Category: Startup

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Startup

Cloud Kitchen the New Saviour for Restaurant Business

Ordering food online is the new big thing entirely due to COVID-19 and several lockdowns that have kept restaurants closed and affected business too. But the takeaway meal scenario is at an all-time high, and we believe that people’s interest in ordering food is going to stay with us for long.

As per NRAI reports, over 500,000 restaurants and around 20 Lakh people employed in this sector are likely to lose business due to a pause in the restaurant business. Due to this global pandemic, people are holding on their distance from the restaurants and are now drawn towards cloud kitchen ordering facilities that cater to online delivery.

Here are the factors which make Cloud Kitchens a silver lining in the dark skies of a pandemic-

Delivery is faster
As per reports, restaurants are facing all-time lows and sales are down by 90%. Therefore, the takeaway option has become a vital source of income for the business.
Research has been conducted by the Red Seer company, according to which, the number of orders increased by 60%. Therefore, the Cloud kitchen comes as a rescue as it works best in such a scenario.

Reduction of Operational Cost
While running a restaurant, operational cost is one of the toughest factors in terms of managing a business, and in the current scenario, it’s tougher to achieve.
Cloud kitchen came to be known as a great aid in minimizing the cost of operation in terms of rent and staff. This leads to a higher number of opportunities, low investments, and chances to experiment and scale.
Cloud kitchens don’t just help in maintaining social distancing, but also turn the operational cost in half.

Technology And Food Are Becoming Friends
The advanced technology and love for food are leading to the high growth of the Indian food tech industry. Digital menus, QR code scanners, and app orders have given a new definition to the dining culture.
This not only guarantees social distancing but also assures end to end contactless dining experience in the current situation.

Chance to Bounce Back
Due to this pandemic, many small restaurants and cafes are getting closed. With the help of Cloud Kitchen, they can re-open themselves and receive a steady income.
It also allows these restaurant owners to cater to an increased delivery demand and experiment with the menu levelling up in the acting field.

New Home Dining Experience
Thanks to the huge pandemic, which has transformed people’s approach towards dining out, normal dining out now looks like this – Pre-reservation of tables, sanitizer bottle on the mesa, and servers wearing PPE kits. However, still many are trying to stay away from going out for dining.
A bunch of restaurants has come up with the idea of sending the chefs to homes with the necessary ingredients for experiencing home dining or from 5-star hotels, sending full course meals delivered at homes with the help of a cloud kitchen.

Saying bye-bye to dining out is hard, but in the current scenario, your safety should be your priority. The customer has shifted from dining out to dine-in, which is making people choose a safer alternative like a cloud kitchen. So, if you are a restaurant owner or planning to open one, Cloud Kitchen will help you in stabilizing your business.

 

 

 

 

 

 

 

 

 

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Startup

WakeFit is Back With Its ‘Sleep Internship’ for 2021; Bengaluru Based Startup to Pay Rs 1 Lakh For 9 Hours of Sleep For 100 Days

Wakefit (Photo Credits: Company website)

Bengaluru, August 31: Bengaluru based startup ‘WakeFit’ is back with its popular sleep internship, where they paid Rs 1 lakh for 9 hours of sleep for 100 days.

According to reports, the company has started the application process for 2021 and has asked for volunteers for their one of a kind internship.

The process to become an intern for this coveted role is not that easy. The applicants will have to prove to their bosses that sleeping is their topmost priority and that is what they love to do the most.

Last year, around 1.7 lakh participants had signed up, out of which only 23 interns were able to make it. The objective behind this internship is because the company plans to change the mindset towards ‘sleep’ and how it can be productive as well as healthy.

While the interns do the needful on the special mattresses provided by them, they will track the sleep patterns of each and every one of them for 100 days. During the internship period, the interns are also given guidance by sleep experts, nutritionists, fitness experts and interior designers to improve the quality of sleep in various aspects of their lifestyle.

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Startup

MSME Schemes by Modi Government for Entrepreneur Loans

You have brainstormed on the business idea, have your plan, have done your research work, and now want to start executing it. The hurdle you face at first is the lack of financial backing. One of the most necessary components of any successful start-up is the capital. We encounter entrepreneurs struggling with one obvious question, how to fund their start-up.

We are here with a solution to this problem. We realize it is tough to get a loan for a start-up, but it’s not impossible after all. With many government policies accessible to MSMEs and start-ups, you can climb this hurdle and reach your destination.

Here is a list of various Government Schemes which are surely advantageous for your start-up and can assist you to take the idea off the ground.

Stand-up India
The Stand – Up India strategy was launched in 2016 for financial assistance to SC/ST and Women entrepreneurs. It aids bank loans starting from Rs 10 Lakh to Rs 1 Crore. This option is available for domains of manufacturing, services, or trading.

One of the benefits of this scheme is that the loan amount will cover 75 percent of the total venture cost. The entrepreneur is supposed to bear a minimum of 10 percent of the total project cost as Stand – Up India Loan Scheme. Stand Up Scheme will be administered via the banks and to get the loan you will require collateral or a CGFSIL (Credit Guarantee Fund Scheme for Stand-Up India Loans)

Bank Credit Facilitation Scheme
For satisfying the credit requirements of small and medium-size industries, the NSIC has approved a memorandum of harmony with various national and private banks in India. This scheme proposes to provide various MSMEs with credit support.

This scheme offers unsecured loan facilities to the MSME business. They can avail terms of loans or working capital loans under this scheme, and it will be collateral-free or need of the third-party guarantee for availing credit.

Pradhan Mantri Mudra Yojana
Pradhan Mantri Mudra Yojana (PMMY) is contributing support to the MSME sector, which includes manufacturing units, food service, and small industries, including allied agricultural activities. PMMY scheme was launched in the year 2015, under various categories such as Shishu, Kishor, and Tarun. The maximum amount of loan that could be taken ranges from Rs 50,000 and Rs 10 lakhs.

To benefit from this scheme, one must be 18-year-old or above and have no defaulted loan repayment under their name. Any individual business owner could apply to this scheme, be it a private limited organization or a public sector company. Talking of the interest rate, it is nominal and varies from bank to bank.

Credit Guarantee Scheme (CGS)
The CSG scheme for MSMEs was established by the Government of India to provide them with collateral-free credit. One of the most exciting and essential features of this scheme is that it could be availed both by the existing startups and the ones that are still in the process.

The goal of the strategy is to decrease the stagnation of MSME growth, which has been adversely affected due to financial limitations. The lending is given to public, private, and foreign banks, with the regional rural banks.

You are required to analyze a few factors before applying for a business loan that works best for your start-up. Getting a business loan is not that difficult, but you need to do comparative research and figure out which financing option will work for you.
For the micro-enterprises, the government making all efforts to offer business loans to start-ups and MSMEs. We have mentioned a few schemes in the article, but there are more schemes launched by the Government for the benefit of the growth of the start-ups.

 

 

 

 

 

 

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Finance Startup

PM Narendra Modi Urges Startups, Entrepreneurs to ‘Team Up’ Under ‘Vocal for Local’ Theme to Make India Atma Nirbhar in Toy Manufacturing Sector

PM Narendra Modi and toy shop in India. (Photo Credit: PIB/Facebook)
PM Narendra Modi and toy shop in India. (Photo Credit: PIB/Facebook)

New Delhi, August 30: Prime Minister Narendra Modi on Sunday during his Mann Ki Baat address urged the people of the country to become self-reliant in the toy manufacturing sector across the globe. He also urged the startups ‘team up for toys’ under ‘vocal for local’ theme to increase India’s share in the global market.

Highlighting the importance for making ‘toys for the world’, PM Modi said, “There has been a rich tradition of local toys in our country. Many talented and skilled artisans possess expertise in making good toys. We have given the focus on toys in the National Education Policy too. Learning while playing, making toys etc has been made a part of the curriculum.”

Urging the startups to be ‘vocal for local’ under the Atma Nirbhat Bharat initiative, PM Modi said, “I urge our start-up to team up for toys’, this also matches our call for a vocal for local. I urge our young brothers to make games in India and also on India. The global toy industry is over Rs 7 lakh crore but India’s share is very small; will have to work to increase it.”

Citing examples of the expansion of indigenous toy-making industries in India, PM Modi said Channapatna in Ramnagaram (Karnataka), Kondaplli in Krishna (Andhra Pradesh), Thanjavur in Tamil Nadu, Dhubri in Assam, Varanasi in Uttar Pradesh are recently developing as toy clusters. Apart from this, he said, “My appeal to the young talent of the country is Make Games Games in India and Make Games of India; it is said, Let the Game Begin…so come, let us play.”

On the issue of developing online games, the Premier said, “I call upon my start-up friends and new entrepreneurs to team up for toys; let us together make toys; it is time for local toys. You also come forward, innovate and implement something; your efforts in today’s small startups will transform into global conglomerates tomorrow and make a mark for India.”

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Startup

Modi Govt Launches ‘Chunauti’- Next Generation Startup Challenge Contest, to Identify Around 300 Startups in India

Startups in India (Photo Credits: Pexels)

In a bid to give a major fillip to startups in India, the government on Friday Launched ‘Chunauti’- Next Generation Startup Challenge Contest. Under this programme, the government aims to identify around 300 startups working in identified areas and provide them seed fund of up to Rs 25 lakh among other facilities.

Union Minister for Electronics and Information Technology Ravi Shankar Prasad launched the contest to further boost startups and software products with special focus on Tier-II towns of India. The Startups can apply by visiting the website of STPI or by clicking at the link https://innovate.stpinext.in/

The government has earmarked a budget of Rs 95.03 Crore over a period of three years for this programme. It aims to identify around 300 startups working in identified areas and provide them seed fund of up to Rs 25 Lakh and other facilities.

Under this challenge, the Ministry of Electronics and IT will invite startups in the following areas of work:

  1. Edu-Tech, Agri-Tech & Fin-Tech Solutions for masses
  2. Supply Chain, Logistics & Transportation Management
  3. Infrastructure & Remote monitoring
  4. Medical Healthcare, Diagnostic, Preventive & Psychological Care
  5. Jobs & Skilling, Linguistic tools & technologies

How Will Chunauti Help?

  1. The startups selected through Chunauti will be provided various support from the Government through Software Technology Parks of India centers across India.
  2. They will get incubation facilities, mentorship, security testing facilities, access to venture capitalist funding, industry connect as well as advisories in legal, Human Resource (HR), IPR and Patent matters.
  3. Besides seed fund of up to Rs. 25 Lakh, the startups will also be provided cloud credits from leading cloud service providers.
  4. Start-ups who are in the ideation stage may be selected under the pre-incubation programme & mentored for up-to six months to evolve their business plan & solution around the proposed idea.
  5. Each intern (start-up under pre-incubation) will be paid Rs. 10,000/- per month up to a period of 6 months.

Speaking at a virtual event, Prasad said that the launch is a bold initiative under the clarion call for Atmanirbhar Bharat given by Prime Minister Narendra Modi. He urged the young, talented innovators of India to come forward and avail benefits of Chunauti challenge of Government and create new software products and app.

 

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Finance Startup

Why Do Investors Invest in Startups? Here’s How Investors Add Value to Startups and Help Entrepreneurs

Startups and Investors (Photo Credits: Pexels)

For any business to flourish, there needs to be good investment and planning that will help the firm reach its target audience and go beyond! Here’s where the role of an investor comes into picture. An investor puts capital to use for long-term gains, while an entrepreneur seeks to generate profits by using those funds. Thus an investor is a crucial aspect for any startup, who typically generates returns by deploying capital. Investing in startups is a risky proposition. However, the low requirement for overhead capital along with high upside potential, makes it lucrative for the investors to put their bets on startups.

Basically, an investor is a person that allocates capital with the expectation of a future financial return or to gain an advantage. An investor can choose to invest in-equity, debt securities, real estate, currency, commodity, token, derivatives such as put and call options, futures, etc.

According to the official website of Startup India- startupindia.gov.in, investors particularly venture capitalists (VCs) add value to startups in a lot of ways. Some of them are listed below:

  1. Stakeholder Management: The investors are the ones who manage the company board and leadership to facilitate smooth operations of the startup. Moreover, their functional experience and domain knowledge of working and investing with startups imparts vision and direction to the company.
  2. Raise Funds: Investors are best guides for the startup as they help to raise subsequent rounds of funding on the basis of stage, maturity, sector focus etc. The investors aid in networking and connection for the founders to pitch their business to other investors.
  3. Recruiting The Best to Achieve Business Goals: Finding great talent and best-fit human capital is critical for startups, especially when it comes to recruiting senior executives to manage and drive business goals. The venture capitalists, with their extensive network can help bridge the talent gap by recruiting the right set of people at the right time.
  4. Proper Marketing of the product: The venture capitalists (VCs) assist with marketing strategy for your product/service.
  5. Merger and Acquisition (M&A) Activity: VCs have their eyes and ears open to merger and acquisition opportunities in the local entrepreneurial ecosystem to enable greater value addition to the business through inorganic growth.
  6. Organizational Restructuring:As a young startup grows to an established company, they help with the right organizational structuring and introduce processes to increase capital efficiency, lower costs and scale efficiently.
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Motivational Startup Strategy

5 Common Startup Tips An Entrepreneur Shouldn’t Follow

Startups | Representational Image (Photo Credits: Pexels)

Starting a business with an innovative idea is a great deal of work. After completing lots of preparations and paperwork, an entrepreneur can pull off his/her business model. However, there will be always people to give advice that might not work for the startup to grow. Following them blindly, as those pieces of advice worked for others, can prove to be a disaster for your business.

Here are a few tips which an entrepreneur shouldn’t follow:

1) Customer is Always Right:

Many times an entrepreneur hears this line. The main issue behind the advice is customer pays and for that, an enterprise needs to listen to his/her every demand. However, it is a proven fact that no one can be an expert on everything. When conflicts arise, the best way is to clear the misunderstanding with proper communication. This will not only bring the client back but also s/he will trust you more for being truthful.

2) Raise Money and Grow as Fast as Possible:

Of course, speed is something that is needed to sustain in a competitive market. But the biggest mistake an entrepreneur makes is earning more money in a shorter period and then burning it with the same speed without even waiting for their products to fit in the market. The result — the sooner they rise, the sooner they fall. Best way to deal with this issue is to make a plan to expend the money in the right direction and identify product-market fit.

3) Choose Between Business And Family:

This is one misconception that most of the female entrepreneurs have. Instead of believing in this misconception, one should create a seamless work-life integration, where passion intersects with your personal life. The first and foremost part starts believing in yourself, and the second being surrounded yourself with people who believe in you.

4) Following Best Practices:

Walking on the path shown by others sometimes may help an entrepreneur, but not always. A path derived and designed by others, how is that going to fulfil the dreams and aspiration of a budding entrepreneur? To lead from the front, getting inspiration from someone is awesome, but one should not strict to best practices. S/he always be on a lookout to derive new ways to solve issue and progress.

5) Fake It to For Success:

Last but not least. This tip might help an entrepreneur in the initial phase but will end in a disaster. No investor, client or customer like dishonesty. This not only dampens their reputation in the market but also eradicates the trust that people have on them. Ask yourself, do you want to be called as a ‘cheater’? Think wisely before you proceed with this ‘faking’ people tip.

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Startup

Hewlett Packard Enterprise Creates Platform to Engage With Tech Startups in India, Here Are Details About Digital Catalyst Program And How to Apply

Hewlett Packard Enterprise (Photo Credits: Company website)

Bangalore, August 26: Hewlett Packard Enterprise (HPE) has created a platform to engage with tech startups in India. HPE has launched the HPE Digital Catalyst Program in partnership with angel investing platform LetsVenture. The objective is to support, innovate and identify the next generation of digital disruptors in the Indian startup ecosystem.

As part of this program, HPE will work with a selected cohort of eight enterprise-focused, growth-stage startups along three tracks – technology, go-to-market, and investment. With more than 50,000 startups, India is believed to have the third-largest startup ecosystem in the world.

“COVID-19 has acted as a catalyst in accelerating digital transformation around the world,” said Som Satsangi, managing director, Hewlett Packard Enterprise, India “At HPE, we have always been a believer in the power of partner ecosystems in driving innovation.

Here’s how to apply for the program: 

Click on the link: letsventure.com

The applications are now open and the last date for submission is September 18, 2020.

October 1, 2020, is the announcement of the cohort.

October 5, is the launch of the program.

Mid of January 2021 is the showcase and wrap up of the program

How will the startups benefit?

Startups participating in the program will receive support from HPE teams including technology mentoring by HPE’s distinguished technologists, market validation and mentoring with HPE’s sales leaders. The disruptive startups aligned with HPE’s strategy will also have the opportunity to pitch to the HPE Pathfinder program for funding.

 

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Startup

RBI Says ‘Promoting Startup And Ensuring Their Survival is Critical in Generating More Employment’

Startup
Startup (Photo Credits: Pixabay)

Mumbai, August 25: Reserve Bank of India (RBI) on Tuesday said that the promotion of young firms and startups and ensuring their survival is critical for generating more employment generation and higher productivity-led economic growth in India. RBI’s annual report for 2019-20 mentioned that it will be essential to reorient resources and policy focus in this direction.

RBI in its report mentioned that Indian IT firms are already leading globally in terms of developing applications using artificial intelligence (AI), machine learning (ML), robotics, and blockchain technology. This niche advantage needs to be leveraged to strengthen India’s position as an innovation hub, coupled with India’s ‘Start-up India’ campaign which recognises the potential of young entrepreneurs of the country.

Commenting on the economic growth revival of the country following the impact of coronavirus, RBI said that the government’s consumption will continue to support current economic demand while private consumption is expected to lead the recovery.

 

 

 

Categories
Finance MSME Startup

Ministry of MSME Issues Circular Stating RBI’s Criteria for Classification of Enterprises Under MSMED Act, 2006, Here Are the Details

Ministry of MSME
Ministry of MSME (Photo Credit: PIB)

New Delhi, August 24: The Ministry of Micro, Small and Medium and Medium Enterprises on Monday issued the Reserve Bank of India’s notification for clarifications of small and medium and medium enterprises in the country. The re-classification of MSMEs have been done by the Union government under the Micro Small and Medium Enterprises Development Act, 2006 and is effective from July 1, 2020.

Under the Gazette notification, released by the RBI and reissued by Ministry of MSMEs, several criteria have been mentioned which contains the definition of Micro, Small and Medium Enterprises as per Section 7 (I) of the MSMED Act, 2006.

Definition of MSMEs under MSMED Act:

Micro Enterprise: A firm where the investment in plant and machinery or equipment does not exceed Rs 1 crore. Also, turnover does not exceed Rs 5 crore.

Small Enterprise: A firm where the investment in plant and machinery or equipment does not exceed Rs 10 crore. Also, turnover does not exceed Rs 50 crore.

Medium Enterprise: A firm where the investment in plant and machinery or equipment does not exceed Rs 50 crore. Also, turnover does not exceed Rs 250 crore.

Apart from this, the RBI notification mentioned composite criterion of investment and turnover for the classification of MSMEs. It says that if an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category.

The notification said that all the enterprises — whose Goods and Services Tax Identification Number (GSTIN) are listed against the
same Permanent Account Number (PAN) — will be collectively treated as one enterprise. Adding more, it said that the turnover and investment figures for all of those entities will be seen together and only the aggregate values will be considered for classification of MSMEs.

Calculation of Turnover:

For the calculation of investment in plant and machinery or equipment in an enterprise, RBI said that it will link Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961. For new enterprises — whose ITR details are not available — the investment will be based on self-declaration of the promoter of the enterprise.

However, those relaxations will end after the March 31 of the financial year in which it files its first ITR. Also, purchase — invoice — the value of a plant and machinery or equipment will be taken into account excluding GST — on self-disclosure basis — if the enterprise is a new one without any ITR.

Among other details, RBI said that it will exclude exports of goods or services or both while calculating the turnover of any enterprise for MSMEs for classification. Adding more, RBI circular stated that information related with turnover and exports turnover for an enterprise will be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN. For an enterprise, who don’t have PAN, their turnover will be considered on a self-declaration basis for a period up to March 31, 2021. Following this, PAN and GSTIN will be mandatory.