Chanakya Hridaya

Hiring Alert (Part 2/n) 🚨 Are you passionate about building communities? We're looking for a Venture Analyst to join our team in South Delhi. 🏢 About Favcy: As India’s largest venture builder, we transform ideas into thriving startups. With over 35 startups co-built in the last ~4 years and a robust network of 10,000+ founders and investors, we're making a significant impact on the startup ecosystem. Responsibilities: 1. Prospecting and Onboarding Founders: Identify and onboard passionate and driven founders to the BuilderX program. 2. Guiding Founders: Serve as a guide and mentor to founders, setting expectations and defining milestones. 3. Navigating the Ecosystem: Assist founders in navigating our ecosystem, connecting them with the right resources, tools, and experts. 4. Monitoring Progress: Track and monitor each founder's progress through the BuilderX program. 5. Fostering Growth: Inspire and motivate founders to unlock their full potential. If you have at least a year of experience, apply now and be part of a team redefining venture building in India. How do you apply? At futureatfavcy(dot)com #hiring #startupjobs #venturebuilder #communitymanagement #favcy

98

12 Comments

** Swiggy IPO Update ** • Swiggy has received SEBI approval for its confidential IPO filing, with a public launch expected in November. • The IPO is projected to raise over ₹11,000 crore. • On April 30, Swiggy submitted its offer document through the confidential pre-filing process. • An updated Draft Red Herring Prospectus (DRHP) will be made publicly available for a 21-day review period ahead of the IPO. • The timeline is in line with Swiggy’s target to go public later this year. • Major investors include Prosus (holding 32%), SoftBank (8%), and Accel (6%). Stay tuned for further updates on Swiggy’s IPO journey. Contact ISEC Capital for swiggy offline shares. #swiggyipo #preiposhares #unlistedshares #stockmarket

1

Some back of the envelope analysis on the autorickshaw Aggregator (all of them) business per day in Bengaluru: - 5 million revenue in platform fees from Drivers per day - 10 million excess fares (over and above the Govt specified fares) paid by customers per day - 1 million of the excess fares distributed to drivers in incentives and other gaming baits per day - 14 million (5 million driver fees + 9 million commission) revenue per day to Aggregators. Note the above numbers are a conservative estimate and just for autorickshaws. Basically the Aggregators generate INR 30 crores in revenues between them each month. The current valuation of these companies validates this revenue number. Who benefits? Corporates 🙂 On whose labour? Drivers 😔 At whose expense? Commuters 😡 Zero regulation from Government ensures this unfairness. The Government neither regulates the Drivers nor the Aggregators. It is so lethargic that it refuses to implement its own fare notification upheld by the High Court!! Auto Rickshaw Drivers' Union - I am sure you agree with the above numbers. Please add more insights on Aggregator business and how it has impacted auto drivers. Society deserves to know as the Government is unable to regulate the Business. Ministry of Housing and Urban Affairs Ministry of Road Transport & Highways - India PS: For skeptics who need more evidence, Autorickshaw Driver income has flatlined, while Corporate valuation of Aggregators has grown exponentially over the last 8 years. And the commuters travel budget has increased because of lack of regulations.

5

2 Comments

The Hidden Cost of Inventory: A ₹4 Lakh Crore Challenge for Indian Businesses! 😦 In India's rapidly growing logistics sector, we often focus on last-mile delivery and transportation infrastructure. However, a critical issue is silently eroding profits across industries: excess inventory. 📦 The Problem: According to a report by the Indian Institute of Management, Calcutta, Indian companies lose approximately 3.5% of their revenue annually due to excess inventory. With India's logistics market valued at ₹15 lakh crore, this translates to a staggering ₹52,500 crore lost each year. 📉 Moreover, a study by the Confederation of Indian Industry (CII) reveals that inventory holding costs in India are 14% of GDP, compared to just 8% in developed economies. This inefficiency not only ties up capital but also hampers India's global competitiveness. The Solution: Implementing advanced Inventory Optimisation Systems (IOS) can significantly reduce these losses. Here's how Indian companies are tackling this challenge: ▶ Data-Driven Forecasting: Companies like Flipkart are using AI to analyze historical data, festive seasons, and even cricket match schedules to predict demand accurately. ▶ Real-Time Visibility: Tata Steel has implemented IoT sensors across its supply chain, enabling real-time tracking of raw materials and finished goods. ▶ Dynamic Safety Stock Calculations: Asian Paints uses advanced analytics to adjust safety stock levels based on seasonal demand fluctuations and raw material availability. ▶ Collaborative Planning: The Future Group has implemented a collaborative platform connecting suppliers, manufacturers, and retailers, reducing the bullwhip effect in its FMCG supply chain. ▶ Scenario Planning: Mahindra & Mahindra employs digital twin technology to optimize inventory levels across its diverse product range and geographically dispersed dealer network. The future of inventory management in India isn't just about reducing stock—it's about having the right stock at the right time, especially given our country's diverse geography and rapidly changing consumer preferences. 🇮🇳 As we push towards a $5 trillion economy, optimising inventory will be crucial for Indian businesses to compete globally. 🌍 Are you leveraging technology to its full potential in your supply chain? #inventory #cost #logistics

106

31 Comments

I am excited about the key highlights from Budget 2024-25 that promise to uplift the warehousing and logistics sector in India. E-Commerce Export Hubs: The government’s plan to set up E-Commerce Export Hubs in Public-Private Partnership (PPP) mode is a significant step forward. This initiative will enable MSMEs and traditional artisans to sell their products in international markets, opening up new avenues for growth and expanding their reach globally. For 3PL companies like Emiza, this translates into increased demand for warehousing and logistics services, driving growth in our sector. Industrial Parks Development: The announcement to develop industrial parks in or near 100 cities is a game-changer. These investment-ready “plug and play” industrial parks will facilitate the establishment of new businesses and industries, leading to increased demand for warehousing and logistics services. By providing ready infrastructure, these parks will significantly reduce the time and cost associated with setting up operations, benefiting businesses and boosting economic activity. These initiatives underscore the government’s commitment to enhancing the logistics infrastructure and creating a conducive environment for business growth. Emiza is poised to leverage these opportunities, further strengthening our position in the market and contributing to the growth of India’s logistics sector. #Budget2024 #Logistics #Warehousing #3PL #Ecommerce #MSME #IndiaGrowth #BusinessGrowth #Ecommerce #Infrastructure #Technology #Sustainability #PublicPrivatePartnerships #IndiaBusiness #letsbuildtogether #supplychaintitans

43

Remember the days when quick and faster deliveries were just for the people who are living in metro cities? Well, those days are long gone now! We've all seen the logistics boom in major cities – efficient networks, same-day deliveries, etc. But this process is spreading faster everyday in Tier 2 and 3 cities across India. Let's talk numbers: a recent Redseer report predicts a staggering 88% of India's online shoppers by 2030 will come from these very cities. That's a massive shift, and it's not just about increased smartphone usage. People in Tier 2 and 3 cities are yearning for the convenience and variety of online shopping offers. People in these cities are finally able to order that one gadget that they saw online, or get that special gift for someone – delivered straight to their doorstep! The future of Indian logistics is undeniably regional. It's a future brimming with growth and opportunity. Get ready, because this is just getting started in Tier 2 and 3 cities, and it's going to be a fantastic journey! https://lnkd.in/dr7iWajW - Report #LogisticsGoesLocal #SupplyChain #Innovation #Growth

42

2 Comments

"Who is Veelo's customer?" Critical Wife = Happy Life : Part 4 Wife: Hey! You say that you are catering to the delivery partners of Zomato India Zepto Rapido Blinkit Uber. Does that mean that your customers are these aggregators? Should not say that you are serving these aggregators instead of delivery partners as ultimately you are catering these companies? Me: Customer is defined as a person who Buys goods or services. The person buying services from Veelo are delivery partners. The aggregators are the customers of these delivery partners. An argument can be made that aggregators are our indirect customers. However, that would also be incorrect as we do not restrict the Delivery Partner to work with any particular aggregator. The revenue we receive from Delivery Partners cannot be directly attributed to any single aggregator most of the times. Wife: Oh man! Are you saying that Veelo's revenue is dependent on the delivery partners making payment on time? But these guys have no proper banking or credit score? You are in for a tough journey collecting these revenues. Question to the Reader: Who would be a better customer for Veelo & why? The aggregators like Zomato India or the Delivery Partners. Any other answers are also welcome.

9

As the Indian government unveils its bold plan to establish 50 e-commerce export hubs across the nation, it signals a transformative shift for the country’s logistics landscape. This initiative has the potential to not only boost India’s standing in global trade but also create new pathways for businesses of all sizes to tap into international markets with greater ease and efficiency. However, what intrigues me the most is the broader impact this could have on the logistics sector and the infrastructure that will be needed to sustain this vision. These hubs are set to streamline the export process, empowering businesses of all sizes, especially small and medium-sized enterprises (SMEs), to access international markets more efficiently. With over two decades of experience in logistics, I see immense potential in this initiative, but I also wonder how prepared we are from an infrastructure perspective. Developing a strong logistical backbone that connects these hubs to transport arteries is crucial. This will ensure that goods can be transported quickly and efficiently, reducing lead times and cutting costs. The government must focus on improving connectivity if India is to realize its vision of becoming a global export leader. Another exciting aspect of this initiative is the potential for job creation. The establishment of these hubs will create demand for a skilled workforce capable of managing the complexities of e-commerce logistics. Roles in supply chain management, warehouse operations, and transportation planning will be critical. With the right talent in place, the logistics industry can rise to meet the challenges of this new era. But it’s not just about infrastructure and jobs. Innovation will also play a key role in making these hubs a success. We need to invest in technology to automate and optimize processes, ensuring that we can handle the increased volumes of goods passing through the hubs. This is where collaboration between the public and private sectors becomes vital. By working together, we can drive innovation and create a more efficient logistics ecosystem. While the government’s plan is commendable, it’s clear that the development of world-class infrastructure must be a top priority. I’d love to hear your thoughts on this. What do you think are the most important factors to consider for the success of these e-commerce export hubs? How do you think the logistics industry should prepare for this transformation? Let’s discuss! To read more details about this initiative, check out the article here: https://lnkd.in/d-DVBpS7 #Ecommerce #Logistics #SupplyChain #InfrastructureDevelopment #JobCreation #ExportHubs #Innovation #IndiaExports #SMEs #PublicPrivatePartnership #TechnologyInLogistics #GlobalTrade #FutureOfLogistics #supplychaintitans

29

Seeking Inputs: Is the cost of an acquisition, just the price paid to the former owners? 😓😓 Consider this! .. Mahindra Logistics acquired RIVIGO’s B2B express logistics business for Rs 225cr in October 2022. That was about 6 quarters ago. And at that time, the company had said the following: 1> Business has positive unit margins 2> It will help Mahindra’s express delivery business to nearly triple to Rs 500+ crores within a year .. But then, integrating the business into Mahindra Group ran into challenges, resulting into continued losses. -> Six quarters down, the business remains a negative gross margin one -> The business has not even reached Rs 400cr size -> And has minted losses in every quarter It’s only because the owner is Anand Mahindra, that tough questions aren’t raised. .. Anyhow, I digressed. My point is, the true cost of acquisition is clearly much higher, and is only rising every quarter. .. I know, this is not how acquisition maths is viewed traditionally. But, my question is, should be looking at them traditionally at all? Because just to make the Rs 225cr acquisition work, Mahindra has been spending more and more every quarter. What do you think? .. For multiple such insights daily, follow: 1> My newsletter (https://lnkd.in/gA5gSCjJ) 2> Telegram channel (https://t.me/biznbyjay) Best, Jayant Tags: #Businesses #CaseStudy #Stocks #Mahindra #Rivigo #Logistics #Startups #IndianStartups

74

19 Comments

So Swiggy has listed. Now both Food Delivery and Quick Commerce giants- Zomato and Swiggy will be rated by public shareholders revealing true value of their businesses. Both are tech driven logistics companies first and have massive competitive and network advantage. They have shown that completely asset light business model CAN WORK and deliver massive shareholder returns. Is there a lesson for B2B Logistics companies? Very much. Their tech investments remain tiny and more of an afterthought. They can surely benefit from consumer orientation of Swiggy and Zomato and likes. The time to invest in Big Tech is NOW for Logistics players. Companies like WebXpress Supply Chain Technology are just a WhatsApp message away !! https://lnkd.in/dbc_wRQy

23

5 Comments

Everything is acceptable, but revenue inflation via invoice round-tripping, misleading investors during fundraising, onboarding fake vendors, ignoring corporate governance, and then respawning the business idea inside another company and bailing out investors is not. ReshaMandi https://shorturl.at/SlrVR

24

2 Comments

Thoughts on Zomato's recent acquisition of Paytm's Movie and Event Biz. 1. Right now Zomato is getting multiple of ~200 on it's EBIDTA, they paid multiple of ~80 (profit of 27 crore). For next couple of years they may continue to trade at ~100 multiple so from that POV it should boost their M cap or help maintain very stretched valuations if not boost them further. 2. It's already a ~9% EBDITA margin business for Paytm (300 cr revenue). Book my show made a PAT of ~85 crore on revenue of ~1000 crore last year (~8.5% PAT). This margin is better than grocery ever will be so margin accretive. 3. Zomato also wants going out biz to be worth 10,000 crore turnover (this is already at ~3500 crore GOV business, yet to make profit in zomato's case). This acquisition is good addition to this biz and fits in well with their ambition of making this the 3rd large business from house of Zomato. 4. Going out / Movie Ticketing is a duopoly market with Bookymyshow as only other large player. Zomato with it's execution rigour may be gunning for No.1 spot. If they make it happen, they will be No.1 player in 3 business. A very difficult feat. Paytm has 30-40% market share in ticketing and movie space. 5. Zomato also sitting on 12000 crores of cash. This is not generating more than FD returns I presume. So this is a good avenue for cash deployment as such opportunities are hard to come by. 6. They may look at entering food biz for movies. This is Large and immensely profitable segment. PVR made 2000 crore of revenue from selling F&B. Although I doubt PVR will be okay with that given 30-40% of their revenue and likely a higher share of profit comes from food. But I feel that some sort of integration is likely on cards. Overall a good buy! Likely to be good for consumers as well. ✅ Ref - News Article, Zomato Quarterly Updates

342

14 Comments

The Growth of Last-Mile Logistics in India and the Role of Electric Mobility India's last-mile logistics sector is experiencing rapid growth, fueled by the booming e-commerce market. As online shopping expands from major cities to tier II and III regions, the demand for efficient logistics, particularly last-mile delivery, has surged. This sector's expansion is not only transforming supply chains but also creating significant employment opportunities, especially in underserved areas. However, the sector faces challenges, including high operational costs, complex delivery geographies, and high attrition rates. To address these issues while enhancing sustainability, companies are increasingly adopting electric mobility solutions. Electric vehicles (EVs) in last-mile logistics offer dual benefits: reducing carbon footprints and lowering long-term operating costs. This shift aligns with global efforts toward greener logistics practices and helps companies meet the growing demand for eco-friendly delivery options. The Indian government's support through various policies and initiatives aimed at promoting sustainable transportation further accelerates this transition. As the logistics sector continues to play a crucial role in India's ambition to become a $5-trillion economy by 2030, integrating electric mobility into last-mile delivery is essential for achieving these economic and environmental goals. At TROCKO we are actively addressing these challenges by integrating electric vehicles into our fleet. This step isn’t just about keeping up with industry trends; it’s about making a meaningful impact. By adopting EVs, we’re reducing our environmental footprint while also ensuring that our deliveries remain cost-effective and reliable. It’s a win-win that allows us to stay competitive and contribute to a greener, more sustainable logistics ecosystem. Looking ahead, we plan to grow our EV fleet to 5,000 vehicles over the next two years. This ambitious expansion is part of our commitment to lead the way in sustainable logistics while continuing to deliver exceptional service to our customers. We’re proud to be part of the movement towards a cleaner future, one delivery at a time.

38

1 Comment

A good read about How and why mandate not finding a mention in the Finance Minister’s agenda which does not just mute IRCTC’s profits but also derails its dream of becoming more financially independent, Must read

1

What's the difference between a DEI hire and OBC (Old Boys Club) hire? - the DEI hire had to prove themselves more and worked 100 times harder only to be judged 1000 times more harshly than OBC hire. - the DEI hire still gets paid less than the OBC hire only to be expected to work harder than the OBC hire. - the DEI hire is given zero grace when things don't go to plan, whilst the OBC hire simply points the finger of blame away from themselves and is absolved of everything. - the DEI hire gets told they only got the job because of DEI whilst the OBC hire is welcomed as part of the club. - the DEI hire usually gets the job because it's a glass cliff job, whilst OBC hire then comes in once the glass cliff has been cleared. If you don't like the above re the Old boys club hires, then let's also stop denigrating people by referring to them as DEI hires. If you hire someone and it's not a DEI, then there's a high probablility it's an OBC hire - should they be told they only got the job because of that club they implicitly belong to? Should we shrug and say bet he was a OBC hire when they don't live up to our ridiculously high expectations? OK, rant over. Have a lovely Wednesday.

4

It's refreshing to see a well-balanced article on the present state of India from Western media. The BBC's take on India's economy and future prospects is worth a read. Check it out here: #India #Economy #Present #Future https://lnkd.in/d9zY_ASt

10

2 Comments

The curious case of Nobroker, the company that began with an intention to remove brokers, then became one. Nobroker's FY 23 financials are out, their operating revenue is up to ₹609 crores, while their losses are ₹506.2 crores (total expenditure is ₹1189 crores). They raised a ₹1752 crore funding round in 2021, the feverish peak of venture idiocy, led by the worst tourist into VC that's ever taken a stroll, Tiger Global. (honestly wish I could have shorted their investments, one made every single day with their DD being conducted by 22 year olds at Bain) Nobroker is piloting a new strategy, becoming a broker. They are offering a success fee based model for finding a tenant for people's flats, effectively becoming a broker. I do enjoy their services (handyman, plumber, AC cleaning) with fairly good folks who come on time, however these numbers are simply shocking. Startups have to remember that they are real businesses, that need to make money. With these kind of losses at scale, it feels like they haven't found product-value fit yet. #startups #founders #venturecapital

126

29 Comments