

However, aspirational consumers beyond Tier I now expect the same level of services available in metros, where rapid delivery formats of all sorts are increasingly seen as a core component of the e-shopping experience. D2C brands need to adopt a balanced approach when entering these regions. Combining value for money with instant gratification will be essential to reach where the next billion customers are, thus paving the growth path for the likes of Zippee.

The post How Same-Day Delivery Startup Zippee Is Redefining D2C Logistics In Quick Commerce Era appeared first on Inc42 Media.

Road accidents remain a global scourge, claiming countless lives annually and inflicting a devastating impact on economies worldwide. The fight against road accidents transcends boundaries as governments around the world echo the same question: How can we reduce them?

In 2020, the UN proclaimed the ‘Decade of Action for Road Safety,’ targeting a 50% reduction in road traffic deaths and injuries by 2030. In India, the scenario mirrors this global effort, with Nitin Gadkari, the Minister of Road Transport and Highways, emphasising on road safety and aiming to cut accident deaths by half by 2030.

In the backdrop of this, it may sound uncommon for two techies in the U.S. to dedicate themselves to improving global road safety. But despite the lack of precedence, Stanford alumni and former Qualcomm colleagues Avneesh Agrawal and David Julian embarked on this mission.

They incorporated Netradyne Technology in 2015 to build tech that analyses driving behaviour in real-time and reduce driver errors and the risk of accidents through automated coaching.

Its vision-based Driver•i safety camera system uses cutting-edge technologies powered by Artificial Intelligence, Machine Learning, and Edge Computing to create a new safe driving standard for commercial vehicles. With inward and outward high-definition cameras on the same IoT device, Driver•i empowers drivers by providing awareness of risky driving behaviour and rewarding safe driving practices.

It analyses 100% of driving time, detecting any driving behaviour that could lead to an accident. This includes over-speeding, driver drowsiness and fatigue, distracted driving, and tailgating, among others, and coaches drivers in real-time. In addition, to incentivise safe driving, the device recognises positive behaviours and rewards drivers with “driver stars” — a gamification element that builds a positive driver profile.

Netradyne is a global company with operations in India, the U.S., Canada, Mexico, the U.K., Australia, New Zealand and Germany. 

From Gaming Box To Deep Algorithms 

“When we started out in 2015, there was no established provider who could combine AI with video telematics to create a solution that could detect, reason, and determine the causality of events. Netradyne stepped in to fill this gap,” said Agrawal.

Netradyne has pooled over 13 Bn miles of proprietary driving data to develop its state-of-the-art analytics models. This massive dataset is the secret sauce behind its machine learning algorithms, which boast a decision accuracy of up to 99%, according to Julian. More importantly, Netradyne has built its AI system from scratch using this unique data.

“Deep tech and innovation are part of Netradyne’s DNA,” Agrawal continued, noting that both founders have over 300 patents combined. According to NASSCOM’s ‘Patenting Trends in India Edition 2024,’ Netradyne is one of the top patent filers among deeptech startups in India.

However, building a tech startup from the ground up was not easy, and the founders faced their fair share of challenges along the way. With a global vision from the outset, Agrawal and Julian constantly connected across different continents and time zones, working tirelessly to solidify their concept. They invested their own capital, rented office space in both India, where Agrawal worked, and the U.S., where Julian worked, and began building their team – most of whom are still with Netradyne today.

Many of the early employees, including office staff, have stayed with Netradyne over the years and have risen to leadership positions. The startup has inculcated a philosophy of innovation, resilience and a dynamic approach since the beginning, which the founders believe also trickles down to employee values.

A good example of this philosophy is how the small team turned adversity into an opportunity during the development of their dataset. The founders quickly realised they needed custom hardware to truly address driver safety. Building their own would take another year or two, Julian explained.

So, they got resourceful. They purchased a set-top box with an NVIDIA processor and used it to run deep learning algorithms in real-time. “We even got a mobile phone and mounted it on the windshield for LTE connectivity, outward and inward cameras, and accelerometer/gyro sensors,” Julian added. (LTE stands for Long-Term Evolution, a standard that improves internet speed for mobile devices).

“To get everything working, our cloud team set up the cloud infrastructure. This allowed us to use a mobile phone for the camera. Since I have a background in deep learning and wireless communication, we sent the data to the GPU on the set-top box for processing and video storage over WI-FI. Finally, WIFI was used to send the processed data back to the mobile phone and then over LTE back to the cloud,” said Julian.

This strategic approach proved successful. It validated the concept and gave the founders the confidence to scale up. With a functional prototype, the founders initiated demos for potential customers and investors, receiving positive feedback. Today, the platform runs a full-fledged cloud repository for data storage, real-time tracking, driver evaluation, and training.

How Netradyne’s AI Wins Driver Trust

The founders believe this system can significantly benefit driver exoneration in cases where the driver is not at fault. Since the camera captures both the driver’s actions and the vehicle’s movement on the road, it provides irrefutable proof in situations where the driver may be unfairly blamed.

“Commercial vehicles tend to be blamed for road accidents. However, more often than not, they are not at fault. This solution addresses that challenge and provides proof,” said Julian.

Netradyne claims that Driver•i has assessed over 13 Bn miles of driving data (driver behaviour, road and traffic patterns) and is clocking more than 600 Mn miles of data every month globally.

Given that the size of data defines the success of any AI system, the availability of such rich data makes Netradyne’s AI highly accurate and precise. The founders emphasised that this is crucial to minimising the number of false alerts for drivers, ultimately gaining their confidence in the technology.

Today, Netradyne maintains a customer base exceeding 3,000 globally, including prominent entities such as IndianOil Skytanking, GreenLine Mobility, Writer Safeguard, CJ Darcl, First Student and Loomis. This extensive network not only solidifies Netradyne’s global footprint but also reinforces its pivotal role in tackling the critical challenge of road safety on a monumental scale. And much like its SaaS peers, Netradyne charges a monthly subscription for its solution, which includes both hardware and software.

Speaking to Inc42, the founders reported revenue of INR 1,000 Cr ARR as of December 2023 and anticipate a 50% year-on-year growth in the current calendar year.

The company has raised $227 Mn across three funding rounds from investors such as Reliance, M12, SoftBank Vision Fund, and Point72 Venture Investments. These funds are being used to drive R&D, enhance core technology, and enter new markets. 

Driving Success With In-House Talent & Tech Expertise

Netradyne is aiming to revolutionise the world of vehicle safety technology by harnessing the power of in-house talent and cutting-edge technological expertise. With sophisticated test labs in India and the U.S., its hardware design and software development teams collaborate seamlessly across borders, with Bengaluru serving as the hub for innovation.

CEO Agrawal recognises the importance of tapping into the best talent worldwide.

“AI talent is very strong in the U.S., but we are also seeing a rapidly growing crop of tech talent in India,” Agrawal explains. This approach allows Netradyne to assemble a diverse team capable of tackling complex challenges.

“An illustrative example of our system’s impact is a case where a driver’s low GreenZone score prompted their spouse to intervene. The spouse’s insistence on safety improvement led to the driver becoming the fleet’s top performer within a month! This highlights the positive influence families can have in encouraging safe driving habits, especially in a profession fraught with danger,” said Agrawal,

For context, Netradyne’s GreenZone is a driver scoring system that assesses individual driving habits and associated behaviour. It is a data-driven approach that provides a quantifiable score by analysing every second of driving. To enable this, the system utilises computer-vision technologies and AI cameras with inbuilt sensors, gyrometer and accelerometers to collect data on driving habits.

The Road Ahead: Connected Vehicle Safety

According to Mordor Intelligence, the global market size for video telematics device installations is projected to surge from 8.3 Mn units in 2024 to 18.8 Mn by 2029, exhibiting a robust CAGR of 17.9% during this period. 

Moreover, the demand for AI-enabled video analytics is steadily escalating, driven by its myriad benefits such as accident prevention, enhanced driver engagement, instantaneous incident notification, and diminished operational costs.

With human error still a major culprit in road accidents, accounting for nearly 94% according to a ResearchGate report, companies like Netradyne offer a crucial solution. By providing real-time feedback, they empower drivers with vital insights beyond their field of view. This real-time coaching fosters better decision-making and a heightened sense of awareness, ultimately leading to safer roads and fewer accidents.

While the penetration of video telematics in trucks stands at around 10-15% in the U.S. and notably lower in India, Agrawal and Julian remain bullish about its rapid uptake in both of these countries as well as other geographies. The founders have already seen a shift, observing that major fleet owners grasp the paramount importance of road and driver safety, and are thus receptive to embracing Netradyne’s solutions.

Having made significant strides in preempting road accidents, it now sets its sights on entering the ‘prediction’ phase to anticipate potential incidents based on the large set of data that analyses the entire road ecosystem on the edge. To this end, it will leverage a foundational driving model utilising large language models (LLMs) based on its proprietary dataset.

Nonetheless, the market presents its share of challenges. Netradyne contends with competition from established players like Lytx and Samsara in California, alongside few India-based providers. However, the founders believe that their innovation: Highly precise and accurate AI algorithms and in-house end-to-end product capabilities set them apart. 

As a startup navigating the convergence of AI-enabled technological disruptions and an expansive market opportunity, Netradyne finds itself positioned at a critical juncture. While the widespread adoption of self-driving vehicles remains years away, the video telematics landscape is poised to flourish, offering a secure passage for human drivers in the interim.

The post How Netradyne Technology Uses AI In Real Time To Reduce Road Accidents By 50% appeared first on Inc42 Media.

Farming has been one of the oldest and most labour-intensive sectors since ancient hunter-gatherers embraced it as a convenient way of growing and gathering food. Cut to the action today, agritech has emerged as a sunrise sector and modern-day tech has transformed how crops are sown, harvested, stored and sold.  

Agritech in India has witnessed phenomenal growth in recent years, with nearly 2.8K agritech startups recognised by the government’s flagship initiative, Startup India, and hundreds more operating in the country. An analysis by Inc42 further reveals that the sector has attracted $2.4 Bn from prominent global and Indian investors since 2014. 

All this has led to impactful innovations. From data collection and analysis for precision farming to machine-based quality management, waste-free supply chains and online marketplaces, the technology makeover of agriculture is gradually becoming a way of life among Indian farmers.

Although India is home to 125 Mn smallholding farmers and nearly half the population depends on agriculture for their livelihoods, only a few entrepreneurs ventured into this complex and challenging domain in the 2000s, when the startup culture was less prevalent. Mumbai-based StarAgri was a pioneer in this field, as its four founders shared a passion for farming and started working on various aspects of the agri ecosystem as early as 2006.

Eighteen years later, the platform’s niche is providing a comprehensive suite of services, including warehousing, market linkage (via Agribazaar), procurement and exports, collateral management, small-ticket agri loans (via Agriwise Finserv, its NBFC arm), agricultural advisory and more.

The startup also raised INR 350 Cr+ from major investors led by Singapore-based Temasek. 

StarAgri claims it has onboarded and serviced more than 4 Lakh farmers and runs a network of  1,300+ warehouses spanning across 18 states. It has a warehousing capacity of 4.2 Million MT (metric tons)  and manages assets worth INR 16,900 Cr AUM, as per the startup . 

Founder-CEO Amith Agarwal mentioned that the startup turned profitable from the first year of its launch and clocked INR 1,006 Cr in revenue in FY24. Inc42 accessed StarAgri’s profit and loss statement for the year ending 31 March 2024 (FY24) to confirm its profitability. 

It aims to onboard 100 Lakh farmers within the next three years. 

StarAgri’s Smart Warehousing Provides Crop Provenance, Paving The Path For Agri-Financing 

In techno agriculture (smart or precision farming), the focus is primarily on satellite/drone-guided monitoring, data-driven decisions, equipment automation and adaptive sensors/actuators that can turn traditional tools into smart machines. In short, it is a complete digital and technological makeover. 

However, subsistence farming in countries like India has always been an uncertain enterprise, given two major challenges: Lack of financing and the absence of modern warehousing in rural India, which leads to massive spoilage and post-harvest losses. According to industry research, the losses incurred between harvesting and consumption ranged between 3-13% in 2022, and the economy suffered a setback worth INR 1.5 Lakh Cr.    

StarAgri was determined to deal with such losses even in those early days and entered the agribusiness market with groundbreaking warehousing solutions. Its operations started in Rajasthan, and it provided state-of-the-art temperature-controlled storage, real-time stock updates and handling and weighing services.  

This emphasis on traceability throughout the supply chain ensures that commodities remain verifiable collateral, enabling farmers to secure loans from NBFCs. Rigorous inspections by qualified personnel and automated monitoring to track stock movements and conditions underpin this innovative approach.    

The agri startup also launched extensive outreach and awareness programmes. Conducted by its on-ground support team, these sessions educate farmers about modern storage methods and the benefits of using StarAgri services to help protect their produce and maximise their profits.

“Building the infrastructure was our biggest hurdle. We needed to create affordable and relevant physical and digital infrastructure for Indian farmers. This meant constructing scientific storage facilities alongside developing digital platforms for transactions,” said Agarwal.

StarAgri’s initial success in warehousing prompted further expansion and a deep dive into other critical issues like agri loans and market linkages. Eventually, Agarwal relocated to Mumbai in August 2009 to set up headquarters in the country’s economic capital and scale up operations in Maharashtra. 

During this period, the founders became aware of the RBI’s efforts to improve financial inclusion while encouraging banks to lend to farmers. However, the SMF segment (small and marginal farmers) failed to access asset-backed formal loans due to a lack of collateral, loan default caused by frequent crop failures and an unstructured market unable to guarantee fair trade price to ensure operational viability.

To make agri loans more accessible, StarAgri initially partnered with ICICI Bank to enable warehouse receipt financing, which considers stored commodities as collateral. After a certified warehouse like StarAgri inspects produce quality and quantity, a warehouse receipt is issued, which allows farmers to secure loans from banks or other financial institutions. Soon after, the startup expanded its collaborations to include Axis Bank and Punjab National Bank. Today it has tie-ups with over 30 banks and financial institutions including PSU leaders like SBI and private sector banks like HDFC Bank. 

By 2011, StarAgri received accreditation of ISO 17025 for the first lab by NABL, ISO 22000 for Food Safety management system for Warehouse, and ISO 9001 for International Standard for Quality Management system. In another two years, it expanded to 183 locations across seven states, including Rajasthan, Maharashtra, Uttar Pradesh, Madhya Pradesh and Punjab among others.

Early Funding For Expansion: How StarAgri Strived To Build An Equitable Future

“StarAgri was profitable from the outset, but we needed capital to scale operations across states and diversify our product portfolio,” said Agarwal.

Institutional funding was a challenging proposition, though, as venture capital in India was in its nascency in the 2010s. So, the trio took a bold step and invested their own money when they developed warehousing solutions from scratch. 

StarAgri secured $30 Mn (then INR 150 Cr) from Investcorp in 2012, followed by $35 Mn (then INR 200 Cr) from Temasek two years later. This was a substantial amount, considering agritech was a niche and somewhat unattractive segment at the time, and sci-fi-like tech wizardry needed for precision farming was a far cry. 

“Banks were not ideally suited to finance certain customers as the latter lacked documentation or failed to comply with terms and conditions,” explained Agarwal. “Also, farmers mostly required small-ticket loans, sometimes as low as INR 5-7K. Traditional banks are not suitable for raising such small amounts.” 

Recognising the gap, StarAgri launched its NBFC subsidiary, StarAgri Finance, in 2015 to provide tailored financial solutions for the ‘unbanked’ and the ‘underbanked’ farmers. It supports a hybrid environment, enabling online loan processing, while people not familiar with such systems can seek help from the on-ground support team. 

Detailing the impact of this initiative on stakeholders in the agricultural and allied sectors, Agarwal said, “We serve agribusinesses, agricultural trade and rural enterprises through our NBFC. We also offer financial support to milking, cattle rearing, and other perishable rural businesses.”

A Mandi At Farmers’ Fingertips For Selling More, Earning Better 

No agritech firm is complete without an output market linkage that seamlessly connects farmers with retail, wholesale and institutional buyers via an easy-to-use digital interface. 

True to this new-age tech mandate, StarAgri launched Agribazaar in 2016. The digital marketplace is designed to ‘de-mandify’ the agri-business, bypassing traditional supply chains and intermediaries whose hefty margins erode the famers’ (producers’) profits. 

To begin with, any farmer can list their produce directly on the Agribazaar app, which aggregates the demand for each crop and displays the best price. To streamline transactions further, the startup has developed the Agripay wallet, a proprietary checkout solution within Agribazaar, to ensure that farmers receive payments directly from the app, enabling secure and prompt financial transactions. 

StarAgri has also partnered with prominent corporate buyers such as Britannia Industries, Cargill, ITC and Reliance Bazaar and helps with responsible procurement, sales and exports. 

“Also, our online model reduces intermediation costs from the typical 3.25% to a paltry 0.5%. This directly leads to higher profits for farmers,” said Agarwal. The basic intermediation fee covers the cost of running the portal and providing other services. 

Interestingly, homegrown market linkage players emerged in droves after the internet boom of 2015-16. Agarwal said the widespread availability of affordable smartphones and internet access in rural India significantly improved connectivity. “We capitalised on these advancements by developing mobile-friendly platforms for greater convenience. That’s the go-to hardware for India,” he said.

In 2019, StarAgri launched Agribhumi, a farming advisory app offering a host of services such as satellite imaging, cadastral map generation, yield estimates, weather forecast and soil health monitoring.

StarAgri Has Ambitious Plans, But Which Segment Will Maximise Growth? 

With its diversified operations across service segments, StarAgri is confident about its future growth and wants to expand its global footprint in the Middle East and African markets in the next two to three years. This strategic move follows its initial foray into these regions in 2023.

“As one of the few profitable companies in the agritech space, an IPO is a natural next step for us,” said Agarwal. “We also aim to partner with more farmers in India and abroad.”

The agritech sector in India has seen steady growth in recent years and presents a potential of $25 Bn by 2025, according to an Inc42 report. It covers key sub-sectors like market linkage, agri-finance and precision farming. But market linkage is pivotal in improving smallholder farmers’ access to bigger, more lucrative markets and driving their profitability. 

To illustrate, let us take a look at the data. Market linkage is poised to capture about $12 Bn, almost half of the total agritech market, revealing its importance and attraction among investors.

For StarAgri to thrive, it will need to bolster its efforts in this critical and highly competitive segment, as its homegrown peers like WayCool, Arya.ag, FarMart are already leading the way in the market linkage space. These startups are also into agri-financing and crop advisory but primarily dominate the market linkage segment.   

While improved market linkage helps maintain a healthy power balance within the supply chain and reduces post-harvest losses due to better market coordination, StarAgri has stayed ahead of competition in the agri-warehousing space, yet another critical area that requires immediate attention. According to India Infrastructure Research, the country’s agricultural warehousing capacity must increase from 145 Mn tonnes in June 2023 to 223 Mn tonnes by 2026-27 to ensure smooth operations.

Given the way the world is trying to cope with a gargantuan global demand (around 10 Bn to feed sustainably by 2050) and the severe challenges of climate change, agritech may soon become one of the most critical sectors, attracting robust support from private investors and the public sector. And early signs are already emerging right here in India, opening numerous opportunities for StarAgri and its ilk. 

The Indian government’s announcement in July 2024 to set up an INR 750 Cr Category-II Alternative Investment Fund (AIF) for agriculture and allied industries clearly indicates the sector’s growth potential and the promise Indian agritech startups hold.

The post How Temasek-Backed StarAgri Is Applying Tech To Streamline The Agri Value Chain appeared first on Inc42 Media.

Multi-stage venture capital firm Venture Catalysts++ is all set to hold the sixth edition of its programme ‘Angel School’ on August 24-25. The initiative is designed to educate and empower aspiring angel investors by equipping them with the necessary tools and knowledge to make well-informed investment decisions.

According to Inc42’s India Startup Investor Landscape Report, India currently has over 125 angel networks and syndicates. This figure is expected to cross the 200 mark by 2030. Investing in startups, particularly in their early stages, presents a unique opportunity to unlock value that traditional investment avenues like capital markets may not offer. Alternative investments, such as in startups, often mitigate risk and provide pathways for portfolio diversification.

However, many new investors lack the experience needed to effectively evaluate startups, which can result in poor investment decisions and potential losses. The two-day online programme aims to assist HNIs (high-net-worth individuals) in navigating these challenges by learning insider strategies and best practices from leading institutional investors.

The Impact Of Angel School

Founded in 2016 by Dr Apoorva Ranjan Sharma, Anil Jain, Anuj Golechha and Gaurav Jain, Venture Catalysts++ has syndicated $720 Mn across more than 360 portfolio startups. As startup investments gain momentum, the VC firm seeks not only to deliver financial returns to angel investors but also to elevate India’s startup ecosystem. 

Since its inception, Angel School has empowered over 400 investors, providing them with the skills to navigate the complexities of startup investing.

Angel School has featured marquee investors as mentors, including Rajan Anandan, managing director of Peak XV Partners & Surge; and Dr Sharma of VCats++ and Ramakant Sharma, cofounder of Livspace. 

The latest edition of Angel School will cover all essential topics which aspiring investors need to know – an introduction to angel investing, comparing public vs private markets, and the startup lifecycle. Experts will also teach ways to build an investment thesis and understanding deal structuring, valuations, and convertible instruments like C-Notes and SAFE Notes. 

Additionally, the programme will cover key term sheet clauses, taxation, compliance, and strategies for building a startup portfolio. The programme would conclude with a session on exit strategies and liquidation.

Why To Take Up Angel Investing? 

With the country’s startup ecosystem growing by leaps and bounds, angel investing presents an opportunity for wealth creation and supporting young entrepreneurs.

According to Inc42 data, seed investments grew 23% YoY in H1 2024, reaching $589 Mn across 229 deals. This highlights the rapid growth in early-stage investments and the critical role angel investors play in supporting new ideas and innovations, which have the potential to transform industries.

In a significant move for startups and investors, the Union Budget 2024-25, presented by finance minister Nirmala Sitharaman, abolished the angel tax. This was the tax levied on capital raised by unlisted companies when the share value exceeded the fair market value.

Over time, this tax became a challenge for stakeholders, as tax authorities began issuing notices to startups and scrutinising their valuation methods. The move to abolish angel tax is expected to give a further boost to angel investing in the country by improving its appeal among HNIs. 

Amid all these, programmes like Angel School offer a platform for aspiring investors to build a community of like-minded peers and contribute to fueling India’s startup growth story.

The post VCats++ Back With ‘Angel School’ To Equip Investors With Knowledge For Angel Investing appeared first on Inc42 Media.

In the ever-evolving educational landscape, augmented and virtual realities (AR/VR) have transformed how students engage with learning, as these emerging technologies have seamlessly integrated into the academic paradigm.

Graced by the magic of this tech, one can well imagine students taking a deep dive into biology lessons, understanding the intricacies of human anatomy, or getting immersed in history lessons with the help of AR/VR. 

But despite India’s impressive digital penetration, reaching 52% active internet users nationwide, the gap between urban and rural areas is quite persistent. According to media reports, rural internet users are expected to increase from 399 Mn+ in 2022 to 506 Mn+ in 2025, at a CAGR of 26%. While this signifies progress, the edtech revolution, particularly AR/VR applications in education, is still largely confined to urban pockets. Worse still, it remains a futuristic concept far from widespread adoption.

Founded in 2020 by Gaurav Purbia and Vijay Purbia, extended reality (XR) edtech startup Altie Reality offers a range of AR/VR solutions, including digital twin creation, which digitally replicates physical assets into virtual environments. By integrating these technologies into K-12 classrooms across India, Altie Reality aims to boost student engagement and enhance learning experiences, reaching even the remotest of areas. 

LearnXR, Altie Reality’s AI-powered platform, empowers teachers to seamlessly incorporate XR into their classrooms. This tool democratises access to affordable learning experiences. Its app can be installed directly from the Android Play Store .  

The LearnXR app offers a monthly and an annual subscription plan of INR 99 and INR 699, respectively. Moreover, the LearnXR lab model of the startup operates on a franchise model for schools, besides offering bulk licensing for 500 and 1,000 students.

This model enables Altie Reality to expand its presence in various schools without directly managing each location, as the franchisees (schools and educational institutions) handle day-to-day operations. The free version of the platform hosts targeted ads to generate revenue from advertising. It clocked INR 20 Lakh in FY24 and is targeting INR 50 Lakh in FY25. 

Altie Reality’s Journey So Far

Traditional educational methods often fall short by neglecting the power of experiential learning. Recognising this gap, BTech graduates Gaurav and Vijay set out to bridge it in the Rajsamand district, Rajasthan. They leveraged Google’s Cardboard VR (now discontinued) to offer immersive learning experiences to students.

Fueled by the rapid adoption, the duo launched Altie Reality in September 2020. This initiative materialised in the form of LearnXR, a mobile app easily downloadable from the Android app store.

LearnXR offers AR/VR learning modules across various subjects, from history and geography to science and beyond. The app goes a step further, providing ‘immersive field trips’ to iconic locations like the Taj Mahal and even ‘out-of-this-world’ tours to space. Additionally, students can engage with bite-sized AR games through the app.

To guarantee a seamless user experience within the app, LearnXR partners with schools and educational technology companies. This collaboration allows for smooth integration with popular learning management systems (LMS).

Despite the apparent ease, Gaurav acknowledges the challenges faced by a new AR/VR startup, especially one hailing from a Tier II city. Educating potential customers about the advantages of AR/VR in education demanded significant effort.

To bridge this knowledge gap, the founders actively participated in educational workshops and conferences. This direct approach allowed them to showcase LearnXR’s value proposition to educators and decision-makers, ultimately leading to customer acquisition.

Furthermore, the startup adopted a classic SaaS strategy by offering free trials and demos to potential customers, enabling it to nurture long-term relationships.

Hardware Pivot That Fuelled Growth

Though the startup initially focussed only on creating educational content for AR/VR through its LearnXR app, it gradually identified the need for more immersive learning tools. The pivot from a service-focussed platform to a holistic AR & VR service provider meant it had to develop comprehensive XR hardware.

To address this need and create a more holistic AR & VR experience, iStart Rajasthan provided crucial incubation support during the ideation and prototype stages.

iStart Rajasthan’s support, along with ideation and viability grants worth INR 6 Lakh, allowed the startup to develop proprietary technologies. Besides, iStart Rajasthan also provided it with networking opportunities, said Gaurav. 

“This pivot was driven by feedback from educational institutions and market trends indicating a demand for comprehensive XR tools that improve learning outcomes,” he added. 

Altie Reality offers a learning app called LearnXR, which can be easily installed from the Android Play Store. Additionally, it is developing AR/VR hardware, an advanced Extended Reality (XR) tool designed to facilitate intuitive and interactive engagement with AR/VR objects.

According to the founders, it has widespread application in education, healthcare, real estate and manufacturing sectors. For instance, students can enhance their understanding of complex concepts by interacting with 3D models in virtual classrooms and surgeons can improve their skills and precision by simulating and practising surgeries on virtual patients. 

Gaurav said that the XR hardware prototype  is being supported by Nidhi Prayas (an initiative by the Department of Science and Technology, Government of India), and its patent process has been initiated with assistance from the Sardar Patel Technology Business Incubator (SPTBI) in Mumbai.

Is There A Brighter Future For Indian Education?

The global AR and VR in education market size was valued at $3.8 Bn in 2023 and is projected to reach $14.2 Bn by 2028, growing at a CAGR of 29.6%. 

It is reported that with the ongoing implementation of the National Education Policy (2020), 50% of Indian classrooms will adopt AR/VR in the next three years. VR hardware is also expected to become cheaper and more affordable during this timeframe. Startups such as Altie Reality, ClassVR,  Umety are riding on this growth.

However, adequate infrastructure plays a crucial role here. High-quality AR and VR experiences often rely on a high-speed internet connection to stream content, access online resources and enable real-time collaboration. Educators and students may also need technical assistance to understand the functionalities of AR and VR software, set up devices and troubleshoot them if issues arise. 

Currently, Altie Reality has a daily active users/monthly active users (DAU/MAU) ratio of 20%, for its 56K initials of LearnXR app. By enhancing the user experience and the content, Altie Reality wants to boost average engagement from 9 to 15 minutes. It also aims for a completion rate of 70% for courses started by users, indicating high content engagement and relevance.

In the short term, it is working on refining the LearnXR Meta Quest app. Post signing an MoU with the state education department of Rajasthan, the startup is also eyeing the implementation of the LearnXR Labs  in government-run schools in Rajasthan.

The post How Jaipur Based Altie Reality Is Reimagining K-12 Education With AR/VR Solutions appeared first on Inc42 Media.

The adoption of technology across the various sub-sectors of the financial industry, including payments and lending, has transformed financial services in India. This shift is primarily attributed to the emergence of fintech platforms and the digitisation efforts undertaken by traditional banks and financial institutions (FIs). 

The rapid adoption of technology by the financial services industry has resulted in a revolution that has enhanced financial literacy and financial freedom among Indians. 

To delve into how fintech is reshaping daily financial activities and explore the impact of emerging technologies on the way Indians transact, invest and more, Money Expo India is set to host its third edition on August 17-18 at the Jio World Convention Centre in Mumbai. This year’s expo claims to be the largest of its kind, attracting over 15,000 attendees and more than 120 companies from around the globe.

Money Expo India aims to position Asia as a hub for growth and innovation. It will feature 80+ industry experts and luminaries, including Tirthankar Patnaik, chief economist at the National Stock Exchange; Kunal Nandwani, cofounder and CEO of uTrade Solutions; Sandeep Bhardwaj, chief operating and digital officer at HDFC Securities; Xelene Aguiar, CEO at OmniEx; and Raj Kapoor, founder of the India Blockchain Alliance. Besides, leaders from companies like 5Paisa, Dhan, ICICI Securities and FYERS will also be present at the event.

The expo will provide brands in payment, lending, wealthtech, insurtech, regtech and other sectors an opportunity to showcase their offerings over the two-day exhibition.

Core Themes At Money Expo India

From AI and ML to embedded finance and from regulatory frameworks to financial inclusion, the next phase of financial services in India will present significant growth opportunities as well as challenges. 

To address these, Money Expo India will feature sessions on critical themes, such as broking-as-a-service (BAAS), growth in Indian stock markets, and simplifying algo trading.

Attendees can also explore trending topics like sustainability and India’s path towards a cleaner future, including the financial aspects of this industry. Investors will benefit from sessions led by well-known figures in the financial sector on topics like creating a winning portfolio and wealth management.

Forging Connections Among Industry Stakeholders

In addition to serving as a knowledge hub for India’s financial sector, Money Expo India aims to facilitate networking among industry stakeholders from across the country and beyond. It aims to provide a valuable opportunity for visitors, including key government officials, financial institutions, banking professionals, investors and CXOs, to connect, collaborate and stay updated with the latest industry developments and future trends.

Vikrant Dale, national business head at investment tech platform Bigul, emphasised the value of networking, saying, “Money Expo is a great platform for engaging with customers from related fields who have queries, making it an excellent opportunity for us.”

According to an Inc42 report, India’s fintech market is projected to reach $2.1 Tn by 2030, growing at a CAGR of 18%. With 25 unicorns, the sector is poised to revolutionise the financial services industry.

By 2025, the country is expected to have over 900 Mn active internet users, with 56% of new users coming from rural areas. The rural segment is anticipated to drive the next phase of the growth of fintech by embracing technology, thereby making financial services more accessible. Thus, stakeholders in the sector must stay informed about trends and insights to seize emerging opportunities.

The post Money Expo India To Decode The Future Of Fintech appeared first on Inc42 Media.

In a connected world, smart mobility is critical for road safety, operational efficiency and productivity growth. Fully autonomous vehicles with zero human interventions are no doubt the future of mobility. But for now, the automotive dialogue revolves around integrated communications technologies powered by AI/ML-based sensor devices, and energy efficiency for a sustainable future. 

Capturing real-time data on traffic, road conditions and driver’s behaviour through multiple cameras, quickly analysing the same to understand if all is well and promptly conveying it through tech alerts to truckers on the road is a smart system called ADAS (advanced driver assistance system), which is rapidly gaining traction. Set up in Bengaluru in 2015 by Avneesh Agrawal and David Julian, Netradyne is doing just that to bring down road accidents.

“We use IoT devices with multiple cameras [both road-facing and driver-facing] to track what’s happening on the ground. The data collected goes to cloud storage, where our patented algorithms and edge computing analyse it, and alarms are immediately raised [through a beep or audio]. These are industry-proven safety solutions for drivers and fleets, and we are keen to set up a new safe-driving standard for commercial vehicles,” explained Agrawal in a one-to-one interaction with Inc42.

Netradyne’s flagship product called Driver•i also extracts actionable insights from the data pulled and coaches truckers to improve their driving. This, in turn, reduces the number of accidents by 40-50%. 

If Netradyne has a humane mission – media reports say as many as 19 people die hourly in road accidents across India – one cannot undermine its economic impact, either. The financial burden of road accidents is often devastating, costing most countries 3-5% of their GDP.  

A Legacy Of Innovation & An AI-Driven Product For Ultimate Road Safety 

“Globally, the deeptech ecosystem is fairly mature, and the US has taken the lead. We also operate from San Diego, essentially propagating that strong legacy. Our company is a proud contributor at every stage. On the other hand, India is critical for Netradyne’s R&D play. All our devices are manufactured here,” said Agrawal. 

Besides India and the US, the startup operates in six more countries, including the UK, Germany, Canada, Mexico, Australia and New Zealand, and employs 800+ people globally. Additionally, it is exploring GenAI to enhance its products, as this new technology segment holds immense potential for R&D and on-road safety. 

For instance, Netradyne will increase its training ability by leveraging cutting-edge tech. Although the startup analyses 600Mn miles of driving data every month, the founder-CEO now aims to invest heavily in R&D and amp up its GenAI usage to detect accident risks accurately.

“We are building a model to predict what every agent on the road will do in the next few seconds. We can predict with interesting and uncanny accuracy how pedestrians will move. Once you start making such predictions, it’s no longer a leap of faith to surmise that we can design our algorithms to be extremely safe and guide the drivers,” he explained.

India Has Got Talent, So Netradyne Is Building In India For The World

Agrawal is also enthusiastic about India’s diverse talent pool. “I believe that the Indian ecosystem is adding up and maturing. A significant part of our complex value chain, including the design, hardware, AI and cloud computing, has been developed and manufactured in India for the rest of the world,” he added. 

Agrawal says the biggest transformation in deeptech is that smart people nowadays are more inclined to work in startups. This creates a deeptech ecosystem that fosters raw talent and innovation, leading to a dynamic and competitive tech landscape where companies are constantly innovating and evolving. 

Netradyne, too, plans to nurture talent by ensuring that its employees have access to cutting-edge technology and value-added resources. This will strengthen its position as a leading startup and contribute significantly to the growth of technology in India and beyond. 

To explore how Netradyne is powering next-gen smart mobility, watch this discussion with Avneesh Agrawal.

The post Putting India On The Deeptech Map: How Netradyne Technology Is Powering Next-Gen Smart Mobility appeared first on Inc42 Media.

Traditional AI/ML has been out there for years, promising mindblowing tech transformation across industries. But the whirlwind of innovations required more speed and depth and fewer technicalities for enterprise users. That did not happen at scale until GenAI (read the OpenAI ecosystem) made a global foray in 2022 and spread rapidly across economies and industries. 

GenAI adoption by startups and big enterprises is apparent. The country’s booming startup ecosystem is also in a strong position to harness its advantage as India is now home to 100+ native GenAI startups, with more than $600 Mn of funding since 2019.

In spite of these impressive estimates and worldwide hype, GenAI may not be growing as rapidly as we assume. Along with opportunities have come many paradoxes regarding implementation, deployment, data security and regulation/compliance. To decode all of this, Inc42 partnered with Google Cloud to organise the second edition of The Tech Horizon for a better understanding of the new frontier. 

Held in Delhi on June 26, the day-long event was split into three sessions and kicked off with a roundtable titled Elevating Customer Experiences Through AI and Cloud-Driven Analytics. The event featured 30+ C-suiters as attendees who delved deep into AI-GenAI and cloud solutions.

The roundtable was followed by an intriguing fireside chat between InsuranceDekho’s cofounder and CTO, Ish Babbar, and Google Cloud’s sales lead, Dilip Mukkavalli. The chat provided insights into how startups can strategically use AI to scale businesses and amplify customer acquisition.  

Finally, there was a knowledge session on How Startups Can Build Faster and More Scalable AI Solutions with Google’s Vertex AI. Similar to the first edition of The Tech Horizon hosted in Bengaluru in May, all attendees had the opportunity to network and collaborate on critical aspects such as GenAI’s value propositions, adoption, use cases and concerns.

Among the key participants of The Tech Horizon II were:

• Sairam Mushyam, VP of data science & analytics, Zupee
• Ankit Sinha, cofounder and CTO, Tagbin
• Vijaykumar Ramakrishna, CTO, Clix Capital
• Vikram Gupta, founder and CEO, Awiros
• Rahul Tyagi, cofounder of Safe Security
• Himanshu Gupta, cofounder, QuickReply.ai
• Ashish Airon, founder, CogniTensor
• Ajay Kadyan, cofounder, Zimyo
• Rayavarapu Narasimha Viswanadh, entrepreneur in residence, Lohum
• Vishal Sharma, CEO of Nuvoretail
• Anirudh Bharadwaj, CTO, Recur Club
• Ashish Arora, customer engineer, Google Cloud India                     

In Pursuit Of Value: How Startups Are Implementing Excellence Via AI-GenAI, Cloud Solutions

From gaming to policy room: Moderated by OfBusiness cofounder and CBO Nitin Jain, the roundtable started on a high note as Zupee’s Sairam Mushyam unveiled how AI decodes customer behaviour, requirements and interactions to deliver personalised experiences on the casual gaming platform. According to him, developing advanced features, especially a gamer’s persona/preferred environment, and helping build their [gaming] skills are complex tasks and require different ML models to ensure a high mix of AI analytics and creativity. 

On the other hand, Tagbin uses AI, VR and other tech stacks to create immersive digital worlds in physical space. These include experiential on-premises museums and LLM-based, prompt-engineered 3D models of cultural and political leaders intuitively interacting with and responding to visitors’ queries.   

Tagbin’s Ankit Sinha detailed another use case called the strategy room. “If a state has developed best practices in an area and another state wants to adopt those, AI can do a feasibility study and identify the requirements for successful implementation,” he said.            

The fintech playbook: Fintechs like Clix Capital and Recur Club have integrated business learning with AI/ML for fast and risk-free credit underwriting. Also, Clix has moved its entire business to the cloud. “Overall, our turnaround time [TAT] has improved by 60% and IT costs are down 33% due to AI and cloud adoption,” said CTO Vijaykumar Ramakrishna.    

Video intelligence for automating ops: The video AI platform Awiros uses deep learning-based CNNs and other core techs to process videos at scale and automate ops through video intelligence. 

“Our deployments are running across cameras in European warehouses and automating the operations. Instead of scanning and looking up where a parcel has to go, you can use a camera to know how many packages are unloaded, track which forklift has picked up which packet and get instructions about where the packet should be placed. This is a kind of in-process automation that significantly improves customer experience,” said founder and CEO Vikram Gupta.  

Cloud security and sustainability: Given the large file sizes, Awiros uses hybrid technologies to process videos on and off the cloud ecosystem. This led us to the next critical question: How safe is the cloud in this era of hackers?    

Rahul Tyagi of Safe Security detailed the startup’s key focus areas: Assessing the probability of a data breach, fixing and patching in case of a breach and auto-calculating the insurance cover to meet cybersecurity costs. The startup also uses a GenAI layer for easy communication to keep senior leadership in the loop.

The conversation then shifted to AI and environmental sustainability. Ashish Airon, of CogniTensor, explained how the startup uses AI agents to help brands go green. The platform has developed Sustain 3P, which measures emissions for companies big and small, provides a thorough comprehension of global compliance standards and generates reports for clients

Lohum’s EIR Rayavarapu Narasimha Viswanadh discussed how AI is used to measure EV battery capacity, raise security alerts and estimate whether these EV cells can be recycled for further use in other industry segments. Also, sudden power cuts tend to harm the infrastructure, and optimisation algorithms are needed to control energy resources.

Among other businesses present at the round table were martech platform Quickreply, HRtech startup Zimyo and ecommerce solution provider NuvoRetail.

How InsuranceDekho’s AI Leap Can Help Bridge The Chasm  

The following fireside chat saw Ish Babbar of InsuranceDekho, Dilip Mukkavalli of Google Cloud and Jain of OfBusiness engage in a lively conversation to give the audience a glimpse into the startup’s business intelligence and forward-looking technology approach. Babbar set up the insurance marketplace in 2016, which currently features more than 45 insurers and 600+ policies covering every aspect (life, health, auto and more). It targets Tier II-IV cities and works with 1.5 Lakh agent partners. 

The founder cited the abject online penetration of insurance in India – around 4% – and the ambitious goal of getting every Indian insured by 2047, emphasising that the situation might improve if one could buy the right product every time. “Insurance, in itself, is a promise. You won’t know whether you have purchased the right thing until you require it. And the service part is most crucial. There won’t be much policy value until a buyer is serviced,” he observed.

The lack of customer awareness and inadequate tech support also hinder the non-metro customer base. People from Tier II and III still value personal hand-holding but also like the numerous options available on an insurtech platform.

“Now, suppose one is looking for a health plan for a 36-year-old with diabetes and residing at a specific location. If you can solve that and recommend three or four plans, the customer will return and close the deal. All this is doable without GenAI, but it takes time and manual intervention. With AI, it will take only a second, and that can be a game changer,” he added. 

Also, getting people to interact differently is the beginning of endless opportunities. The AI layer was only at the backend, but now, it is at the front end to enable smooth communications with virtual assistants. So, the way we buy air tickets may change two years from now. We may use a voice bot instead of culling data through filters.

The only glitch could be the cost, but Mukkavalli disagreed. “Tech is an investment, not a cost. When discussing use cases, we only consider external things, such as customer-facing ones. But what about internal processes, team productivity and profitability balance?”

Advantages Of Vertex AI

The event ended with a knowledge session hosted by Ashish Arora, AI specialist and customer engineer at Google Cloud. As expected, he led the audience to the exciting world of open-source GenAI tools and technologies, revealing the latest from three standout models – Google’s Vertex AI, Meta’s Llama and Mistral AI.

“We have all witnessed the dominance of predictive AI,” Arora said. “But the past six months have seen a remarkable shift towards generative applications. We are now delving into chatbots, vector-based searches, semantic understanding and natural language processing that generates SQL queries based on user intent,” he added.  

He also explained that Vertex AI would remain committed to realising GenAI’s potential in real-world scenarios. For context, the Vertex AI programme helps users train and deploy AI applications and customises LLMs for integration with AI solutions.

Elaborating on Vertex AI, Arora emphasised that the platform would go beyond simple content generation. Instead, startups can create intelligent agents capable of generating natural interactions. He would further focus on developing API-based conversational chatbots and unified search experiences.

“The beauty lies in the fact that you don’t need to be an algorithm or ML wizard to use these functionalities,” he beamed. 

The Tech Horizon II served as a powerhouse for discussions around the pressing need to embrace AI solutions and their transformative use cases. This sentiment also aligns well with industry trends. A 2023 NASSCOM report on Indian tech startups also stated that 70% of founders planned to integrate AI into their solutions, with GenAI as a catalyst for this adoption. 

As tech companies abroad continue to plough billions of dollars in AI applications and the Wall Street is bankrolling the frenzy, the vision of a GenAI-powered technology era is rapidly rising. Goldman Sachs seems sceptical, though, and the big question is: After the dotcom bubble bust, has the ‘next big what’ finally arrived?  

Catch a glimpse of the the action-packed day at The Tech Horizon, Delhi Edition!

The post 30+ Tech Leaders Convene To Share Insights On How GenAI Is Reshaping Startups & Industries appeared first on Inc42 Media.

There was much euphoria when smart classrooms made a foray into India two decades ago. For this was the first time in the country’s history, millions of K-12 students from every social stratum could access a modernised method of learning through smart boards, instead of chalkboards. 

Fast forward to the Covid-19 pandemic, lockdowns compelled 298 Mn school students to miss their classes for nearly 82 weeks, according to UNESCO data. But despite digital advancements, screens were not everywhere to help students learn online. Only 17% had access to laptops, 4% used tablets and 79% used smartphones as their primary learning device, according to a report by VidyaSaarathi, a scholarship management portal promoted by the NSDL e-Governance.

Chitranshu Mahant and Aman Verma, roommates at IIT-Delhi while doing their engineering, used to volunteer for the National Social Scheme (NSS) and teach underprivileged students. Even before the Covid-19 outbreak, they were aware of the potential of e-learning and how the country’s digital divide could increase the number of school dropouts.

Recognising the potential of computing devices for education, the duo founded Primebook in 2018 to develop the right technology for digital learning. They launched PrimeOS, an Android OS for PCs, to make a laptop that efficiently serves students’ needs. Since India’s online education system is ‘Android-first’, an Android-based OS was essential for building a laptop that provides access to all Android apps.

The copyrighted OS was initially deployed to edtech platforms trying to collect feedback on its functionality, especially during the pandemic. After extensive research and discussions with students and teachers, they identified that students need laptop productivity, value for money, android apps and internet connectivity to enhance their digital learning experience.

So they launched Primebook as a made-in-India, cost-effective laptop brand suitable for students and learners for all ages and light users of laptops. The duo zeroed in on a super-portable laptop ideal for hours-long learning, doing assignments and writing online tests; a spacious keypad and trackpad — all built on top of the startup’s proprietary PrimeOS. 

This combination lets users access regular Android apps via the laptop and run multiple apps simultaneously like a regular computer. It also features a built-in 4G SIM slot for users to stay connected using their existing mobile data plans. Additionally, there is a built-in app store to download and manage Android apps, much like the Google Play Store. 

The brand currently offers four models with varying specifications, priced between INR 11,000 and INR 16,990. It also offers a mobile device management (MDM) solution that enhances parental control, empowering children with a safe browsing experience.

Between June 2023 and June 2024, Primebook’s Mahant said that it sold more than 35K laptops through its website and major online marketplaces like Amazon and Flipkart. It has also partnered with prominent NGOs and edtech platforms to distribute Primebooks among economically vulnerable students.

Primebook raised INR 8.5 Cr in equity and INR 8 Cr in debt from a clutch of investors, including INR 75 Lakh from Shark Tank India (Season 2), among other fundraising initiatives. The exposure boosted its brand visibility and led to a surge in sales. 

“By December 2023, we captured a 3% market share in the under-$250 category with an average customer rating of 4.3 out of 5 based on 10K+ reviews on ecommerce marketplaces,” said Mahant.

The startup claims to have turned profitable in FY24, with a 10x YoY revenue growth at INR 50 Cr. It aims to triple its revenue to INR 150 Cr in the current financial year, launch upgraded models with larger screens and expand to the African and Southeast Asian markets in the next two to three years.

How Primebook Countered Challenges Galore To Make In India, For India

India’s experimentation with premium yet affordable personal hardware is far from over, although the country has spent a considerable amount on R&D, inspired by the MIT-powered OLPC (one laptop per child) programme. 

But when buying laptops, however inexpensive, average Indian consumers still trust established brands like HP, Lenovo or Dell, which have secured a firm foothold in the ‘affordable’ segment. In fact, a 2023 survey on laptop ownership in India revealed that 33.2% of users owned HP devices, followed by Dell (23.1%) and Lenovo (14.7%).

Aware of the customer bias, the founders have gone beyond pricing and pushed a utility-rich, smoothly functioning PC interface running on PrimeOS that grants access to the vast Android library, which houses more than 50K+ apps.  

“Online education in our country thrives on Android apps, and the content is primarily perused on handhelds [smartphones, phablets, and tablets]. However, laptops offer a superior learning experience due to improved UI. Therefore, we ensure seamless compatibility between all existing Android apps and a user-friendly laptop interface,” explained Mahant.

Its R&D team focusses on two major areas — hardware innovation to ensure better performance, longer durability and greater energy efficiency, and improving PrimeOS to optimise it for a smooth learning experience. The startup has already implemented diagnostic tools and QC benchmarking software for constant evaluation and upgrade.

Primebook has partnered with three manufacturing experts in Delhi NCR, Manesar (Haryana) and Pollachi (Tamil Nadu) to build devices that are ready to be connected and played.

The startup has also incorporated the latest Google AOSP security patches – updates released by the tech giant to fix vulnerabilities in the Android Open Source Project, essentially the foundation of the Android OS. It also ensures stringent student safety via MDM and parental controls.   

On the brand-building front, as a new kid on the block, Primebook also struggled with the visibility factor until it appeared on Shark Tank, narrating its entrepreneurial journey and bagging funds from Aman Gupta of boAT. 

“Our appearance there was a major milestone in our brand-building journey. Since then, we have seen a 100x increase in business growth, including sales, brand awareness and business partnerships,” said Mahant.

Primebook raised funding as early as 2018 (its launch year) from Venture Catalysts++, India’s first multi-stage venture capital firm. Mahant said the capital was crucial for Primebook, as it helped weather the financial challenges during the pandemic. VCats++ also provided extensive networking opportunities, enabling the hardware startup to connect with edtech platforms and grow its business. In addition, the VC firm took part in Primebook’s recent bridge round in August 2023.

Is Primebook’s Success Story A One-Off Narrative?

True to its vision of bridging the digital divide, 50% of Primebook’s revenue currently rolls in from Tier II (35%) and III (15%) locations. Interestingly, Patna, the capital of Bihar but still a Tier II city, is No. 2 on its sales list. Meanwhile, New Delhi tops that list. 

“Our mission is to deliver the right technology to students and learners worldwide, ensuring no one is left behind in the digital education race,” said Mahant. “We are also developing an AI layer for PrimeOS to provide adaptive learning tools, personalised recommendations and intelligent tutoring.”

Globally, the educational PC market (laptops, desktops and tablets) is estimated to reach $44.2 Bn by 2032, growing at a CAGR of 10.8% from $17.6 Bn in 2023. Although schools are no longer operating virtually, the demand for laptops is projected to go up in India, with the revenue forecast indicating $12.8 Bn by 2028, up from $7.6 Bn in 2021, a CAGR of 7.7% for the estimated period.

A host of homegrown players such as Primebook, JioBook and AXL, can leverage this market growth if they can improve specification limits and enhance performance in spite of the price constraints. For instance, the Primebook 4G, priced at around INR 15K, has limited RAM (4 GB) and cannot handle complex multi-tasking beyond routine browsing, document editing and media consumption. 

However, domestic brands enjoy a distinct advantage: They have a thorough understanding of the country’s education market and students’ requirements. For them, growth hinges on finding the convergence of affordability, functionality and advanced tech (not necessarily expensive, given the rise of standard tech stacks) to keep the e-learning ecosystem running smoothly. 

Screens are everywhere nowadays. But the buck may stop with Primebook and its ilk if digital devices have to help students and the youth learn in this tech-first era.

The post How Primebook Raked In INR 50 Cr Revenue In FY24 By Selling Affordable Laptops For Learners appeared first on Inc42 Media.

The Rajasthan government, in the state’s Budget for 2024-25, announced a range of youth-centric policies and initiatives aimed at upskilling the youth, offering job opportunities and supporting a vibrant environment for entrepreneurship in the state. 

The Budget aligns with the state’s ongoing efforts to foster entrepreneurship and introduces several policies that complement the iStart initiative — Rajasthan’s flagship programme launched in 2017 to support startups through funding, mentoring and incubation. To date, iStart has supported over 4,600 startups, provided INR 901 Cr in funding and created more than 32K jobs.

A key highlight of the Budget is the launch of the Atal Entrepreneurship Programme, aimed at empowering aspiring entrepreneurs by providing valuable mentorship from successful CXOs and offering access to funding opportunities of up to INR 10 Cr through the iStart Fund. It also proposes a dedicated INR 100 Cr ‘Fund of Funds’ to offer financial assistance to startups through equity funding. 

Further, to simplify government procurement, the Budget allocates a corpus fund of INR 25 Cr under the iStart Fund. This initiative is already showing positive results on the e-bazaar, according to a state government representative. As of today, 371 startups have registered as iStart sellers, leading to 72 work orders with an estimated total cost of INR 11.85 Cr. Additionally, the option of directly assigning work to startups through subcontracting will be provided, the Budget read. 

The state government seeks to give youth a positive push by placing them at the forefront of all initiatives. Further, the state representative noted these youth-centric initiatives have been catalysed by Rajvardhan Rathore, the state minister of information technology & communications.

Fostering A Culture Of Innovation

To nurture young talent in cutting-edge technologies, the government has announced plans to establish Atal Innovation Studios and Accelerators in key cities such as Jaipur, Bharatpur, Bikaner and Udaipur. These centres will focus on sectors like coding, robotics and VFX. To support this initiative, the government has allocated INR 1,000 Cr to foster a vibrant innovation ecosystem.

Further, the government has also announced the Agriculture Accelerator Mission to empower and support startups in the agritech sector — a sunrise sector in India’s startup ecosystem. Additionally, the budget unveiled the launch of the AVGC-XR Policy (Animation, Visual Effects,Gaming, Comics-Extended Reality Policy) to incentivise innovation and create approximately 50,000 jobs in the creative and technology sectors over the next five years.

Recognising the immense potential for innovation among the state’s youth, but acknowledging the need to bridge the gap in startup knowledge, the Budget introduces the Learn, Earn & Progress Programme (LEAP) within iStart to enhance the skills of both startup founders and aspiring young individuals. An allocation of INR 25 Cr has been proposed for this endeavour.

Education, Skilling & Job Opportunities

With a focus on driving innovation and entrepreneurship, the government announced the launch of the ‘Business Innovation Programme’ for schools and colleges to equip students with valuable business acumen and nurture an entrepreneurial mindset from a young age. The programme is expected to benefit over 1 Lakh students and a corpus of INR 20 Cr has been allocated for this.

To further guide career paths, the state government will implement apprenticeship/internship programs and utilise AI-based career counselling — a step towards merging technology with real-world application.

The Budget announcements are in line with Rajasthan’s focus on promoting innovation and skill development. Beyond its rich cultural heritage, Rajasthan has established itself as a state where education and entrepreneurship have become focus areas to enable economic growth. 

In January 2024, Rajasthan earned recognition as a ‘top-performing state’ in the DPIIT’s ‘States’ Startup Ranking 2022’. 

As per an Inc42 report, there are over 3,700 DPIIT-registered startups in the state and over 45 accelerators and incubators. The new Budget, with its focus on technology and innovation, is all set to further provide a push to the entrepreneurial landscape of the state.

The post From AVGC Policy To Skilling: Rajasthan Budget 2024 Doubles Down Focus On Youth, Startups appeared first on Inc42 Media.

The healthcare sector in India has taken significant strides in the past two decades. The country boasts 1.34 doctors per 1,000 people, past the WHO recommendation. The homegrown healthcare market has reached around $372 Bn and is growing at a CAGR of 22%, while the global market is worth $10 Tn. Despite the huge growth, surgery is less expensive at home, around one-tenth of what it costs in the US or Western Europe.

These numbers are important, but some ground realities in the Indian healthcare sector are equally so. Consider this: A 2019 EY survey revealed that 61% of patients felt hospitals did not prioritise their best interests. Those surveyed cited poor hospital responsiveness, long wait times and a disregard for patient feedback. In essence, local healthcare services are still fraught with challenges. But new-age Indian startups are increasingly making forays into this space to address the obvious and the not-so-obvious healthcare issues.   

Pristyn Care, a healthtech unicorn launched in 2018, aims to address issues related to patient care. Founded by the husband-wife duo Dr Vaibhav Kapoor and Dr Garima Sawhney, along with their friend Harsimarbir Singh, the company enables elective surgery (non-emergency procedures) through its network of 300+ partner hospitals.

“Vaibhav and I had set up practices at the time and experienced patient problems firsthand. Harsh [Harsimarbir], too, had a close encounter as his mother had to undergo surgery,” said Dr Sawhney, explaining what motivated the founders to address this gap.

Inc42 spoke to Dr Sawhney to understand how Pristyn Care enhances patient experience, the role of AI in improving patient engagement and how her journey as a doctor has shaped the startup’s core philosophy. Here are the edited excerpts from the interview.

Inc42: What motivated you to launch Pristyn Care? Were you moved by patient pain points? 

Dr Garima Sawhney: As a doctor, I have had a 360-degree view of the healthcare system. I practised at several hospitals and experienced their strengths and weaknesses firsthand. These experiences became a wellspring of knowledge for me.

During that period, the patient’s perspective became quite evident. For instance, long waits for doctors’ appointments and surgeries across government hospitals were a constant cause of frustration. Similarly, transparency could be a big challenge.

When I started my practice, it allowed me to connect with patients directly. I noticed that they craved more time with their doctors. They needed easy access and clear communication. A diagnosis and treatment plan were often handed over without delving deep into what would happen during and after treatment.

It was not an ideal situation. So, Vaibhav, Harsh and I brainstormed solutions to improve the healthcare experience. We recognised a significant gap in the system, wanted to build trust among patients and ensure a smooth surgical experience. That’s how Pristyn Care was born. 

Inc42: As a medical professional, you have a thorough understanding of patient requirements. Did that help you usher in the successful patient-centricity at Pristyn Care?  

Dr Garima Sawhney: I have always tried to see things from a patient’s perspective. Surgery is rarely a pleasant experience, and it can be incredibly stressful for patients and their families.

At Pristyn Care, we recognise their emotional state. Our patient care coordinator team is the first point of contact, and they undergo extensive training for 30 to 40 days to communicate effectively with patients. While speaking to them, the coordinators gather detailed information about their medical conditions, symptoms and needs. This creates a sense of trust and comfort, as patients know they can soon visit a doctor at a clinic close to their place.

The entire procedure is well-planned and detail-oriented. During the one-to-one consultation, the doctor examines the patient, listens carefully and explains the diagnosis and treatment options. If surgery is required, Pristyn Care manages the insurance process and our patients don’t have to navigate complex insurance websites or visit different hospitals for insurance approvals. Our coordinators handle all formalities on behalf of our patients and connect them with the most suitable partner hospitals.

Inc42: What’s done next?

Dr Garima Sawhney: Unlike traditional hospital booking, we arrange a week’s stay in advance, doing away with the additional stress of finding a room on arrival. More importantly, we have established partnerships with these hospitals for the highest quality care throughout the surgery.

Post-surgery, our team monitors everything related to patient care so that families do not face delays and uncertainties. We clearly communicate discharge processes and update status at all times.

Since its launch, Pristyn Care’s net promoter score (NPS) has never dipped below 68% and it is currently around 72%. However, we constantly strive to improve the patient experience.

Inc42: Hospital experience is bound to impact a patient’s well-being. What do you do to ensure the best possible outcomes?

Dr Garima Sawhney: I often cite this example to explain what happens when we perform surgery: We have to transfer patients from a waiting room to an operating theatre (OT). But OTs are not the kind of theatres where movies are featured. Surgery is a necessary procedure, but no one enjoys it. 

In healthcare, we operate within a specialised surgical ecosystem, and ensuring the highest patient safety level is paramount. The hospitals where our patients are treated must adhere to the highest safety standards, as we prioritise patient safety during every surgical procedure.

We have set up a dedicated 20-member team to assess the quality of hospitals where our patients are treated. Their role is crucial as they make sure that each hospital is fully equipped, has all necessary licences and fully complies with all regulations. Plus, all essential equipment must be in place to perform surgeries safely. The comfort between the doctor and the patient is also crucial for a successful outcome. Only hospitals that meet our stringent criteria are approved to partner with Pristyn Care.

Inc42: How does Pristyn Care build patient trust? 

Dr Garima Sawhney: Absolutely! When we built this company on the understanding that undergoing surgery is a critical decision. Patients don’t simply book appointments, meet doctors and schedule procedures. They need reassurance and we are building that confidence among patients. 

Understanding a patient’s requirements is crucial for any healthcare provider. By knowing their fears and expectations, you can take steps to gain their trust and guide them through the entire process. In essence, this is the core foundation based on which patients come in for treatment.

I think healthcare staff should be especially attuned to patient needs. It takes time and hands-on experience to understand the complexities of healthcare terminology and patients’ concerns.

We have developed a comprehensive training programme called Mira AI for our care co-ordinators that combines AI modules with self-learning activities. The AI modules delve into specific diseases, explaining symptoms, common patient concerns, appropriate communication strategies and available treatment options. This holistic training equips co-ordinators to engage confidently with patients and address their needs effectively.

Our focus is not on technical skills or communication basics for doctors. We emphasise the human touch, their empathy, to be precise. While doctors naturally possess this quality, we offer support through our SOPs (standard operating procedures) to ensure they connect with patients effectively. The focus on empathy often leads to a better patient experience. 

Inc42: As a woman leading a healthtech unicorn, what are your key takeaways and advice for aspiring women leaders in this field?

Dr Garima Sawhney: Well, I will be honest. It is not a walk in the park. But here is what I have learnt. You need to understand your unique value proposition. Why are you here? What problem are you solving that needs addressing? That is your focus.

Now, whatever you are doing, understand it inside out. Develop a risk management strategy for everything you do. That is the cornerstone of building a strong organisation.

As a woman, you will likely know how to manage your personal and professional life (and often excel at it). But when you are at work, achieving balance is the key. So, delegate at home, raise your family, but manage everything simultaneously.

Also, surround yourself with those who can help you learn; they can be your mentors, peers or colleagues. Build a network of people who can support your growth on this journey.

And finally, do remember that good things happen along the way. Be transparent with your family and share your dreams. Also, build a work family, a team that feels like an extension of your own, and enjoy the small wins together.

The post Pristyn Care’s Approach Is Rooted In Patient-Centricity: Cofounder Dr Garima Sawhney appeared first on Inc42 Media.

The concept of affordable housing got a fillip across India following the launch of Pradhan Mantri Awas Yojana (PMAY) in June 2015. Once considered a sunrise segment, such schemes aim to help lower-to-middle-income people seeking home ownership in metros and non-metros. 

But despite government initiatives, people often need help to get maximum benefits in terms of tailored schemes, eligibility criteria, competitive interest rates, and suitable loan-to-value ratio.

According to Atul Monga, founder and CEO of BASIC Home Loan, there are several reasons why people don’t get the best deal when raising a loan for affordable housing, especially in Tier II and III cities or beyond.  

For one, people may have limited options depending on the location and the loan amount as banks use a fixed-cost and branch-led model, and providing loans may not be viable if the customer acquisition cost is too high. Also, a property must have adequate market value if the lender has to redeem its investment due to non-payment.

To mitigate the home loan hurdles in underserved areas, the fintech platform matches borrowers with lenders via a digital marketplace, enables a paperless loan application process online, and ensures hassle-free loan approval.

The tech-first mortgage distributor has designed a phygital model to combine digital efficiencies with in-person assistance from a network of trained direct-selling agents. Users can raise home loan requests on BASIC’s website, through builder partners, or the DSA network. The hybrid model helps serve the diverse requirements of a broader target audience who may not be comfortable using online-only transactions. 

The fintech startup has partnered with 90 banks and LAPs (FIs offering loans against property). It claims to have serviced 2.25 Lakh customers and disbursed home loans worth INR 10,000 Cr. It currently operates in three metros (Delhi, Mumbai, and Bengaluru) and several Tier II and III locations, such as Thane, Mohali and Ayodhya, serving customers across 650+ districts.  

Its key lending partners include industry leaders such as the State Bank of India, ICICI, HDFC and Axis Bank, PNB Housing Finance, Piramal Finance, Tata Capital, Bajaj Finserv, IIFL, and more. 

It earns commissions from transactions done by partner banks, NBFCs, and other FIs via the platform. This can go up to 2.25% of the deal value, depending on the lender, the type of loan product, and other factors. It also helps the startup maintain a healthy CM1 of 35% (contribution margin 1 indicates gross profit per unit or selling price minus the cost of the item sold). However, its services are free for retail users raising home loans via the platform.

The Back Story 

Monga and Kalyan Josyula launched BASIC Home Loan in July 2020, during the COVID-19 pandemic, when most startups were downsizing or shuttering their businesses. By then, Monga, a mechanical engineer from IIT-Delhi, had stints at leading firms such as Policybazaar and Credit Suisse and worked as an investment banker. It did not take him long to realise that apart from the general credit shortage in the affordable housing space, the sector was underserved beyond Tier I due to the lack of equitable credit distribution.

Terms and conditions are often too complex and need to be clarified, leading to inconvenience and trust issues. Things took a turn for the worse during the pandemic, as FIs nearly stopped functioning during months-long lockdowns. New-age fintechs were agile enough but focussed on small-ticket personal loans with short repayment tenures. 

Recognising the untapped opportunity, Monga and Josyula took the plunge. They conducted extensive market research and interacted with potential homebuyers through surveys and interviews. This hands-on approach, combined with their unique skills, convinced Picus Capital to invest $500K in their venture.

BASIC’s Playbook For Building Affordable Housing Loans   

BASIC aims to democratise home loans in the affordable housing sector, with a focus on Tier II cities and beyond, where such projects are swiftly gaining traction. It has also automated the entire application process and backed it up with suitable human interventions to ensure that obtaining home loans for consumers remains as hassle-free as possible. 

However, its role as a home loan enabler/mortgage distributor has its fair share of challenges. Incorporating/updating lenders’ policies, rules and regulations around the clock is onerous, and resets are not always possible. Additionally, building an in-house tech stack for fast and error-free operations requires top-rated tech talent and unconventional thinking to stay ahead of the curve.

Running an asset-light but vast network of home loan agents to achieve desired business outcomes is also tough in unorganised, offline markets. They are not the typical sales associates but the backbone of BASIC’s district-level business and a core component of its revenue growth. 

Monga, however, thinks that regulatory compliance at all operational levels and winning user trust while digitalising its processes have been the toughest of all. It has developed a five-point programme that aligns with the mortgage market dynamics to deal with these challenges: 

Protocol at play to find suitable lenders & align with them: BASIC conducts a thorough search, analysis and assessment to identify a lender whose vision, operations, financials and other factors align with the startup’s goals.

Proprietary tech & compliance: The fintech startup has developed a proprietary product-eligibility matrix (PEM) to match loan products with borrower profiles and property details.

On the other hand, its CRM system helps speed up customer KYC and tracks each application. Besides, the dynamic document rule engine ensures that all documents have been collected and digitally checked by the compliance team.

If a loan is sanctioned after due diligence, a BASIC advisor helps with agreement signing and collects all hard copies required by the lender. The entire process hastens the turnaround time and the loan amount is disbursed within 10 working days or 76 working hours. 

To ensure compliance, BASIC has invested in advanced encryption technologies and secure data storage solutions to protect sensitive customer data. It also educates consumers about the benefits of going digital, such as better assistance, quicker loan processing and advantageous mortgage availability.

Trained agents for superior customer service: The fintech’s vast network of agents are trained local experts who ensure a steady business flow by tapping into communities and enhancing customer support by offering personalised services. BASIC selects people from sales, finance, or real estate based on their previous business performances, tech orientation and alignment with its core business values.

Is Affordable Housing Still A Distant Dream In India?

Census 2011 put the number of homeless people in India at 1.7 Mn. It is difficult to peg the current estimates for the lack of data. The number has likely gone up, as India currently has the largest population in the world. 

BASIC is aware of the ground realities, and Monga emphasises the need to make home loans more accessible and affordable if universal housing is to happen in India soon. “We plan to improve technology-based product development and risk-sharing by partnering with more lenders and thus cater to a bigger consumer base,” he added.

While Picus Capital did the initial funding to help launch BASIC Home Loan, Venture Catalysts++ (India’s first multi-stage VC) has been a crucial pillar of support, consistently backing its growth journey, says Monga. The VC firm has already invested $3.5 Mn to grow its business.

“Since its initial funding, it has participated in all our funding rounds. But there’s more to it than providing capital. Its extensive network and industry contacts have accelerated our growth. The angels and the family offices we connected with through VCats++ have provided funds and offered valuable assistance in overcoming challenges along our journey. Many of these investors are seasoned entrepreneurs, offering guidance and insights whenever we have encountered obstacles during our expansion,” the CEO added.

However, they face the challenge of navigating complex and evolving regulatory landscapes, which can be particularly daunting and costly for fintech brands, especially startups with limited resources.

Nevertheless, the demand for home loans will continue to surge in a country like India, where owning a home remains the cornerstone of financial growth and personal achievement. 

Will BASIC and its ilk emerge as innovative neobanks of the ‘affordable home’ loan sector? For now, the focus is on empowering potential homebuyers with the best possible loan terms, interest rates and associated fees so that they can make informed decisions. But that will not deter them from exploring and developing new mortgage products with built-in benefits for all stakeholders.

The post How BASIC Home Loan Is Revolutionising Affordable Housing By Helping 2.25 Lakh+ Customers appeared first on Inc42 Media.

Talk about Siachen, and everyone can tell you about the hardships people face across the terrains at 5K metres and above. However, few realise that one cannot even use typical personal care products like shampoos and shower gels at that altitude due to extreme water scarcity. Getting a shampoo or a bath requires digging out ice and melting it, a challenging task in sub-zero temperatures.

Puneet Gupta, an engineer by training who honed his technology and innovation skills at IIM-Calcutta, was deeply affected by these harsh realities during an interaction with an army general. Gupta always wanted to join the armed forces but ended up working on product development, which culminated in a role at Honeywell. But after that interaction, he felt a strong nudge towards doing something more in a different capacity. (My boys can’t take a bath – that simple statement has never left his mind.)   

To transform personal hygiene practices for special requirements, Gupta entered into a strategic collaboration with IIT-Delhi’s biotechnology centre and reached a breakthrough in waterless and STAR technologies after three years of rigorous R&D. He launched Clensta in 2016 and commercialised in 2019 – currently offering haircare, body care, skincare categories, including two flagships – a waterless shampoo and a waterless body bath.

For context, waterless technology helps eliminate water usage for personal care needs. One can use a 100 ml bottle of rinse-free body wash and easily wipe it off as it does not leave much residue instead of taking a standard bucket bath. This spells convenience and guarantees significant water conservation, a vital step towards a sustainable future. The Indian government has granted Clensta a patent for its waterless invention. 

The brand has also worked on STAR technology (safe transdermal absorption of reactive ingredients), which helps improve the efficacy of personal care and wellness products. Simply put, it works like a medical patch, allowing nano-sized nutrients like iron, iodine and vitamins to reach the bloodstream through skin pores for long-lasting benefits. Clensta is reportedly working on such ‘healthy’ lip colours and bindis that may soon take the Bharat market by storm as nutritional and wellness disparities plague Indian women.

Its formulations contain active ingredients like niacinamide, glutathione, hyaluronic acid etc and the effective market-first ingredients, including red aloe vera, rosemary, egg extracts to maximise their personal care benefits. 

The brand currently offers 70+ products and more than 80 SKUs. All Clensta products are FDA-certified and undergo rigorous quality checks at pre- and post-production stages (more on that later).

Clensta raised $12 Mn in debt & equity funding. It serves nearly 15K pin codes through its dedicated website and online marketplaces like Amazon, Flipkart and Nykaa. It is expanding its global footprint across Saudi Arabia, Maldives, Singapore, Malaysia, Nepal, Dubai, African markets  and more.

According to Gupta, the brand clocked INR 78 Cr in FY24, a YoY growth of 129% from INR 34 Cr in FY23, and eyes an exit ARR of INR 300 Cr (a monthly recurring revenue of INR 25 Cr) in the current financial year. 

Clensta’s USP: Natural Ingredients And Tech Power Packaged In Personal Care 

Waterless product design has immense growth opportunities, given its eco-friendly approach and firm alignment with water sustainability. 

For instance, the global waterless cosmetics market is projected to reach $24.2 Bn by 2030, growing at a CAGR of 13.4% from 2024. Additionally, research reports predict the rise of dry and green brands in personal care.    

Such market trends sound encouraging, but spotting a niche and knowing how to fill it require varied expertise. So, in 2023, Clensta roped in Mamaearth’s Ashish Mishra (then senior vice-president at the personal care brand and looking after offline and international business) as its’ cofounder and CBO. With more than two decades of retail experience, Mishra currently leads distribution, while Gupta is in charge of product development.

Building the core pillars of the business was not easy. In the early days, customers tended to define what a company should focus on. For Clensta, focusing on the following three core areas helped it navigate its journey.

Deep collaborations to leverage expertise and stay agile: Instead of setting up an asset-heavy independent unit, Clensta’s initial R&D started at IIT-Delhi. As of now, Clensta products are developed in 10 facilities.

“IIT-Delhi recognised our potential early on, providing funding and research support to Clensta. This partnership was pivotal, helping us transition from an innovative concept to a tangible prototype. After finding the product-market fit, we saw a significant uptick in interest and initial adoption due to IIT-D’s endorsement. It also helped us achieve nearly 100% growth every year,” said Gupta.  

Precision product development: Unlike many of its peers, Clensta uses AI tools (one is still in beta) to analyse customer requirements, review product feedback and measure post-purchase customer satisfaction. 

An automated data processing system and a comprehensive data analysis enable the new product development (NPD) team to identify consumer requirements, opt for precision development and enhance customer experience.       

Meticulous testing for quality control: From raw material testing to production and packaging, Clensta follows a series of rigorous quality checks to ascertain that its products meet required industry standards.

All ingredients and packaging materials undergo thorough testing to ensure compliance with quality, safety and durability norms. A quality assurance (QA) team also conducts in-process quality checks to monitor ongoing production.

The brand now caters to major hospitals such as AIIMS   and sells its products to the Indian Armed Forces, in Siachen and the broader B2C personal care and home care markets. 

Funding, Repeat Sales & Omnichannel Expansion: How Clensta Is Navigating Key Growth Hurdles

Despite Clensta’s product innovations and initial funding from IIT-Delhi, raising capital became a massive challenge when the brand went into full commercial mode. Also, a worldwide pandemic, followed by a harsh funding winter, did not work out well for young ventures.

Clensta has raised multiple investments from Venture Catalysts++ (VCats++), but beyond the capital, the VC firm provided significant value and support in terms of strategic vision and operational efficiency.

“We have greatly benefited from its vast networks, striking industry insights and guidance on course correction and big-picture thinking,” said Gupta.

He claimed that the startup’s monthly recurring revenue grew by 300% since the last funding infusion by VCats in July 2023 and the number of SKUs increased by 250%. 

Omnichannel is the way to go: Another key challenge is building an omnichannel (online+offline) business for maximum reach and customer convenience. As a keen observer of industry trends, Mishra, CBO and cofounder of Clensta feels certain that 60% of Clensta’s India revenue will be generated offline for the next three years. 

Clensta has already built a strong presence offline (across 57 cities, including major Tier II locations). Now, it is consolidating its position in these existing markets by ensuring ready access to all its products and impeccable customer service. Although 80% of its revenue comes from Tier I cities (Tier II and III account for 15% and 5%, respectively), the brand is making strides to address the personal hygiene needs of Bharat, where water scarcity is a red-hot reality. 

Its products are also sold on its website and leading ecommerce platforms like Nykaa, Flipkart and Amazon to enhance their reach.

The Road Ahead For Clensta

In a fast-evolving personal care space, innovation-first outliers like Clensta need to stay ahead of the competition by focussing on two major areas: New technologies for better products and new markets for revenue growth.   

Although the concept of anhydrous (waterless) products in the beauty and personal care (BPC) space originated in South Korea nearly a decade ago, its worldwide popularity has only grown recently. However, competition is already heating up in the global arena, with the likes of Unilever and L’Oréal gunning for more patents to enter the ‘waterless’ BPC segment and reduce their water usage for manufacturing in sync with the global sentiment. 

Overseas brands like DryBath, Loli, Pinch of Colour and Vapour also dominate this space, even though some are not pure-play personal care brands. Closer home, companies like Aadhunik Ayurveda and Soap Square may give Clensta a run for its money. 

Additionally, issues related to waterless formulations, such as product stability and shorter shelf life, can lead to innovation challenges. Essentially, ventures like Clensta need to be at the top of their technology game to ensure the adoption of comparatively expensive product lines at scale.

The exponential growth of the BPC market in India will be a growth driver. According to Inc42 data, the beauty and personal care market is expected to grow from $5 Bn in 2023 to $28 Bn in 2030, at a CAGR of 28%

Will the rapidly expanding local and global demand strengthen the startup’s plan to grow globally, bet more on sustainable hygiene tech and emerge as a big brand, rolling out different categories and product lines to meet unique needs? As Clensta continues to make affordable and effective personal care formulations in India for the world, it may soon lead to a new chapter and help script a new growth narrative.

The post How D2C Brand Clensta Clocked INR 78 Cr In FY24 Revenue By Doubling Down On Customer Retention & Omnichannel appeared first on Inc42 Media.

Today’s business environment demands strategic agility from companies, the power to think outside the box, thrive amid disruptions and stay ahead of the curve through constant innovation. This has ignited a technology revolution, with artificial intelligence (AI) and automation rapidly taking over various aspects of business operations.

However, the advantages of speed, flexibility and a fresh perception are mostly embraced by two categories – deep-pocketed design thinkers with a penchant for winning at any cost and the new kids on the block, young startups requiring business transformation for cost-cutting, scalability and success. 

For those in the middle – micro, small and medium businesses (MSMEs) – digitalisation, or any other tech advancement, brings a sense of uneasy familiarity. They continue to struggle with time-consuming manual processes due to their entrenched reliance on ‘that’s how it works’.

But the times are changing, and many SaaS (software-as-a-service) platforms have entered the fray to help improve the business performance of small and medium enterprises. 

“Our vision is to become the de-facto cloud-based system for the maximum number of MSMEs,” Unesync’s cofounder and CEO Rohan Chopra told Inc42 in a recent interview.

Unesync aims to do so “by becoming the go-to financial tool that completes the automation trifecta, including banking, accounting and compliance”, according to Chopra.

Set up in 2023 by Chopra and Ujjwal Agarwal, the Gurugram-based fintech SaaS platform offers a robust suite of accounting solutions, such as GST-compliant e-invoice and e-bill generation and developing insightful financial reports.

The startup further aims to digitalise India’s MSMEs, targeting an ecosystem featuring 63 Mn ventures or thereabouts.

“Today, nearly 50% of all GST-registered businesses are disconnected from the technology landscape,” said Chopra, underscoring the huge opportunity. “This is the market most fintech (SaaS) players are addressing now.”

Consequently, the fintech SaaS space shows promising growth potential in India. A report by Inc42 also estimates that the market is set to surge from $4.6 Bn in 2022 to $31 Bn in 2030, growing at a CAGR of 27%.

Chopra also thinks fintech SaaS should explore niche, specialised use cases to cater to the diverse requirements of small and medium businesses. As Unesync’s custom connectors function as gateways, allowing developers to build on top of the platform, the startup can develop solutions for different industry segments. 

Talking about use cases, Chopra said, “People have used them [custom connectors] to streamline BIS (Bureau of Indian Standards) registration or even automate e-waste recycling directly from their inventory, a crucial practice that is now mandatory.”

Can fintech SaaS solve the growth challenges of India’s SMEs/MSMEs? 

Watch Rohan Chopra of Unesync decode the potential of fintech SaaS, how one can tailor it for diverse requirements, its adoption challenges and more.

The post How Unesync Is Supercharging Small and Medium Businesses In India appeared first on Inc42 Media.

With over 1.2 Lakh startups and a vibrant community of institutional investors, India holds the title of the world’s third-largest startup ecosystem. According to a CII report, India’s startups contributed 10-15% to the country’s GDP growth between 2016 and 2023.

Angel investors, who support startups in their early stages of growth, play a critical role in the growth of the startup ecosystem. They not only provide crucial capital to startups but also champion unconventional and disruptive ideas. 

Angel investing also offers rewards beyond just financial returns. Through mentorship and guidance, investors can share the satisfaction of nurturing revolutionary solutions. Their involvement, particularly in the crucial pre-seed and seed funding stages, empowers startups with valuable wisdom and expertise, enabling them to flourish.

With the number of high-net-worth individuals (HNIs) on the rise in the country, angel investing presents a compelling avenue for portfolio diversification. However, it’s crucial to remember that startups are a risky asset class. Without a strategic approach to evaluating promising businesses, angel investing can be perilous.

Hence, to equip aspiring angel investors and HNIs with the secrets of strategic angel investing, Venture Catalysts++ (VCats++), India’s first multi-stage VC firm, is back with the fifth edition of its online programme ‘Angel School’, to be held on June 22 and 23.

Commenting on the latest edition, VCats++ and 100Unicorns cofounder Dr. Apoorva Ranjan Sharma said, “We aim to democratise angel investing for a broader audience. Traditionally, angel investing has been an exclusive domain, often limited to well-connected individuals.”

He added that by offering a condensed weekend course, VCats++ aims to lower the barrier to entry and provide essential knowledge and tools. 

The course is also designed to attract new investors who are interested in venture capital but lack formal education or experience.

Unlocking Investment Potential: Riding India’s Growth Wave

Over its previous iterations, Angel School has successfully trained over 300 angel investors, equipping them with the essential know-how for navigating the world of angel investing. 

The programme has featured renowned investors and experts like Dr. Sharma; Peak XV Partners and Surge managing director Rajan Anandan; FundEnable founder Vikrant Potnis; Sivasangari Chinnappa, head of startups, transactions and funds practise at Banshi Jain and Associates (BJAA); and VCats++ chief business and operations officer Ashank S. 

In its latest edition, Angel School will intensify its focus on enabling HNIs to leverage India’s remarkable growth trajectory by unlocking their investment potential. Over the course of two days, Angel School by VCats++ will empower participants with the knowledge required to capitalise on the potential of startups and enhance their wealth creation journey. 

“By educating more individuals on angel investing, Angel School aims to increase the flow of capital to startups. This will not only help individual investors grow their wealth but also stimulate innovation and economic growth by providing startups with the necessary funding to develop and scale their businesses,” said Dr Sharma. 

Angel School Curriculum

This year’s programme will once again feature leading angel investors, VCs, and funding experts. They will delve into crucial topics in angel investing: 

• Introduction To Angel Investment: Attendees will gain a comprehensive understanding of angel investment, capital allocation strategies, the startup lifecycle, and the differences between private and public markets.
• Building An Investment Thesis: Speakers will delve into the factors that investors should consider before investing in a venture and how they can create a winning investment thesis.
• Demystifying Deal Structures: Participants will gain insights into the intricacies of deal structuring, valuation, term sheets and exit & liquidation strategies.

In addition to mentor-led sessions, attendees will also participate in insightful panel discussions on navigating the due diligence process and the essential dos and don’ts of building a robust startup portfolio.

Attendees of Angel School will also get investment opportunities, a chance to become a member of VCats++, and exposure to exclusive pitch events which will help them build a diverse investment portfolio and gain exposure to high-potential startups.

“They can gain access to a robust network of top angel investors, founders and industry experts. This network is invaluable for sourcing investment opportunities, collaborating on deals, and sharing knowledge and experiences,” said Dr Sharma. 

Seed Investments Show Resilience Despite Funding Winter

While the funding winter has undoubtedly dampened overall investment activity in recent years, seed investments have largely remained resilient, witnessing only temporary dips. According to Inc42 data, seed stage investments surged to $808 Mn in 2023 from $43 Mn in 2014, clocking a CAGR of 34%.

This jump signifies a robust increase in angel investing activity. Even in the first quarter of 2024, Indian startups secured $179 Mn across 70 seed funding deals. Programmes like Angel School aim to prepare angel investors so that they can face the highs and lows of investing with resilience and contribute to India’s startup growth story.

The post VCats++ Returns With ‘Angel School’ To Help Investors Unlock The Secrets Of Strategic Angel Investing appeared first on Inc42 Media.