History of TATA Division
150 years ago a small cotton trader dreamed of changing India Completely unaware that one day his dream would give birth to such a business empire. Which will not only change India but will also win the hearts of crores of Indians. This is the story of Tata Group, get ready to be inspired. Er 1839 Jamshedji Tata is born Jamshed ji completes his education in 1858 And started doing cotton trading business with his father.
In the next 10 years, despite many difficulties, his business becomes very big. But Jamshed ji was not satisfied by trading only cotton. He wanted to manufacture clothes from dug cotton. Therefore in 1877 he set up the Empress Mill at Nakpur and Started manufacturing but there was a problem, the workers there were not very serious about their work.
Every day 20 percent workers were absent, took weeks off and were unable to work for long. Jamshed ji came up with an innovative solution for this, he created a provision for the workers, he launched the scheme of provident fund for the workers, which means now the workers were going to get pension after retirement, secondly he got the workers medical insurance done, and finally organized events like family days and sports days, the workers who performed well in these events were also rewarded in front of everyone, due to all these initiatives the workers started feeling very valued, due to which Both their attendance and performance improved significantly. The workers started feeling valued due to the initiative, which improved their attendance and performance.
Both of them improved a lot and many of these schemes were so futuristic that by then they were not adopted all over the world. In his eighties, Jamshed ji saw the growing demand for independence in India. Jamshed ji believed that to be independent and to sustain independence, India would have to become economically self-sufficient and all essential products would have to be made in India.
Therefore, he started building more Indian businesses in different areas. He first started strawberry farming in the mountains of Panchgani. The impact of which was that even today Panchgani is known for strawberry farming and jam factories. Jamshed ji also observed that the weather of Bangalore and Mysore is like France.
Therefore, he brought silk worms bred in France to India. He bought land in Bangalore and Mysore, started Tata Silk Farm Organization and got silk worm breeding done from local farmers. It was through his initiative that India got popular products like Mysore Silk and Bangalore Mysore Silk Saree. Jamshet ji loved his home town Bombay very much and knew that it was very important to have a world class hotel there for the development of the city.
Therefore, he started building The Taj Mahal Hotel in 1898. He personally participated in the construction and design process. His vision was that the hotel Every room faces the sea and guests feel as if they are floating in water. The hotel was built in 1903. Opened to the public for the first time, it became the first building in Bombay to have lights and electricity.
Jamshed ji took many other such initiatives but his most impactful initiative was to start a steel business. Steel was needed to develop every industry in India like construction, railways and manufacturing. Therefore his dream was to open a steel plant in India itself. He spent 17 years of his life in finding high quality iron ore in India.
Because iron is the most important raw material for making steel, But sadly, Jamshed ji had to face continuous failures because iron is the most important raw material for making steel. faced continuous failures Then ultimately in 1899 them in Bengal province rich iron ore reserves found After which he immediately started iron ore mining.
and setup a steel plant started but unfortunately Jamshed ji himself in India through his own eyes Couldn't see steel being made Because he breathed his last in 1904 at the age of 65, Jamshed ji's vision was that he could not see steel being made in India with his own eyes. Because in 1904, at the age of 65, he breathed his last.
Jamshed ji's vision and his dreams were so grand that it was not possible for them to be fulfilled during his lifetime. Therefore, his son Turab ji Tata took the responsibility of fulfilling all his other dreams. Jamshed ji believed that India was far behind western countries in scientific research and education.
He wanted to establish such an institution in India that would produce world class researchers and scientists. Therefore, Durabji Tata took the help of the Maharaja of Mysore and established the Indian Institute of Sciences in Bangalore in 1909. Nobel Laureate CV Raman became the first director of ISC. Going forward, ISC has made significant contributions in the development of India's first super computer, Param and India's first indigenous aircraft, Da Hansa. It wants business leaders who can take the country's economy to the next level by building businesses.
And to make these business leaders Recently an innovative in India business school has opened such a business school where students get such CXOs and business leaders will teach Who himself founded companies like Uber and Myntra business worth thousands of crores for I'm talking about scalar 18 months of School of Business post graduate program in management and tech students here Will have to work in such real world projects Which are from real companies themselves Will source our own building business here curriculum
Will be a plus to your business Fund raising by pitching to VCs Scaler will also get opportunity education industry since last 7 years and so they already have There are more than 1200 placement partners, this is something that no other business school is currently offering, you will get the opportunity to be placed in leadership positions with these partners and there is a mandatory internship of 3 months, Scalar has achieved 96% placement rate in its online programs and the median CTC is 25 lakhs.
currently scalar school of business Starting in early September For your founding cohort Only 75 students are going to be handpicked. The best part is that if you apply now You can also get scholarship up to 100% So just given in description or comment section link to scalar school of business apply now let's come back to the story Apart from education, Jamshed ji has also used the link to generate electricity. Apply for Scaler School of Business. Now coming back to the story, apart from education, Jamshed ji.
Had ever dreamed of a hydro electric plant to generate electricity. Goha in this project Power generation was to be done by using Dudhsagar Falls located on the Maharashtra border. Dorab ji involved 7000 workers and got artificial lakes, dams and channels built. The plant was ready in 1911 and you know this power by the name of Pagar. Finally, Durab ji Tata also took the responsibility of completing the work of the steel plant which was started by Jamshet ji. In 1907, he To establish a limited company and for the steel plant
IPO of Rs 23 crore announced At that time due to the Swadeshi movement Nearly 8000 in just two weeks people invested in it Company Name Tata Steel and Iron Company i.e. TISCO was kept and finally in 1912 By producing the first steel from TISCO It came out only after two years In 1914, World War I started and Britain's steel demand suddenly shot up. They needed steel for tanks, trucks, railways. TISCO's plan worked day and night and fulfilled this demand. After the end of the war, the Viceroy of that time acknowledged the contribution of TISCO and the town where TISCO's plan was located was named after Jamshed ji. up jamshed
Pur and the name of the railway station Tata Nagar was kept as Durab ji's. Tata Group's business in leadership had increased many fold in 1932 Durab ji Tata died And before leaving he told Tata Group Steel, Power, Consumer Products, Businesses like banking and insurance Durab ji Tata had diversified into businesses like banking and insurance. After Dorab ji Tata, a young member of the family, Giordi Tata, became the chairman of Tata Group in 1938.
Giordi Tata had joined the business in 1925 and was learning work in the TISCO plant. He was always very interested in aviation, so in 1932 he started Tata Aviation Services, which became the first airline in India to provide passenger and cargo transport services. Its first flight was flown by JD Tata himself. After which they had to import essential chemicals like India's first ever commercial pilot soda from outside, these were the chemicals which were used in making glass textile.
They were very important for making essential products like soaps and detergents. He wanted these chemicals to be To be produced in India only, that is why in 1939 he set up a chemical plant in Mithapur Town, Gujarat. Built and that's how Tata started Tata Chemicals which today also manufactures Tata Salt.
Chemicals business started doing well But JRD's dream was still to grow the airline business. During World War II the British Government seized all the planes. Due to which Tata Aviation Services closed overnight But as soon as the war ended, JRD decided to enter the airline business again. And this is how Air India started in 1946 Air India crew was known for their warm and attentive services.
The food, cleanliness and in-flight entertainment of their flight were all top class. Even their mascot was a Maharaja Which reflected the Indian hospitality and royal standards of the airline. Air India always operated as per the time schedule. Due to all this not only in India but also internationally Air India was known as one of the best airlines JRD was growing Air India like his own child.
But then something happened which took away this Air India from them in one fell swoop. After Independence, the Indian Government snatched away the Socialist Economic Model. After Independence, the Indian Government snatched away the Socialist Economic Model. Had adopted the one whose country was to be killed.
Important industries like Transportation Government Controls should be in so that these industries Pay more for public service than profit Focus and so in 1953 Nationalize Air India i.e. taken under government control Air India after nationalization A tragic decline has begun service, punctuality and safety negatively impacted due to which ultimately Air India has status of world class airline Lost but Air India's setback Even after GRD Tata No stone was left unturned to grow the group He saw that after independence
Any Indian in any country There is no cosmetics brand, so he saw that even after independence, there is no Indian cosmetics brand in the country, so he started Lakme. Lakme is a French word which means Lakshmi in Hindi. Jayadi deliberately did not give an Indian name to this brand. He knew that Indian women were inferior to foreign brands and considered foreign brands to be of high quality, so by naming Lakme, he took this cosmetics brand to the international level.
Gave aspirational value but in reality the meaning of Laker was still deeply connected to India. Apart from this, GE bought a railway engine manufacturing factory in Jamshetpur and started Tata Locomotive. And Engineering Company Limited, which was later transferred to Tel. Initially Telco used to manufacture steam engines only for railways but JIA soon expanded into truck manufacturing. He launched Tata 407 truck which became quite popular for its slim and strong design and captured 70% market share by beating the international brands. Today we all know this Telco company which manufactures engines and trucks as Tata. know by the name of motors
Apart from business, Giardi Tata helped India in its most difficult times. During the Indo-China War of 1962 and Indo-Pak War of 1965, he assured all kinds of support to the government. He sent Tata engineers to Delhi to provide military aircraft to the country. He used his Air India experience and designed the Indian Air Force.
year defense preparedness plan also made in this report signaling equipment Requirements for radar and spare parts were included by the government and the Indian Air Force. This report helped a lot considering the contributions of JRD Tata. The President of India also gave him the posting of Honorary Air Commodore in the Indian Air Force.
By 1991, Gerdy Tata had taken the number of Tata Group companies to 84. The revenue was Rs 24,000 crore and there were 2,70,000 employees. But now at the age of 87, the time had come for him to hand over the command of Tata Group to someone else. Therefore, Jerry Tata had appointed a promising member of the Tata family as the new chairman to hand over the command of the Tata Group to someone else, therefore, Jerry Tata chose a promising member of the Tata family as the new chairman and this new chairman was Sir Ratan Tata.
About 30 years before becoming the Chairman, Sir Ratan Tata was studying architecture in USA till 1962 when he received a letter from J. A. Tata in which he was asked to come to India and join the business. Ratan Tata came to India and founded Tata Steel. joined and was a normal worker there started working like Seeing his dedication and business talent They were given big responsibilities one after the other.
Started meeting before becoming Charmin He saved Empress Mill from losses. made profitable by extracting A major labor unrest in Telco was successfully resolved And Tata's NELCO company Which used to make radio and television etc. Its revenue is from 3 crores was increased to Rs 200 crore When Sir Ratan Tata in 1991 When he became a cherman he knew That Tata Group looks good from outside performing but in reality He was lagging behind in many things They felt that the Group was lagging behind in high technology like computing and AI and the Group was doing the same but in reality it was lagging behind in many things. They felt that the Group was lagging behind in high technology like computing and AI.
Like the group is far behind in computing and AE and the group has not done anything unique for a long time, that Tata He wanted to do something revolutionary for the group through India. With this mindset, he saw that India Ratan Tata did not have any car in which everything from design to production was done in India, so in 1995 Ratan Tata decided to make a 100% Indian car.
A car which is spacious, futuristic, affordable and gives high mileage, But there was a problem, The cost of setting up a new manufacturing plant was around 2 billion dollars, Which was a huge amount, That's why Tata Motors gambled, And an old Nissan plant in Australia was bought for a huge amount at one fifth the cost, so Tata Motors gambled, and an old Nissan plant in Australia Bought the plant at one fifth cost, By dismantling this entire plant Brought to India, and in Pune Rebuilt by Ratan Tata One of the best in designing your own car
Important rules followed, and finally car in 1998 Launched, this is an Indian car was, so to name it Indi was taken from Indian and Ka was taken from car and Indica was created by combining them Tata Indica Auto After Mobil, Ratan Tata focused on technology. He saw that the focus of TCS was in providing administrative services to Indian companies like data entry and book keeping which was a very basic level work, hence Ratan Tata shifted the focus of TCS from administrative services to software services. This was a very basic level work, hence Ratan Tata By shifting the focus of TCS from administrative services
brought to software services After which TCS India And even for the world's biggest organizations Started making customized softwares Ratan Tata also brought TCS IPO Due to which the company got funding to expand. And with these steps even today TCS is India's biggest IT company. After the success of TCS, Sir Ratan Tata focused back on Tata Motors.
He observed that the majority of India's middle class population cannot afford a car. That's why the whole family is forced to travel congested in a scooter. which was very uncomfortable and unsafe Sir Ratan Tata's dream was to make the Indian middle class transition from a scooter to a car, that is why he announced that he will launch a car whose price will be only one lakh rupees.
Keeping his promise, in 2009 he launched Tata Nano at a price point of Rs 1 lakh but unfortunately Nano proved to be a failure. The biggest advantage of Nano was its cheap price but this became its biggest disadvantage. In India, people see a car as a status symbol. Anyone who owns a car is considered successful.
But due to Nano's cheap price and its design, people have called it the world's cheapest car match box and even covered. Branded it like an auto rickshaw, where other car owners used to feel proud of their car, the same is true of Nano. Owners are worried about their car felt and hence nano Proved to be a failure but Tata Motors worried about this failure learned a lot about behavior Which can also be seen in their line up today Today Tata Motors is part of Tata Group.
highest revenue earner The company has finally become Sir Ratan Tata Deeply has become a high revenue earning company. Finally, Sir Ratan Tata deeply wanted that Indian companies need not just India Rather we should do business all over the world And so to expand into foreign markets They started acquiring foreign brands one after another Like to expand Tata Motors in the global luxury market They acquired Jaguar and Land Rover Acquires British brand Tetvar to expand in global tea and coffee market British brand Tetley to expand in global tea and coffee market
and US brand Eto Clock Coffee. acquired Similarly every major company of Tata Like Tata Steel, TCS, Tata Chemicals And I&C L also made acquisitions And today because of these decisions More than half of Tata Group's revenue comes from outside India Under the leadership of Sir Ratan Tata, the Tata Group has earned more revenue from outside India. The list of what the Tata Group has achieved under the leadership of Sir Ratan Tata is very long, whether it is Titan making the world's slimmest watch, TCS making the world's one of two most powerful supercomputer or disrupting the television market by launching Tata Sky. Tata Group has achieved success in almost every area. Sir Ratan Tata says that If you want to go fast then go alone but if you want to go far then take everyone along. Tata Group has always done business with this philosophy. On one hand it has built big companies and on the other hand it has also built schools, colleges and hospitals. Tata Group has always walked along its investors, its employees, its customers and ultimately its country.
And that is why today he gets many times more respect from people than whatever success he has got.
Is boAt Losing Market Value?
In the year 2020, BOAT had become the fifth largest wearable brand in the world. It had beaten all the Indian brands and was in the leagues of Apple, Xiaomi and Samsung. Then, between FY20 and FY23, BOAT's revenue increased from Rs 700 crore to Rs 3400 crore. And that's a 5x growth in just 3 years. BOT's smartwatches and their earphones were everywhere.
And Aman Gupta was one of the most celebrated entrepreneurs in India and his company was getting ready for a blockbuster IPO. But then things started to change. BOT's revenue started to fall. It started losing to other players in the segment.
In fact, things got so bad that both its co-founders Aman and Sameer quit their positions and moved to known executive roles. So what exactly went wrong with BOAT? And what does the future look like for the company? Welcome to our weekly Indian startup news show. I'm Pankaj, your host, and you're watching Backstage with Millionaires. So, let me take you back to where this story really starts, which is not 2014 when BOAT was founded, but in 2020, when Bat really took off.
See, when the pandemic hit, Boat was already an established and growing brand, but COVID helped them accelerate at an unprecedented pace. The screen time for people grew multifold. Also, almost everyone was working from home. And because of that, people needed headphones. In fact, demand for audio products grew 20% in the early months of pandemic alone and Bode, which had spent years building the most recognizable and affordable audio brand in India, benefited from it the most.
But that wasn't the only wave Bode caught in 2020. As people started tracking their health obsessively during the pandemic, smartwatches suddenly became a mass market product. And Bode saw this as an opportunity and launched their own smartwatch line in October 2020.
And this wearable segment of theirs, which did not exist until 2020, went on to bring 900 crore rupees in revenue within the next two years, which was nearly a quarter of everything the company made. And thanks to these two waves and Aman Gupta being on Shark Tank, Bote had crossed 3376 crore in revenue in FY23. But then things started to change. The two waves that Boat was riding suddenly started to disappear.
And let's first talk about their smartwatch business. See, once the hype of smartwatches started to fade after the pandemic, people started evaluating their smartwatches more critically. And what they found was that these entry-level smartwatches, the kind that BOTE made, which were typically priced below Rs 2,500, did not really have the most accurate health tracking.
Basically, the consumer expectations from these products had gone up, but these products failed to keep up with the consumer. And as a result of this, the smartwatch market started shrinking in India. In FI24 alone, it collapsed by 34% and Bote was the most impacted company. Bote's smartwatch segment that brought in 901 crore rupees in revenue in FI24 had gone down to just 330 crore rupees in FI25, a 63% decline in just one year.
But the thing to understand here is that consumers were not necessarily ditching smartwatches entirely, they were just ditching the low-quality ones. And I'm saying that because the market for premium smartwatches had essentially doubled during this time. The kind of smartwatches which are priced over 20,000 rupees. A segment where players like Apple and Samsung exist.
So, smartwatches was the first bad news for Bode. Next came its audio business. The segment that had essentially made BOAT also started declining. And I think this is a more deeper and existential problem for BOAT. See, when BOAT had built their reputation, they had a genuine edge. They were selling affordable products with cool designs.
But that edge is now gone. It worked for BOAT when they were the only player. But today, they have a tough competition from a bunch of new age Indian brands like BOAT Audio and Noise, along with international brands like Realme, Nothing and OnePlus. Basically, this category is being commoditized right now.
And when a category commoditizes, the brand that's perceived as affordable is usually the one that gets hurt most. And the culmination of all this happened when the two people who built Bolt, Sameer Mehta and Aman Gupta, decided to quit and transition to a non- executive role. And now the company has brought in a new CEO. In fact, Boat has changed three CEOs in the last three years. And that's not good for a brand that's already losing its market.
So is this the end for Boat? Or do they have a plan? Well, sort of. According to the DRHP, Boat now wants to focus on the premium segment, products above 5000 rupee range. And the company now wants to focus on building better technology instead products above 5000 rupee range.
And the company now wants to focus on building better technology, instead of just playing on the price. And that is the right direction. The premium audio market is where the growth is. But the problem with this segment is that it is owned by Apple, Sony, Samsung, and JBL. And competing with these brands won't be easy. All of them have spent decades building credibility for premium audio.
And BOAT has never competed at that level. And now repositioning a brand that builds its reputation on affordable and trendy to suddenly play in premium is one of the hardest things to do in consumer electronics. And before I wrap it up, let's quickly talk about their IPO. See, when they were at their peak.
And at that time, they were planning on raising 2000 crore rupees. But the company decided to postpone it because of bad market condition. Then they again filed for an IPO in 2025. This time with the plans of raising 1500 crore rupees. But again, these plans were postponed. And we don't know when the company will finally go public.
Also, there are some concerns with their DRHP as well. Boats own auditors have flagged that Boats quarterly returns filed with the banks did not match the company's internal books. And that too for three consecutive years. And that raises a lot of concerns. See, trying to go public with three years of bank versus book mismatches is not the best story to tell to the public market investors.
And that at a time when your revenue is also falling. So right now, Boat might have a plan, but they don't seem to have the right people to execute that plan let me know what you guys think do you think both will be able to make that transition or will it just suffer the same fate as someone like lava or micromax all right next up urban company has just announced that their quick housekeeping vertical insta health has crossed 1 million monthly bookings in march and that's a big number especially considering the fact that they had launched this business vertical
just one year back. And now the company is calling it their fastest scaling business unit in their history. And since they announced these numbers, their share price has climbed over 10%. Now, if you look at the service, it's pretty straightforward. They have on-demand cleaning, dishwashing, laundry, and meal prep, all fulfilled in 10 to 15 minutes from booking.
And the service right now is only live in cities like Mumbai, Bengaluru, Delhi NCR, Hyderabad, and Pune. But here is where it gets interesting. This space is starting to look a lot like what happened with QuickCommerce a few years back, where you had new players coming up every day. Also, investors putting in millions of dollars to help these companies scale fast, and the media still questioning if this is even a profitable model.
Now, coming to this house help market, Urban Company's Instahelp currently leads this market with 49% market share, while Snabbit is next with 36% market and Pronto is at number 3 with 14% market share. But the thing to note here is that startups like Urban Company are burning money right now to acquire this market. In quarter 3 of FI26, Arvan company registered an EBITDA loss of 61 crore rupees. And same is with Snabbit and Pronto.
So the growth and all is good. But the real question is still the same as it was in the quick commerce. Will anyone be able to make this profitable at scale? Alright, moving on to some quick news updates. B2B manufacturing platform Zetwork has confidentially filed for their IPO papers and they are looking to raise around Rs 4,200 crore or almost $450 million.
The company was founded in 2018 and they basically help connect businesses with contract manufacturers across sectors like electronics, aerospace and industrials. The company posted operating revenue of Rs 12,798 crore in FY25 with a net loss of Rs 371 crores. Talking about IPOs, furniture and electronic appliance rental platform Rentomojo has filed for DRHP with SEBI to raise Rs 150 crore in their IPO.
But one of the co-founders, Ajay Nain, has filed a petition with NCLT claiming that he was misled into selling his 9.41% stake to an employee benefit trust back in 2023. And now, Ajay wants to void that share sale, restore his shareholding, and stop the company from its planned IPO. Alright, next up, Mirza International's MD Tauseef Mirza has acquired a 100% stake in D2C casual footwear startup called Solthreads.
And this company is already clocking a monthly run rate of 6 crore rupees and this deal will help mirza international to expand into india's youth focus semi-premium footwear market all right now let's move into the funding news segment for today's video this week indian startups raised a total of 47 million dollars which is significantly lower than last week's 268 million and now let's take a look at some of the startups that have raised funds this week. The first one I want to talk about is Batchat, which is a simple app that helps you
save small amounts of money every day automatically instead of big monthly investments. Basically, what they do is they take tiny amounts like 50 to 100 rupees via UPI and invest them in mutual funds. So even people with irregular income can build savings easily and they've raised 12 million dollars in their series A round.
Following that, we have Mumbai-based Amaha, which is an online mental health platform where you can talk to therapists, get medical help, and use self-care tools all in one place. And they've raised 50 crore rupees or $5.35 million. After that, we have the D2C nutrition brand Beast Life that sells things like protein powder and supplements. And they've raised 20 crore rupees or $2.
million in their pre-series a round next we have cyber security startup called sign3 which is an ai powered fraud prevention platform and they help banks fintechs and online businesses to spot and stop scammers by analyzing device data and user behavior like typing patterns or mouse movements and they've raised 1.
million dollars and finally we have epic an online e-commerce platform that lets you try gadgets at home before you buy them what they do is they basically send someone to your house with the product so you can test it in real life and decide whether you wanna buy it it's basically an online shopping with a real world trial experience and they've raised one million dollars in their pre-seed All right, that's all the startup news I have for you this week. Thank you so much for watching and I'll see you in the next one.
startup investment tips
If you are running a startup and want to raise funding for your startup, then these videos are exactly for you. Friends, money is a very important thing to run a startup. Yes, market is important, team is important, how you will launch that product is important, but for all those things money is important, team is important, how you will launch that product is important, but money is important for all those things.
And there are many people who are not able to understand this entire process of fundraising properly, are not able to execute it properly, then this video is exactly for you. Four things that I will discuss in this video. First, when investors invest in a startup, why do they do it? It is not that they have some love for us or our startup, they are investing in our startup for a very valid reason and that is very important to know. Second, when investors invest, what are the things they keep an eye on? What are the things they want to know about you about the startup?
Third, if you want to race your friend, then what are the things that you have to prepare? And how to reach investors in fact a little broader question that if you want to If you want to race for money then what are the types of investors whom you can approach? Let's start with the first question. Why do investors invest in startups? It is important to know because on this basis you will give this answer.
Whether you should even raise funds or not. In my Startup Guide course, I devote an entire section to this. Where I say please there is no fund raising for everyone. Because one day you are standing up and doing your startup, This does not mean that you should fundraise, because when you fundraise, you are making a very Maybe, expensive, but definitely giving an emotionally engaging promise to someone, and that is your investors.
Someone has it and that is your investors. Investors do not invest their own money. Most of the institutional investors raise money from someone else. These could be large pension funds, These could be large government funds, these could be large university funds and when they raise money from them, they give them a return guarantee.
They say that whatever money we are taking from you We give you a minimum will return which is called the hurdle rate required It's not what it is, it's not what it is, it's just I am speaking for general knowledge but it is important to recognize that these investors Does this happen to anyone else too? Have made a return promise So this means that their entire focus is on your startup. They have also promised a return to someone else, so it means that their entire focus is on your startup so that your startup grows and due to this, the value of those who have invested money also grows.
let me give you an example Suppose your startup is in its initial days and you have raised money from some investors. It's the day and you raised money from an investor for your startup. 10 long rupees were valued at If he inserted 1 long rupee This means that they bought 10% shares 90% you have it has 10% now you fought work hard And in one year, in two years, in three years your company is very good Now at that point, in one year, two years, three years, your company has grown quite well.
Now at that point you want to raise a new round. So when a new investor comes, he says, well done, what a wonderful startup you have created, what good growth it has shown. I am very happy, I will give a valuation of 10 million dollars to your startup. What is the basis of valuation, we will know further.
I will give the valuation of million dollars. What is the basis of valuation, they will know further. Now let's say on that point, take this million dollars and 10% of your company's share is mine. I was the first investor who had invested only 1 lakh rupees in your company. For 10%, the value of that 10% has been calculated to be approximately 1 million dollars, 10% of 10 million.
Which means his investment of Rs 1 lakh has now become worth around Rs 1.5 crore. And that is what they are betting. But when he had invested the money, it was a very risky asset. It was not necessary that he would earn one million dollars from that one lakh rupees and this ten lakh startup. In fact, 90% of startups now fail even after funding or are unable to reach the stage where investors thought they would reach, and perhaps they will be forced to startup, or perhaps they will be forced to startup, or perhaps they will be forced to startup, or perhaps they will be forced to startup, or perhaps they will be forced to startup.
You will be replaced and someone will take your place, Or it may happen that they will try to bring in some other investor. on terms which are not favorable to you, Whatever happens, which does not go as per plan, could be something that harms you personally and maybe also your startup. So this is very important friends, Understanding that fundraising does not mean that the money will come forward and you will party and open your own startup.
This means that you make a promise to someone professionally and emotionally. Are you sure that your startup will be successful, and yes, every single person This is what is wanted, but it is not necessary that this happens with every startup, And when it doesn't, things get a little tricky. Now, if an investor wants to invest in your startup and is not there then things become a bit difficult.
Now if an investor wants to invest in your startup, then the second question is that what will they look for due to which their interest will peak and they are investing because they want your startup to grow and because of that, the money they have invested and the ownership they have in their company will increase in its value.
And because of that money, the ownership they have in their company will increase its value. Now that means what they are looking for is, what are those things? Due to which their confidence in one way or the probability of one way increases. That this startup will grow and here are a few things number one the market and the market size In which market is your startup and what is the opportunity or size of that market? It is mostly identified by something called TAM or total addressable market. It is important to know and understand this
Because it may happen that you make a mistake in its determination. I'll give you an example. Nearby, my startup which I started in 2015, works with local commerce players. Restaurants, Spas, Salons, Malls, Entertainment Hotspots etc. So initially we thought what was our total addressable market size. The size of the restaurant industry, the size of the spa industry, the size of the salon industry, the size of the retail industry, adding all these together is the total addressable market for nearby.
And that's a very big market, right? But as we built that startup, made a lot of mistakes, then we realized that our The total addressable market is not the size of all these industries, but the expenditure on marketing and sales in all these industries is only that much because Ultimately Nearby is helping that restaurant, spa and salon in sales and marketing, not in the entire business.
So what we realize was 5% is what is usually spent on sales and marketing. That total addressable market is 100, He is no longer 100, he is only 5. So our market, With a ratio of 20, Cut off. And that, is an important realization. Number 2, What is the problem in this market? What you are solving, What a big problem it is, And your solution, how good it is or how effective it is.
Now that is basically the core of the business, whatever problem you are experiencing in that industry, your solution, how elegantly your product solves it. How is this known? It is a combination of which technology you have used, If you have released a product early, So what is the feedback from the market or consumer? Or have you come up with a new innovative solution that was never thought of before? Or it may not have been thought at this level, combination thereof.
And then, third thing, the team. And frankly, at such an early point, when the risk is so high, the startup is so new, more often than not, the funding is raised on this third point. that who are you? What have you done in life? Which war do you live through? I have been living this life since, usually I have seen that the founders who are able to raise money and raise money, they are in a way enterprising right from the get go, yes this might be their first startup, maybe second too, but in life they
Many such things are done, which are always giving a probability of hinting that whatever person she is, she works differently, she thinks very differently, always has a very different approach towards life, if there is any problem, she always thinks very differently towards life, if there is any problem.
Having a Vision Is Very Different and That's What Sets Per Apart That's Why Investors Laugh to Focus on Founding Who is the team? How are the founders? How are the employees? And fourthly, if there is traction in the startup? If you have launched the product orally or have initially launched some new alpha betas either for internal employees or for a limited set of users outside, then what is the response? What is his feedback? What are its early signs? No.
This should not be for revenue. It can be anything, how is the growth in users, how many people are using it daily, weekly, monthly, how many diseases are coming back, age retention, so on and so forth. If all these things are important, then the third rider, which is, if you are going to an investor, then what should be your pitch toolkit? 3 specific things for this. First of all, a business plan.
Second a business strategy a pitch deck let's talk about everything The first is a business plan that is the financial plan of your startup. This means your projected revenues, your projected costs and accordingly your projected profit, your loss. Typically for the next 5 years. Quarterly plan for the next 1 year and then annual plan for the next 4 years.
This is something which is minimum expected from you as part of a business plan. It is very important that your basis for revenue and expenditure is solid. So if the good investors do not focus mostly on your numbers, Do it based on your assumptions.
What have you assumed? that you have assumed that you Will you bring customers for free? That you have assumed that customers will come for this much money, that you have assumed that the payroll cost of engineers will be this much, that of sales and marketing will be this much, that you have assumed that you will be in so many markets, or will be in so many markets, all of those assumptions are basically the basis for you to build that model, so that is why it is a very deeply detailed excel sheet, and there is no escaping it, you have to create it.
I have shared one or two templates on the description, Which are globally recognized, you can start using that. Second, business strategy. Now under a business plan it came to light that, What is the financials of the company? But business strategy is a far bigger document. Because it contains everything that surrounds your business, not just financials.
How big is the market? What are the problems of that market? How are you addressing that problem? Why is this solution innovative or competitive? Who are your competitors? What will be your go to market strategy? What does it mean? How do you launch? Why is this solution innovative or competitive? Who are your competitors? What is your go to market? What will be the market strategy, it means how will you launch, how will you get the first customers? How will you bring them, how will you retain them, how will you engage them, how will your team stand, how will that team
Everything that is needed for someone to understand how your business will be executed will be distributed. How to execute: This tool is a word document and is written in text. Sentence is written, there are many templates for this also I shared a pitch with you about those templates in the description.
Tech Pitch Understand Tech is a PowerPoint presentation that is a summary of all these things There are five things involved in this. Number one is which market are you addressing and what is the opportunity of that market. Second, what is the problem within that market and how are you solving it? Third, why will your solution work? Why do you think that this is a solution that can meet all the others? Fourth, what are your projections, where can you take this business, how big can you make it, and fifth, about your team.
These five fundamental points must be present in every pitch deck, there can be more than this, but this pitch deck does not have to be made of 50-100 slides. Maximum 20 slides, ideally 10-12 slides, very concise, very sharp. I have also linked the templates of Pitch deck in the description. You can use them.
Now comes the fourth and most important question, From whom can you raise funding for this startup? So first of all the easy one and the one that I would recommend friends and family Your friends which needn't be your friends it could be if you work, your ex colleagues, your ex bosses, I know so many people, who did good work, earned so much experience, reputation at one point that there are people who are willing to back you up, wonderful friend, I loved working with you and whenever you start anything new in life, please tell me, I would love to partner with you, such people, your family, it could be anyone, it could be your parents, it could be people who believe in you. The money that comes from friends and family network initially comes only because you are you.
Frankly they don't even care what business you are doing because it can go anywhere. But you are you and that's you. That subscribe and subscribe and subscribe and subscribe and subscribe and the network that Y Combinator has, the mentor network, is so strong that you want a lot of experience, not just money, typically to reach them.
References are needed, cold emailing works, and there is no reason why you should not try it, I can guarantee you, every one Investors read every single email. but the reason why they don't reply is because the emails are not exciting enough, they are not well written, that's why cold email if you want to do it in a very well researched manner I will have to, I have made many videos, all cold emailing, please read it seeing one Will take a new shot, and try and create references, those references Getting tired of your school network,
Can be from your work network, May be from your college network, or other founders that you know of, who have raised from them, whatever it is, if there is someone who can say, I know it, And that's why you should meet them, nothing replaces that. And finally, not my preferred route, but if nothing happens, then H&Is or high net worth individuals.
Preferred route is not because these are not formal professional investors. So it tends to happen that these H&Is, They have a lot of money, But that is not the experience of how to manage or deal with an investment. So that very quickly, very much become possessive, a lot becomes over indulgence, Become very governing, Ask me about everything, Tell me, show me, it happens, ask me about everything, tell me, show me, it happens, And then that doesn't make for a really good investor relationship. So these are the ways, these are the kind of people
that you can reach to, I recognize it is not easy, but I can tell you that there isn't any other way, it is not that You can go anywhere and collect money from anyone, just because you have started it, o forgot one thing, Angel Networks, Angel Networks also very exciting, they have come up in the last 10 odd years, but a lot of recent ones popularity is big, there are lots of Angel Networks, which bring all these HNI's together, But let's make it a formal process, so a good example is the Indian Angel Network or the IAN, and if we make a formal process then a good example is the Indian Angel Network or the IAN
And there are so many more Mumbai is Angels, Chennai is Angels, Hyderabad is Angels. This is not if you are a Mumbai startup So just have to pick it up from Mumbai Angels you can pick up anywhere these are just groups of people who have come together But there are many Angel Networks that you can tap into as well so they work with HNIs but they remove all the limitations that an H&I will bring with them.
So to get funds for startup than connect with our support team to get feature to grow yours business.
How to start Datacenter or Domain and hosting business
Domain:- the domain is unique name which have to registered by registrar as ICANN. The domain support many extensions like .com, in, .ae, .co.in, .ai, .site, .xyz. for every country there is reserved extension for in for india, .us for usa, .cn for china and many more.
Web hosting:- host the any type of data like website, images, video is known as hosting.
There are many hosting provider as mrcloudhosting, hostingraja, godaddy, hostgator, namecheap, tmdhosting, utho, etc. In marketing there many categories available for hosting as web hosting, wordpress hosting, nodejs hosting, cloud hosting, vps hosting, video hosting, etc. the hosting company make categories in their own way to define the structure of hosting with pricings. The cheap of less price hosting has many limitations some of them it is mentioned and while some not as file and directory limits as inodes. Bandwidths, ffmpeg, email limits, etc
Web hosting:- many companies has this plans in which they categorised based on pricing as gold silver bronze, basic standard enterprise, etc. to purchase web hosting you have to visit the provider website and select the plan as per requirements to host, you have add2cart, checkout with details by making payment you can use the hosting panel with purchased features.
Wordpress hosting:- if you need to host any wordpress website then you choose this plan.The wordpress is less time take to develop the website which helps to make business presence for small organizations. You can also host your local wordpress website to live. Then wordpress website has limitation in terms of scalability. For big companies they prefer coding website so they can make use to handle such large traffic, data sharding, docker, etc.
VPS hosting:- for full access or control of server you can choose vps hosting also known as virtual private server. It has dedicated ip and you can install any operating system as mentioned in the available list like ubuntu, cloudlinux, almalinux, etc. if you need graphical user interface like management of panel as cpanel, aapanel, etc then you have to pay extra for license. If you don’t want extra pricing and you have experienced in cli for linux based you can save money by opting this. You can also see the resource usage of your server by installing package in your website to get realtime analytics. In this hosting you have full control and also you can directly run cron jobs, queue jobs and can setup freepbx as siptrunk, etc
To start this business you need to purchase a domain and you have to purchase the vps hosting you can setup the whmcs for panel management to use the features like emails, remote database, mysql using phpMyAdmin, pgadmin, shh or terminal, jobs, billing information, myql wizard, ftp creation, redirection, git for version control, ssl installation as lets encrypt, etc. To make this installation you have to visit whmcs installation website to begin the installation you have to make cmd as mentioned in the website and follow the instructions. When installed then you have to open the ip in the browser and mention the license key if you have purchased and want regular updates and support from panel company. After that you can configured with yours website so users can purchase the hosting with the desired plan as per their personal or business requirements. For domain booking you can purchase the reseller api as from bv and many other providers are available.
To open the datacenter for your business you will have to invest large amounts of money and we are sharing some basic information or requirements for this:-
Space:- you need to take land on rent if you have owned then it is a plus point.
Lease line:- you have to buy a lease line service with your nearest isp to support non-stop internet service.
Power Backup:- to run all devices the organization need to maintain power backup to restart the services like generator.
Racks:- to maintain the devices you will need racks to setup properly in that.
Server:- as per requirements you will need server with custom ram , storage, cache memory, workers, cpu generation, etc there are many providers for servers in the market are as dell, Lenovo, penguin, intel, etc
Switches:- to connect one server with our server you will need switches to establish the network between two or more servers.
Router:- to make your server live you will need router such as cisco, juniper, etc
Firewall:- If you need an extra security then you have purchase the firewall as cisco, paloalto, Fortinet etc
IP:- you need to host your server to live then you need to buy the public ip form your nearest isp. That ip and ports you have to configured in the router.
Custom panel:- you can also make yours own custom panel like aapanel, cpanel, etc for the management of servers. For this you will need developers who are available to add the new features and provides customers support to the clients.
Engineers:- for this the organization needs networking engineers to maintain the healthy ecosystem, should have troubleshooting skills for every devices. In everyday the new issue will be arises for that you have ability to solve the any issue.
Security:- for security you can install immunify 360 for maintaining files security by detecting malware.
Business expansion:- for business expansion you need sales and marketing teams who will lead and make the sales to grow the business and fulfil the requirements of the clients by providing affordable pricing.
Top companies for Datacenter
Rankbank
Serverwala
Equinix
LiveMNC
Nxtra