Categories
MSME Technology

Paytm to Double Loan Disbursement for MSMEs From Rs 550 Crore in Last Fiscal Year to Rs 1,000 Crore by March 2021

Paytm (Photo Credits: Facebook)

New Delhi, November 9: In a major boost to the micro- and small and medium enterprises (MSMEs), financial services platform Paytm on Monday announced to double its loan disbursements for the MSMEs from Rs 550 crore in last fiscal year to Rs 1,000 crore by March 2021. The firm said that it has company expanded collateral-free loans of up to Rs 5,00,000 at a low-interest rate and unique daily EMI product customised for micro-merchants.

Paytm continues to lead the offline payments (P2M) segment with over 50 percent market share by offering all digital payment methods. Bhavesh Gupta, CEO, Paytm Lending was quoted by IANS saying that with the firm’s collateral-free instant loans, it is trying to help kirana stores and other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit.

According to a report by IANS, the company informed that the recently launched Paytm All-in-One Android POS device has enabled over two lakh MSMEs to accept all payment modes. The company said it will continue to offer collateral-free loans under the ‘Merchant Lending Programme’ in Paytm for Business app. The firm said it has digitised the entire process starting from the loan application, approval to disbursal with no additional documents required in partnership with NBFCs and banks.

Rrports inform that in the last financial year, the company processed loans worth Rs 550 crore, benefiting over a lakh merchant partner. “Going forward, we will especially focus on EDC merchants and provide higher loan amounts based on their EDC transactions,” Gupta said.

Categories
Startup

Shell India Plans to Engage With At least 30 Startups Every Year From 2020 Through Its E4 Programme, to Help Them Scale Their Business

Startup
Startup (Photo Credits: Pixabay)

Bangalore, November 9: Shell India is planning to engage with 25-30 startups every year from 2022 onwards through its E4 Programme. The objective is to help them scale their business.

According to a PTI report, Shell, under E4 Programme, incubates and supports startups via various modules of linking talent, technology, capital and know-how to accelerate India’s transition to a sustainable energy future. Over the last 3 years, the company has been able to engage with 30 startups and supported them with investments and mentoring at Shell campus located in India.

Shell E4 Programme, general manager, James Unterreiner as quoted in the PTI report said, “We have 30 start-ups now that have come through the E4 program and we’re in the process of adding 10 to 12 more that’ll start the program in January. We’re planning on ramping the program to 25 to 30 annually. So, the first couple of years have been a slow ramp to get there and now we’re at that run rate where we expect 25 to 30 annually.”

Shell has been working hard to ensure that energy startups become commercially viable, where they can engage with investors and corporates.

Categories
Finance Startup

5 Important Points To Prepare For Your Investor Meetings

Waiting to start an entrepreneurial journey, but freaking out with thoughts about how to conceptualize your business idea? Or have one great idea, but no funds to execute it? Then let us tell you that your journey has just started. Today, investors are looking forward to enduring some great business ideas and invest in those business ideas that can elevate to the next level of success.

The hard part is to pitch your idea to an investor and explain you are right concept without going in the wrong direction. Your months of research work and strategy can go wrong if you are not prepared well for the funding process. In this pandemic, many startups have gained investors in their business, and you must be thinking about what homework you need to have one good investor on board.

Here are a few tips that can help you to generate valuable partnerships or investor for your first meeting-

Make a Pitch Deck

A pitch deck is an important starting point, and your pitch deck categorically asserts the significant aspects of your business idea and product or service. Professionals always like documents and data to run through while talking about your idea. Well, the data explained, and the number shows the hard work you’ve done. It also gives the impression of preparation for the meeting.

Use graphs and pictures to present your strategies. Ensure that your slides are sharp and accurate. It also assists you in not missing valuable points to share.

Describe Your Story

Story narration plays a significant factor while making a pitch to an investor. It’s a human tendency to love stories that inspire them. A well-narrated story always brings an instant connection with a potential investor and helps you to indulge in your idea.

Make sure you display your passion and willing to risk your project. The more passion and commitment you have toward your dream, the more beneficial it will be to you.

The Team You Bring on Table

Most investors don’t generally put money just on the idea you share, but they also put money on the team that will run the concept. Therefore, when you meet, remember to introduce or discuss the team and its Essential Skills. Ensure that they can help you carry the idea to the heights you plan for them.

The main purpose here is to show that you are willing to make an effort to reach the goal you have done.

Industry Updates

For growing and staying in the industry, you should know about the competition also. To creak the opportunity, prepare the list before meeting with the investor. Then showcase how you are different from them. Also, work on a roadmap project to deal with the competition. 

Make a Financial Model

Make sure you have this discussion as your investor will be investing money in your idea until you share your plan on how you can utilize your money. Prepare the forecast of the financial model for the next 5 years. Try to give a clear picture you can provide to the investor.

Make sure, to be honest with your investors. Every investor aims to look for sincerity in the people they are backing up. We suggest you do your homework before meeting them as it will give you a good possibility of raising funds from investors.

 

Categories
Business motivation

6 Steps To Register Your Private Limited Company In India

Wish to be an entrepreneur in India? Starting this journey can be overwhelming as well as scary at the same time. There are many steps to be considered before you step up out and start your venture. So, when you are planning to plan your own business, you need to work on deciding what kind of entity it will be.

Like if you wish to own the business by yourself, then you can register your startup as a sole proprietorship. Similarly, you may register for a partnership. But if you wish to separate your liability from the company’s liability, then you should go ahead with private limited company registration.

In this structure, you need to choose the amount for taxes, paperwork, and the amount of personal liability to be distinguished clearly.

Here are a few steps that can help you to understand Private Limited Company registration processes in India.

Step 1: Get Digital Signatures (DSC)

The digital signature is one you require to file the forms for company registration. This process is online, and the forms need a digital signature. DSC is one of the mandatory for any subscriber and witness in the memorandum and articles of association. You can obtain the digital signature certificates from the government recognized certifying agencies.

If we talk about the costing of DSC depends on the certifying agency you work. You need to obtain either Class- 2 or Class- 3 categories of DSC. In this process, the person needs to present him or herself before registering authority to prove their identity.

Step 2: Apply Director Identification Numbers (DINs).

The Director’s ID number or DIN is a unique eight-digit ID number that is issued by the central government to each person who must be a director of a business or who is already a director of a business. It must be obtained by those wishing to become directors of a company. A single DIN is sufficient for an administrator in several enterprises.

Step 3: Name Approval

The company name is something that gives recognition to the brand. So, getting approval is important. For this, there are two procedures for acquiring the approval for the company name.

One process is to apply the name through INC-32 (Incorporating Company) but, in this process, only one name can be in this form. Therefore, make sure you have the proposed name should follow the name availability guidelines, existing trademarks to avoid rejection. Another process is by filing INC-32 it is a faster process than the INC-1 route.

Step 4: Information About Form INC-32

Recently, the Ministry of Company Affairs proposed Form INC-32. It is an explained pro forma for incorporating a company electronically.

It solves, the three purposes with the benefit provided in a single application:

  • Application for allotment of DIN (Director Identification Number)
  • Reservation of company name
  • Incorporation of a new company

Step 5: Information About INC-33 and INC-34

Both forms have been introduced, to facilitate the Indian company registration process. INC- 33 refers to an electronic Memorandum of Association, and INC- 34 is electronic Articles of Association

The memorandum describes the company charter, while the bylaws include the company’s internal rules and bylaws. Before the completion of both forms physically and now, you can complete these forms online and must include digitally signed subscribers to the memo and statuses.

Step 6: PAN and TAN Application

When you apply a single Form INC-32, you may submit an application for the company’s NAP and TAN uses Forms 49A for the NAP and 49B for the TAN. Once you have submitted Form INC-32, you can automatically generate the form(s). After forms download, please remember to attach a digital signature and upload it to the ACM portal. Upon completion of all details, the registration will get approved by the MCO, and a Corporate Identity Number (CIN) is issued. It is possible to follow up on-line through the GAC portal.

These six steps will help you to register yourself to set up a Private Limited Company in India.  Once you intend to register your company, you can get all information at the Ministry of Corporate Affairs online.

 

Categories
MSME Startup

Gift Shops: 5 Tips to Follow to Revive Your Gift Shop Business Amid COVID-19 Pandemic

Gift shop Business
Gift shop Business (Photo Credits: Flickr)

Mumbai, November 6: Coronavirus pandemic affected every business across the world. From job losses to pink slips, majority of the companies have suffered.  It has been more difficult for small businesses, like gift shops, who had to remain shut for several months in the middle of the lockdown.

Gift shop business is a revenue-generating venture, provided you keep a few things in mind. Across the globe, in the past decade, this business has witnessed a huge growth because of the increase in application for inventive products and extension in the customer base.

Now with the ease in the restrictions, and with the economy opening up, these businesses have also started operating.

Here are 5 tips which you can follow to make your business successful: 

Have Strong Online Presence: In today’s age, there is no other alternative, but you need to have a strong online presence. From having an e-commerce website to allowing customers to discover your brand on social media platforms, you should never miss this opportunity.

Spend your funds wisely: After remaining shut for several months, it is very important to use your resources and funds wisely.

Choose Your Niche, Be Original: Remember there are thousands of gift shops in the market. Try and understand how your shop will be different from the rest. It is very important to be original in your idea in order to stand out from the clutter.

Pay attention to hygiene: Since you are opening the shop in the middle of the pandemic. You need to take care of the hygiene and pay other attention to precautions that need to be maintained amid the pandemic.

Make your shop look attractive: Being a gift shop, you will have different items to showcase. Design your shop in such a manner so that you can manage to attract the attention of the audience. Your shop may not be big in terms of the space, but utilise it with proper planning without making it look cluttered.

 

Categories
MSME

MSMEs to Get a Boost As D&B India and NSIC Ink Pact to Create Ecosystem for Promoting and Fostering Growth of Micro, Small & Medium Businesses

A worker at an MSME firm
A worker at an MSME firm. | Representative image.

New Delhi, November 5: In a bid to foster the growth of micro, small and medium enterprises, Dun & Bradstreet Information Services India has signed an agreement with the National Small Industries Corporation (NSIC). The pact aims to create an ecosystem for promoting, aiding and fostering the growth of MSMEs. A statement said, the partnership between the two will help MSMEs in India to increase their visibility, expand access to global markets, find potential customers, uncover new suppliers and channel partners, manage risk and identify growth opportunities.

With the new pact, MSMEs will also be able to leverage platforms like D&B Credit to make credit decisions, monitor the financial health of customers, assess credit risk and identify portfolio trends. The partnership will provide Indian MSMEs with access to Dun & Bradstreet’s suite of data and analytics solutions via NSIC’s countrywide network of offices and technical centres.

Julian Prower, chairman of the board and MD, Dun & Bradstreet India said, “By working with the NSIC, we expect to play a pivotal role in enabling the eco-system required to accelerate MSME growth and help achieve the government GDP contribution target of 50 percent of GDP by FY 2025.” Dun & Bradstreet India will also partner with NSIC to provide customized training and certification programs to help MSMEs better navigate the ever-changing global business environment, the release stated.

Categories
Startup

What is the Difference Between a Startup And Small Business Venture? Here Are 3 Key Differences

Startup Vs Small Business Venture
Representational Image (Photo Credits: Pixabay)

Bangalore, November 5: Startup is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable economic model. A startup is often confused with a small business, however, there are key differences which one needs to understand in how they function.

Amid the tough market conditions, it is difficult to run a small business and more difficult is to see a startup grow.

Growth Plans

Startups are different from small ventures mainly because they are designed to grow fast on limited resources internally. Startups have an essential need for rapid growth.

Small businesses also seek growth, but more conservative growth which includes creating reliable, long-term income streams.

Funding:

Apart from having different growth strategies, startups seek financial investment differently than most small businesses. Startups rely on capital that comes by means of angel investors or venture capital firms. On the other hand, small business ventures may tend to rely on loans and grants from financial institutions.

A startup requires constant investment at every stage of their growth, which will help them to reach the next level. This is the reason, why user number metrics are so important to startups as they indicate what percentage of their target market has been achieved.

Risk-Taking Capability

Compared to small business ventures, startups have an aggressive risk-taking capability. A startup undertakes several risks like- product risk, market risk and financial risk. For a startup, it is also very important to know their customer and why, how and where they buy related products is arguably the most important risk factor to assess before launching the product. For startups, the risk is mainly tougher because the product is new and it will be a different experience for the public.

Small businesses also take risks, but they are usually of a different nature. The time to prove their success in the market is usually more.

Categories
Technology

Facebook Rolls Out ‘SMB Guide’ to Help 9 Million Indian SMBs in Building Digital Presence and Reaching Potential Customers Online

Facebook (Photo Credits: Pexels)

New Delhi, November 4: With an aim to help the micro and small businesses in India to limp back to normalcy, social media giant Facebook on Wednesday rolled out a dedicated offline to online ‘SMB Guide’. In order to help these businesses recover from the pandemic-induced crisis, Facebook has come up with new resources to help make this journey frictionless for them. Reports inform that this offline to online SMB Guide for India is free and publicly available. However, the social networking giant is also proactively reaching out to nine million small businesses across the country to ensure it reaches the businesses who need it the most.

The SMB Guide is available in Hindi as well as in English in order to support a large number of businesses across distinct geographies. Archana Vohra, Director Small and Medium Businesses, Facebook India, said in a statement said that the new resources are geared to helping the smallest of businesses across geographies to move from offline to online with minimum effort. “”While the offline to online SMB Guide is publicly available, we are proactively reaching out to 9 million small businesses across India to ensure timely support”, she said.

The SMB Guide:

According to a report by IANS, the SMB Guide has been designed to provide a step-by-step direction on how the smallest of businesses can build a digital presence quickly, and reach potential customers online. The guide covers Facebook, Instagram and WhatsApp, and key themes such as building an online presence, mobile storytelling, social media advertising, and creative and performance strategies.

The social networking giant said it is also rolling out the next leg of ‘Boost with Facebook’, a skilling and learning programme for scaling young businesses. The programme went virtual earlier this year, and is now going vernacular, and will be delivered primarily in Hindi through Facebook Live sessions. One of the key themes discussed during Boost with Facebook will be how small businesses can build for Diwali and the festive season beyond it, the company said.

Categories
MSME

Good News! MSME Business Activity Returning to Near-Normal Levels, Tier 2 & 3 Witness Faster Recovery Than Tier 1 Cities

Startup Growth
Startup Growth (Photo Credits: Pixabay)

Mumbai, November 4: It comes as a ray of hope amid the pandemic that the business activity of the micro, small and medium enterprises is returning to near-normal levels. According to a report published on PTI, the SMEs are rapidly developing a digital business tool to increase efficiency and growth.

The positive sign is that out of 36, 16 states and Union territories have witnessed business activity levels higher than pre-covid times. The data gathered by startup OkCredit further pointed out that business activity in Karnataka, Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu and Delhi are trending at 90-95 per cent of their pre-COVID levels.

A similar positive trend is being witnessed in Uttar Pradesh, Madhya Pradesh, Chhattishgarh, Odisha, Jharkhand, Uttarakhand, Bihar, Haryana, Assam, Rajasthan, and Himachal Pradesh.

The report further mentions that businesses activity in tier 2 and tier 3 cities are witnessing faster recovery than tier 1 cities. This has been attributed to the rise in micro-retail players increasingly taking up digital bookkeeping solutions.

 

Categories
Startup

Startups in India: 6 Women-Led Startups Win COVID-19 Shri Shakti Challenge Organised by MyGov in Collaboration With UN Women

Startup
Startup (Photo Credits: Pixabay)

In a major boost to women-led startups in India, six startups by female entrepreneurs have won COVID-19 Shri Shakti Challenge organized by MyGov in collaboration with UN Women. MyGov in collaboration with UN Women, launched the COVID-19 Shri Shakti Challenge in April 2020 to encourage and involve women led startups to come up with innovative solutions that can help in the fight against COVID19 or solve problems that impact a large number of women.

After thorough screening, 25 startups were shortlisted for presentations to the Jury which included Debjani Ghosh, President NASSCOM, Rohini Srivathsa, National Technology Officer (CTO) Microsoft India, Dr R Ramanan, MD Atal Innovation Mission, Nishtha Satyam, Dy Country representative, UN Women India and Abhishek Singh, CEO MyGov. In addition to the earlier announced reward of Rs 5 lakhs for the top 3 winners, UN Women was generous enough to agree to reward Rs 2 lakhs each to the 3 startups chosen for their promising solutions.

Top 3 Female Entrepreneurs Who Won Are:

  1. Dr P Gayatri Hela is the founder of Bengaluru-based Resada Lifesciences Private Limited that designs and develops home and agricultural-based products using plant extracts instead of synthetic chemicals. As per Gayatri, germs and other bacteria/viruses become resistant to chemicals over time, whereas nature always has a way of fighting back against these organisms. For Shri Shakti Challenge, Gayatri submittedherinnovative product which is a non-alcoholic hand sanitizer that is  relevant not only for COVID- 19 but also for other infections. The idea had come to her in 2017, when she was battling the SARS pandemic with her with her one-year old daughter.
  2. Romita Ghosh,a cancer survivor, is the founder of Shimla-based iHeal HealthTech Private Limited which is a healthcare start-up that has been at the forefront of the fight against COVID and has been providing PPE kits to hospitals. Romita has also built a Made in India UV sterilization box for safe reuse of PPEs and masks that can help reduce costs for hospitals and other service providers.
  3. Dr Anjana Ramkumar and Dr Anushka Ashokan are the product manager and co-founder of Kerala based Thanmatra Innovations Private Limited have come up with the innovative solution of an anti-microbial solution that could be sprayed into handkerchiefs or dupattas for making them safe to be used as Face Masks. This also made it easier to protect kids. Their innovation is simple and scalable and can help convert any piece of cloth to anti-viral mask within minutes by a simple process of spraying and drying with their unique formulation.

Top 3 Startups identified as‘Promising Solutions’are:

  1. Vasanthi Palanivel, is the CEO & Co-Founder of Bengaluru-based Seragen BioTherapeutics Private Limited.As a scientist and researcher, she studied the symptoms and impacts of the virus and realized that the lungs were one of the worst infected organs in COVID and she has developed a plasma solution to treat respiratory distress due to COVID-19.
  2. Shivi Kapil is the cofounder of Bengaluru-based Empathy Design Labsthat focuses on healthcare, and took the pandemic as an opportunity to design solutions for pregnant women who could not go to the hospital due to risk of infection. Shehas designed Kriya, a wearable device for daily monitoring of pregnancy. The IoT-embedded product provides alerts and suggestions to expecting parents for timely action.
  3. Jaya Parashar and Ankita Parashar – a mother daughter duo are the founder and co-founder of STREAM Minds, and ed-tech company that works on promoting Science, Technology, Reading/Writing, Arts, and Mathematics education among school children across India. They have designed ‘Dobot’, a fully automated robot which acts as an in-house delivery assistant to make hospitals and healthcare clinics safe from the risks of COVID19.

MyGov congratulated the winners of Shri Shakti Challenge and hope that the solutions developed by them mature into full-blown products, and can scale up into robust solutions that help in our fight against COVID19; and of course also help address challenges facing women. All the winners and the participants of Shri Shakti Challenge are true testimony to the talent pool that exists in India and this challenge will go a long way in promoting women entrepreneurship in India.

All 25 selected startups presented their solutions to the Jury which evaluated the solutions proposed by the startups on the parameters that included innovation, usability, relevance and impact of their idea on the society. After thorough review, 11 finalists were chosen for the next stage. All the 11 selected startups were provided a prize money of Rs 75,000 each to further develop their ideas.

After giving time to the 11 Startups to develop the solutions, the final presentations were again made to the Jury on October 27, 2020. The quality of the solutions presented was excellent and the Jury had a tough time evaluating them. After intense discussions and deliberations, the Jury selected top 3 entries as winners, and in view of the high quality of solutions presented decided to recognize 3 additional entries as ‘Promising Solutions’.

This was a unique challenge hosted on the Innovate platform of MyGov that called for applications from women led startups as well as startups who have solutions that address issues faced by a larger number of women. The Challenge was implemented in two stages: Ideation stage and Proof of Concept (PoC) Stage. The challenge received an overwhelming response with a total of 1265 entries, from across the nation.

Mentorship sessions were organized to enable graduation of the ideas into Proof of Concepts that can be scaled up. These sessions were topics that included Business Modelling, Financial Modelling, Legal Certifications, Digital Marketing, Product Design, Art of making Pitch and were conducted with the support of NASSCOM, Industry Experts, and the Atal Incubation Centre  at the Centre for Cellular and Molecular Biology.