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

The New Age of Frugality

Evolution is a constant process. Ages ago business was done purely on the basis of availability; the customer did not get choice of brand or alternative products. Then came the industrial way of doing business, mass production and standardization became the key element of any business. Then the marketing concepts were running the business, big brands were made, markets were researched and products customized. Now welcome to the age of Frugality.

It is getting critical to survive in the age of scarcity and the warning signs are all around. It’s worth examining the specific factors that are creating a new era of austerity in many parts of the world. Some of the major factors are:

Increasing numbers of frugal customers
The recession has made Western middle-class consumers far more cost-conscious than they were in the boom years. In India 70 crore people earn Rs. 100 or less in a day. They may be low earners but they want to gain access to the same products and services enjoyed by the 30 crore strong middle-class consumers. For example, ASSOCHAM projects that the market for consumer durables in rural India will grow 40% in 2012 due to higher disposable income among the rural consumers. This explains why Indian as well as foreign multinationals are having trouble meeting their needs.

Dwindling natural resources
Oil and water are required to produce energy and food and the resources are in short supply. Large companies are motivated to identify more effective ways of using these scarce resources. Consumers too prefer buying products that are made using eco friendly processes. More than 75% of consumers surveyed by Burson-Marsteller, mentioned that social responsibility is an important factor in their purchase decision.

Government regulations
More and more policies are being put into place to deal with increasing financial and environmental pressures. For instance, to deal with its huge budget deficit, the US government is asking big pharma companies to make more drugs available to more Americans at a lower cost. The pharma companies will not be able to deteriorate the quality because they deal into human health; the only solution is to go frugal.

Competition from low-cost rivals from emerging markets
Across industries, the Western biggies are facing competition from low-cost players from the emerging markets. For example, Western car makers are being challenged by low-cost car manufacturers from India and China who are producing affordable electric vehicles and ultra compact cars.

Rivalry from agile start-ups
Around the world, start-ups with high-value offerings for cost-conscious consumers are popping up across industries, from hospitality to consumer goods to fashion. For instance, In September 2009, the day Dan Brown’s The Lost Symbol was released; Flipkart sold more than 2000 copies of the book. This was same as any brick and mortar retail chain in India. Flipkart’s secret is its customer-centric business model which consists of cash/card payment on delivery, 30-day replacement gurantee, monthly installment plans and 24/7 customer support.

Around the world, businesses are being forced to rethink how they can address the aspirations and needs of their value-conscious customers. But doing so will not be easy.

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