The business model of Groww
April of 2021 witnessed unprecedented funding in the Indian startup ecosystem. In less than a week, six companies landed large sums of money. This funding round led to multiple companies identified as Unicorns. Groww was one of these companies which had a significant funding round. It is an online discount broker with a simple pricing model. Groww, a 4-year-old company is challenging established businesses to simplify the business model. Let’s look at what Groww has achieved so far and how they challenged the status quo.
Idea behind Groww
Udaan is a successful example of a business started by ex-Flipkart employees and is helping small businesses grow. Groww is yet another company that comes from ex-Flipkart employees. Lalit Keshre and Harsh Jain; both worked in the product management vertical at Flipkart. They both had prior experience in entrepreneurship. Their earlier ventures entrepreneur were not successful. But, their learnings would help them in their next venture. Neeraj Singh, a software engineer, and Ishan Bansal working in the growth team joined them. Together they formed a unit that had experience across various business functions.
Continue reading How Groww is helping Indians in Wealth creation?
Plans behind China’s digital currency
Covid-19 has been the accelerator for digital transformation at many organizations. It has forced companies to relook at their business models. Fear of contagion has made handling physical cashless desirable. The central bank-issued currency notes have also come under the lens and might just get a digital makeover. China has launched its own digital currency called eYuan. Globally, there is a lot of innovation at work on the currency front. Do we need so much innovation in the presently stable form of currency? Is covid the only reason for the rush for digitizing currency notes? Let us find out.
History of Currency
Before we jump into recent innovations, let us look at a bit of the history of currency. The history of exchanges and trades dates back to around 9000 BC. Products or services were exchanged for other products or services under the barter system. The barter system was first recorded in Egypt. In 1100 BC, the Chinese invented casts of bronze, a medium for exchanging goods. This was progress from the existing barter system.
Continue reading Why are Central banks rushing for Digital Currency?
Transferwise has been in the news a lot these days. They are becoming Wise; I meant they are renaming their company as Wise. (Further, will use Transferwise or Wise alternatively to address the same company). They are also planning to come up with their IPOs. Founders of the company have launched their investment fund (not a VC fund). Wise has been admired and been talked about a lot. After all, their business has been a disruptor of many existing businesses. As the name suggests, Wise is in the money transfer business, which many companies do. How exactly did transferwise make an impact globally with their decade-old business? Let us find out.
Pre Transferwise era
Kristo Käärmann, an Estonian, was working as a management consultant at Deloitte. He had to pay back his mortgage in Estonia and had to transfer money from Britain to Estonia. He had the means to transfer funds. However, almost all means were expensive. Conversion from pound to euro and transfer fee took away 5% of the total amount. If you had to transfer 100000, 5% of this amount which is 5,000 bucks, would be deducted as transfer fees. This pinched Käärmann. He did some research and found out that many people face a similar problem. During remittances to the home nation, a good part of the transfer amount was taken away by the financial institutions. Since there is no single currency globally, the conversion is inevitable, and so are the charges.
Käärmann with Taavet Hinrikus (another Estonian), who was the first employee of Skype, decided to address this problem through their venture Transferwise. They decided to overhaul the cross-border transfer industry. The money transfer industry was about to witness disruption.
Continue reading Transferwise – How an ancient system helped disrupt new age business
Recently BharatPe had a funding round of $108 million, valuing the company at $900 Million. Indian Markets already have tons of payment gateways and payment processors. BharatPe made a dent in less than 2 years in a payment market, which seemed saturated already. BharatPe is now a soonicorn (soon to be a unicorn) company. Achieving this feat in about 2 years is a massive success in itself. So what exactly does BharatPe do and how BharatPe is changing the Indian payments landscape; let us find out.
Founder of BharatPe
Ashneer Grover, an IIT Delhi, and IIM-A pass out, started his professional career as an Investment banker at Kotak. While working in investment banking, he had a keen eye on the Indian startup evolution. To get a feel of how startups work, he decided to join Grofers, where he worked as Chief Financial Officer. His last venture as business head at PC jewelers helped him gain insights on the sales aspect. During this tenure, he always had the ambition to create his own startup.
Continue reading How BharatPe’s Merchant focused business strategy is reaping rewards
Will Khatabook be India’s Google or Whatsapp moment?
Local Kirana stores (also termed as Mom and Pop Stores) in India are witnessing a major shift in the trade. Digitization wave has reached these Kirana stores too, and Digital Kirana is becoming the next big thing. One of the common problems faced by these Kirana stores is bookkeeping and account management. Khatabook is a toddler in the bookkeeping space which, has seen phenomenal success. So far, Khatabook has scaled to transactions of $200mn per day, that too in less than 2 years of operation. Let’s look at the business story of Khatabook.
The Backdrop of Digital Kirana
Continue reading Will Khatabook be India’s Digital Bahi khata?