Now, it’s about sales and distribution costs, and evaluating the performance of each channel in terms of revenue, Ramalingegowda said According to the Wakefit cofounder, marketing strategies across online and offline channels are progressively merging, making it challenging to calculate CAC differently for each channel He added that entering a new channel now requires a fundamental shift in how a brand approaches product development, packaging, pricing, supply chain, and measuring outcomes Today, India has more than 50K digital-first brands. Many of these emerging brands are now exploring offline strategies. However, Chaitanya Ramalingegowda, the director & cofounder of Wakefit, believes that in today’s landscape, it’s no longer feasible for D2C brands to have separate online and offline budgets for marketing, distribution or customer acquisition costs. “Now, it’s about sales and distribution costs, and evaluating the performance of each channel in terms of revenue,” he added. Ramalingegowda shared his insights during the fourth edition of Inc42’s D2C Summit 2023, as part of a panel discussion featuring Harsh Modi, the cofounder & CEO of Mulmul; Shreedha Singh, the CEO & cofounder of The Ayurveda Company; and Gaurav Khatri of Noise. The session was moderated by Dipanjan Basu, the cofounder & Partner at Fireside Ventures. The Bengaluru-based D2C furniture and mattress brand was founded in 2016 by Ankit Garg and Ramalingegowda. Initially, Wakefit focussed solely on mattresses until 2018 and then started expanding its product categories. Presently, Wakefit offers around 500 SKUs across 15-20 sub-categories. Approximately two-thirds of its sales are generated through its website, app, and offline stores, with the remainder coming from online marketplaces such as Amazon and Flipkart. In FY22, the company witnessed a substantial increase in total losses, which surged to INR 101.8 Cr compared to INR 37 Cr in FY21. However, its operating revenue jumped nearly 55% YoY to INR 632.8 Cr in FY22. In January 2023, the startup secured $40 Mn in a funding round led by Investcorp, with participation from existing investors Sequoia India, Verlinvest, and SIG. This brought Wakefit’s total funding raised to date to $145 Mn. Ramalingegowda reminisced about Wakefit’s journey to venturing offline, noting that they always believed in establishing themselves as a digital-first brand. They saw online as a means to achieve non-linear growth and greater control over the consumer experience. “We never had the conviction to go offline until we expanded into furniture. That’s when factors like the rent-to-revenue ratio and ROI period started making sense. When we noticed that at our pilot store, the average order value nearly doubled, and repeat customer behaviour was more prevalent, we realised that customers also craved this offline experience,” he added. Ramalingegowda emphasised that marketing strategies across online and offline channels are progressively merging, making it challenging to calculate customer acquisition costs (CAC) differently for each channel. This shift underscores the importance of how a brand manages its business across various channels. He also shared valuable insights and advice for D2C startups, emphasising that entering a new channel involves more than just launching products. It requires a fundamental shift in how a brand approaches product development, packaging, pricing, supply chain, and measuring outcomes. “It’s not merely about introducing a product; it’s a profound change in how we perceive our business when entering a new channel,” he added. Furthermore, Ramalingegowda stressed the importance of owning customer relationships and the complete customer experience. This entails engaging with customers who purchase products through various channels, ensuring their needs are met, and addressing any concerns. “In our philosophy and belief system, it’s about taking care of the customer, regardless of where they make their purchase,” he concluded.

Sources at TenderCuts told us the company has laid off more than 65% of its entire workforce and wound down operations in Bengaluru and Hyderabad The startup has been desperately trying to raise capital and has been exploring an exit through an acquisition for quite some time TenderCuts founder Nishanth Chandran is expected to quit the company after the Good To Go acquisition, as per sources In what seems to be a distressed sale, Delhi NCR-based omnichannel meat brand Good To Go is acquiring Chennai-based meat delivery startup TenderCuts.  Good To Go said the acquisition would also include Happy Chops, a seven-month-old tech platform launched by TenderCuts that claims to offer an online storefront and procurement support to local butcher shops. Happy Chops was launched by TenderCuts earlier this year. Good To Go didn’t disclose the financial details of the deal, but Inc42 has learnt more details about the downturn that has hit TenderCuts since its last fundraise during 2021’s peak funding season.  Cutbacks At TenderCuts  Inc42 has learnt from sources that TenderCuts shut its operations in several pockets in Chennai, the only city it currently operates in, over the last few months due to scarcity of funds. Multiple sources told Inc42 that the startup had a very high burn rate. Its failure to secure fresh funding resulted in it shutting its operations in Bengaluru and Hyderabad last year.  It also fired nearly 65% of its workforce after shutting its operations in the two cities.  Despite these struggles, TenderCuts launched Happy Chops earlier this year. However, the last three-four months were very difficult, sources added. Commenting on the state of the startup, a senior TenderCuts executive told Inc42, “Acquisition was the only way out as it (TenderCuts) was unable to secure a Series B funding round.”  Social media is filled with irate reviews from dissatisfied TenderCuts customers, pointing out that the Stride Ventures-backed startup had issues when it comes to deliveries and availability of products.  Having spoken to sources at TenderCuts, Inc42 contacted Nabard’s NABVENTURES yesterday (Friday, September 1), a key investor in the company, for a comment on the distressed situation at TenderCuts. Less than 24 hours after this communication, TenderCuts publicly announced the acquisition by Good To Go.  Stride Ventures declined to comment directly about the state of operations at TenderCuts despite multiple attempts to reach its founder Ishpreet Singh Gandhi.  The press statement on the acquisition is mum on whether investors at TenderCuts saw any returns from this transaction.  Stride Ventures was also in the news earlier this year for its investment in GoMechanic, which went through a distress sale earlier this year after its founders admitted to inflating revenues and sales.  If these troubles weren’t enough, TenderCuts has seen the exit of R Venkkatesan earlier this year. Venkkatesan is mulling entering the real estate sector for his next business, as per his LinkedIn profile.  Founded by Nishanth Chandran, the startup elevated three senior employees Sasikumar Kallanai, R Venkkatesan and Varun Prasad Chandran as cofounders in 2021. Sources indicate that Chandran is also likely to quit the startup after the acquisition, along with the other cofounders.  TenderCuts Deep In The Red Founded in 2016, TenderCuts offers freshly cut meat and seafood to customers through neighbourhood stores, which cater to both walk-in customers as well as online shoppers. Over the years, the startup expanded its product portfolio, adding eggs, spices, ready-to-cook products, among others.  The startup competes with unicorns such as FreshtoHome and Licious as well as marketplaces such as BigBasket and a host of other players selling through quick commerce apps.  TenderCuts claimed to have a network of 50 retail stores in Chennai and Bengaluru after raising over $19 Mn in funding. It raised $15 Mn in its Series A round led by Paragon Partners and NABVENTURES. In 2021, it raised $3.5 Mn in debt funding from Stride Ventures. Worryingly, the company saw a huge jump in loss in FY22. The total loss of INR 126.8 Cr was 4X higher than the INR 30.4 Cr in FY21, but revenue only grew by 1.6X to INR 130.9 Cr in FY22 as compared to INR 78.1 Cr in FY21. Overall expenses ballooned by over 2.4X YoY to INR 259 Cr in FY22. Most of these went towards purchase of stock, while advertising costs also ballooned in FY22.  The startup also roped in Prakash Raj as brand ambassador even as it struggled to boost the revenue and improve its unit economics.  The poor financial and operational state of TenderCuts mirrors the state of many other meat delivery startups, where Licious and Freshtohome are dominant forces. Licious has raised over $400 Mn, while FreshtoHome has secured over $256 Mn in funding since inception, highlighting the need for capital to scale up this segment.  Despite this, Licious and FreshtoHome continue to be loss-making as per their FY22 financials — INR 856 Cr and INR 480 Cr, respectively.  TenderCuts’ acquirer Good To Go reported INR 9 Cr in revenue in FY22, with a razor thin profit of INR 1.1 Lakh (Less than 0.01%).  The skewed competitive landscape means other startups such as Chennai-based meat retail brand Fipola have also shut down, while Bengaluru-based CaptainFresh has completely shifted its focus towards exports rather than selling to consumers.  It looks like TenderCuts is the latest casualty of this intense competition and opex burden for meat delivery. It’s not clear whether Good To Go would retain the brand identity that TenderCuts has invested in building over the past few years. The announcement, sent soon after Inc42’s questions about the downturn at TenderCuts, was thin on any details in this regard.

The most common method to take a photo from a video is to pause it and take a screenshot. However, this method is not useful as it may take low quality images. Now, Google is making it easier for users to capture images from videos on Chrome.“It’s easy to copy an image from a website in Chrome — but what if you want to capture an important frame from a recorded lecture for your notes? You could take a screenshot, but you’ll likely get a lower-quality image (with the video’s progress bar cut across it),” Google said in a post.‘Copy Video Frame‘ in Google ChromeGoogle has a solution. When using Chrome, or another Chromium-based browser, like Microsoft Edge, users can pause at any time during a video, right-click and select the new “Copy Video Frame” option from the pop-up menu.“Available starting today, you can pause anywhere in a video that’s playing in Chrome and get a clean copy of the exact frame you want. Just right-click in the video and select ‘Copy Video Frame’,” Google said.In this way, Chrome will capture what is currently being shown and users will have an option to paste the image in supported text fields within the browser, like Google Docs, and save the file for future references. According to a report by Engadget, the feature is limited to some streaming services, as many of them have restricted capturing content. It said that the feature works only with YouTube and it needs some fine-tuning. Chrome’s ‘Copy Video Frame’ is being rolled out for Windows, Mac, Linux and ChromeOS, however, the team members of Gadgets Now-Times of India haven’t received the feature at the time of writing this report.

The startup makes almost 10 Mn monthly deliveries to more than 5 Lakh subscribers spread across 15 cities in India Even though Country Delight’s revenue from operations rose 1.6X YoY to INR 542.6 Cr in FY22, its net loss jumped 6.5X YoY to INR 186.4 Cr during the period under review due to a sharp rise in expenses According to Gade, the core mission of the startup is to provide superior-quality products to customers, cultivate customer loyalty, and add value to people’s lives At a time when an increasing number of Indian startups are trying to be in the black, the cofounder of Country Delight, Chakradhar Gade, has said that the dairytech startup is also not far from reaching the profitability milestone. “We are currently an almost $200 Mn revenue company, and the business is growing at 5-7% month-on-month. We are on the clear path to profitability in the next 8-10 months,” Gade said while speaking at the fourth edition of Inc42’s D2C summit. Country Delight currently serves 15 cities in India. As shared by Gade, the startup makes almost 10 Mn monthly deliveries to more than 5 Lakh subscribers across the cities it operates in. During the session, Gade talked about his fascination with the traditional Indian milkman system. The initial hypothesis of Gade and his partner, Nitin Kaushal, centred around the concept of a full-stack business model, where they aimed to own the entire supply chain, from the farm to the customer. One of the intriguing aspects of their approach was viewing cattle as a non-depreciating asset, as they only multiply over time. This perspective meant they could potentially grow the business without external capital infusion. According to Gade, the core mission of the startup is to provide superior quality products to customers, cultivate customer loyalty, and add value to people’s lives. Country Delight began its journey as a bootstrapped venture and dedicated the first 5 to 6 years to laying the foundation. The cofounders focussed on critical elements such as building technology to digitally monitor quality at the source, establishing a reliable supply chain with real-time visibility, and creating a proprietary distribution network capable of scalable operations. Founded in 2013 by Chakradhar Gade and Nitin Kaushal, Country Delight follows a subscription-based model where it sources milk from farmers and delivers it to customers. It also supplies bread, ghee, other dairy products, and fruits and vegetables. Since its inception, the startup has raised more than $158 Mn and is currently valued at over $600 Mn. It counts Orios Venture Partners, Elevation Capital, and Temasek among its investors. Country Delight’s net loss increased 6.5X to INR 186.4 Cr in the financial year 2021-22 (FY22) from INR 28.2 Cr in the previous fiscal year due to a sharp increase in its expenses. The Delhi NCR-based startup’s revenue from operations rose 1.6X to INR 542.6 Cr in FY22 from INR 320.7 Cr in FY21.

AI is everywhere, and now it has come for the bags on our backs. Microsoft is seemingly working on an AI-powered backpack. Yes, you heard it right – a smart backpack with artificial intelligence. Microsoft recently filed a patent for a smart backpack powered by AI technology and equipped with various sensors. The US Patent and Trademark Office (USPTO) has recently approved the application, filed back in May.The patent is for “AI-assisted wearables,” but the illustrations show a backpack. The proposed backpack would use speakers, a camera, GPS, and pressure sensors embedded in the straps to sense the surrounding environment. There is also a microphone to listen to the user’s commands. Microsoft says that it chose the form factor of a backpack to provide a completely hands-free experience. While mobile devices already have similar functionality, they require users to look at a screen and use at least one hand. The company also compares the backpack’s capabilities to home assistants like Apple’s HomePod, Amazon’s Echo Dot, and Google’s Nest home speakers, and the back offers an added advantage of being usable outdoors over them.What sensors will doAccording to Microsoft, the sensors would give the AI assistant a higher environmental awareness level than similar assistants in mobile phones and home-based In a scenario mentioned, the camera can scan a poster for an event, and users can ask the assistant to add the event to the calendar. The patent also describes a scenario where a customer is holding a banana in a grocery store while the assistant provides information on banana prices from nearby sellers. In another scenario, a skier can ask if they could go down a certain path, with the backpack using its sensors to relay information to the AI, which informs the skier which path to follow.These patents may not always come to fruition, as companies at times file patents to do research and development purposes. So, the chances of Microsoft actually making an AI backpack is dicey. However, Microsoft could choose to use the AI backpack’s ideas in other devices or not at all.

Schmooze is a meme-based dating app that comes from the alumni of Standford University and is backed by investors of Hinge, Snapchat and Giphy. The platform has also been featured on The Late Show hosted by Stephen Colbert. The app aims to enter the online dating market in India with a new approach that prioritises humour, authenticity and genuine connections. Schmooze is targeting the meme culture market segment by means of its social media interactions with the target audience.The app wants to provide Indian users with a better navigating experience in terms of fostering connections.Schmooze dating app: How it worksSchmooze wants Indian users to initiate conversations through swiping and sharing memes as icebreakers. Schmooze’s AI comprehends users’ personalities, preferences and traits based on their meme interactions. This understanding enables the app to predict user characteristics and subsequently offer compatible matches. Since its inception, the platform has facilitated over 3.5 million matches and engaged in 50 million meme swipes.The evolution of memesMemes have evolved from simple internet jokes to a universal language that transcends cultural and linguistic barriers. The app wants to capitalise on this phenomenon by using memes as a tool for fostering connections. Schmooze co-founded by Vidya Madhavan, Anurag and Abhinav, alumni of Stanford University and BITS Pilani, enters the race with the aim of redefining the Indian online dating market through the integration of memes. Commenting on the launch, Vidya Madhavan, Co-Founder of Schmooze, said, “Our journey began with a recognition – that the younger generation communicates its thoughts, emotions, and life experiences through the language of memes. So we harnessed AI to extract what the language of memes says about people’s preferences to help them laugh their way to love. Schmooze isn’t just about matching; it’s about providing a space where humour becomes the bridge to forging meaningful relationships.”

Unified Payments Interface (UPI) is the real-time payment mechanism. The instant payment system allows users to instantly transfer money to any bank account. Run by the National Payments Corporation of India (NPCI), UPI recently achieved a new milestone. UPI transactions in the month of August crossed 10 billion. Data from NPCI shows that 10.5 billion transactions were recorded on the platform in August. The volumes are mainly driven by three players in the segment — PhonePe, Google Pay and Paytm. In July last year, PhonePe processed around 4.7 billion transactions, followed by Google Pay at 3.4 billion.“Drumroll please! UPI has just shattered records with an astonishing 10 billion plus transactions. Join us in celebrating this incredible milestone and the power of digital payments. Let’s keep the momentum going and continue to revolutionize the way we make transactions with UPI!,” NPCI posted on X, formerly known as Twitter.The numbers that matter* The 10.5 billion transactions are up from 9.9 billion in July 2023. * In terms of the value of funds settled, UPI recorded Rs 15.7 lakh crore in August, this is slightly more than Rs 15.3 lakh crore in July. * The number of banks that currently live on UPI stands at 473.* NPCI reported 6.5 billion transactions in August last year and 3.5 billion in August 2021. Within two years the payment method has grown almost three times.

Starting a new business venture is an exciting and rewarding endeavor. The thrill of bringing your ideas to life, the potential for financial success, and the satisfaction of creating something meaningful drive countless individuals to embark on the entrepreneurial journey. However, the road to success is not without its challenges, and the statistics can be sobering – a significant number of startups fail within their first few years. The key to avoiding such a fate lies in mitigating failure risks through careful planning, strategic thinking, and a customer-focused approach. Read on to learn to minimize failure risks through planning, team-building, and customer focus in your entrepreneurial journey. 1. Identifying Potential Pitfalls Before diving headfirst into entrepreneurship, it’s essential to understand the common reasons behind startup failures. These include market misalignment, inadequate market research, poor financial management, and a lack of customer validation. To ensure your venture’s success, take the time to thoroughly research your target market, validate your business idea with potential customers, and identify any potential pitfalls early on. 2. Building a Solid Foundation Every successful business starts with a solid foundation. Crafting a well-defined business plan that outlines your mission, vision, and value proposition is crucial. A clear roadmap will help you stay focused and guide your decision-making process. Equally important is the development of a scalable and adaptable business model that can evolve with changing market dynamics. 3. Financial Prudence One of the top reasons startups fail is inadequate financial planning. Careful budgeting, expense management, and forecasting are essential to maintain a healthy cash flow. Consider various funding options, such as bootstrapping, seeking investors, or securing loans, to ensure your business has the necessary resources to grow. 4. MVP and Iterative Development The concept of the Minimum Viable Product (MVP) is a powerful tool for startup success. By launching a simplified version of your product or service, you can quickly gather user feedback and validate your assumptions. Embrace an iterative development process that allows you to make improvements based on real-world insights, increasing your chances of creating a product that meets customer needs. 5. Effective Team Formation No entrepreneur is an island. Assembling a skilled and diverse team is instrumental in reducing failure risks. Seek team members with complementary skill sets who can cover various aspects of the business. Strong collaboration and effective communication within the team can drive innovation and lead to better decision-making. 6. Continuous Learning and Adaptation The entrepreneurial journey is marked by constant learning and adaptation. Stay informed about industry trends, technological advancements, and changes in consumer behavior. An openness to new ideas and a willingness to pivot when necessary can help your business stay relevant and competitive. 7. Customer-Centric Approach At the heart of every successful business is a deep understanding of customer needs. To reduce failure risks, focus on addressing customer pain points and delivering exceptional experiences. A satisfied customer base not only leads to repeat business but also serves as a powerful marketing tool through word-of-mouth recommendations. 8. Mitigating External Factors While you can’t control all external factors, you can take steps to mitigate their impact. Develop contingency plans for economic downturns and regulatory changes. Building strong relationships with suppliers, partners, and stakeholders can provide a safety net during challenging times. Takeaway As you embark on the exhilarating journey of entrepreneurship, remember that success isn’t solely defined by the absence of failure, but by the ability to navigate and overcome challenges. By meticulously addressing potential pitfalls, building a solid foundation, practicing financial prudence, fostering an effective team, embracing iterative development, and centering your efforts around the needs of your customers, you position yourself for a greater likelihood of success. In the dynamic landscape of startups, the path forward isn’t always predictable. However, armed with strategic insights and a resilient spirit, you can steer your venture away from the common pitfalls that lead to failure. By adhering to the principles outlined in this article, you’ll find yourself better equipped to make informed decisions, adapt to changing circumstances, and ultimately tip the odds of success in your favor. Remember that the journey of entrepreneurship is both an educational experience and a chance to make a meaningful impact. Embrace each setback as an opportunity to refine your approach, and approach each milestone with a willingness to learn and grow. While the road may be challenging, your commitment to mitigating failure risks sets you on a trajectory to achieve your entrepreneurial aspirations. So, equip yourself with knowledge, determination, and a steadfast dedication to your customers, and watch as your startup not only survives but thrives in the competitive business landscape.

At a time when many D2C brands are enthusiastic about expanding offline, with some questioning the online demand, Aluru believes in ‘being digital first’ and then gradually expanding into other domains There is still immense potential in the digital realm, so there’s no need to rush into the offline space, especially considering the complexities of scaling up offline operations, the TMRW CEO said   Aluru concluded the session by highlighting lessons learned from Lenskart, CaratLane, and Firstcry, which began as digital-first brands and have successfully demonstrated what an omnichannel presence should look like in the digital age  India’s thriving D2C landscape has garnered significant interest from investors, entrepreneurs, and corporations alike. However, according to Prashanth Aluru, the cofounder & CEO of TMRW – House of Brands, the term D2C is more closely associated with digital-first brands.  Elaborating his viewpoint during the fourth edition of Inc42’s virtual D2C Summit 2023, he said that to tap into the broader ecommerce opportunity in India, D2C brands must focus on being digital-first. “As a D2C brand, you could be selling on marketplaces, your websites, or eventually adopting an omnichannel approach. However, fundamentally, you are a new-age brand catering to a new-age consumer,” Aluru said. The Aditya Birla Group ventured into the realm of house of brands with TMRW in June 2022, with plans to build a portfolio of fashion and lifestyle brands by acquiring and incubating over 30 brands in the next three years. Their current portfolio includes names such as Berrylush, Bewakoof, Juneberry, Natilene, Nauti Nati, Nobero, Urbano, and Veirdo. At a time when many D2C brands are enthusiastic about expanding offline and some are questioning the online demand, Aluru believes in ‘being digital first’.  He acknowledged that ecosystems experience cycles of challenges and opportunities. While growth may appear slower compared to the Covid-19 era, the macro opportunity lies in building a new-age brand that starts as digital-first and gradually expands its presence offline and into omnichannel. He stated, “There is still immense potential in the digital realm, so there’s no need to rush into the offline space, especially considering the complexities of scaling up offline operations from 10 to under 300 stores, which is an entirely different challenge.” Furthermore, as a digital-first brand, the approach to offline expansion should differ from traditional brands like Louis Philippe or Allen.  Aluru further stressed the importance of integration between the two channels, where one channel complements the other. Understanding the consumer and ensuring a seamless experience across channels is essential. A digitally native consumer expects innovation in physical stores, such as having a complete catalogue available or offering an infinite aisle experience. For D2C offline brands expanding into marketplaces, focussing on the products consumers prefer offline is key.  “For instance, if you identify a best-seller in D2C, how can you bring it to the offline space or on platforms like Myntra or Amazon more efficiently? This is where we see the channel’s capability,” Aluru explained. He reiterated that a brand can leverage multiple channels, but they all must be unified and seamless. Aluru concluded the session by highlighting lessons learned from global and Indian examples, such as Lenskart, CaratLane, and Firstcry, which began as digital-first brands and have successfully demonstrated what an omnichannel presence should look like in the digital age.

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