Real money gaming startup GamesKraft’s net profit declined 10.8% to INR 946.9 Cr in the financial year 2023-24 (FY24) from INR 1,061.9 Cr in FY23 amid changes in taxation, GST notices, and legal issues.

Revenue from operations grew 30% to INR 3,474.9 Cr in FY24 from INR 2,672.7 Cr in FY23, as per the company’s filings with the Registrar of Companies.

The gaming startup’s total revenue, including other income, increased 28% to INR 3,521.4 Cr during the year under review from INR 2,732.11 Cr in FY23.

Founded in 2017 by Prithvi Raj Singh, Deepak Singh, Rajkumar Taneja, and Sindhu Devi Jha, GamesKraft operates real money gaming platforms such as RummyCulture, RummyPrime, Playship, Pocket52 and LudoCulture.

It earns most of its revenue by taking a commission or platform fee from the amount users pay to join a game or tournament. This fee is typically a percentage of the entry fee or buy-in amount. The revenue is recognised once the game or tournament is completed.

Where Did GamesKraft Spend?

GamesKraft’s total expenses saw a sharp 72% increase to INR 2,232.5 Cr in FY24 from INR 1,300.7 Cr in FY23.

Advertising Promotional Expenses: The startup’s advertising expenses saw a sharp rise of 113% to INR 1,314.82 Cr in FY24 from INR 616.62 Cr in FY23, accounting for the biggest portion of the total expenditure.

Employee Cost: The startup saw an increase of 23% to INR 462.95 Cr in FY24 from INR 374.9 Cr in FY23.

It must be noted that FY24 was the first financial year after the new GST policy came into effect for online gaming. On October 1, 2023, the finance ministry notified provisions to impose a 28% GST on online gaming.

Under the new regulations, a flat 28% tax applies to the total value of bets for online games, irrespective of whether they are games of skill or chance. Previously, a lower 18% GST was levied, specifically on the platform fee for skill-based games.

Several gaming companies, including GamesKraft, Dream11, Games24x7, and Head Digital Works, faced GST notices demanding taxes on the full value of bets placed on their platforms.

However, the Supreme Court recently issued a temporary stay on GST proceedings against 49 real-money gaming companies. This stay halts retrospective tax demands, providing temporary relief to these platforms.

The post GamesKraft’s FY24 Profit Slips 11% To INR 947 Cr appeared first on Inc42 Media.

With a significant rise in over-the-top (OTT) platforms in the country and an explosion in user-generated content in recent years, we are consuming information like never before, so much so that an Indian netizen has today broken the language barricade.

Imperative to highlight that the shift is largely being driven by the pan-India release of content on OTTs and nationwide theatrical launches, all being facilitated by original content dubbed in different languages.

Films like Pushpa and RRR have proven that language is no longer a barrier for Indian viewers.

While regional films are being dubbed in Hindi and other languages, the reverse is also happening. In addition, international languages beyond English, such as Korean and Spanish, have been welcomed with open arms — think Squid Game and Money Heist.

At a time when much looks promising, a major headache for the industry is to sync the audio with lip movements.

While this could seem like a simple fix to many, the truth of the matter is that it is not, as even a slight mismatch can spoil good content.

It is precisely this space that Bengaluru-based NeuralGarage has found its niche and now plans to rule with its AI-powered solutions.

Founded in 2021 by Anjan Banerjee, Subhashish Saha, Subhabrata Debnath and Mandar Natekar (batchmates at IIT Kanpur), NeuralGarage offers tech that syncs the audio with the lip and facial movements of an actor.

Unlike traditional speech-to-text solutions that create dubbed content, the tech enhances and perfects the synchronisation of dubbed content.

The Ballad Of NeuralGarage

After completing their studies, the three cofounders decided to embark on the road less travelled, forgoing traditional career paths to embrace entrepreneurship.

Their first startup, VisageMap, founded in 2021, focussed on facial recognition technology and was acquired within a year by a US-based facial recognition company, FaceFirst.

Following the acquisition, they worked as research scientists in the US, gaining extensive expertise in facial recognition technologies, which also laid the groundwork for their deep understanding of generative AI.

Interestingly, until 2020, developing technology that could seamlessly sync with audio with facial movements wasn’t on the cards. But then the pandemic hit the world, giving a majority of the world’s populace enough time to engage in activities of their choice or to find new ones. During this time, Banerjee’s liking grew towards Korean content. And while he turned into an avid watcher of Korean media, dubbing was an area, he said, needed a major overhaul back then.

The more (Korean content of his interest) he consumed, the more prominent the gap became to him, until he finally had a late-night epiphany.

“We had created faces before. What if we could control them? Could this have applications in other industries, too?” the questions Banerjee would ask initially.

When he shared this with Saha and Debnath, it sparked discussions about the potential use cases, particularly in the media and communication sectors.

With all hands on deck, they envisioned scenarios like real-time multilingual interactions. However, as they evaluated the possibilities, they recognised the media industry’s willingness to invest heavily in dubbing as the smallest of changes in audio cost them a lot.

Their prior expertise in generating faces was now converging with an entirely new stream — synchronising facial movements with audio to create natural expressions.

As they shifted their focus to the media industry while developing VisualDub, they connected with Natekar, a seasoned professional with over 20 years of experience in media and entertainment.

Having worked with leading companies like Viacom18 and Turner International, Natekar brought industry expertise.

In the early stages, the team sought feedback from key players in the entertainment industry, meeting with representatives from over 50 studios.

These interactions helped them refine their vision and solidify their understanding of the industry’s needs. Initially, Natekar joined as an adviser. At the time, there was no discussion about floating a startup. In fact, Natekar was planning to explore new job opportunities.

However, as conversations progressed, it became clear that the team’s combined strengths— technology expertise and deep industry knowledge — offered a unique advantage. This synergy led to the formation of a founding team for their venture in the media-tech space and the birth of NeuralGarage.

Building NeuralGarage’s Proprietary Tech

Speaking with Inc42, Debnath said that ever since Banerjee discussed his peeve with them, the cofounders knew that they were looking at a disruption. They recognised the need to build a proprietary model as no existing solution across any vertical met their requirements.

A big challenge they encountered was the vast difference in data quality across platforms. For instance, YouTube content, even in 4K resolution, might go up to 3-4 GB per video. The same video on Netflix could scale up to 200 GB, while a theatrical release might reach 600-700 GB.

“Most algorithms and systems in use today are designed to work with lower-quality data, typically consumed on platforms like YouTube or TV,” he said.

Hence, for tasks involving video manipulation, computer vision, or machine learning, the team had to engineer everything from the ground up to accommodate the high-resolution requirements of theatrical and Ultra HD content.

“Imagine you see a face on a screen. From a distance, it looks flawless. As you get closer, you might notice blemishes, pimples, or fine lines. With ultra-high-definition content, the smallest imperfections become noticeable. If you’re syncing lip movements for content meant for mobile phones, where the resolution is lower, such details might not matter. But for theatrical content shot in extremely high definition, every detail is pixel-perfect, and any flaw becomes immediately visible,” the cofounder said.

Its proprietary tech, VisualDub, helps maintain the original shoot’s integrity and creativity, no matter the platform. Currently, the startup brings two key offerings to the table. The first is its ability to deliver seamless lip synchronisation, ensuring that dubbed content appears completely authentic, meeting broadcast-quality specifications.

In addition, it also offers voice cloning, a natural complement to lip sync. For instance, imagine a Hrithik Roshan film being dubbed in Telugu. Traditionally, a Telugu dubbing artist would provide the voice, but it wouldn’t sound like Hrithik Roshan’s. With VisualDub, the dubbing artist’s audio can be transformed to match Hrithik’s voice, maintaining his distinct tone, timbre, and style.

While the startup aims to serve the entire media and entertainment industry, its primary traction so far has been in the advertising sector. Currently, the company is collaborating with 30-35 major clients, including industry giants such as Amazon, Coca-Cola, Ultratech Cement, Dream11, Nestlé, Unilever, and Britannia.

In terms of pricing, the startup charges between INR 2 Lakh-2.5 Lakh per minute of content for advertising projects. However, for feature films and other media projects, the pricing varies. The startup is preparing to announce its first film-related project soon. It has 5-6 media projects currently in the pipeline. In FY24, the founders claim to have garnered $35K in revenue. They are expecting to close FY25 with $450K.

What’s Ahead For NeuralGarage

The founders have identified three key goals for the next 12 to 18 months to strengthen their position in the media and entertainment technology sector.

First, they plan to develop and launch a downloadable desktop version of their proprietary VisualDub software within the next year, Natekar said.

To support this expansion, the company is preparing to close its Series A funding round. This funding will enable them to enhance their research and development capabilities and fast-track their go-to-market strategy.

Additionally, the founders aim to transform the startup into a $3 Mn to $3.5 Mn revenue brand within 18 months. This growth is expected to be fuelled by the startup’s strategic partnership with UFO Moviez, per the founders.

The startup is also engaging with global advertising agencies in regions like Singapore and Malaysia to explore opportunities.

The company is also actively targeting the United States. Plans are also underway to open a representation office in Los Angeles to build relationships with studios, directors, and other key stakeholders in the entertainment industry.

While there is no doubt that perfect lip-syncing in dubbing would remain in demand as content creators across the world aim to break language barriers, scaling a startup in the media-tech space could be challenging due to reasons galore, including capital-intensive.

Besides, gaining the trust of traditional media and entertainment companies and raising awareness among potential clients is tricky. However, what’s interesting is how NeuralGarage plans to turn the tables with its cutting-edge solution in the not-so-distant future.

[Edited By Shishir Parasher]

The post How NeuralGarage Is Fixing The Dubbing Conundrum For OTTs Like Netflix, Hotstar appeared first on Inc42 Media.

Indian foodtech players have transitioned beyond simple food deliveries. From groceries to fast delivery of essentials, companies like Zomato and Swiggy have evolved to cater to the growing demand for instant gratification in accessing everyday necessities.

Last year marked a significant milestone in Swiggy’s journey. Following the footsteps of its rival Zomato, which had gone public in July 2021, Swiggy made its long-anticipated market debut with a blockbuster $1.3 Bn IPO — one of the largest public listings by a new-age tech company in India. 

While Swiggy remained loss-making according to its last financial statement, it achieved profitability in its core food delivery business on the back of measures such as the introduction of a platform fee. 

In addition, the company also increased its focus on growth avenues such as Dineout and other revenue streams, to further solidify its position. Though Swiggy paused experimenting with new verticals before its IPO, the company has resumed diversifying after its listing.

In December 2024, the company expanded its Dineout vertical by introducing Swiggy Scenes, a new feature enabling users to book parties, events, and live music experiences at partner restaurants. This move also underpinned Swiggy’s intent to not only deliver convenience but also curate experiences, further strengthening its position as a comprehensive lifestyle platform.

However, what’s interesting is that Swiggy Scenes took shape after Zomato announced the launch of District, a dedicated app for the ‘going-out’ business, in July. The app was finally launched in November last year after Zomato completed the acquisition of Paytm Insider in August. 

While Zomato launched District as a separate app, Scenes is currently available on the main Swiggy platform and is only limited to a few locations, including Bengaluru and Delhi. 

Notably, Zomato’s District app allows users to book tickets and make reservations for dining, movies, sports, and live performances, Swiggy Scenes is right now only available for booking tickets for comedy shows, live music and events at Swiggy partner restaurants. 

This raises many questions — Why has the company launched a feature when it still feels like a work in progress? Is Swiggy Scenes the byproduct of any kind of FOMO? And finally, how does Swiggy plan to capitalise on and scale this offering?

A Move To Protect Itself Against Zomato?

Speaking with Inc42, an analyst at a stock broking firm said that one of the simplest reasons for the rushed launch of Scenes could be to keep pace with Zomato.

According to the analyst, Swiggy is already under pressure from its competitors in other verticals and cannot afford to lose ground in yet another segment. From a market capitalisation and profitability perspective, Swiggy significantly lags behind Zomato, making this move even more desperate.

“It is not clear what Swiggy’s strategy is for Scenes. I don’t think it’s a competitor to the District app at this point. Zomato’s District is a fairly evolved business, especially after acquiring Insider, considering the number of events listed, the cities covered, and the types and scale of events featured. The difference is like chalk and cheese,” Shreyas Srinivasan, the former chief product officer of Paytm and founder of Insider.in said.

She added that how Swiggy is functioning right now feels like it is trying to protect itself from Zomato’s growing influence. “However, the company will have to do more than just showcase to its customers that it is on par with Zomato. For them to compete, they’ll need to expand their scope to include concerts, comedy shows, and more,” Srinivasan, who quit Paytm last year, said.

Echoing the sentiment, Nishant Kini, the founder of Bengaluru-based branding and events agency The Nishé & Co, said that Swiggy’s entry into the events segment has only been prompted by its rival Zomato but the loss-making Swiggy has played it smartly by avoiding the acquisition route, staying clear of any kind of additional strain on its cash flow.

Swiggy Needs To Play To Its Core Strengths

While industry experts are not quite confident about Swiggy making any dent of sorts in the short term with Scenes, they have also not denied its capability to create new opportunities in the segment, despite it being late to the party.

However, at a time when many experts see Swiggy getting innovative with pricing, striking lucrative partnership deals and entering unclaimed zones, Srinivasan does not see much room for expansion.

“If you look at the “going-out” segment, BookMyShow initially spearheaded it, focussing primarily on movies, followed by events. Paytm followed a similar approach by offering movies and events, directly competing with BookMyShow. Zomato expanded this concept with Dineout, bundling dining, movies, and events into a single offering, as they viewed dining as a significant category,” he said, adding that it’s hard to identify a category that Swiggy can leverage to fundamentally alter the “going-out” experience

However, he said, there still lie opportunities in creating a highly innovative membership programme, offering better access and competitive pricing — something Zomato hasn’t yet integrated across its offerings. Zomato’s apps for dining, movies, and events operate independently, with separate reward cycles and memberships.

According to Kini, Swiggy’s strength also lies in its loyal customer base, which would give it a significant advantage as it expands into the events space. While BookMyShow is an established player, there are several smaller event listing platforms that Swiggy could effectively compete with.

Swiggy’s strength lies in its rich database of existing customers and its ability to seamlessly integrate new offerings into its platform. This will help Swiggy tap into its existing user base and offer a unified experience, positioning itself as a convenient and comprehensive lifestyle platform.

For instance, when users log in to order food on Swiggy, a well-timed pop-up or notification about exclusive events and ticket sales could immediately capture attention, he added.

“Besides, Swiggy already has an established presence across A, B, and C-category towns in India. This presents a unique opportunity for curating events tailored to these segments. In A-category cities, events and live performances are already thriving, while B-category cities are seeing growth but primarily on a smaller scale compared to A-level cities. The potential for growth in C-category towns—neither fully urban nor rural—is significant,” Kini said.

If Swiggy can penetrate these areas effectively, it could unlock a wealth of opportunities in the events segment. To capitalise on this, Swiggy will have to focus more on expanding its offerings in B and C-category towns, where untapped demands await.

What’s Next For Swiggy?

While it is difficult to foresee how Swiggy Scenes will shape up going ahead, what’s definite is that the company will require a significant investment in its pursuance to fully establish itself in the realm of entertainment and “going-out” segments.

In addition, the company will have to spend time and resources to build a hefty pipeline of exclusive event rights as events and movies are often exclusive, unlike restaurants that can list across multiple platforms.

“Most major events are listed on just one platform, and large movie chains like PVR often have contracts with only one or two providers. Building a robust supply chain in this sector takes significant time and effort, which is likely why Zomato opted for an acquisition strategy over building from scratch,” he added.

However, the only grace is that customer acquisition cost is lower in this segment. The advantage of a category with exclusive supply is that the supply itself drives traffic. For instance, if someone wants to watch a specific show, they will go to whichever platform offers the tickets, regardless of whether it’s Zomato, Swiggy, or another competitor. In such cases, the priority isn’t about generating traffic first but about securing the supply, the former Paytm COO said.

All in all, Swiggy is currently on a diversification drive, and it is trying to achieve profitability by adding more revenue streams. Earlier this month, it entered the services marketplace with the launch of a new app, Pyng Professional, and introduced SNACC, an app focussed on delivering food within 15 minutes.

Imperative to mention that the foodtech major trimmed its consolidated net loss by 4.78% YoY to INR 625.53 Cr in the second quarter (Q2) of the financial year 2024-25 (FY25). Meanwhile, operating revenue zoomed 30% year-on-year (YoY) to INR 3,601.45 Cr during the quarter under review.

Its out-of-home business, which comprises exclusive events and experiences business Swiggy SteppinOut and restaurant reservations and booking platform Dineout, is close to achieving adjusted EBITDA profitability. Swiggy made INR 60 Cr in revenue from the Out of Home Consumption vertical in Q2 FY25, up 71% from INR 35 Cr in the year-ago period. Its loss declined 79% YoY to INR 9.26 Cr.

With prospects looking promising, it will be interesting to see whether Swiggy’s aggressive expansion succeeds or ends up joining Minis, the free no-code website builder platform, in the graveyard of forgotten ventures.

[Edited By Shishir Parasher]

The post Swiggy Scenes: A High Potential Revenue Stream Or Another Experiment? appeared first on Inc42 Media.

In 2008, little did people know that the arrival of Zomato would transform how food would be ordered in the not-so-distant future. Then came Swiggy in 2014, and what began as a convenience (ordering food at the click of a button) became a lifestyle.

More than a decade later, we are standing on the cusp of yet another revolution, with companies setting their eyes on making a sweet buck by providing Indian customers instant gratification. 

With 10 and 15-minute deliveries becoming a norm, Indian foodtech startups are not leaving any stone unturned to make the best of this high-octane space, offering a wide spectrum of offerings at the disposal of their customers. Not to mention, Indian foodtechs are now part of the larger quick delivery sector, which is poised to become a $9.9 Bn+ market opportunity by 2029, growing from a mere $3.3 Bn+ in 2024.

While traditional players like Swiggy and Zomato have entered the fast-food delivery race, offering meals within 10-15 minutes, newly borns, like Bengaluru-based Swish, are not far behind in the race. Imperative to mention that, Swish delivers a range of fast food offerings in just 10 to 15 minutes via its app.

To make things more interesting, another player, Zing, has emerged in the 10 to 15-minute food delivery space. Launched in November 2024 by Tarun Arora and Rachit Sahi, Gurugram-based Zing operates a hyper-local kitchen with the help of technology and a menu optimised just for quick deliveries.

The startup operates a cloud kitchen that are close to customer locations. This helps it reduce delivery time. Further, Zing’s menu comprises high-demand and quick-to-prepare dishes.  

What makes Zing’s foray more interesting in this space is that it claims to offer freshly made meals at a time when food items with longer shelf lives seem to be the primary play of many. 

Now, before we dive deeper into understanding how Zing plans to rule this roost for shine in this space, let’s understand what led to its inception.  

Inside The Genesis Of Zing

A foodtech was never on Arora’s cards until 2022 when he was working with Inshorts. Arora, a BTech graduate, started his career as a software engineer but soon realised that the monotony of routine coding work wasn’t a sustainable path for him in the long run.

In his quest for new challenges and to make a real world impact, he joined a news aggregator and content distribution company, where he steadily advanced through the ranks to become the chief operating officer.

However, during this time, he was experimenting with multiple ideas to quench his entrepreneurial thirst, but with little success — until the quick delivery space caught his attention, prompting him to contemplate a foray into the field.

This was when he thought of ultra-fast food deliveries. “While grocery and essentials are riding the quick-commerce wave, only a few are confident about addressing the need for ultra-fast food delivery. This thought laid the foundation for Zing,” Arora said.

The founder added that he observed the growing popularity of Blinkit and Zepto among the younger population. Alongside, he noted that when it comes to the need for instant food, current delivery times are around 40-45 minutes.

“Since food is more fundamental than groceries, it demands quicker solutions, which is why they decided to address this gap,” Arora said.

How Zing Is Carving Its Niche

Zing began its operations in November 2024. According to the founder, its approach has been slow and steady. This is because scaling operations quickly can be both challenging and capital-intensive. Therefore, Zing started small, operating in only two sectors of Gurugram. However, it has now expanded its reach to three or four sectors.

Now, in a bid to ace the quick delivery game, Zing does not partner with third-party restaurants. It has rather set up its own cloud kitchen and delivers food within a two-kilometre radius.

“While giants like Blinkit and Zomato have mastered the logistics of delivering food and groceries, food itself isn’t their core focus. For us, food is the business, not just delivery. Even for the big players, food remains a fresh and complex challenge,” Arora said.

This is exactly where the unique selling proposition lies — food. To ensure high-quality food is delivered within 10 minutes, it is essential to have end-to-end control over the kitchen operations, the founder said.

Moreover, per the founder, several factors are at play when one wants to truly ace the 10-minute food delivery market.

“Everything matters when you are racing against time — placement of utensils and appliances, as well as the distance between them. This is why we are meticulously optimising our kitchen setup and design,” Arora said.

Zing’s Blueprint For Success

Since its launch, Zing has made significant progress, surpassing 5,000 downloads on the Play Store. Starting with just 8-10 orders per day, the startup has grown steadily to handle over 100 orders daily, with an average order value of INR 220.

What makes Zing’s growth notable is its near-zero customer acquisition costs. The startup relies on cost-effective strategies like placing posters in corporate areas and offering referral discounts to existing users.

Moving ahead, Zing aims to scale its operations to 100 kitchens over next one year. The initial 4-5 kitchens are projected to handle 700 to 800 orders per day and achieve profitability by then, creating a model that can be replicated across new kitchens. Geographically, the startup plans to penetrate deeper into NCR and capture a few locations in Bengaluru.

Zing’s entry into the ultra-fast food delivery segment has come at a time when the Indian quick commerce space is expanding its ambit. While there is no doubt about the fact that the revolution of ultra-fast deliveries is here to stay, sustaining in this space will come at a cost.

Several deep-pocketed players already have their eyes on this highly lucrative space. In the absence of any investor backing, survival could get tough once the competition starts to beef up. However, before that happens, Zing has a first-mover advantage in the space. Now, if it plays its cards right, it has the potential to become the north star of the ultra-fast food delivery business.

[Edited By Shishir Parasher]

The post There’s A New 10-Min Food Delivery Kid On The Block; What’s Its Game Plan? appeared first on Inc42 Media.

In a relief to real money gaming companies, the Supreme Court on Friday has put a temporary halt on goods and services tax (GST) proceedings against 49 real money gaming companies, staying retrospective demand notices that sought taxes on the full face value of bets placed through the gaming platforms.

Multiple gaming companies, including Gameskraft, Dream11, Games 24×7, and Head Digital Works, received GST notices and moved the apex court to get a stay on these notices.

A Bench comprising Justices JB Pardiwala and R Mahadevan granted the temporary stay and listed the case for next hearing on March 18.

On October 1, 2023, the finance ministry notified provisions to impose a 28% GST on online gaming, a decision that caused turmoil in the industry.

As per the notification, online gaming, along with horse racing and casinos, was classified as “actionable claims” under the GST Act, placing them in the same category as lotteries, gambling, and betting.

The finance minister at the time of announcement said that the decision will be reviewed six months after it comes into effect. However, there has been no review till now.

Under the new regulations, a flat 28% tax applies to the total value of bets for online games, irrespective of whether they are games of skill or chance. Previously, a lower 18% GST was levied, specifically on the platform fee for skill-based games.

Online gaming companies were issued 71 show cause notices for alleged evasion of GST amounting to INR 1.12 Lakh Cr during 2022-23 and the first seven months of 2023-24.

More than 40 petitions filed by online real-money gaming companies, challenging retrospective GST notices, are currently pending before the Supreme Court. However, smaller players have been struggling to absorb the cost, leading many to shut down operations.

Major players like MPL, Hike, and Spartan Poker resorted to layoffs following the implementation of the new GST regime, while smaller platforms such as Fantok and Quizy were forced to shut down operations.

The GST collection from India’s online gaming industry surged 412% to INR 6,909 Cr in the first six months after the imposition of the 28% GST regime compared to the preceding six months, finance minister Nirmala Sitharaman said last year.

The FM said that GST collected from online gaming zoomed 5X during October 2023 and March 2024 period from INR 1,349 Cr in April-September period of 2023.

As per a report released by EY and US-India Strategic Partnership Forum (USISPF) in last year, more than 50% online gaming companies in India witnessed stagnant or declining revenues after the new regime came into effect.

The post Supreme Court Stays GST Show Cause Notices To Real Money Gaming Startups appeared first on Inc42 Media.

Amid many changes in the Indian startup ecosystem, the top three startup hubs of the country in terms of funding – Bengaluru, Delhi NCR, and Mumbai – have remained unchanged for years. The story was the same in 2024 as well.

However, the top three positions saw some rejig in 2024. The country’s financial capital, Mumbai, overtook Bengaluru to take the top spot in terms of startup funding. As a result, Delhi NCR dropped to the third position.

According to Inc42’s Indian Startup Funding Report 2024 the funding raised by Delhi NCR-based startups declined 15% to $2.3 Bn in 2024 from $2.7 Bn in 2023.

However, the deal count increased slightly to 252 during the year from 241 in 2023. Consequently, Delhi NCR retained its second position in the list of top startup hubs of the country in terms of deal count.

What Led To The Decline In Funding?

Delhi NCR saw a fall in funding despite the total funding raised by Indian startups growing over 20% year-on-year (YoY) to $12 Bn in 2024. This begs the question, what led to the decline in Delhi NCR funding?

According to Rohit Krishna, a partner at WEH Ventures, there are more D2C brands in Delhi NCR than in other hubs, and these brands require less capital than other tech startups.

Another reason for the drop was that late-stage funding in Delhi NCR declined 40% to $967 Mn, despite a 79% increase in deal count to 34 deals.

“Many late-stage startups are now trying to operate with existing capital, as they are facing down rounds. To maintain their valuation and avoid lower valuations, many are refraining from seeking additional funding rounds,” Krishna added.

BlueGreen Ventures founding partner Anup Jain believes that late-stage funding in Delhi NCR has shifted towards public markets rather than private equity, driven by IPOs. He highlighted that a number of startups from Delhi NCR, like TBO Tek, Unicommerce, MobiKwik, and ixigo, went public last year.

Median Ticket Size Jumps

On account of the surge in deal count, the median ticket size in Delhi NCR rose 15% to $2.3 Mn in 2024 from $2 Mn in 2023. The region was at the second position among the top startup hubs in terms of median ticket size, behind Mumbai. The financial capital also saw a 15% YoY increase in median ticket size to $3.4 Mn in 2024.

The increase in median ticket size in Delhi NCR was because of high activity in growth-stage funding. Delhi NCR startups recorded a 31% YoY rise in growth-stage funding to over $1 Bn in 2024. The deal count also rose 60% to 80 last year.

This increase was more than that seen in the overall startup ecosystem. Growth-stage funding in the Indian startup ecosystem zoomed 21% YoY to $3.5 Bn in 2024, while deal count grew 47% to 282.

Overall, two big funding rounds – one late stage and one growth stage – materialised in Delhi NCR in 2024. While hospitality major OYO raised $175 Mn in a round led by Ritesh Agarwal-floated Patient Capital, PhysicsWallah raised $210 Mn in its Series B funding round, led by Hornbill Capital. The edtech startup’s funding round was the third biggest growth-stage round in 2024.

Meanwhile, seed stage startups in Delhi NCR raised over $155 Mn in 2024, an increase of 37% YoY. However, deal count at the seed stage declined 17% to 101 in 2024.

Ecommerce, Fintech Lead Delhi NCR Ecosystem

Ecommerce has remained the top sector in Delhi NCR over the last decade, followed by fintech, enterprise tech, consumer services, and edtech.

Ecommerce startups bagged 668 deals between 2014-2024, followed by fintech and enterprise tech startups with 404 and 370 deals, respectively. In addition, consumer services and edtech startups secured 264 and 228 deals, respectively, during this period.

In terms of funding, ecommerce claimed the top position at $10 Bn between 2014 and 2024. It was closely followed by fintech startups with $9.9 Bn funding during the same period. Travel tech came in a distant third with $5.2 Bn in funding.

What’s In Store For 2025?

The year 2025 is expected to bring mixed tidings for startups based out of Delhi NCR, with a few sectors likely to be in focus.

As per Krishna, the ecommerce sector, particularly D2C brands, will continue to attract investors.

On the other hand, Jain believes that a number of climate tech and mobility startups call Delhi NCR their home, and these startups will secure funding this year. He cited the example of Battery Smart, which raised $65 Mn in its Series B round in 2024.

Besides, quite a few new-age tech companies from the region, including PhysicsWallah, OfBusiness, boAt, and OYO, are expected to list on the bourses this year. This is likely to translate to heightened investor interest in pre-IPO startups.

“With successful exits from Delhi-NCR-based startup IPOs last year, investor sentiment remains positive,” Jain said. “There’s a growing bullishness around pre-IPO companies and Series A startups expected to go public in the next 3-4 years. Family offices are also actively scouting for deals in pre-IPO rounds,” he added.

[Edited By Vinaykumar Rai]

The post Delhi NCR Slips To Third Spot In Startup Funding With $2.3 Bn In 2024 appeared first on Inc42 Media.

At the outset of 2024, things appeared bleak for India’s SaaS sector. SaaS startups experienced a massive funding decline in 2023, dropping to 2019 levels at $1.6 Bn. This sharp decline came after the funding boom of 2021 and 2022, when Indian SaaS startups raised a whopping $5.3 Bn each during the two years.

While things are still a far cry from the funding boom era, it appears that the sector is now on the recovery path, much like the broader Indian startup ecosystem. In 2024, SaaS startups in India raised a cumulative $2.1 Bn in funding, marking a year-on-year (YoY) growth of 31.25%, according to Inc42’s ‘Indian Tech Startup Funding Report 2024’. Alongside the funding increase, the deal count also rose 5% YoY to 207 deals.

So, what fuelled the uptick in funding numbers? The rise of artificial intelligence (AI) disrupted the sector as VCs rushed to invest in AI-driven startups and companies. In addition, Indian SaaS players have always been a mainstay of investors on account of their offerings catering to global audiences as well as a high-quality and affordable talent pool in the country.

However, the recovery remains modest. The caution in SaaS funding stems from the lessons learnt by investors from the market correction after the boom of 2021. At the height of the capital-fuelled era of 2021, SaaS startups were often valued at inflated multiples, leading to bloated valuations.

According to Sanjay Swamy, managing partner at Prime Venture Partners, SaaS is at an inflection point now due to the impact of AI. However, investors are not as enthusiastic about investing in AI-driven sectors as they were earlier.

“Looking at 2024, and possibly parts of 2025, it seems people are becoming more cautious about placing big bets. The earlier wave of enthusiasm, where companies were rushing to invest in AI without complete clarity, has passed. While some cheques were written liberally during that time, the approach now feels more measured,” added Swamy.

As a result, caution prevails even though investor interest in the SaaS sector remains strong.

Median Ticket Size Remains Flat

Despite the increase in funding and deal count last year, the median ticket size for SaaS investments was almost flat at $2 Mn in 2024 as against $2.1 Mn in 2023. This was significantly lower than the $3 Mn and $3.2 Mn median ticket size recorded in 2021 and 2022, respectively.

Ashwin Raguraman, partner at Bharat Innovation Fund, attributed this decline to the overvaluations during the 2021 and 2022 period. He said investors had to write big cheques then to maintain the same level of ownership. Besides, there was ample liquidity then and a fear of missing out on lucrative deals.

Another reason for the decrease in median ticket size, compared to the previous years, is the rise of micro VCs in India, who are now writing more checks at the early stage. Raguraman said that there has been about a 50% increase in seed rounds compared to 2021-2022, as a result of which the SaaS ecosystem is seeing smaller fundraises.

The Transition In SaaS Market

Horizontal SaaS dominated the funding landscape in 2024, which is unsurprising. These startups bagged $1.3 Bn in funding, accounting for over 60% of the total funding. The deal count stood at 127, which was also more than 60% of the total deals.

In contrast, vertical SaaS startups raised $800 Mn in 2024, which constituted over 38 of the total capital bagged by SaaS startups last year. This trend was also reflected in the deal count, with vertical SaaS players closing 80 deals, or about 38.6% of the total deals.

For context, while vertical SaaS platforms cater to a specific group in a specific industry, horizontal SaaS players build solutions that have a bigger audience and diverse use cases spanning industries.

Despite vertical SaaS trailing, Prime Venture’s Swamy feels that it is becoming appealing because horizontal players are often too focused on large-scale opportunities to address niche markets. With AI, small to mid-market companies can now access tools and capabilities previously reserved for enterprises, he said.

“However, directly competing with these big players in horizontal SaaS feels risky unless the problem being solved was previously unaddressed. This is why vertical solutions remain attractive, especially in enterprise markets and the mid-market segment,” Swamy added.

Meanwhile, BIF’s Raguraman said that while the emergence of GenAI is now a significant driver, use cases and applications, which will ultimately propel the AI vertical, are still developing. While this layer has advanced rapidly globally, India is expected to see substantial progress in the coming years, he added.

He also noted that investments so far have been concentrated in the foundational and middle layers, such as observability and security, rather than the use case layer. Although a number of companies have emerged, the maturity of the sector is yet to be realised as the ecosystem continues to evolve at a rapid pace.

Raguraman said that significant traction in GenAI use cases might begin next year or the year after, adding that the investment in traditional workflow SaaS will continue to decline and more investment will go into AI-led SaaS.

According to a recent Inc42 report, vertical SaaS clocked an 18% compounded annual growth rate (CAGR) in terms of funding between 2018 and 2023, outpacing horizontal SaaS which grew at 10%. A similar trend was seen in terms of deal volume. The CAGR of deal count in vertical SaaS was 6% during this period compared to horizontal SaaS space’s 3%.

In the next six years, the vertical SaaS market size (based on total revenue) is projected to surge from $5 Bn to $26 Bn. Meanwhile, the horizontal SaaS space, currently valued at $9 Bn, is estimated to reach $44 Bn.

[Edited By Vinaykumar Rai]

The post SaaS Funding Jumps 31% YoY To $2.1 Bn In 2024 Amid AI Transition appeared first on Inc42 Media.

After hitting a seven-year funding low during the extended funding winter of 2023, the Indian startup ecosystem is showing steady signs of recovery in 2024. Total funding raised by Indian startups surged by 20% year-on-year (YoY) to $12 Bn, returning to levels last seen in 2020.

While the uptick in the overall funding has given the founders a reason to cherish, all while raising expectations of a better 2025, the key highlight of the 2024 funding trend was Mumbai toppling Bengaluru to become the most funded startup hub of the country, according to Inc42’s Indian Startup Funding Report 2024.

With a staggering 154% year-on-year (YoY) growth, Mumbai’s startup funding soared to $3.7 Bn in 2024, up from just $1.5 Bn in the previous year.

Notably, this increase can be attributed to Zepto’s multiple mega funding deals during the year. The quick commerce giant first raised $665 Mn in its Series F funding round in June 2024, almost doubling its valuation from $1.5 Bn to $3.6 Bn.

Following this, the quick-commerce major raised $340 Mn in August and another $350 Mn in November. With this, Zepto accounted for 37% of the total funding raised by Mumbai in 2024.

It is important to note that Zepto moved its base to Bengaluru from Mumbai this year. However, its funding rounds have been attributed to Mumbai to maintain data consistency.

Mumbai Leads In Ticket Sizes But Lags In Deal Volume

Per Inc42’s latest report, Mumbai also outpaced Bengaluru in median ticket sizes, up 15% YoY to $3.4 Mn. However, the city lagged behind Bengaluru in terms of deal count.

Mumbai saw only a modest 4.5% growth in funding deals in 2024, with 175 transactions materialising during the year. In comparison, Bengaluru retained its position as the leader, recording 285 deals, up 14% from the 249 deals locked in 2023. The Delhi NCR region also outpaced Mumbai with 252 deals.

“Mumbai is undeniably an important hub, but certain factors have worked against the city. Big companies like Zepto moving out of Mumbai will have a significant impact. Previously, Ola also moved its base to Bengaluru from Mumbai. An ecosystem doesn’t flourish if major players don’t stay there after scaling up. When these companies scale, they need talent, but the lack of talent in the city at an affordable cost keeps hurting Mumbai’s prospects,” Rajesh Sawhney, the founder of GSF Accelerator, said.

Late Stage Funding Thrives But Base-Level Activity Remains Low

Mumbai witnessed a notable uptick in growth-stage funding and deal count in 2024. Growth-stage startups in the city raised $472 Mn+ in 2024, an increase of 28% YoY. The deal count also grew 67% YoY to 50 deals.

Besides the growth stage, late-stage funding in Mumbai experienced a 206% YoY surge to $3 Bn+. In addition, the number of late-stage deals surged 16% to 29 in 2024.

Among the top 10 funding deals in the Indian startup ecosystem in 2024, four came from Mumbai. Alongside Zepto, Mumbai-based startups PharmEasy, Eruditus, and Rebel Foods secured significant investments.

Healthtech unicorn PharmEasy raised $216.2 Mn in a down round led by the family office of Manipal Group chairman Ranjan Pai in April 2024. Edtech unicorn Eruditus followed in October, securing $150 Mn in a Series F round led by TPG’s global impact investing platform, The Rise Fund. In December, cloud kitchen unicorn Rebel Foods bagged $210 Mn in Series G funding led by Temasek.

In contrast, early-stage funding in Mumbai saw a 21% YoY increase, reaching $137 Mn in 2024. Meanwhile, the number of early-stage deals declined by 13% to 70.

“Mumbai is losing talent and startups to Bengaluru, as most new founders come from larger startups or big tech companies. As large companies are moving out of Mumbai, future entrepreneurs are also moving out. Despite having the largest pool of capital, the city lacks enough new startups, leading to low seed-stage activity,” Sawhney said.

But What’s In Store For Mumbai-Based Startups?

The founder of GSF Accelerator added that consumption remains high in Mumbai, and the city continues to be a financial hub, with Bollywood, entertainment, and media industries at its core. As a result, sectors like media tech, D2C brands, and other innovations are likely to emerge from the region.

The Maharashtra government is also taking many initiatives for startups. Maharashtra’s industries minister Uday Samant has said that the state is looking to expand its startup portfolio from the current 8,300 to 50,000 soon.

On the brighter side, startups are increasingly looking at Maharashtra as a key destination for setting up their manufacturing units, fuelled by the state’s proactive government initiatives. Last year, Ather Energy, an IPO-bound electric two-wheeler maker, announced plans to establish its third manufacturing facility in the state to produce e-scooters and battery packs.

In another significant development, Maharashtra’s cabinet approved Adani Group’s proposal to set up a $10 Bn semiconductor manufacturing plant in collaboration with Israel’s Tower Semiconductor, further bolstering India’s ambition to become a global hub for chip manufacturing.

Maharashtra’s startup ecosystem is also seeing a boost from IIT Bombay’s Society for Innovation & Entrepreneurship (SINE), which is launching an INR 100 Cr, maiden VC fund to support tech-focused startups. With these strategic investments and initiatives in place, the future of startups in Mumbai looks promising despite the challenges it is facing.

[Edited by Shishir Parasher]

The post Mumbai Surpassed Bengaluru As India’s Most Funded Startup Hub In 2024 appeared first on Inc42 Media.

After hitting a historic low in 2023, the Indian startup ecosystem showed promising signs of recovery in 2024. The total funding raised by Indian startups jumped 20% year-on-year (YoY) to $12 Bn in 2024, reaching levels similar to 2020. However, Bengaluru, the undisputed startup hub of the country, saw a decline in funding and the city lost its top position to Mumbai.

According to Inc42’s ‘Indian Startup Funding Report 2024’, the funding raised by Bengaluru-based startups declined 19% year-on-year (YoY) to $3.4 Bn. This drop brought the city’s funding figures to the levels last seen in 2015. Meanwhile, Mumbai surpassed Bengaluru as the top city for startup funding, thanks to high-profile deals like Zepto’s mega funding round. Startups based in the country’s financial capital raised $3.7 Bn in 2024.

It is important to note that Zepto moved its base to Bengaluru from Mumbai this year. However, to maintain data consistency, its funding rounds have been attributed to Mumbai.

However, despite the decline in funding, Bengaluru was the leader in terms of funding deals in 2024. The city recorded 285 deals in 2024, an increase of 14% from 249 deals in 2023. The challengers, Delhi NCR and Mumbai, saw 252 and 175 deals materialise, respectively, in 2024.

According to startup ecosystem experts, the funding dip in Bengaluru should not be read as a sign of waning investor interest. They pointed out that the high deal count highlights a thriving ecosystem of early stage startups in the city.

Bengaluru Remains Top Early Stage Startup Hub

“Most early stage startups – pre-seed, seed, and Series A – are concentrated in Bengaluru. Meanwhile, growth stage startups are skewed towards Delhi NCR and Mumbai. Late-stage funding activity is more prominent in these two hubs. Moreover, public market interest is centred around Delhi and Mumbai, too. Hence, the funding amount is lesser in Bengaluru,” said WEH Ventures partner Rohit Krishna.

He added that most of the startups which are around Series C stage are currently focussed on achieving profitability and not raising capital.

As per the Inc42 report, Bengaluru witnessed notable growth in seed-stage funding and deal count in 2024. Seed stage startups in the city raised $268 Mn in 2024, an increase of 26% YoY. The deal count also grew 4% YoY to 114 deals.

In contrast, growth-stage funding in Bengaluru experienced a 16% YoY decline to $949 Mn. However, the number of growth-stage deals surged 20% to 64 in 2024.

Late stage funding also presented a mixed picture, with deal count declining 18% to 32 deals. However, the total funding amount soared to $2.1 Bn, an impressive 88% YoY growth.

Anup Jain, former managing partner of Orios Venture Partners and founder of BlueGreen Ventures, said that late-stage funding deals could make a strong comeback in Bengaluru in 2025. He cited the phenomenon of startups flipping back to India, including Razorpay, which has its office in Bengaluru, as one of the reasons for this.

It is pertinent to note that Razorpay is in the process of moving its base to India and the exercise is expected to be completed in the ongoing fiscal year.

On the decline in funding in Bengaluru, Jain said that the increasing focus of startups on IPOs is among the key reasons behind this.

“This year has been relatively mild for the overall private investment market, with a larger focus shifting towards IPOs. For venture capital firms, the primary focus has been on exits rather than fresh investments. The decline in funding can also be attributed to internal investors prioritising secondary deals, and the increasing number of companies heading to IPOs, many of which are based in Delhi NCR,” he said.

Hottest Sectors Of Bengaluru

Enterprise tech has emerged as the top sector in Bengaluru over the last decade, followed by fintech, ecommerce, healthtech, edtech. Enterprise tech startups bagged 753 deals between 2014-2024, followed by fintech and ecommerce startups with 603 and 488 deals, respectively. Similarly, healthtech and edtech startups bagged 368 and 246 deals, respectively, during this period.

This trend continued in 2024 as well, with Bengaluru-based enterprise tech startups securing mega funding deals. While digital infrastructure solutions startup iBUS raised $200 Mn (about INR 1,658 Cr) from National Investment and Infrastructure Fund (NIIF), SoftBank-backed B2B SaaS startup Whatfix secured $125 Mn (around INR 1,045 Cr) in its Series E funding round led by Warburg Pincus. These two deals were also among the top 10 funding deals of 2024.

What’s Next For India’s Silicon Valley?

While enterprise tech continues to dominate Bengaluru’s startup narrative, healthtech experienced a significant boom in 2024, according to WEH Ventures’ Krishna.

For context, Bengaluru-based healthtech startups saw some major funding rounds this year. While Healthify (formerly HealthifyMe) raised an additional $20 Mn to close its Pre-Series D round at $45 Mn, Orange Health secured $12 Mn in a funding round led by Amazon Smbhav Venture Fund. 4baseCare raised $6 Mn in its Series A round led by Yali Capital.

Krishna said that the healthtech sector saw a notable surge in investments, especially at the early stage, over the past six months. Additionally, Zepto’s success has reignited investor interest in consumer tech startups, while vertical AI has also emerged as a promising area of focus.

Meanwhile, Jain believes that D2C startups, along with consumer tech, are seeing considerable interest from investors.

Amid all these, the Karnataka government continues to take proactive steps to boost the startup ecosystem in the state. Earlier this year, it launched a VC fund of INR 20 Cr to invest in animation, visual effects, gaming, and comics (AVGC) startups.

A few months ago, Karnataka’s IT and biotechnology minister Priyank Kharge said that the state is expected to attract $6.2 Bn in investments from the US and Europe across key technology sectors, including biotechnology, AI, semiconductors, AVGC, and healthtech.

Kharge also proposed the creation of a deeptech innovation cluster in Bengaluru, urging collaboration between the Karnataka Digital Economy Mission and NASSCOM to help scale up startups in the deeptech sector.

All in all, the sentiment remains skewed towards Bengaluru. Favoured by local regulatory push, availability of high-quality talent pool and proximity to prominent VCs and PEs, the startup hub continues to be a breeding ground for entrepreneurial activity and is well-poised to continue its dominance as the home of the biggest names in the Indian startup ecosystem.

[Edited By Vinaykumar Rai]

The post Despite A 14% Increase In Deals, Bengaluru Startup Funding Drops To A 9-Year Low In 2024 appeared first on Inc42 Media.

The love for gaming is evident among young Indians, especially those coming from Generation Z, but after a relatively meek 2024, gaming startups would be hoping for a turnaround in fortunes in 2025.

In fact, India is one of the largest markets for gaming companies, with close to 600 Mn active gamers in FY24, according to gaming investor Lumikai.

However, this growth was tempered with regulatory uncertainty that emerged in 2023 and new taxation rules for real money gaming, which caused a stir among startups. While console, PC and casual mobile gaming was unaffected by these regulations, the overall investor sentiment for Indian gaming startups — largely driven by fantasy sports and RMG — was dampened.

According to Lumikai, the Indian gaming market generated $3.8 Bn in revenue in FY24, marking a 23% increase compared to $3.1 Bn in FY23. Real money gaming was the largest revenue driver, contributing $2.4 Bn to this total, but in-app purchases or microtransactions were the fastest-growing segment, up 41% YoY in FY24.

By FY29, Lumikai estimates in-app purchases, with a CAGR of 44%, to surpass RMG revenue. This indicates a gradual yet steady shift towards casual and hyper-casual gaming in India, which is perhaps one of the major trends we foresee in the gaming startup ecosystem in 2025.

What’s In Store For Indian Gaming Startups In 2025

“If we look at new media, its key constituents include gaming, video, TV, social animation, VFX, and audio. Gaming now constitutes 30% of this $12.5 Bn market. There has long been a perception that the market is dominated solely by real-money or skill-based gaming. However, a more holistic view reveals significant growth driven by in-app purchases and ad-based revenue,” Salone Sehgal, founding general partner at Lumikai told Inc42.

Sehgal believes that the upcoming new age for gaming will lift related industries such as animation and VFX as well as content creation.

So, although 2024 began on a gloomy note for the Indian gaming industry, the ecosystem found its footing by the end of the year, as funds started trickling back in for certain startups outside the RMG fold.

For instance, Mayhem Studios, the mobile game development arm of the gaming unicorn Mobile Premier League, raised undisclosed capital in a fresh funding round from gaming-focused VC firm Lumikai.

Similarly, LightFury Games, founded by former Unacademy CMO Karan Shroff, secured $8.5 Mn in seed funding led by Blume Ventures. Following this, In October, gaming studio Funstop Games raised $5 Mn in its Series A funding round.

The emergence of GenAI for content and asset creation has also spurred game development significantly, and this is only expected to exponentially increase in markets such as India, where development resources and talent are scarce.

As we move into 2025, the growth of mid-core gaming in India is expected to accelerate, with more studios emerging on the scene. Moreover, with the increasing number of gaming PCs and the transition of mobile gamers to these platforms, cross-platform gaming is expected to grow significantly.

The question on everyone’s minds is: will 2025 be the year where India finally shows its latent potential when it comes to the gaming industry? Here are our predictions for the gaming industry for 2025 based on what experts and investors believe.

Gaming Investment To Rebound In 2025

After 2023 saw a massive drop in gaming investments, the first half of 2024 also experienced a slowdown. However, the second half already showed improvement. Now, the investment climate for gaming in 2025 is poised for a rebound.

Increased confidence in hybrid monetisation models and the success of emerging markets including India will fuel this rebound, according to experts.

Gaming-focussed investors are likely to favor startups focusing on niche genres or innovative delivery platforms, such as cloud streaming and AI-powered game personalisation.

According to said Anuj Tandon, partner at Bitkraft Ventures, a US-based early-stage investor that recently established a base in India, this market is one of the few bright spots in the global market, with irreversible momentum in mobile gaming and overall video games.

“Globally, I believe M&As are making a comeback in gaming, which will spur the industry’s flywheel and lead to more early-stage investments worldwide. In India, I foresee mobile content, interactive media, cross-platform games, games for new platforms such as Roblox and UEFN, and gaming tech including AI receiving more investments in 2025,” he said.

Lumikai’s Sehgal echoed this sentiment. According to her, as global markets like North America face a slowdown, emerging markets like India and Southeast Asia are poised to attract more investments. She noted that Lumikai invested in eight gaming startups in 2024, including QuriousBit, Bombay Play, and Studio Sirah.

“A number of global investors have partnered with us, and there is significant interest in Indian startups and Indian entrepreneurs. While growth in global markets is slowing, India continues to grow rapidly. In particular, the interactive media and gaming sector is experiencing double-digit CAGR growth rates, which are not being observed elsewhere in the world. This has generated substantial enthusiasm from both domestic and international investors,” she said.

GenAI Catalyses Game Development

Generative AI has captured the attention of the world, and it’s true for gaming too. For example, game developers have already started using gen AI tools such as Claude AI, Cursor, and DALL-E 2.

Apart from generating design elements, on the more experimental front, AI can assist in creating open-world games and real-time design elements, enhancing the development process and reducing dependency on large teams, Sean Hyunil Sohn, CEO, KRAFTON India, added.

Gen AI is also helping in marketing by automating ad creatives besides development.

Within game development, developers are using AI for level personalisation, adaptive game mechanics, and smarter non-play character (NPC) behaviours. The use of AI-powered platforms are helping game developers to create richer experiences with reduced time and resources, Nitish Mittersain, joint MD and CEO of listed giant Nazara Technologies, said.

India lacks a long-standing culture of game development compared to other countries, as the industry here is still relatively new. Hence, finding the right talent has always been a challenge in the market. But the rapid advancements in AI tools are bridging this gap, according to Roby John, founder of gaming studio Supergaming, which launched battle royale game Indus in 2024.

“We see AI as the perfect co-developer—augmenting human capabilities rather than replacing them. It’s a tool that complements and enhances our efforts, making the development process faster and more efficient,” Supergaming’s John added.

Casual Hyper-Casual Gaming To Continue Domination

The innovation in AI and cloud-based tools is expected to benefit AAA game development largely because of the resource-intensive nature of development, but casual game development will also see a big boost.

By slightly reducing production costs, these innovations may encourage studios to reinvest in high-budget projects. This comes at a time when India saw the launch of two homegrown AAA titles- ‘Indus Battle Royale’ and ‘Rage Effect: Mobile’ in 2024.

LightFury Games, which raised funds in 2024, is also looking to develop AAA titles, which typically target the latest generation of gaming hardware, and take several years to develop.

“While AAA game development will see some resurgence driven by next-gen hardware capabilities, the industry will remain cautious due to the high costs and risks associated with blockbuster titles. Instead, a hybrid approach is likely to dominate, where AAA-level experiences are delivered through episodic content or expanded DLCs. Smaller, cost- efficient games with hybrid casual mechanics will continue to thrive due to their quick turnaround and ability to capture broad audiences,” Felicity Games’ Choudhary added.

Despite the demand for cinematic and immersive experience, the trend toward hyper-casual and mid-core games will continue to dominate as these genres are proving to offer a higher ROI, making them particularly attractive to mid-sized studios and emerging developers.

As investors increasingly favour cost-efficient titles, gaming studio founders are also focussing on casual gaming currently. However, according to one gaming startup founder, there is some risk involved in developing AAA titles while relying on casual games for generating revenue, since one cannot completely abandon development of the casual game either.

Cross-Platform Gaming To Grow

Along with transition in game development, gamers’ behaviour is also evolving. While India remains primarily a mobile-gaming market, the demand for gaming PCs and consoles is steadily increasing.

Companies like Asus are making significant bets on gaming PCs, while US-based CyberPowerPC entered India this year to offer customised gaming PCs. Additionally, Backbone, an American company, has entered the market with Backbone One controller, which turns mobiles into handheld gaming consoles.

Hence, cross-platform gaming is gaining significant traction in India, driven by the growing demand for seamless experiences across mobile, PC, and console platforms.The rise of cloud gaming services is also fuelling this growth, enabling gamers to access high-quality games on various devices, regardless of hardware limitations, Krafton India CEO said.

As seamless gaming experiences across mobile, PC, and console platforms will become more prevalent, developers will have to focus on unifying gaming ecosystems, allowing players to access their progress and assets on any device, Nazara’s Mittersain said.

Gaming Partnerships Will Become A Lever

Besides cross-platform gaming, cross-sector partnership is also becoming more prominent in the gaming ecosystem. While gaming has not been considered as a part of traditional media, the lines are blurring gradually.

Partnerships with OTT platforms, film industries, and entertainment sectors are driving transmedia storytelling, enabling licensed gaming IPs to expand into movies, series, and even live events, as per experts.

For example, KRAFTON has collaborated with Bollywood stars like Ranveer Singh and Deepika Padukone for broader audience appeal. On the other hand, OTT platforms are also embracing gaming increasingly. For example, this year JioCinema released a 6-part Poker focused reality TV series, Poker Masterclass with PokerBaazi.

Beyond entertainment, partnerships are driving innovation in education and healthcare. Gamified learning platforms, powered by AI-based adaptive learning systems, are making education more interactive and engaging. Similarly, the healthcare sector is leveraging gaming technologies for mental health therapy, physical rehabilitation, and fitness, with wearables and AR/VR enabling immersive, health-focused experiences. Hence, corrs-media partnership is expected to emerge as more common in 2025.

New Monetisation, In-App Purchases To Grow Rapidly

Keeping in pace with the growth of gamers and new formats, monetisation opportunities are also growing in India. In-app purchases continue to thrive, with developers leveraging personalised microtransactions to engage users through cosmetic upgrades, power-ups, and unique experiences. In-app purchase emerged as the fastest growing segment with 41% year-on-year growth in FY24 to reach $600 Mn revenue in the financial year, according to the Lumikai report.

“We’ve seen three primary forms of monetisation emerging in the gaming industry: in-app purchases or microtransactions, ad-based monetisation, and the growing trend of virtual gifting and tipping. For instance, one of our portfolio companies is thriving solely through virtual gifting and tipping, a model experiencing remarkable growth,” Lumikai’s Sehgal said.

According to her, this shift has been largely facilitated by UPI, which has eliminated the friction of entering debit or credit card details. UPI has unlocked the potential of microtransactions, enabling first-time users to pay seamlessly. Microtransactions as low as INR 29 have become the preferred entry point for new players.

Interestingly, on the higher end of spending, subscription-based models like Xbox Game Pass and PlayStation Plus are also gaining popularity as players look for affordable access to vast game libraries.

In addition, reward-based advertising is also becoming a staple for free-to-play games, ensuring steady revenue without disrupting the player experience. With the rise of cloud gaming, pay-per-use and time-based models are also emerging, redefining how games are monetised in India, according to industry experts.

Real Money Gaming Is Not Dead

Over the past year, casual and mid-core gaming have dominated discussions in the gaming industry. Meanwhile, real money gaming, the largest segment in India’s gaming market, appears to be on the back foot. While it may seem that the industry is struggling, the numbers tell a different story.

According to a Lumikai report, RMG platforms added approximately $400 Mn to their topline in FY24, driven by absorbing users’ GST costs and a packed live sports calendar featuring two cricket World Cups and an IPL season. However, despite the topline growth, taxation challenges in the RMG sector led to margin compression and negatively impacted profitability.

“What’s more positive is that larger companies have become more financially responsible, focusing on sustainable business models and controlling losses. Although they have to absorb GST costs and offer some discounts to retain players, they are cutting costs in other areas.” according to a high-level executive at an RMG startup.

India’s fantasy and overall RMG market has proven resilient in 2024. While there has been a slowdown in startups within the RMG sector, the incumbents have continued to grow. Despite the challenges posed by retrospective GST taxation issues, which remain an overhang on regulations, resolving these concerns in 2025 could unlock significant liquidity for investors, employees, and other stakeholders, according to BitKraft’s Tandon.

With strong macroeconomic conditions and growing retail enthusiasm for new-age businesses, some RMG companies may even consider going public and launching IPOs, he added.

[Edited by Nikhil Subramaniam]

The post Will GenAI Change The Game? Gaming Predictions For 2025 appeared first on Inc42 Media.

Cloud kitchen startup Biryani By Kilo narrowed its net loss by 30% in the fiscal year 2023-24 (FY24) on the back of growth in its top line and improvement in margins. The Delhi NCR-based startup posted a loss of INR 70.81 Cr during the year as against INR 100.7 Cr loss it incurred in the previous fiscal year. 

Biryani By Kilo’s revenue from operations jumped 23% to INR 268.30 Cr from INR 218.10 Cr in FY23. Including other income, total revenue rose 22.8% INR 272.2 Cr from INR 221.75 Cr in FY23.

Founded in 2015 by Vishal Jindal and Kaushik Roy, Biryani By Kilo sells biryanis, kebabs, kormas, and desserts. It has raised a total funding of about $52 Mn till date and counts Falcon Edge Capital, IvyCap Ventures, among others, as its investors.

Last month, Inc42 reported that the startup raised $2 Mn from Dubai-based investment firm Pulsar Capital.

Biryani By Kilo claims to have over 100 outlets across the country, including in major cities such as Bengaluru, Hyderabad, Kolkata and Delhi-NCR. It offers deliveries across more than 45 cities. 

Zooming Into The Expenses

Biryani By Kilo managed to control the rise in its expenditure in FY24. Despite an over 20% growth in its revenue, total expenses rose only 7.7% to INR 346.18 Cr from INR 321.39 Cr in FY23.

Cost Of Materials Consumed: The biggest expenditure for the startup was the cost of materials. It spent INR 111.18 Cr under the head in FY24, an increase of 16.7% from INR 95.29 Cr in the previous year.

Employee Benefit Expenses: Employee costs declined 11.3% to INR 69.94 Cr in FY24 from INR 78.89 Cr in FY23. This indicates that the startup might have reduced its headcount during the year under review.
Advertising Expenses: In a bid to cut its losses, Biryani By Kilo trimmed its advertising and promotional expenses by 14.8% to INR 28.08 Cr in FY24 from INR 32.97 Cr in the previous fiscal year.

Biryani By Kilo competes with the likes of Rebel Foods, Charcoal Eats, Licious, among others, in the cloud kitchen market. The Indian cloud kitchen market is expected to clock a CAGR of 16.7% and reach a size of $2.84 Bn by 2030 from $1.13 Bn in 2024.

The post Biryani By Kilo’s FY24 Loss Declines 30% To INR 71 Cr appeared first on Inc42 Media.

India will bid for the 2030 Summer Youth Olympics and aspires to host the 2036 main event, announced youth affairs and sports minister Mansukh Mandaviya a couple of months ago. But in spite of a rising focus on games, sports and fitness, the country’s sports ecosystem struggles to produce global medallists. Although we have seen improvements in urban areas, rural and semi-urban regions remain vastly underserved.

The outcome could be alarming. According to a 2023 survey by PUMA India and analytics firm Nielsen Sports, Indian kids spent 86 minutes per week on sports and fitness-related activities against WHO’s recommendation of 420 minutes or more. It was even less than the Indian adults who spent 101 minutes in these activities per week, the survey said.

Globally, the scenario is quite different. In the US, the EU, Australia and similar countries, well-established funnels guide sports development from the age of three to the professional level. But India’s transformation to a true sporting nation through disruptive changes in youth sports is still a far cry. Of course, random sports academies have popped up. However, a well-structured and tech-driven pan-India initiative in the private sector is not happening at scale.

Set up by former DealShare cofounder Sourjyendu Medda and former Cartesian employee Armaan Tandon, Sports For Life (SFL) wants to change India’s youth sports culture and bring forth potential talent who may excel in different sports streams. The mission is to nurture young people’s passion for various sports and create a roll-up model for private sports academies to ensure long-term viability. For context, a roll-up strategy is about acquiring smaller entities within a specific sector and turning them into a consolidated business to reduce operational costs and maximise revenue.

SFL is Medda’s second entrepreneurial venture, the fruit of a long-standing connection with Tandon. The two had been acquainted for years, frequently sharing their views on various subjects, and recognised their shared vision for youth sports development. After stepping away from the day-to-day operations at DealShare (where he still retains a 7% stake), Medda began exploring new opportunities and eventually joined forces with Tandon.

Sports For Life has initially identified six core sports streams based on their popularity, high participation levels and sound commercial viability in the Indian context. These include cricket, soccer, badminton, lawn tennis, table tennis and basketball. The startup may also add swimming and martial arts to its portfolio to attract a broader audience.

Although headquartered in Bengaluru, SFL has strategically chosen Mumbai as its launch city, with plans to expand to Bengaluru and Delhi NCR in the next phase. It has already acquired a stake in a soccer academy and is finalising documents to part-own a lawn tennis coaching centre. Discussions are also under way regarding investments in a cricket and a basketball academy.

The 10-month-old sportstech startup recently raised $1.5 Mn from a clutch of investors, including Blume Ventures, Roots Ventures and Kunal Shah’s QED Innovations Lab. It also received backing from Tandon Group chairman Manohar Lal Tandon’s family office and others.

What’s Missing In India’s Youth Sports Training

According to Medda, while professional sports leagues like the Indian Premier League (IPL) and the India Super League (ISL) have attracted the country’s largest conglomerates such as the Reliance and the Jindal groups, the youth sports segment remains unorganised and lacks adequate funding. The funnel creation for the formative years, between three to four years and 16–18, is where the real gap lies.

“Take the fitness industry as an example. About eight years ago, gyms were largely unorganised. Today, we see something very similar in youth sports. There are a lot of small, unorganised academies doing good work, but there isn’t a single branded player operating at the national level. No one is offering top-tier facilities, services and technology even to the upwardly mobile urban takers who love sports and are ready to pay for a premium experience,” said Medda.

“Parents today are looking for the right coaching and related expertise for their kids. The market for youth sports training and associated services is huge. In the US, it’s a $30 Bn market per annum. As for India, it currently stands at $1 Bn and is growing exponentially. I believe this market will grow to anywhere between $3–5 Bn in the next five years,” he added.

How Sports For Life Aims To Transform Mid-Tier Academies, Enhance Coaching

India is home to around 30K sports academies for children and youth. At the top of the rung are 100–150 academies run by world-famous sports personalities such as Prakash Padukone, Pullela Gopichand and Dibyendu Barua. These academies cater to professional sportspersons performing at the district, state, or national level. However, this creamy layer only contributes 5–10% of the existing market. The long tail of this segment is the other end of the spectrum, around 25–27K smaller setups, each run by one or two coaches and training 10–50 young people.

Sports For Life does not target either of these segments and only explores the mid-tier, a group of 2–3K well-established centres operating nationwide. Run by 15-30 coaches, usually former state or national players passionate about sports training but not celebrities, these academies have been well-recognised brands in their micro-catchments for the past five to 10 years. They operate two to three centres in a city and typically train 300–500 at any given time in the sports they specialise in.

These mid-tier academies also generate an annual turnover of INR 2–4 Cr, contributing up to 50% of the current market.

“The academy owners are often well-educated and ambitious. They understand the importance of technology and scaling but lack the resources to build it themselves,” said Medda. “So, here is SFL’s opportunity to provide advanced technology, branding and the infrastructure these academies need to expand and scale their operations on one unified platform.”

As the startup provides multisport training within a city, users need not hunt for different academies for different streams. In today’s market, no single brand offers access to high-quality coaching across multiple sports in the same catchment area. Sports For Life helps cope with this issue by collaborating with leading academies in each sport and offering users a unified option for all training needs.

Another key challenge the startup addresses is the lack of a digital ecosystem in existing academies. Most operate solely in physical spaces and feature no digital scheduling, communication, or feedback system. In contrast, the SFL app provides a comprehensive digital platform streamlining parent-coach interactions, class scheduling, performance tracking and financial transactions.

It has also introduced value-added services from nutritionists, physiotherapists, mental health specialists and others to ensure well-rounded training sessions. Modern sports science supports an interdisciplinary approach, making these services essential for sports success. However, individual academies cannot always provide these due to budget constraints. SFL makes these accessible through its integrated platform and brings global expertise to curriculum development by collaborating with overseas sports clubs.

Besides regular coaching, SFL arranges high-quality, tech-enabled tournaments, setting new standards for competition. These events will attract top teams, ensuring a high level of participation and incorporating live streaming, performance scorecards and highlight reels powered by AI.

SFL’s Cutting-Edge Strategies To Manage The ‘Business Of Sports’

Sports For Life’s business model revolves around a roll-up strategy for sports academies, similar to how Cult.fit consolidated unorganised gyms into a single, branded platform. Cult.fit brought existing gyms under one umbrella, offering standardised experiences, a standard technology platform and a unified curriculum. SFL seeks to replicate this success in the youth sports training segment by consolidating mid-tier academies that are already delivering high-quality sports training.

Simply put, the startup follows a strategic investment model, initially acquiring minority stakes in sports academies and gradually moving to controlling stakes within one to two years. This business strategy enables SFL to transform all partnering academies into fully integrated SFL Academies.

For its portfolio academies, Sports For Life provides growth capital to help them achieve scale and stay in the black. Most organisations struggle to expand beyond two or three centres that have opened over the years. However, SFL’s investment enables them to open multiple centres within a brief period, facilitating citywide and statewide growth, claimed Medda.

“The academies under SFL’s portfolio are inherently profitable, boasting 50% or more gross margins. To achieve EBITDA-level profitability, they need to scale their revenues by 1.5–2x, a milestone we plan to achieve within the first year of operational collaboration with academy founders. Beyond that, we aim to grow each academy by 7–10x its current scale in five years,” he added.

Meanwhile, the startup has a multifold revenue stream in place. It earns a part of the coaching and value-added service fees from its portfolio academies and generates revenue from its digital management platform and merchandise sales.

Additionally, it earns participation and hospitality fees from the tournaments it arranges. SFL designs these tournaments as high-quality and tech-enabled popular sports meets, which can attract top-tier teams and lucrative corporate sponsors as these culminate into state- and national-level events.

The startup also partners with educational institutions and corporations to offer sports training and recreational activities, earning fees from these affiliations. In addition, it collaborates with housing societies and live-stream programmes for a fee.

India Has Talent; Can Sports For Life Create A Generation Ingrained In Sports?

Sports For Life has ambitious plans and is keen to meet success halfway to ensure quick culmination and growth. Although the founders would not comment on this, the startup’s strategy to explore mid-tier academies underscores tapping into talent without delay and gaining financial leverage at the earliest. Understandably, sports coaching at the grassroots level will be out of bounds for a single private sector organisation.

To make the best of the available facilities, SFL plans to acquire at least one high-quality academy for each sport in Mumbai, providing young users easy access to trusted and well-managed academies in their city. It will expand its operations to the top 30 Indian cities in the next five years, democratising access to excellent coaching/sports training.

The growing market for sports training will be an added fillip to SFL and its ilk, leading to a substantial opportunity for sports academy roll-up in India. Although the India market projections for the next decade are not immediately available, globally, the sports training market is estimated to reach $50.7 Bn by 2035, from $27.8 Bn in 2023.

Plus, there will be further scope for growth. A significant portion of India’s sports fan base is Gen Z, who engage in soccer and hockey or traditional games like kabaddi and kho-kho. This shift in fandom also underscores a large, untapped market for new and emerging sports leagues. It means more discipline, increasing coaching opportunities and better monetisation across multiple sports streams. Whether Sports For Life can rise to the occasion and utilise an evolving market remains to be seen.

[Edited by Sanghamitra Mandal]

The post Will This DealShare Cofounder’s Bold Plan Be A Game-Changer For Youth Sports Training? appeared first on Inc42 Media.

Tasked with moving goods from warehouses or fulfilment centres to the next point before reaching the end user, the middle mile or mid mile is often an overlooked stage in the supply chain process.

This stage involves transporting items in bulk and managing logistics between facilities. Unlike the last mile, which directly impacts the customer experience, the middle mile stage deals with large-scale transportation, inventory handling and dispatching. 

Mid mile is often referred to as the backbone of the supply chain, as it keeps the supply chain moving. However, optimising this phase can be extremely challenging due to the complexities that envelop it. Consider the growing pressure to meet demands of speed, accuracy and efficiency amid rising costs and dull visibility due to multiple carriers and siloed systems. 

Additionally, elements like labour shortages, increased warehousing costs, and a lack of appeal in physical, repetitive work make it increasingly difficult to maintain efficient and consistent mid-mile operations.

This is exactly where Traqo steps in. Founded in 2022 by Mukesh Deogune (now a third-time founder), Traqo specialises in resolving mid-mile and long-haul logistics gaps by automating freight procurement, planning, tracking, finance, and providing full visibility into operations. Simply put, Traqo is a third-party logistics management platform for manufacturers that provides visibility across the mid-mile freight cycle.

The startup would initially provide live camera devices for the logistics industry but soon realised that focussing on hardware required substantial funding, and the market was not ready for this big a leap yet.

However, this all began in 2020, right after Deogune completed his graduation, when he cofounded Signo to streamline driver management for companies. But with the onset of Covid-19, the business evolved into a service-oriented model, managing payroll for drivers and logistics staff, along with offering a full-stack logistics solution. 

While Signo grew, Deogune became involved more in operations than tech, which was a shift from his passion for product development. Therefore, he decided to move on.

Leveraging his experiences, Deogune decided to address gaps in the logistics industry, specifically in the mid-mile logistics space. 

“When analysing the supply chain, I noticed a specific problem in the mid-mile logistics segment that hadn’t been addressed. The mid-mile segment remains a complex area with multiple stakeholders in a single value chain,” Deogune explained the rationale behind incorporating Traqo, which came into being in 2022.

Speaking with Inc42, Deogune said mid-mile operations, spanning 100-200 Km, of the logistics chain are often underserved and complicated due to the involvement of multiple stakeholders. 

Therefore, Traqo identified manufacturers who rely on third-party logistics vendors, as these manufacturers often deal with a mix of national and local vendors, and, in doing so, face challenges in managing logistics operations. This is how the Traqo founder said that his tech unclogs the mid-mile supply chain bottleneck.

A Glance At Traqo’s Tech Stack 

Traqo aims to automate logistics operations entirely, replacing manual coordination with a platform that seamlessly integrates with order management systems. The tech allows manufacturers to automate vendor selection, communication, and even bidding through reverse auctions, where vendors compete for routes.

Further, Traqo simplifies and automates third-party logistics management for manufacturers. It is largely focussed on sectors like building materials, steel, furniture, and plywood, as well as the ones that are hugely dependent on a complex network of logistics vendors.

Traqo enables manufacturers to streamline their logistics by replacing manual processes with a fully integrated, automated platform. The platform syncs with the manufacturer’s order management system, pulling information on orders that need delivery, and then assigning suitable vendors to handle the shipments. Vendors are notified via WhatsApp, email, or other means, and they can even participate in a reverse auction, where they bid for delivery jobs, allowing manufacturers to save costs on transport.

The Traqo platform also optimises delivery planning by consolidating shipments to reduce costs. For instance, if two customers in the same area have smaller, separate orders, Traqo’s system can combine these into one larger shipment. This reduces the manufacturer’s freight costs by up to 50%.

The platform operates across three main modules — planning, tracking, and audit. The planning module ensures at least 15% cost savings in freight through efficient scheduling and route optimisation, while tracking provides end-to-end supply chain visibility, enabling real-time tracking of shipments to enhance transparency and accountability. The audit module manages documentation and performs audits on vendor payments, ensuring accurate and complete financial records. 

Is Traqo On Track? 

Initially, Traqo started with a small customer base, where the contract value was around $6K. As it expanded, the startup began serving clients with contracts in the range of $15-$20K, and now it claims to have customers paying up to $50,000 as annual contract value. Some of its current clients include prominent names such as Tata Hitachi, Tata Chroma, and Panasonic. 

“Although we are sector agnostic, we have developed particularly strong use cases in building materials. Companies in industries like furniture, cement, steel, and white goods benefit significantly from our solutions due to the specific logistics challenges they face,” the founder said.

Since its launch in 2022, the startup claims to have seen a 2.5X year-on-year (YoY) growth in revenue. In the first year of its operations, the company garnered INR 80 Lakh in revenues, and then grew to around INR 2.7 Cr the following year. The founder anticipates closing the current fiscal at approximately INR 5 Cr.

“For this financial year, we are focusing on key metrics that drive sustainable growth. These include expanding our customer base, increasing the annual contract value (ACV), and delivering the cost savings and efficiencies that we’ve committed to our clients. Additionally, maintaining our cost-savings impact of at least 15% for clients is essential to our long-term strategy,” Deogune said.

As of now, Traqo, which competes with Freight Tiger, Shipsy, LogiNext and the ilk, seems well-positioned to make the most of India’s expanding logistics market, poised to breach the $591 Bn mark by FY27. It also has a healthy list of more than 100 clients that use its platform to reduce logistics costs by automating day-to-day movement from vehicle procurement to payment settlements.

However, the startup seems to be restricting the potential of its tech by adhering to unclogging mid-mile bottlenecks only, especially at a time when numerous opportunities are mushrooming in the last mile paradigm with the explosion of quick commerce and 10-minute business models.

[Edited by Shishir Parasher]

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One of the most talked about developments in the country’s media and entertainment industry over the last year and a half has been the merger of Reliance’s media assets with Disney India.

Putting an end to months of speculation, the two giants officially announced the signing of binding agreements earlier this year to create a joint venture, merging Viacom18 with Star India Private Limited.

The combined entity is anticipated to host more than 100 TV channels and two of the country’s most prominent OTT platforms – Disney+ Hotstar and JioCinema. Initially, the merger was expected to be completed by the end of the third quarter of FY25, according to Reliance Industries’ quarterly earnings statement. However, recent industry chatters hint that it could be finalised as soon as this month.

As the two platforms come together, the attention has turned to how Reliance Industries Limited (RIL) plans to manage both platforms, especially with Disney+ Hotstar’s market leadership and JioCinema’s rapid rise.

While the situation largely appears skewed in the favour of the oil-to-telecom conglomerate, let’s explore priorities, opportunities and hidden challenges that this joint venture between the two media giants brings.

Content May Not Be The King Right Now

As of now, RIL is set to infuse INR 11,500 Cr into the joint venture — an investment that has raised concerns within the OTT industry. Known to disrupt any sector it enters, the capital infusion is expected to pave the way for more content on the platforms, leading to stiffer competition.

However, things are not that simple, even for a deep-pocketed giant like Reliance. As per industry sources, RIL is cautious about content spending, as this segment takes quite a long time to generate RoI. A Bollywood producer that Inc42 spoke with said that Jio Cinema has completely frozen the budget and is not striking deals with any producers.

A top priority right now is to manage the integration of two massive organisations with distinct corporate cultures. As per industry experts, a primary focus for both companies right now is balancing the power dynamics between their respective workforces and senior leadership teams. Besides streamlining the processes, the challenge is to align the visions of two media powerhouses.

Since the merger announcement, Disney+ Hotstar has seen several high-profile exits, signalling the complexities of the ongoing integration. Key figures like Sidharth Shakdher, former EVP and CMO of Disney+ Hotstar, left to join Ola Mobility before the merger was announced.

Recently, Sajith Sivanandan, head of Disney+ Hotstar in India, stepped down amid the integration efforts, following the report of K Madhavan’s, country manager and president of Disney Star, departure from the company.

According to multiple sources, more exits are likely as key executives adjust to new power dynamics and organisational changes.

On the other hand, Viacom18, part of Reliance’s media business, has been strengthening its leadership to handle the merged entity. Kiran Mani, a former Google executive with extensive experience in digital business, has been leading JioCinema for about a year. Additionally, Viacom18 has brought in another former YouTube executive, Ishan Chatterjee, as JioCinema’s new chief business officer.

However, Karan Taurani, the EVP of Elara Capital, sees it as a normal phenomenon during a merger. “When two major entities like Jio Cinema and Hotstar come together, there’s bound to be some overlap. However, the primary focus should be on user experience — how well Jio Cinema can match up to Hotstar. User experience will play a crucial role in subscriber retention and motivation,” Taurani said.

Need For A Highly Efficient Tech Stack

While Disney+ Hotstar already has a strong technological foundation, JioCinema, per industry sources, is currently focussed on bolstering its tech stack. Notably, JioCinema has often been criticised by users for lags during important sports events, issues with its user interface, and other technical shortcomings. Hence, before expanding its content offerings, JioCinema aims to ramp up its tech infrastructure to meet the expectations of its growing user base.

Amid all this, a key question has emerged — Which platform will absorb the other? Initially, there were discussions about Reliance running two separate OTT platforms. However, concerns over pricing, business models, and advertising rates led to complexities.

Now, RIL is planning to retain Disney+ Hotstar as the sole streaming platform, absorbing JioCinema in the process. This reshuffle positions Disney+ Hotstar as the primary streaming service for the combined entity, with plans to stream the Indian Premier League (IPL) 2025 on Disney+ Hotstar.

An industry executive noted that maintaining two platforms won’t be sustainable, given the content and maintenance costs. It would be challenging to generate decent average revenue per user (ARPU) from two separate platforms, and charging high subscription fees for both make little sense.

Advertisers had started preparing rate charts for both platforms when RIL was still considering running them separately. However, it remains uncertain whether JioCinema will be shut down entirely.

Creating Content Pipeline

As hinted above, RIL plans to be cautious with content spending, especially after investing heavily in acquiring rights for premium cricket events and international content from HBO.

In terms of releasing original content, RIL is likely to follow a more conservative approach, similar to Netflix’s recent strategy, which focusses on the acquisition of films and reality shows.

As content budgets for producers have also been reduced across the industry, RIL, too, is unlikely to burn excessively, as maintaining an edge in the content business will require a steady flow of high-quality content throughout the year, which involves careful planning and investment.

To enhance its content library and expand market reach, Viacom18 has entered into an exclusive content partnership with Warner Bros. Discovery. As part of this deal, JioCinema will stream content from HBO, Max Originals, and Warner Bros., with new releases premiering on JioCinema in India on the same day as their US release.

This partnership is expected to bolster the platform’s content depth, attracting a broader audience with premium international shows and movies.

JioCinema has already succeeded in attracting a large viewership by streaming IPL for free. During the opening weekend of the cricket tournament, JioCinema reported 5 Cr new app downloads, underscoring the platform’s ability to leverage high-demand sports content to draw in users.

JioCinema has also experimented with original show formats, such as “Indian Angels”, a show described as the world’s first angel investment series, where angel investors support emerging startups, and viewers are invited to become investors. However, the show did not achieve significant fame, and industry experts speculate that future efforts might shift towards more mainstream content.

According to RIL’s annual report, JioCinema reached 225 Mn monthly active users, while Disney+ Hotstar led the way with 333 Mn monthly active users in Q4 2023. Disney+ Hotstar reported 35.5 Mn paid subscribers as of June, despite a decline in its customer base, whereas JioCinema, as of September, became the fastest-growing subscription-based OTT platform, surpassing 16 Mn paid subscribers. Network18’s recent earnings further underscore JioCinema’s two-fold quarter-on-quarter growth in its paid subscriber base.

“Regarding pricing, Reliance has a potential advantage due to its strong last-mile reach. Reliance can tap into its vast Jio network. This distribution capability allows Jio Cinema to set competitive pricing, likely at more affordable rates. Unlike competitors that may realise only 30-40% of rack-rate pricing due to revenue sharing with telecom and OEM partners, Jio Cinema’s direct reach enables them to capture a larger share of revenue, leading to better ARPU and increased subscription revenue,” Taurani said.

While Disney+ Hotstar is going to run the show as per reports, the competition with international giants like Netflix and Amazon will be worth watching. Amazon, after its merger with MX Player, is eyeing low-hanging fruits, while the failed Zee-Sony merger leaves Zee5 and SonyLIV as distant contenders.

However, from the content perspective, Jio Cinema’s offers a broader range compared to Hotstar, and with Hotstar’s library now included, this variety will only expand further.

While content variety isn’t a concern for the merged entity, the key challenges will lie in user experience and technology. To compete on a global scale, platforms like Jio Cinema need to ensure that their technology meets the standards set by global players like Amazon and Netflix.

[Edited by Shishir Parasher]

The post Reliance-Disney Merger: What’s Happening Behind The Scenes? appeared first on Inc42 Media.

Having just wrapped the 2024 festive season, the world’s third-largest startup ecosystem is back to the grind, and what a year it has been so far. Be it the waning of funding winter or the emergence of semiconductor and deeptech as key focus areas for investors, Indian startups have much to thank for. 

You ask why? Well, homegrown new-age tech companies shined through and through as they raised a phenomenal $3.4 Bn in funding in the third quarter (Q3) of 2024, doubling the amount raised year-on-year (YoY) from $1.7 Bn in the same period last year, and significantly outpacing the nearly $3 Bn raised in Q3 of 2022.

Not just this, optimism somewhat returned to the homegrown entrepreneurial landscape as innovation and frugality fostered these green shoots of recovery. To celebrate this grit shaping India’s startup landscape, we, at Inc42, are back with the 52nd edition of ‘30 Startups To Watch’, powered by Google Cloud.

Dominated by usual suspects, deeptech and enterprise tech, the 52nd edition of the coveted series features startups from other emerging areas like semiconductors as well as the evergreen D2C sector. 

Now, with the festive season behind us, and the year approaching its end, the energy in the ecosystem is stronger than ever. Overall, we have put the spotlight on 240 startups spanning eight editions since the start of the year, reflecting the dynamism and determination of the growing Indian startup landscape. 

Without further ado, here are the 30 startups that caught our eyes in October.

Editor’s Note: The list below is not a ranking of any kind. We have listed the startups alphabetically.

Advance Mobility

Cleaner Fleet Solutions For A Greener Tomorrow

Advance Mobility aims to transform urban mobility with a strong commitment to innovation, customer satisfaction, and sustainable practices. Its diverse fleet includes over 500 meticulously maintained vehicles, equipped with state-of-the-art technology.

Founded by Mohit Jalan in 2023, Advance Mobility is a fleet startup operating mainly on the Uber platform. The startup claims to be focussed on sustainable mobility solutions and has a fleet of 100% CNG vehicles.

The core of Advance Mobility consists of over 1,500 skilled drivers whose expertise and dedication to safety and customer service are integral to the company’s success. It offers tailored fleet solutions designed to be flexible, accommodating unique client requirements with efficiency and cost-effectiveness, whether for corporate rentals or long-term leasing.

With a strong local presence in Mumbai and Pune, Advance Mobility is closely connected to its clients and communities, fostering relationships that extend beyond business. Recently, the company raised $3 Mn from prominent investors, including India Accelerator and Finvolve, to scale its operations and expand its market footprint.

AGNIT Semiconductors

Provider Of GaN Solutions For Power Electronics

Bengaluru-based AGNIT Semiconductors is a Gallium Nitride (GaN) semiconductor startup, which was founded in 2019 by seven industry experts – Hareesh Chandrasekar, Madhusudan Atre, Mayank Shrivastava, Digbijoy Nath, Muralidharan Rangarajan, Shankar Kumar Selvaraja, and Srinivasan Raghavan – who bring more than 100 years of cumulative experience in GaN technology.

AGNIT designs and manufactures GaN materials (wafers) and electronic components that excel in performance, efficiency, and compactness, especially for radio-frequency applications. These GaN components offer a powerful performance-price footprint advantage, making them ideal for high-demand sectors like defence and telecommunications.

AGNIT’s technological foundation is built on over 15 years of research and development conducted at the Indian Institute of Science, Bengaluru. Based on this deep research, AGNIT provides high-performance, customisable GaN-based solutions tailored for electronic subsystem and systems designers across varied applications.

With its specialised know-how, AGNIT is aiming to address the fast-evolving needs of industries requiring robust, cutting-edge semiconductor solutions, contributing significantly to India’s push for technological innovation and self-reliance in the semiconductor space.

The startup recently raised $3.5 Mn (INR 29.4 Cr) in a seed funding round co-led by 3one4 Capital and Zephyr Peacock. It is planning to deploy the fresh proceeds to scale up its production and expand commercial operations.

Aikenist

AI Solutions For Radiologists

Founded in 2019 by serial entrepreneur Ashwin Amarapuram, Aikenist Technologies is an AI-powered medical imaging solutions provider. The Bengaluru-based healthtech startup provides a radiology suite that helps hospitals, radiologists and imaging centres optimise their radiology processes.

Its product stack features a workflow integration model, QuickRad, which helps businesses streamline their radiology processes with storing, reporting, and viewing, all managed through its AI PACS & RIS systems.

Its QuickDiag offering provides analysis in precise diagnostics in critical areas like the brain, spine, lungs and abdomen. Meanwhile, it claims that its QuickScan product accelerates MRI scanning time by 4X using AI technologies.

Since its inception, the company claims that its solutions have been deployed in over 300 centres in India and abroad, handling about 4 Cr images per month. Its clientele includes JSS Academy of Higher Education and Research, Cerebriu, Pi Health Cancer Hospital, RadDoc Live, Global Teleradiology, Accurate, and Primescan Imaging.

The startup recently raised an undisclosed amount in its seed funding round led by Venture Catalysts.

ANNY

AI-Driven Fashion For Women

The growing internet and smartphone penetration has fuelled the growth of India’s online fashion startup brigade. While there is no shortage of such platforms catering to women, very few have actively leveraged AI to fuel their growth. One of them is ANNY.

Founded in May 2023 by friends Japjot Singh, Aveen Kaur and Rahul Tanwar, ANNY operates an online fashion marketplace that sells trendy and affordable outfits for women. The startup claims to have generated over INR 4 Cr in revenue in the first 10 months of its operations.

What sets the vertically integrated fashion tech platform apart is that it is powered by AI and data-driven insights. This, as per the company, helps it remain abreast of consumer demands.

Adopting a digital-first approach, ANNY claims to reach its customers via social media platforms, its website, and a mobile app. It currently operates exclusively through its website and generates revenue via direct online sales. It also supplements its revenue stream with sales from offline pop-up stores. Overall, ANNY has grown its registered customer base to over 1 Lakh.

In October 2024, ANNY raised $650K in its seed funding round led by FAAD Capital to accelerate its expansion plans and shore up its focus on AI.

Brainfish

Redefining Post-Sales With Smart Automation

Looking to help companies drive engagement with users at scale, Ajain Vivek Thankaswamy and Daniel Kimber founded Brainfish in 2021. Brainfish is a GenAI-powered SaaS platform enabling businesses to activate, train, and retain users through its product offerings.

Brainfish claims that its AI models and embeddable user interface (UI) can be quickly integrated by companies into their products, thereby activating personalised self-service workflows and valuable insights to speed up adoption throughout the product journey.

Simply put, companies can embed Brainfish’s tools to help prospective clients get all the answers for requesting a demo, trying products, or upgrading. The startup’s clients can also leverage the AI-powered platform to familiarise new customers with products in a relevant and tailored fashion.

Additionally, Brainfish’s clients can also gauge real-time analytics to drive product adoption and increase customer retention.

Incubated by Peak XV Partners’ Surge, the startup has raised more than $5 Mn in funding to date and is also backed by the likes of Macdoch Ventures and Black Sheep Capital.

ClayCo

Offering Beauty Rituals From The World

Founded in 2023 by Niharika JhunJhunwala, ClayCo aims to transform India’s skincare landscape by introducing globally-inspired beauty rituals tailored for Indian consumers. ClayCo was born out of the belief that skincare should go beyond the traditional Ayurvedic, herbal, and derma-based treatments, focussing instead on a holistic, skin-deep and soul-deep approach to self-care.

ClayCo’s debut collection, the Rituals of Japan, brings the wisdom of Japanese beauty traditions to Indian skincare. This range includes a diverse portfolio of 20 products designed to address various skin needs for both men and women.

Products include cleansers, moisturisers, face washes, serums, masks, polishers, and innovative skincare tools like glow essences and sponges. ClayCo claims that its Rice and Sake Sleep Mask, known for its overnight revitalising effects, has already sold over 1 Lakh units.

ClayCo sells its products on its website and major ecommerce platforms such as Amazon, Nykaa, Myntra, Tira, Zepto, and Blinkit. The startup is preparing to launch its ‘Rituals of Morocco’ range to expand its offerings. By 2025-2026, the startup aims to establish an offline presence, reaching consumers through physical retail channels across India.

Elivaas

Luxury Villas For Rentals

Founded by Ritwik Khare and Karan Miglani, the Delhi NCR-based startup is catering to two primary segments—second homeowners and short-term luxury travellers. Elivaas offers a full-service 3M solution for property owners: maintain, monitor, and monetise.

Elivaas was born from the founders’ firsthand experiences and market insights into the challenges and opportunities within luxury property rentals. Recognising a gap in the market for private, high-quality vacation spaces, they set out to create a seamless solution for homeowners and travellers alike.

Using advanced technology, Elivaas makes it simple for homeowners to manage and profit from their properties without hassle. For travellers, Elivaas provides a premium experience in private villas and apartments with the service quality of brands like Marriott and Taj.

With over 2,700 reviews, 95% of which are 5-star, Elivaas has become known for its dedication to hospitality, enhanced by technology in every interaction, from housekeeping to customer engagement.

Elivaas operates on a revenue-sharing model with homeowners, managing their properties for short-term rentals through various channels, including its website, social media, online travel agencies, B2B travel agents, and corporate partners.

Currently, Elivaas is operational across six states in India — Goa, Himachal Pradesh, Delhi NCR, Rajasthan, Maharashtra, and Uttarakhand.

FermionIC Design

Fabless Semiconductor Startup

Founded in June 2020 by Gautam Kumar Singh and Prasun Kali Bhattacharyya, FermionIC Design is a fabless semiconductor startup that has built integrated chips for applications in defence, radio frequency communication, satellite communication and weather monitoring.

The startup specialises in SERDES IP and Hybrid Beamformer IC technologies. SERDES IP accelerates data transfer between devices, enabling faster communication, while the hybrid beamformer IC improves connectivity with multiple devices simultaneously, which is essential for technologies like 5G and radar systems.

The semiconductor startup recently announced its plans to raise its first external funding of $6 Mn, likely to be led by ace investor Ashish Kacholia. Of this, the startup has already bagged $2 Mn.

flutrr

The Regional Dating App

In 2023, as many as 8.2 Cr Indians reportedly used dating apps. But, as more and more Indians turn to online platforms to find partners, such sites have been fraught with challenges such as women’s safety, digital scams and whatnot.

It was the quest to solve this problem that paved the way for the father-son duo of Kaushik and Anirban Banerjee to build flutrr.

Founded in 2021, flutrr prioritises women’s safety above the fun experience of the platform, and that too in multiple Indian languages.

Leveraging its proprietary technology and face recognition algorithm, the platform offers features, including the option to erase chats from the receiver’s phone with a single click, prohibiting screenshots and multiple-tiered user verification.

Another unique selling proposition of the platform is its vernacular approach. Unlike most major online dating platforms, which primarily cater to English-speaking audiences, flutrr supports multiple Indian languages such as Hindi, Bengali, Tamil, Telugu, Malayalam, and Kannada.

The dating app claims that over 80% of its users are non-English speakers from Tier II and Tier III cities and towns.

Flutrr has reportedly raised $1.2 Mn and is backed by media houses The Times of India, Zee Media, and Bollywood actor Huma Qureshi.

Furnishka

Affordable, Premium Furniture

Launched by Spinny cofounder Ganesh Pawar, Furnishka aims to transform India’s home furnishing market by addressing key challenges like delivery delays, high costs, and inconsistent service. With online and offline stores in Bengaluru, the brand offers over 1,000 SKUs and customisable designs at competitive prices.

In India’s furniture market, anticipated to grow significantly from $24.47 Bn in 2023 to $64.39 Bn by 2032, Furnishka has focussed on supply chain innovation, standardisation, localisation, and cost efficiency, allowing it to deliver premium furniture affordably.

Within its first year, the company claims to have already served over 10,000 customers. It operates four large-format stores in Bangalore, showcasing a broad product range. Furnishka recently raised INR 27 Cr in a Pre-Series A funding round led by IndiaQuotient.

Looking ahead, Furnishka plans to broaden its product range, particularly in premium living, dining, and bedroom collections. The company also aims to open six new large-format stores and produce educational content to empower customers to make well-informed furnishing choices.

Indulge Global

Your Call For Concierge

With the rising number of ultra-high net worth individuals (UHNIs) in India, demand for luxury experiences and premium services has surged. But if there is one luxury that this affluent section truly craves is time. And this is where Indulge Global steps in.

Founded in 2020 by Karan Bhangay and Advita Bihani, Indulge Global offers luxury concierge services in India. The startup enables its UHNI customers to sign up for curated travel experiences, luxury consumer products, and exclusive events. Indulge Global’s annual membership is priced at approximately INR 4 lakh, but it also offers a 30-day trial option for INR 40,000, providing access to the same services.

With operations spanning multiple countries, Indulge Global has partnered with luxury brands such as Hermes, Gucci and Rolex. At present, it claims to have 1,000 paid members, including Zerodha’s Nithin and Nikhil Kamath, Tanmay Bhatt, and Adarsh Narahari, among others.

The company is backed by angel investors such as Anil Shetty, Amar Ohri, and Nikhil Shettar, among others.

Jhana.ai

AI For Indian Jurisdiction

India’s legal landscape has primarily been slow when it comes to adopting technology. This is due to multiple reasons, including the unstructured nature of legal data, the security of these tools, heavy reliance on professionals, and so on.

However, the advent of the age of artificial intelligence (AI) appears to be catalysing tech adoption in the legal arena. When Em McGlone, Hemanth Bharatha Chakravarthy and Benjamin Hoffner-Brodsky realised the potential of GPT-2, the trio sat down to create a legaltech platform called Jhana.ai, using AI models’ reasoning and writing skills.

Founded in 2022, Jhana.ai offers an AI-powered legal research and drafting tool for Indian lawyers and law firms.

The startup’s flagship offering “AI Paralegal” leverages AI to read files and produce output such as citations, advisories, and memos for lawyers and law firms. Its second product “Document Intelligence” reviews documents to flag risks, suggests edits, and identifies deviations from standard practice, among other things.

The platform has been trained on a dataset of more than 1.5 Cr case laws and web sources to offer cohesive legal research solutions for its clients.

Incubated by big names such as Jio GenNext, AWS Public Sector Startup Hub, Microsoft Founders Hub and Google Cloud Startups Program, Jhana.ai has raised $1.6 Mn in funding to date. It is also backed by Freshworks cofounder Girish Mathrubootham’s venture capital firm Together Fund.

Jivi AI

Revolutionising Healthcare Through Advanced AI

Founded in December 2023 by ex-BharatPe CPO Ankur Jain, Jivi is a healthtech startup, which incorporates AI to improve India’s healthcare ecosystem. The startup’s platform (currently in the beta phase) uses AI to help users diagnose illnesses based on their symptoms.

The platform features a virtual healthcare assistant, Dr Jivi, which interacts with users to assess conditions and provide potential diagnoses.

Users can upload lab reports for analysis and receive screenings for chronic diseases. The app also connects users to telemedicine and lab testing through a partnership with Tata 1mg.

Jivi utilises advanced AI models, including Jivi MedX, which performs well in healthcare-related queries. Jain, along with AI expert and educator and cofounder Andrew Ng and third cofounder VC firm Reddy Ventures’ chairman Sanjay GV Reddy, aims to build a tech stack that supports global expansion. Jivi seeks to deliver effective healthcare solutions and improve patient outcomes in India and other regions.

Katonic AI

Powering Innovation With No-Code GenAI

As GenAI mania grips the world, India has been quick to jump on the bandwagon. Such has been the hype around the emerging technology that a recent Inc42 report found that 85% of Indian SaaS companies have already adopted AI.

While big companies have resources and talent pools to embrace the new technology, smaller businesses are lagging when it comes to leveraging GenAI to reach their customers.

Realising that AI could be leveraged to help companies build intuitive and efficient user UI and UX, Prem Naraindas founded Katonic AI in 2020.

Katonic AI is a no-code generative AI startup, which helps both small and large-scale businesses build enterprise-grade AI apps without spending too much on the tech front and by leveraging foundational machine learning operations.

This platform also enables enterprises to manage the entire process of data preparation, model training, model deployment, model monitoring, and automation. Katonic AI claims that its platform can be deployed across systems such as multi-cloud, on-premises, or the edge.

NymbleUp.ai

AI-Driven Workforce Management Solutions

Founded by Yogesh Bhatt and Manish Thakur, NymbleUp was born out of their experience at Starbucks India, where they worked on demand forecasting and workforce optimisation.

During this time, they identified a gap in solutions that could generate efficient rosters based on sales demand while considering various influencing factors. This led them to develop an AI-powered platform designed to accurately predict sales and streamline workforce management.

NymbleUp is a B2B SaaS platform that leverages AI to enhance demand and workforce management for businesses, providing critical insights and tools that drive efficiency, customer satisfaction, and cost savings.

NymbleUp’s advanced scheduling capabilities can create flexible and precise employee rosters in a short time, aligning staff availability with demand across various channels and locations. This solution goes beyond simple roster management by optimising workflows, following regulatory guidelines, and reducing resource waste.

Through accurate forecasting, NymbleUp also helps businesses maintain optimal stock levels for each SKU and provides alerts for stockouts, near-expiry items, and liquidation needs.

The company operates on a subscription-based model, with options for monthly or annual fees. Currently serving clients in India, Southeast Asia, and GCC markets, NymbleUp plans to expand into the US by the end of the year. It also aims to reach a monthly recurring revenue (MRR) of INR 80 Lakh this year. Additionally, the team aims to explore use cases in industries such as healthcare and hospitality, broadening its impact across sectors.

Onlygood.ai

AI-Powered Sustainability Platform

With sustainability fast emerging as a key focal point of enterprises globally, Industry watchers believe that there is a market gap for platforms that help enterprises track carbon emissions.

To solve this, Rajeev Sinha and Vivek Mehra founded Onlygood.ai in 2022. The platform offers data-driven SaaS tools to help companies track, manage, and reduce carbon emissions and meet global compliance standards.

With a focus on simplifying carbon management and sustainability reporting for businesses, the startup provides solutions that enable companies to implement strategies to reduce emissions and achieve sustainability goals.

Onlygood.ai monetises its offerings via its annual subscription model. So far, it claims to have onboarded more than 100 clients across sectors such as manufacturing, automotive and steel industries.

In October 2024, Onlygood.ai raised INR 4 Cr in its maiden seed round from IIT Madras Incubation Cell, Goel Group, and Daimler India Commercial Vehicles.

OpiGo

Your Guide To Smarter Returns

Amid India’s bullish public markets, new platforms are emerging to capitalise on growing investor interest. Established players like Zerodha, Groww, and AngelOne have already made their mark, and now a fresh entrant, Opigo, is building a user base with its comprehensive suite of investment tools.

Founded in 2022 by Devansh Mehta, Opigo offers unique investment insights and decision-making tools. Its subscription-based feature, Decks, provides recommendations from SEBI-registered experts. Each deck focusses on specific themes like short-term trades, long-term investments, or industry sectors, allowing users to choose based on their investment goals.

Another core feature, Cards, offers stock recommendations and insights for post-purchase buy/sell opportunities, guided by expert analysis.

With a user base of over 45,000 investors, Opigo claims an average return of 16.2% and offers entry-level access at INR 699. The startup monetised its platforms three months back and claims to have a paid userbase of over 1,000 since then.

Pepsales

Product Demonstrations Made Easy

For enterprise tech companies, live product demos can be critical for closing sales. As per reports, 80% of such demos fail on account of their generic and one-size-fits-all approach.

Realising that there was a big gap in the market for SaaS solutions that could streamline live SaaS product demos, Ajay Singh and Abhinandan Sahgal founded Pepsales in 2023.

Pepsales harnesses AI and machine learning (ML) to help B2B SaaS companies create personalised product demos for potential buyers. It claims that its cloud-based solutions allow its clients to market their products in a personalised manner, all while enhancing interest in the seller’s portfolio.

Backed by Chiratae Ventures and other angel investors, Pepsales has raised $1.1 Mn to date. It competes globally with Consensus, Folio, Demoboost, and Storylane.

Looking ahead, the Bengaluru-based startup plans to bolster its presence in India and expand operations to the US. It is also eyeing expanding its customer base globally and shoring up its tech stack.

Rosh.ai

Tech For A Driverless Future

To make driverless cars a reality, Roshy John and Rajaram Moorthy incorporated RoshAi in 2021. Since then, the startup has been working on setting up autonomous driving algorithms for geographies which have “defensive driving” as a practice.

Headquartered in Kochi, the deeptech startup develops a vehicle-agnostic end-to-end autonomy stack that includes advanced mapping, perception, navigation, SoC development, and ADAS solutions.

Its product stack can be used by automotive OEMs (including EVs), seaport and airport operators, and the mining sector. The startup claims that its clientele includes automotive manufacturers, leading technology firms, and global truck companies.

The startup sells an auto drive product, RoshAI Retrofit Drive-By-Wire, which enables electronic control of a vehicle’s brake, throttle, steering and shifting. Besides, RoshAI’s evPOD offers autonomous smart mobility electric PoDs for campus transport.

The company offers HD maps specifically designed for self-driving cars and smart mobility platforms. These maps consist of multi-layered sensor-integrated maps that are specifically designed for developers building self-driving car technologies.

The startup raised $1 Mn in its seed funding round led by Ev2 Venture with participation from ThinKuvate in August.

Sarla Aviation

Making Aerial Taxis A Reality In India

Fascinated with the concept of flying taxis, Rakesh Gaonkar, Shivam Chauhan, and Adrian Schmidt launched Sarla Aviation in October 2023.

Aiming for its first commercial flight by 2028, the founders see their service as a cleaner, quieter, and more affordable alternative to traditional helicopter taxis.

Currently, Sarla is collaborating with Bengaluru International Airport Ltd (BIAL) to create operational models for electric vertical take-off and landing (eVTOL) aircraft. In September, the startup signed an agreement with BIAL to explore sustainable air mobility.

Cofounder and CEO Adrian Schmidt envisions their flying taxis drastically cutting travel times. For instance, reducing the 1.5-hour journey to just 5 minutes. Sarla describes its aircraft as “the most affordable 6-seater eVTOL, designed for price-sensitive markets.

shoppin’

Building Google For Fashion

Searching manually for fashion products on ecommerce sites seems to be passé for India’s tech-savvy GenZ. With the advent of GenAI, they want a more visual and intuitive shopping experience.

Realising that a major shift was happening towards image-based search, Shlok Bhartiya and Utsav Soi founded fashiontech startup shoppin’ in May of 2024. The startup offers an AI-powered multi-modal search engine that allows users to search for apparel using images, text prompts, product descriptions or a combination of images and text to find their perfect match.

It also curates celebrity apparel and occasion-specific fashion options from multiple ecommerce platforms on its site.

Looking to become the “Google for Fashion”, shoppin’ is optimising for common shopping habits and preferences of younger consumers in India. The company claims that its AI search model’s accuracy has already surpassed Google by over 30% in searches for fashion products.

The company made headlines earlier this year after it raised funding in a pre-seed investment round led by ace investor Sanjeev Bikhchandani’s Info Edge Ventures.

The startup plans to officially debut its shoppin’ platform by the end of 2024 after raising its second round of funding.

Slikk

Delivering Apparels In 60 Mins

From groceries to iPhones, shoppers in India’s metro cities seem to want everything within “10 minutes”.

While some of the biggest ecommerce giants in India are jumping on the quick commerce bandwagon, the fashion sector is yet to fully embrace the quick commerce mania on account of challenges such as inventory management, supply chain issues, quickly changing consumer trends and whatnot.

Looking to solve this is the trio of Akshay Gulati, Om Swami, and Bipin Singh, who together founded Slikk in 2024. Slikk is a quick commerce startup that delivers fashion items in select areas of Bengaluru within 60 minutes.

Having previously worked at retail tech startup Perpule, the founders identified a gap in the market for curated fashion and quick delivery, with an eye on enhancing the online shopping experience for young consumers.

Slikk offers exclusive collections from various D2C fashion labels, integrating a try-and-buy option and a seven-day return policy to build consumer trust.

The startup is looking to crack the quick commerce model for fashion by bringing various aspects of its operations in-house, including warehousing, sourcing of products, and deliveries.

Besides, the founders believe that their relentless focus on controlling inventory, ensuring fast and reliable deliveries and leveraging AI for hyper-personalised shopping experiences will give it the edge over incumbents.

Slikk raised INR 2.5 Cr in a pre-seed round led by Better Capital in September 2024, with participation from Untitled Ventures.

Sports For Life

Building Champions From The Ground Up

After stepping down as the cofounder of ecommerce platform Dealshare in January 2024, Sourjyendu Medda has launched a new venture, Sports For Life (SFL), in partnership with Arman Tandon, a former Cartesian employee, and Khushboo Talukdar.

Incorporated in March 2024, SFL aims to bridge this gap by creating a network of high-quality sports academies across the country, focussing initially on popular sports like football, cricket, badminton, and basketball. Through a rollup model, SFL invests in promising academies, acquiring an initial stake that can grow over time, enabling them to expand to multiple locations and enhancing their operational capacities.

By incorporating technology tailored for performance tracking and collaboration, SFL is building a strong foundation for data-driven training. SFL also leverages celebrity endorsements and partnerships with international clubs to elevate brand visibility, making it more appealing for young athletes and parents.

In addition to traditional fees, SFL diversifies revenue by hosting tournaments, securing sponsorships, and offering shared services such as medical support and sports counselling.

Going forward, SFL aims to solidify its presence in Mumbai and focus on building and scaling soccer, tennis, and basketball academies. Its plans include broadening current academies into other cities in Maharashtra and expanding into additional sports like badminton, table tennis, and cricket.

In the long term, SFL is looking at expanding into niche sports and launching India’s first “Grassroots Olympics” to showcase young talent.

SportsSkill

Helping Athletes Reach Their Full Potential

SportsSkill, founded in 2021 by Abhinav Sinha and Chetan Desai, is a performance-tracking app created for athletes and sports enthusiasts to enhance their abilities across various sports. Designed for individuals of all skill levels—from beginners to seasoned athletes—SportsSkill offers a range of tools to track progress, set goals, and achieve athletic potential.

The platform combines advanced performance analytics with user-friendly features like skill and performance tracking, goal setting, and progress monitoring through detailed charts and graphs. Users can also track rest and recovery, essential for optimal performance, while community-building features, including SkillCoins, add a social and motivational aspect to the training.

With a subscription-based model, SportsSkill provides subscribers with an accessible way to analyse their progress, connect with coaches, and access valuable guidance.

The startup recently onboarded WestBridge Capital’s cofounder KP Balaraj as investor. The startup will use the fresh funds to increase the efficiency of its application and expand its outreach across schools and training centres.

TableSprint

Helping Enterprises Go Live With New Apps In Minutes

Tablesprint addresses a gap in enterprise software by offering a no-code solution to the challenges of traditional ERP and CRM systems, which often suffer from complexity, usability issues, and low adoption rates.

By providing an AI-powered SaaS platform, Tablesprint enables companies to rapidly build and deploy intuitive apps and workflows across diverse business verticals, including HR, sales, and operations. Its modular building blocks, such as AI Write/Image, Forms, Workflows, and Kanban, allow for customisation to meet specific business needs, offering solutions for simple tasks like surveys and forms to complex, end-to-end workflows.

Tablesprint’s pre-built playbooks, including modules like ‘Hire to Retire’ and ‘Order to Cash,’ support complete business workflows with functionalities that streamline processes like employee onboarding, document management, and order management. Companies can utilise these playbooks or create tailored workflows to enhance efficiency and scalability as their needs evolve.

Founded in early 2024 by Abhijeet Kumar and Chirag Jadhav, Tablesprint’s AI-first platform integrates notification systems and payment gateways to ensure seamless operations. Designed as a multi-tenant system, it helps enterprises go live with new applications in minutes, enabling operational flexibility and supporting growth across industries from manufacturing to investment management.

Traqo.ai

AI In Supply Chain And Logistics

Founded by Mukesh Deogune in 2022, Traqo was founded to tackle the logistical inefficiencies faced by manufacturers relying on manual processes like Excel. Offering a no-code third-party logistics management OS, Traqo automates mid-mile and long-haul logistics, from freight procurement to tracking and finance, ensuring manufacturers have full visibility over operations.

Traqo’s platform automates 90% of logistics processes without integration, allowing companies to easily upload workflows and tailor operations. Targeting mid-sized and larger enterprises, Traqo’s platform is modular, self-service, and full-stack, with features like Traqo LLM, which drives automation, saving up to 12% on freight costs. Its unique selling points include a modular design, actionable UI, and full lifecycle freight management.

The company operates a SaaS subscription model, with annual contract values (ACVs) from $6K to $100K, plus implementation fees. Based in India, Traqo plans to expand to the US market.

Traqo currently manages 30,000 shipments per month and has reached $270K in ARR. Over the next 18 months, it aims to grow to $2.5Mn ARR and secure 120+ clients, with a long-term goal of reaching $500K ACVs from enterprise clients by 2026 as it expands globally.

UniBlu

Aesthetic Streetwear For Gen Z, Millennials

Founded in 2023 by Vrinda Girotra, UniBlu, operating under parent company UniStreet, focusses on creating versatile, comfortable streetwear and athleisure that caters to everyday needs. Building on UniStreet’s experience in customised clothing for colleges and corporations, UniBlu designs clothing that balances practicality with style, appealing to the preferences of Gen Z and millennials.

UniBlu originated from the idea of bridging comfort with on-trend fashion, responding to the demand for clothing that fits into busy, active lives without compromising on ease. UniBlu pieces are intended to move seamlessly from street style to athleisure, aligning with diverse lifestyles. The clothing is crafted from soft, high-quality fabrics chosen for comfort and durability, aiming to create pieces that become reliable staples in everyday wear.

The brand’s approach centres around offering clothing suited to dynamic routines, designed to last and provide an option that simplifies dressing for a range of activities.

WishNew Wellness

Simplifying Your Wellness Journey

Founded in 2022 by Karan Khurana and Pranshu Singh, WishNew Wellness aims to simplify physical wellness routines for Indians. The startup offers a wide range of products, including advanced nutritional supplements, skincare solutions, fitness aids, and mental wellness products.

WishNew combines modern science with ancient natural formulas, using organically sourced ingredients. Products are sold directly to customers via its online marketplace, eliminating retail markup and offering free shipping.

The startup recently raised $250K from Ankit Khandelwal of FICO Scores; Gyanesh Sharma, cofounder and CTO of DotPe; Abhijeet Rana of Caldic; and Ashish Singh, CTO, Virtualness.

With the new funding, WishNew Wellness plans to boost R&D, expand its product line, strengthen distribution, and invest in marketing and brand-building.

XDLinx

Revolutionising Space Missions

Founded in 2022 by Rupesh Gandupalli and Karthik Govindhasamy, Hyderabad-based XDLINX began with an aim to make advanced satellite technology more accessible.

The startup made its first breakthrough with the launch of JANUS-1, a software-defined 6U Nanosat that demonstrated multi-tenancy payload capabilities. Developed in 10 months, JANUS-1 launched aboard ISRO’s SSLV-D2 rocket on February 10, 2023.

XDLINX Space Labs is currently gearing up for the launch of its next ambitious project, Elevation-1. Featuring the world’s first miniaturised space-grade E-band payload, Elevation-1 is designed to advance space communications with digital modulation capabilities. This landmark mission is set to launch aboard SpaceX’s Transporter-12 mission to achieve data rates exceeding 10 Gbps.

In addition to Elevation-1, XDLINX is developing a 150KG-class satellite equipped with Synthetic Aperture Radar (SAR) and multi-spectral optical sensors through the XDSAT-M600 platform, with a planned launch in Q3 2025.

Just last month, the startup completed its seed funding round of $7 Mn. The round was led by Ashish Kacholia of Lucky Investments and received additional backing from E2MC, Mana Ventures, and a prominent family office.

Zintlr

Database & Sales Intelligence Platform

Founded by Ravi Jain, Ujwal Kumar and Pranay Khariwal in 2022, Zintlr is a B2B SaaS platform that provides sales prospects and contact information to its clientele. The startup’s platform integrates a contact database of over 50 Mn, revenue intelligence for targeted prospective clients, and insights into niche markets and specific geo-locations.

The startup collects its database from various public domains, third-party suppliers, as well as its dedicated research department and its “Z-Community” contributors.

As of now, the platform is yet to launch and is inviting people to sign up pre-launch. It targets sales and marketing functions of businesses in industries like banking, manufacturing, fintech, distributors, and other domains.

The startup recently bagged its first funding of INR 7.5 Cr in its seed funding round from angel investor Om Jai, JITO Incubation and Innovation Foundation (JIIF), Motilal Oswal, and Vimal Shah of Bidco Group.

[With Inputs From Anne Florentyna, Edited By Shishir Parasher]

The post 30 Startups To Watch: Startups That Caught Our Eyes In October 2024 appeared first on Inc42 Media.

Unlike many industries that have undergone significant digital transformation over the past decade in India, the legal sector has traditionally been slow to adopt technology because of its heavy reliance on professionals and the unstructured nature of legal data. Consequently, there are only a few legaltech startups in the country today. 

While the rise of generative AI has started to change this by automating tasks like contract drafting, legal briefs, opinions, and filings, the seeds of transformation were sown during the Covid-19 pandemic. When lockdowns and court closures disrupted physical consultations, legal professionals and clients turned to online solutions. 

This led to a big spurt in online consultations, paving the way for further adoption of tech in the system. Now, the arrival of generative AI has unlocked a wave of innovative online tools and solutions, pushing the sector’s digital transformation even further. 

“During the Covid-19 pandemic, when people were forced to adopt technology, this traditional mindset began to shift, even in the legal industry. Lawyers and the judiciary had to embrace technology, whether through e-courts or virtual hearings on platforms like Zoom. This marked the first widespread adoption of technology in the legal world,” Himanshu Gutpa, the founder of Lawyered, said.

Before the pandemic, Gupta added, a few large law firms used legal research tools, but those weren’t widely accessible. Since then, however, tech adoption has spread throughout the legal field in India. In fact, the country is seeing the rise of several early-stage startups that are partnering with these law firms to bring game-changing solutions to the table.

Where Does The Legaltech Opportunity Lie?

According to Kaushik Moitra, partner at Bharucha & Partners, corporate law firms have also started embracing AI tools in India, as these solutions can quickly and accurately process vast amounts of data, allowing legal practitioners to store, organise, and access their files with more ease. 

Besides, just like other sectors, legal practitioners can leverage AI for mechanical and repetitive tasks so that they can allocate more time to strategy work, advocacy, and client engagement.

It is precisely for this work that Varun Khandelwal, an M&A lawyer at AZB & Partners, cofounded Jurisphere.ai last year. 

Khandelwal said that his startup focusses on helping legal, tax, and regulatory teams manage data-intensive tasks that often create bottlenecks. 

Currently, the platform has two main offerings — legal research and multi-document analysis.  These offerings allow legal teams to analyse documents quickly, provide recommendations, and offer advisory services. 

Khandelwal is also working with in-house counsel teams of some of the largest companies and corporate law firms in India.

Meanwhile, some emerging startups have stepped up to bridge a gap on the citizens’ side, as they are generally not proficient in the language of the law.

A prime example is Lawyer Desk, a legaltech startup, which started with a platform for advocates and practising lawyers but later launched a platform, Prajalok, to provide citizens with legal information, guidance, and resources, including case tracking.

“There is a huge opportunity in the country’s legal sector because of the vast number of cases. Millions of cases are pending, primarily due to the extensive documentation required, and our courts are overwhelmed. As a result, our legal processes are choked, and documentation is cumbersome, spanning across all areas of law,” Vikram Gupta, founder and managing partner of IvyCap Ventures said.

Giving a sneak peek into the larger problem, Gupta pointed out that more than 60 Lakh cases are pending in the country’s 25 high courts, and of these, 4.5 Lakh cases are less than a year old.  

Are LegalTech Startups On The Investors’ Radar?

Although a majority of legaltech startups are bootstrapped in the country, some have started to attract investors. 

Last month, legaltech startup Jhana.ai, which provides an AI-powered legal research and drafting tool for Indian lawyers and law firms, raised $1.6 Mn. Another legaltech startup, DecoverAI, also secured $2 Mn in a seed funding round earlier this year.

“One of the immediate use cases for GenAI that comes to mind is law. We have evaluated several startups that are at fairly early stages. They’re using GenAI to create legal documentation, summarise legal documents, and other similar tasks. However, after evaluating them, we’ve found that many of these startups are still in the process of refining their products to be truly effective,” Ashwin Raguraman, partner, Bharat Innovation Fund, said.

Raguraman also noted that the startups that have received investment in India are mostly early stage, typically backed by angel networks or similar investors. 

“The real potential of legaltech lies in achieving greater control and automation. For example, let’s say we provide a term sheet. Can that term sheet be automatically converted into a full agreement using ChatGPT or a similar legal tech platform? This is where we want to see much more automation — taking a cumbersome process like legal document creation and negotiation and significantly shortening the time required, both for creation and review, including risk identification. This level of automation is required to streamline the process,” Raguraman said.

As per another late stage investor, legaltech in India is far from fetching big cheques currently. While several startups are emerging in the space, most of these have just started building the products and need to prove viability. Therefore, the legaltech startups will see investment only in the range of $1 Mn-$3 Mn, he added. 

The investor believes that legaltech would become a more interesting segment if there’s technology that can help reduce the immense burden on courts. The judicial system is under massive pressure, and the key challenge is how to achieve the speedy disposal of cases. If there’s a technology that can assist judges and the entire court system, it could be a game changer. 

“We are actively exploring this space and evaluating several startups that have the potential to scale significantly. While we see a huge opportunity, we are being cautious, paying close attention to the quality of both the founders and the products being developed,” IvyCap’s Gupta said.

He also believes that there’s potential to create at least a few unicorns in this space. “Some startups are already on this path, although they are still in their early stages. From an investment perspective, I think this is an excellent time to get involved with startups,” Gupta added.

Challenges Ahead?

Meanwhile, investment isn’t the only challenge that legaltech startups are facing in the country. According to Moitra of Bharucha & Partners, lawyers handle sensitive client information, which limits options for data sharing and external storage.

Additionally, the upcoming data protection law will likely impose strict data management requirements, potentially slowing down AI adoption in the legal sector.

“Legal practitioners should exercise due diligence and implement all necessary safeguards when adopting AI technologies, ensuring compliance with all applicable regulations and professional obligation,” Moitra said.

Secondly, the founder of a GenAI startup noted that the most trusted products among large corporate firms are currently emerging from the US. 

To stay ahead of the curve, Indian legaltech founders need to develop more proprietary models and innovative solutions tailored to the Indian legal system to monetise their products successfully.

For now, Indian startups have a vast ocean of opportunities in legaltech. However, overcoming challenges will be crucial if the sector aims to tap into the global market, which is projected to grow at a 10.2% CAGR to reach $47.8 Bn from $26.7 Bn in 2024.

[Edited By Shishir Parasher]

The post How AI Is Powering The Next Wave Of Legal Innovation In India appeared first on Inc42 Media.

Equipped with speed and convenience, quick commerce is expanding its dominance in the world of online shopping. Initially questioned for its long-term viability and relevance beyond metro cities, quick commerce has thrived over the past two years, driven by rising demand for fast, on-demand shopping solutions, particularly among Gen Z and millennial consumers in urban areas.

While major players like Flipkart and Amazon are experimenting with fast delivery options, pure-play quick commerce companies have become increasingly aggressive. Even Swiggy has ventured into this space with its 10-minute food delivery service, Bolt.

Despite scepticism due to the global failure of similar models, this segment has seen high growth in the country, with monthly transacting users (MTU) increasing by over 40% in FY24 from previous financial year, according to a RedSeer report.

This is only symbolic of the fact that user behaviour is changing, and backing this statement is the RedSeer data, which highlights a rise in the frequency of monthly orders from 4.4 in FY21 to nearly 6 in FY24. The momentum will only increase in FY25, with a 75-85% market growth, to reach $6 Bn GMV.

To cash in on this, Tata-owned BigBasket, which disrupted the traditional online grocery market long back, has completely pivoted to the quick commerce model. While the company has been known for its slotted deliveries, it now holds BB Now tightly as the core focus of the platform.

Notably, BigBasket launched quick commerce in early 2022. Back then, it offered both a quick commerce service and a slotted delivery service.

“The quick commerce wing offered delivery in 10 minutes, while slotted delivery took between two to four hours. The range of products differed significantly too — quick commerce offered around 8,000 to 10,000 products, whereas slotted delivery had about 40,000,” cofounder of BigBasket, Vipul Parekh, told Inc42 in an interview.

He added that the company has now decided to merge both services into a single offering. “The default option will be quick commerce, offering delivery in 10 to 15 minutes, but customers will still have the option to choose slotted delivery if they prefer.”

BigBasket’s Quick Commerce Pivot

While BigBasket launched its quick commerce service in early 2022, Parkeh said it grew faster than the slotted delivery service. Initially, quick commerce made up about 50% of sales, and the company anticipated it could account for 60-80% of sales, taking away the charm of slotted deliveries.

According to the cofounder, this would have made the slotted deliveries less impactful to keep it running as a standalone feature. Additionally, offering both options was confusing for customers, who were unsure which service to choose and on what basis.

“By merging both services into a single offering, we have simplified the customer experience, presenting a unified solution. This change was driven by two key factors — the market’s shift towards quick commerce for groceries and the need for a simpler, more streamlined browsing experience for customers,” Parekh said.

As part of its strategic shift, BigBasket is not only continuing with quick commerce but also expanding the range of products delivered in 10 minutes.

Previously, only groceries were delivered in that timeframe but now electronics and other categories have been included. The company has also forayed into general merchandise, fashion and apparel, and jewellery. The company has also started selling iPhone 16 in Bengaluru, Delhi NCR and Mumbai.

However, as per Parekh, the pivot from groceries to new categories and from slotted to superfast deliveries has not been easy. Explaining this, he said, the supply chain for electronics, for instance, is quite different from groceries (with purchases often clustered around discounts, promotions, and festive seasons) whereas grocery purchases are regular and predictable. Understanding these supply chain differences has been a major challenge for the company.

To address this, BigBasket partnered with category-specific experts like Chroma for electronics, Tata Cliq for apparel, and Titan for jewellery. These partnerships allowed BigBasket to leverage the expertise of companies that already excel in these categories, avoiding the steep learning curve.

Besides, another challenge was building the right customer experience and features for these new categories. For example, electronics purchases often involve EMI options, returns, warranties, and bank discounts, which are not as relevant for grocery purchases. To meet these needs, BigBasket had to develop new technology and features, ensuring a seamless experience for customers across all product categories.

How Is BigBasket Approaching Category Expansion?

While BigBasket was aggressively pursuing quick commerce two years ago, there was widespread scepticism about the relevance of the service beyond major metros. But today, it is clear that affluent customers in Tier II cities also prefer the convenience of delivery and exhibit similar buying patterns.

BigBasket, which currently operates in 40 cities, has around 400 dark stores across India, and it is adding 30-40 stores each month to keep up with demand.

According to Parekh, quick commerce will become increasingly relevant as grocery shopping is rapidly moving towards quick commerce. “Unless someone has highly specialised needs, almost all grocery deliveries will soon be done through superfast platforms,” he said.

In addition, more categories—beyond groceries—are shifting to quick commerce, particularly for fast-moving products. Whether it’s electronics, fashion, or general merchandise, items with high demand and quick turnover will be increasingly delivered within minutes.

“For instance, during the iPhone launch, we sold a significant number of phones within just a couple of days. Customers didn’t want to wait even until the next day; they wanted their new devices immediately. This trend will expand to other fast-moving consumer durables like accessories, mobile phone cases, chargers, and earphones,” Parekh observed.

However, he mentioned that not all categories will shift entirely. Larger, more specialised products, like high-end electronics or large appliances, are unlikely to transition to quick commerce. But smaller, fast-moving items within these categories will, Parekh said.

In fashion, basics like standard footwear, tees, and shorts will likely move to quick commerce, while more specialised or high-end fashion items won’t.

Moving forward, BigBasket plans to expand into categories like toys and general merchandise, along with fashion, while it is also seeing a growing trend in seasonal merchandise.

“When we decide which new categories to prioritise, we consider three factors — product’s size and weight, the velocity of the product and customer demand. If a product has low velocity or isn’t naturally associated with quick commerce, we may avoid it. We also assess the viability of selling higher-value products within this model, as it may not always make sense financially,” Parekh said.

Bottom Line: Can BigBasket Be The Quick Commerce Winner?

Although BigBasket is aiming to be one of the largest quick commerce players, Zomato-owned Blinkit was sitting on a 40-45% market share as of July, according to a recent report by brokerage firm UBS. Also, Instamart holds a 20-25% market share, followed by Zepto and BigBasket with 15-20% and 10-15% market share, respectively.

In addition, the online grocery retailer’s operating revenue saw a mere 6% rise to INR 7,884.5 Cr in FY24 from INR 7,439.7 Cr in FY23. BigBasket generated INR 7,609.6 Cr in revenue from the sale of traded products, which included household and grocery products. On the other hand, it narrowed its loss by 17% to INR 1,267.2 Cr in the year by controlling expenses.

However, it seems team BigBasket has its strategy planned to bring more financial sustainability. According to Parekh, quick commerce is really about how much revenue can be generated per dark store.

“If your dark store generates a minimum revenue, it will automatically become profitable and start generating profits. This is just like any other physical retail business. For instance, let’s say we have 50 stores in Bengaluru. If all 50 stores cross a certain revenue threshold, depending on your expense and margin profile, you will automatically become profitable for Bengaluru. In my view, the same thing is true for quick commerce,” Parekh said.

So, where does the issue lie?

The main issue lies in the fact that a quick commerce platform can end up spending too much on marketing, in which case customer acquisition costs become very high, and that makes it difficult to remain profitable.

BigBasket has a large, established customer base that it can leverage due to its long-standing presence. Additionally, its collaboration with Tata Neu and the broader Tata Group brings a significant base of Tata customers, who are also becoming BigBasket customers, helping to keep acquisition costs low.

Indeed, BigBasket has an edge in the quick commerce segment because, unlike newer players like Blinkit or Dunzo, it has been in the grocery and F&B delivery space for quite some time, Karan Taurani of Elara Capital said.

However, while BigBasket has shifted focus from traditional deliveries to quick commerce, they haven’t yet established a unique selling proposition (USP) that sets them apart from competitors. Currently, their product assortment and customer experience is either average or lagging behind their peers, per Taurani.

With the quick delivery race heating up, it will be intriguing to see how BigBasket gains ground in the quick commerce space, challenging established players like Blinkit, Swiggy Instamart, and Zepto.

[Edited By Shishir Parasher]

The post Can BigBasket Find Its Quick Commerce Groove? appeared first on Inc42 Media.

In the last 30 years, the Indian dairy industry has grown leaps and bounds in a country that once was grappling with a dire shortage of milk. Thanks to Verghese Kurien’s Operation Flood, commonly known as The White Revolution of India, the country today accounts for 24% of the world’s total milk production, contributing 4-5% towards its own GDP. By 2030, India aims to further expand its global milk production share to 30%.

However, despite the growth, the country’s presence in the global dairy export market remains minimal. This disparity is largely due to India’s struggles with meeting international sanitary standards and certification requirements. Issues related to milk adulteration, contamination, and the presence of harmful substances like pesticides and veterinary drugs further hinder India’s ability to compete on a global pulpit.

Who is to blame? Well, the error lies in the fact that the Indian dairy industry, to this date, lags in the adoption of modern dairy farming practices, such as automated milking, precision feeding, and other sustainable farm management technologies.

This has hampered the product quality. Moreover, there is a significant gap in research and development in areas like cattle genetics, feed quality improvement and disease management, leading to suboptimal dairy practices.

This is where ORIGHT claims to be rejigging the equation. Founded in 2019, ORIGHT is focussed on creating an ecosystem that benefits all stakeholders in the dairy industry.

By incorporating advanced technology into the milk procurement process and ensuring timely payments to farmers, the startup seeks to foster transparency and efficiency within the dairy supply chain.

Helming the startup are Utkarsh Kapoor and Rame Ji Kachroo, who bring technical know-how from their diverse professional backgrounds. While Kapoor has a background in deploying robotic process automation across markets in the US, India and Southeast Asia for American Express, Kachroo is a technocrat, who has spent nearly two decades at Canon developing business applications and sales systems.

The founders first met at INSEAD in 2017, and from there, the inception story of ORIGHT started, which finally came into being in August 2019.

Upon their subsequent interactions, they identified and zeroed in on the problem areas, including milk adulteration, which they vowed to help the Indian milk supply chain get rid of.

With their experience in technology integration, the founders decided to transform these operational challenges by digitising the milk supply chain, thereby addressing the pressing need for clean and safe milk collection practices.

ORIGHT’s Dairy Tech Vision Gets Validation

In the early days of founding ORIGHT, the founders laid stress on addressing the issue of milk adulteration within the dairy market. During the Covid-19 pandemic, they worked on creating a comprehensive software solution. Besides, they were also working on building a device to test adulteration, which became the base of their first pilot project.

During this period, they also engaged with various dairy companies to understand their specific challenges and to identify how they could effectively address these problems.

In early 2020, ORIGHT conducted a pilot with a small dairy company in Haryana. This pilot gave them the validation the two had been looking for.

After this pilot, the founders went on a business development spree, conducting meetings with clients across India.

Their efforts paid off when they onboarded Ananda, one of the largest private dairy companies in North India, as their first client.

“What we’ve accomplished with Ananda is remarkable; their entire supply chain, from 500 to 5,000 collection centres, is now utilising our solution. Every stakeholder, from farmers to the head office personnel, can access real-time data through our application. This transparency has been incredibly satisfying and rewarding for us as founders and creators of this idea. Not only has our solution helped Ananda save significant costs, but it has also improved the quality of the milk being collected at their centres,” Kapoor said.

ORIGHT’s Suit Of Solutions

After completely digitising Anand’s supply chain, ORIGHT began receiving orders from other dairy companies, including Kamdhenu and Amul. Currently, ORIGHT offers a suite of solutions to enhance transparency, efficiency, and inclusivity throughout the milk supply chain.

One of its primary offerings is the Supply Chain Management Mobile App, which enables real-time data access and analytics for all stakeholders, including producers, collection centres, chilling centres, dairy plants, and end consumers.

The app not only streamlines operations but also empowers small and marginal farmers by providing them with access to vital agricultural inputs like silage and feed. It also offers educational modules on better farming practices.

“We provide farmers with a digital milk passbook that clearly outlines the amounts they are owed from the dairy. Second, we ensure that the collection centres maintain accurate records and collect high-quality milk. For dairy companies, we guarantee that both the quantity and quality of milk are verified right from the transport level, with all data provided in real-time. This eliminates any issues of pilferage or inflation in the supply chain,” Kapoor said.

In addition to the mobile app, ORIGHT has introduced ORIGHT Sense, a plug-and-play IoT device that extracts milk testing data and uploads it to the cloud. This data can then be accessed in real-time for a transparent procurement process.

Another interesting offering from the startup is MilkoReader, an IoT-enabled milk testing machine. This device can test for six adulterants and eight milk composition parameters in under 45 seconds, providing rapid and accurate results that enhance the integrity of the milk supply chain.

“The industry has evolved significantly since we began. Initially, there was a strong emphasis on addressing milk adulteration and improving quality control. Over time, we’ve integrated more technology into our offerings, adapting to the needs of the market,” Kapoor said.

What’s Next For ORIGHT?

Currently, ORIGHT has also built a revenue model relying on two primary streams. First, the startup generates one-time revenue through the sale of its IOT devices, which is also the largest contributor to its revenue stream.

In addition, it earns revenue through its Software as a Service (SaaS) platform. The startup generated $1 Mn in FY24 revenues. The company is looking to amplify this number by two to three times this fiscal.

Just last month (September 2024), it raised $1 Mn in a round led by Aeravti Ventures. Besides this investment, Loyal VC has infused $500K (pre-seed) in the company.

Going forward, the startup plans to expand its offerings by deploying a comprehensive fintech solution within its existing application to cater to the diverse needs of the farmer community, suppliers managing collection centres, transporters, chilling centres, and dairy professionals.

It is also planning to introduce an Aadhaar Enabled Payment System (AEPS) to allow farmers to withdraw cash from their bank accounts at the same collection centres where they deliver their milk. By utilising biometric authentication, the process ensures security and ease of access for farmers, streamlining their transactions and enhancing financial convenience.

Additionally, ORIGHT plans to roll out a loan facility for farmers through the application, beginning in November. Moreover, it is looking at expansion into the Global South by targeting emerging economies. For this, the company will have to shift its focus on tailoring its product and service offerings to meet the specific needs and regulatory requirements of each region.

As of now, the startup is trying to operate at the centre of the Indian dairy tech ecosystem, providing everything from quality checks to supply chain automation and management via its app and IoT devices. In addition, its fintech aspirations seem bold at a time when the RBI is apprehensive about extending credit lines.

All in all, ORIGHT is operating in one of the world’s most promising dairy sectors. Giving heft to this are projections that the Indian dairy industry would become an INR 49.95 Lakh Cr opportunity by 2032, growing at a CAGR of 13% from 2023.

[Edited By Shishir Parasher]

The post How This Dairy Tech Startup Is Unclogging Milk Supply Chain Bottleneck In India appeared first on Inc42 Media.

Indians’ love affair with spicy foods is no secret. Whether it’s the tongue-tingling heat of different kinds of Indian curries or the fiery kick in street food, bold and intense flavours are a staple of India’s palates. However, with global trends shifting toward healthier eating options, Indians have started to cut back on spices.

But this craving is hard to get rid of, and it is very much evident from the way Korean cuisines have made their way into our lives, encouraging adventurous foodies to embrace “swicy” (sweet and spicy) flavours that push the limits of heat. Globally, too, the demand for spicy food and beverages is on the rise. Even Coca-Cola launched a spicy raspberry flavour soda earlier this year.

Serving the need to satiate the global palate craving for spicy foods and flavours is the global hot sauce market, which is expected to become a $7.9 Bn opportunity by 2032, growing from $5.2 Bn in 2023. However, this space is currently dominated by global giants like Tabasco and Heinz.

Back home, Sagar Merchant and Arjun Panwar (who joined the endeavour later) are laser-focussed on breaking this global dominance with their killer hot condiments and sauces, Kaatil. Founded in 2022, the Indian D2C brand aims to shake up the global condiment scene with the country’s diverse and vibrant range of chillies.

The founders also want to reclaim India’s position as the king of fiery flavours on the world stage. He claims to have generated INR 1.5 Cr revenue in FY24 and projects 2-3X growth in FY25.

Kaatil’s Killer Plot

After completing their graduation in business administration, batchmates Merchant and Panwar went on with their lives. Due to his interest in food, Merchant joined a food studio in Bombay. Here, he started learning about food and food products. The studio was led by a UK-based chef whose family runs the Indian food brand, Patak’s.

At the time, hot sauces, hot condiments, and other sauces (in general) were growing in popularity because people were eating out more, travelling, and becoming more knowledgeable about global condiments. There was also a growing focus on chillies and bold flavours.

This was when the idea to float Kaatil struck him.

“People were used to ketchup and regular chilli sauces. Therefore, I thought why not put the spotlight on Indian chilies? Just like how coffee beans, craft beers, and craft alcohol from India have gained focus as premium ingredients, I believed that chillies were an unexplored gem. This is how Kaatil came into being. The idea has been to create global condiments using Desi chillies at different heat levels,” Merchant said.

Kaatil’s concept is centred around the idea of heat levels (on a scale of 1 to 9). Kaatil’s products follow a distinctive nomenclature system where numbers represent heat levels. For instance, their hot sauces range from “Number 4,” which is medium, to “Number 7,” which is medium-high, and “Number 9,” which is super hot.

This same approach is applied across other categories, like ketchup—”Number 2″ for mild and “Number 9” for very hot. This system simplifies the customer experience, making it easy to choose a product based solely on the heat intensity that suits their preference.

Merchant launched Kaatil with three products—two hot sauces and one hot ketchup—each defined by its unique heat level rather than a typical name. In the last one year, Kaatil has expanded its portfolio with four more unique products, including chilli oils at heat levels “Number 7” and “Number 9,” and an additional hot sauce, “Number 9,” which is the brand’s bestseller made from Bhut Jolokia (Ghost pepper) sourced from Assam.

One of Kaatil’s biggest standout factors is its use of authentic Indian chillies. Each sauce highlights distinct regional flavours — such as Byadgi and Guntur chilies from South India in their “Number 4” sauce, or Lavangi chilies from Kolhapur in “Number 7.”

“These products offer more than just heat; they deliver a nuanced flavour profile reflective of the local cuisine where the ingredients originate. Additionally, we use 2-3 times more ingredients than typical sauces, incorporating fresh vegetables and real chillies, which go through a signature process that enhances their natural smoky and toasted flavours,” Merchant said.

The startup avoids cost-saving shortcuts, like adding oleoresins or chilli extracts in its sauces, and relies on pure, real ingredients sourced from top suppliers. While it does not have direct partnerships with farms, Kaatil ensures that the chilli sources meet high standards of hygiene and quality. These chillies also undergo lab tests and other checks to maintain the integrity of the products.

Kaatil’s products are crafted using an in-house formula and process, developed entirely by Merchant. Despite outsourcing the manufacturing, the startup oversees every detail of the production process, including the precise temperature, time for each step, and ingredient selection.

Inside Kaatil’s Omnichannel Pit

According to Merchant, the startup has been highly focussed on building an omnichannel business from the very beginning, aiming to grow its presence simultaneously across its website, Amazon, other marketplaces, offline retail, and export markets.

“This approach is a conscious decision, based on industry insights. Relying on just one channel can limit awareness among the right audience and lead to overspending on making that single channel profitable while missing opportunities in others. We aim to sustainably grow each channel at a measured pace, ensuring a strong presence at all relevant touchpoints,” he said.

For instance, when expanding into Mumbai’s offline retail market, Kaatil focussed on stores that comprised its ideal customers, rather than spreading itself too thin across all outlets. Similarly, in the US, Kaatil has already launched on Amazon and plans to enter offline retail within the next three to four months. Quick commerce platforms are also part of Kaatil’s future strategy.

Currently, Kaatil claims to have seen strong sales growth across multiple channels, with each product performing well in different markets. One example is its Number 4 and Number 7 hot sauces, which are making waves in offline retail, while the Number 9 hot sauce has set the online market ablaze. In the US, chilli oils are spicing up things and heating up the market.

Meanwhile, per the founder, the startup’s digital customer acquisition strategy revolves around two key avenues — performance marketing and brand building through social media.

The performance marketing strategy focusses on showing potential customers real-world use cases of Kaatil’s products. Hence, the startup leverages content such as videos of actual customer reactions recorded at exhibitions, offline stores, and public events.
The brand also engages with existing customers through WhatsApp, sharing new recipe ideas, launching new products, and collecting feedback to refine their campaigns further.

“For offline customer acquisition, Kaatil relies heavily on tastings through promoters stationed at supermarkets and premium stores. This tasting model allows customers to sample a range of products, and it has been highly effective in increasing average order value,” Panwar said, adding that customers who originally planned to buy one product often end up purchasing two after tasting the variety offered.

Kaatil’s Fiery Future Plans

As of now, the Mumbai-based D2C brand aims to expand its presence across multiple geographies and retail channels. It also aspires to enhance its retail footprint by setting up premium stores in major metros throughout India. It has set a goal of reaching 2,000 stores within the next three years.

Recognising the potential for international success, Kaatil is committed to positioning itself as a premium Indian brand in the global market. The founders see a unique opportunity to fill the gap left by traditional Indian brands abroad.

Financially, Kaatil projects INR 50-100 Cr in revenues over the next three to five years. The company claims to have experienced significant growth, with monthly increases of 25% across individual channels and an overall growth rate of 30% to 40%.

In terms of product expansion, Kaatil plans to launch four to six new products within the next year, exploring additional condiment categories and venturing into ready-to-eat and snacking segments.

However, this transition is not going to be easy, especially when there are other more established new-age brands like Veeba, nutrition-focused D2C brand Troovy, and even handcrafted saucemakers like Masterchow.

The fact of the matter is that Kaatil is just one of the many sauces and condiments brands that India has to offer to this world. Its current playbook, which is Indian chillies, could be easily aped by the existing or new players entering the market, making the brand redundant, unless its flavours are so distinguished that it is hard for its customers to switch to other brands. On the other hand, however, if the brand is able to decode this, it has the potential to become the next Tabasco or Heinz.

[Edited By Shishir Parasher]

The post Can Kaatil’s Fiery Indian Flavours Challenge Tabasco’s Global Dominance? appeared first on Inc42 Media.

The Indian fashion market was somewhat in a pickle in the first half of the ongoing year due to subdued discretionary spending since late last year. Not to mention, the big fish, including Reliance Retail’s fashion and lifestyle division, Raheja Corp’s Shoppers Stop, Pantaloons of Aditya Birla Fashion and Retail and Tata Enterprise’s Westside, felt the sting of the visibly muted demand.

In the first two quarters (Q1 and Q2) of the financial year 2024-25 (FY25), major retail players reported weak fashion demand due to a prolonged heat wave, elections, and inflation.

While Shoppers Stop recorded a consolidated net loss of INR 22.72 Cr for the June quarter (Q1), attributing it to low consumer spending, Reliance Retail saw only a 6.6% YoY increase in Q1 revenue and a 3.5% drop in Q2, driven by weak demand in its Fashion & Lifestyle division. Similarly, Aditya Birla Fashion Retail Ltd (ABFRL) reported sluggish sales in its Pantaloons business during the first quarter.

Notably, there was no respite for ecommerce players, too. For instance, Nykaa’s second-quarter updates highlighted weak fashion sales during the first half of the financial year.

However, things are starting to look up. The ongoing festive season has sparked renewed demand, with both industry players and experts reporting an uptick, largely driven by festive cheer and a preference for premium products.

Supporting this is SaaS startup Unicommerce’s data, which shows that the gross merchandise value (GMV) across fashion and accessories grew by more than 18% during the first 10 days of the festive sale season (from September 26 to October 5) compared to last year.

Notably, during the first leg of this year’s ecommerce festive sale season, which ran from September 26 to October 6, fashion emerged as the top-performing category, driven by strong demand for ethnic wear, according to a RedSeer report.

Fast Fashion Witnessing Rapid Growth

Amid the changing demand trends, senior vice president of Elara Capital, Karan Taurani, expects the overall fashion segment to grow in early double digits. He is, however, more bullish on the fast fashion segment, which he sees growing in the mid to late teens.

“Emerging trends clearly indicate that consumers are spending more aggressively on fast fashion due to the appealing styling of the products, their desire for frequent changes in fashion, attractive prices, and an improved user experience. A substantial shift is happening from the unorganised sector towards fast fashion, which is expected to see robust growth in the fashion industry,” Taurani said.

Taurani’s thesis aligns with the fast fashion sector’s strong performance in India, especially in online shopping, with Gen Z leading this growth.

It is crucial to note that fast fashion was one of the few outperforming sectors in India’s retail market last year. While the broader fashion market in India saw flat year-on-year growth of around 6% in FY24, fast fashion grew at a much faster rate of 30-40%, according to the RedSeer report.

This trend is dominating this festive season. A case in point is fast fashion brand NewMe, which saw growth across the board in order volume, offline revenue, walk-ins at its stores, and online retention rates. According to founder Sumit Jasoria, the brand experienced 35% growth in September compared to the previous month.

“Our festive season starts in October and runs through December. We are not listed on marketplaces like Flipkart or Amazon, so we rely solely on our direct channels. Last month was actually the best month in the company’s history, so we’re feeling very positive. We’re confident that the next two to three months will be excellent for growth,” Jasoria said.

Demand Tsunami From Tier II, Tier III Cities

Neck and neck with the fast fashion surge, the growing number of online shoppers from Tier II and Tier III cities is making this year’s festive season worth remembering.

Increased exposure to fashion trends and rising disposable incomes of individuals from these regions are the key factors driving demand in favour of established brands and new D2C players offering high-quality, trendy clothing.

According to Unicommerce, Tier III and smaller regions (in the first 10 days of this year’s festive season) saw the highest growth in order volumes (a 21% increase) while Tier II cities experienced a 20% rise. In Tier I cities and metros, order volumes grew by more than 18%.

During this festive season, Myntra reported strong activity from cities like Jaipur, Lucknow, Patna, Guwahati, Surat, Indore, Bhubaneswar, Bhopal, Ranchi, and Nagpur, as consumers in these regions “shopped to their heart’s content,” the company said.

In Tier II and smaller markets, the unbranded or value segment in women’s apparel, daily-wear jewellery, and kids’ fashion also experienced significant growth across marketplaces, the RedSeer report has revealed.

The Flavour This Festive Season Is Premium

Speaking with Inc42, a Unicommerce spokesperson said that this year’s festive season is being driven by categories like ethnic wear, travel accessories such as neck pillows, travel pouches and kits, waist pouches, kids’ accessories, jewellery, earmuffs, bows, and watches.

According to Zeba Khan, director of fashion and beauty at Amazon India, there has been a discernible trend towards premiumisation, particularly in categories like watches, luggage, shoes, and beauty.

“Smartwatches saw a 10X increase, while premium watches grew 6X, reflecting strong interest in premium lifestyle products. Men’s sneakers witnessed over 7X growth, trolley sets soared by 23X, and luggage sales jumped 6.5X,” she said, adding that premium brands such as Seiko, Mathey Tissot, Tommy Hilfiger, Guess, Swarovski, Satya Paul, and Laneige are selling like hot cakes.

This spike in premium product demand can be attributed to both the ongoing festive season and the delayed wedding season, which has now shifted to October, November, and December, Elara Capital’s Taurani highlighted.

As the festive season commenced with celebrations like Onam, Ganapati, and Durga Puja, fashion retailers witnessed an initial boost in demand across various states. However, the true demand surge is expected to come during Diwali and the upcoming wedding season.

While offline growth is anticipated to be around 8-10%, the online fashion segment is projected to outpace this with a growth rate of 18-20% in the October-December quarter.

To sum it all up, industry experts believe that while spending discretion is driving the demand of value-based categories, premiumisation is keeping the game interesting for fashion and lifestyle players (both online and offline) this festive season. 

[Edited By Shishir Parasher]

The post How Fast Fashion Boom & Premiumisation Will Supercharge India’s 2024 Festive Sales appeared first on Inc42 Media.

D2C jewellery brand GIVA has raised INR 255 Cr ($30.3 Mn) as a part of its extended Series B funding round from Premji Invest, Epiq Capital and Edelweiss Discover Fund.

The fundraise, with 35% primary and 65% secondary investments, also gave partial exits to A91 Partners and India Quotient.

The fresh capital infusion will fuel GIVA’s expansion plans, strengthening its offline presence across India, growing its lab-grown diamond offerings and facilitating strategic investor exits.

“Our focus remains steadfast on holding our position as the no.1 silver jewellery player in the market with further fortifying our lab-grown diamond segment, broadening our gold offerings, and consolidating our market presence,” said Ishendra Agarwal, founder and CEO of GIVA Jewellery.

Looking ahead, GIVA will focus on strengthening its lab-grown diamond segment through strategic partnerships and innovations, while expanding its gold offerings to meet the needs of discerning consumers. The company also plans to enhance its market presence through targeted marketing efforts.

Founded in 2019 by Ishendra Agarwal, Nikita Prasad and Sachin Shetty, GIVA deals in authentic 925 fine silver jewellery and later also forayed into 14K and 18k gold and lab-grown diamond jewellery. The brand has its own operated stores across the country as well as many SIS formats with Shoppers Stop and other chains.

Last year, GIVA raised INR 270 Cr ($32.9 Mn) in a Series B funding led by Premji Invest.The round also saw participation from existing investors Aditya Birla Ventures, Alteria Capital and A91 Partners.

Out of total investment, INR 200 Cr was infused as primary funding. In addition, INR 70 Cr happened through secondary stake sale giving exit to some of the early investors.

GIVA crossed the INR 100 Cr mark in terms of operating revenue in the financial year ended March 31, 2023. The startup’s operating revenue surged 97% to INR 165 Cr in FY23 from INR 84 Cr in the previous fiscal year.

The startup’s net loss rose 138% to INR 45.2 Cr during the year under review from INR 19 Cr in FY22 as its overall expenditure more than doubled to INR 212.3 Cr in FY23 from INR 104 Cr in the previous year.

The post D2C Jewellery Brand GIVA Nets INR 255 Cr To Fuel Its Offline Play appeared first on Inc42 Media.

With plans to double its sales over the next three to four years, Reliance Retail, the retail arm of Reliance Industries Ltd (RIL), continues to be a key driver of the group’s growth. 

Led by Isha Ambani, Reliance Retail operates both online and offline and across diverse verticals, including grocery, electronics, fashion apparel, beauty, footwear, food, jewellery, and lifestyle.

In Q1 FY25, Reliance Retail’s revenue rose 6.6% year-on-year (YoY) to INR 66,260 Cr, even as the numbers reveal a slight sequential dip from INR 67,610 Cr in the previous quarter. 

The company’s digital commerce and new commerce businesses contributed 18% of the total Q1 FY25 revenues, reflecting its efforts to integrate online and offline channels. Despite a 7% sequential decline in profit, Reliance Retail posted a 4.6% increase in net profit year-on-year to INR 2,549 Cr in Q1 FY25.

While grocery and consumer electronics have been key drivers of growth, Reliance Retail seems to have its sharp focus on fashion and lifestyle, too. With an expanding portfolio of brands, including Yousta, Azorte, and Gap, the company is actively scaling its presence in this segment. 

Earlier this year, Reliance Retail signed a licencing agreement with UK-based fast fashion retailer ASOS to bring the brand to India, challenging the dominance Myntra and the ilk in the GenZ space and the emergence of D2C fast fashion brands. 

Notably, the strategy to increase its folio of brands has helped Ajio, the company’s B2C online fashion platform, add nearly 2 Mn new customers in Q1 FY25. In addition, Jio Luxe, its premium luxury segment, now hosts over 700 global brands, making it a leading destination for luxury fashion in India. Not just this, its catalogue for the overall online fashion business has grown more than 20% year-on-year.

However, not all is going as planned. The company is facing headwinds due to a fall in discretionary spending of users in the fashion and lifestyle segments.

Despite this, the president & CEO of Reliance Retail Fashion & Lifestyle, Akhilesh Prasad, told Inc42 that the company will remain focussed on expanding its store count and digital presence to cash in on growth opportunities in India’s evolving retail space.

So, what’s the CEO’s plan when it comes to making a significant leap in the fashion and lifestyle space? More so, what made him recite the theory of “survival of the fittest” in a tête-à-tête with Inc42?

Here are the edited excerpts…

Inc42: The fashion and lifestyle segment has seen noteworthy growth over the past few quarters on the back of the company’s omnichannel strategy and multiple partnerships. What have been the key growth drivers so far, and how do you plan to sustain this momentum?

Akhilesh Prasad: We are part of the Reliance group, therefore we aren’t resource-constrained in any way. However, we may be formula-constrained in the sense that it could take some time to decode what works in the market and what people are looking for. 

What we’ve understood is that consumers are very aware of fashion. They want to consume it if it’s offered at a price point they can afford. Now, we’ve reached some maturity in the range we offer. While we’ve already started adding footwear, we now plan to add categories like beauty and personal care, etc. to provide a complete range of youth offerings. 

Inc42: Ajio has expanded its customer base and catalogue. How do you ensure it continues to stand out in the competitive fashion industry?

Akhilesh Prasad: Competition is crucial for market growth. If there’s no competition, the market will stop growing. So, we welcome competition. Competition is a good metric and does not mean that the industry has saturated in the absence of innovation.

For example, a Fiat car used to be sold in India, and people might say it became competitive when more brands entered the market. Now, we have 25 different brands, but we sell 150 times the number of cars we used to sell back then. 

It’s about survival of the fittest. The market is never a limitation, but what matters is if you’re fit to survive in it. For those who are fit, competition is the best thing. It all boiled down to the mindset — are you a winner, a survivor, or a complainer?

Inc42: Mono-brand websites like Tumi and Pottery Barn are becoming popular. How does this align with Reliance’s overall strategy?

Akhilesh Prasad: Mono-brand websites will be big because they offer digital access to customers who can’t reach physical stores. Direct-to-consumer (D2C) is an individual way of offering products, and specialists will enter the market as D2C brands. It’s going to be a significant play.

Inc42: Reliance has also acquired stakes in brands like Ed-a-Mamma. How do these acquisitions align with your long-term strategy?

Akhilesh Prasad: We play in all segments of the market — mass, economy, mid-premium, and bridge-to-luxury. We acquire brands that add to our offerings in any of these segments. Ed-a-Mamma, for instance, is in the premium and bridge-to-luxury segment and thus serves our cause.

Inc42:  How is Reliance leveraging AI and data analytics to enhance the customer experience in the fashion and lifestyle segment?

Akhilesh Prasad: We are moving towards full automation in fashion. We will use AI for predictive models in designing, speeding up production, and improving logistics. However, human intelligence will still play a crucial role at every stage. 

Inc42: What are your plans for the fashion and lifestyle segment, particularly digital sales platforms, in the next year?

Akhilesh Prasad: Digitally, we cover all PIN codes in the country, so our reach extends to even the remotest of the villages. As for physical stores, no one in India offers a network as extensive as ours. We’ve covered towns, districts, state capitals, A-class cities, mini metro citiess, and metros. We aim to be present in every segment.

For example, we opened our first store in a small town, Guntur, when nobody else had. In 10 years, we now have six stores there. That’s how markets grow.

Inc42: How are new formats like Azorte and Yousta performing, and what are their prospects for future growth?

Akhilesh Prasad: All the formats we’re in will see growth. We have a population of 1.4 Bn people, and the demand within India alone makes us one of the largest markets in the world. 

We’ve segmented the market and are catering to it through both online and offline channels. Our goal is to reach every customer, whether it’s a clerk’s son in a small town or someone in South Bombay. Every customer is important to us.

Inc42: Has the lifestyle and fashion segment seen a turnaround ahead of the festive season, especially the slowdown earlier this year?

Akhilesh Prasad: The festive season has been great. We’ve seen huge growth in Kolkata during Durga Puja. So, how can there be a decline in demand when the festive season is thriving?

It’s not that demand has decreased; it’s more about whether you’re catering to the customer’s changing needs. The market evolves. For example, if you only make luxury jeans, but the market shifts to cargo pants, you’ll think the market is shrinking. But it’s not, it’s just moved on to something else.

[Edited By Shishir Parasher]

The post Only The Fittest Will Survive In The Indian Fashion Industry: Reliance Retail’s Akhilesh Prasad appeared first on Inc42 Media.

Meta-owned social media platform Instagram today (October 8) faced an outage for several users in India. According to Downdetector, a crowd-sourced platform for tracking outages, many users started reporting issues accessing the app at around 11:15 AM.

The data further said that over 64% of users experienced problems logging into the app, while 24% faced server connection issues.

Users turned to X (formerly known as Twitter) to report the issues they were experiencing with Instagram. Many shared that they were met with an error message stating, “Something went wrong.”

The cause of the current outage remains unclear, and Instagram has yet to release an official statement regarding the issue.

This isn’t the first time Meta has faced an outage. In June, Instagram also experienced an outage lasting several minutes, leaving thousands of users worldwide unable to access the platform. In March earlier this year, both Instagram and WhatsApp, also owned by Meta, were down for several hours, causing disruptions for local businesses.

Before that, in April last year, some Indian WhatsApp users experienced problems downloading videos. In October 2022, WhatsApp endured a two-hour outage, prompting the company to provide an explanation to the Ministry of Electronics and Information Technology (MeitY).

A large number of local businesses are reliant on services offered by Instagram. Earlier this year, a month after introducing its “Meta Verified” service for WhatsApp Business users in India, social media giant Meta expanded the offering to Facebook and Instagram.

Meta Verified is a subscription service designed to help brands build credibility with new audiences by providing a “blue tick,” enhanced account support, protection against impersonation, and additional features aimed at improving discovery and connection.

India is home to the largest user base to Meta’s family of apps. While Facebook accounts for 378 Mn users in the country, WhatsApp and Instagram have 478 Mn and 362 Mn users respectively, as per Statista.

The post Instagram Down For Several Users Across India appeared first on Inc42 Media.

This festive season will be all about the need for speed, as ecommerce majors have now entered the paradigm of swift deliveries (same day or next day), pivoting from their earlier timeline of 4-5 days.

Making the game of deliveries insanely difficult to play will be quick-commerce players that are expected to capture the majority of the customer base seeking instant gratification. All in all, ecommerce platforms will be seen upping the ante in staying ahead of the delivery curve and ensuring that no shopper is left craving amid the festive rush.

However, this shift in ecommerce behaviour has been in the making for some time, and the trigger has been the maturity of the Indian quick delivery ecosystem, which currently drives 40% of online grocery sales.

Over the past year, ecommerce marketplaces have made significant strides in enhancing delivery speed, introducing same-day and next-day services to cater to customer demands. A vibrant example is Flipkart, which, at the start of the year, announced that it would offer same-day delivery across multiple product categories at no additional cost.

With the market at stake, Amazon followed suit, while beauty platform Nykaa and fashion site Myntra began testing same-day delivery options. Witnessing this, many D2C brands are also adapting to remain competitive.

While they may not match online marketplaces in order volume, they’re eager to offer quicker delivery options to stay competitive. A case in point is GenZ-focussed fashion startup NEWME, which recently launched 90-minute delivery for its products in select Delhi NCR areas.

Speaking with Inc42, logistics experts said that the demand for fast delivery has surged dramatically compared to last year’s festive sales. Same-day and next-day deliveries have grown 4-5X during peak periods of festive sales, now accounting for 12-15% of total ecommerce deliveries, which is a big leap from almost zero just 18 months ago.

This surge comes as ecommerce firms like Amazon, Flipkart, and Meesho are expected to register a 20% year-on-year rise in gross merchandise value, generating sales in the range of INR 1 Lakh Cr to 1.2 Lakh Cr this festive season, according to Redseer Strategy Consultants. Quick commerce is anticipated to contribute around 8% to this overall growth.

Festive Rush Paves The Way For 5X Surge In Same-Day Delivery

Speaking with Inc42, COO of Ecom Express, Vishwachetan Nadamani, said that during the festive season, the speed of deliveries naturally improves due to increased demand, with line-haul trucks operating more frequently. However, the surge in fast delivery requests is more pronounced this year.

Therefore, the executive added that the company has rolled out same-day delivery and next-day deliveries in India’s top 10 metro cities, with the infrastructure fully established to support these services.

Meanwhile, Shadowfax’s cofounder and chief business officer, Praharsh Chandra, said that the company is well prepared to tackle the same or next-day delivery rush.

“We started focussing on fast delivery with both brands and marketplaces about a year and a half ago. Back then, the industry had 0% same-day delivery, but now 10-14% of all intra-city orders are delivered the same day,” Chandra said.

Chandra noted that this trend is gaining momentum as we are nearing the peak sales season. “In fact, our same-day delivery channel saw five times growth in just one day, on the second day of the sales. We experienced some very high peaks,” he said.

Chandra sees a clear shift in consumer behaviour here, with more and more customers now wanting instant gratification. “Even for nearby zones, like orders from Bangalore to Mysore, which used to take two days, people now expect next-day deliveries,” he said.

The sentiment is being echoed across the industry. For instance, Zippee’s founder & CEO, Madhav Kasturia, sees registering 6-8X growth as all its partner brands continue to scale during the festive season.

Fast Delivery Fever Grips All Categories

Fast delivery demand has risen across categories this festive season. Electronics, beauty and personal care, fashion, and home goods have seen strong interest, with mobile phones being the most popular choice. Interestingly, on the first day of sales, Shadowfax delivered 15,000 iPhones.

However, the demand landscape is not solely dominated by electronics. Categories such as beauty and personal care, fashion, and home goods are also seeing high demand, with brands like Decathlon experiencing increased sales of sports goods, showing that consumers are diversifying their purchases.

“There’s demand in various categories. However, it’s crucial to focus on where the concentration of that demand is and whether brands have optimised their supply chains with warehouses in these top metros,” the Ecom Express COO said.

So far, demand for fast delivery is highest in metro cities like Bangalore, Mumbai, and Delhi. However, this trend is not limited to urban areas. Brands are now stocking inventory in Tier II and Tier III cities like Patna, Jaipur, and Guwahati to offer faster delivery options in these regions as well.

Navigating The Complexities Of Fast Delivery

While fast delivery services are in high demand, they come with operational challenges. One of the biggest hurdles is optimising inventory placement. Quick deliveries not only require faster transportation but also strategic positioning of inventory closer to customers.

This requires maintaining fewer pin codes per dark store, which complicates logistics, Zippee’s Kasturia said, adding that the logistics startup was addressing it by establishing localised inventory hubs, enabling quicker access and more streamlined delivery routes.

Additionally, the rising demand for same-day deliveries translates to an increased need for delivery riders, resulting in escalating costs month after month. During peak seasons, the volume can increase by 4-5X, necessitating supplementary capacity through hyperlocal delivery fleets.

“Historically, logistics have a rigid model where shipments from multiple clients are picked up, sent to a central sortation centre, and then dispatched to last-mile hubs. That entire process used to take around 16 hours. But for same-day delivery, we can’t afford that kind of delay. So, we have restructured the supply chain to bypass certain nodes when possible. This is both a technology and operational shift,” Shadowfax’s Chandra said.

While same and next-day deliveries typically carry a premium — around 25% higher than express delivery — logistics startups are actively working to optimise operational costs. By increasing order volumes and refining their processes, many have reduced the cost difference to approximately 5-10% compared to regular delivery.

Now, as the industry stands at the precipice of super-fast deliveries, building an efficient supply chain will be the most critical element for the long-term sustainability of India’s quick delivery realm.

[Edited By Shishir Parasher]

The post Festive Rush Sparks Speed War: Quick Commerce & Ecommerce Battle For Fastest Deliveries appeared first on Inc42 Media.