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What is Sales in Business? | Sales Ka Matlab Aur Importance

Sales means selling a product or service to a customer in exchange for money. When a company or an individual offers their product or service to a customer and receives money in return, it is called Sales.

➕ Simple Formula:

Sales = Product/Service + Buyer + Exchange of Money

Why is Sales Important?

  • 💰 Main source of income for any business
  • 📈 Helps in profit growth
  • 👥 Expands customer base and market reach
  • 🔄 Maintains healthy cash flow
  • 📊 Best indicator of business performance

Types of Sales

  1. Direct Sales:
    When a company or salesperson sells a product directly to the customer.
    Examples: Door-to-door sales, In-store sales, Personal selling.
  2. Indirect Sales:
    Sales through dealers, distributors, agents, or third-party platforms.
    Examples: Retailers, Franchise outlets.
  3. Online Sales:
    One of the fastest-growing sales models today via e-commerce platforms like Amazon, Flipkart, company websites, or social media channels.
  4. B2B Sales (Business to Business):
    When a business sells its product or service to another business.
  5. B2C Sales (Business to Customer):
    When a business sells directly to the end customer.

Difference Between Sales and Marketing

Marketing Sales
Attracts potential customers Converts customers into buyers
Focuses on awareness and branding Focuses on revenue and conversions
Long-term strategy Short-term, target-based strategy

👉 Marketing brings the customer in; Sales closes the deal.

How to Improve Sales – Effective Techniques

✅ Understand customer needs
✅ Build strong relationships
✅ Have deep product knowledge
✅ Practice effective communication skills
✅ Use CRM (Customer Relationship Management) tools
✅ Apply a proper Sales Funnel Strategy

How to Build a Career in Sales?

Today, there is a high demand for roles such as Sales Executives, Business Development Managers, Digital Sales Experts, etc. If you have strong communication skills, sales can be a high-growth career path.

Skills Needed for a Sales Career:

  • Communication
  • Negotiation
  • Customer Handling
  • CRM Software Knowledge
  • Follow-up Techniques

Conclusion:

Sales is the heart of any business. No business can survive without it. Whether you’re running a small shop or a large company, having strong sales skills is essential. With the right strategy and understanding of your customers, you can boost your sales multiple times and drive your business toward success.

For More – News.BadaBusiness.com

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Ather Energy IPO April 2025

Ather Energy Converts Preference Shares Into Equity: Poised for IPO in April 2025

 

Ather Energy, one of India’s leading electric vehicle (EV) startups, has recently made a strategic move by converting its preference shares into equity, a decision that is paving the way for the company’s Initial Public Offering (IPO), which is expected to launch in April 2025. This financial restructuring is part of Ather’s broader strategy to align its capital structure with public market standards, making the upcoming IPO a highly anticipated event for investors in the electric vehicle market.

What Does Converting Preference Shares Into Equity Mean?

In corporate finance, preference shares are typically issued to early investors or venture capital firms, offering them certain advantages like priority in dividend payouts and claims during liquidation. By converting these preference shares into common equity, Ather Energy is simplifying its capital structure and positioning itself to attract more institutional investors and retail investors as part of its IPO launch. This move also ensures that the company is fully aligned with public market expectations before it lists on the stock exchange.

This conversion to equity is an essential step as Ather Energy prepares for its public offering, making its financial reporting more transparent and appealing to potential investors interested in the rapidly growing electric vehicle sector.

Ather’s Growing Position in the EV Market

Founded in 2013 by IIT graduates Tarun Mehta and Swapnil Jain, Ather Energy is at the forefront of India’s electric mobility revolution. With its flagship products like the Ather 450X and the Ather 450 Plus, the company has quickly captured significant market share in India’s competitive electric two-wheeler market. Known for its innovative technology and premium design, Ather’s scooters are equipped with smart features, long battery range, and fast charging capabilities that appeal to modern consumers.

The company has also been focused on expanding its EV charging network across India, aiming to make it easier for customers to adopt electric vehicles and reduce range anxiety. As a result, Ather Energy has become a key player in India’s sustainable transportation landscape, attracting significant funding from investors like Hero MotoCorp and Accel.

Why the IPO?

The decision to go public through an IPO is a pivotal move for Ather Energy, which intends to raise substantial capital for scaling its manufacturing operations, accelerating R&D for next-generation electric vehicles, and expanding its sales and service network across India. By listing on the stock market, Ather Energy aims to enhance its brand visibility and position itself as a leader in India’s electric vehicle industry. The IPO is expected to be a major event in the Indian EV market, attracting both green investors and those looking to capitalize on the long-term growth potential of the clean energy sector.

Additionally, the funds raised will help Ather Energy explore international expansion opportunities, particularly in regions with growing demand for electric mobility, such as Europe and Southeast Asia. The capital could also help the company diversify its product portfolio to include new electric scooters and even electric cars, expanding its reach in the electric mobility market.

Investor Interest and Market Outlook

With the Indian electric vehicle market expected to grow at a rapid pace in the coming years, Ather Energy’s IPO is likely to generate significant investor interest. The Indian government’s push toward sustainable transportation, coupled with stricter emission regulations, is driving the shift toward electric mobility. As a result, companies like Ather Energy are poised for growth in the green economy, with a growing customer base looking for clean, affordable, and efficient electric vehicles.

Analysts predict that Ather Energy’s post-IPO valuation could see substantial growth, particularly if the company continues to innovate with connected vehicle technology, battery solutions, and charging infrastructure. Investors will be watching closely to see how Ather can compete with other electric vehicle startups and established players in the market, such as Ola Electric, Bajaj Auto, and TVS Motor Company.

Challenges Ahead for Ather Energy

Despite its strong position, Ather Energy faces several challenges as it scales. While the EV industry in India is growing, it still faces hurdles such as limited charging infrastructure, range anxiety, and high upfront costs for consumers. Furthermore, as more automotive giants and startups enter the electric vehicle space, Ather will need to differentiate itself through customer-centric innovation and by expanding its after-sales service offerings.

The company will also need to navigate regulatory challenges as governments around the world begin to implement more stringent regulations on electric vehicle standards and battery safety. Addressing these challenges will be key to Ather’s success post-IPO.

Conclusion

Ather Energy’s decision to convert preference shares into equity is a key step as it prepares for its IPO in April 2025. With the IPO, Ather Energy is positioning itself as a leader in the electric vehicle market, looking to raise funds for expansion and capitalize on the growing demand for electric mobility in India and abroad. Investors will be closely monitoring the company’s progress and strategies in the coming months to see how it will maintain its competitive edge in a rapidly evolving market.

As the company moves towards becoming a publicly traded entity, Ather Energy’s performance will be seen as a bellwether for the future of the electric vehicle industry and the shift toward sustainable transportation.

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Private Equity Funding

6 Things You Must Know About ESOPs Before Signing-up!

6 Things You Must Know About ESOPs before Signing-up!
6 Things You Must Know About ESOPs before Signing-up!

Have you come across employee stock ownership plans? Are you being offered one by your organization but are not sure what it is? Whichever is the case this article will tell you everything about ESOPs?

What exactly are employee stock ownership plans?

ESOP is the term that offers employees a chance to have ownership in the firm. It recognizes the best-performing employees and rewards them with an equity stake or cash based on an equity stake. If you have been offered ESOPs in your current organization, it means that the company values your contribution and they wish to make you direct custodians of the company`s long-term growth.

The definition of ESOP was originally introduced in the Companies Act, 1956, which underwent a complete change in the Companies Act, 2013.

There are two types of ESOPs- selective plans and all-employee plans. While the selective plan is only for the senior executives, all employee plans provide the same facility to all employees of the company.

Key Factors you must know before you Sign-up

a). Grant Price- One of the main benefits of getting access to ESOPs is the discount between the grant price and the fair market value, at the time of exercising ESOPs. The lower the grant price, the greater profits you can make while exercising ESOPs.

In the case of startups, the grant price is decided at the face value of the unlisted stock or as value by a Sebi-registered merchant bank. For companies that are listed, the grant price is decided based on the average stock price for a certain period before the issue date.

b). Vesting or lock-in period- ESOPs generally come with a vesting or lock-in period before you become eligible to exercise your option to purchase the stock. The structure varies, depending upon the organization and employee profile. Hence, it is essential to understand what the vesting rules are for the stocks offered to you.

Startups often offer a 1+4 vesting period, which is treated as a minimum period. It maximizes the contribution of an employee in line with the value of ESOPs offered and improves employee retention.

c). Exit Options- When an employee leave the organization before the lock-in period, they lose their right to gain ownership of the ESOPs at the discounted price. If you have vested a certain portion of the ESOPs, they will be held in trust and will be available only after maturity.

However, various myths and facts are revolving around ESOPs need to be addressed. Here are 3 facts every employer and employee must know about ESOPs:

1. ESOP is for Every Organisation

ESOPs are for every organization that is generating profit to support the annual costs of maintaining the ESOP. The profitability of the company is more important than a company`s size. In a profitable ESOP organization, the tax savings alone can be enough to offset the annual costs.

2. Offering ESOPs Does Not Effect Operations

Many company owners feel that after establishing an ESOP, they will have to consult their employees on regular basis regarding the company`s operations. However, the matter of fact is that the management remains in control of the company. Even when the ESOP owns a majority, there is no loss of control of the company.

3. Disclosure of Finances Is Not Required

An ESOP is a qualified retirement plan. Hence, the participants must be provided with the annual statement demonstrating the number of shares and the value for their benefits. No other financial disclosures are required by the organization to its employees who are share-holder.

The companies offer ESOPs to attract more qualified employees. They do it in a phased manner and provide stocks at the end of the financial year to reward their impressive performance.

Many companies startups and companies that can`t provide high packages, offer ESOPs to their employees. We hope we have shed some light on the current trending term- ESOPs.

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Private Equity Funding

How to Get Funding For Startup?

?Introduction

  • Are you unable to get funding for your startup?
  • How to get funding for startup through PE/ VC/ Angel Investor? 

Being an entrepreneur the most essential things is getting funding for your startup. 

So, let’s understand how to get funding for a startup with four significant stages as given below-

Stage #1: Start-up Stage of Business

In this stage, you arrange money from family, friends, and fools (FFF).

Friends
– They are always ready to help you and mostly become the first investor in your start-up business.

Family
– Next is your family members, who can be a valuable support to get funding for your start-up business.

Fools
– (who comes easily in your words without analyzing the future scope of your business) – If you have convincing skills you can also collect funds from such people who can easily believe in your business model.  

Stage #2: Early Stage of Business

In this stage of business, Angel Investors supports you. Angel investors refer to those investors, who invest less and gain less but they work like a necessary supplement to your business and help to move your business to the next level.  

Stage #3: Growth Stage of Business
 

Venture capital (VC) is the major source to get funding for your startup. ’VC brings seed capital to your business.’  VC invests in your idea.  

Important Facts about how to get funding your startup from VC –

  • VC investor usually invests only in Software, Technology or Biotech Business. 
  • VC starts with low investment in the business. 
  • VC focuses on Topline in P&L account, sales or big market share. 
  • VC determines the valuation of a company. He roughly calculates the potential of a company to jump from Rs. 1 crore valuation to Rs. 100 crore. And his money will become Rs. 30 crore from Rs. 30 lac.  
  • VC is a fast mover and works on valuation so he invests in the business.
  • From the very start, VC works at high risk. 
  • VC exits through another investor. 
  • VC invests in many companies and knows very well that out of 100 companies at least 10 companies will give him desirable profit so he focuses on those 10 companies, which are growing rapidly.

Stage #4: Maturity Stage of Business
 

  • Private Equity helps you get funding for a startup when your business expands on a vast level. So ’Private Equity brings a growth capital in your business.’ 
  • PE will invest in your business when he will found Profit / Compounded Annual Growth Rate (CAGR)/ Stability in your business. 
  • PE investors focus on every stable business. 
  • PE can go inside portfolio i.e. Manufacturing, Retail, IT and FMCG business because he is in the search of stability in the business.
  • PE starts with high investment. 
  • PE expects to profit from the business and focuses on the bottom line of the P&L account. 
  • PE is stable and wants both profit and expansion in parallel. 
  • PE works at low risk. 
  • PE exit through IPO.

Loan (Debt Financing) and PE (Private Equity) invests in business in the same stage, when operations, sales, and profitability of the company are stable. At this stage, you can take a loan and private equity both for the expansion of the business.
If profitability and cash flow are very good in your company, then don’t invite Private Equity. Better you take a loan on the nominal interest rate. And if you feel risk in your business also unable to pay EMI, then invite Private Equity.
This essential information about how to get funding for your startup will give immense growth in your business, and no one can stop you from reaching the top position in your industry.