Your Tech Story

start-up

Pitney Bowes

You’ve Got Mail: Success Story of Pitney Bowes

Leave a Comment / Founder, start-up, Story, Tech Story / By

Pitney Bowes is a company that sells mail machines, in a time when people rely more on email than on postal mail. Their business is supposed to, at least theoretically decline and hit an all-time low. Yet, their shares are rising and even hit the $26 mark per share, when ex-IBM employee Marc Lautenbach joined in 2012. So what helps a company that sells something the majority of the world sees as outdated, make revenue and keep afloat? Their shares have grown at a rate higher than that of Facebook‘s for the same time period. So what makes this possible, and how did Pitney Bowes get to the stage it is at now?

About the Founders

Arthur H. Pitney was born in 1871 and is an American inventor and entrepreneur who is known as the founding father of the modern postage meter. Pitney was responsible for filing a patent for the world’s first postage meter in Connecticut in 1901. He worked on the instrument for over twenty years, redesigning and perfecting the design along with his friend and partner Walter Bowes. As soon as the meter was given the green signal by the U.S. Postal Service, in 1920, the duo founded the Pitney-Bowes Postage Meter Company which is now worth over $6.1 billion.

Though Arthur Pitney was born in Illinois, he shifted to Chicago in 1890 and frequented the World’s Columbian Exposition in 1893. He worked as a clerk in a wallpaper store and his interest in mechanical engineering made him explore options to simplify the stamping process in his free time. By 1902, Arthur had gotten a patent for his gadget, even giving a free trial run in 1903. He first founded a company called the Pitney Postal Machine Company in 1902 and later renamed it to the American Postage Meter Company by 1912. The machine was not an instant success, and his financial crisis made him sell insurance as a side-business.

pitney bowes
Image Source: thehour.com

Meanwhile, Walter Bowes was a British industrialist born in Bradford in 1882. He moved to America and was working as a salesman for the Addressograph Company. In 1909 he bought the Universal Stamping Machine Company and initiated relations with the U.S. Postal Service to sell stamp-cancelling devices. It was around this time that he met Pitney, and decided to combine forces to form the Pitney-Bowes Postage Meter Company.

Founding Pitney Bowes

Pitney’s break came in 1919 when he was introduced to Walter Bowes, and by 1920, the duo formed the Pitney-Bowes Postage Meter Company. The first meter manufactured by the company became functional in November of 1920, thanks to legislation passed by the US Congress. By 1922, the meter was cleared for usage in Canada and England, and Arthur even won a Certificate of Merit from the Franklin Institute. After a dispute with Bowes, Pitney resigned in 1924.

Pitney served as the company’s inventor, and Bowes focused on lobbying to ensure the Congress would pass the required legislation. As soon as his labour bore fruit, the first meter was set up, and Bowes posted a letter to his wife, via the postage meter. In two years, the company grew, and over 400 such meters were issued for use, in the postage of mail over $4 million in value.

Soaring Success

After Arthur Pitney resigned in 1924, Walter Wheeler II became the general manager. Since then, the company has expanded exponentially, now providing services such as customer engagement and management, global e-commerce, shipping and location intelligence to over 1 million customers in more than 100 countries. The company now has more than 33 offices around the world, with operating centres in UK, Tokyo and Delhi, employing over 14,000 people from all over the world.

Pitney Bowes entered the postage-meter business in 1920, a time wherein sending a letter would set the sender back by only two cents. Today, the company has expanded and now has several divisions; a postal service for small and medium-sized businesses, and another that serves as a comprehensive shipping-management service. The latter brought in almost 57% of their total revenue, with Ebit earning standing at 35% of total income, at a time when Apple‘s Ebit margin stands at 30%. By 2003, the company was generating a profit of $498.1 million and by 2005, that earning grew by over 11%, hitting $5.7 billion in 2006.

A small idea that a clerk in an ordinary store in 1920, led to the formation of a company which became the world’s largest manufacturer of mailing equipment. With Pitney-Bowes controlling over 85 % of the American and 60% of the world’s postage meter market, it is safe to say that it has left behind a strong legacy. If anything, this success story is a testament to the fact that genius ignites in small details, and that it can be found in the strangest of places, in the strangest of times.

vianai

Vishal Sikka : Ex-CEO of Infosys and the Founder of AI-based Startup Vianai System

Leave a Comment / Founder, Inspiration, start-up, Story, Tech Story / By

Speaking of artificial intelligence, it is quite important to mention machine learning too, because both of these go hand in hand. Today, most of the huge software companies use the concept of ML and AI to build their software and products. In a nutshell, artificial intelligence is becoming the building block for the new tomorrow, with its past rooted to the core of science. It is kind of mandatory to learn about ML and AI for most of the programmers today. Because it opens a window of vast opportunities for one’s career as well as a scientific development.

A lot of companies have started adopting the concept of AI and ML to enhance their products and the approach of development. And, one of the most recent start-ups based on AI has been launched in this very year by Dr Vishal Sikka, Ex CEO of Infosys. After leaving Infosys in 2017, Dr Sikka decided to start his own business, and hence, launched it on 12th September 2019. With a sky-limit scope in the area of AI, Dr Sikka’s main motive is to harness its power and make every industry adopt this concept and implement it in every product.

Early life and education

Born into a Punjabi family in Madhya Pradesh, India, Vishal Sikka’s father was an officer in the Indian Railway and his mother was a teacher. At the age of six, the family moved to Vadodara, Gujarat from Shajapur, Madhya Pradesh. Since his father was an engineer and his mother a teacher, academics turned out to be his strength and engineering his love.

Vishal Sikka founder Vianai
Image Source: thehindu.com

He went to Kendriya Vidyalaya, Rajkot and completed his schooling from Rosary High School. Following his father’s foot trails, Sikka pursued his Bachelor’s degree in Computer Engineering from the Maharaja Sayajirao University of Baroda. Though he was admitted to one of the renowned colleges in India, Vishal Sikka wasn’t satisfied with it. He left the college immediately after he got admission to Syracuse University, New York. He pursued a B.S degree in Computer Science and later, went to Stanford University to complete his PhD.

Early Career

After completing his PhD, he started working with Xerox’s research lab, and after working there for some time, he realized his dream, i.e., launching a start-up. He founded iBrain, his first start-up which was acquired by PatternRX, and his second start-up was Bodha.com, which was acquired by Peregrine Systems. At this time, Sikka joined Peregrine as the Vice-President for Platform Technologies. His main area of work was application development and technical designing.

One of the advantages in Vishal Sikka’s career was the time when he just started accelerating in his professional world. He came very close to Hasso Plattner, founder of SAP. This helped him a lot in landing a job in SAP. He joined SAP in 2002 as the head of strategic innovative projects. Eventually, he was promoted to Senior Vice President and ultimately, to the position of first-ever CTO in April 2007. After working for more than a decade in SAP, Sikka finally resigned from the company on 4th May 2014.

Once you reach a certain point in a career, you don’t have to turn back twice to question your decisions. And, this happened to Sikka the moment he joined SAP. Sikka decided to leave SAP for some personal reasons, and undoubtedly, a person of his calibre was on-demand in the tech market.

Soon after he left SAP, Vishal Sikka joined Infosys on 12th June 2014. The ex-CEO of SAP was named the new CEO and Managing Director of the second-largest IT industry of India. He was declared as the whole-time director of the board of Infosys on 14th June 2014. After serving in this company for three long years, Sikka stepped down from his position and set off his course towards establishing his own start-up.

Vianai Systems

In 12th September 2019, Sikka finally launched his own AI-based start-up Vianai systems with the dream that AI and ML have the full potential to change every industry. Sikka’s start-up received a seed funding of $50 million which is going to increase with rocket-speed shortly.

Revolut

Nikolay Storonsky : Founder of Revolut, the Amazon of Banking

Leave a Comment / Founder, start-up, Story, Tech Story / By

No one better than a traveller would know the worth of every single cent as he/she has to pay an extra fee on the exchange of currency when crossing borders. This is not only the problem of a traveller but many others, who need to get their currencies exchanged, and that too, over different exchange fees. Would it not be better if we get a personalised and accurate platform that would help us with the foreign spendings and the currency exchanges, so that the whole process remains transparent, and we always pay the right amount?

Nikolay Storonsky, a British-Russian entrepreneur, went through the same problem, every time he planned vacations out of the country. But, in the end, he came up with Revolut. Revolut is a banking app that helps you with your finances and spendings across the globe.

Early Life

Nikolay Storonsky was born on 21 July 1984 in Moscow, USSR, to Nikolay Mironovich Storonsky. His father is the Deputy General Director of Science for Gazprom Promgaz, Russia.

Nikolay Storonsky
Image SOurce: vixc.com

Storonsky, after completing his school education from a public school, joined the Moscow Institute of Physics and Technology, where he completed a master’s degree in Physics. During his time at the university, he also participated in various swimming competitions and became a state-level swimming champion. Later, he went to the New Economic School in Moscow, where he completed another master’s degree in economics.

Storonsky started his career as a trader and worked for Credit Suisse and Lehman Brothers.

Founding Revolut

Storonsky loved travelling and even went abroad for small trips. But every time he went out of the country, he faced issues with the currency exchange and their hiked fees. This annoyed Storonsky a lot and wanted to find a better solution for the same.

After a lot of searching and brainstorming, Storonsky reached to a conclusion that he should develop a system that could help people with their finances. So, along with Vlad Yatsenko, and with the help of former Credit Suisse and Deutsche Bank developer, he started working on Revolut.

In the beginning, he raised a $3.5 million for the startup and launched Revolut as an exchange platform on 1 July 2015. The new and convenient concept of Revolut helped it reach more people and make other investors interested in it. In the next two years, the company raised $71 and valued at $350 million. The company also added some other financial services to the platform like cryptocurrency exchange, peer-to-peer payments and pre-paid debit card, etc.

In 2018, the Revolut raised a $250 million in another round of funding, led by Hong Kong-based DST Global. The company became a unicorn and valued $1.7 billion after the round of funding. The same year, the company was able to get the Specialised Bank licence from European Central Bank and an Electronic Money Institution licence, both facilitated by the Bank of Lithuania.

This way, the company is allowed to accept deposits from the consumers and offer them credits. But since it has the Specialised License, it cannot process the investments from the consumers.

Further Expansion

Revolut is one of the fastest-growing fintech, and as of February 2019, it has earned over 4 million users out of which half of them uses the Revolut debit card. The Revolut app offers withdrawal of around 120 currencies through ATMs, and around 29 currencies can be sent to people directly using the app. The app also supports the exchange of cryptocurrency with 20 different fiat currencies. The cryptocurrencies that the app support includes Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and XRP, etc. The app has its own wallet that can be used to make online payments.

The app had been developed to help people cut the extra fees they pay on exchanges, so the app provides a minimal or no fee for all of its services.

The company headquarters is based in London, United Kingdom, and Nikolay Storonsky is serving the company as the CEO. Currently, 600+ people are working for Revolut. The net worth of Storonsky is estimated to be $510 million.

Awards and Recognition

Revolut has been ranked number three in the LinkedIn Top Companies (UK Startups) list in 2018. It has been also awarded the Top 10 Employed Brand (UK) by Hired in the same year. Revolut won the award of Hottest Fintech Startup 2018 by Europa Awards and Innovator of the Year 2018 by Amazon Growing Business Awards. It was also named the Fintech Company of the Year 2018 by CityAM Awards.

For now, Storonsky is working hard and wants to extend the scope of Revolut services to other countries as well.

Bigbasket : The Success Story of India’s Biggest Online Grocery Store

Founder, start-up, Story, Tech Story / By

The days are long gone, when we had to wait for our turn in the long queues at a grocery store after roaming around and shopping for hours. Since online trading has seized a bigger part of marketing, the grocery stores are also getting modernised. And with this revolutionary change, a lot of online grocery stores came up in the digital market, such as Farm2Kitchen, ZopNow, etc. But only a few of them were able to stand high after multiple business turmoil, especially after the dot-com boom. Bigbasket is one of those successful start-ups that became India’s largest supermarket within a few years. Though the founders of Bigbasket started their start-up journey around the time of the market crash in 2000, they were able to establish as one of the leading online grocery stores.

Founders of Bigbasket

Conventionally, when we hear about recent start-ups, we think of young minds with brimming enthusiasm in the business field. But, it has always been that extraordinary ideas come from experienced minds.

Bigbasket founders
Image Source: thenational.ae

Bigbasket is one such start-up whose five founding members already had enough experience in this industry and were skilled in their fields.

Mr Hari Menon, the current CEO, and one of the founders of Bigbasket, also served as the CEO of IndiaSkills, Co-founder of Fabmall, Country Head at Planetasia and Business Head at Wipro.

The four other founding members of Bigbasket includes Mr V S Sudhakar, Mr Vipul Parekh, Mr Abhinay Choudhari and Mr V S Ramesh.

Each of the founders has a unique vision about the business, and their ideas complement each of them. Sudhakar has got a vast experience in the IT sector, and he is also the founder and CEO of Fabmall. Parekh is the Head of Finance and Marketing at Bigbasket, whereas Choudhari serves as the Head of New Initiatives. With 21 years of experience in the logistics sector of the Indian Navy, Ramesh is currently the Head of Logistics and Supply Chain of the company.

History

The five founders started their first online business, Fabmart.com, in 1999. The online grocery division of this business was launched in 2001, and the company grew exceptionally. They also started a succession of grocery supermarkets called Fabmall in Southern India, which the Aditya Birla group acquired in 2006, rebranding it as More. But the founders were still too adamant about establishing something bigger in the grocery market of India and finally launched Bigbasket in 2011.

The Journey Towards Success

The company raised around $10 million in the first round of funding from Ascent Capital. By 2014, the company was growing massively in three major cities, confirming over 5,000 orders every day. In March 2016, the company raised $150 million from Abraaj Capital in Series D funding. In the same year, the company also crossed targeted 10 million customers orders and also received 1million orders in a single month. By June 2017, the company raised around $290 million in total from 8 rounds of funding and 11 investors. In the same year, the company’s most lucrative investors were Paytm and Alibaba, from whom the company raised $280 million in the Series E funding. Some of the investors who participated in the investment rounds of Bigbasket are Bessemer Ventures, Helion, Zodius, LionRock Capital and Meena Ganesh.

With all the investments it received, Bigbasket decided to expand the business in other cities of India, too. The company also built several warehouses and invested in cold room facilities to enhance the range of fresh products. It also invested in technology to make delivery more efficient and shopping easier, both from the browser and mobile application. But amid the growing competition in the market form other companies, like Grofers and LocalBanya, Bigbasket started focussing more on personalized shopping.

After deep research of 5 years, Bigbasket figured out that the products in demand varied from city to city. This helped the company to put more emphasis on those products and expand the number of brands. For example, for the city with more demand for dairy products, Bigbasket introduced an extended range of brands of the milk products for that particular city. This strategy escalated the profit of the company and helped outdo its rivals.

The Future

The company allows customers hassle-free browsing through the products and relaxed shopping. Today, Bigbasket sells more than 12,000 varieties of products of 1,000 different brands in 25 cities.

According to some estimates from the experts, the company may value over $1.2 trillion by 2020.

Ritesh Agarwal : A 23-years Millionaire Who Founded Oyo Rooms

Founder, start-up, Story, Tech Story / By

Ritesh Agarwal, founder and CEO of OYO Rooms, has become a significant figure in the entrepreneurial world, after his gargantuan success. It is quite commendable for an eighteen-year-old to start a business oh his own, and make it worth millions over a span of six years.

Early life and career

Born into a small town, called Bissamcuttack of southern Odisha, Agarwal belonged to a middle-class Marwari family. He was born on 16th December 1993 and resided with his parents, until he decided to establish a business of his own. Unlike the typical Marwari families, Ritesh’s family wasn’t financially predominant, but they always supported his dreams and trusted him. From a very tender age, Agarwal had a keen interest in software and coding. He started learning beyond the limited syllabus of school and delved deeper into computer languages. At an early age of eight, he started learning to code, and by the time he was in his tenth grade, became quite a good programmer. He loved programming and wanted to make his career in it.

Ritesh Agarwal Oyo Rooms
Image Source: telegraphindia.com

Agarwal did his schooling from Odisha. Later, he moved to Kota to prepare for his IIT entrance exams. So, he was just a common head among the mass, who wanted to pursue engineering. But that never happened. He took admission in the University of London’s India campus. But after just a few days, he went on leave and never came back. He wanted a different life for himself, and the outdated studies at the college could not give him that. As they say, some feathers are too bright to be caged.

He launched a website Oravel Stays, his first start-up at the age of eighteen after he dropped out of college. The website was designed to enable customers to look for budget-friendly accommodations in various places. This was when he realized that there is a great scope of improvement in the hospitality sector and started back-packing across the country to learn and explore more and get accustomed to the realistic scenario. He also sold sim cards during the journey of his immense struggle to meet the financial needs.

After his venture of three months, he stayed in more than a hundred hotels, bed and breakfast homes, and guesthouses. He, finally, whirled from Oravel Stays to OYO Rooms in 2013. Since, he stepped into the real world from the very beginning to gain genuine understandings of how the business on his interested field works and what it lacked, the success of OYO Rooms escalated even more rapidly than Oravel Stays. He was also the first Indian to be chosen for Thiel Fellowship and was granted $100,000, as he was under twenty and a college dropout. Agarwal, in one of his interviews in 2015, said that OYO is the abbreviated form for ‘On Your Own’.

The success story of Ritesh Agarwal and OYO Rooms

OYO Rooms was founded in 2013 and turned out to be the country’s largest hospitality company. The company has its headquarters in Gurgaon, Haryana. Soon after the establishment of the company, the business expanded exponentially not only among various cities of India but also across Asia and Europe. OYO has also grown firm roots in China, Malaysia, Nepal, Japan, Indonesia, the United Arab Emirates, the Philippines, Saudi Arabia and the United Kingdom.

In May 2014, the company raised $650,000, followed by raising $24 million in an investment round led by Greenoaks Capital in March 2015. Companies like Lightspeed Venture Partner, Sequoia Capital and DSG Consumer partners also participated in the round. In 2015, another round of $100 million was raised by the company from Softbank Group.

In August 2016, the company raised $90 million from Softbank Group, Innoven Capital and other investors. This gives a clear picture of the growth trajectory of the company since it was formed.

In September 2017, OYO closed a $250 million round of funding, which was led by a new investor Hero Enterprise along with Softbank. By this time, the value of the company had reached around $850 million-$900 million, changing the face value of this Indian company across the globe. In the same year, OYO launched OYO Home to manage short-term rentals in more than 10-holiday destinations of India, and in the very next year, it launched its first international OYO Home in Dubai.

In September 2018, the company raised $1 billion, where most of the funding was led by the already existing investor Softbank Group’s Softbank Vision Fund, where participation of Lightspeed Venture Partner, Sequoia Capital and Greenoaks Capital was witnessed. The company also received a funding of $200 million from an investor the company denied to reveal the name. After this deal, the company’s value was $5 billion giving it an unexpected leap.

In May 2019, OYO announced that it would acquire a rental business (Leisure Group) based at Amsterdam.

Currently, OYO has a network of 2,200 hotels in more than 154 of India. The current CEO of OYO is Aditya Ghosh, and there the company has around 1500 employees working in various sectors to spread across the entire world to provide the best shelters to the travellers even at offbeat destinations.

Sonos : The Pioneer in Wireless Smart Speakers

Founder, start-up, Story, Tech Story / By

Handsfree, smart speaker, music streaming services, so much has been changed in the past more than a decade. To be precise, there were no such technologies over 17 years ago, and people were happy detangling the mesh of cables for music. But there was a group of visionaries, that wanted to bring the change and free people from the trap of cables to provide them with the best sound experience.

The American consumer electronics company, Sonos, was founded by four business partners John MacFarlane, Craig Shelburne, Tom Cullen, and Trung Mai, in 2002. Except for John, all the other three co-founders belonged to Santa Barbara, and John moved to the city to pursue a PhD degree from California-Santa Barbara in 1990.

sonos
Image Source: digitalmusicnews.com

At the same time, the Internet was at its initial stage and was not as popular as it is today. At that time, only fewer than 16 million U.S. households had high-speed dial-up broadband, and America Online was the top internet provider in the U.S. Like other technical persons, John was also sure about the future success and scope of the internet. This way, along with Craig Shelburne, Tom Cullen, and Trung Mai, John decided to start Software.com, and after running it for a decade, they sold the company to Phone.com.

After selling the company, the next thing the visionaries had to do was to think of a new business idea. For a few months of brainstorming, John presented a plan to start a business of building devices which would enable local-area networks for aeroplanes. But the other three partners were not convinced. Again four of them started looking for that out-of-the-box idea, that would be innovative and unique.

At last, the four coincided on a single topic, i.e. music. Today, music streaming services, as well as wireless speakers and headphones, are quite common, but at that time, the concept of the wireless system had not even born. In fact, the music systems came with a mesh of cables, and when anyone wanted to connect the speakers in the different rooms, through a same music system, there was no choice other than drilling their walls to pass the wires through it.

So this was it. The idea was to create a music system, that could play the same music in different rooms without connecting any wires using the internet. But since there was no such existing technology at that time, despite being a unique idea, it did not seem feasible, too. Still, since all the four partners liked the idea, they all started working on the same.

Since the four had been successful entrepreneurs in the past, they had connections and the skills to draw the investments. They also started employing some skilled people for the manufacturing of their dream project. Initially, they opened an office above a restaurant called El Paseo in Santa Barbara and started Sonos in 2002.

The focus of the team was to create a system that was easy to install and would be able to work through cross-technology integration, but this increased the complexity for the designers and the developers. They chose Linux as the basic platform, but the operating system needed drivers for audio, wireless and others, to work with the new music system. So the founders decided to create those drivers.

Finally, in 2003, the company was ready with the design and prototype of its first product. John MacFarlane demonstrated the prototype at the Consumer Electronics Show, in 2004, where it won the “Best of Audio” award. It was the first wireless music system. The company launched the system, naming its Digital Music System, in 2005. It was the combination of smart speakers and a remote. People welcomed the system with open arms, and they loved it. The reviews for the system gave positive points to its design, reliability, and great sound.

It is clear that MacFarlane thought ahead of time, and this way, he created the systems capable of receiving the new upgrades. The same year, Sonos launched the Digital Music System, it introduced a new amplifier, i.e. ZP100 amplifier, for it. The company also announced to make those music systems available for the U.K. citizens too.

With the launch of the iPhone, in 2007, the company launched its app, that enabled the iPhone to become the controller for its Digital Music System. In 2011, the company launched another app for Android users.

In 2009, the company released its much cheaper, 400 dollars, PLAY:5, all-in-one smart speaker. The continuous updates and improvements in the music systems made the company one of the leaders in the market, and its products popular worldwide. In 2011, the company added Sirius XM and Spotify to its catalogue. In 2012, the company upgraded its speakers with Amazon Cloud Player compatibility, following a collaboration with Tencent, through which it added the QQ Music to its catalogue. Currently, the music systems from Sonos support Apple Music as well as music from other popular streaming services including Spotify.

Since its inception, Sonos has been introducing the world with the innovative music products and is the pioneer in the wireless music streaming technology. The company and its story has been an inspiration for every aspiring entrepreneur, which not only tells them to be successful, but also tell them to prioritize quality for long-term success.