B9 Beverages Ltd, which owns craft beer brand Bira 91, is reportedly planning for an initial public offering in 2026. The startup claims to be the fourth-largest beer company in India, sitting at a market share of 5% across key regions.

Citing people close to the development, ET reported that B9 Beverages has tapped investment banking firm Morgan Stanley for its pre-IPO process.

“We are planning our IPO in 2026. This is contingent on meeting operating milestones in the business,” B9 Beverages’ CEO Ankur Jain was quoted as saying in the report.

Last month, the beer brand raised $25 Mn (about INR 208 Cr) via external commercial borrowing (ECB) from its existing backer Kirin Holdings.

Founded in 2015 by Jain, B9 Beverages is a craft beer brand that is known for its beer, ciders and seltzers. B9 Beverages counts Peak XV Partners, Sofina and DS Group among its marquee investors, and has acquired $449 Mn in funding so far.

Bira 91 claims to sell its beer across 550 towns and cities, spanning over 18 countries. The startup claims to be the fourth-largest beer company in India.

Gearing up for its initial public offering (IPO), craft beer maker Bira 91 became a public entity, in December 2022, while also renaming itself as B9 Beverages Ltd, as per its regulatory filings.

The beer company’s net loss rose 12% to INR 445.4 Cr in the financial year 2022-23 (FY23), from INR 396 Cr in the previous fiscal year, burdened by higher expenses and excise duty.

The post Bira 91 Maker Plans To Go Public In 2026 appeared first on Inc42 Media.

The emergence of the metaverse has sparked a significant transformation in digital interaction and commerce, offering an immersive, interconnected virtual space where users can socialise, explore, and transact. 

Recent projections by Accenture suggest substantial growth, with metaverse experiences and commerce expected to contribute significantly to company revenues by 2025. This growth underscores the immense potential of the metaverse, driven by a strong consumer interest in embracing virtual experiences.

As companies and brands explore the 3D internet, they are increasingly interested in harnessing its potential to provide engaging, enriched experiences beyond traditional digital platforms. 

However, success relies not only on creating compelling experiences but also on effectively measuring and quantifying success. Here are the key metrics crucial for achieving return on investment (ROI) in the metaverse.

User Engagement

User engagement is at the core of success in the metaverse, reflecting the depth and frequency of user interaction within virtual environments. According to EY, a significant portion of consumers are expected to spend considerable time in the metaverse by 2026, indicating a vast opportunity for brands to capture and retain user attention. 

Key metrics such as active users, session duration, and user interactions provide valuable insights into the popularity, retention, and vitality of virtual experiences.

Retention Rate

Retention rate serves as a key metric for evaluating a metaverse platform’s ability to maintain an active and engaged user base over time. Strategies such as regular content updates and community engagement play a vital role in boosting retention rates and ensuring the long-term success of virtual experiences.

Capitalising On The Virtual Economy

The metaverse offers a range of monetisation opportunities, from virtual goods sales to advertising and subscriptions. Effectively leveraging these models requires a careful balance between enhancing user engagement and generating revenue, with strategies tailored to the unique dynamics of the virtual landscape.

Building Community And Connection

Social interaction is fundamental to success in the metaverse, enabling users to forge meaningful connections and share experiences in ways that mirror real-world interactions. Metrics such as social connections, user-generated content creation, and community building provide insights into the strength and vibrancy of the virtual social ecosystem.

Sessions

The number of user sessions serves as a critical indicator of a metaverse platform’s effectiveness in attracting and retaining users. High session counts translate to increased reach and engagement, presenting valuable opportunities for brands to showcase their products and services to a broader audience.

Other Key Factors

In addition to these metrics, other factors contribute significantly to success in the metaverse. Innovation and differentiation play a crucial role, as the ability to innovate and offer unique experiences sets brands apart in the competitive metaverse landscape. Whether through cutting-edge technology or creative storytelling, innovation drives user engagement and builds brand loyalty. 

Accessibility and inclusivity are also essential considerations, as ensuring accessibility and inclusivity within the metaverse is crucial for reaching a diverse audience and fostering a sense of belonging. Brands that prioritise accessibility initiatives and embrace diversity are better positioned to resonate with users and build strong communities. 

Moreover, security and trust are paramount for user adoption and retention in the metaverse. Building trust and ensuring security within the virtual environment is crucial. Implementing robust security measures and transparent data policies instil confidence in users, building a safe and enjoyable virtual experience. These factors, along with the core metrics discussed, collectively contribute to the overall success and sustainability of brands and organisations in the ever-evolving metaverse landscape.

Conclusion

While we are still in the early stages of consumer engagement with the metaverse, valuable lessons are already being learned from companies that have experienced initial success. In many ways, the fundamental principles of marketing in the metaverse mirror those of creating authentic and compelling brand experiences in the physical world. However, the application of these principles in the metaverse presents unique challenges and opportunities.

Just as strategies for driving value online have evolved, effective consumer engagement in the metaverse demands its own evolving approach. It requires companies to rethink traditional methods and embrace innovative strategies tailored to the virtual environment.

Looking ahead, companies must recognise the strategic implications of the metaverse across various aspects of their operations, including sales, operations, production, research and development, and human resources. Those organisations and brands that take the initiative to plan and execute now will be best positioned to reap the benefits of the metaverse’s future.

The post Metaverse Metrics: Measuring Success In The Virtual Retail Landscape appeared first on Inc42 Media.

iPhones pushed over 35% surge in India’s mobile phone exports to a record $15 Bn in FY24. 

As per the government data, Cupertino-based Apple accounted for 65% or about $10 Bn of mobile phone exports from the country during the year in review, which is double the $5 Bn worth exports noted in the previous fiscal year.

As per the data, the country’s mobile manufacturing sector has generated over 1.2 Mn jobs as it manufactured products worth $50 Bn in FY24, ET reported. 

“We’ve had great success in mobile phone production,” IT minister Ashwini Vaishnaw told the publication. According to the minister, the pace of growth and exports is expected to accelerate as more global companies start production in the country. 

The data revealed by the commerce ministry further revealed that export of electronic items jumped almost 24% to $29.12 Bn in FY24 against $23.55 Bn in the previous fiscal year. 

The data seemingly is in line with the US-based smartphone maker’s India goals and growth plans. As Apple plans to diversify the production base given the geopolitical tensions, its vendors are also ramping up production units in India. 

Last year in December, Apple was reportedly planning to manufacture more than 50 Mn iPhones in India annually. As per media reports, it aims to meet this target in the next two to three years.

This was followed by its vendor Foxconn’s infusion of another INR 13,911 Cr in Karnataka, in a further boost to the tech giant’s plan. Karnataka has also approved 14 projects worth INR 34,115 Cr with the potential to generate 13,308 jobs in the state. Of these, 10 are new projects worth INR 19,452.40 Cr, while the remaining four are additional ones with investments worth INR 14,662.59 Cr, according to a statement.

In addition, Wistron’s iPhone manufacturing unit which was acquired by Tata Group last year is also mulling production soon. 

The post iPhones Pushed Over 35% Surge In India’s Mobile Phone Exports In FY24 appeared first on Inc42 Media.

The Origin Story

Diamonds are forever, but the way these precious stones are mined takes a toll on the environment and exploits the people involved in diamond mining. Natural stones are extremely expensive and shoppers with little knowledge of gemstones often pay more than the fair price for inferior quality. A veteran in the diamond industry with more than 19 years of experience, Parag Agrawal wanted to usher in a much-needed change and sell lab-grown diamonds (LGD) and diamond-like moissanite as sustainable and affordable options. So, he joined forces with brother Saurabh Agrawal (a computer engineer and a seasoned entrepreneur with more than 20 years of experience in technology and the startup space) to launch Fiona, the first D2C brand offering LGD as prized possessions. 

The Differentiator

Fiona offers a sparkling range of natural and lab-grown/sustainable diamonds and moissanite suitable for every pocket and fit for every occasion. It crafts unique pieces and made-to-order jewellery in modern and vintage designs at its Surat unit, ensuring resale value and providing buyback options. Among its flagship products are a wide array of rings, earrings and pendants. To build trust, the brand is transparent about its eco-friendly policies and helps raise consumer awareness about sustainable diamonds and their minimal environmental impact. 

The Growth

The brand believes that the LGD retail market will soon see a huge growth opportunity as the technology is now available everywhere, and very few retailers offer gem-quality sustainable diamonds for fear of losing the market for expensive natural diamonds. Fiona sells its products on Nykaa and through its website and flagship stores in Mumbai, Delhi and Bengaluru. It is also present at 10 Shoppers Stop outlets in Mumbai, Bengaluru, Hyderabad, Kolkata, Indore and Lucknow. 

Fiona adopted a digital-first strategy post-pandemic, focussing on content-driven marketing, social media and online search for sales and lead generation. These initiatives have increased footfall online and offline, and the brand currently has 81K followers on Facebook and 51K on Instagram. It has also started e-auctioning to drive sales and saw an approximately 21% jump in revenue in FY23. 

What’s Next

The jewellery brand will grow its offerings and expand distribution in 2024 to accelerate sales. It wants to emerge as a global brand for bridal jewellery in lab-grown diamonds by 2025, thus creating a green impact on people and the planet.

The post Fiona Adds A Green Touch To Sparklers With Lab-Grown Diamonds, Captivates New-Gen Shoppers appeared first on Inc42 Media.

As the third largest contributor to the Indian economy, growth of Indian retail is deeply tied with the ambitions of the country. It stands at $500 Bn today, and continues to grow. 

While much of the technology development has gone into the growth of online retail which contributes 8% of the total retail market, real growth is being achieved in the offline world. Think Reliance Retail. Think Tata’s Zudio. Think Lenskart. 

For modern companies, online growth comes at a cost. What they have learnt is that for profitable growth, they need to step out of the online world – to the sizable number of consumers who shop in malls, high streets in major metros, to new centres in tier 1, tier 2 or tier 3 cities, which is booming with increased disposable incomes. 

Navigating the world of offline growth isn’t easy. It’s just a different business model and the rules of online growth either do not apply or do not translate.

The Next Era Of India’s Retail Growth

The introduction of technology and India becoming the world’s second largest user base of the Internet has helped propel the country’s retail sector to new heights. Cheap data and widespread connectivity have fueled the growth of ecommerce platforms and mobile apps, fostering online shopping habits thus far. 

The online retail sector has expanded by $8-12 Bn annually since 2020, with categories like fashion, beauty and personal care, electronics and food leading the way. 

Despite the rapid growth of online retail in India, online penetration is still only 8% with 92% of retail sales happening offline. There is a lack of trust when making an online purchase due to, in some part, lack of awareness but also the uncertainty that comes with spending money on something you haven’t physically touched and felt. 

60% of Indian consumers trust physical stores more than online platforms and 80% of them value the ability to touch and feel products before buying them. 

India’s homegrown eyewear brand, Lenskart, for instance, successfully leverages offline stores to build trust by offering eye tests and consultations. While online sales still dominate its revenue, most of its customers use both online and offline channels during their purchase journey. 

The brand claims that having an omnichannel presence has helped increase their brand awareness by 50% and the customer conversion rate in stores is 30% higher as compared to online channels, the halo effect of brick and mortar. 

Lenskart’s offline expansion has been successful primarily due to its data-driven strategy for opening physical stores. Rather than depend on old school methods, which are largely subjective and prone to human bias, the brand uses data-backed insights & analysis to estimate revenue and footfall when selecting new locations. 

While Lenskart’s story exemplifies the synergy between online and offline channels, it’s not alone in recognising the untapped potential of India’s offline retail market. A growing number of brands are embracing technology and, more specifically, data-backed decision making to navigate the complexities of physical markets in Tier-II and Tier-III cities, where the data drought has been a persistent blocker. 

Technology: A Unifying Force Rather Than A Dividing Factor

While ‘expanding offline’ seems to be the buzzword for retail in 2023, the sector faces challenges such as infrastructure limitations and logistical complexities when looking to set up physical stores in tier 2 towns and beyond. 

However, data-backed decision making can significantly reduce the amount of effort and man hours required to understand these areas by filtering through potential sites using thousands of  location attributes depending on the brand and its requirements. 

This can include demographic parameters like population, age and income. Some brands also filter locations by the retail presence in the area which can be ascertained by attributes like luxury brand count, value brand count and competitor density. Most focus on commercial indicators like rents, average spending on food, affluence level and other factors to attract the ideal target consumer. 

Using data-backed insights, many online retail brands have been able to enhance and double down on their initial offline expansion plans since site selection errors are greatly reduced. Instead of standing on a corner of a street counting cars, as one business owner recounted to me, data-backed decision making is able to unlock far more relevant, accurate and predictive statistics. 

Brands are able to reduce the risk of operating in low revenue-generating areas, identify high-performing sites that could benefit from a nearby store, and understand spending patterns to make informed decisions. Data can also be used to optimise product offerings and tweak pricing strategies based on local demand and preferences. 

Street-level Data Trumps Pincode Analysis

The advantage of data-backed decision making over existing data analysis solutions is that it can give a brand street-by-street insights rather than an overarching view of which pincodes are ideal. Just because a locality like Sector-17 in Chandigarh or the Sarafa Bazaar in Indore are shopping hubs, that doesn’t necessarily mean that all corners of the market are ideal for opening a store. 

Brands are able to reduce the risk of operating in low revenue-generating areas, identify high-performing sites that could benefit from a nearby store, and understand spending patterns to make informed decisions. Data can also be used to optimise product offerings and tweak pricing strategies based on local demand and preferences

Having a more accurate method of identifying high performing locations correctly has a direct impact on a company’s bottom line. Not just because using technology makes the process more efficient, but also because high performing locations imply that the average time for a store to turn profitable is as low as possible.

Cultfit’s Cultsport, for instance, is planning on opening a new exclusive brand outlet in the country every month. According to the company, there’s untapped market potential in the lack of penetration of sports retail shops in India. Cultsport currently contributes to around one-third of Cultfit’s revenue and the company is banking on data-backed brick-and-mortar expansion to bring that up to 50%.

The paradigm shift from brands exclusively existing online to a harmonious blend of online and offline strategies marks the next era of India’s retail growth. Data-driven expansion offline expansion plans and the adoption of data-backed decisioning is emblematic of a broader trend among forward-thinking brands. It’s a tool that not only helps brands navigate the challenges of tier 2 and tier 3 markets, but also streamlines the site selection process by minimising risk and increasing efficiency. 

The reliance on technology to enable that shift is not a mere trend – it’s a transformative shift that enables brands to enter any market they choose with precision. In this new era, data-backed decisioning is proving to be a compass guiding brands towards untapped market potential. 

The goal isn’t just to grow and provide expansion opportunities, but to do so in a sustainable way that can preserve through the dynamic and ever changing habits of Indian retail.

The post How AI & Data-Backed Insights Are Changing The Pace Of Offline Retail Growth appeared first on Inc42 Media.

Kashmir-based cricket bat manufacturer Alfa Sports & Co has sought INR 500 Cr in damages in a notice sent to Sony Entertainment Television Ltd, broadcaster of Shark Tank India as well as two participants in the show.

Alfa Sports & Co has named Saad Tramboo and Hamad Tramboo, cofounders of Tramboo Sports Pvt Ltd, in its legal notice. The duo pitched on Shark Tank India’s season 3 in an episode that aired on January 30, 2024.

The notice, a copy of which has been seen by Inc42, is in relation to compensation for the damages, business loss, and mental agony caused by alleged distortion of facts by Tramboo Sports during their pitch on Shark Tank India.

Alfa Sports claimed that India’s bat manufacturing industry in general and the company, in particular, have been in the business of “lite willow making” for several years and have taken exception to on-air claims made by Tramboo Sports that they have sole manufacturing capabilities for such bats.

Fawazul Kabir, a spokesperson for the Cricket Bat Manufacturers Association of Kashmir (CBMAK), told Inc42 that Tramboo Sports cofounders source the cricket willows used to manufacture bats from Alfa Sports. But they have allegedly shown this as being their own product on Shark Tank India.

“We are going to take this case to criminal court if Sony TV and Tramboo Sports do not tender an immediate apology on national TV to hardworking cricket bat manufacturers of the valley. What was most astonishing was that Alfa Sports which was one of the vendors of Tramboo Sports was directly selling them the bats and Alfa has the invoices to show for this. This is a breach of vendor contract,” Kabir added.

The notice further stated Tramboo Sports only deals with sourcing and stocking bats and are not into manufacturing. “In reality, there are around 400 manufacturing units across the indigenous industry in the valley. Due to the false claims made by Tramboo Sports co-founders, the original manufacturer has witnessed loss in business confidence, dip in sales and his exports have taken a hit,” one portion of the notice reads.

CBMAK’s Kabir also questioned Tramboo Sports’ claims on the show about having technology to bring Kashmir willows at par with the English willows is not unique to the company. He added that this was a government initiative announced by the former J&K Chief Minister Mufti Mohammad Sayeed.

“In fact, willow storage facilities and technology clusters were established in Kashmir several years ago. This is not a unique proposition of Tramboo Sports,” Kabir added.

The cofounders of Tramboo Sports, who hail from a noted Kashmiri business family, claimed on air that the manufacturing and storage facility is owned by their grandfather.

The company got fair recognition on Shark Tank India with all the judges willing to invest in the company. Lenskart cofounder and CEO Peyush Bansal and boAt cofounder and CMO Aman Gupta together committed to investing INR 30 Lakh for 4% equity stake in the company.

Commenting on the issue, Hamaad Tramboo said in a statement that Tramboo Sports never asserted itself as the sole manufacturer in the industry and clearly mentioned that there are over 300 manufacturing units in Kashmir.

Additionally, as a direct-to-consumer (D2C) brand, Tramboo Sports said it currently does not possess any manufacturing facility and operates through contract manufacturing. However, the company conducts the ‘seasoning’ process in its own facility, the statement said.

Highlighting the challenge of condensing an hour-long video into a 12-minute segment for television, Hamaad Tramboo said that several aspects favourable to Kashmiri manufacturers were not fully highlighted during the programme.

“We also request everyone not to fall for baseless allegations spread by few for their own benefit and fame, (and to) rather rejoice the moment of Kashmir Willow and our industry getting… recognition,” the statement added.

The post Kashmir Bat Makers Look To Sue Over Shark Tank India Claims; Seek INR 500 Cr In Damages appeared first on Inc42 Media.

The direct-to-consumer (D2C) model has significantly disrupted the retail landscape in India over the last decade. D2C brands have leveraged the power of the internet and social media to build their brands, acquire customers, and deliver products, bypassing traditional retail channels. 

Following rapid initial growth through online channels, many D2C brands are now expanding into offline retail to drive further growth.

The Rise Of D2C In India

The D2C wave in India has been nothing short of revolutionary. According to industry estimates, over 800 D2C brands are currently operating in India, with the market predicted to reach $60 Bn by FY27. 

The D2C model has enabled small startups to quickly build brands by eliminating intermediaries and connecting directly with customers. These brands have found product-market fit through social media and targeted digital marketing before investing in manufacturing and supply chains. 

Low customer acquisition costs and direct customer feedback loops have fueled rapid iteration and innovation.

Factors Driving Offline Expansion

While the D2C model has helped new brands scale rapidly online, expanding into offline channels has become imperative for the next growth stage. Key factors pushing D2C brands toward omnichannel models include:

• Access and Experience: Offline stores enable customers to touch, feel, and experience products first-hand before purchasing, building more trust and comfort, especially in categories like apparel, cosmetics, and food.
• Mainstream Adoption: Digital-native consumers were early adopters of D2C brands. However, offline retail is critical for appealing to mainstream audiences.
• Cost Efficiencies: Establishing offline distribution networks leads to cost efficiencies compared to pure e-commerce models, which rely heavily on last-mile delivery.
• Market Penetration: Online sales are predominantly concentrated in Tier 1 and 2 cities. Offline retail is crucial for deeper penetration into Tier 3-6 towns and rural markets.

D2C Brands Taking The Omni-Channel Plunge

The D2C phenomenon in India has fueled rapid growth for startups and small brands, utilising digital channels and social media for brand building and customer acquisition. 

Many D2C brands are now venturing into offline retail, forming partnerships with established retail chains and embracing an omnichannel approach for sustained growth beyond their initial digital-savvy customer base. This strategy is essential for penetrating mainstream consumer segments nationwide. 

Offline stores provide customers with a tactile product experience, fostering trust and familiarity. Retail partnerships add credibility through distribution in mainstream chains, while expansion into smaller cities taps into new demographics. 

Despite the continued impact of digital and social commerce, the modern consumer journey integrates online discovery with offline decision-making. Therefore, D2C brands must strategically integrate an offline presence across locations to offer a blend of digital convenience and physical experience, potentially securing significant success in this omnichannel landscape.

Key Strategies For Offline Expansion

For D2C brands venturing into offline retail, focusing strategically on customer experience rather than immediate scale is paramount. Initiatives include:

• Establishing flagship stores in metro cities to enhance brand credibility.
• Offering curated product assortments tailored to local preferences.
• Investing in professional visual merchandising for an optimal in-store experience.

Seeking external retail expertise for design and branding is advisable, avoiding sole reliance on in-house teams. Continuous refinement is key, achieved through collecting and analysing customer feedback using store staff or digital means. 

Additionally, building partnerships with modern trade channels should involve pilot testing in select stores before scaling distribution, enabling joint evaluations of product performance.

Opportunities Galore For Digital-Forward Brands

While online channels will continue driving growth, omni-channel expansion unlocks many new opportunities for D2C brands to scale sustainably. Offline retail presence opens doors for testing new product categories, targeted geographic launches, entry into enterprise/B2B sales, and building more targeted, insight-driven marketing campaigns. 

Instead of viewing offline retail as an afterthought, D2C brands must plan channel integration from the early stages based on their long-term business vision. Companies that seamlessly deliver connected online and offline shopping experiences will redefine consumer value in a web-influenced but offline-focused Indian retail ecosystem. 

The D2C revolution has already transformed digital commerce in India. Now, it’s time for these digital-first brands to transform offline retail by infusing data-driven precision into physical retail operations.

Conclusion

While the D2C wave in India has been built on the backbone of digital commerce, expansion into offline channels has become imperative for sustainability and driving the next growth phase. 

Online penetration remains low beyond Tier 1-2 Indian cities. Before purchasing, mainstream consumers still prefer to ‘touch and feel’ products, especially in categories like fashion, beauty, and food. 

D2C brands are recognising this gap and making strides in offline retail, opening flagship brand stores and forming alliances with established retail chains. Companies that finely balance physical and digital presence through seamless omnichannel strategies stand to win in the long run. 

Thus, breaking digital boundaries through methodical offline expansion while retaining digital-first agility will pave the way for the profitable growth of D2C brands within the evolving Indian retail landscape.

The post D2C Brands Redefining Retail: Breaking Digital Chains With Offline Expansion appeared first on Inc42 Media.

Panasonic Life Solutions India (PLSIND) and Panasonic Corporation (PC) in collaboration with micro VC fund 100X.VC have selected 12 startups as part of accelerator programme Panasonic Ignition.

The accelerator programme was launched in October to support young entrepreneurs and provide them with investment, masterclasses, expert mentorship, product strategy and growth plans. 

The selected startups will participate in the accelerator programme over the next three months and will receive comprehensive support from both Panasonic and the 100X.VC teams. 

In addition to financial resources, the startups will also receive support in the form of mentorship sessions and guidance to complete their project, said a statement on Wednesday.

Commenting on the programme, Manish Misra, chief innovation officer at Panasonic Life Solutions India, said, “This initiative underscores our commitment to fostering groundbreaking technologies and solutions that address the evolving needs of commercial spaces while contributing to a sustainable future.”

The selected startups are:

• SustLabs – Based out of Mumbai, the startup was founded by Kaushik Bose in 2016. It develops consumer IoT solutions for home energy monitoring. 
• MinionLabs – The Bengaluru-based startup was launched in 2017 by Gokul Shriniva. It has developed a product for measuring individual energy consumption in buildings.
• Clairco – Founded by Aayush Jha in 2018, the startup is headquartered in Bengaluru. It develops IoT-based smart air purification and space optimisation devices.
• Enlite – Founded in 2017 by Gaurav Bali, the Mumbai-based startup provides an AI-enabled wireless building management system. 
• Zodhya – Launched in 2017 by Rohith Pallerla, the Hyderabad-based startup is a provider of energy optimisation solutions for commercial spaces.
• Living Things – Based out of Mumbai, the startup was launched by Madhusudhan Naik in 2019. It provides smart control hubs for air conditioners.
• Sensiable – Launched in 2019 by Ashish Singh, the startup is headquartered in Bengaluru. It is a provider of an IoT-enabled workplace space management solution.
• Carbon Minus – The startup was launched in 2019 in Pune by Ashok Ranfive. It is a provider of cloud-based solutions for energy plant management.
• Nebeskie – The Chennai-based startup was launched by Anik Bose in 2016. It is  a provider of a SaaS, AI & IoT-powered electricity management platform.
• Quebeq Venture – Launched in 2019 by Logesh Janarthanan, the Chennai-based startup integrates a virtual power plant with proprietary energy solutions.
• Blaze – The Hyderabad-based startup was launched in 2007 by Arjun Valluri. It integrates smart sensor-based devices and IoT to deliver cost-effective and efficient device management, connectivity management, and application enablement solutions.
• Cymbeline – Launched in 2017 by Vivek Gowripeddi, the Bengaluru-based startup develops industrial IoT with diverse hardware, middleware, analytics, and cloud.

The development comes at a time when a number of companies and VC firms have been announcing accelerator and incubation programmes for startups. 

For instance, game development major Krafton launched its incubator programme called KRAFTON India Gaming Incubator to support early stage gaming startups with primary investment and mentorship. 

Earlier this month, GVFL in partnership with Brinc and Games24x7 in partnership with the Karnataka government announced accelerator programmes.

However, according to Inc42’s Indian Tech Startup Funding Report Q3 2023, for the first three quarters of 2023, the funding in Indian startups was merely more than $7 Bn against about $22 Bn during the corresponding quarters of 2022.

The post Meet The 12 Startups Part Of Panasonic’s Accelerator Programme appeared first on Inc42 Media.

Retargeting campaigns are a golden ticket for any marketer during the festive sale season. There is a myth that re-engagement during the sale season seems irrelevant as people are already buying. 

The fact is that this is the perfect time when app marketers should invest in it. During the festive season, the shoppers are ready to purchase. Thus, organic engagement skyrockets and marketers sideline the need for paid marketing. 

But, instead, marketers should focus on dedicated seasonal campaigns to capture the interest of users who stay, engage and convert.  

Retargeted Campaigns – Alarm For The Sleeping Shoppers 

Data has backed up the fact that retargeted users are highly engaged and more likely to complete a purchase.  

According to a report, there are 70% chance of a user getting converted on the retailer’s website who is shown a display ad. 

Other stats say that there are 3 times higher chances for a retargeted customer to click on your ad than a new user. 

So, How Can You Make The Most Out Festive Seasons?    

To get the best result out of a re-engagement campaign, app marketers should divide the user base into different segments: 

• Retargeting the active users to fasten the transaction processes because they showed interest in your brand or your content. They are most likely going to convert faster. 
• Retargeting the new app users to gain their trust and retain them by offering first-time user benefits.  
• Targeting the sleeping user to regain their attention and generate curiosity using exciting discounts and festive offers. 

However, there is a catch.

Amidst all the festivities, when marketers go all gaga over their ad spends to ensure their intended audience doesn’t lose interest, there are people behind the mask waiting to take advantage of this. 

Remarketing or retargeting campaigns are one of the most profitable ways for fraudsters to steal money under the nose of advertisers. They use techniques and tools like attribution hijacking, fake clicks, and fake devices to capture organic traffic and ruin the metrics for marketers.

Fraud In Retargeting Campaigns 

Retargeting and Remarketing campaigns are beneficial to capture the attention of the “intended” set of users, but it is a tricky business. There has to be a balance in how much you’re showing your ads to your re-targeted user base. 

Overdoing it might lead to annoyance among the users and they might eventually lose interest. And on top of that, the fraudsters make it worse for the marketers. 

Setting The “Good Traffic” Trap

During the festive season, people are ready to shop and marketers try to capture their attention with multiple ad exposures to convince a dormant user to take action. While increased ad frequency annoys the real users, the bots take the opportunity. 

The bots view the ads and even click on them to create an illusion for marketers that their ad campaigns are working successfully and driving engagement. Due to this illusion created by the fraudsters, the marketers allocate more budget to these re-engagement campaigns, eventually filling the pockets of the fraudsters. 

Pretending To Be The “Real-User” 

The bot activities are not limited to just inflating the ad traffic. In some cases, the bots also deliberately visit websites by hijacking the cookie data of a genuine user and pretending to be an “interested user”.  

The marketers will invest in retargeting campaigns to engage this anonymous user, assuming it to be their genuine user.  The bots keep this cycle on and the marketer spends continuously on these campaigns assuming they are targeting their dormant users. 

Stealing The Bigger “Moolah”

If a marketer thinks that to outsmart the bots, they can change the payout from clicks or impressions to something concrete like Sales, then the bots have a catch for that too. 

The bots just have to steal the last click attribution of an organic user and steal the cost per sale for a source which was eventually going to happen. 

The marketer didn’t have to pay for this install or sale as the user was going to take the action voluntarily. However, the fraudsters claim the credit for the sale falsely and commit the fraud of “organic stealing”  

This Sale Season, Take The Vigilance Route 

The festive season is the opportunity for marketers to capture a big pool of “interested users”. However, bots can turn this opportunity into a nightmare with their discreet behaviour. 

While running remarketing or retargeting campaigns, it is essential for marketers to do a check of their ad traffic and invest in campaigns fearlessly.  

The post How Marketers Can Make The Most Of Retargeting Campaigns This Festive Season? appeared first on Inc42 Media.

A few months ago, my better half ordered a handcrafted leather wallet from a D2C brand she had recently discovered. She was so excited to receive it, and when the package finally arrived, she was delighted to find a small, handwritten note tucked inside. 

The note was a simple gesture, but it made a big difference. It showed that the brand cared about her as a customer, and it made her feel special.

This personalised touch is what sets D2C brands apart from the competition. When customers feel valued and seen, they’re more likely to become loyal advocates for your brand.

You’re on the verge of greatness. You’ve found product-market fit, established ad channels, and generated revenue. But there’s still one challenge left to overcome. 

We can help. We’ve compiled a set of personalised strategies to get you there.

Surveys

Dive deep into customer insights with post-purchase surveys. Discover their origins, motivations, and aspirations, all while enhancing your brand experience. Tools like Fairing’s post-purchase surveys can be invaluable.

Email & SMS

Craft engaging, personalised content for email and SMS communications. Beyond order confirmations, unveil your brand’s backstory, mission, and values. Create a sense of community where consumers feel they’ve joined an exclusive club.

Customer Service

Lightning-fast customer service is the cornerstone of retention. Tools like Gorgias can streamline your support, ensuring timely responses that resonate with your patrons.

Returns & Exchanges

Loop Returns is your solution to seamless returns. Keep your customers content while preserving revenue through gift cards and exchanges.

Discounts

Engage with personalised discounts tailored to individual purchase behaviour. Craft messages that connect and offer a sense of exclusivity.

Surprise And Delight

Elevate your brand through surprise elements – hidden gifts or handwritten notes. Create moments that become cherished memories, fostering a community of lifelong enthusiasts.

These strategies are more than just guidelines. They are the path to brand evolution. When you personalise the customer journey, you build lasting relationships. 

Remember, success lies in optimising the post-purchase funnel and creating a world where customers feel like they are part of a story. 

As you implement these strategies, be objective and let personalisation drive your brand’s success.

The post How D2C Brands Can Elevate Customer Delight By Embracing Personalisation? appeared first on Inc42 Media.

In today’s competitive market, one should realise that the key to thriving in the landscape of D2C business lies within the treasure trove of customer data. One-size-fits-all marketing is a thing of the past; nowadays, data-driven decision-making is everything. 

Businesses may now thrive in this always-changing business environment by utilising the deep insights they can receive from their clients.

The Power Of Customer Insights

In an era where every customer interaction leaves an online trace, we have access to an unlimited wealth of data. Customer insights are what we refer to as a gold mine of knowledge on your customers’ behaviours, preferences, and comments. 

These details are obtained from several touchpoints, such as their website visits, social media interactions, previous purchases, and reviews and comments they leave.

These perceptions give you a complete picture of your customers, what they like, and what they want from your company. They go beyond basic statistics. You need to possess this knowledge to give your consumers exceptional experiences that will make them happy and fiercely devoted to you.

Enhancing The Product Development

Customer insights’ influence on product development is one of their most amazing benefits. In the past, companies like ours made product creation decisions based on gut feeling and market research. However, we now have access to a far more reliable and up-to-date source of information.

We may detect new trends and requests by examining consumer data. This information is a gold mine for staying on top of trends and producing goods that actually appeal to the target market. 

For instance, if an online clothes company notices a spike in demand for sustainable fashion goods, they may quickly broaden their selection of environmentally friendly products. With this proactive strategy, one can be sure that the brand is always responding to changing market conditions.

Personalised Marketing: A Game Changer

Nowadays, everyone in marketing is playing the game of personalisation. Customers want companies to recognise their particular demands and provide individualised experiences. Customer insights become important in this situation.

We can construct highly targeted and individualised marketing efforts by segmenting our consumer base depending on their tastes and behaviours. For instance, if we detect a certain set of clients regularly purchasing exercise equipment, we may give them tailored offers and suggestions for fitness-related items. 

This degree of personalisation enhances client loyalty while also raising conversion rates.

Optimising Customer Experience: Where Magic Happens

For direct-to-consumer success, a smooth and wonderful client experience is the pinnacle. Customer insights are a significant source of knowledge regarding problems and potential areas for change. We can improve a number of parts of the customer journey by analysing comments and data.

For instance, we can delve deeply into the data if we discover that customers frequently leave their shopping carts during checkout. Is it due to a challenging checkout form, unforeseen shipping fees, or another element? With this knowledge, we can improve checkout procedures, deal with these problems, and lower cart abandonment rates.

Customer insights also enable us to anticipate prospective problems and take proactive measures to resolve them. We can take action to enhance size guidance and lower future return rates if we discover that a specific product has a higher return rate as a result of size discrepancies.

Data-Driven Decision Making: Your North Star

The wonderful thing about customer insights is that they allow for data-driven choices in all areas of our direct-to-consumer company. Every choice may be supported by data, from pricing plans and inventory management to marketing initiatives and customer service.

For example, we may look at the data to identify why client retention rates drop. It can be brought on by heightened competition, evolving client tastes, or problems with our subscription business. We can modify our price, content strategy, or client engagement activities in light of this information.

Building Stronger Customer Loyalty: The Ultimate Goal

In the D2C landscape, customer loyalty is our holy grail. Repeat customers generate more revenue and act as brand advocates, driving new business through word-of-mouth referrals.

Customer insights play a crucial role in nurturing and retaining loyal customers. We may adapt our solutions to meet changing client demands by regularly observing customer behaviour and preferences. This proactive approach reinforces customer loyalty by demonstrating that our brand is on the ball and committed to providing value.

Additionally, customer feedback is a gold mine for enhancing our goods and services. By paying attention to them and implementing their ideas, we demonstrate to our clients that we appreciate their opinions. As a consequence, our brand and customers develop an emotional bond.

Your Journey To Data-Driven Success

In the fast-paced world of D2C commerce, relying on intuition and guesswork is a recipe for failure. Future success will be driven by data, and consumer insights will be its engine. By getting to know our customers personally, we can enhance our product offerings, create tailored marketing campaigns, enhance the customer experience, and make intelligent decisions that foster long-term development and profitability.

For D2C firms like ours, the road to success is simple: harness the power of consumer insights to survive and thrive in a cutthroat industry. The knowledge is there; it must be transformed into practical company expansion strategies that build long-lasting client relationships. It’s time to maximise the value of our data and provide the foundation for sound decision-making based on facts.  Your trip has only just begun.

The post Data-Driven Success: How To Utilise Customer Insights To Enhance D2C Strategy appeared first on Inc42 Media.

Your brand’s lifeline? The acquisition funnel. 

Get it right, and you’re soaring. Miss the mark, and well, it’s a rocky road. 

For those venturing into the D2C world, here’s your guiding light – The Essence of Effective Funnels

The Unforgettable Offer

An enticing offer shouldn’t just be great; it should be unforgettable. Think about grandma’s secret gajar halwa recipe – simple yet unforgettable. 

Similarly, a D2C beverage company recently captured attention with a “INR 15 for a bottle” offer. Immediate value recognition led to carts filling faster than a pop-up summer rainstorm.

When Others Vouch For You: The Magic Of Social Proof

Imagine being at a party where everyone’s talking about this new book. Chances are, you’ll want to read it too. That’s social proof! From sparkling customer testimonials to an influencer’s casual brand mention, this is about having the world echo the awesomeness of your brand. It’s the nod of approval every potential buyer seeks.

Navigate And Inform: Shop Sections And FAQs

Ever entered a store and found everything you needed within arm’s reach? That’s how your online shop should feel. Couple this with a crystal-clear FAQ, answering queries even before they pop up, and you’re setting the stage for a seamless customer journey.

Dive Deep With 1P Data

Imagine if your favourite cafe remembered not just your coffee preference but also your preferred table. That’s what deep data capturing is about. Beyond the email, it’s about understanding your customer – their likes, dislikes, and quirks. There are multiple online/offline brands that do this beautifully.

Guiding Eyes With The F-Shaped UX

Remember those treasure maps from childhood where X marked the spot? The F-pattern is the digital equivalent. People usually scan pages in an ‘F’, and by aligning your critical elements to this path, you’re subtly guiding them to the ‘X’ – your most important content.

Your Brand’s Cherry On Top

It’s the final touch, the cherry on the sundae, the encore of a fantastic concert. Communication angles are those unique quirks that make your brand memorable. It’s not just about presenting facts but weaving a story and making it sticky. 

Embarking on the D2C journey, armed with a refined funnel, isn’t merely about ringing sales but narrating a brand tale that resonates. With each step optimized, every ‘cha-ching’ from Shopify won’t just be a sale; it’ll be an endorsement of a well-told brand story.

The post Crafting The Perfect Funnel: A Game Changer For Your Brand appeared first on Inc42 Media.

In the ever-evolving landscape of retail, direct-to-consumer (D2C) brands have made a significant impact with their online-first approach. However, a growing number of these digital-native brands are now venturing into the physical realm, embracing an omnichannel strategy that will augment the gap between online and offline retail experiences. 

This transition from “clicks” to “bricks” is not without its challenges, but it represents a bold move that allows D2C brands to connect with customers in new and meaningful ways.

The Challenges They Face

As D2C brands make the leap into physical stores, they encounter a variety of challenges unique to the omnichannel journey. One major hurdle is ensuring brand recall and visibility in a new environment. 

Unlike the digital realm where targeted ads and online content can be tailored to specific audiences, physical storefronts require a different kind of appeal to draw foot traffic. Building a physical presence that is both exciting and committed to the brand’s online identity is a complex task.

Another challenge is the capital required for setting up and maintaining physical stores. D2C brands that have primarily operated online may not have experience in managing a physical retail space, leading to considerations like store location, layout design, inventory management, and staffing. 

These factors demand a new set of skills that may be unfamiliar to brands accustomed to the digital landscape.

Offline Vs Online: The Key Differences

Moving from online to offline retail involves a significant shift in approach. While the online space offers convenience and the ability to reach a global audience, the offline world offers a chance to create tangible experiences and provide a sensory understanding that digital platforms cannot replicate. 

Customers can touch, try on and interact with products in person, which can lead to higher levels of engagement, consideration and emotional attachment.

Offline retail also enables immediate gratification and personal assistance. Customers can walk out of a store with their purchases in hand, eliminating the wait associated with shipping. 

Additionally, in-store staff can offer real-time guidance, answer questions and provide recommendations based on individual preferences, which can contribute to a more satisfying shopping experience.

The Mindset Change

Shifting from an online-only mindset to an omnichannel approach requires a fundamental change in perspective. D2C brands need to think beyond the screen and consider the entire customer journey. 

This involves understanding how customers move between online and offline touchpoints and ensuring consistency and seamlessness at every step. The brand identity that has been carefully crafted in the digital realm must now translate effectively into a physical space.

Moreover, D2C brands must embrace a more flexible approach to their strategies. In the digital world, quick adjustments and A/B testing are common practices, but in the physical world, changes can be slower to implement. Brands must learn to balance the agility of the digital world with the stability and permanence of the offline world.

Optimising Resources For Success

Transitioning to an omnichannel model requires a strategic allocation of resources. While the digital space demands investments in website development, online marketing, and ecommerce infrastructure, the offline space necessitates funding for store design, lease agreements, staffing, and in-store experiences.

Balancing these resources to ensure a cohesive and effective omnichannel presence is a critical consideration.

Brands can also leverage data and insights from both online and offline interactions to inform their decision-making. Understanding customer behaviors, preferences, and pain points across all touchpoints can lead to better-informed strategies that cater to a wider range of customer needs.

The journey from “clicks to bricks” is a significant and transformative step for D2C brands. It’s a move that requires careful planning, agility to adapt, and a deep understanding of both online and offline retail dynamics. 

By embracing the challenges and opportunities of an omnichannel approach, D2C brands can create richer, more immersive experiences that foster lasting customer relationships and drive growth in a competitive market.

The post Clicks To Bricks: How D2C Brands Are Embarking On An Omnichannel Journey appeared first on Inc42 Media.

The direct-to-consumer (D2C) model has revolutionised the Indian retail landscape, empowering brands to connect directly with consumers and bypass traditional distribution channels. While D2C brands initially gained traction in urban centers, they are now rapidly expanding into various cities and markets across India. 

As per Statista, currently, India is home to 600 or more D2C brands with an estimated market size of about $55 Bn in 2022. The Government Of India’s ONDC Initiative is also expected to shoot up the popularity of the D2C brand in Tier II & III cities in India. 

A major contributor to this is the fact that Tier II & III cities have experienced a significant rise in disposable incomes, contributing to the growth of such brands in these markets. The rising affluence and aspirations of consumers in these regions have led to increased spending on quality products. Moreover, these markets represent a substantial portion of India’s population, and by catering to the needs and preferences of consumers in these regions, brands can achieve broader market reach and penetration. 

A great example of this is many growing F&B D2C brands that have studied local markets extensively and curated products that are adaptable and loved by all demographics and age groups. This is especially large since so many people are intrigued and open to trying new concepts and international flavors, adding to a faster adoption rate for the F&B industry in local markets. 

All of these trends have attracted D2C companies to cater to the demand by offering accessible and affordable products directly to consumers. 

In many ways, this helps build a robust ecosystem in these markets, and some of the key factors contributing to their success are:

Enhanced Consumer Engagement

D2C brands are leveraging digital platforms to establish direct connections with consumers by fostering a personalised and engaging shopping experience. Leveraging social media, influencers, and user-generated content, these brands are building strong communities and loyal customer bases.

They actively involve consumers in product development, seek feedback, and adapt their offerings to cater to local preferences.

Tailoring Products For Local Needs

One of the strengths of direct-to-customer players is their ability to adapt quickly to changing market dynamics. In smaller markets, where consumer preferences may differ significantly from urban areas, these brands excel in customisation.

By closely studying the local demographics, preferences, and cultural nuances, these brands offer tailored products that resonate with the target audience. This localised approach helps build trust and establishes the brand as a reliable and relevant choice. 

Building Last-Mile Distribution Networks

The logistics infrastructure in Tier II & III  markets is still evolving, presenting challenges for traditional retail players. Brands are now addressing this gap by investing in last-mile distribution networks. 

They are collaborating with local logistics partners, setting up micro-warehouses, and implementing innovative delivery solutions to ensure efficient and timely product deliveries. This localised approach gives them a competitive edge over traditional players, enabling them to reach customers in remote areas effectively. 

Affordable Pricing And Value Proposition

Brands often offer competitive pricing by eliminating intermediaries from the supply chain. By selling directly to consumers, they can provide high-quality products at affordable prices. This value proposition resonates well with consumers in smaller city markets, who are price-sensitive and seek value for their money. 

Additionally, companies are investing in educational marketing campaigns to educate consumers about the benefits of their products, further strengthening their value proposition.

This rise of D2C brands in the growing markets of India signifies a paradigm shift in the retail industry. These brands are redefining the way consumers discover, engage, and purchase products, creating a strong ecosystem that caters to the unique needs of these markets. By embracing technology, customisation, and localised strategies, D2C brands are unlocking the vast potential of these markets and contributing to the growth of India’s ecommerce landscape.

The post How D2C Brands Are Building A Strong Ecosystem In Tier II & III Markets Of India appeared first on Inc42 Media.

20India is witnessing a phase where 21st-century digital technologies co-exist with 19th-century challenges. In an effort to revolutionise this, the government has already taken several measures. In fact, a Nielsen study points out that rural India’s internet presence is 20% higher than urban India. 

The Indian Techade story can become a reality by 2030 only when the ecommerce and banking/payment technologies become democratised and reach every digital citizen. Today, an English-centric internet has become a major barrier for nearly half a billion digital citizens in India to leverage the full vista of choices and empowerment offered by the digital world, such as ecommerce and online financial services availability.

The wave of newcomers to the smartphone era, who are less educated and online for the first time, can be better navigated using voice assistance technology. Multilingual voice assistance is the bridge to making the Indian Techade story a reality. The new-to-internet digital citizen should have an easy way to interact with the mobile/web apps in their own vernacular language, using their own voice. 

With ultra-intelligent multilingual capabilities, in-app voice assistance technology has the potential to provide a seamless experience for customers. Gone are the days of scrolling through endless pages of products, trying to find that perfect item. With voice assistance technology, one can simply tell the virtual assistant what is required and let the technological magic unfold! 

The Sound Barrier: Challenges And Limitations Of Voice Technology 

India is the second-largest digital consumer market in the world, with a population of 1.4 Bn and more than 560 Mn internet users. Despite the wave of technologies such as 5G and smartphone dispersion, only 200-250 Mn people in India are using ecommerce. The major reason why the rest of the population refrains from using the apps is that all the apps/websites are in English. Even though some apps provide translation, it’s challenging to use them. 

Also, using vernacular keyboards is tough because they are harder to use than English keyboards. This is where voice assistance comes into play because literacy itself is a major issue when it comes to the ‘new-to-internet’ Indian users.

Another major concern is privacy and security. With voice technology recording personal information, there’s always the risk of potential data breaches. Another hurdle that we face is integration with existing systems. Compatibility issues with legacy systems can be a nightmare, and the high cost of implementation can be a barrier for some retailers.

However, as more and more businesses adopt voice technology, we can expect to see these challenges diminish. Perhaps the most significant limitation of voice technology in retail is the accuracy of voice recognition. Accurately interpreting voice commands can be tricky, especially when dealing with regional accents and dialects. However, voice technology is constantly improving, and as more data is collected and analysed, we can expect to see improvements in accuracy.

Calling The Attention Of Voice Assistants: Addressing The Hiccups And Hurdles

According to a Deloitte report, voice will account for approximately 30% of all sales by 2030. Today, India is witnessing a voice-led revolution that will alter how we interact and do business. Brands can easily grow their current market by three to four times by expanding not only into non-English tier-2 and tie-3 India but also by penetrating the urban market deeper by onboarding segments such as cab drivers, auto drivers, senior citizens, house helps and similar sections of society. By doing so, they will get deeper insights into user behaviour. 

The voice assistant in ecommerce apps can actually prevent 30-50% of the drop-offs that happen today. This drop-off prevention is a huge advantage for brands, as it gives them more revenues without the additional cost of customer acquisition or additional marketing costs. For all these reasons and more, it makes sense for brands to mandatorily implement voice assistance inside mobile and web apps in all vernacular languages of Bharat.

If the same personal shopping experience in the physical world can be adapted to online shopping using voice and conversations in local lingo, it will be the easiest way for them to start using the advanced applications on their smartphone. Multilingual voice assistance inside mobile and web applications eliminates most of the barriers facing new-to-the-internet Indians and enables them to have the same kind of choices, opportunities and empowerment that a minority set of Indians are enjoying today. Access to knowledge and transactions in their own languages will help them to stay independent and informed.

With ultra-intelligent multilingual capabilities, in-app voice assistance technology has the potential to provide a seamless and personalised shopping experience for customers, while also streamlining operations for retailers and ecommerce companies. 

Additionally, organisations enabling in-app voice assistants can offer an option for users to customise their voice commands, ensuring a more accurate and personalised experience. Overall, a holistic in-app voice assistant can offer a robust and reliable voice assistance solution that addresses the privacy and security concerns of users while also providing a flexible and scalable platform that can integrate with existing systems and accurately interpret user commands.

Scaling Globally

The future of retail is about to get a whole lot louder, thanks to the ear-popping potential of in-app voice assistants! Imagine a world where you can simply shout out your shopping list while jogging and have it all delivered to your doorstep in a flash.

As we move towards a more digital and connected world, the integration of voice technology in retail is inevitable. With a focus on robust security protocols and accurate voice recognition, the future of retail will be all about making our lives easier and more convenient than ever before.

For a multilingual market like India, awareness and trust in voice AI are the key drivers of adoption. The benefits of voice assistants in apps are not limited to India alone. There are several ecommerce, banking and fintech apps in India that are operating in multiple countries. 

India itself is taking the IndiaStack to other countries as a gesture of goodwill, and it is being embraced across the world. These initiatives provide the Indian startup/tech industry and India with the kind of soft power that was generated by oil in the last century and minerals in the centuries before that.

The post Voice To Cart: How Voice Assistance Is Democratising The Future Of Retail appeared first on Inc42 Media.

Counterfeiting is an age-old hazard for businesses. It hampers the revenue flow and causes financial losses. The reputational damage it causes to brands is even bigger.

Pirates are a big threat to businesses even in today’s age of non-fungible tokens (NFTs) and digital currencies. While technology is smart, scamsters are getting smarter with equal finesse. Look at NFTs. The very concept of NFTs is uniqueness and non-fungible. However, fraudsters often find a way around it to deceive gullible victims.

Counterfeits are rampant in pharma, farm and food products, fashion and cosmetics, and plywood, among others. Ecommerce is another space where counterfeiters are having a field day. In May this year, the Delhi High Court asked Snapdeal, Meesho, and Amazon to take down counterfeit products from their platforms. 

Quoting from a case study, Vikas Jain, founder and CEO of Acviss Technologies, a brand protection tech startup, said that India loses about 4%, or over 10 Mn tonnes, of food output a year due to fake pesticides.

Counterfeits account for up to 30% of the $4 Bn pesticides and crop seed market, he said citing a government-endorsed study.

No wonder, a study by Acviss estimates that the global anti-counterfeit market will cross $208.3 Bn by 2023, growing at a rate of 10.9%. The Asia-Pacific (APAC) region is the fastest-growing anti-counterfeit market. 

Bengaluru-based Acviss offers new-age anti-counterfeiting solutions to brands to protect their business.

What Brands Can Do To Prevent Piracy 

To protect themselves from counterfeiting, brands often adopt a reactive approach, i.e., register a complaint with the law enforcement agencies which conduct raids on the premises of scamsters. The maximum brands normally do is take legal action. 

“They should actually be doing strict monitoring, finding out such sellers, and stopping counterfeiting through technology. Some are using tech, but most of them are reactive only,” said Jain. 

Usage Of Holograms With New Tech 

Holograms are the commonly deployed tool to fight pirates. However, they have their own limitations, according to Jain. While holograms offer lots of features, the verification process is too cumbersome for buyers. A customer may require a magnifying lens to see the micro text in the hologram.

Besides, holograms can themselves be counterfeited these days. Smart alecs are out there, particularly in China, who can replicate holograms, even if they are not exactly the same.

Hence, it is important for brands to use more and more tech to make the authentication process a seamless exercise. According to Jain, holograms can be the base and tech can be added to it.

Talking about the technology used by Acviss, Jain said, “We are doing multiple things. Our core is to give a unique, non-identical identity to each and every physical product which makes them non-replicable. We also use tamper-evident technology so that if somebody tries to even remove the identity, it can be understood that it is tampered.” 

So, how practical is it to have a unique identity for crores of units of a product? According to Jain, there are two ways to do this. “You can either add it as part of the packaging directly. If it’s happening as the direct packaging when the box gets done, you can add it at that time. After the unit is packed, you can basically apply it as a label in the form of a specialised label. Automated applicators can be used to enable or make it easy.” 

While this adds to the manufacturing cost, the extra profits which brands earn often outweigh the additional cost. Brands otherwise lose this profit to counterfeits. The extra cost should be seen as an investment that brings back the revenue or adds to the revenue.

Acviss’ ‘Affordable’ Solutions For Brands

Formed two years ago in March 2020, Acviss has been cash-flow positive since Day 1 of business, Jain said. “We had a customer on board even before we deployed our product.” It closed FY2022 with a revenue of INR 4.20 Cr and is targeting a revenue of INR 7.5 Cr in FY23. It gets most of its revenue from the private sector, with FMCG and agriculture being the top two sectors. While FMCG contributes 30% to its revenue, around 20% comes from agriculture. The rest is divided between electronics, plywood, and consumables. 

Truviss, the brand-protection software developed by Acviss, gets lots of queries from the fashion, cosmetics, and health industries, Jain said. Close to 5% of the startup’s revenue comes from the health and pharma space. 

“We also have a couple of customers in the bullion space. Many times people sell high-value products in the name of established brands. We also have a couple of customers in certificate space. A few universities are also working with us,” Jain said.

The pricing, however, depends on the level of security required for the product. It is a little higher for products that require more layers of security. A high-value product such as gold for sure will require many layers of security. The pricing also depends on the substrate used and how verification will happen.

However, one of the competitive advantages which Aviss enjoys is affordability, according to Jain. While it has adopted a mobile-first approach, Acviss also ensures end-to-end integration. Its packaging is non-replicable and technologies patented too. 

Acviss helps brands understand their complete footprint online and if somebody unauthorised is selling their products on marketplaces. It also warns brands if somebody has come up with a fake domain name, a similar-sounding domain, or a fake look-alike website.

“If there’s a domain or a website similar to the original website it could be brought down through our process…We are kind of helping them take down these sites or take down the social media links, even fake apps,” Jain said.

The bootstrapped startup also gives brands a machine learning algorithm to help them categorise things which could be hurtful to the brand image.

Acviss, which works with 80 companies currently, both domestic and foreign, offers anti-counterfeiting, non-replicable packaging solutions. Blockchain and online anti-counterfeiting services are its other fortes.

Few competitors offer a suite as diverse as Acviss. For example, while Avery Dennison Corp of the US, CCL Industries of Canada, 3M Company of the US, and DuPont Pharm are present in the anti-counterfeiting packaging space, Redpoins, Brandverity, BrandShield, MarkMonitor, Opsec, among others, are online anti-counterfeiting providers.  

How Blockchain Can Help

Blockchain technology can be deployed as a solution to the problem of counterfeiting. A shared immutable ledger that records every transaction and each movement of a product at every level makes counterfeiting next to impossible. It holds particularly true for digital NFTs. With blockchain, one can get to know who owns the NFT. Blockchain carries a ledger which tells who currently owns the token or an art form. Since it is decentralised, an individual can verify the rightful owner without the help of a central authority.

“On the physical form as well, if you want to be able to provide additional security, anti-counterfeiting technology comes into picture,” Jain said. 

Acviss also has a blockchain-based platform and has onboarded coffee brands on it. The startup has also developed a ‘no internet’ blockchain-based traceability application for the Coffee Board of India. This app is designed to protect coffee production from counterfeiting.

Acviss has also developed a special label for the Coffee Board which is then applied to the coffee packages to digitise the physical bags. These bags, when moved from one stage to another, record each and every transaction that takes place in the whole supply chain. This whole development can then be viewed on a smartphone where the consumer gets complete visibility of the product details on the marketplace.

This anti-counterfeiting solution helps reorganise the unstructured supply chain and protects farmers from fraud and fake GI tag products with the help of quality evaluation.

The Coorg region in Karnataka is known for its coffee. A lot of times people try to sell coffee from other regions as Coorg coffee because it attracts a premium. However, Acviss’ blockchain technology helps verify if the coffee is actually coming from Coorg or not. 

With the help of the startup’s solutions, Coorg’s coffee farmers are able to compete with bigger brands such as Starbucks, Coffee Day, among others, Jain said.

Blockchain, however, might not be a solution for every brand as there are a few factors that need to be considered like the size and complexity of the supply chain, the value of the target product, and the level of counterfeiting occurring with regard to the brand. 

Hence, it is important for brands to be alert and keep looking for the deployment of new technologies to tackle counterfeiting and protect their businesses.

The post How Acviss Is Helping Brands Fight Counterfeiting Using Blockchain, Other Technologies appeared first on Inc42 Media.

For quite a few years now, the annual festive sales of ecommerce companies in India have been the talk of the town due to aggressive discounts and high-decibel marketing campaigns. While the festive sales in the country were driven by Amazon and Flipkart before the pandemic, this year the ecommerce giants are also facing competition from JioMart, Tata Neu, Meesho, among others.

The optimism around festive sales is higher this year as it is the first pandemic restrictions-free festive season in the last three years, and the ecommerce players have gone all out to cash in on the sentiment.

JioMart and other ecommerce players such as Amazon, Flipkart started their festive sales on 23 September. However, Amazon and Flipkart gave early access to paid members from September 22. 

A JioMart spokesperson told Inc42 that the online selling channel of Reliance Retail Ventures saw a 2.5X spike in traffic and overall sales during its ‘Tyohaar Ready Sale’ from September 23-30. Besides, there was also a 3X increase in app installations for JioMart during the period.

However, the spokesperson didn’t give any details about the sales value during the period. 

According to a Redseer report, the ecommerce marketplaces in the country together clocked total sales of $5.7 Bn (INR 40,000 Cr) during the first week of their festive sales, a growth of 27% year-on-year (YoY), 

Amazon and Flipkart also claimed to have seen a high growth in the number of paid members on the first day of their sales. 

Flipkart was at the first position among the ecommerce players with 62% share in the total gross merchandise value (GMV) during the first week of the festive sales, followed by Meesho and Amazon, as per Redseer. 

Despite their high-profile launches, new players such as JioMart and TataNeu were not able to acquire a significant share in terms of GMV, the report added.

Festive Cheer For Sellers 

The increase in sales translated into higher revenue for sellers on the JioMart platform during the festive season. The JioMart spokesperson said that over 50% of sellers witnessed a 2X increase in sales, while top sellers witnessed a 5X increase in orders during the first eight days of the sale.

It must be noted that JioMart grew its merchant partner base to more than 20 Lakh partners in FY22, adding around 1.5 lakh partners a month, Reliance Retail Ventures Director Isha Ambani said during the annual general meeting (AGM) of parent company Reliance Industries Ltd. 

Overall, the ecommerce industry saw a 2X growth in the number of sellers ahead of the festive season, thanks to the zero-commission policy introduced by a few ecommerce players and lower commission fees offered by others.

Amazon India waived 50% selling fee during this festive season and onboarded more than 9,000 sellers from the North East before the start of the sale. On the other hand, Flipkart also claimed to have seen 220% YoY growth this year in the number of new sellers joining its marketplace.

Tier-2 Cities And Beyond Drive Growth

Like most of its peers, JioMart said that more than 60% of its sales came from Tier-2 cities and beyond. Going beyond the festive season, this can be a good growth catalyst for JioMart.

JioMart delivered products in over 260 towns during the financial year 2021-22, Ambani said during the AGM.

The next wave of growth in online shopping in the country is expected to come from Tier-2, 3 cities and beyond. As a result, most of the ecommerce players are expanding their presence and services to these areas.

Amazon said it witnessed 68% of new ‘Prime’ sign-ups from Tier-2, 3 cities during the first two days of its festive sales. On the other hand, Flipkart also said that a majority of its ‘Flipkart Plus’ membership growth came from Tier-2, 3 cities.

According to an Inc42 report, the number of online shoppers in the country is projected to reach 350 Mn by 2025. Reliance Retail has been pushing its digital commerce business aggressively in recent times, and the platform can benefit from the growth in Tier-2 cities. However, the competition remains significantly high in the ecommerce market.

JioMart Focusing On Additional Categories

While JioMart was launched with an eye on online grocery shopping, the company has been expanding its presence in other categories to compete with rivals like Flipkart and Amazon. The Reliance-owned platform is focusing on categories like electronics, home and kitchen, fashion and lifestyle, beauty, FMCG, and consumer durables this festive season to expand its offerings and increase revenue. 

“We also increased the number of products by over 80X compared to the previous year. These efforts combined with convenient JioMart-Whatsapp ordering and no minimum order limit for free delivery have resulted in an overall demand spike in grocery as well as other categories,” the JioMart spokesperson said. 

Reliance extended its partnership with WhatsApp earlier this year to provide an end-to-end shopping experience for JioMart customers under which they can browse through JioMart’s entire grocery catalogue, add items to cart, and, most importantly, make the payment on the messaging app itself.

The post JioMart Records 2.5X Spike In Sales During First 8 Days Of Festive Season appeared first on Inc42 Media.

Li Xiongwei, the CEO of Chinese telecom company Huawei Telecommunications (India), reportedly told a Delhi court on Friday, “I am a Chinese (national) and not a terrorist.”

Xiongwei’s lawyer Vijay Aggarwal said so in response to the Income Tax (I-T) Department’s opposition to his bail plea, the Economic Times reported. 

The I-T department earlier told the Delhi High Court that a look out circular (LOC) was issued against Xiongwei due to his conduct that hinted he could soon leave India. However, the Huawei CEO filed a petition in the court requesting to revoke the LOC.

As per the publication, the I-T Department pointed out that India does not have an extradition treaty with China and if Xiongwei leaves, it would “be very difficult” to bring him back. It is a concern because the investigation is still on, it said in an affidavit.

Aggarwal called the I-T Department’s opposition to Xiongwei’s plea “disturbing”. 

The court verbally observed that it needs to examine safeguards to ensure that Xiongwei would return to India if allowed to visit China, the publication reported.

The bench is likely to pronounce its judgement next week. It also enquired about the CEO’s annual salary and asked the lawyer to arrange two sureties for him from Indian nationals.

Tax Evasion Allegations

The I-T Department has accused Huawei of tax evasion by manipulating its account books to reduce its taxable income. It has also alleged that Huawei transferred a significant amount of money as dividends to its parent firm in China to reduce tax liabilities in India.

The I-T department also said that the raw ERP data dump provided by the Chinese company was ‘not sufficient’ to audit its books.

In May, Xiongwei was stopped at the New Delhi airport and not allowed to board a flight to Bangkok.

The Indian government has cracked down on Chinese firms following the deadly clashes between the soldiers of both the countries in Ladakh in 2020 in which 20 Indians and an unknown number of Chinese lost their lives. From Xiaomi to Oppo to Vivo, a number of Chinese companies are being probed by Indian agencies for tax evasion, money laundering, among other charges. 

Last month, the Department of Telecommunications also amended the unified access services licence (UASL) agreement for procurement of telecom equipment to plug a loophole that was being used by Indian telecom companies to onboard Chinese players like Huawei and ZTE as gear partners.

The brush with authorities in India adds to the troubles of Huawei. In 2019, the US Department of Justice also charged the company with bank fraud and stealing trade secrets, and a trading ban was imposed on the company.

The post I Am A Chinese And Not A Terrorist: Huawei CEO To Court During Bail Hearing appeared first on Inc42 Media.

At a time when India is exploring ways to become self-reliant in production of lithium-ion batteries for electric vehicles (EVs), Mahindra & Mahindra CEO Anish Shah said that the automotive manufacturer does not intend to get into manufacturing batteries, but could consider investing in a battery cell manufacturing company. 

The statement comes days after Mahindra announced raising INR 1,925 Cr ($250 Mn) for its newly incorporated EV unit from British International Investment (BII) at a valuation of INR 70,070 Cr ($9.1 Bn). Its new EV unit would focus on four-wheeler passenger EVs. 

Earlier, the company also announced a potential collaboration with Volkswagen wherein it planned to use components such as electric motors, battery system parts and battery cells sourced from the German auto and auto parts maker.

While the Volkswagen deal would meet Mahindra’s “short to medium term” battery needs, the company is also open to exploring “investment with a global leader” in the battery-cell space in case it is needed to secure future supplies, said Shah, as per Reuters.

“Our intent is not to get into (manufacturing) batteries,” he said. “There are people who do it very well. We can partner with them; we could be a co-investor in some form. We don’t need to own it and run it.”

As per Shah, a majority of the EV components barring batteries and motors are not very different from those of combustion-engine cars, and Mahindra produces a majority of the parts in-house.

“If we can get an agreement like we have with Volkswagen to secure (battery) supplies, that’s what we will do. If there’s some investment we need to make to secure those supplies, we will do that,” he said.

Last year, in an attempt to incentivise the EV industry, the Indian government approved a Production Linked Incentives (PLI) scheme for manufacturing advanced chemistry cell (ACC) batteries at an estimated outlay of INR 18,100 Cr. last year. 

After multiple fire incidents related to EVs, which also included a four-wheeler fire involving Tata Nexon, there has been an increased emphasis on producing not only EV batteries but also cells in the country and testing them under Indian conditions.

NITI Aayog member and scientist V K Saraswat also said in May that imported battery cells for EVs “may not be” suitable for India, and emphasised the need for local manufacturing of cells. 

Several experts had earlier told Inc42 that manufacturing EV cells and batteries in India would also considerably help the country in being more self-reliant during times of any global crisis and help reduce vehicle costs to a great extent.

However, India is largely dependent on imported batteries for now. The country imported 450.3 Mn units of Li-ion batteries in the April-November period of the financial year 2019-20, valued at $929.26 Mn (over INR 7,200 Cr).

After much controversy about the safety of batteries in Ola Electric scooters, its CEO Bhavish Aggarwal on Monday (July 7), in a tweet, unveiled its “first indigenously made Li-ion cell”. 

Meanwhile, the total capital infusion in Mahindra’s new EV unit is currently envisaged to be approximately INR 8,000 Cr ($1 Bn) between FY24 and FY27 for the planned product portfolio.

The post M&M Can Invest In EV Battery Cell Maker, But Will Not Become A Manufacturer Itself: CEO appeared first on Inc42 Media.

1K Kirana, which is an online platform for Kirana stores, has raised $25 Mn in a Series B funding round at a post-money valuation of $115 Mn. The round was co-led by Alpha Wave Ventures, Info Edge Ventures and Kae Capital.

Angel investors including Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary from Zetwerk and Kushal Karwa, Rishabh Karwa, Nitin Rana, Amit Bhasin from GoMechanic have participated in the round. 

The funds will be used for developing the supply chain capabilities and tech infrastructure of 1K Kirana. It will be further deployed to expand the startup’s warehouse footprint from the current 2 Lakh sq feet to 6 Lakh sq feet. 

The current investment is the first tranche of the large funding round. 1K Kirana is likely to raise another $25-$30 Mn in the coming months at an increased valuation.

The latest development comes after 1K Kirana secured $7 Mn in a Series A funding round in August last year. The round was led by Info Edge Ventures and Falcon Edge. 

Other investors including Kae Capital, Rajesh Yabaji and Chanakya Hridaya from Blackbuck and Hari TN from Bigbasket participated in the round.  

Founded in 2018 by Kumar Sangeetesh, Sachin Sharma and Abhishek Halder, 1K Kirana follows a franchise model where it connects Tier-2 consumers with its franchise partners, basically it’s partnered kirana stores. The startup follows the approach of D Mart where customers can come, pick products and do checkout via its app. 

1K Kirana claims that 70% of its franchise partners are existing kirana stores while 30% are new kirana stores that are coming into this space.

Kumar Sangeetesh said, “1K Kirana is a supply chain end-to-end. The startup sources, distributes and then ensures that consumers come to the stores to buy products. Our app is used to pull consumers to the stores rather than delivering products at their doorstep.”

1K Kirana essentially focuses on consumers living in Tier-2 cities of India. It claims to have served over 1 Mn customers in various districts of Delhi, Haryana, Rajasthan and Uttar Pradesh. It aims to serve more than 10 Mn customers across 100 districts through 5,000 franchise stores in the next 12 months. 

According to 1K Kirana, it had an annual recurring rate (ARR) of INR 300 Cr in the last fiscal year (2021). It said it is currently clocking INR 30 Cr monthly recurring rate (MRR) and aiming to achieve INR 1000 Cr ARR by the end of this fiscal year (2022). 

It faces competition from Dukaan, Kirana King, Khatabook, and ShopKirana among others. 

The post 1K Kirana Raises $25 Mn To Connect Consumers With Grocery Stores appeared first on Inc42 Media.

The Narcotics Control Bureau (NCB) said on Sunday that it has arrested the promoter of a company in Domalguda for running an illegal online pharmacy service and supplying psychotropic drugs to customers in the US for recreational use.

The agency raided the house and office of the prime accused, Aashish Jain, and seized INR 3.7 Cr cash. According to the NCB, Jain received payment in the form of bitcoin and through online transactions.

NCB seized several laptops, mobile phones and other electronic gadgets, which were used to operate the illegal pharmacy. Based on the evidence, NCB booked a case under the NDPS Act.

NCB further added that the prime accused is a key player in an international pharma drug trafficking network, and the bureau added that Jain had carried out more than 1,000 illegal diversions and shipments of drugs from India to the US, as well as within the US, in the past two years.

The bureau had searched Jain’s house and the premises of his company, JR Infinity at Domalguda on May 4. JR Infinity was used as a front to use illegal pharmacies and Jain used to contact customers using Voice over Internet Protocol (VoIP) and email.

Sanjay Kumar Singh, NCB deputy director-general (operations), elaborated on the modus operandi. Singh added that once a foreign customer agreed upon a product and a price, JR Infinity employees collected their personal details and shared payment links with them. 

Singh added, “Customers were given multiple options such as Bitcoins, account transfer, credit card, and PayPal to make the payment. On payment confirmation, JR infinity used to divert and dispatch the drugs.”

These drugs included Oxycodone, Hydrocodone, Alprazolam, Diazepam, Lorazepam, Clonazepam, Zolpidem and Tramadol, which were being shipped across to foreign countries.

Jain founded JR Infinity in March 2018 with one Ramesh Kumar Kala, registered in Domalguda. The company was registered as saying the purpose of maintenance and repair of offices, accounting and computing machinery. 

Singh added, “Further investigation, including the probe into digital evidence, is underway. More evidence about the operations, source of drugs and accomplices of the prime accused in India and abroad, is expected to come out during [the] investigation.”

Recently, the use of the internet to sell contraband drugs has increased in India, with multiple incidences of the same coming up concerning regularity.

The epharmacy segment is a highly competitive one, with the likes of Reliance, Amazon and Tata competing in the same. A few days ago, Flipkart had also announced a similar move into the epharmacy segment, to which the trade body CAIT has asked the government not to allow marketplaces and online pharmacies to sell drugs in India.

CAIT has written to Commerce Minister Piyush Goyal and Health Minister Mansukh Mandaviya to prohibit online pharmacies from selling drugs in India so that the provisions of the Drugs and Cosmetics Act and Rules (DC Act and Rules) are fully complied with, according to its statement.

Before this, Meesho was booked by the Food and Drug Administration, Maharashtra, for allegedly selling abortion pills on its platform without a prescription and also not furnishing pharmacy bills per the norms.

The post NCB Arrests Founder Of Online Pharmacy For Selling Psychotropic Drugs To US Customers appeared first on Inc42 Media.

Future Retail Ltd’s (FRL) plan to sell its assets to Reliance Industries Ltd (RIL) has failed as a majority of shareholders of the debt-laden company voted against the INR 24,713 crore deal. 

In an exchange filing on Friday (April 22), FRL said a majority of its secured creditors voted against the deal. While 29.57% votes were cast in favour of the deal, 65.05% votes were against the deal.

FRL’s lenders include Union Bank of India, Bank of India, Bank of Baroda, State Bank of India, Indian Bank, Central Bank, Axis Bank and IDBI Bank.

FRL did manage to get the approval for the deal from its shareholders and unsecured creditors. While 85.9% of shareholders voted in favour of the deal, 78.22% of unsecured creditors supported the deal. 

The development comes as a blow to FRL which was trying to sell its assets to the Mukesh Ambani-led company to pay its debt. 

FRL has been in a standoff with ecommerce giant Amazon over the contentious deal. On April 15, FRL had said that it would proceed with the meeting of its shareholders and creditors, citing directives issued by the National Company Law Tribunal (NCLT). Amazon had termed the meetings ’illegal.’

In a 16-page letter to Kishore Biyani and other promoters, the ecommerce giant had said that the meetings violated Singapore arbitral tribunal’s injunction on the sale of retail assets to Reliance.

The Contentious Deal

At the heart of the dispute is the INR 24,713 Cr sale of Future Group’s retail assets to RIL that was announced in August 2020. Amazon claims that due to its indirect stake in Future Retail, Future Group is prohibited from carrying out the transaction with RIL.

The two sides have also been warring on a slew of issues and have dragged the matter to a host of adjudicating bodies across borders. 

The issue escalated after RIL, in February, quietly started taking over the rental leases of stores run by Future Group. Later, FRL accused RIL of forcefully taking over its stores. Future Group’s possession includes more than 1,700 outlets, including the popular Big Bazaar stores.

Amazon had proposed one-on-one talks with Future Group to resolve the standoff. However, the talks collapsed on March 15.Later, the US-based ecommerce platform took out large ads in many Indian dailies, accusing both FRL and RIL of indulging in fraudulent practices.

Earlier this month, reports also stated that the US-based company  had accused FRL of allegedly pursuing an ‘elaborate and orchestrated fraud’ to secure a favourable verdict in the courts. 

Hitting back, FRL recently alleged that Amazon had successfully destroyed an INR 26,000 Cr company. The company also informed the Supreme Court earlier this month that it was barely ‘hanging by a thread’, adding that its bank accounts were frozen and was even unable to pay rent.

The Kishore Biyani-led company is currently saddled with a debt of more than INR 10,000 Cr, including short-term and long-term loans. 

The post Future – Reliance Deal: Lenders Reject, Shareholders Vote In Favour appeared first on Inc42 Media.

Amid the Indian government’s push for the electric vehicle (EV) adoption, the market has seen more than three times growth in financial year 2022 (FY22). According to the Federation of Automobile Dealership Associations of India (FADAI) data, 4,29,217  units of EVs were sold in FY22, compared to 1,34,821  in financial year 2021 (FY21). 

The growth in EV sales come at a time when constant fuel price hike is also plaguing the economy, subsequently bringing lifestyle changes among consumers. However, electric two-wheelers till now account for the majority of EV sales. In FY22, electric two-wheeler retail sales were at 2,31,338 units, as opposed to 41,046 units in FY21. 

According to the FADAI data, Hero Electric Vehicles registered sales of 65,303 units in FY22, accounting for a 28.23% market share in the two-wheeler segment. The company was followed by Okinawa Autotech that sold 46,447 units in the financial year, accounting for a 20.08% market share. Considerably, Ola Electric still has a long way to go to reach the leadership position as it sold 14,371 units, standing at the sixth position.

However, despite the ongoing growth, recent incidents of electric scooters catching fire have raised safety concerns. Even on April 9, 20 electric scooters from Jitendra EV caught fire when they were being transported from the factory in Nashik. These accidents can dampen the enthusiasm for EVs and electric scooters, especially at a moment when the industry has just started taking off.

On the other hand, electric three-wheelers also registered a steep growth in sales, growing from 88,391 in FY21 to 1,77,874 in FY22. In this segment, YC Electric Vehicle registered the highest retail sales of 17,049 units with a 9.58% market share. Saera Electric and Mahindra Reva Electric acquired the second and third positions with 8,475 and 8,037 unit sales respectively.

It is to be noted that the Indian government has rolled out multiple schemes for providing facilities and incentives to the EV manufacturing industry. In 2021, the Indian government approved the Production Linked Incentives (PLI) scheme for manufacturing advanced chemistry cell (ACC) batteries with an outlay of INR 18,100 Cr. 

In addition, the government also approved the PLI Scheme for the automotive sector with a budgetary outlay of INR 25,938 Cr last September, while EVs are covered under this PLI scheme. Recently, the Maharashtra Government has also announced that it will create an EV-focused fund to help EV startups to scale operations. 

According to a report from Inc42, EVs are projected to have 70% and 20% market share of commercial vehicles and two-wheeler segments by 2030. Further, the transactional market size is expected to be $7.6 Bn and $20 Bn in 2026 and 2030 respectively, the report also added. 

Thanks to the increased interest in EVs, the startups in the segment have also been attracting investors in the last couple of months. For instance, Electric commercial vehicle startup EVage has raised $28 Mn in seed funding from RedBlue Capital at the beginning of the year. Soon after, Ola Electric completed its $200 Mn round at a valuation of $5 Bn.  

The post EV Retail Sales Witness Over 3x Growth In FY22 In India, Surpass 4 Lakh Units appeared first on Inc42 Media.

If 2021 was the year of a dream run for the cryptocurrency market in India, the whopping growth rate may prove to be harder to come by in 2022. At the beginning of this year, the Indian government announced tax rates for the transaction of virtual digital assets (VDA). The industry heaved a sigh of relief as the announcement came to them in the form of reassurance, and recognition. 

However,  it is not all hunky-dory as the cryptocurrency exchanges have already started witnessing a downward trend in trading volumes after the rules have come into effect on April 1. As it has been eight days since the new rules have kicked in, Indian cryptocurrency exchanges such as WazirX, CoinDCX, BitBns, Zebpay, Koinbazar, among others, have started to see a significant decline in the trading volume.

A High Trading Volume In March

Crypto exchange CoinDCX has seen fluctuations and a visible downtrend in the trading volumes but the exchange has not noticed any impact on its user base. According to Minal Thukral, SVP, growth and strategy, CoinDCX, the trading volumes were on the higher side on March 31 but this is a common trend at the end of financial years.

“All investors and traders become active towards the end of the financial year to make the most of tax harvesting provisions, and most investors also end up squaring off their positions before the start of the new financial year,” Thukral said. 

According to Coinmarketcap data, CoinDCX had a trading volume of $31,266,563, as of April 9, 18:00 PM IST. The exchange currently sees 334,373 weekly visits and average liquidity stands at 446. 

After a dip in January and February, the global crypto market started seeing a recovery in March. As stated by Nischal Shetty, founder, WazirX; there has been a 20-30% uptick in March volumes compared to February. As per Coinmarketcap, WazirX had a trading volume of $32,317,893, with 1,196,721 weekly visits( as of April 9, 18:00 pm IST). 

“We are seeing strong global trends favouring crypto adoption, but we will have to wait for the India story to unfold. It is still premature at this point to predict anything with certainty. However, I believe we will have some idea by the second or third week of April on whether crypto taxes will impact the industry or people will still trade and not worry too much about the changes,” Shetty commented.

Shetty also noted that the number of sellers has gone up by nearly 30% recently. According to him, the increase in the number of sellers cannot be attributed entirely to the closing of the financial year. As Bitcoin price also increased by 11% during the same timeframe, many traders might have squared off their positions to book profits or to minimise losses, Shetty pointed out.

“While it’s too early to comment on whether investors’ interest in the crypto industry will falter owing to the new tax rules, we have definitely observed a lot of shifting of volumes out of Indian exchanges. Investors are still trying to understand and figure out the implications of taxation and its long-term effects. We’ll have to wait and watch how the crypto community deals with it,” CoinDCX’s Thukral said. 

What Does The New Rule Say?

In the February Budget session, Finance Minister Nirmala Sitharaman introduced a 30% tax on income from all VDA transactions including cryptos, and non-fungible tokens (NFTs). 

“Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%,” the Finance Minister said. 

As per the new rules, loss from one asset can not be set off against gain from other assets. Moreover, gifts in virtual digital assets are also taxable in the hands of the recipient under the new rules. Most importantly, a 1% tax deducted at source (TDS) will be imposed on all crypto transactions from July 1.

For example, if someone invests INR 1,000 in a crypto asset, say bitcoin, and sell it for INR 1,200 after some time, the investor will have to pay a tax of INR 60 on INR 200 that they have gained from the transaction, going by the new tax rule. 

Later, the government further clarified that any loss from one crypto asset will not be counted against the income from other crypto assets. Moreover, the cost incurred to the setting up of infrastructure will also not be counted as the cost of acquisition while taxing income from crypto mining, the government said. 

Fearing the adverse impact of the rules, many of the financial influencers, and exchange founders have been rallying against such moves by the government. After the government announced that one loss can not be set off against another, Ashish Singhal, cofounder and CEO of CoinSwitch Kuber said, this move is detrimental for India’s crypto industry and the millions who have invested in this emerging asset class. 

Aditya Singh, cofounder of Crypto India, started a petition urging the government to reconsider and reduce crypto tax. The petition has gathered 1,03,544 signatures till date.

The TDS Provision May Prove To Be More Detrimental For The Market

CoinDCX’s Thukral stated that they expect the real impact on trading volumes to come from the 1% TDS provision. CoinSwitch Kuber’s Singhal also echoed a similar sentiment on the provision. 

“The high-frequency traders provide liquidity in the crypto market, enabling efficient buying and selling of assets. These traders operate on extremely thin margins, and locking up their capital with high TDS will restrict their ability to operate, lowering market liquidity and eventually impacting retail investors,” Singhal said.

While Praveen Kumar, founder and CEO of Belfrics Group believes it is quite premature to comment on the impact on traded volume based on the new tax rules, he also added that the uncertainty in the TDS rules has affected the market makers and the intra day traders. 

“There is still a lot of confusion pertaining to the TDS and the profit tax, which will affect the exchange volume in the long run,” Kumar said, claiming that there has been no change in the user registration for Belfrics. 

Will The New Tax Rules Drive Users To Decentralised Exchanges?

As retail investors may look out for other options, there are possibilities that they may opt for decentralised exchanges. These exchanges operate in a decentralised manner and allow the users to use peer-to-peer (P2P) transactions without any interference from a third party. 

According to Kumar, it will take a few more weeks to assess the shift of volume from centralised exchanges to decentralised markets.  Although centralised exchanges in India have created more buzz in India, decentralised exchanges such as Uniswap, Pancakeswap, Compound, have also attracted some traders.

However, even amid the talks around stiff crypto taxes, international cryptocurrency exchange Coinbase has made its crypto trading services available to users in India earlier this week. 

The post Crypto Exchange Trading Volume Plummets As India’s New Tax Rules Come Into Force appeared first on Inc42 Media.