<ul><li>Regulators in <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> are mostly talking about cryptocurrencies and NFTs, but a lot more has to be done.</li><li>Countries like the US, UK, Canada have tweaked existing laws to accommodate <keyword id="2721952" type="General" weightage="20" keywordseo="crypto" source="Orion">crypto</keyword> and web3.</li><li>Web3 founders in the country are already leaving India.</li></ul>Despite being in the works for over two years, India’s crypto regulations are barely scratching the surface for what the third generation of the Internet, or web3, will need. According to experts, India’s regulators should follow global examples set by countries like the US and the European Union (EU); to effectively regulate cryptocurrencies and web3 projects in the country. <keyword id="2715428" type="General" weightage="20" keywordseo="ajeet-khurana" source="Orion">Ajeet Khurana</keyword>, a noted crypto advisor, believes that three main ways have been explored globally. At a <a href="https://twitter.com/BiIndia/status/1506637849864462341?s=20&amp;t=Fq8EyE7kSnB6W8lgcw_Jrg">Twitter Spaces </a>conversation held by Business Insider India, Khurana said that coming up with an overarching crypto bill may not be the only route the country can take. He also noted that India has already followed examples set by countries like the US, Australia, UK, Canada, and Singapore, which has tweaked existing regulations to accommodate cryptocurrencies. <div type="twitter" handle="BiIndia" handlename="Business Insider India🇮🇳" image="http://pbs.twimg.com/profile_images/1232926719016718336/sfffJHNV_normal.jpg" favoritecount="11" retweetcount="6" status=".@AjeetK, @tamarincrypto and @Aritra_7 of @WazirXIndia take a closer look at the different ways web 3.0 is redefini… https://t.co/hQt4WZGQ2O" createdat="1648045430000" id="1506637849864462341"></div> At the Union Budget 2022 last month, finance minister <keyword id="129243" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> brought crypto trading under the ambit of existing taxation rules in India instead of announcing a full-fledged crypto bill, which has been in the works for the past year or so. <div type="ExtQuote" text="So, if we could tweak our SEBI Act, RBI Act, FEMA, and a few others…frankly, we are a fully regulated country, and I think that may be the best way to go because large economies around the world have done that." auname="Ajeet Khurana, Crypto Expert, told Business Insider."></div><cmsannotation type="cmsannotation" annotationid="The need to recognise the potential of web 3.0" comment="subhead" text="The need to recognise the potential of web 3.0">The need to recognise the potential of <keyword id="692030" type="General" weightage="20" keywordseo="web-3-0" source="Orion">web 3.0</keyword></cmsannotation> Aritra Sarkhel, Director of Public Policy at <keyword id="6672551" type="General" weightage="20" keywordseo="wazirx" source="Orion">WazirX</keyword>, leading crypto exchange in the country, added that different government departments are still unclear on how they will deal with the industry. He noted that various government departments have different versions, and the conversation has moved from being about crypto only to non-fungible tokens (NFTs). However, lawmakers seem to have failed to recognize the complete scope that web3 has. <cmsannotation type="cmsannotation" annotationid="wazirx" comment="wazirx" text="wazirx">wazirx</cmsannotation> According to Tamar Menteshashvili – who leads ecosystem growth at Solana Labs, which runs the Solana platform – many web3 company founders from India have been moving to Dubai recently, which is a “strong signal” that “something is not going as well as it should be”. <div type="ExtQuote" text="Taking the example of more crypto-friendly regulations and understanding the opportunity that web3 is bringing to the country is super important while thinking about the policy." auname="Tamar Menteshashvili, Ecosystem Growth at Solana Labs told Business Insider."></div> India is one of the fastest-growing internet consumer markets and has one of the most flourishing pools of start-ups and developers across the world. Web 3.0 is the next internet revolution and has been gaining ground steadily. In fact, a report from the US India Strategic Partnership Forum (USISPF) and Cross Tower stated that Web 3.0 and digital assets could add $1.1 trillion to India’s GDP over the next decade. Sarkhel said that the industry needs clarity around regulations so that 18-19-year-old founders don’t get confused and move out of the country to avoid future repercussions. “Basically, you don’t want another brain drain to happen. Let’s build together,” he told Business Insider during the Twitter Spaces session. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/cypher-capital-launches-100-million-blockchain-fund-with-an-aim-to-invest-40-of-it-in-crypto-startups-in-india/articleshow/90400157.cms">Cypher Capital launches $100 million blockchain fund, with an aim to invest 40% of it in crypto startups in India</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/patanjalis-ruchi-soya-will-go-for-fpo-tomorrow-check-out-price-band-gmp-and-other-information-you-need-to-know/articleshow/90394179.cms">Ruchi Soya’s FPO opens tomorrow — price band, GMP and more</a>

India’s crypto regulations don’t recognize the full scope of web3, say experts

<ul><li>Latin America will be its second biggest market after Asia, the company’s CEO Rajdip Kumar Gupta said.</li><li>The company raised ₹867.49 crore last month and 60% of this capital will be used to acquire businesses and grow inorganically.</li><li>The Mumbai-based company recently announced the acquisition of a local player Masivian in Latin America for $47.5 million.</li></ul><keyword id="3519758" type="General" weightage="20" keywordseo="route-mobile" source="Orion">Route Mobile</keyword>, a publicly listed communications platform-as-a-service (CPaaS) provider, is eyeing aggressive expansion into Latin America and Middle East. Route Mobile’s founder and Group chief executive (CEO) Rajdip Kumar Gupta told Business Insider that Latin America will be its second biggest market after Asia and would be a major contributor to its revenue as well. “If we have a larger population in any country, this means more devices are going to be used in those countries. If we talk about the digital communication used in Sweden as compared to India, India is far superior because of the population. Whether we are an emerging country or not, that’s a secondary issue. After Asia and Africa, the next big market is Latin America,” Gupta added. The Mumbai-based company recently announced the acquisition of a local player Masivian in Latin America for $47.5 million. Route Mobile has bought 100% shares in the company. Masivian is one of the leading cloud communication platform service providers to enterprises, over-the-top (OTT) platforms and mobile network operators in the region. According to its website, Masivian’s clientele includes Google, Visa, IBM and Microsoft. It also serves popular national banks of the region like Chile-based Banco Falabella and Puerto Rico-based Banco Popular, among others. Why is Route Mobile betting on Latin America? Route Mobile itself works with big enterprises like Airtel, Emirates, Facebook, Google, ICICI Bank, Microsoft, Telegram, WhatsApp and others in the market it serves in. The company has its operations across North America, the United Kingdom, Continental Europe, Asia Pacific, Middle East and Africa. The company provides mobile communication solutions such as text messaging, voice calling, number lookups, firewall, email and other related services. <div type="image" title="Route Mobile is eyeing the Latin America market to bump up its global presence" msid="88089583" hostid="261"></div> The acquisition of Masivian has helped Route Mobile cover two large markets of Latin America — Colombia and Peru. The company also had a presence in Chile. This acquisition has also opened doors for Route Mobile to enter Brazil organically as well. He also highlighted that Latin America is divided into two parts — Portuguese speaking countries and Spanish speaking countries. The acquisition has helped them cover the Spanish-speaking countries in one go. The company just needs to expand into Brazil and Argentina to cover Latin America as a whole. Route aims to go big in voice communication, blockchain and more Seventeen-year-old Route Mobile — which sits on a market cap of ₹11,267 crore as on December 3 — raised ₹867.49 crore last month via qualified institutional placement (QIP) from both international and existing investors. Nearly 60% of this capital would go into acquiring new businesses so that Route Mobile could expand its global footprint. “Right now we haven't identified anything,but right now we are looking at something in voice [communication] business, a part of CPaaS offering, where we don’t have a solid platform as of now,” Gupta added. The rest of the capital will be used to grow organically by building new products and hiring people across the globe. The company will be looking to grow organically in the internet of things and blockchain technology as these technologies are still in their nascent stages. “We want to make sure that we start building from now, so whenever the market grows, we get an early mover advantage,” he added. <div type="image" title="Route Mobile is eyeing the Latin America market to bump up its global presence" msid="88089598" hostid="261"></div> Coming to the Middle East market, Route Mobile bought a 49% stake in Kuwait-based Interteleco in October to strengthen its operations in the region. Gupta told Business Insider that they have always been stable in the Middle East and that is where they started their business. “In the Middle East, especially in the UAE, the major business is tourism and digital marketing is the key aspect of their growth story,” he added. He emphasised that UAE was among their biggest revenue generators and they wanted to expand into other Gulf Cooperation Council (GCC) regions. Route Mobile has set up an office in Saudi Arabia, Qatar and other regions. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/jet-airways-stock-flies-on-news-that-the-airline-is-in-talks-to-buy-100-aircraft-ahead-of-its-comeback/articleshow/88067644.cms">Jet Airways stock flies on news that the airline is in talks to buy 100 aircraft ahead of its comeback</a> <a href="https://www.businessinsider.in/stock-market/news/poor-demand-for-star-healths-ipo-forces-investment-bankers-to-cut-down-on-promoter-offerings/articleshow/88065207.cms">Poor demand for Star Health’s IPO forces investment bankers to cut down on promoter offerings; GMP at ₹10 discount</a> <a href="https://www.businessinsider.in/cryptocurrency/news/no-crypto-ban-in-india-sebi-will-reportedly-be-pulled-in-to-regulate-the-sector/articleshow/88065166.cms">No crypto ban in India — SEBI will reportedly be pulled in to regulate the sector</a>

Route Mobile CEO explains how he is picking the next market for acquisitions

<ul><li>Shares of the Mukesh Ambani owned Reliance Industries fell sharply today by as much as 4% in reaction to its earnings results on Friday evening.</li><li>The company had reported a weaker than expected net profit with a fall in profitability for the first time in FY22.</li><li>Indian benchmark indices, Sensex and Nifty 50, also remain in a weak spot as there was a huge sell-off in shares of heavyweight Reliance Industries.</li></ul>Shares of oil-to-telecom conglomerate company owned by Mukesh Ambani were among the biggest losers on the street and one of the reason benchmark indices was still in red. Reliance Industries <a href="https://www.businessinsider.in/business/corporates/news/reliance-industries-first-indian-company-to-near-100-billion-in-revenue/articleshow/91381614.cms">reported </a>a weaker than expected net profit and also reported a fall in profitability for the first time in FY22. Indian benchmark indices, Sensex and Nifty 50 remained in a weak spot as there was a huge sell-off in shares of heavyweight Reliance Industries amid poor market conditions. The company posted a net profit of ₹18,000 crore with a revenue of ₹2.11 lakh crore in the March quarter – a decline of 12.25% in profit sequentially, while revenue is up 10.77%. Analysts expected a growth of 4.7% in profit and 14.5% in revenue. Consolidated profit after tax missed the street’s estimate by 4% year-on-year and 3% quarter-on-quarter due to lower other income and miss in retail business, say analysts at Sharekhan. <div type="image" title="ril profit 2" height="900" width="1200" msid="91433413" hostid="261"></div>Meanwhile, analysts at Kotak Institutional Equities feel rise in net debt levels, elevated capex and negative FCF (free cash flow) were a tad disappointing yet again in the March quarter earnings of the company. Quarterly performance of Reliance Retail in Jan-Mar was disappointing The latest report by Sharekhan analysing the company’s March quarter earnings states that the retail revenues were muted and remained flat on quarter versus expectation of decent growth in Jan-Mar. Further, analysts feel an IPO of the company’s consumer business would give better returns to investors over coming years and unlock value in the digital and retail business of the firm. Reliance Retail’s net profit declined by ₹120 crore in the January-March quarter of 2022, on a quarterly basis. The company reported a net profit of ₹2,139 crore in Q4 compared to ₹2,239 crore in the previous quarter. Even on a year-on-year basis, Reliance Retail’s net profit declined. Analysts at YES Securities believe <keyword id="6484187" type="General" weightage="20" keywordseo="ril" source="Orion">RIL</keyword>’s retail business could be impacted by the current inflationary environment in FY23. The report adds that the petrochemical environment appears weak primarily due to tepid Chinese demand and firmer naphtha prices. RIL exports Naphtha that typically is consumed in steam crackers for petrochemical manufacturing. Decline in subscribers at Reliance Jio remains a key negative, say analysts This is the third consecutive quarter of <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-results-q4-fy22-profit-revenue-subscriber-growth/articleshow/91374478.cms">subscriber loss </a>for Reliance Jio – it has lost over 30 million subscribers over the last three quarters. Overall, for the financial year 2021-22, Jio’s subscriber numbers are down by 16 million. Slower-than-expected subscriber additions and ramp-up of broadband services, remains a key risk for the company, says analysts at Sharekhan. The telecom segment posted 14% growth in its net profit between January and March 2022, which is Jio’s <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-results-q4-fy22-profit-revenue-subscriber-growth/articleshow/91374478.cms">strongest profit</a> growth in five quarters, but still below <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-could-post-a-blockbuster-5000-crore-profit-in-the-march-quarter-say-analysts/articleshow/91316654.cms">analyst expectations of ₹5,000 crore quarterly profit</a>. On the bright side, analysys believe that the company's ARPU (average revenue per user) could improve further in FY23. As of 11:34 a.m, shares of the company were down 2.88% at ₹2,545 per share. Going ahead, analysts expect shares to increase by up to 27%. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage firm </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sharekhan </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,050 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">YES Securities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,840 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Securities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,050 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Morgan Stanley </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,253 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jefferies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,950 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CLSA </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,955 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Goldman Sachs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,200 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/snacks-health-bills-electricity-bills-and-more-will-add-to-your-chunkier-home-loan-emis/articleshow/91429752.cms">Snacks, health bills, electricity bills and more will add to your chunkier home loan EMIs</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/last-day-to-subscribe-to-lic-ipo-gmp-drops-to-60/articleshow/91424705.cms">Last day to subscribe to LIC IPO, GMP drops to ₹60</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/campus-activewear-shares-debuts-at-21-premium-despite-weak-market-trends/articleshow/91430347.cms">Campus Activewear shares debuts at 21% premium despite weak market trends</a>

RIL tumbles nearly 4% on weaker than expected profits, slowdown in retail business and decline in Jio subscriber additions

<ul><li> Eight-year old <keyword id="2589674" type="General" weightage="20" keywordseo="sheroes" source="Orion">Sheroes</keyword> started lending, only to women, via its digital bank called <keyword id="12806215" type="General" weightage="20" keywordseo="mahila-money" source="Orion">Mahila Money</keyword> six months ago.</li><li>Chahal wants to scale this venture to 10 million more women by 2022.</li><li>Chahal recounts the challenges and how she plans to overcome them in an exclusive interview with Business Insider.</li><li>Check out our <a href="https://www.businessinsider.in/bi-newsletter">weekly explainers</a> on the hottest topics and <a href="https://www.businessinsider.in/newsletters_signup.cms">sign up</a> if you like them.</li></ul>Delhi-based women-only social network Sheroes is now expecting to go big in the lending space by providing small business loans to female micro-entrepreneurs in India. The eight-year-old company set up a new neobank, named Mahila Money, six months ago to offer loans as well as financial services to women. It is a separate entity, with a separate team, to scale it faster with sharp focus. The company currently offers small loans at an average ticket size of ₹50,000 and it goes up to ₹500,000 to yoga coaches, tuition teachers, social commerce sellers, beauty parlour owners, and boutiques owners. Simply put, Neobanks are digital only banks, without any physical branches. You can read more about it <a href="https://www.businessinsider.com/neobank-threat-against-incumbent-banks-growing-2021-9">here</a>. While founder Sairee Chahal started out with some ambitious goals, Mahila Money has managed to lend to 200 women in the last quarter. She noted that the people borrowing on Sheroes' Mahila Money have never borrowed capital from the formal market before and that is majorly due to lack of options available for female entrepreneurs. One of the biggest hurdles in the segment has been the lack of trust. “Trust is a major, major thing. No woman, no one wants somebody landing up on their doorstep or somebody calling their family or relatives to get loan recovery” Chahal said in an interview. The whole space for small loans has been stained by the unregulated players, many of whom act unethically to recover their loans. An issue that even the Reserve Bank of India (RBI) has been <a href="https://www.businessinsider.in/finance/banks/news/rbi-warns-people-against-unauthorized-digital-lending-apps-that-promise-quick-loans/articleshow/79919474.cms">worried about</a>. Even those who need loans have been scarred and many a time wary of even the legitimate players like Sheroes. But trust can get you a foot in the door. There are many other challenges along the way. The traditional lending system leaves out a major chunk of the Indian population who do not have a credit score. Women were at the deep end of this pool since they neither had any asset or credit score to borrow capital on. Women have to rely on other male members of the family to finish up the loan process since they don’t own any assets under their name and it is quite discouraging for them, Chalal explained. To beat this challenge, and to identify women who can likely repay loans, Mahila Money looks at 100 new data points including their understanding of the business, behavioral data, social data, transaction data, and social capital among others, Chahal added. <div type="image" title="After six months of lending, Sheroes realizes how big of a task it is" msid="88476585" hostid="261"></div> It is still a tough task. So, Chahal has partnered with organisations that work closely with these women. In order to build that trust Mahila Money has partnered with 60 women-focused organizations — Empower Foundation, Udyam Foundation, Seva Foundation, beauty parlour associations —, which have close to 1 million members. These organizations redirect their members to Mahila Money at the time of need and help in the underwriting process as well. The company aims to connect with 3000-4000 such organisations, with close to 10 million members, by the end of 2021. This is in addition to the 22 million women that are registered on the Sheroes app for employment, entrepreneurship or simply to engage in a community. This is still a huge opportunity. According to a <a href="https://www.indiaspend.com/uploads/2021/02/20/file_upload-417397.pdf">report</a> by International Finance Corporation, a member of the World Bank, India ranks third-highest in entrepreneurship gender gap across the world and the lack of capital is a major reason behind it. Another report<a href="https://www.mckinsey.com/featured-insights/gender-equality/the-power-of-parity-advancing-womens-equality-in-india-2018"> published</a> by Mckinsey Global Institute in 2018 added that India can increase its gross domestic product (GDP) upto 60% by 2025 through equal participation of women in the labor force. This would need an additional $700 million to $7.9 trillion. Chahal wants to scale this venture to 10 million more women by 2022, from the current customer base of 200. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/shares-of-data-patterns-list-at-864-while-the-shares-were-allotted-at-585per-share/articleshow/88467078.cms" data-type="tilCustomLink">Data Patterns beats GMP and lists at 40% premium</a> <a href="https://www.businessinsider.in/stock-market/news/data-patterns-lampt-finance-indigo-spicejet-and-other-stocks-to-watch-out-for-on-december-24/slidelist/88465282.cms">Data Patterns, L&amp;T Finance, IndiGo, SpiceJet and other stocks to watch out for on December 24</a> <a href="https://www.businessinsider.in/stock-market/news/ipo-bound-xiaomi-phone-maker-in-india-faces-tough-challenge-from-a-prowling-samsung/articleshow/88450732.cms">IPO-bound Xiaomi phone maker in India faces tough challenge from a prowling Samsung</a>

INTERVIEW: After six months of lending, Sheroes founder explains how tough it is

<ul><li>If the pandemic has brought one certain change in the consumer mindsets, it is the move towards personal hygiene and wellness.</li><li>On the back of e-commerce and growing awareness about wellness, the men’s grooming category has seen unprecedented growth in the last few years.</li><li>To further build this category, <keyword id="3508584" type="General" weightage="20" keywordseo="the-man-company" source="Orion">The Man Company</keyword> has launched <keyword id="13237965" type="General" weightage="20" keywordseo="MinStrips" source="Orion">MinStrips</keyword>, rapid dissolving tongue vitamin strips.</li><li><keyword id="674163" type="General" weightage="20" keywordseo="Hitesh-Dhingra" source="Orion">Hitesh Dhingra</keyword>, Founder, The Man Company talks to us about the brand’s forays into the well-being category, brand strategy and growth vision for MinStrips, consumer insights and preferences that led to the innovation and larger vision.</li></ul>Around a decade ago, the male grooming industry was almost non-existent in our country. India only had razors, shaving cream and after-shave lotions for men and those who did care about their skin underneath their beards or mustaches, would quietly use the products available for women. India’s men’s grooming market, thankfully, has come a long way in the last few years, moving beyond shaving and deodorant products. This space has also attracted large FMCG brands such as Reckitt, which invested about Rs 45 crore in the Bombay Shaving Company. Meanwhile, Marico acquired Beardo and Emami increased its stake in The Man Company last year. These marketers have been redefining masculinity, self-expression and grooming through their campaigns. Hitesh Dhingra, Founder, The Man Company says that the segment has evolved and it is no more just beard or face that men care about, they are today giving equal importance to holistic grooming and wellness. With a push from e-commerce, the grooming industry has already expanded its reach beyond urban markets, witnessing an uptick from Tier II and III cities. According to Research and Markets, India's male grooming industry is poised to reach $1.2 billion by 2024 at a CAGR of about 11% and globally, as per a Statista report, the grooming market is projected to reach around USD 81.2 billion by 2024. Now, to further build this category, The Man Company is entering a new segment: nutraceuticals. It has forayed into the well-being category with the launch of MinStrips, rapid dissolving tongue vitamin strips. Dhingra speaks to Advertising and Media Insider about the company’s foray into well-being, category trends we can expect this year, key focus areas and revenue goals for the coming fiscal. Q. What was the thought and idea behind foraying into the well-being category? We started our journey as an essentially grooming brand to help men on their continuous evolution. We have strived to build trust among our customers all these years by formulating purest and finest quality products for their overall grooming under skin, hair, and body care. Considering the need of the hour and being one of the leading brands for men’s grooming products, we wanted to move the needle following a 360-degree approach to enable a better lifestyle for men. The idea is to take a holistic approach from external to internal grooming. Therefore, we forayed into the wellness category and launched our sub-brand ‘MINS’. As a brand, we have been synonymous with innovations. It is in our DNA. So, this time, we wanted to launch products that are on the go, effective, easy yet safe, something with which Gen Z could quickly resonate. After 2.5 years of thorough R&amp;D, we added MINS to our product portfolio. MinStrips are orally dissolving strips that help people tackle all the lifestyle hurdles. Needless to say, most millennials and Gen Z have a fast-paced and hectic lifecycle. This automatically raises concerns about sleep, stress and anxiety due to work pressure, better hair and skin (which is already our forte), performance and sexual wellness. We are addressing all these issues with our latest innovation, MINS. Q. MinStrips is quite an interesting product. What inspired you to launch it? The nutraceutical industry in India is witnessing a CAGR of 21% this year. There are substantial untapped market opportunities out there. We can also see an aversion amongst millennials and Gen Z from consuming capsules, powders, gummies and tablets. The reason is that there is still a taboo attached to nutraceuticals being challenging to consume or travel with as they are somewhat dependent on factors like water intake. In contrast, MinStrips are self-dissolvable oral strips. Users simply need to keep it on their tongue, and the process is done, they can have their daily dose of Vitamin with utmost convenience. Additionally, MinStrips come with sleek packaging in a travel-friendly format. The entire concept of effective and easy-to-use makes it an exciting product, especially for our young consumer base. Furthermore, as per our research, strips have 80% active ingredients compared to gummies (30%), capsules (20%) and tablets (10%). This also makes MinStrips a highly accurate, elevated absorption and quick action product compared to other formats. Q. Also, these are rapid dissolving tongue vitamin strips, what was the product insight there? You chose not to go with regular vitamin supplements, so what led to this innovation? We didn't start making MinStrips just now. We have been doing our research since the pandemic was in its initial stage. During our research, we identified some key problems like modern consumers didn't want to take daily capsules, tablets, or powder content. They also want more affordable, hassle-free and convenient Vitamin supplements. So, we decided to launch MINS, a unique Vitamin supplement format accompanied by added benefits. MinStrips are made with 100% natural ingredients. They are vegan and free from any chemicals, sugar and side effects. One of the USPs of the product is that these are non-habit forming which makes them safe and easy to consume. We have also gained lab certificates from leading laboratories like GMP Laboratories, HACCP, ISO Certification, and FDA to attest to our claim. Q. How would you spread the word? What is your marketing and distribution strategy? We have garnered a huge and loyal community in the last six years of The Man Company's journey. Today, we have 0.8M followers across Social Media and a consumer base of 2M. This community comprises progressive and like-minded gentlemen. As our initial marketing and distribution strategy, we will leverage our existing consumers to spread the word through various media and also by sampling. We will also collaborate with influencers and content creators to spread word of mouth through their individual experiences. Furthermore, in terms of distribution, apart from our robust e-commerce platform and marketplaces, we also have around 2000 offline touchpoints through Modern Trade and Exclusive Brand Outlets. MINS will be ready to avail on all of these platforms. Q. What is your marketing budget earmarked for this year? 35% of our revenue is to be invested in marketing. Q. How has the company and brands’ communication evolved over the duration of the pandemic? During the pandemic, ‘immunity’ became the buzzword and the need of the hour, which made the wellness industry boom. Therefore, we feel this is the right time to enter the market and create a dent. For The Man Company, these last years have turned out to be propitious. We engaged with our customers to practise self-love, which made ‘The Man Company’ a household name among men embarking on their grooming journey. Since salons and parlours were shut down, we introduced DIY products for face, hair, beard and foot care that were easy to follow while working from home. Q. What does your media strategy look like? Which medium gets your lion's share? By DNA, we are a digital-first company. We function in full swing on the back of Social Media marketing and content creators. Content creators lead social media, and we believe influencers can be our ambassadors. Moreover, since we are a lifestyle brand, we are very focused on UGCs. We are currently on the lookout for going regional and trying to speak in the way and language that our consumers speak across the country. We believe that we should not merely translate the communication but trans-create it. Simultaneously, we are also gearing up to foray to other novel platforms and formats shortly. Q. As you build the men's wellness industry in India, what are some of the trends that you are expecting to see? How has consumer behaviour changed after the pandemic in this category? The pandemic inadvertently forced people to become more aware of their immunity strength and hygiene factors. Given that, consumers, in our case men, started to talk about personal care, hygiene and grooming became an escalating point for the tremendous growth of the wellness industry. During the pandemic hours, since everyone was working from home and salons were closed indefinitely, home-care and DIYs became the need of the hour. To assist our customers, we also came up with easy-to-use products that do not need experts, but consumers can use them in the comfort and safety of their homes. In the post-pandemic era, we believe consumers will continue to pay special attention to their personal care and grooming regime. The trend to use chemical and cruelty-free products will continue to gain strength, and consumers will incline towards affordable and effective product lines. Q. What are some of the challenges in this category? The biggest challenge is that consuming nutraceuticals is still considered taboo. More acceptance through education and workshops is required. Most importantly, wellness products should be safe to consume, which is why we have gotten MinStrips certified by several leading laboratories. Considering consumers today are busy with their fast-moving routines, we wanted to make MinStrips-brought wellness a part of the daily schedule. It wasn't easy to come up with an unprecedented idea. Still, we wanted to bring a hassle-free and affordable Vitamin and wellness booster with an 'On the Go' convenience for our customers. And, we are glad to say that we succeeded in our endeavour. Q. The notion of toxic masculinity has forced men to ignore themselves. It judges men who take care of their health and skin. Do you think that notion is changing in India? Are men more open to this change? Be it through our products or campaigns, The Man Company believes in bringing out the 'Gentleman In You'. Since inception, we have witnessed a gradual change in the way men perceive themselves. Social media, movies, web series have spoken about this change for quite some time now. We also feel that India has been exponentially evolving in terms of mindset. Grooming has become an aspiration. It's no more just beard or face that men care about, but modern gentlemen are focusing on holistic grooming and wellness. We have garnered considerable traction from tier-II and tier-III cities, proving that men's grooming is witnessing a notable uptick. The Man Company has worked as a catalyst to bring in this change through various campaigns like #GentlemanTumhiTohho, #ScentOfAGentleman and Gentleman Kise Kehte hai. We'll continue to assist the journey of 21st-century gentlemen. Q. Which are your strongest markets? Are you looking at expanding your business further this year? We cater to all gentlemen irrespective of education, sexuality, religion, job profile, or age, but prominently, we struck chords with millennials and Gen Z clientele. Our target group is every gentleman who is real, modern, authentic, progressive and self-aware. During our growth journey, we realised that tier-II and tier-III cities have issues related to affordability and awareness related to men's grooming and personal care. So, we decided to start our e-business operations in these cities. Considering that we are launching a sub-brand (MINS) and a new product (MinStrips) in the new year, we are sure this year will end on a high note. Q. What are some of your focus areas for this year? From a brand perspective, we are focusing on thought-provoking leadership. We want to create a strong brand presence across the country and make The Man Company a household name even in the most remote locations. For the coming months, we are gearing up to collaborate with platforms like Cred, Trell, etc. to fortify our sales. We are also working on IPs, such as the Hall of Gentlemen, to celebrate gentlemen bringing selfless change to society. Apart from this, several other exciting IPs are in the pipeline that resonate with our core communication to bring out the #GentlemanInYou. We don't want to be a brand that does tokenism. Our goal is to become a catalyst in changing the mindset of men everywhere. Q. You are all set to double your sales to Rs 100 crores by the end of this fiscal. How are you planning on sustaining this growth this year? What are your revenue goals for FY23? We will be pushing content like never before and expanding our offline presence aggressively. In terms of MT and EBO presence, we'll ensure maximum outreach. We are also launching various interesting categories, starting with MINS and expanding existing categories with exciting and innovative products. In addition, recently, we have also launched our loyalty program called The Man Club for our community. The Man Company is expecting to touch Rs 225 crore revenue in the coming fiscal.

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