Small Business – Dutch Uncles

Small Ticket Loans : New Avenues for Fintech in Small Cities

Shalmoli Sarkar — Wed, 26 Jan 2022 08:35:13 +0000

The pandemic has altered the consumer lending behaviour which has shrunk the ticket size of loans with most loan requests coming from blue and grey collar workers and millennials. According to the joint report by credit bureau TransUnion Cibil and Google the disbursal of small ticket loans has been 70 percent with most borrowers belonging to tier-II cities and smaller towns, and a majority of millennials requesting retail loans. Since September the demand for small ticket loans from blue and grey collar workers and gig workers rose by 25-30 percent and the average ticket size loans have dropped by 10-15 percent, capping the maximum ticket loan upto Rs 25000. The tightening of unsecured credit policies is the reason behind the inclination for small-ticket loans. The lending space in India is devoid of formal sources of credit for the lower-income groups, but with new financing option like BNPL people from remote regions are now availing small-ticket loans which are good news for the fintech players.

Buy Now Pay Later (BNPL): Preferred short term financing option

The buy now pay later ( BNPL) – a short-term financing option for small ticket loans has gained popularity in the pandemic. The user base for BNPL financing option is expected to become 80-100 million by 2026 surpassing the user base for the credit cards is projected to become 75 million, according to a report by BCG. The BNPL market is poised to be worth $45-50 billion by 2026, according to consultancy firm RedSeer.

This short financing option is gaining ground among borrowers since it offers short-term loans without a credit history, and to individuals that belong to lower-income and self-employed individuals. Unlike credit cards, BNPL does not have charges such as joining fees and annual fees. In addition to this BNPL loans have an average transaction size of around 300-600 with zero interest charges.

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According to the joint report by credit bureau TransUnion Cibil and Google the disbursal of small ticket loans has been 70 percent with most borrowers belonging to tier-II cities and smaller towns.

Small ticket loans are speaking opportunities for fintech players in smaller cities

Conventionally the loans offered by banks were for three purposes i.e.personal loans, home loans, and salary overdrafts. The pandemic has tightened people’s purses on discretionary spending due to job losses and paycuts, in which the fintech players are sensing this to be an opportunity to offer credit via BNPL for purchases in online grocery, e-commerce and food delivery. Fintech players like EarlySalary,Dvara Money, NIRA and Bueno Finance are growing steadily in this space with new customer acquisitions monthly with a growth rate of 25-30 percent. Other fintech players offering BNPL such as Simpl, Lazy,PostPe are acquiring customers aged 18-25 years who are novices to the banking system and at the early stage of their credit journey.

The small ticket loans space holds ample opportunities for the fintech players as advancement in technology and digital access is helping the players locate, reach and engage with new customers from smaller cities and towns. As per the joint report of TransUnion Cibil and Google, 77 percent of all retail loan enquiries were from tier-II cities and beyond. In addition to this online searches for loans from non-tier-I cities went up by two-and-a-half times between 2017 and 2020.

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Accepting Payments through Cryptocurrency, A Reality Anytime Soon?

Shalmoli Sarkar — Tue, 25 Jan 2022 08:35:13 +0000

Cryptocurrency or digital currency- a word that gained immense buzz globally and has invited enough pessimism from sceptics about the possibility of fraud, is now being considered by global small businesses as a mode of accepting payment. In 2022, small businesses across nine countries namely Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, United Arab Emirates, and the United States will be exploring cryptocurrency for payment. According to a study by card company Visa on taking a sample size of 2250 small businesses, it found that 24 percent i.e. 540 small businesses have plans to embrace payments through bitcoins.
The acceptance of cryptocurrency as a payment mode by global businesses can be attributed to no involvement of banks giving less complications that will also aid businesses to scale internationally. The benefit of accepting payment in cryptocurrencies might increase the sale of a business as it will attract crypto investors who prefer such payments. The small business can ace the first-mover advantage with cryptocurrency payment to attract more customers and have hassle-free transactions.

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According to a study by card company Visa on taking a sample size of 2250 small businesses, it found that 24 percent i.e. 540 small businesses have plans to embrace payments through bitcoins.

Getting paid in cryptocurrency

There is an increasing trend to accept payments in crypto for work. Several young engineers and freelancers are working with global companies where their salaries are paid in cryptocurrency. This eliminates the need for a company to pay transaction costs for bank transfers but it has a flipside. Accepting salaries in digital currency can attract legal implications as it violates Foreign Exchange Management Act (FEMA) as these constitute cross-border payments in a currency not recognised by the Reserve Bank of India.
The market for accepting crypto payment has potential since India is a developing economy, where much emphasis is laid on digitisation, making young Indians early adopters of digital currencies. According to a study by Chainalysis, India has close to 15 million crypto investors and is the world’s second-largest country for crypto adoption.

Cryptocurrency transactions in Indian businesses anytime soon?

Indian businesses embracing payments in cryptocurrency seems to be a distant possibility as the government plans to regulate resulting in a ban on private digital currencies.
In addition to the above, the challenge to accepting crypto payment lies in its price volatility which makes its value unpredictable. For instance, when Bitcoin was introduced in 2009 its value was in pennies, and in 2017 its value ballooned up to $19,172 per coin.
Indian businesses are already vulnerable to cyberattacks since its pivot to remote working and digitisation. Although crypto transactions can evade threats such as stolen credit card numbers, they cannot be said as safe and can get hold of users’ wallets. This is dangerous for use in transactions unless it is a fiat currency. A fiat currency is a government-issued currency that is not backed by a commodity such as gold. Such currencies are existing in American and European economies, whereas India is yet working to introduce a basic central bank digital currency ( CBDC).

Lastly, even if the Indian government launches its digital currency, the adoption of it by the businesses would depend on technical capabilities, awareness about new age-deep technologies including blockchain and crypto other than artificial intelligence, machine learning, and the internet of things.

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Telangana, A Favoured Destination For Start-ups

Aakash Sharma — Fri, 06 Aug 2021 05:35:09 +0000

Telangana, India’s youngest state, is becoming a major investment destination for large companies and a hotbed for start-ups. The state has created several promoters for aiding and promoting start-ups, including the creation of business incubators such as T-WORKS, T-HUB, RICH, T-Fibre and TASK.

Telangana has emerged as a preferred destination for large corporations also as the state aims to provide transparent tax policies and approve projects quickly. Major players in the e-commerce, retail and aviation industries have set up facilities or announced plans to expand their operations in the state.

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The government strongly stimulates production, facilitates project approval and promotes a culture of entrepreneurship. The Telangana State government acts as a catalyst in creating a stimulating environment for innovators and start-ups.

According to the E&Y white paper on “Hyderabad-The emerging Startup Hub in India”, the state has a unique business model that can develop a robust business environment and foster an innovation-driven economy. It also highlighted that Telangana is working hard to maintain a solid entrepreneurial ecosystem built over the years and looks forward to consolidating its current position as the country’s preferred destination for start-ups.

Telangana’s state-of-the-art resources for budding entrepreneurs

Hyderabad has a first-rate infrastructure for incubation and co-working spaces. The second phase of the famed T-Hub will cover 3,000,000 square meters, with two levels dedicated to supporting a socially innovative ecosystem for more than 200 start-ups. The state government plans to set up separate social innovation outposts in Nizamabad, Warangal, Karimnagar, Mahbubnagar, and Khammam. The outreach to these tier-II cities will ensure that urban and rural institutions can jointly benefit from the network of Telangana’s service ecosystem.

Multi-channel and wide-ranging scope for all entrepreneurs

Telangana has conceptualised InnoLabs as a place where individuals and organisations can work together to overcome the social challenges of entrepreneurship. InnoLabs will provide the infrastructure for meetings and collaborations of different outlooks from the industry. The state government is also planning to create a Telangana Social Startups Network to encourage all key stakeholders such as start-ups, incubators and accelerators to share information and jointly develop innovative solutions.

The state has set up incubators WEHub and T-Hub, and has a robust intellectual property (IP) support system to help start-ups. Its blockchain policy has made Hyderabad one of the top ten blockchain cities in the world. The state has also launched a leading investment fund called the Telangana Innovation Fund (T-Fund). In addition, it has created a T-SEED Fund worth Rs. 250 crores to finance start-ups and unique private sector initiatives.

Small businesses and entrepreneurs can take benefit of this rising business ecosystem

Hyderabad has about 183 fintech companies, making it the fourth-largest fintech ecosystem in India after Bangalore, Mumbai and New Delhi. The city accounts for 42% of the total fintech in India and is mainly engaged in financing solutions, P2P lending, financial planning, credit scoring systems and billing solutions.

Tech entrepreneurs and business enthusiasts from all walks of life should take advantage of these state benefits to operate their company vehicles. Potential entrepreneurs, especially those in the fintech sector, can take advantage of fledgling support systems such as the Hyderabad FinTech Forum (HFF), including start-ups, incubators, corporations, regulators and investors. All start-ups and small businesses in Hyderabad enjoy government support alongside the presence of the best IT talents. This certainly bridges the financing gap conceivable in India’s current economy and gives companies a platform to succeed.

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Tamil Nadu Start-up and InnovaTN Mission (TANSIM) Explained

Anju Nambiar — Thu, 05 Aug 2021 05:35:12 +0000

Indian states are creating exclusive programmes for start-ups and budding entrepreneurs. Whether its Tamil Nadu’s Electric Vehicle Policy or Telangana’s MSME Prerna programme, Indian States want to attract investor interest and are in a bid to transform their state into the biggest start-up hub in the country.

What is the Tamil Nadu Start-up and InnovaTN Mission (TANSIM)?

The Tamil Nadu Start-up and InnovaTN Mission (TANSIM) which is branded as StartupTN is an exclusive platform for Tamil Nadu based start-ups by the state government. It is aimed at supporting start-ups by bringing together stakeholders including mentors, investors, incubators, ecosystem partners, etc., to accelerate start-up growth. StartupTN was established as a ‘Section 8’ (charitable/non-profit) company under the MSME (micro, small, and medium enterprise) department in March of this year. The sole mandate of the mission is to implement the ‘Tamil Nadu Start-up and Innovation Policy 2018-23’ by the Tamil Nadu government.

Benefits for Start-ups, Micro, Small and Medium Enterprises

Through TANSIM, the Tamil Nadu government is providing concessions to start-ups in the state, based on recommendations by the state’s Mission Director. It provides a fillip to micro, small and medium enterprises through various support schemes and programmes. TANSIM is creating an enabling ecosystem for start-ups in the state. Registered start-ups will obtain concessions for procurements below INR 20 Lakh in value. This implies that registered start-ups will get exemptions from payment of Earnest Money Deposit. They will also be exempted from conditions of poor turnover and prior experience. Start-ups will also enjoy waivers on tender cost.

TANSEED and how it is related to TANSIM

TANSEED (Tamil Nadu Start-up Seed Grant Fund) is a seed grant under TANSIM which start-ups can apply to avail seed grant of INR 10 lakh for each start-up. Taking place in the months from July to September of this year, applications are open for start-ups and the last date to register for this second edition of TANSEED, dubbed TANSEED 2.0 is the 20th of August. 20 start-ups stand a chance to win the seed fund grant. TANSEED is an initiative that’s promoting innovation and the start-up culture among budding entrepreneurs.

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TANSIM is creating an enabling ecosystem for start-ups in the state. Registered start-ups will obtain concessions for procurements below INR 20 Lakh in value.

What’s in it for me?

TANSIM is an exclusive forum for start-ups who are already registered in Tamil Nadu. Budding and aspiring entrepreneurs who are interested to avail the benefits of this programme must be willing to register their start-up in the state of Tamil Nadu. StartupTN has its own online portal and official website where all the details and information about the mission are readily available for stakeholders wanting to know more about it.

These initiatives by the Tamil Nadu government are aimed at transforming the state into a Knowledge Capital and Innovation Hub as more start-ups continue to be added to its beneficiary pool. Through this mission, the Government of Tamil Nadu wants to be a part of each stage of the start-ups journey right from Ideation, Validation, Early Traction to the Scaling stage. By joining the mission, you will be contributing towards fostering the entrepreneurial ecosystem in the State while becoming a part of the state-wide start-up hub.

Prominent investors, accelerators and potential partners like Yes Bank, AWS Activate (Amazon Web Services program for early-stage start-ups and entrepreneurs) and Freshworks for start-ups (a start-up accelerator program by Freshworks, a unicorn enterprise tech SaaS start-up) are a part of this programme.

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Rules to Acquire – Mergers and Acquisitions in India

Aakash Sharma — Fri, 30 Jul 2021 05:35:11 +0000

Acquisitions and mergers are a major route for many start-ups, SMEs and even established companies in their business life. The origin of many of today’s most prominent companies can be traced back to this business practice – Disney/Pixar and Marvel, Exxon and Mobile, and Google and Android, among many others.

In India, various regulatory frameworks manage mergers and acquisitions (M&A) activities. The objective of these laws is to build the process of M&A more transparent so that it will protect the interest of shareholders and entities involved.

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The economic development since 1991 has resulted in a drastic change of economic environment for the commercial sector in India, enhancing the market for commercial control categorized by M&A and other varieties of corporate reformation.

Regulatory Framework for Mergers and Acquisitions

The Companies Act, 2013

The Companies Act is the primary law applicable to all companies registered in India. All business transactions, including mergers and acquisitions, must comply with the Companies Act of 2013.

Securities Laws

The securities in the Indian market are subject to the rules and guidelines issued by the Securities and Exchange Board of India (SEBI). M&A transactions are also dealt with within SEBI’s Substantial Acquisition of Shares and Takeovers amendment of 2018.

Foreign Exchange Management Act (FEMA), 1999

Foreign Exchange Management Act (FEMA) guidelines state that any exchange that intends to settle mergers in India must abide by FEMA guidelines. FEMA guidelines also require the supervision of full-time responsible persons such as administrative staff and secretaries who are members of the companies, as the companies involved in such cross-mergers have a testamentary liability.

Major technology acquisitions in recent years: Flipkart, eBay and Myntra

In 2017, Flipkart raised $ 1.4 billion from global technology leaders eBay, Tencent and Microsoft, announcing a merger with the Indian branch of eBay. eBay invested $500 million in cash and sold their business to Flipkart in exchange for an equity stake in the e-commerce giant. In addition, Flipkart acquired Myntra in 2014 for $300 million. The move consolidated Flipkart’s position in the e-commerce market and placed it on the global map of tech start-ups that “made it big.”

2021 Byju’s Acquisition Spree

Since 2020, edtech decacorn Byju’s has been on an acquisition spree. In July 2021, Byju’s acquired Great Learning, a professional and higher education company, for $600 million, and US-based digital reading platform Epic for $500 million. In April 2021, it bought out Aakash Education Services for a whopping $1 billion, affirming its space in the traditional coaching segment. Most famously, in August 2020, Byju’s bought ‘coding for kids’ edtech start-up WhiteHat Jr for $300 million.

Byju’s acquisition spree is helping the firm increase its lead over its competitors such as SoftBank-backed Unacademy, Simplilearn, UpGrad, Vedantu, Amazon Academy and traditional education institutes.

How do small businesses and start-ups get affected by acquisitions and mergers?

Many financial and business experts argue that acquisitions by big corporates exhibit their predator behaviour as they buy out the competition to maintain a monopoly. And that seems true in many cases; case in point, Facebook’s acquisition of Instagram and WhatsApp. It made Facebook the world’s biggest social media giant with transcontinental reach and access to billions of people’s data.

But in many cases, acquisition mergers are beneficial too, especially for small businesses and start-ups. When a small business gets acquired, it either gets full money for the stake or gains access to its parent companies’ vast resources while maintaining authentic leadership. There are many examples of this, like Tata Son’s multi-million stake in health tech start-up CureFit, Flipkart’s acquisition of Myntra and others. This helps the business grow and proves beneficial for both, the mega-corporate and the new company, which can now have financial stability and support to fall back on.

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Blunders to Avoid When Relocating to US

Shalmoli Sarkar — Thu, 29 Jul 2021 10:30:09 +0000

India is home to around 38000 startups making it the third-largest in the world. Though it is giving birth to unicorn startups and there has been a significant development of incubators and monetary initiatives to help seed the entrepreneurial spirit, it still has to travel a long road to create a more startup-friendly ecosystem.

Why do startups want to relocate to the US?

The fuel of any venture to begin is to secure funding, where the path to get one is a bumpy one. This is because in the US the startups can receive funding based on a strong business proposition made without revenue or a set business model. Startups there atleast get the opportunity to prove their value proposition and test products before releasing them to the market. Whereas, on the contrary in India the access to funding is limited resulting in startups stressing on monetisation, revenue, and lean operations even though having an interesting business concept on hand.

Startups in India receive funding only when they have a working product and a proven business model with its proof being revenue. Without any cushion of funding, many Indian startups find it imperative to relocate their business to the USA. Moreover, the cost of customer acquisition for an Indian startup to operate on American soil is inexpensive, since the consumers’ loyalty and repeat business depends upon a simple mantra of superior customer service, this strategy will help to generate revenues first. The startups, especially those operating in enterprise tech, find it difficult to scale their business in India since several family-run businesses find it hard to trust the solutions of a young startup. Also India lacks funding for young technology startups in India that in the US is abundant.

Much said about the pros of relocating business to the US, here are some of the blunders you might make while relocating the business there.

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In the US startups can receive funding based on a strong business proposition made without revenue or a set business model.

The Top 5 Blunders to Avoid While Relocating Business to the USA

Insufficient Market knowledge: The presence of tech moguls and customers entices startup founders to bring something new to the market and makes it the largest playing ground. But the first mistake which Indian entrepreneurs tend to make is which city to choose? While entering a new market the entrepreneur is initially a salesperson and needs to meet with the customers and investors of that region to gain their early attention before relocating full time. For instance, If the startup is in enterprise tech then Silicon Valley is the city; if the startup is in health tech then North Carolina is a better city.
Not knowing the marketing methods: This goes without saying that cultural differences are significant and it is reflected in marketing content. The USA is a country of low context culture meaning that they communicate information indirect, explicit, and precise ways. Entrepreneurs need to research more and look at similar ads for products similar to yours. If we are opting for print marketing for a startup based in Silicon Valley, then the approach should be to connect with the tech publications and media.

Not Knowing about the costs and taxes involved: The cost of relocation from one country to another is a must to consider as there are several hidden or secondary costs involved. Relocating to a new location would also mean considering the overhead costs that will impact the routine business operations. Things like lease, mortgage payments, utilities, shipping and wages will impact the cost. When moving to new countries, it is important to assess the tax situation of your new location. Depending on where you are relocating, taxes could have a huge impact on the profitability of your organization.

Not considering the growth capabilities: The entrepreneurs must think about the long-term scenario of the business. For instance, if the business is on a growth path and has plans to increase the employee size in the next 3 yrs, then it is important to assess the labour pool to support the growth of the business. It is easy for an enterprise tech startup or an e-commerce startup to find developers, digital marketers, etc. but would be difficult to find professionals in farm science for agritech startups. Growth capabilities do not limit to human capital but also apply to the growth of the facility space or even the capacity of local shipping companies.
Not doing a check on the scope of products and services: Say here we take a SaaS-based enterprise tech startup where there can be two possibilities i.e. create a better product that is already available in the market like developing better CRM solutions or better accounting software or marketing automation tools. The second possibility lies in building something in a completely new category which can be risky with its pitfalls disguised as opportunities. The companies in the first possibility do not require to relocate, it can be started in India with local hires and talent and selling high-quality remote services to middle-sized companies around the globe. The second option is ideal for targeting the more advanced SaaS software market in the United States.

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Reinstating Retail and Wholesale Trade under MSME

Aakash Sharma — Tue, 27 Jul 2021 07:25:08 +0000

Four years after excluding retail and wholesale businesses from the micro, small and medium enterprises (MSME) segment, the government has recently reinstated such trades in the category, making entities eligible for priority sector funding and a unique liquidity scheme from banks. As per the Ministry of Micro, Small and Medium Enterprises, the move is set to benefit 2.5 crore enterprises that function in retail and wholesale.

But, before getting into the current definition of MSMEs and what benefits will the businesses get now, let us first understand when and why wholesale and retail trades were removed as MSMEs.

When were retail and wholesale businesses excluded as MSMEs?

According to the current definition of MSMEs, only manufacturing and service sector businesses qualify as MSMEs. In 2017, the government announced that retailers and wholesalers would no longer be classified as MSMEs.

The Micro, Small & Medium Enterprises Development (MSMED) Act, passed by the government in 2006, defined small business businesses as function in the “manufacturing and service sectors”.

Why were these businesses excluded four years ago?

The MSMED Act included retail and wholesale companies in the definition of MSMEs under the 2006 Act. But the centre removed them from the list in 2017 because, according to the government, no retail and wholesale trade directly involves manufacturing or service aspects of the business. Now, after four years in 2021, the Union government has issued new guidelines to reinstate the retail and wholesale trades as MSMEs.

What does ‘reinstating retail and wholesale traders under MSME’ actually mean?

The inclusion of these trades as MSMEs means that businesses in this sector, left out from the benefits available for MSMEs, will now have access to them. Under the revised guidelines, the government will include retail and wholesale trades in MSME categorisation. This will extend the benefit of priority sector lending to them.

What benefits will the retail and wholesale businesses get as MSMEs?

Many government schemes support MSMEs to make it easier for them to access resources. The government even set up a unique loan programme for MSMEs to help tackle the effects of the COVID-19 pandemic. As a result of the recent inclusion plans, wholesalers and retailers will be able to benefit from these schemes.

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A great benefit that retail and wholesale traders can now reap is priority sector lending (PSL). Loans to the MSME sector are included in the priority sector lending. Retailers and wholesalers will now have access to this credit loan priority.

They can now also get access to the Udyam registration portal. Udyam was launched last July and is a free and paperless platform for self-promotion that enables new and existing MSMEs to register simply with Aadhaar numbers.

A move towards the sector’s formalisation

Businesses that gain the MSME status by registering on the government portal are entitled to several benefits, ranging from interest subsidies on bank loans to direct tax relief and credit relief. About 2.5 crore wholesalers and retailers are expected to benefit from the government’s decision to bring them back as MSMEs.

According to the National Sample Survey 73rd Round (2015-2016), there are approximately 2.5 crore MSMEs in India. Uttar Pradesh reportedly has the most SMEs with 90 lakh companies, followed by West Bengal with 88.7 lakh such enterprises.

With around 11 million employees, the MSME sector is the second-largest producer of jobs in India after agriculture. It contributes 30% to the national GDP and accounts for 48% of exports. The inclusion of retail and wholesale encourages the formalisation of this sector through policy-driven change led by small businesses, government assistance and funds access.

Suggested plan and next steps for MSMEs

The new members of the government-recognised MSME sector will now have access to numerous government schemes designed for such businesses. The disruption by COVID-19 has left all sorts of firms scrambling for resources. Now, companies from the retail and wholesale segments, including the small Kirana shops and micro-retail outlets from small towns, can apply for government aid in times of financial hardship.

Along with the existing MSME entities like manufacturers, service providers, exporters, ancillaries, retail and wholesale businesses can now have access to a new formal network in addition to the recent financial avenues. The government also recently increased the corpus of the Emergency Credit Line Guarantee Scheme (ECLGS) scheme to Rs. 4.5 lakh crore. Retail and wholesale businesses can apply to this credit scheme and avail some liquidity benefits to keep going in the uncertain times worsened by pandemic challenges.

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Being a Part of YouTube, This is How SimSim Can Achieve its Mission

DU Desk — Sat, 24 Jul 2021 08:35:07 +0000

As smartphones and data plans become more affordable, the gambit of online shopping will penetrate deeper into the tier-2 and tier-3 cities of India. The new internet shoppers from India are craving an interactive seller-led experience resembling the offline e-commerce experience. The buying decisions of online shoppers today are largely influenced by product video demonstrations which are engaging. People find online videos to be the primary source of information regarding a product or service review, its functioning, etc.

To align with the new shopping behaviour, the e-commerce giants Amazon and Flipkart have introduced their respective ad-supported video streaming services where users can watch video content on products and services, translating to increased sales since consumers will buy what they see.

According to FICCI-EY Media and Entertainment Report 2021, the number of video viewers has increased by 15% in 2020 to reach 468 million and this number is expected to grow to 650 million by 2023.

Social commerce platforms like SimSim -a Google-backed firm, that targets shoppers from India’s small cities and towns are not behind in video-based shopping as well. The platform leverages the power of video content and micro-influencers to attract customers and has been recently acquired by YouTube.

YouTube acquiring Social Commerce Startup SimSim

Since consumer social platforms like Instagram, Facebook and YouTube cannot meaningfully monetise through advertising finance models, this acquisition will benefit YouTube to build a new integrated shopping experience that will allow viewers to buy products they see in videos from trusted creators and will offer new revenue streams for micro-influencers that will increase retention on its platforms and expand the user base of YouTube.

SimSim in its short span of two years in 2020 has acquired $17 million in its Series B financing round.

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According to FICCI-EY Media and Entertainment Report 2021, the number of video viewers has increased by 15% in 2020 to reach 468 million and this number is expected to grow to 650 million by 2023.

How this Acquisition will benefit SimSim

Leveraging YouTube’s expansive reach of 450 million users in India, SimSim plans to help small sellers and brands by showcasing and selling their products using the power of content creators on YouTube’s platform will aid to increase the reach and customer base of SimSim in remote parts of India.

Video Marketing and Micro-influencers: The game-changers in e-commerce

Here are the reasons why social commerce platforms are widely using product videos and micro-influencers in their platforms:

Major Influencer in purchasing decision

Informative and demonstrative product videos will influence customers in making purchases due to the better representation of a product’s unique selling proposition.

Builds Customer trust and credibility

Appealing video content from micro-influencers builds trust and credibility among customers as the audience perceives them to be one of them and easily connects with their ideologies. This also increases a brand’s website conversion and traffic.

Niche Audience and Loyal Brand advocates

Micro-influencers, through their unique content creation style, target a narrower section of the audience, where the engagement rates are higher.

The best advertisement a brand can receive is from those individuals who are already using the products. Micro-influencers fall in these categories and this makes them loyal brand advocates. Sellers on social commerce platforms do not need to maximise efforts to develop the brand relationship from scratch.

What Lies Ahead for the Social Commerce Startups

According to a report from Bain & Company, the overall social commerce market is expected to grow to $16-20 billion by 2025 from a $2 billion market in 2020. The tailwinds to the growth of social commerce startups will be a deeper reach of the internet and increasing aspirations for a better life. Social commerce will leverage the emerging number of micro and vernacular influencers to showcase small sellers and business products on online platforms through interactive video content.

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All You Need To Know About FiiRE

DU Desk — Sat, 24 Jul 2021 03:35:09 +0000

We are no stranger to the fact that the pandemic has impacted small businesses and startups, creating a negative environment for aspiring entrepreneurs. To help India retain the title of world’s third-largest startup ecosystem, several states are launching their incubator programmes to encourage startup ideas from tier-2 and tier-3 cities right from their infancy to maturity.

Recently, The Department for Promotion of Industry and Internal Trade ( DPIIT) under the Ministry of Commerce and Industry has selected the Margao-based Forum for Innovation Incubation Research and Entrepreneurship ( FiiRE) as one of the two incubators for Startup India Seed Fund Scheme (SISF), the other incubator being IIM Kozhikode.

Here in this story, we are going to have a detailed understanding of how this Goa-based incubator will work for startups.

What is Forum for Innovation Incubation Research and Entrepreneurship (FiiRE)?

FiiRE (Forum for Innovation Incubation Research & Entrepreneurship) is an incubator with the support of the Department of Science & Technology, Government of India under the National Initiative for Developing and Harnessing Innovations. It is currently operating from Don Bosco College of Engineering, Fatorda, Goa.

How was FiiRE qualified to be an Incubator?

The Department for Promotion of Industry and Internal Trade (DPIIT) under Startup India Mission held a meeting in Delhi, to select incubators, after which FiiRE was selected as an incubator to disburse seed funds to startups.

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FiiRE (Forum for Innovation Incubation Research & Entrepreneurship) is an incubator with the support of the Department of Science & Technology, Government of India.

Which Startups are eligible for this incubation programme?

FiiRE is focussing to support early-stage technology ventures that work on innovation, development or improvement of products, processes or services with a scalable business model that solves real challenges, has global impact and provides value to customers. This incubation programme is sector agnostic and has an affinity towards product development and manufacturing startups. FiiRE has a systematic incubation process that aids startups build prototypes, build connections with strategic mentors, early adopters and investors.

What FiiRE Plans to offer the startups?

FiiRE will offer its startups tailored infrastructure, business support and access to networks. Here are the advantages a startup can get under the aegis of FiiRE:

Infrastructure

Modern workspaces, meeting rooms, conference room, auditorium, cafeteria and more.

Business support

Accelerating the learning curve and building networks by facilitating access to external resources, knowledge and expertise.

Prototyping

The startups under this programme will receive handholding and counselling during its ideation stage. It will get support in establishing proof of concept with mentoring and prototyping support. FiiRE has established testing labs and design centres with the latest technologies like CNC machining, 3D printer, PCB, software, etc.

Seed Funding

FiiRE will provide assistance and guidance to startups to avail seed funding through various schemes of the Government of India. It will also facilitate access to angel investors and venture capitalists every quarter.

Selection Process

The aspirants will be required to visit FiiRE’s website to fill up a google form by writing a short description of the startup and a few other details based on which selection will take place and disbursal of seed funds to the chosen startups.

FiiRE’s Pricing Plan

To fulfill the needs of startup entrepreneurs, FiiRE has designed tailor-made support for ideators, early-stage startups, growth-stage startups and mature startups.

Incubator Pricing Plan

Charges: Rs 3000/month

The selected startups under the Incubator pricing plan can get access to :

- Structured program with mentors
- Access to all infrastructure
- Incorporation and IP advisory
- Prototyping support
- Access to seed fund/investors
- Freebies and discount benefits

Virtual Pricing Plan

Charges: Rs 5000 / year

It is open to all the startups, where they can get :

- Access to mentors on request
- Limited access to infrastructure
- Incorporation and IP advisory
- Paid prototyping support
- Access to seed fund/investors
- Limited access to training and workshops

Co-Working Pricing Plan

Charges: Rs 4000/month

In the plan, the selected startups will get the following advantage:

- Modern dedicated workspace
- High-speed internet
- Meeting rooms and auditorium
- Pantry and Cafeteria
- Power backup
- Access to college talent

How can startups and small Businesses get benefit from FiiRE?

By opening an incubation centre in Goa, the Government plans to develop an entrepreneurial spirit in the local startup ecosystem. Most incubation programmes are limited to metro and tier-1 cities leaving the local startups devoid of investor connections, mentorship and resources.

The selected Startups from this incubation programme will enjoy an array of facilities like physical space, shared services, business and legal advice, and financial inputs to facilitate their ideas to fruition and assist them till they become financially viable and freestanding.

The post All You Need To Know About FiiRE appeared first on Dutch Uncles.

Mastercard-Instamojo Partnership Can Help MSME Rapidly Digitise

DU Desk — Fri, 23 Jul 2021 10:30:08 +0000

Instamojo, a Bengaluru-based digital payment solutions provider for small businesses along with custom-tailored business tools helps a business grow on the internet. The platform offers end-to-end solutions to medium, small and micro enterprises with credit facilities, marketing tools, inventory tracking applications and logistics as part of its full-stack digital service.

Mastercard-Instamojo Partnership

In June, Mastercard made a strategic equity investment in payments and online selling platform Instamojo. The partnership aims to empower millions of MSMEs and gig workers in setting up online stores. The initiative also equips these small businesses with digital payment methods to reach out to their customers in a hassle-free manner.

The investment and partnership strengthen the company’s initiative to support gig workers like tutors, electricians, personal trainers and small F&B operators among the lot, to launch, scale and grow their businesses.

Why Did Mastercard Invest In Instamojo?

MSMEs and gig workers are an integral part of Indian economy. With this collaboration and investment, the company aims to digitise the MSME sector.

With the help of Instamojo’s full-stack e-commerce platform for D2C brands and MSMEs, Mastercard aims to extend the company’s evergreen commitment of bringing one billion people and 50 million micro and small businesses into the digital economy sphere by 2025.

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MSMEs and gig workers are an integral part of Indian economy.

How Will Instamojo Help MSMEs Digitise With This Investment?

Instamojo, started as a digital payments solution for small businesses, has broadened their horizon to provide SMEs with a platform to launch, manage and scale their businesses. The startup is starting with their own e-commerce platform for collecting payments and shipping their products in a seamless manner.

With Instamojo’s quick and easy onboarding process, merchants have readymade access to a fully automated online store with in-built payments, shipping and marketing services. The collaboration with Mastercard aims to work towards providing solutions to enable MSMEs and gig workers to set up online stores and reach out to a larger customer base in an effortless manner.

Insights For Startups

In a few years, the Fintech startup ecosystem has seen some major investment from the Indian as well as Global financial majors. Mastercard invested around Rs 250 crore to support small businesses in India last year. This has opened a new window for the small merchants and payment ecosystem to flourish.

The post Mastercard-Instamojo Partnership Can Help MSME Rapidly Digitise appeared first on Dutch Uncles.