The Indian startup industry has started to mature with companies tinkering with technology in sectors like agriculture, microfinance, convenience services, and education. The ideas are novel but finding investors and a sustainable funding environment still remains a challenge. Here's what's up this week on Startup Street.
Pick My Laundry Bets On Not Offering Discounts
On-demand laundry services are not new to the Indian startup space but the lack of funding has forced two biggest startups in this segment – Doormint and Flashdoor – to shut shop earlier this year.
One such startup though is riding against all headwinds. Delhi-based Pick My Laundry, recently received $200,000 from angel investor Kedar Lele, a senior executive at an FMCG company and existing investor GHV Accelerator. GHV Accelerator had earlier pumped in $100,000 in August, co-founder and CEO Gaurav Agarwal said in an interview over the phone. The company is looking to raise a total of $500,000 in this round, of which the remaining amount will be raised by way of “hard commitments”, he added.
The service is currently available in South Delhi, Gurugram, and Noida, and the startup aims use the funding raised in this round to start operations in a few other cities over the next 3-6 months.
Agarwal said the startup broke even in 8 months from its induction, is profitable at a gross level, and has a customer retention rate of 65 percent.
Its success mantra? Not offering heavy discounts to attract customers, he added.
When some of these companies shut down, it's not because there isn't potential in the market. There are many other things. Say, if your cost of operations is Rs 100 and you offer the service at a discount, then you expect the investors and accelerators to cover the deficit for you. Eventually, the funding dries down and you are forced to shut down. That's why we don't offer any discounts.Gaurav Agarwal, Co-Founder and CEO, Pick My Laundry
Founded by three IIT alumni, the startup also offer B2B services, where its clients clients include established travel startups like Oyo Rooms and Tripoto. Users can avail of services through Pick My Laundry's mobile app, website or on through a phone call.
India Is The Third Largest Startup Ecosystem
The number of technology startups in India went up by 10-12 percent from last year to more than 4,750 so far this year, making India the third largest startup ecosystem in the world, according to a report by IT trade association NASSCOM and consulting firm Zinnov.
According to the report, business-to-business (B2B) startups in India are more likely to survive than those which operate in the business-to-consumer (B2C) space. This is due to the lower mortality rate of B2Bs at 12-16 percent compared to B2Cs at 20-25 percent. The growing prominence of B2B startups hints at the possibility that consumers still find it difficult to trust startups over their traditional companies and services.
Companies are increasingly focusing on cloud and big data analytics and there are currently more than 750 startups in the country operating in that space, the report noted.
Bengaluru, Delhi-NCR and Mumbai remained the favoured cities for startups to set up base, as they accounted for almost 70 percent of the total startups in the country.
Investors will remain cautious on funding going forward, the report said. Total startup funding, however, is expected to decline by 20-30 percent owing to smaller deal sizes despite a rise in established incubators and accelerators.
Anti-Aging Startup Raises $116 Million
Unity Biotechnology, a biotech startup backed by Amazon founder Jeff Bezos, raised $116 million in a series B financing round, the company said in a media statement.
The funding came from investors like ARCH Venture Partners, Baillie Gifford, Fidelity Management and Research Company, Partner Fund Management and Venrock. Bezos Expeditions, the investment machine of the Amazon founder is an existing investor.
Unity Biotechnology is developing medicines to treat and eliminate age-related diseases and increase health-span, or rather the amount of time an individual remains in good health.
The idea is that healthy cells experience stress and enter an irreversible state known as cellular senescence. In this state, cells stop dividing and alter their metabolism, appearance and behaviour. These cells accumulate in the body over the years, and contribute to many changes associated with ageing.
Unity is developing a new class of therapies for diseases of aging called senolytic medicines. These medicines are designed to selectively eliminate senescent cells linked to diseases of aging, such as osteoarthritis, glaucoma, and atherosclerosis.Unity Biotechnology Media Statement
You Can Now Book Tatkal Railway Tickets On MobiKwik
Booking tatkal tickets just got simpler with mobile payments wallet Mobikwik announcing a parternship with the Indian Railway Catering and Tourism Corporation to pay for the tickets through the wallet.
Mobikwik's mode of online tatkal booking has a 50 percent higher success rate than others, the wallet player said in a media statement.
Users must preload their wallet with the desired amount using the netbanking, credit or debit card or cash loading method and then book tickets instantaneously, according to the statement.
Earlier this year, Mobikwik had partnered with Indian Railways to digitiSe payments on the smartphone app of IRCTC and IRCTC FoodOnTrack app for ordering food during the journey itself.
Tatkal is a special high demand service that was launched by the IRCTC for passengers who want to book tickets at the last moment.
Dell Founders To Invest In 10 Indian Education Startups
The Michael and Susan Dell Foundation has identified ten innovative early-stage enterprises in India that are helping to increase underprivileged students' chances of securing a college education.
The Education India 2016 programme launched by the philanthrophist organisation, is looking at a potential investment of up to $500,000 in each of these startups after conducting an evaluation, according to PTI.
By 2018, we're aiming for 80 percent of the students in programs we support to reach grade-specific competency. Improving India's school system, implementing reliable assessment tools, empowering high-quality educators and increasing student outcomes requires a lot of effort by a lot of stakeholders.Michael and Susan Dell Foundation Website
BloombergQuint has reached out to the foundation for further details and is still awaiting a response.
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