3 youngsters from IIT-KGP are taking on the biggies in the online product discovery space

The story started when a young man named Gaurav Dahake had to buy an iPod for his friend whose birthday was arriving. He turned on his computer and three frustrating hours later, he had bought an iPod which ironically was delivered after the birthday. Gaurav also realized that he could have had a better deal if he had bought the gift from a different source. This experience kept nagging him and he got together with friend and developer Prashant Singh to solve this customer pain-point. And thus was born BuyHatke, an online product and price discovery service. They soon got their UI UX expert in Srikanth Sethumadhavan as well, and the ball was set rolling.

Problem being solved and the revenue model

eCommerce saw an huge upward swing in 2011 and we at YourStory have seen more than 800 eCommerce companies take birth (eSparks 2011 and 2013). With these, we saw the adjoining need for eCommerce enablers and this is where BuyHatke fits in. BuyHatke scans close to 50 credible websites (Amazon, Flipkart, Myntra, Shopperstop, etc.) and fetches the consumer the best deal.

The BuyHatke team which has grown to 11 now, started out with a capital input of Rs 2 lakh, and broke even a few months back. Revenues come in via three streams, viz. affiliate, advertisements, and exclusive home age listing for retailers.

Funding and competition

If eCommerce sites are more, price comparison engines are also in plenty. Alongside the Accel backed MySmartPrice, we have a few others engines like PriceCheckIndia, PriceBaba, Find Yogi, etc (some of them across categories, some focusing on a few). “We have been approached previously but we bootstrapped, broke even and are scaling fast. We would be soon out in the market to raise a series A round,” says Gaurav.

It’s a competitive space to be in but Gaurav believes that having a great team has helped them stick together and march ahead.

Aiming to be the Google for online shopping in India

“Other price comparison portals are limited in the amount of products they cover. Some are restricted to mobiles, some only to electronics. We are across the spectrum and cover over 47 credible portals and we not only help the user do price comparison but also help him discover relevant products,” says Gaurav.

BuyHatke scans an inventory of over 4 crore products on the net and claims to receive over 500,000 unique pageviews monthly (traffic stats on Alexa). They also recently launched their Chrome extension and a separate mobile comparison platform.

Envisioning to become the single starting point of every purchase made online in India, this ambitious strives to  keep on improving their product. 

Entrepreneur from Aurangabad - A startup story

Sachin Kate is the founder of Clear Car Rental and I had no clue about the magnitude of impact this 28 year old had created when he walked into our office at YourStory.in. Yes, Clear Car is just another car rental company in India but there are a few points that justify as to why he needs an ovation.

The man has a story to tell

Sachin Kate hails from the small city of Aurangabad in Maharashtra where the concept of starting up is pretty much alien (yes, setting up a shop is also starting up but we’re talking in conventional terms of starting up). The region where Sachin resided doesn’t have schooling available after grade 4 but Sachin’s parents were firm on providing him with all the needed education and hence sent him to a friends place in a nearby region from where a school was more accessible. Sachin started selling newspapers since money was always a challenge and luckily for him, he got a job of an office boy in 11th grade at a computer institute.

Always fascinated by computers, Sachin took advantage of the situation and progressed to become a computer instructor in one year. After 12th, Sachin shifted to Aurangabad for higher studies along with a part time job in a travel agency. “This job gave me my initial exposure in travel business. On a part time salary I started working full time because slowly I started getting access to computer and could show my computer skills,” says Sachin. He was pursuing his BSc. in computers and he had an inclination towards how SEO worked. This came in handy for the travel agency he was working for.

Gaining in confidence, Sachin tried moving out of his zone in terms of location but his family wasn’t very comfortable. He decided to come back and take up web development assignments. He focused on the travel and hotel segment and has developed more than 600 websites till now along with his team. This is how InfoGird and NetMantle had come into existence.

And then came in the big break.

Sachin was always associated with the travel and hospitality industry and was aware of the needs of the industry. “The technology was being developed for airlines, hotels booking etc., but last mile connectivity which is mostly road travel in tourism sector was in a way neglected,” says Sachin. And thus was launched Clear Car Rental in July 2010. This was the time when the Meru Radio cab service and a couple of others had settled in.

Clear Car Rental provides both local (packages for full day, half day and transfer) and outstation travel (packages for round trip, one way drop and multi city travels) solutions. CCR provide car rental services to 150+ cities within India and has a home grown team of about 100 that manages the operations.

And all this without a penny of funding

We’ve seen the car rental companies getting funded at will and the justification for the need of huge funds for a business like this. Surprisingly enough, Sachin has been able to scale the company to 150+ cities without raising a single penny of institutional funding. CCR holds inventory of 14000+ cars with a 1000+ vendors on board. Apart from the domestic, foreign tourists and corporates, OTAs like Makemytrip, Cox & Kings and Thomas Cook have also partnered with CCR. “We’ve focused a lot on Tier 2/3 cities. The average purchasing power has gone up and even people from smaller cities are hiring cabs now,” says Sachin. They have a strong share in the metros as well but they’re banking on the smaller cities for growth.

And building a company from Aurangabad

We’ve seen companies being built from small towns and this is yet another success story from a place you’d not expect a startup to scale from- Aurangabad. As always there are pros and cons,

Sachin believed in what he was doing and his grit to be successful opened up doors for him. Local newspapers have written about it and a blog post he wrote- “Aurangabad Calling” encouraged many youngsters who were studying outside to come back home and find employment.

A local hero in Aurangabad, Sachin Kate has been hidden from the bigger picture and we hope this post gives the man his due.

Website: Clear Car Rental

GITEX 2016 launches new startup movement.

GITEX Technology Week will launch and host GITEX Startup Movement, a startup gathering which will host over companies from 30 countries, bringing together entrepreneurs, innovators, investors, mentors and buyers for the first time in Dubai.

The GITEX Startup Movement will convene over 400 startups and more than 1,000 entrepreneurs, investors and mentors from the global startup ecosystem. The exclusive set-up will highlight the most innovative startups around the world and provide them a platform to sell, form partnerships and attract investors. Participants will also be able to pitch for prizes, attend an interactive conference to address challenges faced by entrepreneurs and meet leading industry figures. The initiative has already garnered interest and momentum from supporters across the globe including Business France, Cross Trade agency in Singapore, Digi Robotics in the UAE, Egypt’s Information Technology Industry Development Agency (ITIDA), Japan’s Jetro agency, Marco Trade Export in Morocco, Star Systems agency in Iran and STC from KSA.

Amjad Shacker, Corporate Communication GM, STC, said, “InspireU is an STC initiative to promote, support and develop digital startups and nurture and consolidate the startup ecosystem in the MENA region and create sustainable value. We believe that “to inspire is to empower” and we do that by providing the directions and tools to budding entrepreneurs to achieve their dreams. STC strongly supports the launch of the GITEX Startup Movement and is proud to co-present the top tier prize of the event to the best global startup.”

“The need for local and regional startup ecosystem consolidation, learning from global best practices, and exposure to global investment network, is imminently evident. STC considers GITEX Startup Movement addressing this need; it will help regional players to learn and mature as well as expose them to the global buyers and investors. STC will showcase the achievements of InspireU by showcasing its incubatees, connect them to the broader network, attract future deal flow and share the roadmap for the future. STC is participating in the Global Startup Movement to inspire and be inspired,” said Shacker.

Keep Calm
And
Get Your
Startup
On

The Arab world has a burgeoning youth demographic. More than 60 per cent of the 350 million population is under the age of 25. Young millennial Arabs are online, mobile, using technology and becoming entrepreneurs with the strong support of government initiatives.  The UAE leads the way in the region on revolutionary smart cities transformation and diversification of economies. Across Middle East and Africa, entrepreneurs are at the heart of the digital revolution as ICT spending increases across the region.

“Startups from all over the globe, women, youth and Arab entrepreneurs are a very real force of change that is making a positive impact in our society. They need supportive ecosystems to nurture and enable their growth and success. GITEX Technology Week has a strong legacy as one of the leading international tech events and is uniquely positioned to turn the spotlight on startups. With a force of 146,000 technology professionals and 22,000 C-suite executives at GITEX, Startups gain immediate access to a powerful industry network and massive technology marketplace, entry into growth markets in Middle East & Africa, and can future-proof their business plans, products and services.” said Trixie LohMirmand, Senior Vice-President, Exhibitions and Events Management, Dubai World Trade Centre.

“The Tesla Foundation is proud to be a part of the GITEX Startup Movement. The foundation is focused on building the bridge between private and public organizations to create new technologies and companies and the Middle East & Africa presents a unique opportunity. We have been graced with the strength of government support and the burgeoning entrepreneur scene that is in the region. As a science and technology Foundation focused on robotics and automation, “Cyber-Physical Systems,” GITEX enables us to expand our network by connecting with innovators, entrepreneurs, and companies to include in the Tesla STEM (Science, Technology, Engineering, and Mathematics) Farm System,” said Keith Kaplan, CEO Tesla Foundation.

The public sector in the UAE is already committed to facilitating a conducive environment for entrepreneurship through its AED 2 billion knowledge fund, which is part of the country’s National Innovation Strategy, and aims to accelerate the startup movement towards a sustainable knowledge-based economy.

Further positive announcements such as the establishment of venture firm 500 Startups’ $30 million fund in the Middle East and North Africa, Uber’s $250 million investment in the region and home grown UAE startup, Souq.com who recently secured $275 million investment to be the highest valued internet company in the Middle East, are testaments to rising MENA entrepreneurship scene where vibrant and growing economies present untapped and unchartered opportunities.

Delegates at the event, will also have the opportunity to visit country zones and showcase pods that will feature the most exciting startups offering drones & robotics; IoT, AR, VR & AI; finance; retail; healthcare; education; energy; travel & hospitality; media & marketing; and transport & logistics, to name a few.

GITEX Technology Week is expected to attract more than 146,000 visitors from over 140 countries, including 22,000 C-suite executives and 3,500 exhibitors from 55 countries.

GITEX Technology Week will be held on 16th to 20th October 2016 at Dubai World Trade Centre (DWTC).

Disclaimer: Following article come from CNME

Soon You Won't Have To Be Rich To Back A Startup.

New crowdfunding rules taking effect Monday will let anyone—not just the wealthy— invest in startups. But don't bet on the "99 percent" finding the next Uber overnight. 

The change overrides a longstanding Securities and Exchange Commission requirement that investors backing private companies be "accredited," meaning they make at least $200,000 a year and have a net worth of $1 million or more (excluding their home).

Now startups raising money through online crowdfunding portals will be able to sell shares to people regardless of their wealth or income so long as the founders have submitted annual financial reports to the SEC. In exchange, companies can raise up to $1 million. 

The rules, implemented as part of Title III of the JOBS Act, were four years in the making and the result of industry lobbying to make the process more democratic. The big question is how much the change will transform crowdfunding, which has typically rewarded backers with T-shirts, events tickets and early iterations of gadgets.

While some startups are keen to sell shares to small investors, others are hanging back because they find the rules too onerous and the fundraising limit too low. Meanwhile, Kickstarter, the biggest and best-known crowdfunding site, has no plans to join the party.

It's early days but non-tech entrepreneurs who have trouble attracting venture capital are considered the most likely to take advantage of the option. People like Tom Lix, who's keen to raise $1 million on the Wefunder portal so he can expand his Cleveland liquor startup.

"I would love for my customers to be my shareholders," says Lix, whose Cleveland Whiskey LLC says it can age whiskey in 24 hours.  "I couldn't ask for better fans."

The Successful Person Makes A Habit Of Doing.

Richard Swart, a founding board member of the Crowdfunding Professional Association, says the new fundraising rules could especially appeal to companies outside venture-capital rich California and New York. He says entrepreneurs in theater, food production and energy have expressed the most interest so far, along with minority-led businesses.

"We're hoping crowdfunding can start to equalize the distribution of funding," says Swart, who also serves as chief strategy officer at NextGen Crowdfunding LLC,  a year-old startup that provides information about funding portals, individual companies and crowdfunding regulations.
Still, he and others acknowledge that new funding option could have limited appeal. Jim Fulton, an attorney at Cooley LLP who specializes in corporate and securities law for emerging companies, says many companies, especially in tech, consider the $1 million limit too low and the costs to register and submit annual results too high. He says fewer than a dozen clients have asked about the option. Another potential turnoff: a requirement that companies communicate with investors as individuals rather than as a group.

"If you're not going to raise $5 million," Fulton says, "I don't know why you'd subject yourself to this burden."

The costs vary depending on a company's complexity and how much it wants to raise. Cleveland Whiskey expects to pay between $40,000 and $50,000 to raise $1 million while Anikona Farm, which operates a coffee plantation in Hawaii, expects to pay between $1,000 and $20,000 to raise roughly $100,000, according to owners at each company.

As of Thursday, five crowdfunding portals had been approved: Wefunder Portal LLC, SI Portal LLC. dba Seedinvest.com, CFS LLC. dba CrowdFundingSTAR.com, NextSeed US LLC. and StartEngine Capital LLC. Three dozen more are awaiting approval.

A spokesman for Kickstarter said the company has no intention of adding equity investing to its platform. But rival crowdfunding portal Indiegogo does.

"It was the original goal of the founders when we launched in 2008 and it still is," says Indiegogo Chief Executive David Mandelbrot, adding the company is working out details with attorneys now and expects to launch something later this year. "Limiting venture financing to accredited investors and treating people differently according to their wealth feels very undemocratic. It's sad it's taken this long to change that, but at least these are steps in the right direction."

Disclaimer: Following article come from Bloomberg

Startup with $10 million in funding shuts down: “From first bite to the bittersweet finale”

An on-demand private chef startup that had secured more than $10 million in funding has shut down and issued a dire warning for other tech companies operating in the food space.

Silicon Valley-based Kitchit offered a platform where chefs could visit users’ homes and cook for them, and has served 100,000 meals since its launch in 2011.

The startup raised over $US8 million in total, including a funding round it closed in December 2014.

But due to an increasingly cut-throat market and a lack of investor interest, Kitchit has shut down, another in a long line of similar startups calling it quits.

Startup Problems? Contact Us!

In a lengthy and insightful blog post, founders Brendan Marshall and Ian Ferguson detail the startup’s journey from “first bite” to the “bittersweet finale” and the reasons behind its demise.

It begins with the team’s plans to create “the world’s largest – and its first decentralised – restaurant” and their early success with these plans, with 30-40% gross profit margins.

“An accomplishment that was unrivalled by many food companies at scale, to say nothing of food-tech startups,” the founders say.

“We believed that these were the early indicators of the venture-scale business we’d been searching for.”

But it all started to come apart, with the founders saying the company’s funding runway ended just as the industry faced some troubling times.

“We’ve navigated five years and made the most of every dollar raised,” they say.

“Nevertheless, investment runways are finite, and unfortunately ours reached its end at a moment of substantial upheaval in the food-tech world.

“While Kitchit’s business fundamentals have always been strong, our scale has been too limited to outshine the tumult around us.”

It comes as several other startups playing in the food space have been forced to shutter operations, including SpoonRocket in March due to a lack of funds, Competitor Dinner Lab earlier this month and Kitchit rival KitchenSurfing.

The founders’ blog post concluded with an ominous warning for other startups operating in the space.

“So we close our doors with a mix of sadness for our customers, chefs and employees on one hand, and on the other a recognition that our market is simply not ready to sustain a venture-scale business,” the founders say.

Disclaimer: - Following article come from SC

Food Startup Flips Business Model To Cut Down Costs, Maintain Growth.

This is a case sort of belt-tightening across different startups sectors that cut across e-commerce to food-tech companies. Faasos - one of the most highly-funded food startups, which so far retailed only self-branded food from its own kitchens - around 175 odd ones across top 15 cities - is the latest one to flip strategies to keep costs down while maintaining the pace of growth. 

The company flipped its business model last year to enlarge food variety on its menu by tying up home chefs - around 100 on its rolls now.

 

The model had limitations, though. Food from home-chefs can get high-on-demand but home chefs do not have the ability to address the consistent point in order volumes. "We will be using the strength of home-chefs for bulk party orders that we started on with about a month ago," said Revant

Bhate, Head of Marketing at Faasos.

Start Your Business In Kuwait

Faasos which handles around 12,000 orders a day is now hooking on to restaurants and independent caterers to sell their best selling products to customers, in a bid to further expand its menu without bearing the cost of setting up kitchens.

"At the end of the day, it does not matter to the customer where the food is coming from," said Bhate. At present, the Faasos menu has broadly 7 to 8 segments -north Indian, biryani, signature rice, curries, wraps, pizzas, desserts, chai and snacks and all-day breakfast.

Restaurant tie-ups are aimed at getting into other cuisines such as Chinese, salads, pastas, continental and south Indian dishes. The move will help Faasos which recently completed tie-ups with 500 restaurants across metros and tier 1 cities to double up order volumes without investing big on new customer acquisition. "The idea is to move up from 3 orders a month per customer to 6 orders from the same set of customers," said Bhate who hopes to close fiscal year March 2016 with revenues somewhere close to Rs.100 crores which was the set target for the company.

The company founded in 2011 by two friends Jaydeep Barman and Kallol Banerjee counts leading venture capital firm Sequoia Capital as its early investor and had last year raised two rounds of funding -$20 million led by Lightbox Ventures and $30 million led by Russian firm ruNet which valued the firm at around $130 million.
Disclaimer: - Following article come from ET

WHAT AND WHY??

In my previous article I have highlighted the importance of the Fashion Industry and E-Commerce. Today I will get in detail for what and why we need E-Commerce.

For any business to grow it must constantly reach new customers and communicate efficiently. If you have a physical storefront you’ve probably realized these two requirements for growth are not easily achieved.  Building an E-Commerce website allows a retail store to break-through the limitations a physical location gives, while increasing sales of its products.

E-Commerce is a term used for commercial transaction that takes place chastely through the internet. This transaction could be between a consumer and an online store, or even a trade to trade business transaction. 

No matter what is your corporate standard is, you should take a closer look at E-commerce as a way to build your business.E-Commerce provides an ability to purchase without any restraints. 

Businesses worldwide are racing to conquer the E-Comm technology. It have expanded over the last 10 years due to the increase the rate of consumers purchasing online.

For those small scale business providers or those who are passionate to build their own business and finds it difficult to set up a physical store may find it easier to Set up an online store with the help latest technology platforms for their start-ups. When implemented correctly, e-commerce website should have the following features:

1.  Large customer base

2.  Hassle free services

3.  Latest technology

4.  Always open 24* 365

5.  Shop on the go

6.  Free training

7.  Opportunity to connect

If you found this article worth reading then please step up and take time to build an E-Commerce platform for your business. It may not be as hard as you think it is, and it could have a huge positive impact on your business for years to come.