Why is Paytm India's Top Startup?

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Paytm was launched in 2010 as an Indian start up. The original service of Paytm was to help users to make their bill payments and recharge mobile phones, while earning reward point. In this post we will see the reason why Paytm is considerd the top indian startup and get more details about this startup. What is Paytm? Paytm was founded by Vijay Shekhar Sharma, in Noida with an initial investment of $2 million. Paytm's parent company One97 Communications which is also owned by Vijay Shekhar Sharma was started in 2000 and operates into multiple fields. Who owns Paytm? Paytm has been backed by Jack Maa's Alibaba and Ratan Tata of the infamous TATA Group. Although partially owned by Chinese company Alibaba, Paytm remains an Indian company with majority of stake holders being Indians (primarily Ratan Tata and Vijay Shekhar Sharma himself.  What got Paytm the required boost? Paytm added a lot of features in 2013 and moved from a mobile and DTH recharge service to an online payment pl

Jugaad in the Wild Wild West


Although Jugaad is practiced in India, it was once a big part of Western innovation too. Among the many early American jugaad innovators, the best known was Benjamin Franklin. Born in Boston, Massachusetts, USA, in 1706 had left his school when he was 10 to work in his father’s soap and candle factory. Early on, Franklin developed a knack for using limited resources to devise ingenious and frugal solutions to tackle everyday problems.

Franklin’s one of the most practical inventions was the Franklin Stove. During the 18th century, homes in the US were primarily heated by inefficient fireplaces that spewed smoke as much of the heat they generated escaped up the chimney. This was also dangerous as the sparks could easily trigger fires to the wood build homes.

Franklin’s jugaad innovation was a new type of stove with a simple hooded enclosure in the front and an air box in the rear. The new stove and its reconfiguration of the flues enabled a more efficient fire. It consumed 75% less wood and generated twice as much heat.

 
Franklin wanted to serve his country with his inventions. He turned down the patent offered for his original design and wanted his designed to be copied by everyone. In fact he patented none of his other Jugaad inventions. He wrote in his autobiography “as we enjoy great advantages from the inventions of others, we should be glad of an opportunity to serve others by an invention of ours and this we should do freely and generously.”

The Non Jugaad Approch (Structured Approch)
Although the Fathers of America had the Jugaad approach, the later America believed in more structured method of inventing. Major companies had a separate R&D department and separate budgets were allotted to them only to invent. But this approach lacked flexibility. This approach is designed to deliver “more with more” unlike the Jugaad approach of delivering “more with less”.

From the beginning of 20th century, western firms have built large R&D departments that employ hundreds of engineers and scientists. Only a selected few were allowed into these R&D departments. The secrecy became uttermost priority. The researchers were not allowed to interact with the other staff as well to reduce the chances of leakage of information. The assumption was that to determine markets through innovation one needed two things: top of the line technology and ownership of the best intellectual property.

Western firms spent a whopping $550,000,000,000 (Rs. 27.5 lakh crore) on R&D in 2010 alone. What was the return? Nothing much compared to the amount of money spent. These costs were eventually added to the final product that was offered to the customers, increasing the selling price for a product that was not actually reinvented.

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