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 Innovators Adapt to Survive


In times like these it is very important for a company to initially survive and then grow. Jugaad Innovators know this fact very well and act accordingly. There are four crucial ways in which they think and act flexibly in response to the environment they face.

Think the Unthinkable
Harish Hande dared to think the unthinkable and succeeded. Hande founded India’s Solar Electric Light Company (SELCO) in 1995. He started his business with very little seed money, as conservative banks were not ready to invest in an unproven business model in an unknown industry. He started with investing his own money, Rs. 1500 to be specific.

However he soon hit the wall, he soon learnt that many of his potential consumers earn less than Rs. 50 a day and could not afford an upfront payment that was required. Even if these systems somehow got installed, there was no economic way for him to maintain them for rural consumers scattered across multiple villages. To overcome these twin problems, Hande applied flexible thinking to improvise a truly creative solution that involved a network of small-scale entrepreneurs in rural communities.

These grassroots entrepreneurs would own and maintain the solar panels as well as the batteries they could charge in their stores. They would then rent out these batteries to the end consumer on pay per use basis and collect payments every day. This ingenious energy distribution model made SELCO’s solution affordable and accessible to many rural consumers.

Don’t Plan - Improve
Unlike their counterparts in Silicon Valley, Jugaar Innovators do not attempt to work everything out in advance or rely on a business plan to determine the mid to long term roadmap for their new ventures. Instead, they improvise their next course of action as circumstances change, and they do so from within a framework of deep knowledge and passion.

For instance, The Tata Nano was a brain child of Ratan Tata, who conceived it as an affordable, comfortable, and safe alternative to the two wheelers. The factory was built in Singur, West Bengal on lands acquired from farmers. However, the local farmers began protesting against the acquisition of land for the factory and threw the entire project in jeopardy. Ravi Kant, then Managing Director of Tata Motors set aside his firm’s prior manufacturing plans and swiftly shifted the production of the Nano to Sanand, in the investor-friendly state of Gujarat. For this he did not hire a management consultant, he purely followed his instinct. Tata Motors build a new factory in Sanand, Gujarat and began production of Nano in 2010.

Experiment with Multiple Ways to Reach a Goal
Unpredictability is the norm in emerging markets. Because diversity and rapid change, it is hard to predict how consumers will respond to new products and services. Jugaad Innovators may have a single mind vision but they must be willing to try different ways to reach their goal.

Dr. Mohan for instance had a vision to provide medical help in rural parts. He would send his expensive technicians from the city to work in remote villages. He found that these technicians could not adjust to the village life and they would soon leave. Learning this, he developed a training curriculum in his city hospital to impart to young men and women from villages the basic skills they need as healthcare workers. After the 3 month training they will return to their villages where they were more likely to remain and help Dr. Mohan reach his goal.

Act with Speed and Agility
In emerging markets, new threats and opportunities can emerge from out of the blue. This forces Jugaad Innovators to not only think, but also act with flexibility. Zhang, introduced in an earlier article is the CEO of Haier, a Chinese consumer durable manufacturing company that is making appliance makers like GE and Whirlpool nervous. Armed with its Value of Money strategy, Haier has grown the market by a whopping 10,000% (that is not a typo error, it is ten thousand percent) and it now controls 60% of the US market by value.

Zhang came up with a Jugaad Innovation, he radically redesigned Haier’s organization, which currently employs over fifty thousand people worldwide. Specifically, he replaced Haier’s organizational pyramid with a loosely coupled network of more than four thousand self managed, cross-functional units that interact directly with customers and autonomously made decisions. Each unit operates as an independent profit centre and is evaluated as such.

Jugaad Innovators such as these are highly adaptable. They are capable of thinking on their feet and acting with great agility.

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