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Paytm

Paytm Suffers Almost Tripled Losses in FY19 due to Additional Expenses on Promotions

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Online banking and payment apps have made life a lot easier, and the rewards we get on the payments are a plus. Paytm being the earliest and the biggest player in the country has been the most used payment app. But with the arrival of other payment apps, the former has to face some good losses. Reportedly, Paytm’s parent company has suffered a 165% extended loss for the financial year that ended on 31st March.

The company reported a total of Rs 3959 crore ($549 million) loss which is triple times up its last year’s losses, i.e., 1490 crore ($206 million). Going further, collectively, One97 Communication, including its other business, had to suffer a loss of Rs 4217.20 crore ($584 million), which is way above its last year’s losses, and that is Rs 1604.34 crore ($222 million).

“The company has incurred huge capital expenditure in creating a brand and establishing its business activity. We have incurred a considerable amount in various capital & operational expenditures which resulted in losses during the financial year,” said the company in the annual report.

Paytm
Image Source: forbes.com

Despite the losses, even the revenue of the company is up from its last year’s, i.e., Rs 3232 crore ($448 million) from Rs 3052 crore ($423 million). And, the company is even planning to invest a $3 billion for the growth of its business. According to its previous announcement, the company is even looking forward to going public with the next two year. But seeing its past expenditures, the company had spent a lot in the promotion of its app than it earned from it. So amid the raised competition, it has to be careful about its spendings in the coming future.

“For the last two years, we have been investing $1 billion each year to expand the digital payments ecosystem in our country. We will further invest about $3 billion in the next two years to scale the same,” said a Paytm spokesperson.

There has been a tough competition for Paytm as there are not less than ten payments (national and international) apps that are offering people exclusive offers along with the easy payments. Most of the big companies have brought their payments app, Google Pay and PhonePe, being the ruling party among of all. In fact, UPI-based apps like PhonePe are backed by the government and are even more flexible for the payments than Paytm. So it has become quite difficult for the company to stay firm in the market.

But according to the company, it is safe and is already spending on expending and strengthening its business and has claimed that the next year, there won’t be such losses. For now, the company is entirely focusing on its payments bank, insurance and insurance broking, travel ticketing, hotel and mobile wallet services, etc.

spicejet

Ajay Singh : The Man Who Saved SpiceJet From Vanishing into Oblivion

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What is good in doing business without risks? When one aims for something bigger and more profitable, it is reasonable to go against the odds and take the chances. But, what about the companies whose strategies are failing and going downwards in the spiral of destruction? Should it give up or just hope for a knight in shining armour to appear and be the lifesaver. Well, the story of SpiceJet clearly narrates a tale, where they well resurrected by none but Ajay Singh. After facing excessive loss through 4 consecutive financial years, Ajay Singh finally stepped in to take over the control once again and re-establish the reputation of the company.

SpiceJet is an Indian airline headquartered in Gurugram whose history dates back to 1984.

Early Life

Singh was born into an influential family from Delhi. His father was an established businessman, Vijinder Singh, and his mother was Kalpana. Singh’s family business was mainly about real estate and fashion accessories.

Ajay Singh SpiceJet
Image Source: indianexpress.com

Singh was kind of an all-rounder from a very young age. He went to St. Columba’s School and apart from excelling in his academics, he was very good at playing cricket, table tennis and football. He was also the caption of his school’s football team. After completing his school, he went to IIT Delhi and graduated from there in 1988 with a degree in textile engineering. And, like kids in the family of every other businessman, he went to pursue his MBA. He completed his MBA from Cornell University.

Early Career

At Cornell, he became the President of the Indian Association, and thus, showed a keen interest in the events of India related to government policies. He was also interested in political matters and thought that more educated people are needed in the Indian political system. So, he came back to India in 1992 and pursued law at Delhi University.

In 1996, Rajendra Gupta, a BJP leader who later became Delhi transport minister, hired Singh for Delhi’s transport corporation board. After joining his first responsibility was to stabilize an already bankrupted corporation, which had 40,000 employees. Singh implemented the global transportation strategies and expanded the corporation from 300 to 5000 buses within a span of two and a half years. This was his first achievement after returning to India and stepping into both the political and business world.

In 1998, Singh became an officer on special duty (OSD), where he played a major role in launching DD Sports and DD News. Singh had some plans and suggestions in his mind to reduce the cost of telephony, and thus, persuaded BSNL to drop the incoming charges on mobile. All these developments took place only up till 2004 when BJP lost the general election, and Singh found him unemployed.

Singh Acquired SpiceJet

After BJP lost the election, Singh decided to get back in the entrepreneurial world, and his first move was to acquire ModiLuft and carrying the business as SpiceJet.

Looking back to the history of ModiLuft, it was an airline company established in 1984 by S.K Modi. In 1993, it came into a partnership with Lufthansa, a German airline, but in 1996, it ceased the operations.

So, whatever was left of the company was acquired by Singh after eight years, and this time, he renamed it as SpiceJet and followed the low-cost model to provide a good experience and low fare to the public.

Initially, Singh’s stake was 20% in SpiceJet, but it came to 6% when media tycoon Kalinathi Maran acquired 37.7% in 2010. Eventually, Singh sold his remaining stakes too.

The Downfall of SpiceJet

After Singh stepped down, SpiceJet rocketed in terms of making consecutive losses in three years. In the year 2012, SpiceJet faced a loss of Rs 604 crore followed by Rs 192 crore, Rs 1,001 crore, and Rs crore, in the next three following years.

The market share dropped from 20.9% in 2014 to 9.2% in 2015. Increased number of employees also created a problem, as, after some time, the company was unable to pay them. The oil companies also refused to refuel them, and by 2015, the company was barely able to crawl on the surface with no chance of survival. This is when Singh stepped in.

Bringing SpiceJet Back to Business

Singh was back in the territory of SpiceJet in 2015 and acquired 58.46% stakes of the company. He spotted that over employment was a very big issue with the company and brought down the number of employees to 4,000 from 5,500. After facing crores of loss for four consecutive years, the company finally made a profit of Rs 450 crore in 2016.

Today, SpiceJet has become India’s fourth-largest airline in terms of passengers and operates 306 flights on a daily basis.

nazara technologies

Nitish Mittersain : The Founder of Leading Mobile Games Publishing Company in India, ‘Nazara Technologies’

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The thrill gaming world brings to us, especially to the youngsters, is boundless. To plan a start-up based on gaming technologies brings with it a great potential to flourish in future. But, in a country like India, the major part of the crowd doesn’t support this unorthodoxy. Indian families always oppose the idea of gaming and even being a part of it. So, thinking about a gaming start-up is next to being delusional.

But, breaking all the social norms Nitish Mittersain, a boy from a typical Indian Marwari family, made bigger plans and established his gaming company, Nazara Technologies. Nitish Mittersain is an entrepreneur who founded India’s leading mobile gaming company in 2003. He was always passionate about video games and so decided to build his future around his interest without any hesitation.

Early Life of Mittersain

Since Mittersain belonged to a Marwari family, he was expected to join his father’s textile business after he completed a degree in MBA. But Mittersain as a very young kid was strongly attracted to the world of gaming and coding. His room used to be full of modems, video and computer games of all kind. Thinking that every kid loves to play video games, his father gifted him a ZX Spectrum, but little did he know that this is just the beginning of something incredible and unexpected. Receiving this gift was just like a spark that ignited the passion of gaming in him, and he coded his first game at an age of seven.

Nitish Mittersain
Image Source: glaws.in

During his college life, Mittersain started a bulletin board service which helped him connect to many influential and famous people over the internet. And this is how he got an opportunity to come across the 1960s actor, Shashi Kapoor. Apart from being known as a talented actor, he also showed great interest in technology and the internet. After his cinematic career, Kapoor engrossed himself in spreading of technology, and that’s how both, Mittersain and him, hit a common ground to discuss. Mittersain spoke to Kapoor almost every day, regarding the perfect blend of entertainment and technology. And, Kapoor was the one who inspired him and gave him ideas to start his own business. Getting motivated enough, Mittersain decided to launch his gaming company, Nazara Technologies, when he was still in college.

Beginning of the New Business

Nitish Mittersain founded Nazara Technologies in 2000 in Mumbai. But land swept off from under his feet after an unfortunate incident took place. The first dotcom crash in that very year made him question his decision repeatedly and whether to back off or not. But, he didn’t want to shut down his business as it was the doorway to his dreams. He tried his best to survive the bubble burst and with some clear strategies and a little luck he finally survived the crisis.

Stepping Ahead of Others

Being an entrepreneur with an innovative idea, he was already one step ahead of his competitors. And, in the early 2000s, there weren’t many companies in India that planned to develop gaming technologies. So, using it to Nazara’s advantage, Mittersain’s first strategy was to invest in advertisement and brand campaigning. He knew that once it captures the attention of mass, investors would line up in front of his door. So, in 2004, he approached Sachin Tendulkar, the legendary cricketer of that time, to come on board. After months of requesting and convincing, Tendulkar finally made a deal with Nazara Technologies. This strategy of his stirred the existing competitors away from his way.

Soon, Nazara came into a partnership with Electronic Arts (an American video game company) and brought it to India. Once, the company started taking up a good and faster speed, Mittersain planned to expand the market with stronger and bigger partnerships.

Keeping aside Nitish Mittersain’s passion for games, when he developed the company, his dream was as simple as that to make huge profits. But, he also wanted his company to play fair and square in the market, and it is appreciable that even after 19 long years of sustaining, his company doesn’t have any lawsuit against it.

The success of Nazara Technologies

Today, Nazara is doing business in 61 different countries, with more than 130 million monthly visitors. In 2017, nine in-house games of Nazara were listed among the top three games by download on Google Play Store.

Recently, Nazara has acquired 27.42% minority stake in Crimson Code, which will allow the company to offer real money on winning live quizzes. In 2019, the company acquired a 67% stake in Sportskeeda and now expecting an IPO in early 2020.

rapido

Rapido : India’s Biggest Bike Taxi Pooling Service

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Though taxis were always there, the ride-hailing services have got even more popular after the companies like Uber and Lyft has come onboard. These apps provide the most convenient method to hire cabs and travel independently. But for a daily basis, these are not the affordable choice for people. In countries like India, there is also a problem of traffic in big cities, which also affect the efficiency of a rental car. But with the motorbikes, there is still hope for affordability as well as escaping the traffic. This very fact has inspired many people to build a bike ride-hailing service, and companies like Uber and Ola are not any exception. Even though these big companies could manage to host the very service, it is Rapido that has successfully established its motorbike ride-hailing service in India.

Rapido was founded by three engineer friends, Aravind Sanka, Pavan Guntupalli, and S.R. Rishikesh, in 2015, in Bengaluru India. Sanka and Guntupalli are childhood friends, and Rishikesh was the flatmates with Guntupalli. Three of them were working as engineers in Bengaluru, earning good bucks, but none of them could not escape from the startup fever.

After the app-based ride-hailing services came to India, all three loved the concept and used those apps to commute to their offices and back. But it was not an affordable option. One fine day, all three decided to overcome this problem and look for some better and affordable option for daily travelling.

Rapido founders
Image Source: Forbes

Motorcycles are quite popular in India and are also the most affordable mean of travelling. All the three decided to quit their job and start working on a business model that will help people hire bikes to commute from one place to the other at cheap prices. At the beginning of their business, they named the company ‘theKarrier’. They started theKarrier in November 2014 and rebranded it as Rapido in 2015.

The basic idea behind the startup was to hire people who owned two-wheelers. The idea was different from Uber and Ola, as these company invested heavily on the vehicles. But in the case of Rapido, the bike owners just needed to register on the Rapido-captain app and verify their details with the company. And, they were good to go. Another thing that helped Rapido to rise above its rivals was that it did not bother that the driver wanted to be full or part-timer.

The driver in terms of Rapido is called the Captain, and the company provides its every captain with insurance. For the safety of the rider, it has included a few features on the app. The user gets the assistance just in a single tap on the app. Rapido has also set up a customer care service for the users and also offers perks on the rides.

Almost over 5000 drivers use the app every day, and an average of 15,000 drivers log in to the app every month. These drivers also complete over 30,000 rides per month on an average, and the company aims to make it one million rides per day by the end of 2019. The women drivers have also registered to the app and are successfully earning good money over it. According to the stats, the app usually registers drivers of the age between 18 to 50 years.

In April 2017, Rapido raised an undisclosed amount in its pre-Series A funding, backed by Hero MotoCorp Ltd chairman Pawan Munjal and Google India managing director Rajan Anandan. By 2018, the company has raised $6 million in two rounds and was earning a $1.5 million revenue every month. It hosted the latest round of funding in August 2019 and raised over $58 million in funding led by Westbridge Capital. Rapido wants to spend this money on technical innovation and intends to reach 100 major cities in India soon.

Rapido began its service from Bengaluru and is now expanded to 40 cities across the country, including Hyderabad, Mysore, Vishakhapatnam, Vijayawada, Tiruchirappalli, Madurai, Coimbatore, Indore, Guwahati, Surat, Patna, and the NCR region.

The Rapido founders got their names listed in Forbe ‘30 Under 30 Asia – Consumer Technology 2019’.

Reno 2

Oppo Launches the Reno 2 Series Smartphones in India

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Oppo has launched another range of smartphones, and that the company has brought to India first. The new series is called the Reno 2 series, under which the company has launched three flagship smartphones, Reno 2, Reno 2Z, and Reno 2F. Though the Reno 2 series is the sequel of the previously launched high-end smartphone Oppo Reno series, it is not that of a high-end series. But still, the series includes one of the decent smartphones that lie under the affordable mid-range smartphone criteria.

Reno 2

The Reno 2 smartphone is a 6.5 inches smartphone and is powered by the Snapdragon 730 processor. It has got an 8GB RAM as well as offers secondary storage of 256GB, which is further extendable through an SD card. The smartphone is being compared to Samsung’s Galaxy S10 due to the usage of the 20:9 1080p Dynamic AMOLED panel in it.

The quad-camera on the rear of the smartphone includes a 48-megapixel Sony IMX 586 primary sensor with an 8-megapixel wide-angle camera, a 13-megapixel telephoto camera along with a 2-megapixel monochrome sensor. The cameras are accompanied by an LED flashlight, and all the cameras and the flash have been coupled in a vertical line at the back of the smartphone.

Reno 2
Image Source: gadgets.ndtv.com

There is also a 16-megapixel selfie pop-up camera that comes out through motorised camera mechanism from the top of it. The very smartphone will be available for Rs 36,990 in the Indian market starting from 20 September. The prebooking fro the smartphone will start from 10 September.

Reno 2Z & Reno 2F

On the other hand, the Reno 2Z and Reno 2F have got a bit smaller screen size, i.e. 6.3 inches 19.5:9 1080p OLED screens. The Reno 2Z is empowered with the MediaTek Helio P90 processor, whereas the Reno 2F is running on an Helio P70 processor. Both the smartphones, like Reno 2, have got an 8GB RAM. Reno 2Z includes a 256GB internal storage, and the 2F has got a 128GB internal storage.

The camera setup for the two is similar to that of the Reno 2, i.e. is a quad-camera setup in a vertical line on the back of the smartphones. Both have got an 8-megapixel wide-angle camera with a 48-megapixel main camera, a 2-megapixel sensor with a mono lens and 2-megapixel portrait sensor. But for both, the company has used different sensors for the main camera. For Reno 2Z, the company has used the Sony IMX586 sensor, and for Reno 2F, Samsung’s cheaper GM1 module has been used. The company has used an electronically stabilized camera setup for both instead of optical image stabilization.

The price of the Reno 2Z is set to be 29,990 and is already available for pre-bookings. The smartphone will be available in the market starting from 6 September. On the other hand, the price of Reno 2F is yet to be revealed, and as indicated by Oppo, it will be available for purchases in the coming November.

All the three shares a few similar features, like all the three runs the Oppo’s ColorOS 6.1, they have got the support for USB-C, VOOC 3.0 flash charging, a 4,000mAh battery and has also got the support for an optical in-display fingerprint sensor.

The company has shuffled the smartphones in four different colours, that includes Ocean Blue (Reno2), Luminous Black (Reno2 & Reno2Z), Sky White/Polar Light (Reno2Z), and Sky White/Lake Green (Reno2F).

keka

Vijay Yalamanchili : The Founder of the Best Payroll and HR Software in India, ‘Keka’

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We are often ambushed by many software companies in the market while searching for the best. Be it a tool for project management, your digital assistance, or an HR software, we often find ourselves in a huge dilemma. So, to reduce one of your conundrums, YourTechStory brings to you the flabbergasting story of Keka, the best HR software in India till date.

Vijay Yalamanchili, the founder of Keka, solely founded the company out of sheer disappointment and frustration from working with HR software not up to the mark. He found that the HR software available in the market have a very poor user interface, which leads to a substandard experience for both the HR and the employees. So, to contribute to the HR community of India, Yalamanchili built the software, Keka HR in 2015. Apart from HR software, Keka also has payroll software, applicant tracking software and much more.

Early Life and Career of Yalamanchili

Yalamanchili is mainly a product designer and architect by profession. He pursued his B.Tech in Electronics and Communication Engineering from JNTUH College of Engineering, followed by an MS from the University of Delaware.

Vijay Yalamanchili keka
Image Source: iamwire.com

After completing his MS, Yalamanchili started working with Microsoft in 2003 as a Software Development Engineer. He worked there only for three months.

In August 2006, he co-founded Fotolink Media, a visual image search platform used for product marketing by brands using mobile devices like mediums. It was one of the first mobile start-ups in India. He left the company after 4.5 years and founded Ramp India in 2006. The company was developed to provide solutions and build products for start-ups in India. After working in Ramp with a strong architectural team and delivering over 30+ products, Yalamanchili founded Technovert in July 2012. The zeal for excelling in the world of technology made Yalamanchili establish software solution companies one after the other. He co-founded Technovert with Sashi Pagadala. The company provides services in India, USA and Dallas.

By this time, Yalamanchili suffered enough with the HR software and founded Keka HR in 2015. It’s a Hyderabad based start-up which put a significant impact on the market when it got released, as it provided a better user experience to people.

Strategies to Outdo the Competitors

By the time Yalamanchili founded Keka, he was experienced enough to understand the major flaws in the other HR software. So, his main focus was on improving quality.

Yalamanchili’s first target was to make the user experience better because if the user experience degrades, after a point of time, it would ultimately ruin the brand name, which had already happened to all the other HR software out there.

Another major fault that Yalamanchili noticed in other HR software was the tracking of attendance. No existing software before Keka directly synced biometric devices to attendance log. Hence, it was very tiresome for the HRs to update it manually in the web browser. Keka got a very big bonus point by adding this feature. Though it took almost 1.5 years to build a software like this, it paid off well.

Keka also implemented well-designed security and privacy features that allowed the customer to get notified even if a Keka Customer representative is accessing their account. So, Keka itself also cannot sign in to customer’s account without their consent.

Instead of running behind more customers, Keka invested more time with its existing customers to improve their products until and unless it gave a smooth performance. It is very important to make the customers feel worthy and important because if they feel so, the scale will rise up automatically.

Success of Keka

It is nearly unbelievable that a company which acquired around 450 clients in less than a year is self-funded, given that Keka includes reputed clients like Godrej, Honda, Saavn and ClearTax. Keka is the recipient of the Hottest Start-up of Hyderabad Award and is in Top 3 in terms of bagging new customers with a comparatively smaller team with respect to its competitors.

Keka wanted to go old school, and hence, it tried becoming self-independent which turned out to be surprisingly successful. The company wanted to develop software with a touch of Indian style, and hence, they named it ‘Keka’ which means awesome in a native South Indian dialect. And, guess what? It just proved to be worthy of the name since the very first day.