Phanindra Reddy Sama was waiting for a bus to go home for Deepavali in 2005. The electronics engineer in Bengaluru searched in vain for a ticket to Hyderabad at dozens of private bus agencies. The BITS Pilani graduate was not convinced though. Somewhere on a bus, there has to be a vacant seat, though he didn’t know how to find it. He would later launch redbus.in, helping people search for bus seats on a laptop or mobile phone.
Today redbus is the largest online bus ticket booking agency in India. Ibibo Group took over the company for Rs 800 crore in 2013.
Recipe for success
Start-up success belongs to those who think out of the box. Practical and sellable ideas and the technical knowhow to develop it into a product are the basic ingredients for a startup. Add loads of confidence and a willingness to take risks and you have the recipe for success. A word of caution: do not expect a profit for the first five years.
India ranks fourth in the number of startups, behind the United States, the United Kingdom and Israel. The number of Indian startups will rise four-fold to about 11,500 by 2020, according to Nasscom projects. They will generate employment opportunities for more than 2.5 lakh people.
Mobile internet-based products are in high demand. It is expected to remain that way in the near future. There is a surge of startups in this area.
Who would not be happy if they can shop for anything through their smart phones? Mobile shopping and mobile commerce are strengthening day by day and startups script a major part of this story. Flipkart was once a startup.
Bengaluru-based startup Furlenco links shops that rent out furniture and people who might need it. Startups originate from different ideas like this. Before you venture out, ask yourself: Will this product be of any use in your life? If the answer is yes, go ahead.
Startup sector is witnessing a shift from business-to-business category to business-to-consumer. B2B provides services to the companies while B2C goes directly to serve the consumer.
Funding will follow
Investment will track you if your idea is novel and the product has a market that can be sustained. Angel investment is the keyword for startups. They help startups transform ideas into reality. Angel investors’ motive is of course the profit the startup can make. Startups can expect on average up to Rs 1 crore in investment.
There are many websites that help startups find investors. Letsventure.com, kickstarter.com, indiegogo.com are some of these.
10 emerging sectors
Virtual reality: Possibilities in marketing, advertising and healthcare industries
Hardware: 3D printing, payment solutions and automation industries
Cloud computing: Information technology
Online payment: Digital payments rose 40 per cent last year
Edu tech: About 15 crore students in India access the Internet through their phone
Ad tech: Mobile advertising, marketing analytics, ad campaign and management industries look for ideas
Health tech: Growth in doctor/hospital search and patients’ records management
Security: Cloud-based security, mobile security
Gaming: Online and mobile games
- Based on a Nasscom report