Have you ever dreamed of starting your own D2C business, but felt overwhelmed by the challenges? You’re not alone. I’ve been there too. Starting an ecommerce business is a big undertaking, but it’s also incredibly rewarding. I’m here to tell you that it’s possible to achieve your dreams, even if you’re starting small.

The initial overwhelm is real. But starting a D2C business is more accessible than you might think. Thinking about why is it important?

Wider Exposure: With the internet, your customers can come from anywhere in the world. And with the recent surge in online shopping, you have the potential to reach more customers than ever before.

24/7 Shop: Imagine having a business that runs itself, allowing you to make money while you sleep. Automation can make this a reality for you, freeing up your time so you can focus on growing your business and pursuing other interests.

Low Startup Costs: Don’t let budget concerns stop you from starting your own ecommerce business. There are many ways to save money, and you can even find free online store options.

Starting an ecommerce business in India can be daunting, but it’s also an exciting opportunity. Here’s a step-by-step guide to help you get started:

Step 1: Determine Your Niche & Products

Find the perfect products and niche to solve problems for your customers, with steady demand and low competition.

Step 2: Conduct Market Research

Learn about similar products, the competition, and who your ideal customers are.

Step 3: Create a Business Plan

A well-structured plan provides clear guidance for all aspects of your business, from branding and marketing to sales and finance.

Step 4: Source Your Products

Choose the best business model for you: make your own products, buy wholesale, or dropship.

Step 5: Find A Business Name and Logo

Create a brand name and logo that will capture people’s attention and stick in their minds.

Step 6: Create An Ecommerce Website

Start your online business by choosing the right ecommerce platform for you.

Step 7: Prepare for Launch

Make sure your store has high-quality product photos, optimised SEO, and a reliable shipping strategy.

Step 8: Get Your First Customer

Use digital marketing and social media to connect with your target audience and start building relationships. This will help you attract your first customers and grow your business.

The first step is always the hardest, but it’s essential for success. Starting an ecommerce business is an exciting journey full of opportunities, learning, and growth. 

The post A Step-By-Step Guide To Start A D2C Ecommerce Business appeared first on Inc42 Media.

The startup ecosystem in India has witnessed remarkable growth and innovation over the past decade. With a surge in entrepreneurial ventures, investors, and aspiring founders, it’s essential for stakeholders to ensure that their interests and investments are protected. 

This is where a shareholders’ agreement comes into play, serving as a crucial document that lays down the rules of engagement, expectations, and safeguards for all parties involved.

A shareholders’ agreement is a legally binding contract among the shareholders of a company. Its primary purpose is to establish a framework for governance, decision-making, dispute resolution, and the protection of shareholder rights. In the context of India’s bustling startup ecosystem, the importance of such agreements cannot be overstated.

One of the primary roles of a shareholders’ agreement is to provide clarity on fundamental aspects of the business. This includes the allocation of shares, decision-making processes, and the rights and responsibilities of each shareholder. This clarity helps in avoiding misunderstandings and disputes down the road.

I hardly know of any business which does not have disagreements as these are almost inevitable in any business venture. A well-drafted shareholders’ agreement provides a mechanism for resolving disputes without resorting to lengthy and costly litigation. 

It can include procedures for mediation, arbitration, or even buyout provisions in case of irreconcilable differences. Shareholder’s disagreements have been increasing over the years and there have been numerous instances in the past on these.

Key Reasons Shareholder’s Agreement Is A Must For Startups

Startups often have a dynamic model: In a startup, usually a few founders or investors hold the majority of shares. Minority shareholders need protection, and a shareholders’ agreement can ensure they have a say in critical decisions, preventing their interests from being marginalised. A well-structured shareholders’ agreement can instil confidence in investors, making it easier for startups to secure funding.

Startups are inherently risky ventures: A shareholders’ agreement can help mitigate some of that risk by addressing potential issues before they become major problems. Since India has become a fertile ground for tech startups, protecting intellectual property is paramount. A well-drafted agreement can include provisions regarding the ownership and protection of intellectual property developed by the company.

Besides these, an agreement can outline the process for selling or transferring shares, ensuring that founders and early investors can exit the business when they choose to do so. It can also set operational guidelines, defining the roles and responsibilities of key stakeholders, which is particularly important in the early stages when responsibilities may overlap.

In Conclusion

While shareholders’ agreements are crucial, they must be meticulously drafted to avoid potential pitfalls. Vague or ambiguous language can lead to misinterpretations and disputes. It’s vital to be precise and explicit in outlining the terms and conditions. 

Many startups focus on getting off the ground and overlook exit strategies. A well-drafted agreement should address how shares can be sold or transferred, preventing complications when shareholders want to exit. 

Thus, drafting a shareholders’ agreement without legal expertise is risky. Engaging legal counsel ensures that the agreement complies with Indian laws and regulations and covers all necessary aspects.

Without a doubt, a successful shareholders’ agreement in the Indian startup ecosystem hinges on the clarity of its fundamentals. They provide clarity, protection, and a framework for growth and collaboration. 

When done correctly, these agreements can be instrumental in securing the future success of a startup while mitigating potential conflicts along the way.

The post Unlocking Success: The Significance Of Shareholders’ Agreements In India’s Startup Ecosystem appeared first on Inc42 Media.

I recently visited Jaipur, India, where I met a local artisan named Ravi. He struggled to sell his handcrafted goods due to the dominance of middlemen. One of his friends helped him to setup and he decided to sell directly online, bypassing these intermediaries. The results were amazing. Not only did his sales increase significantly, but he also built genuine relationships with his customers.

Witnessing Ravi’s journey firsthand, I realised the immense potential of the D2C model.

Have you ever felt the frustration of trying to buy a simple product, only to have to navigate through a maze of middlemen? It can be time-consuming, impersonal, and leave you wondering if there’s a better way.

That’s where D2C brands come in. D2C stands for direct-to-consumer, and it’s a new way of shopping that’s taking India by storm. D2C brands cut out the middlemen and sell their products directly to consumers, which means lower prices, better customer service, and a more personalised shopping experience.

The COVID-19 pandemic changed the way we shop, with over 80% of consumers now preferring to buy online. D2C brands have stepped up to meet this demand, offering personalised experiences that build bridges between businesses and consumers.

• Hyper-personalised Shopping: Imagine a shopping experience that’s all about you. D2C brands like Wakefit are using advanced analytics to offer you a shopping journey that’s as unique as you are.
• Online to Offline Approach: While the digital world is vast and convenient, there’s still something special about visiting a physical store. Some of popular D2C brands, like Licious and Mamaearth, are now opening offline stores so that we can experience their products and services in person, no matter where we are.
• Social Media Dominance: Social media marketing is growing rapidly, and D2C brands are taking advantage of this. Brands like Neeman’s and Bluestone are thriving, thanks to their strong social media presence.
• Product Sampling: We all experience decision fatigue, which is why brands like Smitten offer product trials. This gives you the power to choose whether or not to commit to a product before you buy it.
• Express Checkout: Checkout processes can be a drag, but D2C brands are leading the way in streamlining them, making the shopping experience swift and hassle-free. 
• Sustainability: As we face the challenges of climate change, D2C brands are playing an increasingly important role. Some brands, like mCaffeine, are leading the way in sustainability, demonstrating their commitment to leaving a positive impact on the planet.

Ravi’s story is just one example of how the D2C model is transforming shopping in the digital age. As consumers, we have the power to choose brands that value genuine connections and prioritize our needs. 

When we support D2C brands, we’re not just shopping; we’re fostering direct relationships, championing innovation, and driving positive change in the marketplace.

Let’s embrace this new era of shopping, where every purchase tells a story and every brand interaction feels personal. I’m excited to see what the future holds for D2C brands and consumers alike.

The post How D2C Innovators Are Reshaping The Future Of Shopping? appeared first on Inc42 Media.

It’s no secret that India is quickly transitioning into a cashless economy. A look at our digital transactions says it all. We topped the list of countries with the largest digital payments with a whopping 8.5 million transactions in 2022, and 46% of global real-time payments comprise transactions made in India. 

But with a population of 1.4 billion, this journey to digitisation is bound to reach parts of the underserved population later than the rest. Here’s what an Oxfam report published late last year had to say about financial inclusion in the context of digital payments: “The likelihood of a digital payment by the richest 60% is 4 times more than the poorest 40% in india.” 

There are typically several obstacles that come with solving financial inclusion:

• Lack of documents: Proof of identity among the financially excluded has proved to be a great challenge. However, the adoption of Aadhar has successfully bridged this gap. As of 2022, the Aadhar coverage in the country was an impressive 92.5% with 99.9% adults having an Aadhar number.
• No formal credit history: When availing credit, the underserved population usually lacks a formal credit history. And lenders rely on such information to extend loans to cohorts who’re considered “risky”.
• No or minimal collateral: Underserved applicants lack assets that they can pledge. This, coupled with the lack of credit history makes lenders wary of extending financial aid to them.
• Small-ticket needs: It’s intuitive for financial institutions to go where the money is. And if meeting the needs of the financially excluded is a high-effort-and-low-impact pursuit, the chances of businesses extending their services to the underserved population are less likely. As a result, it often takes government-backed initiatives for financial services to meet the needs of the population.  

Most of these challenges are being addressed, thanks to government initiatives as well as technological developments. Add to this a high smartphone penetration of 71% and a steep rise in the number of bank accounts opened in the past few years, and we’re closer to achieving financial inclusion! 

In fact, we’re getting there already: As of March 2023, India’s Financial Inclusion Index stood at 60.1 out of 100, a significant improvement from 56.4 last year. 

How Are FinTechs Bridging The Financial Inclusion Gap? 

There’s no doubt that the RBI and government-led initiatives have driven financial inclusion to where it is today. But it’s hard to discount FinTechs’ role in this growth story. 

Here are some ways that fintechs have leveraged the digital infrastructure to bridge the gap and promote financial inclusion:

• Low-documentation onboarding: Thanks to the seamless linking of Aadhar to mobile numbers, fintechs are now able to onboard users with very little documentation. This has significantly simplified the KYC process, enabling better access to financial services—be it availing of loans, accessing insurance, or making use of e-wallets and payment apps for day-to-day transactions. 
• Embedded finance and accessibility to financial services: Awareness of financial services has long been an obstacle to financial inclusion. But now, thanks to embedded finance, financial service providers can go where the customers are. This means that users across the country can access digital services like payments, pay later services, and more on online platforms that they already access. 
• Lending to thin-file and NTC borrowers: Digital lenders now use alternate data to assess the creditworthiness of borrowers. This holistic approach to underwriting has made credit accessible to borrowers who have little to no formal credit history, making loans more accessible. 
• Providing sachet-ized financial services: The use of alternate data has also made lenders more open to providing credit to borrowers with low effort and more scalability. Borrowers can now easily avail of low-ticket financial services and minimum documentation. As a result, products, like equated daily payments (EDIs), are now on the rise. 

India is already on its way to becoming a financially inclusive economy. And we are sure to get there with the strong collaboration between technology, government, and innovation from fintech companies. 

Can we then rely on digitization to add to 10-12% of our economy, as expected? I, for one, am confident that we will reach this dream sooner than we expect! 

The post Bridging The Financial Inclusion Gap: How Are Fintechs Doing Their Part? appeared first on Inc42 Media.

Technology has been the crux of the Indian finance industry, fueling a pronounced shift from offline to digital modes. Started with Internet banking, fintech graduated to online payments, and account opening, and has finally led to the advent of digital lending. The lending business has been highly influenced by digitisation in India which can be attributed to amplified internet penetration and high customer expectations. 

A riveting evolution of digitisation across the Indian lending landscape with the growth of diversified fintech players and lending models has disbursed the number of digital loans by nearly 12 times by the end of 2020. 

NBFCs play a pivotal role in this emerging lending ecosystem and accounted for 55% of loans disbursed through different channels in 2020. Led by fintech NBFCs, digital lending has services ranging from personal loans to business loans to vehicle loans, loans to individuals and MSMEs for everyone from the young generation, underserved segments to salaried customers.

Digital Lending has become a popular financial choice in recent years due to its convenience and accessibility for borrowers. However, there are potential risks associated with digital lending for NBFCs and it is crucial to adopt certain risk mitigation strategies which will ensure the stability and sustainability of their business. 

Assessing Potential Risks 

The primary risk associated with any kind of lending including digital lending is the possibility of non-payment on their loan repayments. 

To mitigate this risk, digital lenders need to accurately assess the creditworthiness of the borrower by implementing advanced data analytics and credit assessment models to evaluate the borrower’s credit history and repayment capacity, which will enable digital lenders to make informed decisions and mitigate credit risk. 

Since digital lending relies on internet software and online platforms, customers are also prone to cyber-attacks, technical glitches or system failures which disrupt operations causing loss of data, and leading to errors and delays. 

Digital lending companies should invest in vigorous IT infrastructure, employee training, cyber security measures, and disaster recovery operations and ensure that security protocols are being practiced and revised to reduce operational malfunctions. 

Failure to comply with regulations related to lending practices, anti-money laundering, customer data privacy and KYC norms can result in penalties, legal issues and reputation damage. As a result, digital lending channels need to stay updated with regulatory changes and create a robust compliance framework that helps lenders avoid legal troubles and establish credibility in the market. 

Implementing Effective Risk Management Strategy 

To manage digital lending risk, lenders not only need to adopt an intelligent but proactive risk management approach catered to establish a robust credit assessment model, invest in a strong IT framework, build a regulatory compliance network and last but not least diversify lending portfolios. 

In addition to this, digital lenders can adopt advanced encryption protocols, firewalls, regular security audits and multi-factor authentication methods to protect against personal data breaches and prevent unauthorised access. Most importantly, these recommendations will help build trust in the digital lending network, thereby providing a progressive environment for the fast-paced world of digital lending. 

The RBI has also constituted a working group on digital lending which has offered a strategy aimed at achieving a balance between measures addressing the challenges posed by financial lending and reaping the benefits offered by digital lending. 

The group has provided recommendations around setting up a self-regulatory body to overlook lending channels, conducting coordination committees to address issues in the digital financing spending sphere, appointing TRAI as its member, and working towards development and compliance around baseline technology standards. 

Thus, RBI’s balanced approach will aid financial lenders in reaping the benefits of ongoing digital innovation while minimising possible risks.

Final Thoughts 

In a nutshell, digital lending offers numerous benefits for both borrowers and lenders but it comes with a certain set of obstacles that can be mitigated by employing a proactive risk management approach that is efficient and delivers promising results. 

Thus, implementing risk mitigation methods will help foster a positive customer experience powering the rapid development of a concrete and comprehensive digital financial lending industry.  

The post Digital Lending Strategies For Effective Risk Assessment And Mitigation In Finance appeared first on Inc42 Media.

In a world where industries are constantly evolving thanks to technological advances, it’s clear that Indian farmers are now poised to benefit from the latest innovations in agriculture. Drones, in particular, have emerged as a game-changing technology with the potential to transform the way farming is done in India. 

Experts who understand the field are confident that integrating drones into various agricultural activities could be a total game-changer for Indian farmers. According to their insights, the use of drones in farming is projected to grow at an impressive rate, with a Compound Annual Growth Rate (CAGR) of 38.5%. 

This growth is expected to push the size of the industry past a significant milestone, reaching over $121 million by the year 2030. In practical terms, this means that drones are on the path to becoming a significant part of the overall spending on agricultural machinery in the country, accounting for roughly 2%. 

Here are some of the reasons why drone services are embraced and could revolutionise the agricultural sector:

Drones Revolutionising Agricultural Performance And Productivity

The incorporation of drones into agriculture is driving a transformative shift towards improved performance and heightened productivity. Drones serve as indispensable tools in various key facets of farming, encompassing irrigation monitoring, crop health assessment, damage mitigation, field soil analysis, precise planting, and efficient agricultural spraying. 

These applications are executed with an unprecedented level of accuracy, reducing the necessity for extensive human labor. This technological integration translates directly into elevated production capabilities for farmers. 

By harnessing drones for tasks such as irrigation management and crop monitoring, farmers gain access to invaluable data, empowering them to make informed decisions and respond rapidly to environmental changes. As a result, agricultural output experiences a substantial boost.

Drones Can Help Cut Costs Significantly

One of the most exciting perks of bringing drones into Indian agriculture is the significant cost savings they offer to our hardworking farmers. Drones can be real game-changers by pinpointing areas on the farm that need attention, which means less manual labor and a decrease in the use of pricey pesticides and chemicals. 

They’re like high-tech farm assistants, taking on tasks like monitoring crops and keeping pesky pests in check, tasks that used to require a lot of time and effort. These smart machines automate these processes and give farmers access to real-time data, helping them make better decisions. 

In the end, this cost-effective approach isn’t just beneficial; it’s a lifeline for small-scale and resource-strapped Indian farmers, giving them the tools they need to run their farms efficiently and boost their profits.

Pollination With The Help Of Drones

Drones are revolutionising agriculture in India, expanding their role beyond monitoring and crop spraying to tackle the critical issue of crop pollination, particularly as bee populations decline. 

These innovative pollinators are equipped with specialised payloads, ensuring efficient pollen dispersion and abundant harvests even in the absence of natural pollinators. This technological leap not only signifies the evolving role of technology in Indian agriculture but also demonstrates drones’ ability to efficiently cover vast agricultural landscapes. 

Simultaneously, in the Netherlands and Japan, researchers are actively developing small drones for plant pollination, with the ultimate goal of creating autonomous pollinating drones capable of independently managing crop health, reducing the need for constant manual oversight. 

These advancements are reshaping farming practices and bolstering food security on a global scale.

Drones Safeguarding Farmers And Empowering Data-Driven Agriculture

With agriculture employing nearly 55% of India’s population, sustaining the livelihoods of around 0.70 billion individuals, ensuring safety and efficient decision-making is paramount. Tasks such as pesticide management in challenging terrains, tackling crop infections, navigating through tall crops, and avoiding power lines can pose serious risks to farmers. 

Drones have emerged as a groundbreaking solution, making these activities safe and streamlined. Furthermore, drones offer the invaluable advantage of swiftly gathering diverse data, readily accessible via smartphones. This real-time data analysis empowers farmers to make informed decisions without hesitation. 

Drones can be programmed to focus on various parameters, including crop health, moisture levels, and the identification of issues like infected or unhealthy crops. This fusion of data analytics and drone technology significantly enhances overall crop management, safeguarding farmer well-being and enhancing agricultural productivity.

Government-Supported Drone Integration

The growing integration of drones in Indian agriculture is largely attributed to robust government support. To modernise the sector and facilitate farmers’ access to drone technology and data management, the central government has introduced measures such as offering a substantial 40% assistance from Custom Hiring Centres (CHCs). 

This reflects a positive perspective, emphasising the enhancement of agricultural quality and a reduction in the cost of drone-related services for farmers. Through a combination of incentives and policies, the government actively encourages farmers to adopt drones for tasks like crop monitoring, pesticide management, and even pollination, leading to increased agricultural yields. 

This proactive approach enhances both farmer safety and productivity, while simultaneously improving overall crop management. With ongoing government backing and investments in research and development, drones are set to play a pivotal role in ensuring food security and sustainable agriculture in India.

Conclusion

The advent of drone technology marks a transformative moment for Indian agriculture. Drones have the potential to enhance agricultural practices by aiding farmers in vital activities and optimising data management, leading to increased per capita output and improved decision-making. 

As drones soar in the agricultural sector, they empower farmers to expand and thrive, supported by government initiatives to modernise agriculture. This promising technology promises a more efficient and prosperous future for Indian agriculture.

The post Revolutionising Agriculture: How Drone Services Are Transforming Farming appeared first on Inc42 Media.

I was inspired to write this article after a chance encounter at a local cafe. As I sipped my coffee, I overheard a conversation between two women at a nearby table. One of them, Sarah, was a young entrepreneur who was struggling to make her small, artisanal jewelry business stand out from the competition.

Sarah was clearly passionate and dedicated, but I could tell she was also worried. She felt like she was invisible to potential customers, and her story struck a chord with me because I had faced the same challenges when I was starting Meduit.

Sarah and I met for an hour and had a great conversation. I told her about my experiences and the strategies I used to overcome the same challenges. It was heartwarming to see the hope in her eyes when she realised that she could grow and succeed with the right approach.

This encounter inspired me to create an article to offer practical advice and encouragement to other entrepreneurs who may be struggling to be seen in a competitive world.

In a world where big brands dominate, remember that your authentic voice, consistency, and genuine connection with your audience can make you stand out. Your brand may be small now, but with dedication and the right approach, you can create a lasting impact.

Social Media – Your Goldmine

• Organic Content: Share your brand’s story and values regularly. Videos often resonate more with people, so consider using them to capture your audience’s attention.
• Micro-Influencer Collaborations: Partner with real micro-influencers who share your values. Their authentic engagement can put your brand in front of a new audience without breaking the bank.
• Community Engagement: Be a part of the community you’re building, not just a broadcaster. Engage in conversations, respond to feedback, and listen to what people have to say.

Email/WhatsApp Marketing – Direct & Personal

• Build & Segment: Offer valuable content or discounts to encourage people to sign up for your email/WA list. Once people have subscribed, segment them based on their interests and demographics so you can send them more relevant messages.
• A/B Testing: Try different types of content to see what your audience responds to best. Test different subject lines, email formats, and calls to action to see what gets the most opens, clicks, and conversions.                            

Be relevant and less salesy.

Stellar Customer Experience – Your Brand’s Best Friend

Happy customers are your best brand ambassadors. Make sure your website is easy to use, respond to inquiries quickly, and be transparent, especially about shipping. When you go above and beyond for your customers, they’re more likely to recommend your brand to others. After all, word-of-mouth is the best advertising.

As you embark on your journey to succeed in this competitive world, remember that great things often come from humble beginnings. Sarah’s story, the inspiration behind this newsletter, is a testament to the power of perseverance and innovation.

Her journey is an inspiration to us all. Your brand has limitless potential, and with hard work, the strategies shared here, and a steadfast belief in your unique vision, you can light up the world with your presence.

The post A D2C Guide To Uncover The Secrets To Brand Visibility appeared first on Inc42 Media.

The recent news of slapping huge GST tax demand notices on several companies operating in the nascent egaming sector surprised many. What did not surprise was the aggrieved parties’ decision to take the dispute to court. 

Of course, the stakes involved were big. Goan casino operator and now an online gaming company Delta Corp was recently issued a notice of INR 16,800 Cr in tax arrears, an amount is more than double the company’s last decade’s revenue. Delta’s revenues for the last five years amount to INR 2,260 Cr, according to Moneycontrol. The net profit stood at INR 660 Cr with INR 220 Cr worth of taxes paid. 

Dream11, on the other hand, has been issued a tax demand of INR 25,000 Cr, while its last known public valuation is INR 60,000 Cr. Previously, the largest such demand of INR 21,000 Cr was sent to Gameskraft Technology. 

The company subsequently approached the Karnataka High Court, leading to the quashing of the GST demand, underscoring the fact that no company would passively stand by while their house is being taken away. Following this, an appeal has been lodged with the Supreme Court.

These notices also inevitably raise pertinent questions on the frictions of doing business in India. We at India Development Foundation are currently conducting research on the impact of Indian regulations and their impact on Private Venture investments. During our multiple conversations with senior partners at leading VC firms, we were surprised to learn that the Indian “friction factor” is a given and is factored into the business and financial models by investors. 

The powerful of course understands it is holding all the cards in this zero-sum game. As a former union minister famously remarked during the peak of the Vodafone tax case, “Investors have no choice but to come to India.” 

There are also serious economic implications involved – while the big companies might be prepared to operate in this uncertain environment, what do we expect the small startups to do? If businesses have to live in fear and uncertainty not knowing when and how the next strike will come from up above, it perversely incentivizes small businesses to stay small, for they can sense that growing big will attract undesirable attention. 

If starting a business in India involves taking risks, growing it requires serious commitment. One must settle down, register their company locally, hire, grow, raise and invest money, and then stay put for 10 or 20 years to reach a certain scale. 

It is no hidden secret that many Indian startups like to register their businesses in Singapore, Dubai or other locations. Others do it after reaching a certain scale, in order to show that they are still small in India. 

As many as 1,777 foreign companies have closed their place of business in India, as per a Lok Sabha submission in 2022. The question to ask is why are these companies shutting down?

Uncertainty in policy making leaves all businesses grappling with the fear of the unknown – what new regulatory demand is coming up and when? Take for example the GST tax notice issued to gaming companies. 

This notice is for the period between 2017 and June 30, 2022, which is puzzling as the amendments don’t mention retrospective application, and they are being called “clarificatory” and are still said to apply to past periods. 

Another example is of the Data Protection Act – the importance of Data Protection was first mooted by the AP Shah Committee in 2012. It took 11 years for India to finally pass a law. Similarly, “Cloud computing” was first mentioned by the DoT in 2012, but we still don’t have a coherent or even a draft National Cloud Strategy (Meghraj is about GI Cloud).

In contrast, a committee was setup in February 2023, to come out with an entire draft law on digital competition in three months flat. It is still in the works. In April 2023, a circular was issued to set up Gaming SROs, ostensibly to weed out the fly by night operators and protect consumers. 

A three-month deadline was given, which has long passed. The process is still in the works. Many companies such as Fantok, a gaming platform, are suspending operations citing uncertainty in regulations as a reason.

In earlier prominent cases, such as the Vodafone-Hutchison retrospective tax dispute a protracted disagreement unfolded between the Indian government and Vodafone regarding capital gains taxes. This situation underscored the prevailing uncertainty within India’s tax landscape.

All around uncertainty in policymaking significantly increases the India friction factor. While the big guys can afford to go to court, the small guys keep wondering if they must stay small in India or take their businesses outside India. 

While the entrepreneurs would like to set up their businesses abroad, the investors in turn keep their friction-adjusted financial models in place, while continuing to look for greener and smoother pastures.

India has received roughly INR 6.5 Lakh Cr (or $77.5 Bn) of funding through the private route into startups over the last 15 years alone, according to data from Tracxn. In -commerce alone, India has created over 33,000 startups. 

The question is what these numbers would have been like if the “India friction factor” was reduced by 0.5% or 1% or 2% or if there were more regulatory certainty. Perhaps the financial models of VC firms can tell us that.

The post What The GST Tax Notices To Gaming Companies Tell Us About India’s ‘Friction Factor’ appeared first on Inc42 Media.

In recent years, the healthcare industry has witnessed a significant transformation, largely attributed to the emergence of artificial intelligence (AI) and machine learning technologies. 

AI has undeniably made noteworthy strides in healthcare, particularly in diagnostic processes. AI-powered solutions have revolutionised disease identification and treatment by rapidly and accurately analysing medical images such as X-rays and CT scans. 

These innovations have led to improved diagnostic speed and accuracy, which, in turn, have the potential to enhance patient outcomes and reduce healthcare costs.

However, it is essential to acknowledge that AI’s impact extends beyond diagnostics and is not without its challenges. While AI-powered solutions have demonstrated capabilities in detecting diseases in asymptomatic patients, questions regarding accuracy and reliability must be considered. 

The deployment of AI in healthcare also raises concerns about data privacy, security, and the potential for bias in algorithms, which require ongoing scrutiny and safeguards.

Moreover, the transformative potential of AI in healthcare is not evenly distributed. In regions with disparities in healthcare access, AI can indeed help level the playing field, but the implementation of such technology must be carefully managed to ensure it reaches those who need it most. 

Role Of AI-Powered Tools

Recent case studies have shown that this is possible. AI-powered tools have reduced reporting times in smaller healthcare facilities with limited specialist resources. This innovation has had a positive impact on stroke care, emphasising the importance of timely diagnosis and intervention. 

Beyond regional boundaries, AI has shown promise in improving lung health globally. Collaborations between AI providers and healthcare organisations have resulted in innovative solutions for pulmonary diseases, contributing to the early detection of lung cancer and chronic obstructive pulmonary disease (COPD), among other conditions.

Globally, AI healthcare applications have made significant strides in streamlining patient information access for healthcare professionals, thereby facilitating more informed and efficient decision-making. Among the notable advancements, the integration of AI-driven electronic health records (EHRs) has had a profound impact on patient care and healthcare delivery efficiency.

Traditionally, accessing and retrieving patient information from paper-based records or older digital systems could be time-consuming and, at times, cumbersome. However, with the incorporation of AI into EHRs, healthcare providers now have at their disposal a powerful tool that not only digitizes and organises patient data but also augments their decision-making capabilities.

One of the key advantages of AI-driven EHRs is their ability to streamline the process of retrieving patient information. Through natural language processing (NLP) algorithms, these systems can swiftly interpret and extract relevant data from a patient’s medical history, test results, and treatment plans. This means that healthcare professionals no longer need to sift through extensive records manually, saving valuable time that can be redirected toward patient care.

Moreover, AI-powered EHRs offer real-time updates and alerts. These alerts can notify healthcare providers of critical changes in a patient’s condition or lab results, ensuring that healthcare teams remain well-informed and can respond promptly to emerging medical issues. This real-time monitoring and notification system can be particularly vital in emergency situations or when patients require rapid intervention.

Another advantage lies in the ability of AI to identify patterns and trends within patient data. By analyzing vast datasets, AI algorithms can identify correlations that might not be immediately apparent to human practitioners. This analytical capability can assist healthcare professionals in making more accurate diagnoses, predicting disease progression, and tailoring treatment plans to individual patients.

In personalised medicine, AI has the potential to revolutionise treatment approaches by analyzing vast datasets of patient information and genetic profiles. This can lead to tailored treatments, optimizing therapeutic outcomes, and minimizing potential side effects. 

In Conclusion

While AI undoubtedly offers tremendous potential to enhance healthcare, it’s important to recognise that its integration into the industry is an ongoing journey filled with both promise and complexity. 

The rapid advancements in AI technology raise questions about the need for ongoing training and education for healthcare professionals to effectively utilise these tools. 

Additionally, the ethical considerations surrounding AI, such as data privacy and algorithm biases, must be addressed vigilantly. Striking the right balance between innovation and safeguarding patient interests remains a key challenge. 

Nonetheless, as we navigate these challenges, AI’s transformative role in healthcare continues to evolve, offering exciting opportunities for improving patient care and healthcare practices.

The post AI Advancements In Healthcare: Promise, Progress And Pitfalls appeared first on Inc42 Media.

From the age-old barter systems to today’s snazzy fintech apps, India’s financial lending game has gone through a whirlwind of changes. Traditional lending has its nostalgic charm, but it was during the British colonial period that things got a bit more official. 

Fast forward to the 20th century, and we’re looking at a financial democracy in action with bank nationalisation. The 90s shook things up a bit more, welcoming private banks and NBFCs to the party. 

Now, in the 21st century, tech is the superstar, catapulting India’s fintech sector from a respectable $270 Bn in 2022 to a jaw-dropping anticipated figure of $1.3 Tn by 2030. And digital financing? It’s front and center, leading this transformation.

How Technology Reshapes Financial Lending?

Technology and society have always been interwoven, evolving together. Think back to the days dominated by paperwork and lengthy queues for loans. Yes, they’re getting a makeover, and the pandemic gave that a push. 

But it’s not just about giving old systems a fresh coat of paint. It’s a whole new world, with digital as the star. 

Here are some of the key factors boosting technology-based financial lending in India:

Growing Digital Adoption

Okay, we’re living in a digital wonderland now. More folks with smartphones, better internet, and even grandma is on video calls! Amidst this digital buzz, our government is pushing the digital dream hard. 

Just to throw some cool numbers at you: Aadhar has signed up 1.3 Bn of us, Digilocker is the go-to for over 13.7 Bn users, and UPI is playing ball with 376 banks. Seriously, 730 Bn in transactions!

Tech-Driven Foundation

India Stack, a cohesive set of APIs, has transformed digital interactions between lenders and platforms. Anchored by Aadhaar, eKYC, OCEN, Account Aggregator, and UPI, it ensures seamless, secure transactions. Imagine integrating RC (Registration Certificate) documents for automobiles and home loan registries into this system. 

Such advancements could significantly broaden the scope and impact of digital lending, especially for secured loans. 

Lenders Embrace Advanced Tech

India’s rise as a leading fintech market can be attributed to its swift embrace of technological solutions in lending. The pandemic, combined with government initiatives, bolstered the appeal of digital loans—known for their flexibility, rapid disbursal, and online accessibility. 

Seeking to cater to the evolving preferences of digital-native consumers, lenders have actively stepped up their technology budgets, optimising the lending journey across different lending products.

Streamlined Underwriting With Analytics

Digital lending leverages automated underwriting and big data analytics. Lenders employ advanced algorithms to swiftly assess data like credit history and income, ensuring rapid and accurate decision-making. 

With analytics, they delve into borrowers’ data, from spending habits to social media, offering tailored loan terms and competitive rates.

Efficient Loan Processes: Say goodbye to waiting periods. Digital platforms are now like those efficient baristas—quick, precise, and no fuss! Repaying loans? A breeze, thanks to snazzy payment systems.

Elevated Customer Interaction: It’s the age of the digital concierge. Your loan details, slick interfaces, timely nudges—all at your fingertips. Got a question? Chatbots are the new 24/7 helpline, making sure you’re always in the loop.

Challenges In The Modern Financial Lending Landscape

While we’ve made some groundbreaking strides in our digital journey, there’s still a stretch of road ahead with a few hurdles. Despite the game-changing effects of UPI and the visionary India Stack initiative, about 190 Mn Indians are still on the sidelines, awaiting full financial inclusion. 

The digital divide becomes even more evident in remote regions. For many, the absence of a robust credit history remains a significant barrier in their financial journey.

Navigating the regulatory framework presents its own set of intricacies. While these regulations are crafted with the noble intent of maintaining integrity and fairness in the financial ecosystem, mastering this labyrinth isn’t always straightforward. 

There’s an ongoing challenge to find that sweet spot between streamlined processes and comprehensive due diligence. And let’s not forget about the realm of informal lending—it still looms large, with its unique challenges, notably concerning fair interest rates and associated risks.

The Road Ahead

While mature markets like the US are seeing digital credit cool off a bit, India’s charting its own epic story. Fintech startups are at the forefront, and each innovation is a plot twist. We’re not just tweaking things; we’re gearing up for a monumental shift. 

As tech and smart regulations become the dynamic duo, we’re looking at not just a digital tomorrow, but a transformative one. Buckle up; the future is going to be a wild ride!

The post The Evolution And Revolution Of Financial Lending In India appeared first on Inc42 Media.

Generative AI has gained immense popularity in recent years, powering a wide range of applications from natural language processing to image generation, and more. As organisations look to leverage the capabilities of generative AI, they must also assess whether their data centers are adequately prepared to support the computational demands of these advanced technologies. 

Generative AI is a type of artificial intelligence that can create new content, such as text, images, and music, from scratch. It is still in its early stages of development, but it has the potential to revolutionise many industries. 

These models are trained on massive datasets of existing content. For instance, a text-generating AI model might be trained on a dataset of books, articles, and code. However, generative AI models can also be very computationally expensive to train and run. This is because they require a lot of processing power and memory.

As a result, data centers need to be ready for the increased computing and storage demands of generative AI. This means having the right hardware and software in place, as well as the expertise to manage and maintain it.

Here are a few things to keep in mind while preparing data centers for generative AI: 

Increased Computational Power

Generative AI requires substantial computational power to process and analyse vast amounts of data. This demand for computational resources will drive the need for more powerful and efficient hardware in data centers. 

Storage

As generative AI models are trained on large datasets and have millions or even billions of parameters, they require more storage space. In addition, the amount of storage space required for a generative AI model will vary depending on the size and complexity of the model, as well as the size and diversity of the training dataset.

Network Bandwidth Requirements

AI systems often rely on large datasets for training and continuous learning. As AI models become more complex and datasets grow, the demand for high-speed data transfer within data centers and across networks will increase. This will necessitate improvements in network infrastructure, such as higher-capacity switches, routers, fiber optic cables, etc. 

Cooling Mechanism

Generative AI data centers require efficient cooling solution as their power consumption is very high as compared to traditional data centers. This can lead to overheating of the data center. Hence, they require effective cooling mechanism to not only prevent overheating and hardware failures but also to ensure consistent performance and reliability.   

Sustainability

To ensure sustainability while preparing a generative AI ready data center, several strategies can be implemented. These include optimizing energy efficiency through the use of energy-efficient hardware, cooling systems, and renewable energy sources.

In addition, AI model optimisation techniques, waste reduction practices, and monitoring of energy consumption are crucial for sustainability. Compliance with environmental regulations, collaboration with industry partners, staff education, and ongoing innovation are essential elements in achieving sustainability goals.

Preparing data centers for generative AI is a complex task that requires careful planning and ongoing maintenance to meet the specific needs of AI projects. To create such facilities, it is essential to focus on scalability, redundancy, high-performance computing, energy efficiency, and security.

By seamlessly integrating these elements, data centers can not only meet the present demands of AI applications but also adapt to the evolving needs of the future.

The post Generative AI Is Here: Is Your Data Center Ready? appeared first on Inc42 Media.

Within the landscape of finance and business, few milestones are as significant as taking a company public. Initial Public Offerings, or IPOs, mark a company’s transition from a privately held entity to one open to public investment. 

This pivotal moment can transform a company’s fortune and its stakeholders, including founders, employees, and investors. There is no doubt that it is a moment that requires meticulous planning, strategic vision, and strong leadership.

At the helm of this transformative journey stands the Chief Financial Officer (CFO), a key player responsible for making the company IPO-ready. 

The CFO’s role extends far beyond managing the financial aspects; they are instrumental in shaping the company’s governance, ability to attract investors, and potential for future growth.

CFO’s Significant Role In Preparing A Company For An IPO

From an investor’s perspective, a company’s decision to go public is an opportunity to become part of its journey, carefully evaluating financial health, growth potential, and overall management. 

In this context, the CFO emerges as a central figure, serving as both the guardian of the company’s financial data and the voice of the financial narrative. 

Investors look to the CFO for transparency, reliability, and a comprehensive understanding of the financial landscape. With this in mind, let’s look into how a CFO can help make a company IPO-ready.

Fundamental Financial Preparation

Effective financial preparation for an IPO is paramount and involves multiple critical aspects. Firstly, the CFO must meticulously review the company’s financial fundamentals to address any vulnerabilities in its structure. This ensures that financial statements, cash flow management, and debt structures are rock-solid.

To instill trust in potential investors, the CFO’s second crucial task is building proficient finance teams across various functions. These include controllership, Financial Planning and Analysis (FP&A), Investor Relations (IR), financial operations (FinOps), business finance, tax, treasury, and more. 

These teams must excel at their roles and prioritise continuous training and development to meet the high standards of transparency that investors expect.

Furthermore, an efficient Enterprise Resource Planning (ERP) system is the backbone of the company. It promptly provides trustworthy and detailed financial information, a key factor in fostering investor confidence. Besides, strengthening financial controls is imperative. 

CFOs must uphold compliance with accounting standards and take a cautious approach to accounting positions, often providing additional disclosures in situations with any potential for debate. 

Long Term Revenue And Profit Growth With Disciplined Operating Rigor

Investors are naturally attracted to companies that offer a compelling and sustained story of revenue and profit growth. In this pursuit, the CFO takes on a central role, bearing the responsibility of crafting a persuasive and enduring long-term business narrative. This narrative must withstand the ebb and flow of market fluctuations and unforeseen disruptions. 

A crucial aspect of the CFO’s role is benchmarking the company’s profitability against both local and global peers. Through this benchmarking process, gaps and opportunities for improvement become apparent. It’s not sufficient to merely maintain profitability; the CFO’s mandate is to drive the company towards achieving industry-standard or superior profitability, with compounding growth rates that outpace revenue compounding. 

Simultaneously, the CFO conducts meticulous reviews of costs, identifying levers for expense optimisation to align with monthly and quarterly margin targets. 

Moreover, the CFO delves into an in-depth analysis of revenue, dissecting it by various segments and cohorts. This deep dive uncovers key areas and insights that contribute to achieving the coveted growth targets. 

Additionally, the CFO champions the creation of disciplined operating rigour in collaboration with operating teams. This commitment ensures that teams are held accountable and consistently deliver on promises, thereby upholding a high say-do ratio, further enhancing the company’s growth narrative.

Custodianship Of Shareholder Money

As the custodian of shareholder funds, the CFO plays a pivotal role in making critical decisions about capital allocation. This entails aligning reinvestment, dividend distribution, or share buyback choices to maximise shareholder returns. 

Also, vigilant monitoring of the return on capital for all forms of investments – whether organic or inorganic – underscores the CFO’s commitment to sound financial stewardship.

Furthermore, Enterprise Risk Management (ERM) is a cornerstone of the CFO’s responsibilities. They are tasked with spearheading the development and execution of an ERM strategy that embraces proactive risk management. This comprehensive strategy encompasses emerging risks such as cybersecurity and evolving customer and competitive trends. 

Additionally, beyond managing the company’s finances, the CFO is critical in upholding world-class corporate governance standards beyond managing the company’s finances. Central to this mandate is championing the Environmental, Social, and Governance (ESG) charter and cultivating a robust compliance team. 

In an era where governance lapses can yield severe consequences, the CFO fosters an environment that takes governance issues seriously and addresses them, even at the highest levels of management, to ensure swift resolution. 

Building A Positive Brand Image

A critical facet of preparing a company for an IPO is the proactive engagement with investors. Here, the CFO’s role extends to fostering a favourable image of the company, encompassing its business, activities, management, and performance. Beyond mere numbers, investors seek assurance in the people guiding the company, making the CFO’s role in creating this trust of paramount importance.

Building and nurturing relationships with an array of stakeholders, including auditors, the Board of Directors, shareholders, bankers, partners, and others, is also a central responsibility of the CFO. Trust forms the bedrock of these associations, with the CFO assuming a pivotal role in its establishment. 

Furthermore, the CFO collaborates with the Chief Human Resources Officer (CHRO) to cultivate a meritocratic culture within the organisation. This inclusive culture encourages employee engagement and responsible conduct, transforming them into brand advocates and bolstering the company’s long-term sustainability.

In Conclusion

The journey towards an IPO is a significant transition for any company. As it unfolds, the CFO emerges as a central figure responsible for preparing the organisation for this moment. Beyond the financial intricacies, they are crucial in shaping corporate governance, managing risks, and optimising capital allocation. 

Their ability to foster investor confidence and cultivate trust among various stakeholders is paramount to the success of the IPO. 

Furthermore, their dedication to nurturing a meritocracy and employee engagement culture contributes to the company’s long-term sustainability. In the dynamic landscape of finance and business, the CFO’s multifaceted role is indispensable, ensuring that a company is truly IPO-ready and equipped for a promising future. 

The post Role Of CFO In Making A Company IPO Ready appeared first on Inc42 Media.

The Startup India Seed Fund Scheme (“SISFS”) is a government initiative to provide financial assistance to early-stage startups in India. The SISFS aims to bridge the funding gap faced by startups at the seed and proof of concept stage. SISFS provides grants to eligible startups through incubators across India.

The SISFS is open to startups that are recognised by the department for promotion of industry and internal trade (“DPIIT”) and incorporated not more than 2 years ago at the time of application. 

The startup must have a business idea to develop a product or service with a market fit, viable commercialisation, and scope of scaling. 

The SISFS will help early-stage startups to validate their business ideas and develop their products and services. This will enable them to attract further investments from angel investors, venture capitalists, and other financial institutions.

Need For SISFS

The Indian startup struggles to obtain sufficient funding during its early stages, especially in the seed stages. The capital needed during this phase can often determine whether a startup with a strong business idea will succeed or fail. 

Providing seed funding to promising startups can have a significant ripple effect. It can help validate the business ideas of many startups, leading to job creation. 

This financial support benefits not only individual startups but also the entire Indian startup ecosystem, ensuring that promising business ideas are not stifled by a lack of early-stage capital, fostering innovation and economic development in the country.

Eligibility Criteria For Incubators  

To become eligible, incubators must be registered as legal entities, have a minimum of two years of operational experience, and have the physical capacity to accommodate at least 25 individuals. 

Additionally, they should have a full-time chief executive officer with expertise in business development and entrepreneurship, along with a capable team to mentor startups in various aspects. 

The selection process for incubators is comprehensive and evaluates various parameters as determined by the Experts Advisory Committee (“EAC”) such as:

• Eligibility criteria fulfilment
• Quality of the incubator team
• Infrastructure capacity
• Presence of an Incubator Seed Management Committee
• Past incubation performance
• Funding support
• Mentoring efforts
• Industry engagement
• Startup support plans, and other relevant factors  

Stringent Criteria For Incubators Without Government Assistance

For incubators that haven’t received government support, the eligibility criteria are more stringent, requiring at least three years of operation, a minimum of ten startups undergoing incubation, and the presentation of audited annual reports for the past two years. 

The selection process for incubators under SISFS is designed to assess their capabilities and track record comprehensively.

Selection Criteria For Startups

The application process involves online submissions through the startup India portal. Startups can apply to up to three incubators of their choice, and the applications are shared with the respective incubators for evaluation. 

Incubators assess startups based on the established selection criteria to determine their eligibility for seed support.

To identify the most deserving startups for SISFS, a clear and straightforward set of criteria has been established:

• Need for the Idea: Startups must address real-world problems, fill market gaps, and demonstrate potential impact.
• Feasibility: The technology or methodology used must be practical and capable of validation, supported by a clear development plan.
• Potential Impact: Startups should benefit customers and, when applicable, hold national significance.
• Novelty: The technology or idea must possess uniqueness and may include special rights or patents.
• Team: A strong and capable team with the right expertise is crucial.
• Fund Utilisation Plan: Startups must present a clear plan for how they intend to use the seed fund.
• Additional Parameters: Incubators may consider other relevant factors in their evaluations.
• Presentation: Effective communication of the idea is vital.

In Conclusion

Startups are eligible to receive a grant of up to INR 20 Lakhs to support proof of concept, prototype development, or product trials. This grant is distributed in milestone-based installments. 

Additionally, startups can access up to INR 50 Lakhs for activities related to market entry, commercialisation, or scaling, which can be provided through convertible debentures or debt instruments. 

It’s essential to emphasise that the funds must be used exclusively for their designated purpose and not diverted for creating facilities. Incubators have the authority to allocate a maximum of 20% of their total funds to startups. 

The interest rate on any unutilised funds held by the incubator is taken into account and adjusted in the subsequent release of funds by DPIIT, ensuring efficient utilization of resources.

This SISFS carries immense potential for nurturing the Indian start-up ecosystem. It empowers early-stage start-ups to validate their concepts and develop their products or services, thereby enhancing their attractiveness to angel investors, venture capitalists, and other financial institutions, and ultimately fostering innovation and growth in the sector.

The post Unlocking Opportunities For Indian Startups: The Startup India Seed Fund Scheme appeared first on Inc42 Media.

As I browsed the digital marketplace, I came across my friend Ravina, who was visibly frustrated and overwhelmed by the impersonal marketing messages flooding her inbox and social media. 

Her preferences were ignored, and her loyalty to brands went unnoticed. Seeing her discontent, I had a thought: what if brands could create a journey that truly sees and values each customer? 

As Don Peppers popularly calls it 1:1 Marketing.

This revelation sparked a deep dive into personalised customer journeys. My goal is to explore and create experiences where every individual feels seen and valued.

Welcome to a space where you are seen, heard, and valued. 

A recent study found that many consumers, especially younger ones, are willing to share their data in exchange for personalised experiences. 

This is a clear signal that brands need to focus on creating customer journeys that are relevant and meaningful to each individual.

Let’s work together to create a new and exciting chapter in your journey with us: 

Putting Your Wants First

Imagine a place where your unique preferences are valued and celebrated. You should use transparent data collection methods, like fun quizzes, to get to know the customer and its interests. Then, one should use this information to curate product recommendations that are perfectly suited to customers.

Conversations That Matter

It’s time to say goodbye to generic emails! With the power of AI, communications should be tailored to the individual preferences and needs. This means one will only receive messages that are relevant and valuable to them.

Dynamic Content That Changes With You

Consumers’ experience is constantly evolving, adapting to their interests and behaviours. From emails that highlight what they care about to a website that shapeshifts to their liking, every interaction should be tailored to them.

A Website Experience That Remembers

Whenever someone visits a website, it should help them find exactly what they are looking for. Recommend products based on their past purchases and browsing history, and even remember the items they’ve viewed recently. So that they can pick up where they left off, and discover new things they will love.

A Journey Beyond Purchase

One’s purchase should just be the beginning of their journey with your brand. Be there to support them at every step of the way, from answering their questions to resolving any issues they may have. Focus on creating a system that focuses on post purchase marketing e.g. customised VIP program, marketing flows, NPS, testimonials, referrals etc.

The post How 1:1 Marketing Empowers Personalised Customer Journeys appeared first on Inc42 Media.

Global expansion is a crucial phase in the journey of many startups, offering new horizons and growth opportunities.

Here are some practical insights on how Indian startups can formulate their strategies for global expansion. No fluff, just straightforward advice tailored for tech-savvy founders.

Identify Your Global Markets

Before you start on the global expansion journey, you need a clear roadmap. Start by pinpointing the markets where your product or service can thrive. This is where data-driven decision-making comes into play. 

For us, it meant identifying markets with higher average salaries and a willingness to invest in SaaS solutions. Conversely, we ruled out regions with lower salaries and resistance to SaaS fees. 

Your selection criteria should be crystal clear. Assess the global demand for your offering, considering factors like economic conditions, technological readiness, and cultural compatibility.

Learn From Local Players

Local competition can be your best teacher. Study the strategies of established players in your target market. What worked for them, and what didn’t? Keep in mind that what succeeded in India might not apply elsewhere. 

You must discover your unique selling proposition and craft strategies to take on the competition. While pricing can be a competitive factor, it shouldn’t be your sole differentiator in the long run. Understand your market’s specific needs and tailor your approach accordingly.

Find The Right Product-Market Fit 

Your product might have achieved success in your home market, but it’s essential to recognise that one size doesn’t fit all. Each market has its unique characteristics and maturity levels. 

Your product-market fit in India may need adjustments to match the needs and preferences of a new geography. The goal is to find that sweet spot where your offering aligns perfectly with the local market.

Leverage Existing Relationships

Starting with a foundation of trust can significantly expedite your entry into a new market. Begin by expanding with existing clients who already have a presence there. These clients can provide valuable insights into the local landscape and make introductions to potential partners or customers. However, don’t let this limit your ambition. Actively seek out new clients to drive growth and establish a broader client base in the new market.

The Founder’s Role

In the initial stages of global expansion, the founder’s personal involvement is indispensable. As a founder, you must be prepared to dive into the nitty-gritty of setting up operations in the new market. 

While your executive team can take the reins in established markets, you’ll need to be the driving force in uncharted territories. Your active involvement not only instills trust in your customers but also ensures that the essence of your startup’s vision and culture is effectively communicated.

Adapting Your Role As Founder

Founders often wear multiple hats, adapting to the changing needs of their startup. In mature markets, your focus may shift towards team management and strategic vision. 

However, in new markets, it’s back to the basics. You’ll need to be hands-on, ready to adapt quickly, and lead by example. 

This hands-on approach is vital for building trust, understanding local dynamics, and overcoming the unique challenges of the new market.

Build A Local Dream Team

The success of your venture in a new market heavily depends on the strength of your local team. Hiring local talent is non-negotiable. Local employees bring an understanding of the local culture, consumer behavior, and market nuances that you simply can’t replicate from afar. 

Building a strong local team is not just about hiring; it’s about cultivating a culture of collaboration, adaptability, and shared goals.

In Conclusion

In the world of startups, global expansion represents a significant milestone and a promising opportunity for growth. By following these practical steps, you can navigate the complexities of international expansion while minimising risks and maximising your chances of success.

Keep it simple, learn from local players, and remain true to your startup’s core values. The journey may be challenging, but with a well-thought-out strategy, your Indian startup can thrive on the global stage, achieving remarkable success and realising its full potential.

The post Strategies For Global Expansion: A Pragmatic Guide For Indian Startup Founders appeared first on Inc42 Media.

Picture this: A bustling coffee shop in the heart of a vibrant city. The aroma of freshly brewed beans wafts through the air as patrons queue up, eagerly anticipating their morning caffeine fix. Among the patrons are you, a devoted coffee drinker.

The personal touch, not just the quality of their brew, keeps you coming back to this particular coffeehouse. Every morning, as you approach the counter, the barista greets you with a warm smile and says, “The usual?” You nod, and without needing to ask, the barista prepares your signature order.

In a world teeming with information and choices, the success of any product or service hinges on the ability to forge meaningful connections with customers. In this digital age, customers like you aren’t merely looking for products; they are searching for experiences that align with their unique preferences and needs. 

To unlock the full potential of the customer lifecycle, businesses must embrace a powerful approach: contextual engagement.

The Power Of Contextual Engagement

Contextual engagement in lifecycle marketing is a game-changer. It revolves around the idea of delivering personalised and relevant content to customers based on their individual preferences, behaviours, and needs. 

The key here is to bridge the gap between what products aim to deliver and what customers truly benefit from in the long run. 

Meaningful engagement on a continuous basis between products or brands and individuals is the catalyst for a chain reaction: increased interest leads to engagement, and engagement culminates in conversion.

Here are some of the key elements of an engagement strategy

• Understanding Your Customers’ Needs and Preferences: The foundation of contextual engagement lies in comprehending your customers’ needs and preferences. Invest in gathering data, conducting surveys, and actively listening to customer feedback. The more you know about them, the better you can serve them.
• Matching Needs to Your Product’s Benefits: Once you understand your customers, align your product’s benefits with their needs. Make it crystal clear how your product can solve their problems and enhance their lives.
• Building Contextual Campaigns: Armed with insights into individual preferences, behaviours, and needs, create highly tailored marketing experiences. Craft messages, offers, and recommendations that resonate with each customer on a personal level.
• Continuous Iteration: Don’t rest on your laurels. Continuously analyse real-time data, including product usage habits, interaction history, and social interactions. These insights will reveal what your customers are seeking, enabling you to adapt and provide exactly what they need.
• Breaking Through the Clutter: In an information-saturated world, customers carefully choose which products to engage with. Therefore, timing and channel selection are paramount. Interact with your customers at the right time and through the right channels to cut through the noise effectively.
• Building Loyalty: When your communication reflects a deep understanding of your customers’ aspirations and challenges, they’re more likely to trust your brand and become loyal advocates. Loyalty isn’t just about repeat purchases or desired product actions; it’s about forging enduring connections.

The Art Of Personalisation

Personalisation is the linchpin of contextual engagement. It involves two crucial components:

• Segmentation and targeting: Use data analysis to segment your customers based on their preferences and behaviours. This enables you to create highly targeted campaigns that resonate with specific customer segments. The result? Higher response rates and improved ROI.
• Storytelling: Beyond transactional interactions, storytelling plays a critical role in building a deeper relationship with your customers. Share narratives that connect on an emotional level, painting a vivid picture of how your product can transform their lives. Stories create lasting impressions and solidify brand loyalty.

The Power Of Contextual Communication In Action

If you’ve reached this point, then let me tell you something. You’ve probably been hearing about personalisation all throughout your professional career, so what’s new? In the digitally cluttered world, its become far more important to set context for any communication. 

Sending the right message with the wrong context will never really help you achieve your communication objective.  Now let’s go back to where we started. 

Consider the example of the same coffeehouse chain you go to. Instead of sending generic promotions to all customers, they employ contextual engagement. A customer who consistently orders black coffee in the morning receives an offer for a free pastry with their next purchase. In contrast, a customer who prefers iced beverages in the afternoon gets a discount on their favourite drink. 

Building context with the customer and delivering an offer is a critical element of the entire process. How often do we engage with brands who keep sending a few dozen offers and most do not even align with your purchase behaviour? This not only boosts bottom-line metrics but also fosters a sense of belonging and appreciation with your customer.

In conclusion, unlocking the full potential of the customer lifecycle through contextual engagement is a journey towards building meaningful, lasting relationships with your customers. 

By understanding their unique needs and preferences, crafting tailored campaigns, and weaving captivating stories, you can maximise success and create brand advocates who will champion your product for years to come. 

In the ever-evolving landscape of marketing, contextual engagement is the compass that guides you towards the pinnacle of customer satisfaction and loyalty.

The post Maximising Success: Contextual Engagement To Drive Action Across The Customer Lifecycle appeared first on Inc42 Media.

In the blink of an eye, your ecommerce site’s credibility is determined by users, and those precious milliseconds can impact your bottom line. Fail to impress, and you might not only miss out on sales but also incur unnecessary acquisition costs. 

I once came across a small online shop that had some really interesting products. But when I tried to browse their site, it was really slow and the product information was very limited. I got frustrated and abandoned my cart.

This experience stuck with me, and it inspired me to find ways to help businesses like yours succeed in the ecommerce world. The strategies in this newsletter are designed to help you avoid losing potential customers.

Speed Matters

Your website’s loading speed is important. Every second longer it takes to load, you risk losing potential customers. Studies have shown that 25% of users will abandon a website if it takes more than 3 seconds to load. 

There is a D2C brand where we could improve 17% of transactions just by reducing the page load time by 50%.

Optimise Product Pages

Make your product pages engaging and informative. Customers should be able to find the product name, high-quality images, pricing, key details, and a clear call to action right away.

Mobile-First Approach

Did you know that 65.5% of online traffic comes from mobile devices? That means it’s more important than ever to make sure your website is optimised for mobile users. 

When people visit your website on their phones, they want to be able to find what they’re looking for quickly and easily. 

Make sure your most important information is visible on the first screen, and simplify the payment process so people can buy from you with just a few taps. Similarly, you can also focus on video-first approach to display content, products, ads and experiences.

User-Generated Content

Customer reviews can be a powerful tool for building trust and encouraging sales. When potential customers see that other people have had positive experiences with your product, they are more likely to buy it themselves.

Live Chat Engagement

Many customers prefer to chat with a live person when they have a question or need help. 

To enhance customer engagement, you can use live chat triggers to proactively reach out to customers, personalise your responses, and pre-write messages that are relevant to their needs. 

You can also provide self-service options, such as FAQs and knowledge articles, to help customers find answers to their questions on their own.

Cart Abandonment Recovery

Approximately 70% of users abandon their shopping carts. A company can recover up to 20% of abandoned carts with well-crafted email sequences. Here’s a recommended sequence to try:

Trigger: User enters email but abandons cart at checkout.

Email 1 (after 15 min, SMS 1 after 30 min): Urgent message to return to the cart.

Email 2 (after 1 to 2 hours, SMS 2 after 1 day): Remind product advantages + first promotion.

Email 3 (after 24 hours): FOMO + Last chance email with an “once in a lifetime offer”.

Congratulations on your D2C journey! 

Every moment counts, so make sure your website is fast, your products are presented well, and your customers are engaged. 

The post 6 Customer Engagement Hacks To Boost D2C Success appeared first on Inc42 Media.

My early online shopping experience taught me the importance of post-purchase communication. I once ordered a gift for my mother’s birthday, and the lack of communication left me feeling frustrated and unvalued. 

I vowed to change that, and committed myself to helping other customers avoid the same experience. Have also helped multiple brands improve their NPS to over 40 and also improved RTO to under 20% from 80%+ (for then early stage D2C brands).

Every year, thousands of new ecommerce sites are created. This increased competition drives up acquisition costs, making it more important than ever for brands to build strong relationships with their customers and maximise retention. Follow-up emails are a powerful tool for achieving this, with an average open rate of 70%.

In this article, I will show you how to create the perfect follow-up email in 7 steps.

Crafting a Personal Touch Just For You 

It’s important to make the post-purchase experience to be as unique as your consumer is. The follow-up emails are more than just automated messages; they’re a way to continue the personalised experience of the customer so carefully choose every element of the emails, from logo to brand colours to the cover image.

Close The Loop 

Set a process that makes sure that stakeholders are connected and transfer right information to each other. Have experienced a delivery partner marking a customer as “Not Available” while he was at home waiting for his delivery. Why delivery partner would do it? Because they earn 2X on returns.

Your Feedback Transforms Us 

Did you know that a single negative delivery experience can prevent 15% of customers from buying from you again? That’s why customer’s feedback is so important . It helps to improve the delivery process and show other customers the great experiences your brands community has had.

Your Order, Transparent And Clear 

It is important to make sure the customer has all the information they need about their order, so include all the details in every follow-up email. This includes the order number, product names, quantities, and estimated delivery date.

Stay In The Loop, Effortlessly 

Order tracking is important , so it gets easy to follow the order from the warehouse to customers ‘ doorstep. It is important to find the carrier name, tracking number, and a direct link to the tracking page in the order confirmation email and on the account page.

Elevating Your Next Experience 

Follow-up emails, with their stellar 70% open rate, are a little way of saying thank you, by offering consumers something extra for their next purchase – perhaps a discount coupon or a special referral link is  good way to do that.

Let’s Get Social

Ask people to connect with you on social media to stay informed about the latest news and updates, and to learn more about the company and the people behind it. Be excited to build a relationship with them that goes beyond just business.

Here For You, Always 

Whether it’s about making a return, having a question about FAQs, or needing to review the privacy policy, you should make it easy for the customer to find the information they need. That way, they can get back to enjoying their experience with you.

Customer feedback and experiences are essential to help you improve their ecommerce experience. You should create an experience that exceeds their expectations, and this can only be done by listening and understanding their needs. 

Here’s to more seamless shopping, transparent communication, and a relationship that goes beyond transactions.

The post Why Post-Purchase Communication Is Vital For Online Brand Success appeared first on Inc42 Media.

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in India’s economy, driving employment generation, GDP growth, and overall economic development. The government has encouraged startups in various sectors, but Indian MSMEs still face significant challenges, including the persistent ‘Delayed Payments’ issue. 

This problem has been a longstanding concern, with approximately INR 10.7 Lakh Cr locked up in delayed payments from buyers to MSME suppliers, exacerbating the need for working capital. Around 27% of MSMEs receive more than half of their payments from buyers after three months, while 31% receive 30% to 50% of payments after 90 days. 

To achieve its ambitious economic goal of becoming a ten-trillion-dollar economy, India must ensure the reliability and trustworthiness of its economic actors by providing timely payments to MSMEs from buyers.  

Payment Defaults May Affect Supplier-Buyer Relationship

In a supplier-buyer relationship, invoice approval delays or rejections can occur for various reasons, such as defective goods or pricing discrepancies. Suppliers need timely information on the reason for the invoice rejection to correct any errors and resubmit it if necessary. 

However, suppliers often need to be more timely informed about the rejection, leading to delayed payments and unpredictable cash flow. Unclear reasons for refusal can cause frustration and wasted effort for suppliers trying to rectify the issue. 

Improved communication and transparency between buyers and suppliers are essential to ensure smoother invoice processing and timely payments.

Moreover, cash flow is king for small MSME suppliers, enabling them to fulfil their obligations and operate smoothly. However, receiving late payments from buyers, irrespective of the reason, can create significant challenges. 

It can disrupt their ability to restock inventory, hinder growth opportunities, and make it difficult to repay debts. These circumstances adversely impact their operational health and overall business stability.

Late Payments To Impact MSMEs Credit Score

Predictable receivables cycles can assist in the loan repayment obligation of the supplier, delays in loan repayment severely decline small businesses CIBIL score, giving them a “not-so-good” reputation for their payment behaviour. With an affected reputation, potential opportunities and prospects could steer away from the alliance.

The credit score, also called the CIBIL score, evaluates the creditworthiness of MSMEs based on their credit information report and provides a numerical score used by lenders to assess their financial standing. 

The credit information report (CIR) recaps the payment history of loans borrowed from various financial institutions and generates a credit history based on which the score value is calculated.

Additionally, the Ministry is actively implementing the Performance & Credit Rating Scheme to provide MSMEs with a trustworthy third-party assessment. This initiative aims to raise awareness among MSMEs regarding their operational strengths and weaknesses, enabling them to enhance their organisational capabilities and creditworthiness. 

By improving their credit profile, MSMEs can access credit at more favourable terms and lower interest rates. The National Small Industries Corporation (NSIC) has been appointed as the nodal agency to carry out the scheme on behalf of the government. 

The rating process is conducted through established rating agencies like CRISIL, CARE, ONICRA, SMERA, ICRA, and Brickwork India Ratings. 

By addressing late payments and their impact on credit scores, regulatory entities such as NBFCs and government bodies have formed an ecosystem to recover debts from retailers who are defaulting on their payments.

Regulatory Entities Take On Debt Recovery

Regulatory entities, including factoring NBFCs, possess the authority to report credit information to credit bureaus like CIBIL when small entities delay payments to MSME suppliers. 

Being reported as a defaulter can have significant repercussions on the entity’s creditworthiness, leading to potential difficulties in accessing credit from banks and other financial institutions, which can be highly discouraging for these small businesses.

 To illustrate, let’s consider ‘XYZ’ Company is a supplier that distributes its products to 10,000 retailers. Unfortunately, some retailers have consistently defaulted on their payments to XYZ Company. 

In this situation, factoring NBFCs may have the option to report these defaulting retailers to credit bureaus without individually onboarding each retailer. Instead, they can consolidate the information about these defaulters under a single document, associating it with ‘XYZ’ Company’s credit profile.

On the other hand, the Indian government has implemented the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) to assist MSMEs in recovering payment dues from private companies, PSUs, and individual company owners. 

This Act offers several measures to take action against buyers who fail to make payments within 45 days. According to Section 16 of the MSME Act, the Supplier is entitled to pay interest three times the bank rate notified by RBI in case of delayed payment. 

This legislative framework aims to provide MSMEs with a means to prompt and secure payment recoveries, bolstering their financial stability and growth prospects.

To Encapsulate

Account receivables constitute a significant proportion of the working capital. Hence, enterprises require a robust collection process that determines and manages the optimum level of credit and enforces formal credit obligations.

Delayed payments pose a significant challenge for most business entities, with only a few companies ensuring timely payments to vendors creating financial problems for MSMEs. In some cases, unpaid dues become legally claimable, requiring businesses to seek recovery through lengthy and costly litigation procedures. 

As a result, many entities turn to lawyers for assistance in the recovery process, further complicating the situation. India’s legal procedures for recovering money can be challenging and costly, making timely payment a critical aspect for the smooth functioning of businesses. 

However, regulated entities can help MSMEs to overcome these challenges by implementing an effective collection process. That includes: determining and managing the optimum level of credit, which helps strike a balance between providing credit to loyal and reliable customers 

However, if corporations can create a Realtime seamless information flow of Invoice confirmation within their respective ecosystem, this shall have a tsunami effect of availability of credit to the supplier from Bank & Factoring NBFCs while minimising the risk of delayed payments and enforcing formal credit obligations that outline payment terms, due dates, and consequences for late payments. By formalising credit obligations, suppliers can hold retailers accountable for timely payments. 

The post How Are Regulated Entities Addressing The Pressing Issue Of MSME Debt Collections appeared first on Inc42 Media.

Crafting a solid introduction is undeniably important for startups seeking success. However, in the ever-evolving business landscape, reaching the $5 Mn milestone is just the beginning. 

To achieve long-term success and surpass this benchmark, startups must have a well-defined plan for continuous expansion. It requires an aggressive and comprehensive approach that goes beyond initial growth strategies. 

Particularly in the context of the predicted software-as-a-service (SaaS) market growth by 2030, startups must be prepared to seize opportunities and outpace the competition. There are some necessary elements that can propel a SaaS startup beyond $5 Mn and pave the way for sustained success in the dynamic marketplace. 

By understanding the importance of continuous expansion and taking a proactive stance, startups can position themselves for future growth and thrive in the predicted SaaS market landscape.

Focusing On Growth-Oriented Leading Indicators

Focusing on growth-oriented leading indicators is crucial for startups to achieve sustainable expansion. By shifting the emphasis from lagging metrics to proactive measurements, businesses can identify opportunities, make data-driven decisions, and stay ahead of the competition. 

This involves analysing predictive analytics and forward-looking insights to capitalise on emerging trends and drive continuous growth.

Bookings To MRR (Monthly Recurring Revenue)

Also known as Monthly Recurring Revenue (MRR), this factor is vital for sustained growth. Startups should not solely focus on the number of bookings but also delve deeper into analysing trends over time and the factors that influence them. 

By optimising sales strategies, nurturing customer relationships, and maximizing revenue streams, businesses can achieve consistent and predictable MRR, fuelling their expansion efforts.

Bookings To Invoicing

Understanding the relationship between bookings and invoicing is critical for managing a startup’s financial health and forecasting future growth. Startups must closely examine these metrics to identify bottlenecks or inefficiencies in their sales processes. 

By streamlining operations, improving invoicing cycles, and ensuring timely payments, businesses can establish a healthy financial ecosystem that supports sustained expansion.

Invoicing To Cash

Effective cash flow management is essential for a startup’s survival and growth. Startups should closely monitor the gap between invoicing and actual cash collections, understanding the dynamics of revenue generation. 

By prioritising timely payments, optimising receivables management, and refining working capital strategies, businesses can maintain a healthy cash flow position, fuel growth initiatives, and seize new opportunities as they arise.

Pipeline Per $ By Channel

Strategic allocation of marketing resources is crucial for startups aiming to scale. Analysing the pipeline per dollar by channel helps identify the most effective channels for generating leads, conversions, and revenue. 

Continuous monitoring and analysis enable businesses to optimise their marketing strategies, make informed decisions, and achieve maximum returns on their marketing investments.

Win Rates By Geo, Use Case, Lead Source

Analysing win rates by geography, use case, and lead source provides valuable insights into sales performance. Startups can identify regions or customer segments that yield higher success rates and tailor their strategies accordingly. 

Prioritising real-time reporting and journey orchestration can enhance customer retention rates and unlock expansion opportunities within existing customer bases.

In Conclusion

To ensure long-term success and capitalise on the predicted growth of the SaaS market, startups must adopt an aggressive and comprehensive approach to continuous expansion. 

By focusing on growth-oriented leading indicators, startups can make informed decisions, optimise operations, and drive sustainable growth. Crafting a solid introduction may open the door, but it is the strategic execution of expansion plans that paves the path to success. 

By embracing these elements and fostering a culture of adaptability and innovation, startups can position themselves to not only surpass the $5 Mn milestone but also thrive in the competitive SaaS landscape.

The post Scaling From $1 Mn To $5 Mn And Upwards: What More Should You Be Doing? appeared first on Inc42 Media.

The telecom sector in India, the second largest in the world, is undergoing a remarkable transformation. As of July 2023, the country registered a subscriber base of 1.17 Bn, with a staggering 881.26 Mn internet subscribers, as per DoT. 

On the flip side, a significant challenge casts a shadow over the industry: 90% of India’s telecom equipment demand is met through imports. 

In this context, the emergence of indigenous telecom startups becomes pivotal to address this dependency, while also fostering innovation and economic growth.

Hardware Startup Challenges In India

There is a striking disparity between software and hardware startups in India. A whopping 95% of tech startups in India are software-related and less than 5% specialise in deeptech. 

Hardware startups face multifaceted challenges, creating significant hurdles for their growth:

Extended Gestation Period And Funding Scarcity

Hardware startups, by nature, demand extensive research and development, leading to prolonged gestation periods. This protracted timeline poses financial challenges for both founders and investors, necessitating sustained funding over several years. As a result, they struggle to secure investments. Venture capitalists often prefer quicker returns, making it challenging for hardware ventures to fetch consistent financial backing.

Talent Acquisition And Skill Gap

Acquiring skilled talent is an enduring challenge. The limited pool of research talent is predominantly absorbed by multinational companies, leaving startups struggling to find resources with the necessary expertise for deep tech innovation.  

Higher salary packages offered by big companies makes it even harder for start-ups to fulfil their requirement for skilled employees.

High Testing Costs And Infrastructure Limitations

The testing process for telecom hardware start-ups comes with significant expenses, and there is a scarcity of testing infrastructure as well. 

As a result, startups face substantial financial challenges when trying to test and certify their products. Limited access to proper testing facilities further complicates the situation, hindering their progress and the growth of the industry.

Limited Domestic Supply Chains

The absence of a robust domestic supply chain hampers the hardware start-up ecosystem. Most component types, even those assembled in India, are sourced from international markets, highlighting a crucial supply chain gap that impedes the growth of indigenous hardware production.

Despite these challenges, the tide is turning for Indian telecom startups. The advent of 5G presents novel opportunities, inspiring them to explore areas like open RAN, Smart City solutions, AI and Edge technologies. 

Major players in the telecom sector are actively engaging with startups, fostering collaborations and partnerships. This newfound synergy, coupled with government initiatives, is paving the way for a thriving telecom start-up ecosystem.

Government Initiatives: Nurturing Innovation

The Indian government has embarked on initiatives to bolster the telecom startup ecosystem. Recognising the dearth of testing infrastructure, the Department of Telecommunications (DoT) has opened government-owned labs for start-ups to conduct tests. 

Further, the government has offered free access to 5G test beds for government-owned startups, aiming to boost innovation and experimentation. To back the startups with financial support, DoT approved a grant of INR 50 Cr to 43 startups and MSMEs for indigenous 5G equipment development through the Digital Communication Innovation Square initiative.

These add to the Startup India initiative launched in 2016, which aims to fortify the ecosystem for startups and innovation in India, contributing to substantial economic growth and employment opportunities. 

Since its inception, 92,683 entities have been recognised as startups by the Department for Promotion of Industry and Internal Trade (DPIIT) as of February 28, 2023, facilitating tax exemptions and easier funding accessibility. 

The initiative connects Indian startups to global ecosystems, provides government funding through a Fund of Funds with a corpus of INR 10,000 crore and offers mentorship along with incubation support. 

The recently released draft National Deep Tech Start-up Policy (NDTSP) serves as a comprehensive roadmap to overcome the challenges faced by deep tech start-ups in India. 

The policy aims to nurture the research, development and innovation ecosystem by increasing gross expenditure on R&D, amending research assessment practices and creating partnerships for technology commercialisation.

Additionally, the policy emphasises strengthening India’s Intellectual Property Rights (IPR) regime by establishing a Single Window Platform for Unified IP Framework and enhancing global IP conventions. Targeted long-term funding is facilitated through thematically-focused Fund of Funds (FoF) and Technology Impact Bonds. 

To address infrastructure challenges, the policy proposes infrastructure and resource sharing, promoting the use of existing infrastructure and establishing standardized field test sites. 

By developing favourable regulations, standards and certifications through multi-stakeholder consultations and regulatory sandboxes, the industry can acquire the required momentum. Capacity building initiatives include skill enhancement grants, specialized courses, mentorship programs and international collaborations.

The policy also promotes procurement and adoption of deep tech products through quality-focused procurement, collaborative research models and subcontracting by large firms. 

It enhances policy and program inter linkage by creating an Inter-Ministerial Deep Tech Committee, integrating deep tech startups into international trade agreements, and addressing import dependencies and supply chain vulnerabilities. 

Additionally, the policy proposes funding mechanisms embracing the “failing by design” principle and a central core mission office to simplify procedures and enable IP protection.  

Lessons From Global Markets

Around the world, major economies are strategically harnessing the potential of deep tech innovations and science-based startups to enhance their socio-economic competitiveness. 

Initiatives like UK Catapult, Belgium’s WSL, Germany’s EXIST Program and Canada’s Innovation Superclusters Initiative emphasise collaboration, sector-specific focus, comprehensive support, funding access, internationalisation support and entrepreneurship education. 

India aims to cultivate a thriving deeptech ecosystem inspired by these examples. 

Future Outlook

Looking ahead, the trajectory of India’s telecom industry appears promising. Projections by Deloitte India and CII suggest that by the end of 2023, the Indian telecom sector will reach USD 12.5 billion. 

Technological advancements, coupled with the 5G rollout, industry collaborations and government support, are set to propel the telecom startup ecosystem further, ushering in an era of innovation and self-sufficiency in India’s telecom equipment production.

The post Navigating Telecom Manufacturing Landscape In India: Turning Challenges into Opportunities appeared first on Inc42 Media.

Originating in the Renaissance era but relevant to this day, family offices have been integral to extending the life cycle of a family’s wealth and immortalizing its legacy. 

With a surge in the billionaire population globally, the role of family offices is becoming increasingly evident. 

How do family offices navigate the complex decision-making involved in preserving such a massive wealth? Here are six key decision-making frameworks that they use –

Clear Objectives

At the center of the investment philosophy sits the all-seeing, all-governing Investment Policy Statement (IPS). The IPS guides the investment decision process for the family and by establishing suitable boundaries, prevents significant deviations, limits ad-hoc investment decisions and sets the guidelines for asset allocation and performance evaluation. 

A family can have multiple IPS for different pools of capital. For example, there may be one IPS for the larger family investment portfolio managed by the family principals, and different IPS for individual family members based on their risk appetite, return expectations, and liquidity requirements.  

Driven By Purpose

Most evolved family offices define the purpose of their investments as it helps to highlight the family’s multi-generational story. Family offices can drive significant societal change through their choice of investments. 

The family office of the Nintendo Family in Japan, Yamauchi No. 10, ‘We are determined to create a society that encourages people to nurture their unique creativity’. Several purpose-driven family offices have aligned their investment philosophy with their family values. 

Some avoid sin industries while others may want to make up for the fossil fuel emissions of their previous generations through impact investments in renewable energy. What is clear is that you can’t build a legacy without having a purpose. 

Risk Pool Management

Risk pool management introduces the concept of creating investment portfolios across three risk buckets: Personal, Market, and Aspirational Risk Pools. Personal risk ensures that the family’s basic standard of living is not jeopardized. 

Market risk strategies aim to maintain the family’s lifestyle and preserve purchasing power, while Aspirational risk considers investments that have the potential to exponentially enhance a family’s wealth. 

In most cases, Family Offices allocate capital to fixed-income instruments to manage the personal risk pool. They use a combination of equities, fixed income, ReITs, InvITs, and diversified instruments to manage the Market Risk Pool. 

The Aspirational Pool comprises largely illiquid investments primarily in private markets, through direct investments in companies and/or Private Equity and Venture Capital funds.

Asset Allocation

Asset allocation is the holy grail for all complex decision-making done by family offices. It brings discipline and consistency. A strategy to invest across uncorrelated investments helps to balance risk and returns, whilst managing volatility, potentially enhancing returns, and protecting the portfolio from market downturns. 

This plan is at two levels – a strategic asset allocation, which is reviewed annually, and a tactical underweight / overweight asset allocation to capture market dislocations, risks, and opportunities.  

Each asset class / sub-asset class tends to perform differently every year, hence the need to diversify across asset classes. For example, Gold gave -0.2% returns in FY21, but was the best-performing asset class in FY23, giving an overall 13% return. Asset allocation acts as a shield to an investor’s impulse. 

Fund Manager Selection

Once the asset allocation has been finalised, Family Offices must then engage with multiple fund managers for the investment. Portfolio outcomes tend to improve through fund allocations as compared to direct investments, despite the higher cost of investment (i.e., fund management fees) associated with allocating to fund managers. 

To evaluate managers, family offices use both quantitative and qualitative metrics. While there is much more publicly available information for listed investments, for unlisted investments, the stability of the team, a proven exit track record, access to deal flow and an exit strategy become key. 

The family office eco-system of single and multiple family offices often interacts with each other to exchange ideas on fund manager selection ensuring a meritocratic approach.

Cost Of Investment

The total cost of wealth management is the sum of investment costs such as advisory fees, brokerage and transaction costs, fund management fees, and performance fees; and non-investment costs such as tax and estate planning, accounting, etc.  

The two key factors that can significantly increase costs in wealth management are wealth structuring strategies and alternative investment strategies, which often involve significant management fees paid to Private Equity and Venture Capital funds. 

An understanding of the complexity of the required services and economies of scale at play is crucial when assessing wealth management costs, and the careful management of costs can significantly enhance net returns.

In Conclusion

When viewed in isolation, each of these frameworks provides an insightful approach to a specific facet of decision-making within a family office. However, their true strength emerges from their integrated functioning. 

Together, they create a dynamic, robust decision-making framework for family offices. This integrated approach equips family offices with the strategic acumen required to navigate black swan events as well as regular market volatility.

The post Fortifying Legacies: The Six Decision-Making Frameworks Used By Family Offices appeared first on Inc42 Media.

A friend of mine and an owner of an early stage D2C brand based in Mumbai, was overwhelmed by the sea of digital marketing. Her emails were constantly overlooked, and she felt frustrated. Usually we miss out on some obvious stuff. Sometimes we don’t use some marketing channels just because we just “feel” they don’t work. 

One day, my friend received a “timely” SMS from a local pizzeria about a special offer. The message was direct and to the point, and it caught her attention. She realised that SMS marketing could be a powerful tool by which you can reach your customers where they are and grow your business.

Welcome to a world where your messages are noticed and valued – if your timing is perfect. You can still gain 3-5% of your overall revenues through this channel. 

SMS marketing is a great way to reach your customers directly and quickly. With an open rate of over 90%, SMS can be much more effective over emails, where messages can easily get lost in the inbox.

Imagine being able to send a personalised message to your customers within minutes of them making a purchase, or offering them exclusive deals and discounts. With SMS, you can do just that.

Here are a few tips to help you get the most out of your SMS marketing, so your messages are not only heard, but they stick with your customers.

Engage Your Email Subscribers Differently

Your email subscribers are already loyal customers. Take your relationship to the next level by offering exclusive SMS perks and deals. Once they opt in, make sure to deliver valuable content and updates consistently. This will show them that you appreciate their trust and that you’re committed to providing them with the best possible experience.

Revive Abandoned Carts With A Personal Touch

Many shoppers abandon their carts, but your SMS can be the reminder that helps them come back. Instead of generic messages, send personalised messages that reflect their interests and choices. A special offer or a message about the items they left behind can make all the difference.

Craft Messages That Resonate

Your SMS messaging should be as unique and ever-changing as your customers. Whether you’re sending welcome messages to new subscribers or order status updates to existing customers, each text should feel like it’s written just for them.

A/B Test With A Twist

A/B testing is not just about changing elements but understanding your audience’s preferences. It’s about learning what language, offers, and timing resonate most with them and refining your strategy accordingly.

Simplify Purchasing To A Single Text

OneText makes it easy for customers to confirm purchases with a simple ‘YES’ text message. This streamlines transactions and enhances the customer experience.

In a world where we’re constantly bombarded with notifications, your message needs to stand out. SMS marketing can be a powerful tool for capturing attention, driving conversions, and building relationships with your customers.

Let’s start our journey to building meaningful connections. Every message you send is a step towards creating a community that’s excited to hear from you.

To a future where our voices are heard, and our messages make a difference.

The post Why SMS Marketing Can Be A Powerful Tool For A D2C Brand? appeared first on Inc42 Media.

Our dependency on internet services has increased dramatically as the digital era has progressed and technology has become more integrated into our daily lives. From financial transactions to accessing sensitive personal information, the digital domain provides unprecedented convenience and efficiency. 

Nonetheless, this digital transformation has spawned a significant challenge: the growing risk of deception. To address this critical issue, it is imperative for India to re-evaluate its reliance on one-time passwords (OTPs) and transition to a more secure and user-friendly authentication system.

The Digital Revolution In India

There has been a significant shift towards digital culture in India in recent years. The pervasive adoption of digital payment systems, especially the Unified Payments Interface (UPI), has fueled the nation’s economic expansion. 

Experts predict that by 2026, the total value of digital payments in India will reach a staggering $10 Tn. This digital transformation has unquestionably brought numerous benefits, but it has also opened the door to new challenges, most notably an alarming increase in fraud enabled by obsolete technologies such as one-time passwords (OTPs).

Understanding OTPs

OTPs, or one-time passwords, have become an integral element of the online experience in India. Typically, these temporary, randomly generated codes are sent to users via Short Message Service (SMS) to verify their identity during various online activities, including logging into bank accounts, undertaking secure transactions, and accessing sensitive data. 

OTPs are considered a type of two-factor authentication (2FA) and have been extensively adopted in a variety of industries, including banking, social media, peer-to-peer payment platforms, healthcare portals, and ecommerce websites.

Limitations Of OTPs

While OTPs have played a crucial role in bolstering security, they come with their own set of limitations and vulnerabilities that pose a significant risk:

• Account Takeover Fraud: OTPs, especially those delivered via SMS, are susceptible to interception through SIM swap fraud. Cybercriminals can exploit this vulnerability to gain unauthorised access to users’ accounts, even if they possess the correct password. This method effectively turns a security measure into a tool for fraudsters.
• User Experience Challenges: OTPs often introduce friction into the user experience. Waiting for OTPs to arrive, manually entering codes, and dealing with unreliable SMS deliveries can lead to a frustrating and time-consuming login process, discouraging users from engaging with online services.
• Security Risks: Despite their intended purpose, OTPs do not provide foolproof security. They can be susceptible to phishing attacks, where users are tricked into revealing their OTPs. Additionally, OTPs can be reused or intercepted by malicious actors, compromising the authentication process.

The Case For Going Passwordless

Given the inherent vulnerabilities and user experience challenges associated with OTPs, it is imperative to explore more advanced and secure authentication alternatives. Many leading companies have already recognised the need for a passwordless future, and here’s why:

• Enhanced Security: Passwordless authentication methods offer a higher level of security compared to OTPs. Deterministic authentication through a mobile device, for example, requires the user to have physical possession of their mobile device, making it significantly harder for fraudsters to gain unauthorised access.
• Improved User Experience: Passwordless authentication simplifies the login process, eliminating the need for users to remember complex passwords or deal with OTPs. This streamlined approach enhances user convenience and encourages greater engagement with online services.
• Cost-Effective: Businesses often incur expenses related to password resets and OTP support services. Passwordless authentication reduces the reliance on these costly processes, saving both time and resources.
• Versatility: Passwordless authentication methods can be seamlessly integrated across various channels, including mobile, desktop, and call centers. This versatility ensures a consistent and secure authentication experience, regardless of the user’s chosen platform.
• Fraud Prevention: By eliminating the vulnerabilities associated with OTPs, passwordless authentication makes fraud a less scalable and costly endeavor for cybercriminals. This added layer of security protects both businesses and users from account takeover and unauthorised access.

Incorporating Advanced Authentication

In the evolving realm of passwordless authentication, cutting-edge solutions are reshaping the way we verify identity. Biometrics, such as fingerprint and facial recognition, offer a secure and convenient means of authentication. 

Magic Links, featuring single-use verification tokens, simplify the login process by eliminating the need for passwords altogether. Hardware keys, like USB devices, provide an extra layer of security for user authentication. 

Additionally, QR code verification offers a seamless and secure alternative to password-based logins. These advancements are underpinned by sophisticated technology that restructures sensitive data and decentralises access through techniques like tokenization and encryption, enhancing both security and user experience.

The Way Forward

India must reassess its dependence on vulnerable OTPs and embrace passwordless authentication. The rapidly evolving digital landscape necessitates adaptive security measures. 

Passwordless authentication offers a secure, user-friendly, and cost-effective solution, enhancing online safety and user experience. It’s time for India to join the global shift towards combating fraud effectively with this innovative approach, empowering users in the digital age.

The post Is It Time To Reduce Reliance On Vulnerable OTPs And Go Passwordless? appeared first on Inc42 Media.