Startup leaders choose to go to office first before asking others to come

To instill confidence among workforces about health safety, team leaders and managers of India’s top startups including Flipkart, Paytm, Udaan and Zomato, have decided to go at work first before asking colleagues to come. many firms still have asked their employees to continue work from home for those functions which may not need at-work presence.

To instill confidence among workforces about health safety, team leaders and managers of India’s top startups including Flipkart, Paytm, Udaan and Zomato, have decided to go at work first before asking colleagues to come.

Despite the government’s recommendation to resume operations, many firms still have asked their employees to continue work from home for those functions which may not need at-work presence.

Paytm is Noida based firm and has recommenced with only 25% workforce whereas guidelines permit 33%. Its spokesperson said, “…depending on where the offices are situated wherever possible our senior leadership has taken the decision of coming to the office first, to instil confidence in our workforce that all necessary steps are being taken to safeguard employees.”

E-commerce giants like Flipkart, Udaan and Zomato have applied such similar approaches for their employees.

Udaan is headquartered in Bengaluru and it is basically a B2B e-commerce firm. Its co-founder, Sujeet Kumar said, “We encourage employees to apply their own judgement on when and how they would like to return to the office…A significant number of employees resumed work over the last couple of weeks.”

There are several concerns for employees about returning to work like

• Travel restrictions.
• Fear to risk the health of their family especially in cases of aged parents and young children.
• Some of them have moved to their hometown and are unable to come back.

An employee of Delhi-based on retailer said, “The fear is not just about the workplace but also getting to work, and other factors at play.” However, firms are understanding these concerns.

For instance, Udaan and joined hand with Zoomcar and Bounce to sanitized vehicles for employees who do not own personal transport. Ola too have addressed the employees about safety measures like sanitising workspaces six times a day, safety teams for every site and demarcated seating to enable social distancing.

The Chief Human Resource Officer of Ola, Rohit Munjal, has asked all the leaders and managers to call their team members to the office only if it is absolutely needed. He said, “Unless your work requires you to be at the workplace by the nature of it, you will continue to work from home until the end of June.”

In fact, Snapdeal has extended its work from home advisory till 14th June and hope for a smaller number of employees back in the office after 14th June. Its spokesperson said that the first phase would include those volunteering to return to the office and those who need to be in office for specific work requirements.

Chief HR officers of these firms have indicated that businesses would move closer to regular operations especially in Delhi and Bangalore at the beginning of the month July while exceptions have been made for the month of June.

HR executive of an e-commerce firm based in Bengaluru said, “As businesses open up next month onwards, stricter protocols will be in place. There will also be enough data and learnings from the last three months to come to the best conclusion.”

Other firms like Swiggy, Amazon, Facebook have extended work from home for all their employees for at least the month of June.

Paytm Money raises fund from One97

Online mutual funds platform Paytm Money has raised Rs 28.87 crore from parent One97 Communications Pvt Ltd, in exchange for 2.8 crore equity shares of Rs 10 each.

Online mutual funds platform Paytm Money has raised Rs 28.87 crore from parent One97 Communications Pvt Ltd, in exchange for 2.8 crore equity shares of Rs 10 each.

This round could be part of the overall $10 million which One97 Communication had committed to invest in the mutual funds platform in a span of 18 months.

Paytm Money which is based out of Bengaluru is a wholly owned subsidiary of One97 Communications which runs the country’s largest digital payments company Paytm. The platform allows consumers to invest into mutual funds through the ‘direct route’ thereby promising higher returns to investors.



Paytm Money also integrated with Paytm Payments Bank, last month to open wealth management options for bank customers. Through this partnership, Paytm Payments Bank users were able to make their account as the primary bank account on Paytm Money, for investment and redemption of mutual fund investments.

It has raised close to Rs 55 crore between November last year and January 2019. Which means that its parent entity has fulfilled its initial commitment into the subsidiary.

It competes with the likes of Zerodha, ET Money, which is run by Times Internet Limited, a part of the Times group which also publishes this paper, and a couple of early startups like Sequoia India-backed Groww among others.





Paytm Founder Vijay Shekhar Sharma became youngest Indian billionaire

Vijay Shekhar Sharma, ranked 1,394th on the list with a fortune of $1.7 billion, is the only Indian billionaire in the under-40 league.

Paytm founder Vijay Shekhar Sharma, 39, is the youngest Indian billionaire, while 92-year-old Samprada Singh, chairman emeritus of Alkem Laboratories, is the oldest, according to Forbes.

Sharma, ranked 1,394th on the list with a fortune of $1.7 billion, is the only Indian billionaire in the under-40 league.

Sharma founded fast-rising mobile wallet Paytm in 2011. He has also created Paytm Mall, an e-commerce business business and Paytm Payments Bank.

“One of the biggest beneficiaries of India’s demonetisation, Paytm has notched up 250 million registered users and 7 million transactions daily. Sharma owns 16 per cent of Paytm, which is now valued at $9.4 billion,” Forbes said.

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Of the 2,208 billionaires in Forbes’ 2018 list of the world’s richest, just 63 are under the age of 40 and more than half (34) are self-made entrepreneurs.

In all, the 63 youngest billionaires in the world are worth a collective $265 billion, up from $208 billion last year.

Meanwhile, 92-year-old Samprada Singh, who is the chairman emeritus of Alkem Laboratories, is the oldest Indian billionaire. He was ranked 1,867th on the list with a fortune of $1.2 billion.

Related Post: Success story of Sachin Bansal: The entrepreneur who almost shut down Flipkart

Singh founded the pharma firm Alkem Laboratories 45 years ago. Singh worked in a chemist’s store before venturing out on his own distributing pharmaceuticals.

“Shares of the generics maker, known for its antibiotics Clavam and Taxim, have more than doubled since its November 2016 IPO. For the year ended March 2017, Alkem reported a 20 per cent rise in net earnings to $139 million on revenues of $913 million,” Forbes said.

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Reliance Jio and Paytm from India join Fast Company’s world ‘50 most innovative companies list’

Reliance Jio has been given 17th rank, while Vijay Shekhar Sharma led Paytm has got the 31st position in the table.

Amid tussle between the leading telecom service providers in India, Mukesh Ambani – controlled Reliance Jio sneaks into Fast Company’s World’s 50 Most Innovative Companies for 2018.

American business magazine who released its annual report has given 17th rank to one of the cheapest cellular networks in its seventeen months of commercial launch in India.

The Fast Company’s latest edition of the World’s Most Innovative Companies spans more than 350 enterprises across 36 categories. iPhone maker Apple has topped the list followed by global online streaming giant Netflix and San Fransisco-based payments company Square.

Chinese Internet giant Tencent and US-based e-commerce major Amazon stands at number four and five respectively. The ranking also includes The Washington Post and Spotify who are in the top 10 list, while Instagram, SpaceX, and Walmart have managed to keep themselves in top 15 most innovative companies.

India and China contribution to Fast Company’s 2018 edition

Apart from Reliance Jio, the Vijay Shekhar Sharma led Paytm is the only player included as an Indian entity in the list. The Alibaba-backed payment-cum-e-commerce firm has got the 31st position in the table.

The magazine firm also released the top 10 Indian firms in Most Innovative Company’s country wise list. Reliance Jio has topped the chart followed by Paytm. Mobile advertising and discovery platform InMobi who acquired Los Angeles-based startup AerServ for a whopping $90 million got 3rd place in the list.

Interestingly agritech startup EM3 AgriServices stayed ahead of Oyo Rooms, who got 10th position on the chart. However, only two of the top 10 Indian firms on the Fast Company’s list made it to the top 50 table at world level.

Besides, Indian American venture capitalist Chamath Palihapitiya, founder of Palo Alto-based VC firm Social Capital and former executive of Facebook, has also been selected and ranked 19th in the Fast Companies list. Social capital recently invested in SaaS-based startup WebEngage.

Fast Company, which holds a majority of players from the US in its list, Tencent, Bytedance-parent company of news app Toutiao, VIPKid, drone startup DJI are four players from China who made to the list of 50 companies selected by the American business magazine.

While Shenzhen-based DJI being the only drone startup in the Fast Company’s 2018 edition, Beijing-headquartered VIPKid and US-based Duolingo are the two startups who got the entry from ed-tech category.



How Reliance Jio made it to the table

Since its inception, Jio, the VoLTE-only operator in the country with coverage across all 22 telecom circles in India has been on the expansion spree. After acquiring the wireless assets of Reliance Communications (RCOM) and its affiliates, the firm has been investing in all possible area.

Recently, it left behind countries leading mobile selling brand Samsung to become number one feature phone brand.

The firm is eyeing a huge opportunity in the field of artificial intelligence, machine learning, internet of things (IoT) and blockchain technology. The company is also planning to launch its own cryptocurrency JioCoin the future.

After giving a tough competition to the incumbents such as Airtel, Idea, Vodafone, the firm is planning to go public by the end of 2018.

Within 15 months of its launch, Reliance Jio turned profitable and posted a net profit of Rs 504 crore for the fiscal third quarter.

Jio success can be imagined with a report based on consensus Street estimates via Mint, which says that Jio took only 16 months to reach a revenue of Rs 6,879 crore for the December quarter, whereas Idea Cellular took 17 years to achieve the figure.





Paytm suspended app POS feature on customer data and privacy concern

Paytm, which is a popular mobile wallet company has recently faced some problem regarding customer data and privacy.

Paytm, which is a popular mobile wallet company has recently faced some problem regarding customer data and privacy. After demonetization, Paytm had caught on in a big way with the country’s population as everyone started using this app to make and receive payments as it was convenient and accepted almost everywhere.

PoS was a feature designed to get rid of the card machine and allowed people to make and receive money through the Paytm app installed in their smart phones. However, after the launch of this feature, there were raging concerns regarding the privacy of consumer data and the customer’s card details were required to facilitate transactions.

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This feature was introduced after the demonetization as it was estimated that most people will want to go cashless and start using mobile wallets for transactions. Paytm was also expecting to receive over 15 million downloads by the end of November.

“Based on some suggestions from the industry, we have decided to add additional certifications and features before making it available to merchants. We will re-launch this product as soon as we have updated the product. Nothing is more important to us than customer data and privacy. We will always put this above all without fail.” -Paytm claimed in a blog

According to information from NPCI (the National Payments Corporation of India), over 600 customers from 19 banks have been deceived of more than a crore by using only stolen debit card data.

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However, Paytm claimed that it doesn’t store any card details in the app. At the time of the launch, the Paytm founder, Vijay Shekhar Sharma, had also said that the company is a PCI DSS (Payment Cards Industry Data Security Standard) certified company.

However, they’ve scrapped the feature now for consumer data security.



Why Big Bazaar tied up with Paytm

With the latest partnership announced with mobile payments and commerce platform Paytm, Kishore Biyani is making an effort to go online without taking on the risks and huge costs associated with the e-tail business.

Kishore Biyani has been extremely critical of the business model followed by e-commerce companies in the past. The founder and group CEO of one of India’s largest organised retailer Future Group, however, cannot close his eyes to the potential of e-commerce and the ever-growing base of customers shopping online.

With the latest partnership announced with mobile payments and commerce platform Paytm, Biyani is making an effort to go online without taking on the risks and huge costs associated with the e-tail business.

Under the deal announced by the two partners on 4 August, customers will be able to shop for Future Group’s hypermarket chain Big Bazar’s merchandise on Paytm’s marketplace and also, get them delivered to their homes.
Explaining the rationale behind his tie-up with Paytm, Biyani said: “The cost of customer acquisition in the e-commerce space is more than 20%, the cost of fulfilment is more than 20% and the cost of running operations is 8-10%. This totals to almost 50% as the cost of operation. At this cost, you can’t sell any goods on this medium.”

Biyani, indeed, isn’t speaking through is hat. Almost all e-commerce companies, including the market leaders such as Flipkart or Snapdeal and even global companies such as Amazon, have been running massive losses in their operation with no signs of profit in sight yet.

Related Post: How Vijay Shekhar Sharma started – Life of Paytm’s founder

Since, market pundits have been predicting that at some point, online retail transaction will become big enough to command a viable business model with a huge potential for growth, Biyani did make a few attempts at hopping on to the e-commerce bandwagon in the past.

In 2014, for instance, the Future Group had tied up with Amazon India to sell its merchandise, primarily private fashion labels. The same year, it had also launched shop.bigbazaardirect.com, the online platform for its direct selling offshoot Big Bazar Direct.

Both experiments, however, failed to deliver desired results.



The deal with Paytm

The tie-up with Paytm is Biyani’s yet another attempt at going online. Is he late to the e-commerce party? He doesn’t think so.

“We are not entering late. We were unable to do business online because unit economic wasn’t working,” he told Techcircle, adding: “We didn’t want to spend considerable amount in the acquisition of customers, in fulfilment or administrative obligations.”

Biyani said in Paytm, the Future Group has found a partner that can “bring the unit economics into the business. Besides, we don’t have to worry about payment gateway cost. In that sense, it is a great fix for us.

“Biyani’s optimism may not be misplaced. To begin with, the tie-up with Paytm comes just a few days ahead of Future Group’s hypermarket chain Big Bazar’s yearly flagship sale, Maha Bachat that will run during 13-16 August this year. A hugely popular format, Maha Bachat contributes around 3% to Big Bazar’s annual revenue. With its discounted offers moving online during the four days, Biyani is hoping to reach out to a new set of customers outside of his loyal set.

Related Post: Flipkart launches Fliptech and Hobby Hub to help customers make more informed purchases

Big Bazaar’s online avatar

Under the deal, an anchor store has been created for Big Bazaar on the Paytm app. Customers will not only be able to browse and buy Big Bazaar merchandise on offer, they will get a further 15% cash back on all purchases using Paytm’s wallet facility.

Paytm, too, sees the partnership with Future Group as a win-win deal. “Together (with Future Group), we see a fantastic opportunity to create a mobile first, omni-channel retail and payment solution for our wide consumer base,” Vijay Shekhar Sharma, founder and CEO of Paytm, was quoted as saying in a PTI report.

In a chat with Techcircle, Sharma said the partnership is an attempt at bringing a high frequency, large offline platform, online. “They (Future Group) do not have a very active e-commerce strategy as publicly visible. This (the partnership) will allow them to get mobile and internet customers to shop for Big Bazaar merchandise. Everything that is available offline will be available on the anchor app,” he added.

This article was originally published in TechCircle VcCircle





How Vijay Shekhar Sharma started – Life of Paytm’s founder

His Journey is inspirational to every Indian Entrepreneur.

The man, who always wears a welcoming smile, stands true to every word he wrote during the most difficult times of his life.

From being a small-town boy from Aligarh who bought second-hand tech magazines to the founder of one of India’s most trusted technology brands, Vijay Shekhar Sharma has come a long way.

Vijay Shekhar Sharma owns a company whose current value is a little over $3 billion in the market in 2016, a dream dreamt when he was struggling to make ends meet with Rs 10 in pocket.

His journey is inspirational to every Indian entrepreneur, lets go through his journey with this Infographic showing how he started.





Indian e-commerce war: Flipkart’s Sachin Bansal & Snapdeal’s Kunal Bahl involved in Twitter spat

The ongoing e-commerce war spilled over to Twitter on Friday, when Sachin Bansal, co-founder of India’s largest online retailer Flipkart, made a direct jibe at competitors – Snapdeal and Paytm.

The ongoing e-commerce war spilled over to Twitter on Friday, when Sachin Bansal, co-founder of India’s largest online retailer Flipkart, made a direct jibe at competitors – Snapdeal and Paytm. Bansal tweeted, “Alibaba deciding to start operations directly shows how badly their India investments have done so far.” Recently, Chinese e-commerce giant Alibaba, which has stakes in Snapdeal and Paytm, expressed interest in entering India directly this year.

Snapdeal’s co-founder Kunal Bahl was quick to respond to his arch-rival’s tweet, saying, “Didn’t Morgan Stanley just flush $5 billion worth market cap in Flipkart down the…”, accompanied by a toilet emoticon. “Focus on your business, not commentary,” Bahl tweeted. His comment come on the back of Wall Street powerhouse Morgan Stanley recently marked down Flipkart shares by 27%, bringing down the country’s most valuable privately held tech firm’s its valuation to around $11 billion from $15.2 billion.



This is not the first time Bahl and Bansal have locked horns publicly. Last year, Bahl had said in an interview that he will top Flipkart’s gross merchandise value or GMV by the end of 2015. Flipkart responded immediately through another interview, indicating it will remain the number one player in the Indian e-commerce market.

Alibaba holds around 5% stake in Snapdeal and nearly 40% – directly and via its arm Ant Financial – in online payments major and e-tailer Paytm.

The Indian online retail market is seeing a hotly contested battle being fought among the domestic players like Flipkart, Snapdeal, Paytm and the Jeff Bezos-led Amazon. “This shows that none of the existing e-commerce players show leadership of the market. That’s what makes it such an easy decision for Alibaba to enter. Almost $7 billion of investment has gone and yet there’s no winner in sight. So it’s not just a reflection on Snapdeal and Paytm but the whole sector,” an investor in multiple consumer internet companies said.

Indian e-commerce companies have so far been burning millions of dollars in cash on discounting, logistics and marketing to get to a substantial scale. These subsidies have been financed by investors who have ploughed more than $3 billion and $1.5 billion in Flipkart and Snapdeal, respectively. But with the overall funding environment tightening globally and in India, from here on it won’t be easy for these players to rack up financing and consolidation in the market looks imminent.

This article was originally published in Times of India