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A marketplace with a difference, Authblue makes verifying blue-collar employees easy, fast

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DIPP-registered Authblue is an online marketplace that connects individuals and businesses with companies that conduct background verification of blue-collar workers.

From drivers and delivery personnel to domestic help and cooks - there is ever increasing demand for blue-collar workers. Moreover, hiring is mostly ad-hoc, and most of it is through word-of-mouth and driven by who can join work the earliest. 

This, however, may not be the safest way to find an employee. According to a report published by NCRB (National Crimes Records Bureau), Ministry of Home Affairs, in 2016, the number of crimes in residential complexes and homes were reportedly on the rise due to lack of proper authentication of domestic help. 

“This isn’t just restricted to homes. With the growing gig economy, even businesses believe there is a need for verification,” says Sujeet Buddiga, Co-founder of Authblue. 

To help people verify blue-, and even white-collar workers, Authblue was set up in Hyderabad in 2018. Founded by 28-year-old Sujeet Buddiga and 33-year-old Saurabh Tiwari, the DIPP-recognised startup’s platform helps connect businesses and individuals with companies that conduct verifications. A team of five, the company has clients from across the country registered on its platform. 

Authblue
Sujeet and Saurabh, founders of Authblue

Working the marketplace model 

There are several companies that offer background verification like OnGrid, a 2016 Tech30 company, InstaVeritas and SecUR credentials, and Authblue essentially works as a marketplace for these companies. 

Sujeet explains that while companies use the best available technology and resources to verify workers, the end consumer is clueless on which one to use based on their equirements. The idea of Authblue came to Sujeet and Saurabh when they were working at Hyderabad’s Salesforce office. 

“We started operations in Hyderabad as we launched our online platform in July 2018. In a short span of five months, we have served more than 20 businesses, partnered with more than 10 gated communities and have close to 1,000 B2C signups. We have processed more than 3,000 different checks so far,” says Sujeet. 

How does it work? 

A user has to feed in their requirements on the platform, based on which they get a choice of different verification firms. The user can then compare and choose from the offerings.

The platform hosts companies offering over 10 different types of verification, which cater to the needs of most businesses and individuals. Based on the needs, one can create a profile, and also invite clients or verification firms to share their profiles.

“As the list loads up, we show every detail of the company and client and the profiles - like ratings, pricing, refunds, compliances, profiles and reviews. So everything is available online,” explains Saurabh. The individual or business can verify all the order activity and get notified on the same. 

Numbers and future 

Authblue says it has currently tied up with JantaKhoj, Info Quest, Dcode and Icrest.

We make money from commission on such verifications. The prices depend on the type of checks opted. We have checks starting from as low as Rs 5 for instant verifications to a few hundreds for address, education and court records,” says Sujeet. 

Depending on the profile and the service provider, Authblue charges Rs 8 to Rs 15 per profile. 

For example, for drivers, the cost of verification is around Rs 600 (including identity, address, court record and driving licence verifications). For security guards, it is Rs 150 for identity and criminal verification (court record check). For white-collar professionals, the prices range from Rs 1,000 to Rs 10,000 as it involves verifying multiple educational certificates from universities and previous work experience. 

Authblue’s charges are determined based on these profiles. The company says it has raised an undisclosed seed funding led by a group of undisclosed investors.

While working on the marketplace, Authblue is also looking to build on the supply, they are planning to get into training and hiring of the blue-collar workforce as well.

“We aim to build streamlined processes and facilitate more organised jobs in the blue collar sector so that people can make an informed choice,” says Sujeet. 

Website 



[YS Exclusive] Sunny Leone asks her critics - ‘I know who I am and I’m proud of my life… are you?’

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In an exclusive interview with HerStory, actor and entrepreneur Sunny Leone speaks of the importance of creating a better world for women by starting right at home, and delves into how her love for makeup set her off on the path of entrepreneurship.

Sunny Leone

Love her or hate her, you simply cannot ignore the fact that Sunny Leone is a woman of the world who lives life on her own terms, undeterred by what others think of her life and career choices.

I hadn’t watched Sunny Leone on the big screen. But I was completely bowled over by her presence of mind and calm demeanour while facing a volley of condescending and tactless questions from TV anchor Bhupendra Chaubey of CNN-News 18, a few years ago.

Here’s taking you back to some of those questions: “How many people would grow up thinking of becoming a porn star?” “Am I being morally corrupt because I’m interviewing you?” “Will we see movies from Sunny Leone in the future where Sunny will be dressed up in a saree, covered completely?”

Any other woman would have walked out of the interview but Sunny stood her ground, and with head held high, handled the questions with utmost grace. Later in an interview with Huffington Post, she said,

“But I will never back away. I will never let anyone get to me. I will never let anyone - man or woman - take me down. It was that spirit in me that made me continue with the interview. Also, if I walked away, I would prove every doubt he raised about me, everything he suggested about me and my past right. I was never going to let him do that.”

Being one’s own person

For her entire life, Sunny Leone, born Karenjit Kaur Vohra, has been battling critics for the choices she has made. Born to Indian parents in Canada, she started off as an adult star, besides acting in mainstream Bollywood cinema and TV shows.

Sunny Leone

Sunny is a great believer in making choices and sticking to them, whatever the circumstances may be. In an exclusive interview with HerStory, she says, “The essence of being a woman is just figuring yourself and the things you like and want out of life, and then making them happen. Women usually tend to conform to standards set by those around them and lose who they are in the process. If that has happened, I believe we should make those baby steps to come back to our own selves,” she says.

Sunny Leone on motherhood and more

The actor revels in the multiple roles she plays in life - as a woman, wife, mother and actor. Married to Daniel Weber, a guitarist and now her manager, Sunny’s life is an open book, at least on social media. She constantly posts happy pictures of the family - her three children - adopted daughter Nisha Kaur Weber and her twins via surrogacy Asher Singh Weber and Noah Singh Weber. The  couple adopted Nisha from Latur in Maharashtra.

She wrote on Twitter recently, "June 21st, 2017 was the day Daniel and I found out that we might be having three children within a short amount of time. We planned and tried to have a family and after so many years, our family is now complete with Asher Singh Weber, Noah Singh Weber and Nisha Kaur Weber. Our boys were born a few weeks ago but were alive in our hearts and eyes for many years. God planned something so special for us and gave us a large family. We are both the proud parents of three beautiful children. Surprise everyone!"

So how does she manage all these different aspects of her life? She tells us in jest, “Not a lot of sleeping happens with these roles, but I love my life and children and my husband. I really do have the best life minus the sleep part.”

Struck by entrepreneurship

Sunny Leone

Not just content with being an actor, Sunny has also turned entrepreneur with Star Struck by Sunny Leone, a cosmetic line comprising lipsticks, lip-liners and lip gloss in various shades.

“I love cosmetics and am a self proclaimed product junkie so it was very natural for me to turn in this direction. We are already in the market and the brand is doing very well. I wanted to create something I would want to wear; that was very important to me. I’m in front of the camera all the time and having great makeup and products help me look my best. I wanted the same for the people out there. Both Daniel and I were very clear that we would do this on our own with no investors because in our experience the more people involved, the more things head in a direction that we don’t want. We both wanted full control over this so that it would be perfect. I am very proud to see the progress the brand makes on a daily basis,” she says.

‘The plan is to expand my brand and  keep moving forward and working as much as possible. Like a train going uphill, I plan to just keep chugging forward,” she adds.

While India maybe one of the largest consumers of porn, there is a lot of hypocrisy surrounding adult stars and Sunny Leone is no exception. India is still a conservative country at heart and does not deal with blurred lines too well - like an adult start becoming a mainstream actor and sharing screen space with other “respectable” actors. Of challenges, she says, “I guess I don’t see life as black and white.The challenges are many, but the result is a learning process and I don’t hold onto them in my mind or heart, to recall later. I am methodical and everything has a solution and it’s my job to figure that out and come out of the problem. I try and live my life as positive as possible.”

‘Change begins at home’

Sunny Leone

Having lived in Canada and later in India, Sunny is aware of the many issues women face, especially when it came to freedom of choice. “There are so many issues that women face here, and all I can say is change begins at home. If we can educate families on the basics, then maybe we can make a difference in the next generation. Children are our future and the only way to fix women’s issues is to start right at home,” says.

While Star Struck remains high on the list of priorities for the actor, she is also looking forward to her debut in the Malayalam film industry, where she feels, “she is going to have a great time”.

Whatever Sunny does, makes news. And elicits bizarre opinions, biases and extreme reactions. To all those judging her, she has only this to say. “Take a look at yourself in the mirror in the morning and ask yourself who you really are? I know who I am and I’m proud of my life… are you?”

We are nearing the end of 2018 and it's disheartening that we are still judged for who we are and what we do. One thing that stands out is how Sunny Leone has stood tall through it all. I believe that rather than being the victims of our own stories, let's all own our own stories.

Let's make the New Year one where our lives will not be ruled by unfair judgements and stereotypes. Kudos to all of you who have surmounted the most difficult challenges to prove yourselves. Tell us your stories so that the world can also hear them.

I am waiting to hear your stories, so feel free to write to me at rekha@yourstory.com


B2B ecommerce startup Moglix closes Series C with $23 M

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Leading B2B ecommerce startup - Moglix, closed its Series C round of funding on Tuesday with $23 million from existing investors Accel Partners, Jungle Ventures and International Finance Corporation (IFC), member of World Bank Group. Venture Highway, Shailesh Rao and InnoVen Capital also participated in the round. The company has now raised a total of $41 million.

Pravan Malhotra, Venture Capital team, IFC, said, “The Indian government has a strong focus on using technology to transform traditional sectors such as logistics, supply chain and manufacturing. By backing clients such as Moglix, who operates in the B2B commerce market, IFC is supporting technology-led solutions that bring process and cost efficiencies and move businesses to new growth trajectories and deliver strong investor returns.

Founded in August 2015, Moglix aims to digitally transform the supply chain of manufacturing sector in India. The startup will expand to newer markets and geographies with the newly raised funds. The company will further increase its logistics network and supply chain across the country.

Founder and CEO of Moglix, Rahul Garg said, "The funds will play a critical role in fuelling our expansion efforts by optimising efficiencies in our focus areas such as technology innovation, analytics and building a wide logistics infrastructure network. We are now focussed on our next phase of growth across diverse markets and going forward, we will continue to bring in new talent and strengthen our talent base.”

He also added that Moglix is growing at 400 percent year-on-year. It aims to be the largest technology platform where demand and supply can be matched through process discovery and product availability.

Moglix, currently operating across 10 centres in India, is also backed by Tata Sons' Chairman Emeritus Ratan Tata since its inception. It was his maiden investment in the B2B ecommerce domain.

Founding and managing partner of Jungle Ventures, Anurag Srivasatava said,"Automation is the new keyword for any industry. Moglix has been performing commendably for the manufacturing sector and we are delighted to be a part of their success story. Our investment is a testament of our trust in the brand."

The startup raised $12 million last year, from IFC, Rocketship VC and Accel, among others.

In a previous conversation with YourStory, Rahul said that B2B businesses are not glamorous - finding the right talent means finding people with a passion for the business and the problem you are trying to solve.


Ola invests $100 M in bike-sharing platform Vogo; to supply 100K scooters

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Bengaluru-based dockless scooter sharing platform Vogo has raised $100 million funding from Ola. The ride-hailing unicorn will help Vogo boost its supply by investing in 100,000 scooters. With this strategic fundraise, Vogo’s offerings will also be available on the Ola app. 

In August this year, Vogo had raised an undisclosed Series A funding led by Ola and Pawan Munjal, Chairman, Hero MotoCorp. Matrix Partners and Stellaris Venture Partners.

This strategic fund raise will help Vogo reduce its capital expenditure. The company currently operates in Bengaluru and Hyderabad, and plans to add over 1,000 pickup points across Bengaluru and Hyderabad in the coming year.

Ola
Anand and Bhavish


The platform claims to have severed over 20 million kilometres on its platform. Founded two years ago by Anand, Padmanabhan Balakrishnan and Sanchit Mittal, Vogo lets consumers rent scooters for short one-way trips to different locations across Bengaluru and Hyderabad. 

Speaking of the latest development, Anand Ayyadurai, Founder and CEO, Vogo said, the platform has seen rapid growth in the past five months and has grown over 10x in scale. He added that Ola’s understanding of mobility and their investment to power supply are helpful to Vogo. 

Anand said, “As we enter into our next phase of growth, we look forward to executing our synergistic vision of the future: smart and sustainable mobility for all.” 

The team believes that India presents a unique, untapped opportunity for scooter-sharing. “With the backing of right partners, innovative solutions and nuanced market understanding, we are well-positioned to capitalise on this opportunity and create value for all,” Anand said. 

The app enables users to locate, unlock, and pick-up its scooters and bikes at one point, and drop it off at a different point, without the need for a docking station. The Vogo scooters come in with an IoT device, which allows customers to access the vehicle with an OTP. 

Speaking of the fundraise, Bhavish Aggarwal, Co-founder and CEO, Ola said in a press statement:

“Ola is committed to building a robust mobility ecosystem in India, creating a deep impact on livelihoods and how citizens get around. Our investment in Vogo will help build a smart multi-modal network for first-last mile connectivity in the country. Vogo’s automated scooter-sharing platform, backed by Ola’s expertise in this space, can help transform our cities.” 

The scooter-sharing segment is growing fast in India. There is also Rapido, which currently claims to have over 4,000 bikes in Bengaluru, and over 1,000 in Gurgaon. A few months back, Metro bikes, which was rebranded as Bounce, raised $12.2 million in funding led by Sequoia Capital. 

This investment by Ola marks the Bengaluru-based unicorn’s entry into the scooter sharing segment. Two years back, Uber had launched uberMOTO in Hyderabad and in Chandigarh. A study by AlphaBeta Analytics suggests that globally, Uber users save 38 percent time with uberMOTO and nine to 18 percent with uberX compared to modes of transportation available earlier.

Now, with this investment in the supply and access of Vogo on the Ola app, it is clear that Ola too is aggressively entering the space. Speaking about Vogo's growth, Tarun Davda, Managing Director, Matrix India says, 

"As an early investor in both Ola and Vogo, we are happy to see the further deepening of the strategic partnership and believe it will accelerate the shared vision for a multi-modal future. Micro mobility at scale requires significant network density and the rapid expansion of the Vogo fleet will enable just that. We are privileged to be in business with the Vogo team and look forward to continue supporting them on their journey to transform urban commute in a convenient and cost-effective way.”

Menterra Social Impact Fund invests $2 M in tech companies

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With completely merit-based selection, 50 percent of Menterra companies are said to be founded and led by an exceptional set of women founders. 

Menterra Social Impact Fund, a venture capital fund, has invested $2 million in technology companies in the healthtech, agritech and edtech sectors. The investments are made in Omix Labs and Adiuvo Diagnostics in healthcare, Stones 2 Milestones in education and another investment in agritech.

These investments take the total number of investments in Menterra’s portfolio to 10.

OmiX Labs has built a next-generation molecular diagnostics platform for rapid detection of infectious diseases. Its DNA-based proprietary tests allow detection of bugs causing infection within few hours.

Adiuvo uses machine learning enabled, non-invasive and portable device using multi-spectral imaging for wound care and detection of skin infections. This technology allows significant improvements over existing visual methods. Adiuvo is building a very advanced and powerful platform technology with multiple related products in the pipeline.

Stones2Milestones (S2M) develops children’s skill and will to read in English through innovative methods. It has launched India’s first pure play English reading skill assessment – FAST. Schools and parents partner with S2M to improve children’s reading levels through the Wing of Words programme and the Freadom parent app. This eco-system approach aims to make a child a fluent and independent reader by Class III.

In agriculture, Menterra and its investment partner Artha are looking to bring a scientific rigour to small farms. They are currently assessing several opportunities including leading a Pre-Series A round for an agritech company.

In a statement, Mukesh Sharma, Co-Founder and Managing Director of Menterra Venture Advisors, said, “Menterra was formed to use the power of technology to deliver impact at scale by improving the quality of farming, healthcare and education in our country with focus on aspiring underserved consumers. We are delighted to welcome such a talented group of founders to Menterra family. The thought and passion they have put in is apparent in the quality of their products and the teams they have built around them. In the coming years, Menterra will continue to invest in cutting edge technology. We will continue to broaden and deepen our platform with focus on agriculture, healthcare and education."

Menterra Social Impact Fund is a venture capital fund that invests in technology to deliver impact in agriculture, healthcare and education sectors. With completely merit-based selection, 50 percent of Menterra companies are said to be founded and led by an exceptional set of women founders. Its investments are claimed to be aligned with the UN Sustainable Development Goals.

Entrepreneurial success is also about getting the boring stuff done

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Success is not in chasing the best or the next, but rather is in getting stuff done; often it’s in getting the ‘boring’ stuff done.

Have you ever come across a person who gets excited about new ideas and equally quickly moves on to the next? Such people are all around us, and increasingly so.

The unavoidable penetration of technology and social media in our lives is not helping the plight either. The pursuit of the next and the more exciting is incessant, and the threshold of what’s exciting is an ever-increasing one. While this might be good from a purely intellectual and adrenalin perspective, it is a serious problem when it comes to creativity or innovation.

More specifically, on entrepreneurship, the success is not in chasing the best or the next, but rather is in getting stuff done; often it’s in getting the ‘boring’ stuff done.

When the late Steve Jobs quipped – “real artists ship”, he took our collective attention from his genius and creativity to what really matters to business- execution. As for creativity and originality, the same legend said – “good artists copy, great artists steal”. And yet we fall for the novelty, the originality, the first-mover advantage, the eureka moment, the spark in the head and the feelings in the gut!

These may be the necessary conditions of innovation (read commercialisation), but certainly are not sufficient, by any stretch of imagination.

Shipping or commercialisation calls for a whole host of competencies, often routine in nature and boring to the core, that the excited entrepreneur chooses to overlook, often to her own peril.

The dirty, repetitive, attention-to-detail, non-sexy type work isn’t what excites the entrepreneur (in the making), and hence we see a very few of the entrepreneurs (read businesspeople).

The question then is – why do entrepreneurs shy away from the boring stuff, knowing very well that it’s unavoidable? Or, why execution doesn’t come easy to entrepreneurs? Let’s define execution as – “getting things done”.

I reckon, there are three reasons for this make-believe behaviour. Firstly, most entrepreneurs haven’t planned for or even gotten trained in managing execution. Secondly, execution calls for different skills and temperament than what the core team might possess, especially of that of delegation.

Thirdly, execution doesn’t offer instant gratification, and hence by nature is boring.

Execution calls for ‘real’ knowledge and skills

The perennial debate is on whether management education helps entrepreneurs? While the jury is still out on how much formal education contributes to the initial idea or the entrepreneurial zeal, but there is enough and growing evidence on the significant role formal education plays in scaling and managing an enterprise.

Remember, an enterprise is truly above and beyond the idea or even the entrepreneur (rightly so).

A know-what and know-how on how to run enterprises either come from the sheer working in the industry or by going through formal education, which is to say – informal and formal means, respectively.

While these two approaches may not be able to be substituted, but it’s always wise to learn from others’ experiences, especially when critical resources are at a premium.

Since most entrepreneurs lack a substantial formal or informal learning on ‘how to’ get things done, they are happy intellectualizing the idea and its whimsical impact, and not ready to face the reality.

Little doubt that there is a comprehensive evidence shown by research that successful entrepreneurs are in their 40s and not 20s, and that’s the time taken to gain expertise on execution[1]. And maybe then the entrepreneur realizes that it’s never one killer idea, but a series of incremental steps done right.

Delegation doesn’t come easy

It is unwise to expect the very person or the team that came up with the initial spring to be adept at execution. However, knowing well that it’s never that proverbial ‘spark of genius’, or one right decision, that shapes the fortune of an enterprise, it’s imperative to look beyond oneself or the core team. Like it or not, delegation is a necessity here, and a mindset and skillset that most entrepreneurs aren’t prepared for, and/or aren’t comfortable with.

Knowing when and whom to delegate to, how much to delegate, and what governance and incentive mechanisms to have, is part science and part art. Even the formal and informal training might appear short when it comes to taking a few critical calls, and hence, it squarely falls back on the temperament of the founder or the founding team.

Three quick insights here – firstly, hire someone who’s just about 70 percent ready for the job and bet on the person; secondly, frame and scope the task in a largely non-ambiguous manner; and thirdly, have clear incentives for performance and non-performance. Of course, both the parties will improve with time on the aspect of delegation, but sooner the better is the motto here.

Execution offers deferred gratification

The (first-time) entrepreneur may have gotten so much used to the eureka moments, the cerebral and high-decibel conversations, and so much written and spoken about the person, it’s natural to gravitate towards what offers instant results.

As is well-known in bringing up a child or an organisation, most success is intangible, deferred, and painstakingly slow, and that is the new rhythm one must get used to now.

While the world knows Jeff Bezos to be a brilliant entrepreneur and Amazon to be one of the world’s most innovative and valuable companies, the man doesn’t fear admitting that – “every overnight success took us ten years.”

So, endurance is the currency of (successful) entrepreneurship, and being comfortable in doing the often repetitive, boring to the core, unpleasant tasks. Thankfully, with the advent of powerful computing, lowering information asymmetry, and cheap connectivity, some of the boring stuff can well be automated, outsources or delegated, but one must remember that every exciting stuff will get boring with time, and then the winners emerge.

In summary, if you are an aspiring or struggling entrepreneur, learn to get your head around the boring stuff, for the excitement is always short-lived, in life and in business. If you are a seasoned one, tap into the power of pervasive communication and computation, and adopt the levers of automation, delegation, and outsourcing to get the boring stuff done more effectively. But, there’s no avoiding it. That’s the yin-and-yan of the business.

[1] http://mitsloan.mit.edu/ideas-made-to-matter/20-year-old-entrepreneur-lie

Indian Air Force gets eco-friendly as it tests out biofuel-blended aviation turbine fuel

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The Indian Air Force tested out its first-ever biofuel-powered AN-32 transport aircraft with an aim to fly the aircraft powered with biofuel on Republic Day in January 2019.

In a bid to reduce its carbon footprint and dependence on aviation fuel imports, the Indian Air Force (IAF) tested out a biofuel-powered Russian made AN-32 transport aircraft on Monday. A team from Aircraft Systems and Testing Establishment (ASTE) used 10 percent of biofuel produced from the plant Jatropha and 90 percent Air Turbine Fuel (ATF) for the test.

The transport aircraft was tested by a team of experimental test pilots and test engineers from ASTE. The aircraft took off from the Chandigarh airbase and remained airborne for about 45 minutes.

AN-32 transport aircraft
Representational image | Source: Financial Express

The project is a joint effort of IAF, Defence Research and Development Organisation (DRDO), Directorate General of Aeronautical Quality Assurance (DGAQA) and CSIR-Indian Institute of Petroleum (IIP), reports Business Standard.

The project partners will be providing the required in-house testing facilities and financial support and the testing is done with an aim to fly the aircraft powered with biofuel on Republic Day in January 2019.

Post-converting AN-32 transport aircraft to biofuels, the IAF will replicate the same with the rest of its fleet of flying machines in service. The process of conversion will include MiG-29 and Su-30 MKI, reports Financial Express.

With this step, India will join the group of nations, including the US, to have tested military as well as commercial aircraft on indigenous biofuel jet. As per the IAF officials, the total expenditure on ATF costs Rs 42,000 crore, and with the inclusion of indigenous biofuel, the import costs will drop by 10-15 percent.

In August, Prime Minister Narendra Modi had said that India could save $I.7 billion a year on its fuel import bills. He later urged the nation to switch to biofuels and in the same month, Spice Jet successfully tested a 72-seater commercial aircraft with biofuel.

Do you have an interesting story to share? Please write to us at tci@yourstory.com. To stay updated with more positive news, please connect with us on Facebook and Twitter

The next recession could be here sooner than you thought and this time, look East, not West

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On November 23, when the S&P 500 index hit a 10 percent fall from its yearly high of 2930 points in mid-September, there were familiar whispers of the markets heralding a moment of reckoning for the US economy. There has been a steady expansion in the US economy for close to nine years since the Great Recession ended in June 2009 and arguments in favour of a looming recession next year are basically of two types.

One is based on an empirical analysis of historical data – the US has never had such a long period of economic expansion between two recessions. Statistically speaking, post-war US has seen a recession around five years after the end of one, with an over 90 percent likelihood of that happening within 10 years of economic recovery and expansion. By this measure, an economic slowdown is overdue next year.

Second, as economists who prefer more rigorous analysis point out - the yield curves are flattening. In the bond markets, normally the longer-tenure bonds (10- and 30-year) have higher yields than shorter-tenure ones (1- and 2-year) as investors demand a greater interest rate for locking their money in for a longer period of time. This would also offset the uncertainty around short-term rates in the future.

However, should investors believe that inflation will sharply decline in the future, or that the economic performance will worsen causing the US Federal Reserve to cut interest rates sharply, they are less likely to demand a premium on holding long-term bonds. Therefore, the difference in yields between long-term bonds and short-term bonds (or spread) should fall (flatten).

Indeed, that is something that has been happening - the difference between 10-year and 2-year yields fell from 1.29 percent at the end of 2016 to 0.26 percent currently - a drop of 103 basis points over two years. Given that the yield curve inversion (when short-term bonds have higher yields than long-term bonds) has been an incredibly good leading indicator of US recessions over the last 60 years - forecasting every single one of them - the flattening of yield curves suggests the next recession is just around the corner - maybe next year.

recession, falling spread between US 10-year and 2-year bond yields
The falling spread between US 10-year and 2-year bond yields is one reason markets are getting jittery about a looming recession (Source: US Federal Reserve)

Ominous as these signs are, we believe the likelihood of a recession in the US next year remains negligible – notwithstanding President Donald Trump’s blunt force approach to global trade (more on this later) and the inability of successive US governments to address the structural issues with the quality and targeting of public spending, while containing the fiscal deficit and debt.

First, the analysts pointing out the unusual length of the US expansion since the Global Financial Crisis forget how uniquely lacklustre US recovery was in the initial part of this cycle. Between 2009 and 2014, US GDP growth averaged 2.2 percent, well below the 2.8-3 percent growth rate seen in the previous periods of expansion. It only picked up to the 2.8-3 percent level this year, which means the ‘overheating economy’, which we are being warned about, may yet be a few years down the road, perhaps sometime in 2020.

Moreover, no two past crises were similar and were triggered by unique catalysts. The 2007-09 crisis was a result of a crash in house prices, the 2000 crisis was led by the dotcom bubble burst, and the ones in the 1970s and 1990s were in response to geopolitics and oil price shocks from the Middle East. None of these catalysts seems to be on the horizon in 2019; oil supply from the Middle East does not seem to be a concern given the discovery of shale oil has made the US more self-reliant. Finally, long periods of economic expansion without a recession are not unusual if we tend to look beyond the US.

Australia is in the 27th year of economic expansion, having avoided a recession since January 1992. Japan (1975-92) and UK (1992-2008) have had long periods where the economy did not naturally overheat and encounter a recession at regular periods.

Outside of the US, there is no empirical evidence that recessions must follow after a specific time period of economic expansion (Source: Fact Set, Clear Bridge Investments)

The argument that points out at the flattening yield curve as the harbinger of the next US recession ignores how signals inherent to the yield curve have transformed in a world where major central banks have undertaken quantitative easing. First, the pace at which the US Fed unwound its balance sheet since Q4-2017 has been gradual, whereas rising fiscal deficit over the past three quarters has meant a greater issuance of shorter maturity bonds. This implied an oversupply of short-tenure bonds relative to long-tenure ones which the Fed is only gradually selling off as it undoes the QE stimulus.

Ergo, yields at the longer end of the curve remain supported, whereas oversupply on the shorter end keeps rates higher. Second, despite the unemployment rate falling to its lowest level in the post-war US, we have not seen a concomitant pick-up in either inflation or wages. It has been interpreted by a number of economists, including some at the US Fed, that inflation is likely to remain permanently lower compared with the levels before 2008. If the inflation risk falls in the future, it should encourage holders of longer-tenure bonds to seek a lower lock-in cost (yield) for their cash in fixed income securities, further pushing down long-term rates.

Between the noise of a market crash, a historical precedent, and flattening of the yield curve, it is easy to forget these data points are indicators of a future recession based on some assumptions. And, as discussed above, those underlying assumptions have been severely challenged in the current cycle of economic expansion.

Housing markets are improving but are far from overheating; mortgage credit is picking up, though under a more strict regulatory regime; consumer sentiment is near its peak, and retail sales and corporate profit margins are not yet flashing danger signs. As of now, it seems as if the fiscal stimulus unleashed by the current administration ($700 billion through repatriation of earnings, $100 billion in extra spending and $200 billion in tax cuts) is likely to provide enough boost to corporate earnings and consumption even in the coming year.

However, a slowdown two years down the line cannot be ruled out as the fiscal stimulus runs its course - persistent debt and deficit constraints come to bite and the current administration’s ill-informed trade policy begins to manifest itself in the disruption of global supply chains and a trace back in investment sentiment.

Though we are closer to the end of a cycle of economic expansion, it is unlikely that next year could see the US economic growth grind to a halt.

Even though it would be extremely bold to hazard a guess, I would say the next US recession would be shallower than in 2008; and would likely come from a corporate debt market crash.

As quantitative easing pushed down interest rates across the board in the US over the past ten years, the issuance of bonds by companies with questionable balance sheet metrics and risky business models has been on the rise. Indeed, the issuance of junk bonds or bonds with ratings lower than BBB (S&P) is higher today than it ever was even at the peak of the mortgage lending euphoria in 2006-07.

That said, inter-sector linkages of corporate debt are weaker than that of mortgage debt, as it was in the run-up to the 2008 financial crisis. Securitisation of corporate debt is tightly regulated and it is unlikely that a debt market crash could leave both, businesses and households’ balance sheets severely impaired. Furthermore, should the next crisis come from the corporate debt side, the recovery is likely to be quicker than the past recession. The exceedingly slow recovery in the current US economic cycle owed a lot to its nature – housing markets. Underwater homes meant people were still tied to a steep housing debt, which they were unable to pay and hence were unable to move jobs and regions - an essential catalyst for re-allocation of resources post a recession.

That said, markets may just be looking in the wrong direction when it comes to checking the symptoms of the next recession - rather than looking West, they could perhaps pay more attention to the East - China.

Analysis-wise, there is not as much to dissect in China’s data to come up with the probability of a recession. Chinese statistical authorities have been famous for keeping bad news about the economy close to their chest, revealing it many years later only when the pain has passed.

There is, therefore, a high likelihood that even when a sharp deterioration in the Chinese economy takes place sometime next year, we may only see it being gradually reflected in economic data.

But before trying to divine the likelihood of a slowdown in China next year, let us just recount - for the sake of Indian readers who tend to underestimate its economic heft - some numbers. Schwenza (2013) calculated that as of 2011, China produced 91 percent of world’s computing equipment, 80 percent of its lighting equipment, 74 percent solar cells, 71 percent mobile phones, 63 percent shoes, 60 percent cement, 48 percent coal and 45 percent ships and shipbuilding equipment. A recession, or even a 2-3 percent year-on-year slowdown in China, hurts everyone - wherever they are.

If this is so, what may bring about a slowdown in economic growth? Something way beyond what the government has been broadcasting as a slow normalisation in the 6-6.5 percent growth range by 2020. Though it may occupy much news space these days, a trade war, with tariffs and sanctions on China, is unlikely to induce an economic slowdown on its own.

Though it is massive relative to the world, trade contribution to China’s GDP growth has been less than 0.5 percent consistently since 2013 – and exports to the US are only 19 percent of the total. This also indicates the enormity of its domestic market. A likely trigger to the so-called “hard landing” in the case of China could come from its inability to stimulate the credit growth in the economy, despite monetary easing.

That China’s total credit to GDP ratio (from 140 percent of GDP in 2008 to 260 percent now) has been a perennial risk to the stability of the global economy has been known for quite a few years now. Indeed, in October 2017, former PBoC Governor Zhou Xiaochuan pointed out that China was nearing a “Minsky Moment”, where he warned that excessive growth in corporate and household lending could lead to a sudden crash in asset prices, leading to a completely unanticipated economic slowdown.

Since then, the Chinese government has been walking the tightrope between balancing an orderly deleveraging of the economy without causing rapid deterioration in growth. However, even a government so centralised in authority, and powerful in its policy-making ability as China has had to make compromises towards its agenda of de-risking the economy through an orderly default and resolution of sick enterprises in the mining and heavy industrials sector thanks to the powerful factions within the Communist Party who have interests in such businesses.

Aggregate credit growth in China has stalled even as the central bank has aggressively cut reserve ratios and the government has encouraged spending. (Source: CEIC)

There are credible reasons to believe that China’s moment of reckoning could come this year, as it may not satisfactorily be able to address its debt problem. Data through the second half of this year shows the credit appetite of Chinese firms has been waning – possibly because a number of businesses in the market are so overladen with debt servicing that they do not want any more loans.

Despite four cuts to reserve requirement ratios this year and local governments’ efforts to boost construction spending, the credit growth rose in October at the slowest pace since the financial crisis (see chart). Also, the government announced tax reductions on import tariff on machinery, electrical equipment and textile products – industrial profits, which we estimate to be an important indicator for future investment spending, have softened for five straight months and now sit at a seven-month low.

If credit growth continues to languish and industrial profits remain subdued for another two to three months, we believe it could point towards a steady deterioration in demand conditions later next year, perhaps resulting in a higher likelihood of a hard landing.

That said, given the Chinese government’s cautiousness while broadcasting bad news, we may never know the extent and timing of such a slowdown if we continue to look at the headline GDP numbers.

Nevertheless, for firms with business interests in China, such pains may come in the guise of lower export orders, less willingness to finalise FDI and investment deals, and a general crash in the price of industrial commodities. The troubles, if they flare up in China, will be too big to hide, and hide from.


Also read: India 2019 general elections: The critical overs of the power play begin



Why startups focusing on healthy food sector may be the next big disruptor?

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Nature has its own way of balancing everything on the planet. No matter what we do, one thing humans cannot rewrite is the balance of life. This also holds true with the food we consume. The stone age man lived off natural fruits, vegetables and meat. And until a few decades ago, most of the food grew organically and was sourced locally.

However, over the last two decades, F&B (food and beverage) has become more industrial than ever. Mass production of F&B products with better shelf life meant higher revenues. So, food with preservatives and food which can essentially be processed in factories has taken a huge market share.

Changing Scenario

Off late, there has been a realisation across the globe, with respect to health and wellness. Most people these days make it a point to invest their time and energy into staying fit and eating right. With the advent of the internet and the availability of information over the last 20 years, the customer is well informed of what is really healthy and what is not. The global wellness industry grew 12.8 percent from 2015-2017, from a $3.7 trillion to a $4.2 trillion market. To put that in the economic context, from 2015-2017, the wellness economy grew 6.4 percent annually, nearly twice as fast as global economic growth (3.6 percent). (source: https://globalwellnessinstitute.org).

A shift towards wholesome & healthy food options

Now, talking about healthy F&B, there are very few things which can be mass produced and stored and transported like industrial goods. Natural, fresh and locally sourced food is considered to be more wholesome and healthy than packaged food off the shelf. The progressive health and wellness consumers are increasingly influencing and changing the F&B culture. The consumers are looking beyond the weight loss fad as wholesome food, which gives us energy and connects to our body, has become more valuable than a zero sugar or a zero fat food product.

Capitalising on new market trends

Recognising the market gap for wholesome food options, a lot of new businesses in the F&B sector are focussing towards health and wellness. Some of these companies aim to meet the customers need for minimally processed products containing natural ingredients while at the same time maintaining shelf life and food safety standards. On the other hand, few companies concentrate on providing fresh and wholesome food to the consumers, which mean the products having a lesser shelf life. According to Nielsen, the overall health and wellness food products segment crossed Rs 10,000 crore sales mark in 2015, less than 10 percent of the overall food market, and the entrepreneurs are capitalising on the rising demand for healthy F&B.

Challenges

A big challenge in this model is the logistics and sourcing. Fresh food production is highly dependent on the seasons and weather conditions and there is a very heavy investment in cold storage for retaining the freshness of the product. But a lot of new startups are being very innovative and are implementing new methods and processes to solve these issues and make sure the market gap is addressed.

As a consumer, we have thousands of options for processed food but very few organic and healthy options. The market is there, but there is no real big game changer who has come and captured this huge market to cater to the needs of the new age consumer who demands a high quality wholesome and healthy product. But like any other market need, this would be filled and satisfied in the near future and it is likely to have the next disruptor from the startup serving healthy F&B.

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)

All aboard the unstoppable data-led fintech sector

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Riding on the back of hitherto unavailable data, deeper penetration into the hinterlands and strategic collaborations with legacy players, there is no stopping the fintech startups and companies in India.

As fintech continues to innovate and evolve at a rapid pace, fintech startups and companies have broadened their horizons to cater to a diverse range of segments in the financial sector. Having disrupted the payments and remittances space with new and efficient technologies, both existing as well as new fintech firms have expanded their footprint across areas such as personal banking, personal financial management, consumer and business loans, investments, financial advisory, etc.

These fintech startups owe their exponential growth and success to the major paradigm shift in consumer behaviour over the last few years, as the increasing use of smartphones and easy access to affordable internet has driven the demand for digitally accessible products and services across the banking and financial services spectrum. As a result, various players from across the financial services industry have capitalised this massive opportunity by augmenting the level of technology integration in their processes to create new services driven by digitisation and personalisation – for consumers and businesses alike.

Further, technology integration has transformed the business model of lending in the following ways:

Lead generation:

Smartphones and internet have widened the spectrum of eligible borrowers, making financial inclusion a reality.

Data availability:

The most important game changer in the fintech model is increased data availability. As a result, financial services have benefited in the following two ways:

  • Companies have used technology to ensure easy availability of existing data points. One such example is the ability to read bank statements of a customer with his consent through an app without the customers having to upload or share bank statements.
  • Availability of new sources of data such as digital footprint in social media for retail customers or daily sales volumes through aggregators in case of MSMEs.

Advanced credit underwriting:

Availability of data points enable the companies to have a holistic credit view of the customer. The traditional assessment system has been replaced with scorecards, which draw inputs from multiple data sources. Companies have clustered discrete data points of a customer ranging from lifestyle, peer circle, credit history and desperation for funds to predict expected customer behaviour. For business loans, technology has shifted underwriting from balance sheet-driven assessments to cash flow-driven assessment as the latter is a better representation of a company’s ability to repay. Also, cash flow from alternative channels reduces the possibilities of fraud.

Customised product solutions:

Technology-enabled underwriting capabilities help fintech companies take a lifecycle view of a customer. Fintech companies are able to customise products based on client requirements rather than using a one-size-fits-all approach. Larger finance companies have used technology and data science to reach customers with financial solutions ahead of requirement. Take EMI cards, for example, which ensured customer retention.

Ability to monitor real-time:

Fintech companies have used technology to identify early warning signals for credit deterioration or intentional default. Decreasing sales in aggregator platform or retail borrowers reaching out for additional loans can be addressed on a real-time basis. Lending platforms provide dynamic credit underwriting of corporate clients every quarter to all stakeholders.

All of the above have resulted in superior customer satisfaction. However, with any major technological transformation in any industry, fintech also has certain challenges to overcome, both in the present as well as those likely to arise in the foreseeable future. On the other hand, the opportunities for fintech will be potentially massive once the sector finds effective solutions to these challenges.

Present challenges and opportunities in the future for fintech

The total asset base of lending fintech startups would be in the range of  Rs 3,000 to Rs 4,000 crore. Fintech companies have to demonstrate their superior credit underwriting capabilities over a longer time period and business cycles for equity and debt participants to draw comfort.

The cost of leads through online platforms, data and technology are also quite significant for fintech companies, and so must continuously add value to retain and turn profitable at a customer level. In case of lending to businesses through fintech platforms, the value proposition to the customer is still evolving. Fintech companies lending to businesses are also partnering with direct sales agents for leads because of a lack of clarity in their value proposition for the customer. The fact that SME borrowers value physical touch points indicates an opportunity for omnichannel credit marketplaces. Such a model could be comparatively more sustainable in the long term for fintech firms, given that is a large portion of potential SME borrowers are not digital and transact through offline means.

Furthermore, financial services have traditionally relied on the ability to touch base with a customer to select, underwrite and to collect. In the fintech model, these touch points have become non-existent. Having a robust collection infrastructure that can reach out to a deteriorating or delinquent customer at the earliest is a primary requirement for the model to sustain. And breaking geographical barriers for client acquisition has increased challenges from a collection and customer service perspective. Virtual communication channels, however, offer a more convenient way of reaching out to customers.

Opportunities and the way forward

According to a World Bank report, the number of adults with bank accounts in India rose to 80 percent of the total population during FY2018. For one, the growing penetration of mobile phones in the country has contributed immensely to more people in rural and semi-rural regions opening savings accounts and being able to access basic banking services. There are currently 92 mobile connections for every 100 individuals in the country – a total of 1.183 billion connections, according to data released by the Telecom Regulatory Authority of India (TRAI).

With all of these factors at play, fintech startups are presented with a massive opportunity to expand their base. However, most of them have a considerably smaller distribution network that is mostly limited to metros and Tier-I cities. Hence, fintech firms need to look beyond the metros and Tier-I cities to capitalise on the opportunities in Tier-III and IV towns, as well as rural and semi-urban regions in general.

Traditional banking and financial services companies, on the other hand, have a considerably wider distribution network and much deeper pockets as compared to growing fintech startups. Some of the larger traditional players have evolved as fintech players because of their ability to mine data to come up with intelligent product solutions.  Financial institutions that are unwilling to recognise these changes will not be able to compete with the level of speed and efficiency of fintech-powered financial products and services. Therefore, combined with evolving consumer demands and a potentially huge, untapped market of unbanked and unserved customers segments, the dynamics between legacy players and fintech firms are changing, with a competition giving way to a trend of collaborative innovation between the two sectors.

This is currently one of the biggest opportunities in front of the fintech sector.

Successful collaboration will require an effective synergy of the strengths of both traditional business models and fintech-driven models to deliver high-quality products and services as well as a level of customer experience which would not be possible for these players as individual units. This is because what sets most fintech firms and startups apart from the legacy financial sector is their focus on innovation and agility, and a clear consumer-centric approach to building a digital infrastructure.

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)

Sequoia, Accel and Blume were the most active startup investors of 2018; China-based Shunwei Capital enters the top 10

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As 2018 winds down, we take a look at the investors - venture capital firms - that made the most number of investments in the Indian startup ecosystem over the course of the year. While the top 10 contain several familiar names, there’s also an interesting new entrant.

Sequoia Capital India remained the most active VC firm in the country, making 34 investments in 2018. Right behind was Accel Partners, having closed 33 deals, followed by Blume Ventures with 21. Rounding off the list in tenth place was Chinese VC fund Shunwei Capital.

Investors, funding
Photo by Shannon Rowies on Unsplash

According to YourStory Research, the 10 most active VC firms participated in 202 of the 750-plus investment deals made in 2018, accounting for total deal value of more than $4.4 billion, 76 percent higher than 2017. Together, they accounted for 40 percent of total funding raised (about $12 billion as of last week).

Last year, the 10 most active 10 VC firms participated in 184 deals, together pouring in more than $2.5 billion, or just 18 percent of total funding raised.

Sequoia Capital participated in 34 deals worth $1.81 billion, more than double the $901 million last year. This included follow-on rounds in portfolio companies such as co-working space provider Awfis, foodtech player FAASOS, NBFCs Finova Capital and Five Star Business Finance, accommodation ‘unicorn’ OYO, cold-pressed juice maker Raw Pressery and edtech startp Unacademy.

Sequoia also announced in August that it had closed its sixth India-focused fund with $695 million to be deployed across early and growth-stage startups.

Accel’s investments included three large deals north of $100 million – it participated in robotics startup UiPath’s Series C round ($225 million), Freshworks’ $100 million Series G, and Cure.Fit’s $120 million Series C. The VC firm looks to remain fond of SaaS startups, having invested in 8 rounds in the sector, ranging from Pre-Series A to late-stage deals.

Chiratae Ventures (formerly IDG Ventures India) dropped to fourth place this year, making way for Blume Ventures which rose one spot to #3.

Chiratae’s investment portfolio this year too remained wide-ranging across agritech, healthtech, media, fintech, AI, and SaaS, among others. Blume’s disclosed deals ranged from a $300,000 investment in DIY video platform Rocketium to the $140 million Series C in robotics startup Grey Orange.

They were followed by SAIF Partners, Kalaari Capital, Nexus Venture Partners, Matrix Partners, Omidyar Network and Shunwei Capital.

China’s Shunwei Capital made its entry into the list of 10 most active VC investors by closing 12 deals in 2018, compared to just five deals in 2017. Its investments in India were well spread out across sectors and stages, ranging from a $2 million round in automotive startup Trubil to $118.2 million in social networking platform ShareChat across two rounds. However, it does seem to be partial to fintech and Indian-language-focused players.

Shunwei’s other investments in India include Indian-language media player Pratilipi, fintech lender ZestMoney, micro-lender Krazybee, re-commerce platform Cashify, Indian-language peer-to-peer knowledge sharing platform Vokal, chat entertainment platform Samosa Labs, among others.

In November this year, Shunwei Capital also raised one of its largest funds yet, mopping up $1.21 billion.

Another notable entry in the list is impact investment firm Omidyar Network, with bets spread across Media, Fintech and Edtech. The biggest round it participated in was ZestMoney’s Series A of $13.4 million.

Kalaari Capital closed 17 deals this year, with the biggest being Cure.Fit’s $120 million Series C round. Several other portfolio companies also raised follow-on rounds, including gaming startup Dream11, PopXO, Affordplan and Signzy, among others. Kalaari also notched up several exits, including Flipkart (via its holdings in Myntra), Mettl, Embibe, and Via.

SAIF Partners, with offices in China and India, ranked eighth last year with 12 deals, is now at #5 with 18 deals. The two largest were the $100 million rounds in BookMyShow (Series D) and ShareChat (Series C).

Top ten active investors in 2018

Selection criteria

Note: The criterion for choosing the most active VC firms were the number of deals by these investors that were publicly disclosed, and in which these firms participated (individually or in syndication). For example, even though Shunwei Capital participated in 12 deals that raised $212 million, it is ranked below Omidyar Network, which participated in a greater number of deals (15) though the deal value there was far lower at $71 million.

YourStory reached out to all the companies listed for their confirmation; some declined to respond.

The active investors in the Indian startup ecosystem have grown both in terms of their deal sizes and diversity. According to one investor we quoted in our analysis of funding rounds closed this year, there is a marked shift in the kind of ideas emerging from startups this year, which in turn is driving up investor interest. “There are a lot more original ideas this year and less of me-too ideas. Entrepreneurs are coming up with first-principle ideas aimed at solving existing problems in India,” the early-stage investor said.


Zoomcar shuts operations of dockless cycle sharing platform - Pedl

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Zoomcar, the car rental platform, on Tuesday sent a mail stating that it is will be putting an interim stop to its Pedl services Pan-India by December 21. The Bengaluru-based platform had launched PEDL, its cycle-sharing vertical in Bengaluru’s HSR Layout in November 2017. The e-mail stated that in 12 months since its launch, PEDL has officially served over three million bookings pan-India.

The e-mail said:

As you likely witnessed over the past year, Zoomcar continuously introduced new features and offerings to improve the overall PEDL experience.  Whether through a more flexible end-trip mechanism or through a pioneering, industry-leading subscription model, the Zoomcar team always sought to push the boundaries on the cycle sharing experience.

Despite these improvements, one area where we still have work to do is on the quality of the cycle itself.  While Zoomcar has iterated on several cycle designs with a variety of different cycle manufacturing partners, we are yet to arrive at an optimal solution that will help us to deliver a consistently excellent customer experience at a meaningful scale. 

The email also stated that for those who recently signed up for a PEDL subscription, the Zoomcar team will connect later this week with a refund or a similar in-kind offer.

Greg is yet to comment on YourStory's query on this development. Earlier this year, Zoomcar raised $40 million in Series C funding led by Mahindra & Mahindra Ltd. Operational for five years, Zoomcar has a fleet of nearly 3,000 cars spread across 26 cities. When Zoomcar launched Pedl, the team was bullish about its growth.

Yet, one of the biggest concerns for bike or cycle sharing is maintaining the quality of the vehicles.

Since the end of 2017, the number of players entering the bike or cycle-sharing space in India has been growing, and with good reason. With the growing traffic snarls, trying to reach your destination is often quicker on bicycles.

Apart from Zoomcar, even Ola entered the space in 2017 with Pedal. There are also other players like Yulu, founded by Amit Gupta, Co-founder of mobile advertising platform Inmobi, Letscycle and 2018 Tech30 startup Mobycy.

Even Bounce, (earlier known as Metro Bikes) took over the assets of Chinese bike sharing unicorn Ofo in India. Earlier this year, Chinese dockless bike sharing unicorn Ofo had entered India with a big bang. A few months down the line, Ofo faced a cash crunch across geographies and while there was good demand for the service, there were not enough bikes available.

Bike-sharing or cycle-sharing is nevertheless a lucrative sector and many players continue to feel bullish about the space.

At Maharashtra Startup Week, discover why B2G projects are a win-win for startups and state government

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In September 2018, when the rest of country was dealing with the huge amount of waste generated during the Ganesh Chaturthi celebrations, a Mumbai-based startup quietly worked with the Pimpri-Chinchwad Municipal Corporation and collected 1.72 tons of floating waste. The startup, Sagar Defence Engineering, had deployed its surface water drone in three water bodies in the jurisdiction of the municipal corporation, accessing extremely unhygienic places where human intervention was not possible.

Elsewhere, the Zilla Parishad of Aurangabad was working with a startup on something that has been a national concern for decades – how to empower farmers to earn sustainable income. In this process, S4S Technologies, a food preservation startup , is working with the local government body to provide farmers in Aurangabad 25 solar-powered electricity free food dehydrators developed by them. This is to enable the farmers to augment their income by creating value-added farm products.

Another startup, Urvi Agrotech, is working with the Women and Child Development Department of Maharashtra on a pilot project to provide hand tractors to Self-Help Groups of women so that they can further rent it to out to farmers at subsidised rates ,and achieve the twin objective of empowering women and farmers.

Maharashtra Startup Week is a one-of-a-kind opportunity for startups to pilot and scale your solution. Apply now for #mahastartupweek.

In addition to the social impact and the potential to bring positive change, another common factor between these three startups is that they were among the 24 winning startups that were part of the Maharashtra Startup Week 2018 in June. The inaugural edition of the startup initiative was a resounding success with participation from over 900 startups.

Maharashtra Chief Minister Devendra Fadnavis had reiterated his state government’s commitment to make Maharashtra a hub for startups with more initiatives such as the Maharashtra Startup Week. In keeping with this commitment, they have brought back Maharashtra Startup Week within a span of six months.

The second edition of Maharashtra Startup Week is being held from January 28 to February 1, 2019.

Maharashtra Startup Week 2019

Organised by the Maharashtra State Innovation Society, (MSInS)  the weeklong initiative aims to encourage, engage and enable the state’s entrepreneurial ecosystem. The Maharashtra Startup Week provides startups with a platform to showcase their innovative solutions to the Government of Maharashtra, directly engage with the government to tap B2G opportunities and to scale up their ventures in the overseas market.

The second edition aims to recognise startups from seven key sectors – education & skilling, healthcare, agriculture, sustainability, (clean energy, environment, water & waste water management) smart infrastructure & mobility, governance and financial inclusion/fintech. Additionally, to enable startups from other sectors to leverage the opportunities that an initiative of this kind opens up, the Maharashtra State Innovation Society has also created an additional category that allows startups that do not fit into any of the above categories to participate.

What’s in it for startups?

The top 100 startups participating in the Maharashtra Startup Week will be selected to showcase their solutions to a panel of judges comprising representatives from the Government, industry, academia and investors. During the five-day event startups from each sector will make their pitch to the panel, and the best 24 will receive work orders of upto Rs 15 lakh from the Maharashtra State Innovation Society to pilot their solutions and demonstrate the proof of concept. Subsequently, the startups will also receive handholding support in terms of access to government machinery and mentoring from institutional partners for a period of up to 12 months to deploy their solutions on ground.

Apart from the 24 winning startups, the top 100 startups will stand a chance to receive support up to Rs 15 lakh for market development programme. The Maharashtra State Innovation Society is partnering with multiple investors and incubators for the initiative.  These partner organisations will consider the top 100 finalists for funding and mentorship. Apart from the 24 winners, select startups will also avail benefits like access to exhibition space and networking with VCs/ ecosystem partners, access to specific ecosystem events, free credits, international linkages and other benefits. Ecosystem partners include of the likes of the Indian Angel Network, Omidyar Network, CII, Acumen, 91 Springboard, among others

The last date for applying for the Maharashtra Startup Week is January 5, 2019. The startups will be evaluated based on Unique Value Proposition, Leadership Team, Social Impact, Sustainability & Scalability, Relevance for government and Technology Advantage (if any).

The results will be out on January 21, 2019 and applicants will be notified about their status.  The selected 100 startups will get to participate in the week-long event during which they will pitch to a panel of government officials, investors, incubators, and experts from industry and academia. 24 winning startups will receive support from the Maharashtra Government in deploying their solutions and demonstrating proof-of-concept.

Apply for Maharashtra Startup Week 2019. Win work orders of upto Rs 15 lakh,  get a chance to work on government projects, and more.

Driving the next wave of growth

In its quest to reimagine development in the state, the state government of Maharashtra has taken a proactive step to partner with the private sector, especially startups. It has not only drafted and implemented a strong policy which keeps ease of doing business at its core, it has also made it easier for young and innovative companies which may be fairly new to partner with the government. In addition, the government consciously helps startups tap growth opportunities faster by connecting them to potential customers and related ecosystem players.

The Maharashtra Startup Week has been an amalgamation of these efforts and showcases the immense potential of B2G opportunities. After a stupendous first edition, the next edition of Maharashtra Startup Week 2019 promises to be nothing less.

It’s not just the prospect of getting access to funding, mentoring and business that makes the Maharashtra Startup Week 2019 exciting for startups. What makes it even more worthwhile is seeing your solution have a positive impact on development in the country.

The last date for applying for the Maharashtra Startup Week is January 5, 2019. Don’t miss this chance to tap B2G opportunities. Head to the applications page right away.

People are looking up “cerebrum” on Google, thanks to Taapsee Pannu’s response to sexist troll

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The Pink actor served a subtle burn when a social media user talked about her body parts in a tweet shared on Monday. Her response has since caused a surge in Google search for “cerebrum”.   

It’s the age of internet, people, where a troll might have the liberty to post anything, but not without incurring some damage in the process. Most recently, though, the responsibility fell upon Bollywood actor Taapsee Pannu to shut down a sexist Twitter user, while teaching him a thing or two about the human anatomy.

The latest debacle happened when a social media user tweeted at Taapsee, making a rather inappropriate comment, objectifying the Pink actor. “@taapsee i love your body parts,” read the distasteful tweet posted by a user, who goes by the name of Aku Pandey.

Not one to take such a sexist and tasteless comment without responding in kind, the model and actor hit back with a savage response. In one swift jab, Taapsee shut down the user  replying that she is also a big fan of them, body parts, and asking “BTW which is your favourite? (sic)”

“Mine is the cerebrum,” she cheekily added.

https://twitter.com/taapsee/status/1074692194425061376

Her response unsurprisingly caused a social media furore, with most people siding with Taapsee and even applauding her for her witty comeback.

“Terribly mean of you to boast about a body part which the troll doesn't have,” wrote a user by the name of Sushant Sareen.

“Just love how she handles everything let it be her troll or anything. @taapsee is like SRK when it comes to wit while replying on Twitter,” added a second user.

A third one chimed in, writing, “Good one, perfect response. Fairly confident he doesn’t know what cerebrum is!” It’s highly possible that the user is actually right.

Soon after Taapsee sent social media wild with her “cerebrum” tweet, there has been a surge on Google search for this particular part of the brain. One of the actor’s Twitter followers was kind enough to point this out with a snapshot of Google India’s search trend from last night.

“You actually caused a surge in @GoogleIndia 's search trend last night and today ( after your tweet at 9 pm ) for 'cerebrum' looks like Mr Pandey and his friends were busy trying to figure out what it meant,” the Twitter user wrote.

https://twitter.com/iam_rahool/status/1074913021825306624

Just in case, cerebrum is the largest part of the brain, that is divided into four regions called lobes that control senses, thoughts, and movements. 

Four transgenders offer prayers at Sabarimala amid police security

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The Kerala police had earlier turned them away from offering prayers at Sabarimala saying that they had to get some legal clarity on the issue.

Four transgenders, who were earlier stopped from proceeding towards the Lord Ayyappa temple in Sabarimala, on Tuesday offered prayers at the hill shrine under a heavy police security cover.

Ananya, Trupti, Renjumol and Avanthika, clad in traditional black sarees and carrying the customary "Irrumudikettu" (sacred offerings to the deity), were escorted by police from Nilackal to Pamba and during the trek to the shrine.

Sabarimala
Sabarimala Temple (Image: Shutterstock)

They said they were extremely happy to have got the opportunity to offer prayers at the temple and that this was their life's mission which had been realised.

They had met DGP A Hemachandran, a member of the Kerala High Court-appointed supervisory panel, and Inspector General of Police Manoj Abraham here on Monday after which they were allowed to proceed.

The police had earlier turned them away, saying that they had to get some legal clarity on the issue.

The state had witnessed massive protests by devotees opposing the entry of girls and women in 10-50 age group into the Sabarimala temple since the Kerala government decided to implement a Supreme Court order, permitting women of all age groups into the shrine.

Over a dozen women have so far made unsuccessful attempts to trek the holy hills.

The high court had earlier this month appointed the three-member committee, vesting them with powers to oversee law and order and other problems faced by pilgrims during the ongoing annual season.

Meanwhile, the shrine witnessed a big crowd of pilgrims on Tuesday.


No online sale of medicines till norms in place, says Delhi HC

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The Delhi High Court on Tuesday said its stay on sale of drugs and prescription medicines by online pharmacies will continue till rules are framed to regulate such entities.

A bench comprising Chief Justice Rajendra Menon and Justice VK Rao said that "once the rules come into play, you (online pharmacies) can start selling it (medicines). Problem is that today there are no rules regulating it".

The observations by the bench were made while hearing the applications moved by some online pharmacies seeking to be impleaded in the matter.

medicines

The pharmacies urged the court to remove the prohibition on online sale of drugs, saying they held licences and no medicines were sold illegally.

They also contended that even prescription drugs were sold only if there was a valid prescription from a doctor.

The applications for impleadment were filed in a PIL by Zaheer Ahmed seeking a ban on "illegal" sale of drugs and medicines online.

During the hearing, the petitioner informed the bench that the Madras High Court on Monday had banned online sale of medicines till the Union Health Ministry and the Central Drugs Standard Control Organisation (CDSCO) notified the proposed Drugs and Cosmetics Amendment Rules, 2018 in the gazette at the earliest by January 31.

The Madras High Court, however, kept the operation of its order in abeyance till December 20, to enable the online pharmacies to challenge the decision.

On being informed of the development, the Delhi High Court listed the matter for hearing on December 20.

In his petition, Ahmed has said that the online illegal sale of medicines would lead to a drug epidemic, drug abuse and mis-utilisation of habit forming and addictive drugs.

It has claimed that the Ministry of Health, CDSCO and an expert committee appointed by the drug consultative committee have already concluded that the online sale of medicines was in contravention of the provisions of Drugs and Cosmetics Act, 1940 and the other allied laws.

Still lakhs of drugs are being sold on the Internet every day, it has said, adding that some of the drugs/ medicines contain narcotic and psychotropic substance and some can cause antibiotic resistant-bacteria, which is a threat not only to the patient but to the humanity at large.

"It is a matter of public knowledge that ecommerce websites have been caught on numerous occasions of selling fake products. Unlike consumer items, drugs are extremely potent substances and consuming wrong dose or fake medicine can have fatal consequences on the patient," it said.

The petition said that as of now there is no mechanism to control the sale of medicines on the Internet and this puts health and lives of people at a high risk and affects their right to a safe and healthy life under Article 21 of the Constitution.

"Online pharmacies are operating without a drug licence and cannot be regulated in the present regime. Unregulated and unlicensed sale of medicines will increase risk of spurious, misbranded and sub-standard drugs being sold," the plea has said.

The plea has sought direction to the authorities to take action against the entities distributing, selling or exhibiting drugs on the internet.

It has also sought direction for constitution of an expert committee to find out the total number of websites which are distributing and selling the drugs in the country and to impose a ban on the online sale and purchase of medicines.

India second-most mobile spam affected country; telcos are the biggest spammers

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Truecaller says every fourth call received in 2018 was spam, and Brazil is the most spam hit country in the world. 

Surprise, surprise! Your telecom operator is the biggest spammer on your phone.

Telcos accounted for 91 percent of all spam calls on Indian users’ phones this year, reveals Truecaller Insights Report 2018. In 2018, 6.1 percent of overall calls received by Indians were spam calls, making it the second-most spam-affected country in the world behind only Brazil.

However, spam calls received per user/per month dropped marginally by 1.5 percent compared to last year. This could be a function of India’s rapidly increasing mobile user base.

truecaller

Incidentally, Truecaller - which happens to be India’s fourth-most downloaded app - was successful in identifying and blocking 20.2 billion calls. The country is Truecaller’s biggest market with over 150 million users - more than 60 percent of its global user base.

The app managed to block 17.7 billion spam calls across the world. In total, it helped its users identify 74.1 billion calls all over the world.

The report found that operators and telecom service providers called users “for the upselling of various offers and balance reminders”. This was followed by scam callers and telemarketers who accounted for 7 percent and 2 percent of spam calls respectively. Scam calls have more than doubled compared to last year from 3 percent to 7 percent, “which is very alarming,” stated the report.

It observed,

“Digging deeper into the bigger markets, we found common categories that tie all these spam calls together. The biggest pattern we could see was that operators across the world are the biggest spammers. We could also see that telemarketing calls from financial services, debt collectors and insurance related matters are spamming our users globally.”

Brazil witnessed an increase of 81 percent in spam calls, which led it to surpass India - that had topped the 2017 list.

Other highly spam-affected countries in 2018 included Chile, South Africa, Mexico, US, Spain, Italy, and others.

The US dropped from #2 to #8 in the list this year. Despite the decrease of spam calls, the country continues to be plagued by phone scams. Truecaller found, “1 in every 10 American adults (10 percent) lost money from a phone scam in the past 12 months”.

The year also brought about a big increase of spam calls in European markets, especially in Spain (100 percent), Greece (54.1 percent) and Italy (22.7 percent.) In Latin American, several countries jostled with the spam problem. Costa Rica witnessed the highest increase in percentage terms (330 percent), Truecaller stated.


'Creative thinking is your birthright' - success tips for creativity in a world of ideas

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This compact book shows the way to be creative thinkers and doers at the level of individuals and organisations.

How to get Great Ideas

Creativity is a powerful force for change and impact, but is often misunderstood and not properly channeled. The new book, How to Get to Great Ideas: A System for Smart, Extraordinary Thinking by Dave Birss offers a range of insights into the art and practice of creative thinking.

Dave Birss spent 20 years as an advertising creative at UK agencies such as Poke, OgilvyOne and McCann Worldgroup. He was also Editor at Large for The Drum Magazine, author of A User Guide to the Creative Mind, and founder-editor of OpenForIdeas.org.

The 12 chapters are spread across 320 pages, and make for an informative and witty read. Here are my three clusters of takeaways from this book; see also my reviews of the related books The Other Ideas, Show Your Work, and The Art of Creative Thinking.

I. Understanding creativity: roots and structures

The author begins by rightly showing that creativity is an over-used and misunderstood term. He debunks a number of myths and misconceptions: creativity comes only from spiritual or divine sources, you need to be a genius or expert to be creative, it applies only to arts, it is only about entirely original ideas, it requires zero constraints, great ideas sell themselves, its existence is binary, it is innate and not acquired, and it is all about brainstorming.

“You do need a certain amount of knowledge to be able to come up with useful ideas, but too much knowledge can work against you,” Dave explains. There is a “sweet spot” where you have enough knowledge to understand the problems but haven’t adopted too many of the limiting assumptions. Expertise and experience have their usefulness, but also their limits.

As examples, Dave shows how the movie Alien was pitched as a combination of Jaws and Star Wars (‘Jaws in space’). The concept of ‘beam them down’ in Star Trek was devised as a way to work around budget constraints. Nikola Tesla had a great idea in alternating currents, but had to endure ridicule, insults and even dirty tricks before it was accepted as the better and safer option.

Creativity is like a brain muscle that can be developed, and can be improved to make better connections and develop an instinct for what works. Habits, attitude and hard work can make anyone creative.

Dave distinguishes between “creative thinking” (coming up with ideas) and “creative doing” (skills and practices, eg., writing, dancing, painting). A creative idea is both new and valuable; it can be new to the world or to your industry, company and yourself.

Once you come up with an idea, the next steps are to keep doing it, stop doing it, or undo it. The value of an idea can be a different way of production, process improvement, income generation, differentiation, or audience emotion. Some ideas are seen as more practical than others, depending on the context.

Creativity has led to the rise and successes of the human race, and it is the sense of play that led to the creative human, Dave explains, tracing the roots of creativity. “Curiosity is the foundation of creative thought,” he says, and adds that questioning and experimentation are its outward signs.

There are five levels of creative thinking: discover, reproduce, refine, repurpose, and combine. A complex world of specialised skills and professions calls for more collaborative creativity. Next frontiers to watch are the rise of creative AI, and research into neural patterns in human creativity.

We are increasingly outsourcing memory, mental processes, and even decision making to machines. “Maybe in the future our art galleries and music charts will be dominated by algorithmically generated creations. Maybe these AIs will even start writing books like this,” Dave jokes.

Creative thinkers are non-conformists, and stand out from groups in terms of look, knowledge, attitudes, abilities, beliefs and actions. They benefit from “useful divergence,” with a right mix of familiarity and novelty.

“Involuntary divergence” comes from physical diversity, cultural background, and even trauma or illness. “Voluntary divergence” can be switched on and off: contrarian thinking, dreaminess, altered states, and play.

Having diversity is only the first step for a creative workplace; the diverse thinking must be harnessed effectively. Altered states need to be just about drink and drugs, it can also be about meditation and exercise. Play is not the opposite of work, but a creative approach to ideation.

For example, Einstein conducted “thought experiments” to be able to get new ideas such as envisioning himself catching up to a wave of light. Combinations of ideas have been seen in the way Ford built the automobile assembly line model based on the dis-assembly model of abattoirs, and McDonald’s applied the Ford production-line idea to burgers.

The “creative perpetual motion machine” is powered by passion and drive. Creative thinkers are self-motivated, and enjoy what they are doing. They improve through continuous learning and incremental doing (including side projects), which are a great source of learning, motivation and achievement. They are actively involved in events, meetup groups, online communities and professional associations.

The author has developed a creative process framework called RIGHT: research, insight, generate, hone and test. Research helps dig into component parts, human networks, and underlying agendas. An insight is an observation that is unique and interesting; it builds on data, information, knowledge and wisdom.

Generation of ideas requires changing inputs, processes, assumptions, rules, interactions, and environment; this temporary new state enables divergence in thinking. A sense of judgment keeps ideas alive long enough before they are weeded out or chosen for development. Honing ideas involves moving from breadth of thinking to depth. Prototyping and testing make the ideas stronger.

The author cites a number of examples to illustrate these points. Taichi Ohno’s Toyota Production System has helped the company become more efficient, profitable and adaptable (also adopted as Lean Manufacturing). He uses the approach of the successive five why’s to drill down to the root causes of a problem.

General Mills’ insight into cake mixes was to make it easy (simplified) but not too easy (otherwise it even makes customers feel guilty or unfulfilled) – so they re-formulated the mix to require the addition of a real egg.

“Innovation is saying no to 1,000 things,” according to Steve Jobs. They may be exciting, but if they are not relevant or simple then they must be let go of, even if it feels brutal to eliminate the ideas.

Jeff Hawkins used to carry around a wooden prototype of his Palm device to simulate what it would be like to have a handheld product to check emails and write notes.

Such successes have not come without the right creative skills, explains Dave. He has developed a “creative skill pyramid” – imagination, judgment, adaptability, communications, persuasion and tenacity. Rising up in this pyramid requires skills that become more rare and valuable.

“Judgment is the product of knowledge and experience,” Dave explains, and helps zoom in on good ideas. Adaptability involves pivoting or changing direction to improve, reject or reinterpret an idea.

“Everyone is in sales, whether they like it or not. Even the best ideas need to be sold to people,” Dave adds. Idea pitches should focus on benefits (not just features), have a story flow, address the level of the audience, and end with a call to action.

Persuasion helps get people on board to bring the idea to fruition, and should tap motivation, shared vision, higher purpose, teamwork, and individual contributions. Tenacity sets apart a doer from a dabbler, a completer from a starter, and helps move from inception to implementation of an idea.

II. Individual creativity

To be individually and personally creative, you have to get to know yourself and find your “creative mojo,” Dave advises. “Divergence is a superpower. And it’s one we can all develop,” he urges.

This includes understanding different working modes and their effectiveness; time and spaces; level of isolation and stimulation; motivators and deterrents. Building skills requires some of the activities described earlier, such as questioning the status quo, jotting down notes and observations, and coming up with alternatives.

“Tinkering and purposeless play is a great way of discovering opportunities that conscious applied thought would never lead you to,” Dave recommends. Many polymaths are restless creative explorers who do not “grow up and settle down,” he jokes. Their aim is usually not to find a destination but to enjoy the creative journey.

An example is Tony Patrick, who describes himself as a “world builder” by creating fictional worlds that can have a real-world impact. “The entertainment industry invented our today,” says Dave, pointing to Minority Report and Star Trek as examples.

Connecting the dots is preceded by collecting the dots through divergent thinking. This involves going beyond “echo chambers.”

The author even describes how he sets himself tasks like becoming as good at drawing with his non-dominant hand as the dominant one. The creative journey involves asking What if? and Why not? “Your riches are in the journey itself,” Dave enthuses.

The brain’s “four modes” are feed, occupy, apply and rest. The author explains that much of brain occupation involves mundane and even anti-intellectual garbage, which should be avoided. The mind should be engaged, and not just be viewing content that washes over you.

Feeding the mind comes from high-quality nutritious content, and yields useful lessons. It can also come from new experiences and conversations with people you would not otherwise engage with. Application of the mind comes from combining ideas, writing up notes, or finishing projects.

Rest can include power naps, and a break from the feeling of constantly having to cram valuable dots into the mind. The author suggests activities like creating an “inspiration list” – writing down notes on interesting things you spot, distilling some underlying principles, and clustering them.

Going ahead, individuals need to find their right creative collaborators, depending on skill gaps, priorities, learnability, and complementary roles.

III. Corporate creativity

Many corporate leaders say they value creativity, but they probably say so because it is a nice thing to say, Dave jokes. Many leaders actually don’t understand what creativity is or how to nurture it in their organisations.

He observes that creative thinking is exciting, magical and even glamorous in launch stages of startups, then moves to scalability, efficiency, replicability and predictability of this creativity in growth stage. In maturity stage, unfortunately, the priority is profit and maximising the investment of shareholders – which makes them averse to risk and further bold, creative bets.

Many large organisations want the end result of creativity, but are not committed or able to support the process of creativity, Dave laments. Hierarchies are built on “layers of fear,” “layers of lawyers,” and power politics; this ultimately leads to new ideas being bruised and battered before they reach decision-makers.

Some companies, however, do value the wisdom of the workforce. Employees are given time and resources to suggest ideas and develop prototypes; managers commit to evaluate and execute on them. Cross-disciplinary teams help spur ideas, along with external involvement. Some companies have dedicated innovation divisions, but care must be taken to address concerns that their ideas may alter or take away others’ jobs.

For example, the Toyota Creative Ideas and Suggestion System (TCISS) shows a real desire for employee ideas and a full commitment to make them happen. Employee success is measured on efficient performance as well as generated ideas.

Other examples include Google’s 20 percent time for employee ideas (which lead to Gmail and AdSense). BBC Connected Studio engages with startups in interactive video, VR, smartphone storytelling, and games.

Some innovations are incremental in nature, and retain a sense of familiarity along the product evolution, eg., new versions of existing smartphones. Mistakes, blunders and failure are part of the creative journey, but should be treated as learning steps.

The author lists a range of useful questions to ask at the end of each failure: what worked well, what could have worked better, what was unexpected, what caused it, what could have been done differently, would we do it again, how did it affect the team, what new skills do we need, how can we improve, and what knowledge should we share with others.

Creative employees are motivated more by recognition than rewards. Companies should honour not just those who succeeded, but those who tried hard yet did not succeed.

“A mistake can lead you down a path that you would never otherwise have explored,” says Dave, drawing on Alexander Fleming’s accidental discovery of penicillin as an example. Embrace mistakes, do not shut them down, Dave advises.

He even draws hilarious examples from the world of music, citing Chuck Berry: “If you make a mistake, do it again. People will think you meant it.” The author himself made a mistake while playing the guitar, but played the wrong note again twice – converting the audience reaction of Ugh! into Oh! and then Aah!

Creative activities should be conducted not just in the office but outside; desks are not the best to get ideas, Dave jokes.

As a company that rewards employees for their work on ideas, he cites Austrian marketing head Heimo Hammer. Every week, employees send him short abstracts on interesting ideas they have come across. Once a month, a cross-section of employees discusses, debates and defends these ideas, and the best ones are given budget for implementation. Heimo also gets monthly ideas from 30 bright minds around the world.

Such debate on ideas is not always harmonious. It calls for respect, criticism of ideas and not people, constructive suggestions, listening without interruption, assessment of feedback, and mutual appreciation at the end of the exercise.

“Great culture is a by-product of truly valuing the humans within your organisation,” Dave explains. Culture must create norms without killing diversity, he cautions. Leaders must protect ideas from unnecessary negativity, and ideators from demotivators. Facilitators should ensure that loudmouths do not dominate discussion, and that effective note taking is followed at individual and group level to surface, elaborate, and evaluate ideas.

Idea challenges should be clearly defined by a creative brief specifying current problem, desired end state, solution properties, timing, resources, inspiring examples, project leadership, and other supporting information. It should focus more on “the field than the fence,” the opportunity and not the restrictions.

Trust is an important enabler of creativity in an organisation. It helps individuals overcome fear: of the unknown, uncertainty, discomfort and even rejection or punishment. Creating such safety is like having parachutes and airbags, and helps venturing out into the unknown. “The wrong kind of structure limits thinking, the right kind liberates it,” Dave explains.

The author cites improvisational comedy as a useful model to study “minimum structure, maximum autonomy.” The members trust and back one another, and effectively venture into the unknown as a group each time. Improvisation is creativity within constraints, and keeps ideas flowing and growing. The operating phrase is “Yes, and …” (participants agree and add on to each other).

In sum, the world needs better ideas more than ever before, says Dave, in the last chapter intriguingly titled ‘Introduction’ (what to do after reading the book). “The established corporations are looking for ways to outthink the nimble startups. The startups are looking for ways to outthink the established corporations. Ideas are the currency of business success,” he observes.

Creativity is becoming even more valuable as people are expected to have multiple careers in their lifetime, and need to unlearn and learn across industries. “Creative thinking makes us fulfilled. Embrace your difference. Creative thinking is your birthright,” Dave signs off.

Milkbasket raises additional $7M in funding round led by Mayfield Advisors

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New infusion brings Series A total to $14M for hyperlocal milk and grocery delivery startup Milkbasket; funds will be used to expand into newer cities, develop technology, and increase hiring.

Milkbasket, the Gurugram-based hyperlocal milk and daily needs delivery startup, has raised an additional infusion of $7 million to its earlier Series A funding of $7 million. This current funding was led by US-based VC firm Mayfield Advisors, and has boosted Milkbasket's total Series A funding to $14 million. The other investors include BeeNext, Kalaari Capital, Blume Ventures, and Unilever Ventures.

In January, Milkbasket announced pre-Series A funding of $3 million led by Unilever Ventures, Blume Ventures, and Lenovo Capital. The incoming institutional investors have also bought certain shares from Milkbasket’s existing investors. With this new investment, Milkbasket is aiming to acquire a fresh talent pool, continue to invest in technology, and expand in new territories in the country.

Anant Goel, Co-founder and CEO at Milkbasket, said Milkbasket was created in 2015  and conceptualised as one of India's first micro-delivery services for busy households. "The idea was to eliminate the hassles associated with traditional offline and even online grocery shopping. We have delivered over 5 million orders till date and have created a positive impact on over 50,000 families."

Milkbasket team
The Milkbasket team.

Speaking about the fund raise, he said the backing from Mayfield acted as a validation of their model. "The funding will accelerate our goal of making Milkbasket synonymous with grocery delivery, nationally. The funds will also enable us to invest adequately in developing technology and hiring for the next growth phase," Anant said.

According to industry estimates, grocery retail constitutes over 60 percent of the country’s total retail market, pegged currently at over $400 billion and growing at a CAGR in excess of 15 percent annually.

Milkbasket operates with a full-stack, in-house supply chain model. It achieved positive unit economics within the first six months of inception and has introduced the industry’s first flexi-ordering till midnight, delivery by 7 am, no minimum order, and free delivery model.

Speaking of the investment, Nikhil Khattau, MD, Mayfield India, said in a press statement:  "Regarded as the future of the industry, the company’s pioneering model has reinvented everyday lives of its customers. Grocery delivery industry in India is a specialist play, and Milkbasket's demonstrated expertise and acceptability makes us confident about the company’s exceptional growth potential.”

Present in Gurugram and Noida, Milkbasket claims to cater to over  600 communities and differentiates itself with a fully integrated in-house supply chain, from sourcing to last-mile delivery - owning the entire customer lifecycle experience.

Supr Daily, Daily Ninja, and MrNeeds are the other players in the micro-delivery space. BigBasket also ventured into the hyperlocal delivery space by acquiring Pune-based hyperlocal delivery startup RainCan and Bengaluru-based MorningCart.  

Fintech startup Phi Commerce is bringing doorstep payments innovation to non-metro India

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Pune-based Phi Commerce operates a payments processing platform, PayPhi, for Cash-on-Delivery orders. Now, it is also tapping into card and credit purchases.

That India runs on cash is a foregone conclusion. It is one of the reasons why demonetisation was deemed a “disaster” in most economic circles. Even though India’s online shoppers (of both goods and services) are estimated to cross 329 million by 2020, their primary mode of transaction remains offline i.e. cash on delivery (COD).

But, last-mile logistics around COD - from lack of trust and connectivity issues to clunky payment gateways - continue to plague all stakeholders: merchants, delivery partners, and customers. Additionally, cash collection costs are huge, and issues like fraud, pilferage, and counterfeit notes, prevail.

It is this problem that Pune-based fintech startup Phi Commerce set out to resolve three years ago. It built an omni-channel frictionless payment processing platform - PayPhi - that enabled all modes of digital payments at the customer’s doorstep.

Jose Thatil, CEO & Co-founder, Phi Commerce, payments, digital
Jose Thatil, CEO & Co-founder, Phi Commerce

PayPhi supports credit/debit cards, mobile wallets, UPI, Aadhaar Pay, Bharat QR, and Net Banking transactions. Its e-COD interface sends SMS and email links to customers to enable them to make payments at the time of delivery.

“Doorstep commerce is what we called it. It was an assisted e-payments model,” Jose Thattil, CEO & Co-Founder of Phi Commerce tells YourStory.

PayPhi not only urged customers to transact digitally, but it also allowed them the luxury of receiving postpaid orders without being physically present at the location at the time of delivery. Even delivery executives are spared the hassle of having to use an additional mobile app to process payments.

The e-COD growth story

Phi Commerce started small but grew to servicing about 5,000 pin codes and processing transactions worth Rs 12 crore by mid-2017. Its focus was primarily on Tier II and Tier III towns, where cash and connectivity issues were predominant.

Cut to 2018-end, and PayPhi reaches about 12,000 pin codes across the length and breadth of the country, and has over 5,000 merchants and several logistics partners on board.

Jose says, 

"We want to service 20,000 pin codes by the end of 2019. This year, we managed a 10 percent cash-to-digital conversion. That will go up to 15-20 percent next year.” He adds, “Tier II and Tier III growth in transactions is much higher. Penetration on both agent and customer side has been phenomenal.”

This year, Phi Commerce is out to tap the Tier I market as well. It has not only added merchants, partners and customers more aggressively but is also innovating on the product front and expanding beyond just e-COD. “A new product would be launched by April or May 2019,” Jose reveals.

Focus on card payments, offline merchants

The startup is even incentivising savvy urban customers to pay through cards. In June, Phi Commerce tied up with Mastercard to offer cashbacks and rewards to customers at the time of delivery. This partnership is operational in Mumbai, Pune, Delhi, and Bengaluru, and will be taken to other cities in 2019.

Jose explains,

Over the next 12 months, we will focus on Tier I and II towns and expect to double our conversion rates to 20 percent. The Mastercard partnership targets the mobile-savvy segment of the market that already has a card and will continue to use it.”

Phi Commerce is also building an offline merchant tool and taking small neighbourhood merchants online. There are nearly 2-3 crore offline merchants in India, and possibly the largest segment that needs to be reformed with payments technology.

“Our tool will help them do faster and quicker payment settlements and give them a much higher working capital efficiency,” Jose states.

Doorstep credit: a first-of-its-kind innovation

The startup’s most interesting exploration happens to be in the segment of credit. Phi Commerce plans to roll out credit options for customers at their doorstep in the next three months. Shoppers will have the option to opt for credit online (during the time of purchase) or offline (at the time of delivery). This is a first-of-its-kind innovation in India’s merchants payments ecosystem.

Jose says,

“Facilitating credit in Tier II and III markets is very different compared to big cities. We are working with credit providers to ensure that this segment of the population should enjoy credit to make any transaction. And, we have a transaction history of consumers. So, we are in a good position to assess their creditworthiness and credibility.”

The company is in the process of refining its upcoming credit solution, and will roll it out early next year. It refused to disclose the financial partners it is working with for the service.

Given the increasing popularity of card payments in India, with debit card transactions having grown 76 percent in October as per RBI data, is an mPOS device on the anvil too?

“Not right now, but we might look at card swipes next year,” Jose admits.

“Globally, the form factor of mPOS devices is changing. Machines are shrinking more and more and that is going to be a game changer. We might come up with something later,” he adds.

Phi Commerce, digital payments, FinTech Accelerator Programme
Phi Commerce was roped in by the Government of Maharashtra in its FinTech Accelerator Programme.

Funding and ecosystem support

Phi Commerce is on the lookout for funds to execute its innovations, and scale up its physical footprint. Back in 2016, the startup had received close to $1 million funding from a clutch of angel investors. Now, it is looking to raise a Series A of about $5 million in the next two or three months.

Interestingly, Jose reveals, the startup is seeing some strategic-level interest too. He says,

“Global peers entering India want to target a segment that is growing and has a huge potential base. The assisted selling model is going to be very important, and some strategic players have shown interest.”

Earlier in December, Phi Commerce was one of the 10 fintech startups roped in by the Government of Maharashtra in its FinTech Accelerator Programme - a three-month programme focusing on startup innovation that enables financial empowerment and advancement in the BFSI sector. The programme is a public-private partnership between the Maharashtra government, NPCI, PayU and a consortium of banks and industry bodies.

Jose says, “It is a privilege to be recognised by the government. It presents a great opportunity for us to enable digital payments for the masses. The government itself is going to provide data and projects to startups like us, and we also get to work with banks and other partner institutions.”

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