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Flipkart co-founder Sachin Bansal is believed to back cab aggregator Ola with a $100 million investment after exiting Flipkart post its buyout by Walmart. Recently, Freecharge co-founder Kunal Shah announced his next start-up Cred, a platform to reward creditworthy individuals. Shah follows in the steps of Ashish Kashyap, founder of travel portal Ibibo, who recently announced his next venture, INDwealth, a wealth management start-up.

The rise in serial entrepreneurs heralds a healthy recipe for success, say experts. A working paper by researchers at Stanford University and at the Copenhagen Business School shows that serial entrepreneurs record faster success, are 39% more productive and have 67% higher sales than first-time entrepreneurs.

Venture capitalist and serial entrepreneur Bala Parthasarathy, who is co-founder and CEO of MoneyTap, says, “A good ecosystem like Silicon Valley has a healthy mix of both first-time and serial entrepreneurs.

While starting a successful company once doesn’t guarantee repeat success, it certainly provides ballast to the entire environment, tempering it with euphoria and helping attract more investors into the country who are drawn by previous successes.”

According to experts, having a negligible fear of failure is one of the key criteria of success for entrepreneurs. And serial entrepreneurs are known to take greater risks and make bolder strides.

A report by UK-based entrepreneurship think tank, Centre for Entrepreneurs (CFE), shows that compared to 40% first-time entrepreneurs, only 13% of serial entrepreneurs express a fear of failing in business.

Experts say serial entrepreneurs benefit the ecosystem through multiple ways. First, they can attract more funds into the ecosystem. Bhavin Patel, co-founder and CEO of fintech start-up LenDenClub, says through their prior experience and networks, serial entrepreneurs can pool in greater funds. “Sometimes, venture capitalists bet on a serial entrepreneur based on his or her previous entrepreneurial journey.”

According to Mandar Agashe, founder and vice chairman, Sarvatra Technologies, a serial entrepreneur sometimes plays the role of an angel investor, which is vital to the ecosystem to explore untested products or business ideas. “Investors are attracted to the upside of a successful start-up which evades their downside risks, and therefore, are more likely to invest in an enterprise run by a serial entrepreneur, than a first-time founder.”

Agrees Parthasarathy, who says investors are “cold-blooded financial managers who get excited by the risk-adjusted return of their capital. Since successful entrepreneurs are considered to carry lower risks, investors naturally gravitate towards funding them. But once investors step into the ecosystem, they discover new ideas and meet first-time entrepreneurs with attractive business plans and the cycle continues.”

Serial entrepreneurs also enhance the ecosystem by spewing a new crop of founders and start-ups. According to Sandeep Aggarwal, founder and CEO, Droom.in, who also founded ShopClues, entrepreneurship is a tough and lonely path and inspiring others can help the ecosystem to grow. “When I went out for the first time, there were people who came to help and guide me and several of them were serial entrepreneurs.”

This article was first published in DNA as <a href="https://www.dnaindia.com/business/report-launch-deliver-repeat-2687046">'Launch, deliver, repeat'</a>

Flipkart co-founder Sachin Bansal is believed to back cab aggregator Ola with a $100 million investment after exiting Flipkart post its buyout by Walmart. Recently, Freecharge co-founder Kunal Shah announced his next start-up Cred, a platform to reward creditworthy individuals.


Sachin Bansal, Kunal Shah to Ashish Kashyap, here is why serial entrepreneurs are crucial to the ecosystem

Tough times loom ahead for employees and gig workers as delayed salaries and payments are becoming increasingly common - be it corporates or start-ups.

Jet Airways recently delayed salary payments to 20% of its employees. Earlier in March, Air India put on hold salaries of its 11,000 employees. Gammon India also defaulted on staff payments in the past.

Experts say the volatile market scenario, rise of start-up culture, coupled with the trend of employing gig workers or freelancers is contributing to an increase in deferred payments.

The implementation of Goods and Services Tax last year led to the tightening of cash flows for over six months, making it difficult for start-ups and small and medium enterprises to sustain themselves. This left them with no alternative but to delay salaries till the process got streamlined.

“Cash flows are getting tighter for several companies. More so for the start-ups, as well as those in industries like hospitality, tourism and retail. Employees working in these sectors are increasingly dealing with their payments being held back in an abrupt fashion. The Jet Airways payment delays became news but there are multiple other companies whose employees are facing this issue,’’ said an expert.

Anuja Mathur, who works in a social sector start-up as a marketing manager, is yet to receive her salaries for September and October. She said although the official pay day at her firm is 10th, payments are at best made only by the 18th or 20th. “But this time we haven’t received payments for two months. Being a start-up, there is lack of proper HR practices and we have nowhere to appeal our case.”

Similar is the situation faced by gig workers whose payments keep getting delayed for months. A PayPal survey shows 58% freelancers have complained of not being paid or having faced delayed payments.

A timely payout is a hygiene factor, the absence of which leads to dissatisfaction and loss of commitment, said Aditya Narayan Mishra, chief executive of CIEHL HR. “Businesses sometimes go through difficult times and might face cash flow issues. This needs to be explained to employees and contributors well in advance, not at the last moment when the salary gets delayed and employees/contributors are trying to come to terms with it.”

Companies should be fully transparent so that employees understand the situation, said Nicolas Dumoulin, managing director, Michael Page India. “What is important is to understand when and how a solution will be reached. As in every communication strategy within crisis management, re-establishing trust with your employees is the key. Companies should try to avoid affecting the junior-level staff and at least try to give them some part of their salary.”

Transparent communication for delayed payouts should be done in an orderly manner. Anjali Gulati, founder-director of talent solutions company People Konnect, said communication should include high-level reasons for delay, explanations on when the employer expects to pay and whether it is a one-off case or will continue for a specific period of time. “Advance notice will allow employees to make alternate arrangements and make them feel that the company is in control of the situation and has a line of sight,’’ said Gulati.

But is there anything that employees can do?

Mishra said there are legal provisions such as the Payment of Wages Act, Shops and Establishment Act, and so on. “These mandate organisations to pay fair wages on time. Employees can approach employment officers, labour authorities, etc. This is helpful when someone suspects the employer is short-changing its employees and maliciously delaying payments.”

Watch This Zee Business Vidoe Here:

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/-z50E6mjQLM" width="100%"></iframe>

However, when an employer proactively talks about the challenges and the industry, in general, is facing a tough situation, legal recourse does not help. “Employees then have to either bear with the situation or look for alternate career options. When they have the proof of having discharged their responsibilities and delivered output, their due wages cannot be denied; their rights to wages are protected by several legal provisions in our law,” said Mishra.

This story first appeared in DNA Money:&nbsp;<a href="https://www.dnaindia.com/business/report-payday-panic-2685732">Payday panic</a>

Salary delays are becoming common and absence of timely payout leads to dissatisfaction and loss of commitment


Did you get your pay on time? Tough times loom ahead for employees

There is some tough business cropping up for start-ups. As the proposed Personal Data Protection Bill 2018 looms, these new-age firms have to work their way up in ensuring pricey data of all sorts is safeguarded.

Among its various clauses, the Bill makes individual consent to data sharing or processing its prime focus, ensuring the right to privacy is adhered.

For start-ups, adhering to the Bill would be a Herculean task, say experts.

“Nowadays, it is easy to get industry hosted servers, hosted source code management and related software infrastructure to start your company at low opex cost. These industry-grade hosted solutions come with their own robust security provisions that alleviate data protection concerns of a start-up. But they also lull them into a dangerously false sense of security. The start-ups stop thinking about security as a point of concern since they have signed up with vendors. This is where security breaks down,” said Unni Nambiar, chief technologist at CASHe.

Nambiar said while source code and customer data on hosted servers are protected, data on individual laptops are grossly unprotected. “Weak employment contracts, flexible work-from-home options with non-existent IT departments and security policies, all combine to create a lethal combination that spells disaster when it comes to protecting intellectual property and consumer data.”

Data protection has assumed tremendous importance in the wake of 87 million Facebook users’ data being shared with Cambridge Analytica.

In India, over 3.24 million records across industries were stolen, lost or exposed in 2017, as per digital security firm Gemalto.

Failure to protect data of all kinds can prove expensive for start-ups in many ways.

Watch Zee Business tweet video here:

<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/hashtag/ZBizHeadlines?src=hash&amp;ref_src=twsrc%5Etfw">#ZBizHeadlines</a> | <a href="https://twitter.com/hashtag/CrudeOil?src=hash&amp;ref_src=twsrc%5Etfw">#CrudeOil</a> की कीमतों में जोरदार तेजी, सोने-चांदी की चमक बढ़ी, देखिए <a href="https://twitter.com/hashtag/Commodity?src=hash&amp;ref_src=twsrc%5Etfw">#Commodity</a> बाज़ार की सुर्खियां। <a href="https://t.co/DUAta2pPdv">pic.twitter.com/DUAta2pPdv</a>
— Zee Business (@ZeeBusiness) <a href="https://twitter.com/ZeeBusiness/status/1061871323142443008?ref_src=twsrc%5Etfw">November 12, 2018</a></blockquote>

Firstly, leakage of data leads to a loss of trust and confidence among stakeholders, which is detrimental for any business, said Manish Srivastava, co-founder and chief technology officer (CTO), LitmusWorld. “In monetary terms, the loss will be computed by start-ups differently on a variety of factors including loss of business determined by customer lifetime value, loss of brand name, etc.”

The Bill has provisions to penalise companies who fail to adhere to the various clauses, with penalties going up to Rs 15 crore, or 4% of a company’s total global revenues.

Furthermore, reactive measures to plug data leakage cost intense resources, said Virender Bisht, CTO and co-founder of fintech start-up NiYO. “For every data leakage, there are additional costs of forensic audits that entities have to do. Sometimes, data hackers hold start-ups to monetary ransom. With the new changes, added penalties would become an additional burden,” said Bisht.

Experts believe start-ups have a low to average level of preparedness for the Bill. They will need to have a robust security policy that addresses regulatory reporting, third-party audit regime, checks and balances, etc.

Nambiar said the corporate network of start-ups will need to be protected with adequate firewalls and threat protection devices. “A possible trend would be to completely virtualise the technology infrastructure. A fully virtualised desktop environment coupled with sandboxed mobile solutions would be step in the right direction.”

But part of the problem is that the available security infrastructure is expensive and targeted towards larger and more established companies with deeper IT budgets. “Either a shift towards startup-level security infrastructure or an even more seamless virtualised infrastructure allowing for zero data footprint operations will be essential to allow start-ups to adhere to this Bill. Additionally, startup-grade security solutions will need to be priced at the same nominal pricing as the currently hosted infrastructures that had lowered the cost threshold and enabled the start-up ecosystem to thrive in the first place,” said Nambiar

This article was first published in DNA Money: <a href="https://www.dnaindia.com/business/report-security-challenge-2684690" target="_blank">How industry-grade hosted solutions lull start-ups into </a><a href="https://www.dnaindia.com/business/report-security-challenge-2684690" target="_blank">false</a><a href="https://www.dnaindia.com/business/report-security-challenge-2684690" target="_blank"> sense of security.</a>

&nbsp;

For start-ups, adhering to the Bill would be a Herculean task, say experts.


How industry-grade hosted solutions lull start-ups into false sense of security

Dhanteras 2018: As consumers seek out the “exotic”, the ever shining yellow gold is gradually making space for more exuberant hues of the reliable metal. Jewellery designs crafted in green, purple, rose and white gold are emerging as a formidable choice for connoisseurs this Dhanteras. “Although yellow gold is timeless, other hues have gained increasing popularity over the years,” says jewellery designer Neha Roongta.

Gold is naturally found yellow in colour. But pure gold, which is 24 karat, is extremely soft and malleable and hence not strong enough for use in jewellery, says Shreyas V Cotha, director, C Krishniah Chetty Group of Jewellers. “Therefore we alloy gold with other metals like copper, zinc, palladium to enhance its strength. During this process, we also have the ability to alter the colour of gold based on the alloy metal, ” says Cotha.

When pure gold is alloyed with copper, rose gold is created. White gold is an alloy of gold with a white metal like nickel or palladium. Green gold is created by alloying gold with silver. Purple gold meanwhile, also called as amethyst gold, is an alloy of gold and aluminium intermetallic.

But lately, there has been a trend of creating unique designs by using a combination of two-three different gold colours, mostly rose and white, says Roongta.

White gold is mostly a popular choice while crafting diamond studded jewellery “as it enhances the brightness of the diamond and is the best substitute for platinum’’, says Aparna Gujral, design head, Ganjam.

Gujral says green gold is used for setting green stones like emeralds and tsavorites.

Green gold can also be paired with amethyst and alexandrite stores, says Yash Agarwal, creative director and design head, Birdhichand Ghanshyamdas Jaipur.

White gold, meanwhile, can be used in setting blue stones like tanzanites and sapphires, says Roongta.

Designers are utilising multi-hued gold to design a range of contemporary and everyday wear jewellery.

“Rose gold is mostly used for daily wear pieces and for watches. White and green gold is preferred for contemporary statement pieces. While cocktail rings, chandelier earring, chunky neckpieces are preferred in combinations of rose and white gold,” says Roongta.

Ganjam had used rose gold in its origami collection by bringing the precision of hand folds of paper through rose gold, says Gujral. CKC had made jewellery with a zinc-gold alloy which produces a ‘’slightly greenish tinted gold alloy.”

“It is a good option when coupling designs with green diamonds or even emeralds. It isn’t easy to get the correct proportions of the alloy to develop green gold,” adds Cotha.

India is one of the biggest global importers and consumer of gold.

India imported 880 tonnes of gold in 2017, as per data by metals consultancy GFMS.

But does the usage of non-yellow gold produce any impact on prices to the consumer?

Cotha says there is no real price difference as such. “To change the colour of gold, we have to alloy around 25% of the metal, arriving at 18 karat gold. Rose, white, green, purple gold are all forms of 18kt gold. Only the metal alloy differs, but the gold content remains the same. This means there is no price difference.”

However, according to Agarwal, white and rose gold jewellery is priced 5-10 percent higher than yellow gold, ‘’considering the mixture of metals to achieve the desired colour”.

Experts say although these unique colours are popular now, purchase decisions of consumers are determined by multiple factors.

“The choice of gold colour is guided by the skin tone, risk aversion to new designs, etc. Yellow gold still dominates, ,” says Cotha.

Roughly 80-85% of the jewellery in India is still made up of the traditional yellow gold, especially in South India.

Cotha believes that although white gold has been a choice with younger consumers, some are averse as it can discolour and revert back to its natural yellow colour over longer time periods. “But a simple white gold polish can resolve this issue.”

Source: DNA Money

Dhanteras 2018: Jewellery designs crafted in green, purple, rose and white gold are emerging as a formidable choice for connoisseurs this Dhanteras. “Although yellow gold is timeless, other hues have gained increasing popularity over the years,” says jewellery designer Neha Roongta.


Dhanteras 2018: Buyers flock to new trend in gold that takes yellow out of equation

Data from the Department of Industrial Policy &amp; Promotion (DIPP) reveals that Indian start-ups filed 909 patent applications last year, as compared to a mere 61 in 2016. Does an increase in patent-related activity indicate enhanced efforts by start-ups to innovate?

“Yes, it would be reasonable to assume that increased patent filings are triggered (to some extent) by an increase in innovative yield. For one, the number of investors who now back innovation/tech startups has increased significantly in the last few years.

As such, the number of startups evolving new technologies/innovative products is on the rise and consequently, one expects that they will file more patents,” says intellectual property (IP) expert Shamnad Basheer, founder of SpicyIP, a repository on IP and innovation law/policy.

 
According to Vinita Radhakrishnan, senior partner and chief patent officer, BananaIP Counsels, patents are good indicators of innovation, “if seen from purely the patent perspective, keeping other factors constant”.

However, says Radhakrishnan, the rise in patent applications may also be partially attributed to the value given to patents by investors during valuation. Experts say in today’s scenario, IP is a key asset that impacts the valuation of a start-up.

“Since the patent process is easy today, many startups apply for a patent just before opting for a fundraise in the hope for an increased valuation. The increase in startup patent applications does not necessarily indicate a corresponding increase in innovation unless the patents are actually granted,” says Debanshu Khettry from law firm Leslie &amp; Khettry.

Patents are obtained only if the invention is novel, non-obvious, has industrial application and is filed within correct specifications in accordance with the law, says Khettry.

India ranks 57th on the Global Innovation Index (GII) 2017. Indian startups are not very famous for their innovations and novel research, with unicorns like Flipkart, Ola, etc. considered as clones (regarding business models) of Amazon and Uber.

Experts feel that patent applications by startups could be on the rise not only due to “innovation’’, but also due to multiple other factors. These include up to 80% tax rebate on patent fees, improved filing process and an introduction of user-friendly search portals such as the Indian Patent Advanced Search System (InPASS), amongst others.&nbsp;

Nonetheless, patenting often turns out to be an expensive proposition for budding enterprises. In India, a patent once granted, is applicable for 20 years. “However, it currently takes three to five years on average to get a patent grant in India.

The average cost of acquiring a robust patent ranges from Rs2.5 – 3 lakhs. Post a patent being granted, the patentee is required to pay a renewal fee of up to Rs 40,000 every year till the expiry,” says Radhakrishnan.

Is there a way startups can afford the process and costs involved? Basheer says startups have the option to request for expedited examination of their applications that can take only a few months, as opposed to years. “Regarding the costs, startups have been provided 60-80% concession in fees by the government. The statutory fees payable by startups is less than half to one-fifth of that paid by larger entities,” adds Basheer.

This could further boost patent activity in India. “I foresee a multifold increase in patent filings by start-ups in the next five years. As technology, knowledge and innovation-driven start-ups start experiencing the financial fruits of patent filings, the increase in filings will follow,’’ says Radhakrishnan.

Experts say tech startups will spur innovation. Data by Assocham shows tech startups in India will grow from 4,300 in 2015 to about 11,500 by 2020. “A key asset for many tech startups would be IP and consequently, the number of IP filings will shoot up, more so under pressure from investors,” says Basheer.

Watch this Zee Business video here:

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" scrolling="no" src="https://www.youtube.com/embed/584g_uKUX5I" width="100%"></iframe>

CODING UNIQUENESS

57% – Position India is ranked on the Global Innovation Index (GII) 2017&nbsp;&nbsp; 
11.5K – Tech start-ups in India will grow to by 2020, shows&nbsp; Data by Assocham&nbsp;&nbsp; 
Rs 2.5-3L – Is the average cost of acquiring a robust patent

Data from the Department of Industrial Policy &amp; Promotion (DIPP) reveals that Indian start-ups filed 909 patent applications last year, as compared to a mere 61 in 2016.


Indian start-ups file 909 patent applications last year, compared to 61 in 2016

Recently, drone operating system start-up Airware shut shop. Airware is not just any other name in the global start-up market. It's a venture that had only a while ago raised $118 million from a bunch of high-profile investors including Google.

This setback mirrors 2017, when wearables start-up Jawbone, that had raised $1billion and had a peak valuation of $3billion had closed down. Experts say start-up shutdowns are becoming increasingly prevalent and lack of funding no longer holds much weight in this.

Data shows that in Silicon Valley, 10 start-ups that had raised $1.695 billion collectively in venture capital funding had failed in 2017, with Jawbone being the most prominent example. In India, over 270 start-ups failed last year including Stayzilla, Yumist, Kaaryah as per Tracxn data.

"There are multiple reasons why start-ups fail and lack of funding is just one of them," say experts. A study by IBM Institute for Business value and Oxford Economics shows that 90% of Indian start-ups fail, with lack of innovation cited as the most common reason.

But failure to excel in R&amp;D is again not the chief reason, believe certain experts, who cite examples of successful Indian start-ups such as Ola, Flipkart, Gaana.com that carry cloned business models of Uber, Amazon and Spotify. "Ola and Flipkart have thrived and become unicorns despite having no clear and distinct innovation in their business and service models," say experts.

There are a great number of other reasons why start-ups fail, says investor and techpreneur Nilesh Jain who feels the failure to engage strongly with investors and mentors is a crucial factor. "It is important to be involved with investors in the early phase of the business as investors bring experience, connects and are more capable in designing effective business plans as compared to budding entrepreneurs who can then focus on R&amp;D. Start-ups should not shy away from engaging investors in their plans and should not be afraid to seek help."

Another big reason for start-up failure is poor financial management. Jain says many start-ups with great products and vision have failed due to mismanagement of funds, as they focused more on product promotion than on product development, consumer needs and competition assessment. "It is imperative for the founder(s) to plan and execute activities that provide long-term gains. The two most important things that founders need are product and team. It is the reason customers love you and ultimately why people come to work," explains Jain.

Overconfidence in customer acquisition is another key reason for failures. Arunprasad Durairaj, CEO and co-founder, Flinto Learning Solutions, says often founders assume their product/service will become a hit the moment it launches. "The first few customers might show interest, but eventually the process of attracting customers becomes an expensive task. "

Furthermore, product-market fit, growth challenges based on product need, pricing are other common reasons, believe experts, for start-up failures, as not finding the right product-market fit before the funds dry up can cause shutdowns in the start-up world.

Start-up failure should be perceived in the right manner. Hitesh Ahuja, founder and CEO of Yumlane says start-up failure indicates there is room for risk-taking, which is being encouraged by the system.

Watsh This Zee Business Video Here:

<iframe allow="autoplay; encrypted-media" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/0FUkaxwqHCk" width="100%"></iframe>

To curb chances of failure, entrepreneurs need to be agile, advise experts. Harsh Dhand, founder and CEO of online rental venture RentSher, says agility in both pivoting, as well as business models, can help in periods where the start-up has to sustain on low funds. "We realised that the peer-to-peer model is good on paper but takes a lot of funds to execute at scale. The asset led model in rentals gives short-term profits but is costly in the long term. After a couple of pivots, we finally selected a more scalable model around events, electronics and equipment rentals as a marketplace."

Recently, drone operating system start-up Airware shut shop. Airware is not just any other name in the global start-up market. It's a venture that had only a while ago raised $118 million from a bunch of high-profile investors including Google.


Start-up shutdowns: Besides funding, there are other reasons to blame

In the sharing economy, when everything from cars to dresses are rented out, how about sharing your living spaces? Co-living, an emerging concept that has already taken millennials in Japan, Europe and North America by storm, is making some fast manoeuvres in India.

People in the 18-35 yeas age bracket ranging from students, professionals, entrepreneurs, interns, freelancers and backpackers are gradually letting go of hotels, hostels, and paying guest accommodations to queue up before co-living spaces.

Co-living, unlike living in a hotel/hostel/PG accommodation, offers certain distinct advantages, say experts. The chief benefit is the extensive bonding that is facilitated in a co-living space, an essential ingredient in millennial lives, considering the digital lifestyles and accompanying boredom.

“Every single object and floor plan has been designed to facilitate interactions and connections. From custom built community kitchens to shared laundry rooms and cosy hang-out nooks, there are ample opportunities to connect with energetic millennials from all over,” says Azaan Feroz, founder and chief happiness officer at The Hub Bengaluru, a co-living and co-working space.

Another advantage co-living holds over other kinds of accommodation is the series of events that are held from time to time, both fun, leisure events and skill development programmes. “We offer community engagement programmes for the social wellbeing like game nights, festival celebrations, movies etc. and a range of programmes built for enhancing skills such as online courses, personality development initiatives, corporate internship opportunities, etc.,” says Anindya Dutta, co-founder, Stanza Living, a co-living start-up for the student community.

Adds Feroz, “From yoga and meditation to digital marketing workshops, the events are wide-ranging and enhance the level of interaction, besides giving residents with added learning benefits.” Moreover, co-living, as opposed to renting private spaces, is cost-efficient.

According to Hiren Gandhi, co-founder, Urbanpod, co-living is a culture that promotes space sharing and cost optimisation in a large way. “As the real estate prices are touching sky high in major cities globally, the culture of co-living is fast catching-up among today’s generation/millennials. An ideal co-living space allows an individual to network and at the same time it gives an individual the privacy that he/she needs.”

In a co-living zone, since amenities such as the kitchen, dining room, living room, store room, laundry, etc., are shared by the residents, the cost of living is substantially reduced by as much as 15-18%. The monthly rent could thus be anywhere from Rs 10,000 - 25,000 per head, inclusive of services such as maintenance, water, electricity, wi-fi, food, in-house entertainment/events, laundry services and housekeeping.

Co-living brands are thus seeking to increase their capacities to cater to a larger chunk of millennials on the move. Gandhi says Urbanpod through its pod concept has served over 20,000 people in the last 18 months and will increase their “pods’’ or individual resting spaces, from 140 to 800.

Watch this Zee Business video&nbsp;

<iframe allow="autoplay; encrypted-media" allowfullscreen="" frameborder="0" height="315" scrolling="no" src="https://www.youtube.com/embed/hY-nEYA7BdI" width="100%"></iframe>

Stanza Living caters to over 2, 000 people across the national capital region (NCR), and has plans of foraying into markets such as Pune, Hyderabad and Bangalore.

Source: DNA Money

Co-living brands are thus seeking to increase their capacities to cater to a larger chunk of millennials on the move. Gandhi says Urbanpod through its pod concept has served over 20,000 people in the last 18 months and will increase their “pods’’ or individual resting spaces, from 140 to 800.


Prefer renting cars, dresses? Now, share your living space; professionals, students drive new trend   

Entrepreneurs need angels to give wings to their dreams. But finding an “angel’’ is easier said than done.

Angel investor Sidharth Rao, co-founder and CEO, Dentsu Webchutney, says most entrepreneurs at an early stage look towards building their company and are either at the pre revenue stage, or are trying to find a product market fit. “That is when angels come into picture. Good angel investors can add value with their experience, network, etc.”

Entrepreneurs typically start seeking investors when they have a story to narrate and an early stage product to back it. “A compelling story that shares the inspiration behind the product, their own investment (effort and capital), experience of early adopters and growth potential of the product will get angel investors to consider the start-up seriously. It won’t work in one’s favour to seek investments before there is a prototype or early stage traction, as no one wants to invest in just a mere idea,” says Sachin Parikh, co-founder and CEO, Easy Roads Technologies, a travel tech start-up.

Getting an angel to back a start-up is challenging as it is not merely about the money. Chitransh Sahai, co-founder and director of logistics start-up GoComet, says the real challenge lies in getting marquee investors who understand the business and associating with them to add tremendous value to the business.

“Entrepreneurs need angels who are the perfect match for what they are building. Running a start-up is often like taking a road trip with no map of where you are headed. Being the founder, you have a team of young, energetic people looking up to you for answers. At such junctions, having an investor who brings in greater industry experience and believes in your vision is crucial. The real challenge is finding angels who add value beyond just funds to run a venture,” adds Parikh.

Individual angels invest anywhere from Rs 2 - 20 lakh in their personal capacity, but a group of 10-15 angels could invest from Rs 50 lakh - 2 crore, says Gagan Goyal, partner at venture capital firm India Quotient. “However, entrepreneurs need to be cautious about the fact that angels are individuals (unlike institutional seed VC firms) and they can get misguided by their personal views and preferences,” adds Goyal.

A tricky question for emerging entrepreneurs is how to seek out and approach the right angel.

Rao says entrepreneurs can first approach someone in their immediate social/business network who has access to angels. “Some of the most active angels get pitched by multiple start-ups every day. You need to first target those who have made investments in your vertical.”

According to Parikh, cold emails to prospective angels with a well-researched pitch can work wonders.

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Leo Mavely, founder and CEO of healthcare start-up Axio Bio Solutions, says entrepreneurs should be “well-prepared’’ before approaching any angel. “When you are asked difficult questions, the more answers you provide help increase investor confidence in your company. When an investor looks at a company, they look at whether the business is profitable, scalable and sustainable. You need to convince the investor that you have a good management team and a detailed business plan to achieve this,” says Mavely. Moreover, you need to engage with other entrepreneurs in the same vertical as they can connect you with the right people, adds Parikh.

Source: DNA Money

Individual angels invest anywhere from Rs 2 - 20 lakh in their personal capacity, but a group of 10-15 angels could invest from Rs 50 lakh - 2 crore, says Gagan Goyal, partner at venture capital firm India Quotient


Start-ups in India: How to seek and approach the right early-stage investor

Instead of chasing customers for home and auto loans, fintech start-ups have caught on the travel bug that has bitten Indian millennials. Start-ups in fintech and peer-to-peer (P2P) lending platforms are devising strategies of attracting more millennials towards small-ticket loans ranging from Rs 10,000 - 200,000, which are being mainly utilised towards experiential travel. Entrepreneurs say small ticket loans generally go towards home renovation, home decoration, home repairs, purchase of second cars/bikes, etc.. “But off late, the trend is tilting more towards utilisation of such loans for fulfilling travel ambitions,’’ say entrepreneurs.

“There is no doubt this segment (travel) is rising and more people are opting for this loan. Any customer would love a packaged deal which comes with financial support to go on a vacation, and this will also help them enjoy their vacation well,” says Bhavin Patel, co-founder and CEO, LenDenClub.

Millennials are increasingly investing in travel over purchasing big-ticket assets such as homes. The UN World Tourism Organisation predicts India will account for 50 million outbound tourists by 2020. India had 25 million outbound travellers in 2017.

Dhiren Makhija, co-founder and CEO, Cashkumar, says fintech start-ups are a popular source of travel loans due to their fast and efficient processes. “Normally, if you approach traditional financial institutions, it would take time for the process to fructify.

Start-ups base their appeal on processing applications faster and quick disbursals. We have at times approved and disbursed loans worth Rs 50, 000 within a day.”

Adds Patel, “If someone wants to go for weekend travel, the person can apply for our instamoney loan on Friday evening, and take a trip on Saturday. Often, airlines come up with sudden discounts on particular days and travellers look to seize the opportunity by taking quick loans from start-ups.”

Although people going for longer vacations or to expensive destinations take loans that are in lakhs, during long weekends, the frequency of very small loans ranging from Rs 3,000 � 10,000 increases significantly, observes Bala Parthasarathy, co-founder and CEO, MoneyTap.

The idea is to supplement their existing cash coffers, without causing any imbalance in their daily lifestyles, say experts. These are “impromptu loans for impromptu plans such as weekend getaways’’ and “customers do not like disturbing their monthly cash flows. Hence, a small loan for say two months where the interest charged ranges from Rs 70 - Rs 250 is a very comfortable option,” explains Parthasarathy.

For MoneyTap, about 10-15% of their total loans go towards funnelling the travel plans of customers. “Our annual interest rates start as low as 13% (1.08% per month) and the interest is charged only on the amount actually used, not on the total credit limit,” says Parthasarathy, who feels the digital loan market will increase to 50-60% in the next few years.

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Like MoneyTap, the travel loan disbursed by Cashkumar is also in “healthy double digits’’ comprising 13% of the total portfolio. “We definitely see a rapid increase. We will actively connect with travel influencers and provide promotional offers to their followers to enhance our travel loan component, ” says Makhija.

Travel loans comprised 9% of total disbursals for LenDenClub in 2017-18. Patel says in the current fiscal, travel loan disbursals already constitute 12% of their total disbursals. Going by this trend, will vacation loans become the primary thrust for the fintech start-ups in future? Experts say it may not be the best strategy for a start-up to focus on one segment.

“Travel loans could become a strong product with the right type of partner integrations. But personal loans, which fintech firms specialise in, are versatile in nature. It might not suit a start-up to restrict itself to only a limited set of customers when the personal loan category has a wider appeal. Unless there is radical innovation in the product, startups will not choose to become specialist travel loan providers,’’ says Makhija.

Instead of chasing customers for home and auto loans, fintech start-ups have caught on the travel bug that has bitten Indian millennials. Start-ups in fintech and peer-to-peer (P2P) lending platforms are devising strategies of attracting more millennials towards small-ticket loans ranging from Rs 10,000 - 200,000, which are being mainly utilised towards experiential travel.&nbsp;


Forget home loans, auto loans, fintech start-ups target millennials for these small-ticket loans

Overlooking the serene Fateh Sagar Lake in the travel hotspot of Udaipur is Devendra Garh, a two-storeyed white edifice embellished with Rajasthani architecture. Surrounded by manicured lawns, the place beckons travellers of all hues with spacious rooms, buffet breakfast, a mini gym, pool and other star-hotel facilities.

But we are a homestay, claims Ruchika Hiran, the lady who runs the place and lives in an adjacent structure in the same sprawling compound. She says her property is built to provide hotel-like amenities in a homely atmosphere, guarantees privacy as it carries a maximum of five rooms, offering pristine vistas.

Gone is the humble ambience of laidback rooms and home cooked regional food that once dominated the homestay concept. In its place are extra-large rooms with marble floorings, pendant lighting, four-poster beds and lavish interiors, accompanied with room service, concierge, and multi-cuisine restaurants.

“Homestays were initially considered a cheaper alternative to a hotel. Now they are considered as a more authentic alternative, thanks to Airbnb,” says Amit Damani, co-founder, Vista Rooms. He says homestays, or rather holiday homes, are today a visual treat to vacationers as they are replete with sprawling lawns, infinity pools, in-house theatre, yoga zones, on-demand chef, etc.

“For travellers, there is an aspiration and interest to experience how other people design their homes and the way they stay, ” says Damani.

Airbnb, which ties up with alternative accommodations, particularly homes of common people, has over 30,000 listings in India. Vista Rooms is attached to over 120 luxury homes in South Asia and plans to expand their network to over 300 homes in the next 10 months.

Experts say like the rise of Airbnb, there has a concerted effort by travel marketplaces and hotel aggregators such as MakeMyTrip, Cleartrip and Yatra to engage with homestays, more specifically luxury ones, that has further propelled the demand for homestays.

Says Ankit Rastogi, VP hotels, Cleartrip, “There is a certain section of customers who travel just for the sake of the experience, while some travel for the thrill and adventure and do not mind shelling out money to make it a memorable one. Such people value privacy and seclusion as much as luxury and comfort.”

Rastogi says the USP of luxury homestays is that while they provide all the services and facilities of any five-star hotel, they also provide privacy and flexibility that hotels seldom guarantee. “Scope for flexibility is greater with homestays as they do not cater to hundreds of guests like hotels. Hence homestays can customise offerings overnight to suit each guest,’’ adds Rastogi.

Moreover, unlike start hotels, luxe homestays add a heavy dose of personal touch to the traveller experience by the host of the home personally welcoming guests, telling stories of the home, introducing guests to the food they eat, say experts, who feel the potential for luxury homestays is tremendous in the country. India’s travel market is projected to grow at 11-11.5% to reach $48 billion by 2020, as per estimates.

Sensing the potential, budget hotel chain Treebo Hotels is seeking to jump onto the homestay bandwagon. Co-founder Sidharth Gupta says they would offer the variety and character of a home with the same assurance that Treebo stands for in hotels. “We carefully select homestays we list on our platform and ensure that basic elements of safety and comfort are taken care of. This helps the traveller get the best of both worlds.”

Living in a luxury homestay can cost upwards of Rs 5000 and can go upto Rs 15,000 a night inclusive of breakfast. However, the overall cost per head to stay at a homestay is 30% cheaper than staying at a luxury hotel, say experts.

Nonetheless, challenges abound for luxury homestays. Gupta says there is a lack of trust between guests and hosts and a certain anxiety that guests have about staying at other people’s homes, unsure whether hygiene and safety will be of acceptable standards. ‘’Likewise, hosts are hesitant about hosting strangers fearing damage to their property. This trust deficit should be bridged.”

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According to Rastogi, the appetite for homeowners to attract customers is above a certain stratum. “Even the price plays a role here. Certain luxury homestays charge 15,000 per night and that kind of price may demand an attraction provided one can value the experience and has been exposed to a certain type of a lifestyle.’’

Source: DNA Money

Overlooking the serene Fateh Sagar Lake in the travel hotspot of Udaipur is Devendra Garh, a two-storeyed white edifice embellished with Rajasthani architecture. Surrounded by manicured lawns, the place beckons travellers of all hues with spacious rooms, buffet breakfast, a mini gym, pool and other star-hotel facilities.


Family homes emerge as a great option in travel market

With pollution levels rising across Indian cities, beauty care brands are having a field day. Products specially designed to “combat pollution and its damaging effects” are flooding the wellness market off late. This marks a noticeable shift from skin lightening/whitening and tightening products that swept through the sector a while ago, playing on the obsession with fairness and “youthful appearance”.

As per the World Health Organisation global air pollution data, 14 out of the 15 most polluted cities in the world are in India, and this list includes New Delhi.

“In India, fairness or whitening products were once the craze, but the changing environment has forced people to think differently. Many people now seek products that take care of their skin or repair the effects of pollution.&nbsp;

Research in various fields has shown that pollution can cause age spots or hyperpigmentation of the skin. Thus, these days, the anti-pollution wave is driving the skincare market and brands are launching products because there is a demand for it,” says Doyoul Lee, country head, Innisfree India.

According to Natasha Sharma, consultant doctor, Kama Ayurveda, the needs of the beauty market change with the changing needs of the consumers. “Today’s consumer is aware, highly evolved, intelligent and extremely discerning, looking for products that are safe and kind to the skin.”

Brands have thus introduced pollution combating lotions, creams, cleansers and other products from ingredients as exotic as Jeju calamus, baicalin and perlite.

“Jeju calamus is an Asiatic aquatic plant collected from the South Korean island of Jeju. It has absorption properties and it absorbs pollutants such as fine dust and heavy metal. Calamus is known as a plant carrying purifying properties, besides its skin soothing and antioxidant benefits,” says Lee.

Anuj Mishra, educational manager, Kiehl’s India, says ingredients carrying antioxidant properties are the most common ingredients in pollution control products. “Baicalin, besides being an antioxidant, carries anti-inflammatory properties as well. Perlite is a natural mineral derived from volcanic rock and it gently sloughs away excess grime and grease along with dead skin cells.”

There also exist organically grown ingredients like noni extract, licorice extract and camellia japonica flower extract that neutralise the free radicals that are present in the environment, says Gautam Dhar, executive director and CEO, Divine Organics.

According to Sharma, indigenous Indian herbs such as neem, tulsi and turmeric are also well-known pollution combatants, with neem purifying the skin and eradicating toxins; and turmeric detoxifying the skin with its anti-inflammatory, blood purifying and anti-ageing properties.

The wellness and beauty care market in India, as per KPMG, was estimated at Rs.80, 370 crore in FY 2017-18. It has been growing at a compounded annual rate of 18%.

Mishra says health experts have long stressed the effect and impact of pollution on our overall health and the major role it plays in premature ageing. “At first, only a few brands launched targeted anti-pollution products. But now, as the market develops, we are seeing more brands introducing products specifically designed to protect skin from pollution.”

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CLEAN AND CLEAR SKIN 
-18%&nbsp; Compounded annual rate the segment has been growing at&nbsp;&nbsp; 
-Rs 80,370 cr&nbsp; Wellness and beauty care market in India, as per KPMG&nbsp;&nbsp; 
-Brands have introduced pollution combating lotions, creams, cleansers and other products from ingredients as exotic as Jeju calamus, baicalin and perlite

Source: DNA Money

Research in various fields has shown that pollution can cause age spots or hyperpigmentation of the skin. Thus, these days, the anti-pollution wave is driving the skincare market and brands are launching products because there is a demand for it,” says Doyoul Lee, country head, Innisfree India.


Profiting from pollution: Beauty brands making moolah as air quality worsens

The food start-up sector is going through some dramatic shifts and turns. It is time to look beyond Zomato, Swiggy, UberEats and Foodpanda, which deliver food from partner restaurants and make news for their frequent acquisitions and humongous fundraising deals.

With the Food Safety and Standards Authority of India (FSSAI) ordering these brands to de-list food business operators that are not FSSAI-compliant, the scenario is likely to get skewed towards a new bunch of start-ups that operate in the “healthy”, “organic”, “farm-to-fork” space by cooking their own set of “calorie counted” and “farm fresh” meals, and delivering the same in an optimised manner to health-conscious consumers.

Margins in cloud kitchen-based food start-ups are greater than 30%, which is much more than what food delivery start-ups that do not operate kitchens earn.

The growing awareness of healthy eating, consumption of pesticide-free organic food is another factor that is working in favour of newbies like Hello Green by Revofit, PurpleBasil and Second Nature.

While major food delivery start-ups appear to be taking a leaf from the playbooks of similar Chinese start-ups, there is enough room for parallel models, says Dhananjai R Kuttikad, founder, PurpleBasil, that serves “healthy food which tastes like fast food”.

The world is moving towards a preventive, rather than a curative approach to health, and the millennials are driving this trend, says Sunjay Ghai, founder and CEO, Hello Green by Revofit, which is into chef-curated healthy meals.

Like the Swiggys, Zomatos and Foodpandas of the world, these newbie start-ups also emphasise on timely delivery of their meals but carry the added bonus of themselves cooking and serving only “healthy” meals.

Ghai says delivery is critical for all phases to ensure freshness for the farm-to-fork model to work. “We do source a large amount of our vegetables directly from farms and then handle the logistics of bringing that to our delivery points and post cooking, we have our own fleet which delivers meals to our clients.”

According to Dipti Motiani, founder and chief product officer, Second Nature, which is into cold extracted fruit juices and veggie blends, since delivery is critical in farm-fresh food, the technology for post-harvest management is well developed, “making it possible to retain the natural taste and nutrition when appropriate packaging and temperate is maintained.”

Kuttikad believes that upcoming start-ups will need to focus on delivering a consistent and high-quality meal and innovating with the food and customer experience delivered. ‘’Innovation will need to happen&nbsp; new buying models such as subscriptions for repeat user increase, a fair pricing range and innovative food in terms of cuisines and choices.”

The food start-up space in India is estimated to cross $2.5 billion by 2021. The sector raised nearly $500 million in funds in the first eight months of 2018, compared to the $135 million raised in 2017.

The newbie start-ups are chalking out major growth plans both of doorstep delivery and being available at retail locations.

Hello Green by Revofit has been growing at 35% month on month. “We want half our revenues from digital orders and the other half through physical stores, shop-in-shop formats, etc. We aim to have 100 touch point for ready-to-eat within the next two years and also be present in 3, 000 locations in retail,” says Ghai.

Kuttikad says PurpleBasil has experienced an “8-10x” growth in revenues and is now looking to scale up.

“This involves franchising as well as expansion into verticals such as kids meals. We will be playing hard on the online+offline model.” Second Nature is targeting revenues of Rs 100 crore in the next five years. According to Motiani, the brand will produce a range of associated food products built around fruits/veggies that go beyond beverages.

Source: DNA Money

The food start-up sector is going through some dramatic shifts and turns. It is time to look beyond Zomato, Swiggy, UberEats&nbsp;and&nbsp;Foodpanda, which deliver food from partner restaurants and make news for their frequent acquisitions and humongous fundraising deals.

&nbsp;


Love ordering food? Why this should send you over the moon

With the festive season looming ahead, the battle between Flipkart and Amazon to outdo one another will blow out in full swing. The two ecommerce giants are expected to not only dish out the most attractive discounts and offers, but grab eyeballs through extensive marketing efforts. As per RedSeer Consulting, ecommerce firms are set to generate sales of $3 billion during the five day Diwali sale bonanza, of which Amazon and Flipkart will corner the majority. Experts feel besides their heavy marketing, Amazon and Flipkart hold another major advantage in terms of alliance benefits that smaller rivals do not.

"The recent EMI on Debit Card scheme or any cashback by wallets, etc. is easier for Flipkart or Amazon to offer. But other ecommerce players really don't have that kind of flexibility," says Harsh Shah, co-founder of e-fashion platform Fynd.&nbsp; But at such an exciting period, smaller ecommerce startups and brands remain unfazed by the noise that the big two will supposedly make, and are instead looking at upping their own game. Shivani Poddar, co-founder of online fashion destination FabAlley, says the heavy discounting by marketplaces like Amazon and Flipkart helps to grow the overall customer base as people plan their annual shopping around the festive season.&nbsp;

"This benefits all online retailers. As long as the product is relevant, the price is affordable and there are Diwali offers, everyone should be able to compete and sell well in this season."&nbsp; According to Ratnesh Jaiswal, co-founder and CEO of home and lifestyle products platform Kautage, while the ecommerce giants lure customers with heavy discounts, smaller players have a niche market of loyal customers who aren't swayed by excessive discounting. Jaiswal thinks a lot of customers may switch to shopping at brick-n-mortar outlets due to longer delivery timelines. "We appeal to both online and offline shoppers, which gives us an edge over other brands."&nbsp;

This Diwali season is predicted to attract over 20 million e-shoppers, compared to 13.5 million last year. Startups are looking to counter the Amazon/Flipkart juggernaut through various mechanisms. Firstly, by introducing a multitude of innovative products, intricate designs, sparkling colours and zesty themes. Online marketplace ShopClues is launching a festive range of in-house brands in various categories like fashion, electronics, home care, etc.&nbsp;

Secondly, startups have planned out customer engagement activities both online and offline at stores. Poddar says their other brand Indya, which is an ethno-fusion brand, assumes greater relevance during the festive season and hence ''we are doing a lot of in-store activations such as having a mehendi artist come during Karwa Chauth, while during Diwali and pre-Diwali, we will do promotions like fashion shows at our stores to increase footfalls. At the online level, there will be contests and we will reward customers with vouchers or credit points in return.''

Thirdly, startups are working out the metrics to enhance their delivery experience for customers in terms of quicker delivery and more engaging customer support. Shah says customer service is the key, and that is the reason "we have more than 35 percent repeat purchase per month, despite having a smaller user base when compared to Amazon or Flipkart. We are tightening our processes so that orders reach well before the occasions." Fynd is expecting a jump of 3x in their order volume with delivery time coming down by 25 percent. FabAlley predicts a 2x growth in sales during festive season each year, ''and we are targeting similar growth this year as well,'' says Poddar.&nbsp;

Moreover, like Amazon and Flipkart, other ecommerce players are also gearing up with discounts. Kautage is offering a flat 30 percent off on their entire product range, while expecting revenues to grow 5x during the period, says Jaiswal. While ShopClues is launching its own sale with a flat 50-80 percent discount across categories, says Ritika Taneja, head – category management.&nbsp;

SHOPPING CARNIVAL 
Like Amazon, Flipkart, other e-commerce players are also gearing up for thefestivities with discounts This Diwali season is predicted to attract over 20 million e-shoppers, versus 13.5 million last year.

Source: DNA Money

With the festive season looming ahead, the battle between Flipkart and Amazon to outdo one another will blow out in full swing.&nbsp;


Diwali sale bonanza: Shoppers set to pay some $3 bn to Amazon, Flipkart

Lakshmi Menon works as an "executive’’ in the marketing and communications department of her IT-service company. To reach her chief marketing officer (CMO), she has to follow a procedure which entails first seeking solutions from her immediate boss, whose designation reads "senior executive’’ and then the next boss, namely assistant-manager, followed by the manager, "group head’’, "vice president (VP) and then finally the CMO.&nbsp;

For 25-year-old Menon, this hierarchical ladder is reflective of a complex structure that ultimately works to prevent an "executive-CMO’’ interface. She says such rigid structures demerit any talk of employee engagement or open-door collaboration, especially in her MarCom team that is only 12 members strong.

Menon’s grievances open out a key question of the millennial generation – should companies adopt a flatter, non-hierarchical structures to engage better with employees?

"Flatter systems have certain merits,” says P PremKumar, SVP and head –HR, Lakshmi Vilas Bank. 
Experts say flatter systems carry a number of advantages, especially in today’s era of remote workplaces and flexi-working.

Firstly, non-hierarchical structures help to avoid supervisory role, resulting in huge cost savings for the company, says Kumar. "It improves employee engagement, effective communication, quick decision-making, transparency and instils a higher degree of responsibility in the employee,’’ says PremKumar.

Furthermore, employees in flat structures gain in greater visibility, with their work gaining better recognition, says Shreyans Solanki, group head – HR, CASHe. “Such systems also carry a better response time which is integral to an organisation’s ability to win customers, both external and internal.”

Globally, Google, software developer Valve, and Tata Motors back home are amongst the many companies that have "flattened out’’.

But experts feel non-hierarchical structures are more workable in start-ups and organisations with limited headcounts.

Sriram Vaidyanathan, chief human resource officer, BankBazaar.com, says flatter systems are the hallmark of start-ups, which have little room for formalities and hierarchy. “The number of challenges and the frequency with which they surface are much higher in a start-up as compared to established companies. This provides employees with many more opportunities to contribute, make their mark and grow. So having a flat organisation makes sense.”

But as organisations grow, rigorous hierarchies invariably come into play. “Large organisations have taller structures for administrative purposes as one individual cannot monitor thousands or lakhs of employees. However, even such organisations tend to follow flat structures when it comes to employee communication,’’ says PremKumar.&nbsp;

But experts say in bigger organisations, a pyramid or matrix structure of reporting is essential as, without hierarchy, any boss could get overwhelmed. Companies like web-hosting service GitHub and online shoe retailer Zappos were one of the earliest to adopt and later abandon the 'flat structures' as it impeded their growth. In fact, post a flat structure, 14% employees of Zappos left the company.&nbsp;

International best practices in HR mandate having no more than 10 direct reportees per boss. Having more than two handfuls of individuals reporting to a manager can cause chaos on deliverables, accountability and delay decision-making, say experts. A Deloitte study on Global Human Capital Trends found that only 14 percent of executives believe their organisations were ready to redesign in an effective manner.

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A flat structure in a large organisation could also be disadvantageous to employees, as the employee could be at the mercy of a single manager and will also ‘’fail to get a more rounded feedback, guidance and mentoring; all of which is essential,” says Solanki, adding that however today, ‘’most organisations ensure an individual does not have more than two supervisors to retain focus, accountability and simplicity.’’

MATRIXED TO FLAT 
Non-hierarchical structures help to avoid supervisory role, resulting in huge cost savings for the company

Flat structure may turn disadvantageous, as the employee could be at the mercy of a single manager

Source: DNA Money

&nbsp;

International best practices in HR mandate having no more than 10 direct reportees per boss. Having more than two handfuls of individuals reporting to a manager can cause chaos on deliverables, accountability and delay decision-making, say experts.&nbsp;


Death of the boss pronounced? Check out what the future has for you 

The Chinese are establishing a strong foothold in the India start-up story. Just last week, ride-sharing unicorn Ola received $50 million from Hong Kong-based Sailing Capital and China Eurasian Economic Co-operation Fund. A year ago, Ola had raised $1.1 billion in a round led by China’s Tencent Holdings, Japanese Softbank and others.

Ola is not alone. Other unicorns like Flipkart and PayTM, as well as a budding start-up such as micro-lending platform KrazyBee, are all recipients of Chinese largesse. Investments from Chinese funds stretch across e-commerce, fintech, transportation, healthcare, logistics and travel. Electronics giant Xiaomi is planning to invest Rs 6,000 - 7,000 crore across 100 Indian start-ups over the next five years, while Tencent has spoken of investing $5-15 million in early-stage Indian start-ups. “An influx of Chinese funding and entrepreneurial skills can boost the ecosystem in India,” says Apurva Damani, managing director, Artha India Ventures.

Although interest from Chinese investors started roughly from 2015 onwards, with Alibaba participating in funds raised by SnapDeal and PayTM, Chinese investments have gathered momentum off late. Tracxn data points out that in 2017, $5.2 billion was invested by Chinese companies like Xiaomi, Fosun, Baidu, Tencent, Alibaba into Indian start-ups. This marks a huge jump from the $930 million that Indian ventures received from China-based firms in 2016.

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Debanshu Khettry from law firm Leslie &amp; Khettry says Chinese firms are scouting for growth opportunities in India for primarily three reasons. “Firstly, India is the fastest growing economy. Second, there is a growth slump in China. Lastly, there is excess capital in China.” According to angel investor Sidharth Rao, co-founder and CEO, Dentsu Webchutney, most Indian VC funds do not have excess capital to make deep follow-on investments.

“The Chinese in that sense are very large in size. Which is why in most late-stage fundraising, when cheque sizes are upwards of $100 million, Chinese funds step in.” Experts believe Indian start-ups have a lot to gain from investments from across the border, as Chinese investors would bring in knowledge, expertise and the vision of building start-ups that impact millions of people.

Khettry says China and India have a lot in common in terms of consumer spending, market behaviour, income levels and demographics, and thus Chinese investors are better-placed to help with the dynamics of the India market than, say, investors from the US or Europe. Moreover, Chinese investors are more patient and bullish and do not have much exit pressure; all of which is beneficial to Indian start-ups, feels Harsh Shah, co-founder, Fynd.

Agrees Damani, who thinks that the Chinese are focused on building sustainable businesses with a long-term outlook and invest “patient capital’’, providing start-ups with “greater visibility for follow-on rounds and potentially large exits.” Also, Chinese investors can provide technology access and best practices from their unicorns.

“Both countries have large populations with first-time mobile users. But only 25% of Indians are mobile internet users, compared to 50% of the Chinese. Indian start-ups can learn a lot from Chinese start-ups’ vision for scale and their fast speed of implementation,’’ says Damani.

For instance, Tencent can provide valuable experience from running WeChat to Hike Messenger in India, says Khettry. But political tensions do exist with China. And this could have an impact, feel experts. Khettry says any start-up would want a stable partnership with its investors.

“Political and economic stability within the investor’s country and friendly ties between nations play a role in determining the attractiveness of the investor. But other considerations like tax and policy incentives being offered may also play a role in determining the benefits a start-up may ultimately receive on a long-term basis. Foreign funding also vexes issues stemming from angel tax faced by domestic investors in India, and helps plug any tax leakage upfront,” Khettry says.

The Chinese are establishing a strong foothold in the India start-up story. Just last week, ride-sharing unicorn Ola received $50 million from Hong Kong-based Sailing Capital and China Eurasian Economic Co-operation Fund.


Priyanka Golikeri