The Paper Boat Memories

The Paper boat that was introduced to us in August 2013 by a very clever advertisement that related juices with our childhood memories, is now an empire of $100 million !

The inspiration that led to the foundation of this company was the CEO of Hector Beverages’ ( The producing and marketing company of paper boat ) Niraj Kakkar’s childhood memory of stealing a drink called kanji kept in pots by his neighbour. Hector Beverages was founded in 2009 by Neeraj Kakkar, Neeraj Biyani, Suhas Mishra and James Nuttall.
The goal was simple. If Chinese food does not come to eateries in other countries straightaway from China then why not replicate the same idea with juices ! The brand launched with Aam Panna and Jal Jeera drinks and later added a wide range of ethnic drinks to its portfolio including Aam Ras, Chilled Rasam, Kokum, Jamun Kala Khatta, Chilli Gauva and Neer More.
However, the company had to go through a lot of struggle when two of its founders stepped out leaving Kakkar and Biyani at the helm. Gradually progressing in 2016, it launched 500 ml tetra packs which were later increased to 1 litre packs in 2017. Later on the company also started manufacturing traditional Indian snack, Peanut Chikki. Paper Boat’s television advertising campaign consist of simple and evocating ads, debut ad penned down by the lyricist Gulzar himself !
The company is now funded by N.R. Narayana Murthy -led Catamaran Ventures, Footprint Ventures and Sequoia Capital among various other investors. In the age where our working generation travels and stays away from their homeland, companies like Paper Boat not only add to the nostalgic element but also bring the world closer by exchange of culture !

Paper Boat – Drinks and Memories

-Gunai Tarde

 

 

Ola: Business Model

Ola, the ‘on demand’ Taxi Hailing Service can be called that blue eyed boy of the Indian startup Eco-system that Zomato was once. ‘How does Ola make Money? ’This question has fascinated a lot of us.So let’s see it…

Glimpse of early days-

Ola cabs used to operate as Fleet cab service provider during its early days. It used to work as follows…

1) You call upon their call center

2) tell them date, time of trip

3) get a car at doorstep and pay in cash when trip ends.

Later OLA pivoted to App based aggregation model seeing the peak rise of Android and Apple devices.

Ola founders: founded in 2010 by Bhavish Aggarwal and Ankit Bhati.

Ola funding: appx. 1.5 Billion USD(as of Dec 2015)

Ola valuation: Appx 5 billion USD(as of Dec 2015)

Business model of OLA-

The most significant contributor to Ola cabs revenue model is ‘X%’ commission from the total fare of the trip.e.g. Ranges from 15% to 20% depending on city and type of vehicle.

The trip fare is a combination of-

Travel time
Distance cost
Waiting time
Service tax on total trip fare

Eg. Of revenue model-

#Assumptions-

1) Travel Cost per KM- 15 INR

(first 5 KM @ 100 INR)

2) Travel Cost per Min-3 INR

(after first 5 mins)

3) service tax-14.5%

Now assuming average cab ride is of 10 KM and travel time is 15 Mins. Thus,

Total Fare=
100(of first 5 KM) +

10*3(travel cost of 10 mins) +

5*15(of remaining 5KM)+

=205 + 14.5% of 205(ST)

=234.72 INR

Ola’s commission-205*20% + ST
=41 + 29.72(payable to Govt.)

Driver’s payout= 234.72 – 41 – 29.72= 164 INR less 10%TDS( as per Income Tax Act)=157.6 INR

Now lets see it on a larger scale-

Expenditures: An average driver in Bangalore does 9 rides (For Mumbai this is logically lower because of a cheaper availability of public transport, and Delhi a bit higher due to lack of personal commute). Ola pays on average Rs. 3,000 for these rides. There is a 20% commission which is Rs. 600. Hence Gross expenditure is Rs. 2,400 per day per cab .

Earning: An average ride of Ola is 6–7 Km for which customer pays Rs. 150. They also charge a vendor-side commission as mentioned, Rs. 600. Hence a gross earning of 150*9 + 640 = Rs. 1950 per day per cab.

Burn Rate: In Bangalore there are over 45,000 cabs, 70% of which are actively on road. This means that they serve 2.83 Lakh(70% of 45000 * 9) rides per day. The burn is Rs. 2400 – Rs. 1950 = Rs. 450 per cab. Cumulatively Ola burns (..wait for it) Rs. 94,50,000 or 94.5 L per day only in Bangalore.

This may not be the exact numbers but according to Ola Wiki the annual burn is Rs. 754.87 crore or approx. Rs. 2 Cr per day

which is a public number hence highly diminished.

Other Revenue Lines of Ola

Percentage Commission from Trips being served through its platform (Trip Based Commissions)
Ola Money Wallet
Corporate Tie Ups / Event Tie Ups
Vehicle On-Boarding Fee
In-Cab Advertisements
Fleet Leasing (To Drivers)
Car Type
Peak Time Charges
Currently both Uber and Ola cabs are following the strategy of expanding their operations and gaining customer base in various cities in India while providing a delightful customer experience to gain trust.

So, here was just a basic analysis of business model of Ola cabs, one of the coolest successful startups in India so far. Stay tuned…

Success Story of Instagram

Edisson said that a genius is 1%inspiraion and 99% persiraion. so behind every successful person, company or product, inspiration has an important role to play.

“What are some good places to get professional business cards printed for someone in the Bay Area? I’ve got a design, I just need printing.” When Kevin Systrom (one of Instagram’s founders) put this innocuous question to the Q&A forum quora on Jan 29, 2010, little did he know how valuable those business cards would be one day.

Instagram is a different kind of company. When it was bought by Facebook for a billion dollars last year, it had only 13 employees — and no furniture in their office space. Its founders, Systrom and Mike Krieger, are multimillionaires who haven’t yet blown 30 candles on a birthday cake.

To say that it’s been a meteoric rise would be an understatement. Naturally, the story of this photo sharing community is fascinating. And as Kevin dug around to learn about it, he came across the Quora accounts of Systrom and Krieger, which have better information than any of the hundreds of articles he had read and videos he had watched. This is Instagram’s story, straight from its foundersSystrom had dabbled with a bit of programming through school and at Stanford, but was never quite proficient at it. He has no formal computer science training or degree. And when he took a marketing job at Google, he forgot all about that. “Only at my next job at Nextstop would I say I went from being a hobbyist to being able to write code that would go into production,” he recalls. “While I was there working in marketing, I started doing more and more engineering at night on simple ideas that helped me learn how to program.”

One of those ideas was Burbn. It was an HTML5 app that mimicked Foursquare’s concept of “checking in”. The only major difference was that it ran through a browser and used text messages.

At a party one day, Systrom met people from Baseline Ventures and Andreessen Horowitz. They liked the prototype he showed them, so Systrom quit his job to work full-time on Burbn and raised $500,000 from the venture. They decided that if they were going to build a company, they wanted to focus on being really good at one thing, They saw mobile photos as an awesome opportunity to try out some new ideas. They went back and forth a little more between a dedicated photo app and the full-fledged Burbn, but the latter felt too cluttered.

The name took a long week of searching. It needed to say ‘right here, right now’ and had to sound “camera-y”. Plus, it had to be unique. And finally, it had to be something a person could spell if you told them the

name. They finally settled on Instagram — “an instant telegram of sorts.”

Over the next eight weeks, Instagram was beta-tested with about 100 users. Krieger and Systrom did all the coding, with the latter working on the design and the icon.

It was finally released on the App Store on October 6, 2010, and immediately caught the world’s fancy. Two weeks later, it was featured in Japan as New & Noteworthy. And after another week, it was App Of The Week in the App Store. There’s been no looking back since then. Pretty soon, everyone from Justin Bieber to Kim Kardashian was using it. Nature photographers were putting up stunning photosThere was something different about Instagram. Square images would end up being Instagram’s most identifiable feature, right after filters.

The filters were a big hit on the iPhone, whose camera was “good enough but not great” at the time. Filters took away those imperfections and made photos look better. Whether it’s apparent or not, there is a lot going on behind the scenes.

It was a whirlwind ride from November 2010 to April 2012, when Facebook purchased Instagram for a 1 billion dollars, netting Systorm $400 million and Krieger $ 100 million. Today, Instagram has 150 million active monthly users, with an average of 40 million photos being shared daily. Over the years, it’s amassed an incredible 16 billion photos! It even has video now

Tax Disclosure

Recently, the Indian Government had offered a one-time chance to holders of income and assets that had illegally escaped taxes, to come clean by paying a tax and penalty of 45 per cent. In the biggest ever black money disclosure, at least Rs 65,250 crore of undisclosed assets were declared in the one-time compliance window.
As Indians, this is a very sad revelation for all of us but as budding entrepreneurs and future leaders, what do we learn from this? The reason for black money is not just greed, more often than we’d like to admit it is usually the result of improper management of finances and incorrect decisions. Not just entrepreneurs but all of us have to manage finances whether it is on a micro level or a macro level, that varies from person to person. So as responsible individuals one of our main focus should be knowing and handling finances efficiently.
The second important reason mentioned above is ‘incorrect decisions’. Even the popular and most successful Mark Zuckerberg had said “Early on in our history when things weren’t really going well–we had hit a tough patch and a lot of people wanted to buy Facebook–I went and I met with Steve Jobs, and he said that to reconnect with what I believed was the mission of the company, I should go visit this temple in India that he had gone to early in the evolution of Apple, when he was thinking about what he wanted his vision of the future to be”. Most entrepreneurs in a rough patch don’t have Steve Jobs in their contact list. But they can certainly schedule lunch or coffee with their own mentors. And this small piece of advice by Zuckerberg highlights the importance of a mentor especially when you are trying to build an enterprise.
“Learn from the mistakes of others, you can’t live long enough to make them all yourself” – Chanakya
As Chanakya says, let us all learn from this and strive to be better at finances. And as we all know, if and when you need a mentor, turn to the Entrepreneurship Cell, VJTI. We never disappoint! 🙂

BSE Visit with E-Cell

What comes to your mind when you hear the word Stock Exchange? Do you reminisce about movies and books? People rolling in money, impeccably dressed in suits, watching a screen with alphabets and prices scrolling by? Green and Red? Profit and Loss? Confusion?Wall Street?

So, the Entreupreneurship Cell of VJTI aimed to clear the confusion and misconceptions by organizing a visit to the Bombay Stock Exchange, in collaboration with the BSE Institute, to help the students understand the intricacies and to help them realize that they too have a place in this institution of money.

The Bombay Stock Exchange is one of the world’s largest stock exchanges in the world and has a market cap of over $2 trillion. That’s over a 1.4 lakh CRORE INR. It has over 5,000 companies listed on it, and maintains an index of the market, the Sensex, which is regarded as the standard for evaluating the state of Indian markets.

When we reached Dalal Street, we were all drenched, it was pouring. Mumbai rains, right? As we trudged in, still in awe of the structure, and the grandeur that starts from the entry, we were whisked by elevators to our destination, the BSE Institute. There, (after we had enjoyed the beautiful view of the sea from the huge windows), we were joined by Prof. Rakesh Nair, a leading academic and trader in the BSE, and then the highlight of our visit began.

We were told about the intricacies of capital markets (yes, surprisingly, “Stock Exchanges” don’t just trade stocks) and the economics behind them. We were guided through the world of money and companies, and how it all fits together, how stock exchanges function, what drives them, how investments work and much much more.

Then came the part where we came to know how engineers fit in. The trades in BSE happen at 6 micro seconds. Attempts to reduce it further, algorithmic trading, blockchains, digital currencies and much much more. Sound familiar? This is right up our alley, right? That’s what the outcome was, we realized how engineers are vital to the functioning of a stock exchange. Plus, question yourself, who built the systems that the exchange is built upon? Who is gonna take it further?

So, as we left the BSE, to the warm sunshine (the rains had luckily stopped), we all had food for thought, and we realized that the scope of engineering is not limited to just our respective fields, but it reaches far wider and deeper than we could have guessed. It was both an enlightening as well as an humbling experience, and an insight into a world we rarely see in its true self.

PS: of course we took a picture with the bull 😛

~Sanjeet Saluja

 

The Quick Heal Way!

 

Who would have thought two brothers from Pune’s Wakdewadi chawl would one day build India’s most successful IT security company Quick Heal, that competes and often beats the best in technology and business.Today,Quickheal has hoisted flag of India in the computer security world.

JOURNEY FOR FOUNDATION OF COMPANY
Mr.Kailash katkar and Mr.Sanjay Katkar are founder of Quickheal. Quickheal was started from small computer repairing shop. Kailash had to dropout of his studies soon after he completed his SSC (10th Grade) around the mid of 80’s, primarily due to family circumstances.To help his family financially; Kailash then took up a job at a local radio and calculator repair shop. Additionally, with focus completely on technical matters, he also went on to learn the repairing of the then popular office gadgets.
Subsequenly,Kailash’s brother Sanjay Katkar was studing.Due to poor condition of home,Kailash was unable to do further study.Hence,knowing the importance of education,Kailash motivated his brother to do higher education.Sanjay wanted to become an electronics engineer, but his approach to become an engineer was failed because of some reasons.According to the opinion given by Kailash,Sanjay decided to do B.Sc in computer science.He had not much interest in computer sciences,but later as he became familiar with coding languages,he got interest in coding.Sanjay were practicing to do coding,but many times college computers were off because of virus attack.So,he got trouble in doing his coding practice.Then he started doing his practice in his brothers shop.Because of this problem Sanjay had curiosity about protection of computers from virus.And hence,the journey began.
Sanjay started for developing programmes against viruses in floppy.His interest in developing antivirus were becoming increase day by day.The first tool Sanjay created was for the Michelangelo virus. In his second year, he created three to four antivirus. Since internet penetration was negligible in India then, he encountered a new virus once every week or two and took two days to work on a tool.
After his graduation, Sanjay joined Wadia College in Pune to pursue his masters and would spend half the day at Kailash’s workshop writing virus solutions. By then, his ‘encounters’ with new viruses had grown to two to three per week.While the market was dominated by MNCs’ anti-virus solutions (like Norton), they couldn’t clean many viruses specific to people in India. Sanjay’s tools/solutions, on the other hand, could clean the viruses quickly as it didn’t scan for a whole lot of viruses like other anti-viruses.Hence the name Quick Heal.

EXPANTION OF COMPANY
Quick Heal expanded its workforce and started working on Windows 95 and Windows NT viruses as well.By the year 2000, Quick Heal was a known name in Pune and Kailash appointed dealers in Mumbai and Nashik, but they couldn’t get much business.It was only when an employee trained in Pune ran the business in Nashik, exactly as in Pune, did the business thrive. Learning from the experience, Quick Heal followed this model to expand to other cities.However, retaining developers in the company was a struggle, as were other issues. To write at a deeper level for Microsoft (like driver level), they needed help from Microsoft but couldn’t get it, while the MNCs producing anti-viruses could access that.

RISK AND CHALLENGES
1.The business environment Quick Heal adapted very successfully into in India is different from those in the newer countries it is expanding to. In each country, it will need to retool its approach and learn a new way of doing business. On mobile devices, a market that is set to dwarf PCs, the way products are bought or used is very different.
2.Today, the company has expanded to reach to point where they have launched their version 16.00. This series helps its users with safe banking, secure Internet Surfing, and a better PC experience and has been designed to easily combat the dangers of online financial transactions such as paying bills, banking and shopping.

ACHIEVEMENTS
1.According to current stats, the 1200+ employees company with more than 17 million customers across 112+ countries has transformed into a globally-known brand and the venture is also looking at the possibility of an IPO at a valuation somewhere around ₹2500 crore and ₹3000 crores.
2. The company also holds an Enterprise Security Brand called – Seqrite.

REASON BEHIND SUCCESS
A)AT BEGINING:-
1.Providing security to computers for which are needed for Indian market.
2.Provide products which are affordable for Indian market.
B)VALUE FOR MONEY:-
1.Quick Heal continuously innovate and create excellent marketing strategies with prioritized and efficient direct ‘touch’ for communications with their resellers and distributors.
2.Prioritized and regular dissemination of information regarding products, prices and schemes.
3.Quick Heal continuously update their customers and partners with technology and renewal systems that make it easier for customers and resellers to renew licenses.
4.Float several lucrative renewal schemes to generate renewal revenue.
5.Quick Heal believes in encouraging and enabling partners to identify opportunities and deploy solutions.
Because of this reason,Today Quick heal has touched peack of success.

~Yash Patil

 

Musk a Must!

Born on 28th June 1971 ( yes! he turns 47 today ) in Pretoria, ( South Africa ) Elon Reeve Musk has the golden feathers of being the founder, CEO and lead designer of SpaceX, co-founder, CEO and product architect of Tesla, Inc.; and co-founder and CEO of Neuralink, to his hat.

However, struggle spares none! When Elon was 10, his parents got divorced, “I had a terrible upbringing. I had a lot of adversity growing up. One thing I worry about with my kids is they don’t face enough adversity,” he would later say in an interview. Turmoils can either be a motivation or a setback and it has proved to be the former in case of this talented person! He became acquainted with programming and created Blastar – a video game at the age of 10.

In 2001, Musk conceptualized “Mars Oasis”, a project to land a miniature experimental greenhouse containing seeds with dehydrated gel on Mars to grow plants on Martian soil. Musk realized that he could start a company which could build the affordable rockets he needed. Thus, in May 2002, he founded SpaceX, an aerospace manufacturer and space transport services company (estimated net worth $24 billion). A major goal of SpaceX has been to develop a rapidly usable launch system and to improve the cost and reliability of access to space.However, SpaceX cannot be termed as Elon’s first step in the entrepreneurial world. Three years before, in 1999, he founded an online bank called ‘X.com’ that was later renamed as Paypal. X.com was one of the world’s first online bank in partnership with Barclay’s and has proved to be a revolution affecting various sectors of life, economics drastically! 

While studying Musk’s achievements, it can be noted that the profits and success of one idea have lead to the inspiration and funding of another. On similar grounds, after SpaceX, in 2003, he blessed the transportation sector with Tesla. Tesla not only proved to be a proper utilization of electricity but also a savior of fuel!

Continuing his innovative journey, he first publicly introduced his idea of Hyperloop in 2012. For those who are unknown, a Hyperloop is a proposed mode of passenger and/or freight transportation, first used to describe an open-source vactrain design released by a joint team from Tesla and SpaceX. This advanced technology has the capability of changing the future of transportation to a large extent. For instance, the Mumbai Pune Virgin Hyperloop can reduce the travel time of 4 hours to a matter of 25 minutes! And in this fast world of technology, where time is money, you can surely imagine the kind of impact this will have on every sector!

Thus, on his 47th birthday today, we wish him All the best for his Entrepreneurial journey since the best is yet to come!

– Gunai Tarde