Saturday, August 30, 2014

Entrepreneurs on Indian Digital Landscape -6.0

Indian e-commerce is projected to explode from $10 billion to $43 billion in the next five years, according to Nomura's India Internet Report last month. There are 11 categories, and within them 42 players, that are poised to shape this blazing path.


The Differentiators -HYPER LOCAL



Even as e-tailing explodes, by 2020, 97% of the estimated retail sales of `62,40,000 crore will still happen off line, says Technopak. A large percentage will be made by small shops and establishments. Platforms like Just Dial, Findable, PriceBaba and Zopper are looking to bring them online in multiple ways.BookMyShow is doing the same with ticket bookings in arts and entertainment.

Just Dial, the largest local-search player with revenues of `561 crore in 2013-14, extended into transactions this January, enabling services like doctor appointments and flower deliveries. This week, it will venture into products. “Transaction part will be our focus in the near future,“ says founder and CEO VSS Mani.
Zopper and PriceBaba are also expanding quickly. India has 100-120 million internet users, but less than 5 million have shopped online. Such shoppers are referred to as ROPOs (research online, purchase offline). With more smartphones and data connections, their numbers are expected to increase.

Friday, August 29, 2014

Entrepreneurs on Indian Digital Landscape - 5.0

Indian e-commerce is projected to explode from $10 billion to $43 billion in the next five years, according to Nomura's India Internet Report last month. There are 11 categories, and within them 42 players, that are poised to shape this blazing path.


With an estimated market of $350-400 billion, the grocery segment is larger than anything else. “What is seductive about the grocery segment is the high frequency of transactions,“ says Rehan Yar Khan, founder of Orios Venture Partners.

It's also challenging. One needs to build hyper-local sourcing, warehouses and supply chain to ensure fresh products.Hence, expansion across regions is staggered. The exception is BigBasket, which is in three cities. 

Online players stock 12,00013,000 products, against 400-500 by kirana stores. But, “logistics is a challenge in terms of timing, order sizes and the large inventory,“ says Vipul Parikh, co-founder and CFO, BigBasket.

Meet Teenage Entrepreneurs !


Call them India's Restless Teenage Inc.Some are still in high school, some barely out of it, and they are into fascinating ventures -a transaction platform for bitcoins, applications for Google Glass, and more. They are even mentoring older entrepreneurs on technology and business.
Take Kshitij Kumar, 18, who has just finished class 12 from Khaitan Public School in Delhi, and is heading to the University of Illinois for a degree in business and computer science. He started a magic tricks tutorial portal called Horizonmagic.com when he was 10. Four years ago, he started a software firm called Blix that created products, including Snappy , that allows users to covert pictures into any format, and Mathomatic, a free math problem solving tool.

Now he's working on developing an app called Getcaption.io for Google Glass.“If you are talking to someone whose language you do not understand, the app will show you, on the glass, the translation of what is being said in a language that you understand ­ like subtitles in a movie,“ Kumar says. It's still work in progress, and currently offers translated subtitles only in English. The app can also take pictures of, say , each of three people in a conversation, and lay out the entire conversation in a Whatsapp-like format.

Joel John, 19, has just joined Symbiosis University in Pune for a Bachelor's in business administration.People call him a bitcoins guru. “There's nothing that he does not know about bitcoins,“ says Brij Bhasin of GSF, a startup accelerator and investor that has a programme called High School Geeks that not only helps children like John and Kumar to build their businesses, but also uses them to educate their older entrepreneur members.

When John was 15, he started a server rental business for gamers, and then another that allowed people who took surveys to, say, read a book for free online. “In these stints, I developed an interest in payment processing. I began to research the area, and delved into bitcoins. I thought that with bitcoins, one could bring down remittance charges to a fraction of what money transfer companies charge.It would even allow, say a farmer in Mizoram with no registered business and no bank account, to do business with someone in the US,“ John says. Alongside his Symbiosis course, John is now busy building a bitcoin transaction platform that he hopes the world will do business on one day .

Even about a decade ago, kids with such accomplishments in business were a rarity. In 2000, Suhas Gopinath, then 16, established a web design company in Bangalore and was celebrated as the world's youngest CEO. But there was just the one Suhas Gopinath. Today you see them all over, thanks to the encouragement by parents, schools, the bustling startup environment, and technology platforms that allow for easy discoverability of talent.
Sharad Sharma, co-founder of software product association iSpirt, narrates a story about a parent who was worried about his son's performance at school, and wanted Sharma to guide him. “I reluctantly agreed and then I found that the kid, Raghav Sood, had already developed several Android apps, had written a book on building an augmented reality application that had been published by Springer (an international publisher of tech and science books). And I wondered if the parent was mocking me. Who was I to guide a kid like that!“ he says. Sharma attributes the phenomenon of early-age accomplishments partly to the mobile internet. “It is so enabling. You can do programming from anywhere.Also, these technologies have made discovering a Ramanujan so much easier. Ramanujan (the brilliant mathematician Srinivasa Ramanujan who died in 1920) was recognized only because of a letter he sent to Hardy (English mathematician GH Hardy),“ he says.
Organizations like GSF are also beginning to actively engage with this segment. “I got hands-on experience on how to scale a business and got access to GSF's network of mentors,“ says Gurgaonbased Gautam Gupta, who at 13 co-developed a social media sharing plugin called SexyBookmarks that was later acquired by Shareaholic. He has just finished school from Amity International and is heading to the University of Waterloo, Canada, for a course in software engineering.

Another GSF high-school geek is Anmol Maini, who built a robotic arm at school and now is envisioning movable walkways in cities that can obviate the need for cars.Microsoft has a student partner programme in India, and Pratik Mohapatra, 16, an 11th class student of National Public School, Bangalore, is its youngest partner. Mohapatra has developed multiple apps for Microsoft and Google, and has won several competitions, including one of Microsoft's recently that entitles him to a trip to watch the US Formula 1 Grand Prix.
“These kids have a good sense of apps, technology, about how younger people use them. We learn as much from them as they learn from us,“ 



Wednesday, August 27, 2014

Entrepreneurs on Indian Digital Landscape - 4.0

Indian e-commerce is projected to explode from $10 billion to $43 billion in the next five years, according to Nomura's India Internet Report last month. There are 11 categories, and within them 42 players, that are poised to shape this blazing path.

FURNITURE
Furniture is tipped to become the third largest segment in ecommerce, after electronics and fashion/lifestyle. The value of goods sold by leading players is on course to increase 3-4 times this fiscal.

What makes furniture an interesting category, says Niren Shah, managing director at Norwest Venture Partners India, is that it's a $15-20 billion market but consumers don't have many offline choices.
Pepperfry and Urban Ladder are the leaders, the latter recording average ticket sizes of `18,000-20,000. Among marketplaces, Snapdeal has launched, and Flipkart and Amazon are exploring. But they might not find it easy, given that existing players took nearly two years to perfect logistics and supplies.“Furniture is different from all other categories,“ says Ashish Goel, founder & CEO of Urban Ladder. “Players need to build a specialised supply chain and also help in building the manufacturer ecosystem.“ Similarly, Pepperfry is working with manufacturers to build furniture that can be assembled on delivery. The pieces of this segment are falling in place.

Monday, August 25, 2014

Entrepreneurs on Indian Digital Landscape - 3.0

Indian e-commerce is projected to explode from $10 billion to $43 billion in the next five years, according to Nomura's India Internet Report last month. There are 11 categories, and within them 42 players, that are poised to shape this blazing path.

Fashion


After electronics, fashion and lifestyle is the largest category in online retail, with a 25% share. But unlike electronics, it is more the domain of specialists than marketplaces. Myntra, part of Flipkart, and Jabong are the leaders, competing fiercely with discounts and for exclusive brand partnerships.


Myntra, which is targeting sales of `2,000 crore this fiscal, has raced ahead by launching several private labels, including Roadster and Dressberry. While external brands give a margin of up to 35%, in-house labels go up to 60%. Jabong, which has exclusive partnerships with international brands and designers, is also lining up its own labels.
Then, there are web-only brands like Fab Alley, Zovi and Yepme. And, lastly, there are the multi-category players.Large players could drive acquisitions. “Don't be surprised, with the advent of online players like Asos and large Chinese players coming into India,“ says Sudhir Sethi, founder-chairman of early-stage venture fund IDG Ventures India. “These players would not like to start ground-up but will look for an acquisition to be the base for their India entry.“

Saturday, August 23, 2014

Entrepreneurs on Indian Digital Landscape - 2.0

Indian e-commerce is projected to explode from $10 billion to $43 billion in the next five years, according to Nomura's India Internet Report last month. There are 11 categories, and within them 42 players, that are poised to shape this blazing path.

TRAVEL
If the multi-product players have the largest share of eyeballs, the travel portals have the wallet. At around $8 billion, online travel accounted for 70% of the overall Indian e-commerce market in 2013, according to IAMAI.

Three shifts are underway. One, with air tickets becoming a staple, travel portals are turning their focus to hotel bookings and travel packages. “Online penetration (of hotel bookings) is only around 7%,“ says a recent Nomura research report.“Commissions paid by hotels are nearly 3x those in the air (ticket) segment.“

Two, there's a growing emphasis on smartphone traffic and applications.“Mobile is the perfect channel for a travel company to provide real value to the customer and create higher engagement by enabling an easy travel-booking experience,“ says Deep Kalra, founder & group CEO of Makemytrip, the largest online travel agency. Three, the segment has seen early signs of consolidation.

Every Thing is fair in an Entrepreneurial Journey ?


With more and more people using the Right To Information Act to ensure government redresses their grievances, a set of new entrepreneurs have emerged to tap the market by starting ventures that help RTI applicants to file applications and also follow it up.The online apps offer services like filing application, tracking it and filing complaint with the information commission hasslefree. These ventures which started a few years back are fast gaining popularity.

All that you have to do it is submit personal details like name, contact number, address and queries online. Thereafter, a team of experts will work on the requirement and frame the questions as per the RTI Act to minimise possibility of its rejection and post it to the concerned public authority. Most of these agencies charge anything between Rs 75 to 150 per application. They also provide personal tracking number to track the application until its disposal.

As per the RTI act, a citizen can file an application in a prescribed format for seeking information from any public authority by paying a Rs 10. However, due to lack of awareness, people often seek assistance of lawyers and RTI activists. While the Union government has launched an online portal for filing RTIs with certain central government departments, no such facility is available for state government departments. Nevertheless, last year, about 50 lakh RTI applications were filed across the country. Bangalore based OnlineRTI, which claims to have received about 33,450 RTI applications since its formation last year, is run by a team of 14 professionals. “Since this is the only tool for many to resolve their problems such as passport delay, land dispute, pension, provident fund refund and others, we see a huge demand for our services,“ said Pradeep Bhatt, an IITian and cofounder of the portal. The portal expects to receive one million applications in coming three years, he added.

Many other portals are providing similar services. An online app called RTINation.com which charges Rs 150 per application claims to have filed over 10,000 applications. Similarly, another online portal RTIanonymous allows applicant to file applications anonymously.
There are also portals which provide free services. For instance, RTIindia.org run by Hyderabad based RTI expert CJ Karira provides a platform for RTI applicants to seek assistance and discussing happenings in the transparency law. “About 150 members are signing up every week and at present we have more than 4lakh members,“ said Karira.

Yet another non-profit venture ­ govwatch launched on this Independence Day intends to help people who want to file anonymous public interest RTI on issues like black money, benami property transactions or report corporate malpractice. “At present we are running the site on internal fund but as we grow big in future, we would be looking for donations to expand our operations,“ said Manan Pandya, a Bangalore based IT professional and founder of govwatch.in.

Thursday, August 21, 2014

Entrepreneurs on Indian Digital Landscape - 1.0

Indian e-commerce is projected to explode from $10 billion to $43 billion in the next five years, according to Nomura's India Internet Report last month. There are 11 categories, and within them 42 players, that are poised to shape this blazing path.

The Bulge Bracket MARKETPLACE


The multi-category segment is on fire this year. The largest pie of the online retail ecosystem is drawing the maximum risk capital and eyeballs.The top three players -Flipkart, Snapdeal and Amazon -are expected to do $4 billion in sales this fiscal.


“Indians are horizontal bazaar shoppers and don't have deep vertical buying experience offline in most categories,“ says Suvir Sujan, co-founder of Nexus Venture Partners, an early investor in Snapdeal.

Today, all multi-category players are on the inventory-less marketplace model. They are all investing heavily in warehouses and delivery.They are making acquisitions. “You will see us do some very interesting and strategic acquisitions very soon,“ says Kunal Bahl, cofounder and CEO of Snapdeal.

VC firm Accel Partners expects the product e-tailing market to expand from $2 billion in 2013 to $8.5 billion in 2016. And, for now, the focus is more on growth and less on profitability.