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<div type="image" title="Companies are embracing the unbossing trend" msid="113256383" hostid="261" sizebytes="1440779"></div> If there’s one thing both a productive team member and an underperformer hates in the corporate world, it’s being micromanaged. Now, imagine a workplace where the boss isn’t calling all the shots. Instead, everyone has a voice, and innovation flows freely. The recent corporate trend of "Unbossing" promises to do just that, empowering employees by eliminating the heavy hands of hierarchy. Sounds too good to be true? Well, globally, not just the new-age start-ups, but dozens of major corporations have embraced this trend and trimmed their middle management. <h2>Managers managing managers — no more!</h2>In January last year, <keyword id="399907" type="General" weightage="20" keywordseo="META" source="Orion">Meta</keyword> CEO Mark Zuckerberg made headlines for declaring 2023 as the “year of efficiency” and saying that he doesn’t want a management structure that's just “managers managing managers”. <div type="image" title="Meta CEO Mark Zuckerberg" agency="ANI" msid="113256403" hostid="261"></div> The same month, it was also reported by Command Line that Meta's chief product officer Chris Cox, had shared a post on the company's communication platform, Workplace, highlighting the necessity to "flatten" the organisation's structure. What followed was reports of Meta slashing middle management roles. Gradually, other companies like Shopify, Bayer, and Cisco began making headlines for showing the exit door to some of their middle managers. Loosely, unbossing is essentially cutting down the middle management roles. It cuts significant costs for the company and the new-age workforce also endorses the trend as efficient in enabling faster decision-making and innovation. However, critics argue this trend also limits the extent of mentorship that the younger generation receives while entering the workforce, which often remains an intangible value if your boss turns out to be a good mentor. Therefore, for some, it’s not about firing the middle management, but just another leadership philosophy on how leaders (and ‘bosses’) should conduct themselves. This approach advocates bosses working along with the team as a part rather than shouting instructions from the top. Whatever one’s understanding, this trend of “Unbossing” appears to be taking corporate America by storm in 2023, as evidenced by hundreds of media reports highlighting the same. Overall, most agree that the trend is restructuring organisational hierarchy to enable direct communication between employees and leaders. Cut to 2024, this trend is still prevalent and making headlines. A Bloomberg report recently said that Georges Elhedery, the incoming CEO of HSBC Holdings, might also consider plans to streamline the company's operations by reducing layers of middle management. But what’s the scenario in India? Are Indian companies ready to ditch the old-school approach and adopt this new way of working? Let’s dive in and see what the experts have to say! <h2>Layoffs to impact senior professionals: Naukri.com survey</h2>A survey by job portal Naukri.com early last year had suggested that recruiters in India expect a decline in layoffs during the first half of 2023. The survey, which included responses from 1,400 recruiters and consultants across ten industries, revealed that only 4 percent of participants anticipated layoffs to be the main focus of hiring activities within their organisations. However, the survey also highlighted that information technology roles and senior professionals were likely to be the most affected by hiring adjustments. About 20 percent of recruiters predicted that layoffs would predominantly impact senior professionals, while freshers are expected to face the least disruption from these hiring corrections. Interestingly the survey came around the same time when the Unbossing trend had begun picking up pace abroad. <h2>Layoffs at Wipro, <keyword id="18635" type="General" weightage="20" keywordseo="amazon" source="Orion">Amazon</keyword> and Collegedunia</h2>In January this year, Wipro India was in the limelight for laying off hundreds of its mid-level executives. The company reportedly culled many jobs as part of its strategy to improve margins. An ET report citing two sources familiar with the situation had said that the leading Indian IT firm reduced mid-level roles at its onsite locations. "Notices began being issued earlier this month, and hundreds of mid-level executives onsite are being let go," one source revealed. Another source added, "They have costly resources onsite in Capco, and although growth is returning, it's not sufficient. Aparna Iyer, Wipro's chief financial officer, has been tasked with delivering better margins this quarter." <div type="image" title="Amazon decided to lay-off middle managers in May" msid="113256170" hostid="261"></div>Then in May, Amazon also decided to reduce layers of middle management within its customer service divisions as part of an organisational restructuring, a Fortune report had said. The cuts impacted over 100 customer service managers in Level 5 and Level 6 middle management roles, both in call centres and virtual positions, primarily based in the U.S. and India. Not just large tech companies, startups too seem to be adapting the <keyword id="23125775" type="General" weightage="100" keywordseo="unbossing-trend-in-India" source="Orion">unbossing trend in India</keyword>. Last month, educational portal Collegedunia confirmed that around 100 employees from its Study Abroad department had been given the pink slip. A report in CNBC-TV18 had said that additional job cuts were happening across other departments as part of a broader reorganisation. The restructuring, as per the report, was aimed at automating many tasks to reduce costs. Interestingly, despite the layoffs, Collegedunia had posted 13 job openings on LinkedIn for various roles in different locations, primarily entry-level positions requiring up to two years of experience. "While Collegedunia is laying off several employees, it is also hiring fresh talent, allowing them to keep staffing levels up but at a lower cost," one employee told CNBC-TV18 at the time. Another source confirmed that while Collegedunia had been actively recruiting for some months, it has also been letting go of employees, including senior staff members with 7-8 years of experience at the company. <h2>What do experts say?</h2> <div type="image" title="Experts&amp;#39; opinion on unbossing trend" msid="113256250" hostid="261"></div>Mr. Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, told Business Insider India, “From the perspective of HR leaders and CEOs, the strategic culling of middle management is viewed as a means to streamline operations, reduce overhead, and foster a culture of autonomy and innovation.” He also noted that even though employees can “exercise greater ownership and agility in decision-making” through this approach, there are also significant downsides. “The erosion of middle management creates a vacuum in leadership development, mentorship, and the retention of institutional knowledge, potentially leading to disengagement, a weakened talent pipeline, and misalignment with organisational objectives,” Kumar noted. Talking specifically about the Indian scenario, he said, “Implementing this trend in India would be a strategic move, positioning organisations to remain competitive in a rapidly evolving business environment. However, to fully capitalise on this approach, developing a more robust talent pipeline that integrates the ability to multitask at all levels is imperative. In today's landscape, leadership demands thinkers, strategic visionaries, and individuals who can execute with precision. We need to cultivate a new breed of leaders who are both thinkers and doers, capable of navigating complex challenges while driving innovation and growth. By building versatile, agile leaders through targeted talent development programs, Indian organisations can ensure they are well-prepared to thrive in a decentralised, high-performance environment.” RP Yadav, Chairman and Managing Director of Genius Consultants Limited, told ET recently that the Unbossing approach simplifies hierarchies and encourages open communication between frontline employees and senior management. He had added that the concept of “the oldest in the room is always the wisest of all” is no longer applicable. Meanwhile, Aditya Narayan Mishra, MD and CEO of CIEL HR Services told ET that the unbossing trend is predominantly seen in tech companies, creative roles, and startups, where swift decision-making and the unrestricted exchange of ideas are crucial. For example, the tech sector often thrives with flattened hierarchies that support rapid innovation and agility, while creative industries such as advertising and media use unbossing to cultivate a more collaborative and idea-focused environment. Thus, the unbossing trend is gaining traction beyond global companies and is finding its way into Indian organisations as well. While this approach can streamline operations, reduce costs, and enhance agility, experts caution that it also brings challenges, such as gaps in leadership development and the loss of institutional knowledge. To fully harness the benefits of unbossing, Indian companies must focus on cultivating agile leaders who can navigate complex challenges and drive growth. By building a strong talent pipeline and fostering a culture of innovation and collaboration, Indian organisations can position themselves to thrive in a more decentralised and dynamic business environment. Do you have insights or personal experience to s hare on layoffs, <keyword id="34447" type="General" weightage="20" keywordseo="workplace-trends" source="Orion">workplace trends</keyword>, or career changes? Contact us at businessinsider@timesinternet.in.

SIMPLY PUT: What’s with all “Unbossing” talks? Are Indian companies also embracing this global trend?

The landscape of Indian startups in the recent times has interesting mix of businesses that provide an important indicator into the future. NASSCOM in its recent report said that <keyword id="770060" type="UNKNOWN" weightage="100" keywordseo="Indian-start-ups">Indian start-ups</keyword> are coming up with <keyword id="3070390" type="UNKNOWN" weightage="100" keywordseo="Unique-Business-Solutions">unique business solutions</keyword> to meet the requirements of a geographically vast, diverse and a chequered society. With technology maximizing its potential, solutions that merge both possibilities of domain and tech are gaining ground. Geographically, minds that have been focusing on unexplored possibilities are making it to the list of some of the exciting <keyword id="121946" type="UNKNOWN" weightage="100" keywordseo="start-ups">start ups</keyword> that India needs to watch out for! 
 
Here are a few start ups that have caught the fancy of the nation for gaining popularity. 
 
Meet the chef everyday! 
<a href="http://www.holachef.com/">HolaChef</a>, a cloud-based restaurant aims at bringing best of cuisines created and crafted by some of the best chefs from across the world. It is operational in various areas in Mumbai. HolaChef strictly focuses on titillating your tastebuds only with masterpieces delivered each day in form of food! 
 
A startup in the food technology space, HolaChef raised a seed funding of Rs 2 crore from India Quotient early this year. Ratan Tata has made an investment of undisclosed amount in this startup, boosting its growth potential by a great extent. This bright spot among the startups also aims to raise an additional Rs 20 – 30 crore in the coming months to realize its full potential. 
 
A technology to track your sugar! 
<a href="http://diabe.to/">Diabeto</a> is a solution that was most needed in the times when diabetes is turning out to be a silent killer on the prowl. It is a hardware device which plugs into existing glucometers to transfer the sugar reading from the sugar testing machine, using Bluetooth to an Android device that has the diabeto app installed. 
 
This startup initially raised $70,000 in total, and was offered an additional $500,000 in case the business was interested in staying in Chile. Well, India being the better and lucrative market of the two, the minds behind Diabeto decided to be home in India. Now, time can reveal whether this decision was a good one or otherwise. 
 
Love across technology 
<a href="http://www.trulymadly.com/">Truly Madly</a>, in short, is a dating app that helps connect lovelorn people who are looking to meet the ‘right’ kind of partners who could be separated by mere geography. Worry no more! Started by Sachin Bhatia, Truly Madly is a dating app that was meant to cater to the love needs of people between age group 18 and 26 years. What’s the greatest cut the app has been able to make above the rest of the players in the same space? TM is about being a responsible app that connects people only after verifying their identity. No space for grasshoppers here. This app raised nearly Rs 35 crore funding early this year. 
 
Tasks? Don’t worry! 
<a href="https://www.taskbob.com/">TaskBob</a> conceived by Aseem who wanted to help average Indians meet their needs to run chores by way of roping in some experienced and reliable handymen was a dream come true for many people who simply find such tasks time consuming and exhausting since they have a long history of being conned at getting small jobs done. Now, no more sweat about menial tasks because TaskBob takes care of the entire gamut of requirements that need the attention of an expert plumber, painter, carpenter or just about anyone who is not on your friends’ list! The startup raised $ 1.2 mn from Orios and Mayfield in April this year. TaskBob is focusing on Mumbai right now, and has plans to expand soon. 
 
No teething problems! 
Mumbai-based <a href="http://www.mydentist.co.in/">MyDentist</a> conceived by Vikram Vora, is a chain of over 103 dental clinics spread across Greater Mumbai, Pune, Ahmedabad and Surat. With over 3 lakh cases that have been successfully treated much to the pleasure of both founders and users, MyDentist has addressed a crucial problem faced by most parents and youngsters by running nearly 100 clinics across cities. MyDentist, apart from its most successful run, also raised funds up to Rs 50 crore recently. 
 
When the trade is of a drink 
Mihir Desai of <a href="http://barstockexchange.com/">The Bar Stock Exchange</a> came up with the idea of setting up India’s first stock market based pub chain where drink prices changed based on the real-time demand and supply. Drinking at TBSE does not only give you a high on the drink alone, but also the empowered kick of having monitored the stock market at the same time. One of the most promising, innovative, fun and unique start up of our times that is bound to catch the fancy of more than drinkers alone. Go, savour that crash!

These Indian start-ups are revving up the Indian business scenario

Franchising has really picked up pace globally. Today, it accounts for almost 50% of the retail trade in the US and 45% in Canada. However, in India the franchising sector is only a mere 2.5% of the total US $ 24 billion of retail sales. The future of franchising in India looks bright in the coming years. A report by <keyword id="210379" type="COMPANY" weightage="20" keywordseo="KPMG-India-Pvt">KPMG India Pvt</keyword>. Ltd. forecasts a four times growth of the retail sector by 2017 contributing 4% of India’s <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword>, a healthy rate as compared to 10 to 25% in most developed countries. 
 At present, India’s retail market is the fastest growing in the world and is expected to grow from US$ 450 billion to US $ 1.3 trillion by 2020. However, figures point out that small businesses are going to be the major players in the <keyword id="47445" type="UNKNOWN" weightage="20" keywordseo="Indian-market">Indian market</keyword> as they (businesses in the small and mid range) have shown consistent annual growth of 11.5%, which is higher than India’s GDP growth rate of 8%. In this article, we take a moment to take a stock of the <keyword id="2791792" type="UNKNOWN" weightage="20" keywordseo="Franchise-vs-own-business">franchise vs own business</keyword> situation in India. 
 
Laws and regulations In India, small businesses have to comply with five main legal requirements governing Corporate, Tax, Labour, Environment and General. The Indian Contract Act 1872 and the Specific Relief Act 1963 for enforcement and damages for breach of contracts. businesses also have to comply with several other general laws like the Consumer Protection Act 1986, Trademarks Act 1999, <keyword id="6368276" type="COMPANY" weightage="20" keywordseo="Foreign-exchange">Foreign Exchange</keyword> Management Act 1999, Competition Act 2002, Labour Laws, and Sales Tax. 
 
While most countries have a single encompassing law to deal with ‘franchising’, in India franchising is treated ‘on par with small businesses’ as a contract and comes under the same rules and regulations. 
 
 There is no pre-contractual ‘disclosure requirements’ under law. The Franchisor is not required to divulge any information of his business, financial standing etc., and can easily abuse his position. 
 
Often the franchisor imposes the law of his country to govern the franchising agreements. The liability of the parties is not clear. 
 
Cost Factor 
The high franchisee fees and the royalties to be paid to the franchisor, labour etc. can create a burden on the franchisee. Franchising usually demands location in a prime area and this cost is an additional burden to the franchisee. Logistic support from the franchisor helps minimise transport and storage costs. 
 
Most businesses in India either have single-owners or are family owned and run, (local mom and pop stores) and the capital expenditure and outlay is lesser on all counts. They are also free to adapt and capture the local market requirements. 
 
Financing of small businesses through self-financing, family and friends is easier as compared to the higher level of investment for franchising through loans from banks and financial institutions. 
 
Market diversity 
Uniformity of products and services, one of the cornerstones of franchising success, however cannot meet the vast and diverse Indian market with its varied needs. The local business is ideally suited and is more successful in meeting customers’ requirements. 
 
Franchises are often well-established brand names and have the uniformity in products, price and quality. 
 However, one should not discount the fact that most small businesses grow and expand into franchising. In India the earliest <keyword id="46181" type="UNKNOWN" weightage="20" keywordseo="Franchise">franchise</keyword> businesses were in computer education NIIT, Bata the famous shoe company and Apollo Hospitals pioneer in corporate hospital sector. 
 
Franchising has also taken over in the beauty and personal care segment. The local beauty parlour has been replaced by franchisee spas. The ‘Naturals’ chain, which was started about ten years back now has a presence of over 450 outlets mostly as franchisees and is targeting a 3000 plus franchisees. 
 
Increasing globalisation has led to the foray of well known brands in all sectors from food, clothing, automobiles etc., in to the Indian markets. Few brands like Pizza Hut, McDonalds, and KFC have established themselves all over the country and are expanding rapidly. 
 The <keyword id="6362177" type="ORGANIZATION" weightage="20" keywordseo="union-government">Union Government</keyword> is keen to encourage the retail trade (this includes small and medium businesses and franchising) in line with its ‘Make in India’ campaign and has allowed 100% <keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword> in single brand and 51% FDI in multi brand retail and <keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword> (Goods <keyword id="6355686" type="COMPANY" weightage="20" keywordseo="Service-tax">Service Tax</keyword>) will be effective April 2016. 
 Under the Government’s National e-Governance Plan, in association with the <keyword id="6355001" type="CITY" weightage="20" keywordseo="FICCI">FICCI</keyword>, it has launched ‘Business Portal of India’ as part of the ‘Mission Mode Project’. The portal is a single window providing complete guidance for start ups, development and maintaining a business. It has also promised an Rs 1000 crore corpus for facilitating start ups. 
 
Government is also considering a franchise law for the speedy resolution of disputes. The trade would however, prefer a Comprehensive Franchise legislation governing franchising business.

Franchise vs own business: The tandem Indian scenario and evolving trends

Almost 4 lakh diarrhoeal disease deaths can be averted if '<keyword id="7834202" type="General" weightage="100" keywordseo="jal-jeevan-mission" source="Orion">Jal Jeevan Mission</keyword>' meets its target of providing clean water to all rural households, according to a new study by the <keyword id="6356311" type="General" weightage="50" keywordseo="world-health-organisation" source="Orion">World Health Organisation</keyword>. The government launched the Jal Jeevan Mission (JJM) in 2019, a nationwide programme that aims to provide all houses in rural areas with safe and adequate drinking water through individual tap connections by next year. The <keyword id="43588" type="General" weightage="50" keywordseo="world-health-organization" source="Orion">World Health Organization</keyword> (WHO) was requested by the Ministry of Drinking Water and Sanitation to conduct a study to assess potential health gains and associated cost savings due to increased access in safely-managed drinking water services in <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword>. The study found that, on an estimate, if the Jal Jeevan Mission provided safely-managed drinking water to all of India, this would result in averting almost 4 lakh deaths caused by diarrhoeal disease. According to official figures, till now 62 per cent rural households have been provided with tap water connection. "With universal coverage of safely-managed drinking water in India, almost 14 million DALYS (Disability adjusted life years) from the diarrhoeal disease are estimated to be averted, resulting in estimated cost savings of up to USD 101 billion," the study said. Also, the study said that providing a tap connection to every household would result in significant time saved on water collection (66.6 million hours each day), especially among women. Presenting the research findings, Richard Johnston, co-lead of WHO/UNICEF Joint Monitoring Programme for Water Supply, Sanitation and Hygiene, said if the world achieves its Sustainable Development Goals (SDG) targets of drinking water and sanitation, it will be because of India. "There are two reasons for it -- population and size -- as India is the country with the largest population in the world so what happens in India is important for the world but it is also because India is demonstrating what can be done and what is possible when it makes commitments and investments," he said. Dr Rajiv Bahl, Director General of the <keyword id="6364555" type="General" weightage="50" keywordseo="indian-council-of-medical-research" source="Orion">Indian Council of Medical Research</keyword>, said these findings are plausible. "We must understand that these are gross underestimates of the total benefits of providing safe water not only because these benefits go beyond health and they affect many communicable and non-communicable diseases. And even malnutrition, which is a big issue for us as they are all also related to water, so we must consider these just modest assumptions and tip of the iceberg," Bahl said. WHO estimation of health impacts is based on comparative risk assessment (CRA) methods, which are used extensively in the burden of disease assessments (Ezzati 2002, Pruss-Ustun 2019). The analysis estimated potential health gains from the Mission by comparing two scenarios. The JJM scenario assumed that coverage of safely managed drinking water services in India increases linearly from baseline levels to 100 per cent coverage at the end of the programme, whereas, the business-as-usual scenario assumed improvements in coverage rates are in line with historical annual rates of 0.5 percentage points change per year. For the economic analysis, the value per DALY averted from the JJM initiative was based on an approach described in the 2001 report of the WHO's Commission on Macroeconomics and Health which assigned each life year a value of three times the GDP per capita. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sustainability/news/the-worlds-oceans-last-month-were-warmer-than-any-other-may-since-the-beginning-of-the-19th-century/articleshow/100875382.cms">The world's oceans last month were warmer than any other May since the beginning of the 19th century</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/bmw-m2-launched-in-india-here-are-some-of-the-top-sports-cars-available-in-the-country/slidelist/100874746.cms">BMW M2 comes to India: Here’s how it compares with top sports cars available here</a>

Almost 4 lakh diarrhoeal disease deaths can be averted if Jal Jeevan Mission meets target: WHO study

<keyword id="1489410" type="UNKNOWN" weightage="100" keywordseo="e-commerce-in-India">E-commerce in India</keyword> is once again grabbing the headlines and this time, for all the right reasons. Bangalore-based <keyword id="319719" type="COMPANY" weightage="100" keywordseo="Myntra">Myntra</keyword>, arguably India’s largest standalone <keyword id="1127700" type="UNKNOWN" weightage="100" keywordseo="fashion-e-tailer">fashion e-tailer</keyword>, has recently closed a <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword> round worth $50 million from an investor consortium led by <keyword id="1430452" type="ORGANIZATION" weightage="100" keywordseo="PremjiInvest">PremjiInvest</keyword>, the family office of the <keyword id="10862" type="CITY" weightage="60" keywordseo="Wipro">Wipro</keyword> chairman <keyword id="6419840" type="PERSON" weightage="80" keywordseo="Azim-Premji">Azim Premji</keyword>. Myntra is also in talks with a clutch of investors to raise an additional $40 million at a higher <keyword id="51393" type="UNKNOWN" weightage="100" keywordseo="valuation">valuation</keyword>, according to an Economic Times report. So far, the <keyword id="2049121" type="UNKNOWN" weightage="100" keywordseo="E-commerce-firm">e-commerce firm</keyword> has raised $125 million in risk capital funding. Another fashion e-tailer that is also raising <keyword id="57924" type="ENTERTAINMENT" weightage="100" keywordseo="big-money">big money</keyword> is Gurgaon-based <keyword id="6388367" type="COMPANY" weightage="100" keywordseo="Jabong">Jabong</keyword>.com, which is backed by Berlin-based <keyword id="1965711" type="COMPANY" weightage="80" keywordseo="Rocket-Internet-GmbH">Rocket Internet GmbH</keyword> – a venture arm of the Samwer brothers. The e-commerce firm is reportedly raising a fresh round of equity funding worth $100 million, of which it has already received $27.5 million from the British <keyword id="2049123" type="ORGANIZATION" weightage="100" keywordseo="Development-finance-institution">development finance institution</keyword> <keyword id="1613067" type="UNKNOWN" weightage="100" keywordseo="CDC-Group-Plc">CDC Group Plc</keyword>. 
 All this is good news for the cash-strapped Indian e-commerce segment. So we have taken a close look at the recent fundraising by the <keyword id="2049116" type="UNKNOWN" weightage="100" keywordseo="Indian-e-commerce-players">Indian e-commerce players</keyword> and identified five key trends that seem to be prevailing. Will they rule the <keyword id="2049126" type="UNKNOWN" weightage="100" keywordseo="Fundraising-scenario">fundraising scenario</keyword> and determine the parameters of growth throughout 2014? Let us have a quick look. 
 
Growing big is the key priority E-commerce start-ups in India are finally coming of age and looking beyond the quickest possible exits. When Myntra closed $50 million in funding a couple of days ago, the company was immediately approached by its bigger rival <keyword id="6354742" type="COMPANY" weightage="60" keywordseo="Flipkart">Flipkart</keyword> who had reportedly come up with an acquisition offer worth $200 million. According to a TechCrunch report, e-commerce giant <keyword id="18635" type="CITY" weightage="80" keywordseo="Amazon">Amazon</keyword> had also approached Myntra but the details of the proposed deal are not yet available. 
 Although rumours were rife that Myntra could be considering either of the deals as part of a bigger strategy, the e-tailer has decided to stay off the <keyword id="1949341" type="UNKNOWN" weightage="100" keywordseo="Exit-route">exit route</keyword>. In fact, its ongoing talks for an additional round of funding worth $40 million clearly indicate that the company has in place some well-thought-out <keyword id="414633" type="UNKNOWN" weightage="100" keywordseo="growth-plans">growth plans</keyword> and big ones at that. The only other reason for back-to-back funding is to raise the valuation but at this point, Myntra doesn’t look like it is on the block. Neither has it decided to quit in a hurry like <keyword id="6359128" type="COMPANY" weightage="100" keywordseo="Redbus">redBus</keyword>.in did last year. <keyword id="2049136" type="UNKNOWN" weightage="100" keywordseo="Indias-largest-bus-ticketing-firm">India’s largest bus ticketing firm</keyword> was acquired by the <keyword id="1643008" type="UNKNOWN" weightage="100" keywordseo="Ibibo-Group">ibibo Group</keyword> for around $125 million but the sale cut short a successful <keyword id="530125" type="UNKNOWN" weightage="100" keywordseo="entrepreneurial-journey">entrepreneurial journey</keyword> that could have become a $500 million business in terms of revenue and could have achieved a $1 billion valuation. 
 As for Jabong, the very fact that it is backed by Rocket Internet may tell the industry insiders a different story. Rocket is known in the market for its fast and furious build-and-sell business module, and the start-ups are essentially replicas of successful US businesses. But the kind of funding Jabong is raising right now shows that the company is in no hurry to down the shutters in India even though two of its four co-founders have recently left the company. Jabong started its India operations in 2012 and competes with key e-com players such as Flipkart, Myntra, <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> and <keyword id="6354743" type="COMPANY" weightage="40" keywordseo="Amazon-India">Amazon India</keyword>, among others. 
 
Only <keyword id="2049143" type="UNKNOWN" weightage="100" keywordseo="Core-expertise">core expertise</keyword> matters Internet giant <keyword id="6355629" type="CITY" weightage="80" keywordseo="Google">Google</keyword> has already given us a case in point when it sold <keyword id="487941" type="ORGANIZATION" weightage="60" keywordseo="Motorola-Mobility">Motorola Mobility</keyword> to Lenovo for $2.91 billion, less than two years after paying $12.5 billion to acquire it. The deal is not a total financial loss as Google has managed to keep patents worth billions of dollars and expects to turn Lenovo into a manufacturing unit for its <keyword id="6355645" type="COMPANY" weightage="40" keywordseo="android">Android</keyword> OS. But selling <keyword id="11148" type="CITY" weightage="40" keywordseo="Motorola">Motorola</keyword> is a sure indication that Google should have focused more on its <keyword id="1430489" type="UNKNOWN" weightage="100" keywordseo="Core-Competencies">core competencies</keyword> – search, software and selling ads – instead of developing hardware. 
 You will find a similar case here as Jabong has reportedly sold its <keyword id="2049146" type="UNKNOWN" weightage="100" keywordseo="logistics-arm">logistics arm</keyword> <keyword id="2049145" type="UNKNOWN" weightage="100" keywordseo="JaVAS">JaVAS</keyword> (Jabong Value Added Services) to Gurgaon-based QuickDel Logistics as part of its business restructuring and funding exercise. Jabong <keyword id="170488" type="POSITION" weightage="40" keywordseo="co-founder">co-founder</keyword> <keyword id="536011" type="PERSON" weightage="40" keywordseo="Praveen-Sinha">Praveen Sinha</keyword> has also confirmed to the media that JaVAS is now an independent entity. 
 However, that brings us back to the basic question. Should companies try and provide end-to-end solutions to ensure a complete customer experience or should they focus on core competencies and leave the rest to the experts in those fields? We particularly raise this question as many Indian e-commerce firms are currently focusing on <keyword id="2049154" type="UNKNOWN" weightage="100" keywordseo="Proprietary-payment-gateways">proprietary payment gateways</keyword> and customised logistics services in a bid to propel their services to the next level. However, such services can actually make you lose money unless a company is catering to a customer base as vast as <keyword id="6357395" type="CITY" weightage="40" keywordseo="eBay">eBay</keyword> or Amazon. 
 After JaVAS, the writing is definitely on the wall. The bells and whistles can always come in later, but the key focus must be core competencies. Of late, even <keyword id="6354427" type="CITY" weightage="80" keywordseo="Apple">Apple</keyword> seems to be falling in this trap – its newest hardware products have ‘n’ number of <keyword id="2049161" type="UNKNOWN" weightage="100" keywordseo="Incremental-features">incremental features</keyword> but real innovations seem to be eluding the iconic company. 
 
Investors showing better <keyword id="170907" type="UNKNOWN" weightage="100" keywordseo="risk-appetite">risk appetite</keyword> India’s e-commerce market is projected to grow sevenfold to $22 billion in the next five years, and investors, both national and global, want to have a piece of the pie. According to <keyword id="1981" type="PERSON" weightage="80" keywordseo="Rahul-Khanna">Rahul Khanna</keyword>, managing director of the <keyword id="6357097" type="COMPANY" weightage="100" keywordseo="venture-capital">venture capital</keyword> firm <keyword id="218905" type="COMPANY" weightage="80" keywordseo="Canaan-Partners">Canaan Partners</keyword> (India), e-commerce players in India (and everywhere else for that matter) require very deep pockets to scale up to the level of breaking even and hitting profitability. In this space, sales margins are typically low; volume is high, and logistics &amp; back office <keyword id="6362476" type="ORGANIZATION" weightage="100" keywordseo="investments">investments</keyword> only become viable when companies are catering to a very <keyword id="2049169" type="UNKNOWN" weightage="100" keywordseo="Large-customer-base">large customer base</keyword>. Consequently, <keyword id="2049171" type="UNKNOWN" weightage="100" keywordseo="Follow-on-rounds">follow-on rounds</keyword> are extremely crucial for sustainable growth. Now that big institutional investors like PremjiInvest and UK-based development <keyword id="25455" type="ORGANIZATION" weightage="100" keywordseo="finance">finance</keyword> institution CDC Group are entering the arena, the much-needed <keyword id="2000080" type="UNKNOWN" weightage="100" keywordseo="Cash-burning">cash burning</keyword> is sure to propel growth to the desired level. 
 “E-commerce is fast maturing in India and that’s the main reason <keyword id="363248" type="ORGANIZATION" weightage="100" keywordseo="Global-Investments">global investments</keyword> are flowing in,” says another analyst. “When big players like Amazon show interest (the e-commerce giant has reportedly approached Myntra), investors are quick to sense the tremendous <keyword id="452394" type="UNKNOWN" weightage="100" keywordseo="growth-potential">growth potential</keyword> lying here,” she adds. 
 
Forget the buzz you are creating; it’s result time now Analysts, who have followed the course of events over the past few weeks, also point out another interesting trend. Be it Myntra or Jabong or other up-and-coming e-commerce businesses, it’s their <keyword id="2049173" type="UNKNOWN" weightage="100" keywordseo="Growth-quotient">growth quotient</keyword> that has attracted <keyword id="2049174" type="UNKNOWN" weightage="100" keywordseo="Big-funding">big funding</keyword>. In other words, start-ups who are delivering in a big way will get the valuable <keyword id="2049175" type="UNKNOWN" weightage="100" keywordseo="Growth-dollars">growth dollars</keyword> as investors are now looking beyond the buzz and focusing on <keyword id="1730239" type="UNKNOWN" weightage="100" keywordseo="business-fundamentals">business fundamentals</keyword> and results. 
 Companies must have the numbers – in terms of customer base, <keyword id="169826" type="UNKNOWN" weightage="100" keywordseo="growth-figures">growth figures</keyword> and brand leadership – to justify the big money they are raising. For instance, Myntra expects to more than double its <keyword id="657194" type="UNKNOWN" weightage="100" keywordseo="gross-sales">gross sales</keyword> to over $250 million by March 2015 and the fashion e-tailer’s <keyword id="2049176" type="UNKNOWN" weightage="100" keywordseo="Monthly-gross-sales">monthly gross sales</keyword> could touch $20-25 million by April this year. Myntra is expected to end the current fiscal with more than $100 million in gross sales and it is targeting $1 billion in <keyword id="6399113" type="ORGANIZATION" weightage="100" keywordseo="GMV">GMV</keyword> by 2016-2017. Flipkart, which raised $360 million last year at a valuation of about $1.6 billion, is also projecting a GMV of $1 billion by 2015. 
 Jabong, too, has aggressive growth plans and the latest round will be used to strengthen its <keyword id="2049177" type="UNKNOWN" weightage="100" keywordseo="Supply-chain-infrastructure">supply chain infrastructure</keyword> and enhance its <keyword id="2049178" type="UNKNOWN" weightage="100" keywordseo="Technology-platform">technology platform</keyword>. According to industry sources, Jabong might have generated <keyword id="2049180" type="UNKNOWN" weightage="100" keywordseo="Gross-merchandise-sales">gross merchandise sales</keyword> of $100-150 million for the fiscal 2012-13. Other key investments in the Indian e-commerce space since 2013 included online marketplace Snapdeal raising about Rs 300 crore and baby care portal <keyword id="1615917" type="COMPANY" weightage="80" keywordseo="FirstCry">Firstcry</keyword> bagging Rs 92 crore. 
 
Inventory, <keyword id="6630005" type="UNKNOWN" weightage="100" keywordseo="private-labels">private labels</keyword> are adding value 
With the lone exception of Snapdeal that runs a 100% marketplace, most of the big e-commerce entities in India are flourishing on a hybrid model – a strategic mix of inventory, private label and marketplace. In fact, Jabong has been doing all three for some time now, although a bit discreetly, and it could be now pushing hard to extract every penny from each of these categories. 
 
Myntra, on the other hand, focuses on both inventory and private label, with the share of private labels rising rapidly. A couple of years ago, the e-tailer acquired Exclusively.in Inc., the company behind the private label brand Shersingh.com and the fashion site Exclusively.in, in a cash-cum-equity deal. Myntra is reportedly eyeing more private labels to add to its portfolio as the margins are pretty high in this segment and add substantially to the profits. 
 
Bottom line: Is it a <keyword id="2049185" type="UNKNOWN" weightage="100" keywordseo="Volatile-situation">volatile situation</keyword>? In one of her latest blogs in <keyword id="6359301" type="POSITION" weightage="100" keywordseo="Entrepreneur">Entrepreneur</keyword>.com, entrepreneur-writer Erika Trautman has nicely summed it up. “No matter how great the idea, if your start-up doesn’t create hard and fast results with analytics, targeted business solutions and mobile integration, it won’t survive in 2014. Launching a start-up can’t just be about how cool your product is. No business can subsist off just buzz and Press. This year, start-ups must focus on business fundamentals and start emphasising partnerships that generate results.” 
 
Can the Indian e-commerce players innovate, scale up and deliver (as the takeaways so amply illustrate) to justify the trust investors are now putting in them? Will there be new ventures to take up the gauntlet? Let us wait and watch. 
 
Image: Thinkstock Photos/Getty Images

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