Have you ever felt like you’re throwing everything at your Facebook ads, but they just don’t stick? I’ve been there. It’s like shooting arrows in the dark, hoping one hits the bullseye.

But here’s the good news: mastering Facebook ads for your D2C business isn’t about luck; it’s about strategy. 

Let me share some insights that turned my campaigns around.

Start With Your Best Sellers

When you’re at the starting line, it’s all about reducing variables. Your best sellers are your secret weapon. They have proven appeal, giving you a head start. If you’re starting from scratch with no sales data, focus on the product category with the highest sell-through rate. Use this as your ad’s star player, then iterate based on performance.

Messaging Over Design

It’s tempting to get caught up in design details. Pink or yellow? Bold or subtle? But here’s the thing: it’s the messaging that drives buying behaviour. What position does your product hold in the customer’s mind? Your goal is to become the go-to product for their specific needs. While design can optimise the buying experience, it’s the messaging that will drive the sale.

Capturing Attention The Right Way

Ads are your spotlight. They’re there to grab attention and lead customers to checkout. Focus on how your product fits into their life, the problems it solves, and the ‘wow’ factor it brings. But remember, attention should be rooted in value, not gimmicks. Authenticity wins the race.

The Power Of The Offer

Attracting visitors is one thing, but converting them is another. If your traffic is high but conversions are low, it’s time to revamp your offer. How can you present it more compellingly? Consider:

• Comparing with other products
• Offering discounts
• Highlighting customer reviews

These strategies can enhance perceived value and nudge visitors towards making a purchase.

Your Role In This Journey

As a marketer, your role is to guide potential customers through a journey where each step feels natural and inevitable. It’s about creating a narrative that resonates, engages, and ultimately convinces.

Let’s embrace these strategies and transform our Facebook ads from shots in the dark to targeted arrows hitting their mark. 

The post Mastering The Art Of Creating Impactful D2C Facebook Ads appeared first on Inc42 Media.

You’ve crafted the perfect ad campaign, traffic is flowing in, but the conversions? They’re just not happening. It’s a marketer’s nightmare, isn’t it? This scenario is all too common in the digital marketing world, where the focus is often heavily skewed toward creating ads and driving traffic.

The Overlooked Half of Marketing: Conversion Rate (CR)

While attracting users is a crucial part of marketing, it’s only half the battle. The real challenge, and arguably the most critical aspect, lies in converting these visitors into customers. It’s not just about bringing them to the platform; it’s about making them stay, engage, and ultimately, convert.

Key Questions for Effective Conversion

To enhance your conversion rate, consider these pivotal questions:

• Ad and Landing Page Harmony: Does your ad speak the same language as your landing page? Consistency in messaging is key to not lose the user’s interest.
• Meeting User Intent: Is your landing page addressing the user’s intent? Understanding and answering their needs can significantly boost conversions.
• User Actions: Are visitors engaging in the way you intended on your page? Analyzing user behavior can provide insights for optimization.
• Content Strategy for Different Users: How does your content cater to new versus returning users? Tailoring the experience can lead to better engagement and conversions.

The Competitive Edge Of A High-Converting Landing Page

In today’s market, a landing page or product that converts better is not just an asset; it’s a competitive advantage. It’s the difference between a potential customer and a loyal one. The focus should be as much on converting the traffic as it is on generating it.

Your Role In The Conversion Journey

As a marketer, your role is to guide the user through a seamless journey from the ad to the landing page, ensuring each step is aligned with their expectations and needs. It’s about creating a cohesive experience that not only attracts but also convinces and converts.

Let’s shift our focus and redefine marketing success not just by the number of visitors, but by the quality of conversions. Together, we can bridge the gap between traffic and conversions, turning potential into profit.

Looking forward to hearing your thoughts and strategies on conversion optimization.

The post Beyond Ads and Traffic: Learning The Art of Enhancing Conversion Rate appeared first on Inc42 Media.

The Indian fintech landscape has been in a phase of rapid growth supported by new and sector-first tech innovations and thriving consumer/business demands. The total addressable market for Indian fintech is expected to reach $2.1 tn by 2030. 

In fact, the Economic Survey 2022-23 states that, India has the highest fintech adoption rate of 87% among the public, compared to a global average of 64%. These growth matrices testify India is one of the most innovative players in the fintech world. 

As a country that is enabling and empowering the unbanked and underserved population, India has a growing tech-savvy generation, a high number of enterprises as well as small businesses with inclusive financial services. Digital Payments, as a sector, has been essential in spearheading this revolution. 

While this upward trend is definitely boosting our economy, it also comes with certain vulnerabilities and challenges. In 2022, India encountered approximately 7 lakh cyber or malware attacks, ranking 10 among the nations that witnessed such attacks, with the finance sector being the most susceptible. 

In light of this, it is imperative to stay ahead of evolving breaches and vulnerabilities. This can only be done by consistently building, enhancing and addressing security aspects of fintech products and solutions.  

Innovative Security Measures Driving Digital Transactions 

Today, building and continuously strengthening the ecosystem for safe and secure digital transactions is non-negotiable. In fact, it is good to see the consistent progress in safeguarding customers/businesses through government initiatives, policies and regulations, and advanced tech innovations. 

For instance, the shift towards a risk-based KYC approach, particularly prioritizing higher-risk merchants, is a significant step towards enhancing the security and efficiency of the e-KYC process. 

This year’s Union Budget’s emphasis on this strategic shift indicates a proactive approach to risk mitigation, which is commendable. Similarly, Indian fintech companies are making significant strides by harnessing evolved technologies like contactless payments and tokenisation to protect sensitive information as well as prevent data exposure. 

Overall, the right government support and regulations will help foster a more robust and secure fintech ecosystem. Perhaps, a government-funded open-source infrastructure solely for security purposes that can be integrated into other software and platforms can help boost this further.

Payments Aggregators As Security Guardians 

Payment aggregators (PAs) have emerged as key players between merchants and the complex network of banks and payment gateways, simplifying transactions for both parties. As this particular type of intermediary, PAs have become synonymous with seamless and secure transactions because of robust security measures including encryption, tokenisation, and fraud detection algorithms. 

Besides protecting merchants and consumers from potential financial loss, PAs have also bolstered the market’s confidence in digital transactions, driving a swifter adoption of cashless payments. 

PAs leverage nuanced AI/ML integrations, which have demonstrated remarkable success in payment security. AI-powered fraud detection assists in identifying and preventing fraudulent transactions, leading to substantial reductions in financial losses and improved customer trust. For instance, AI algorithms can identify unusual spending patterns, detect unauthorised account access attempts, and analyse large-scale data breaches to proactively safeguard user accounts. 

Also, it can assist merchants in identifying fraudulent orders and preventing chargebacks, ensuring secure and seamless payment experiences for customers. The utility of such systems will certainly witness requisite refinements, creating robust and intelligent solutions to combat evolving security concerns.

This imperative is also attracting much-needed regulatory attention. For example, this June, the RBI rolled out Draft Master Directions on Cyber Resilience and Digital Payment Security Controls for payment system operators (PSOs) – making this another positive intervention for all stakeholders to enhance security control. 

The Roadmap Of Security Evolution 

The Indian fintech sector has drawn in investments exceeding $25.8 bn since 2014, leading to the creation of 22 unicorns and 33 soonicorns. Our country has a significant R&D advantage to combat cyber fraud and malware. 

As a matter of fact, India is among the very few nations that protect digital payment users with a two-factor authentication process. Along with government-backed initiatives, multiple stakeholders are making great efforts to ensure absolute cybersecurity in the world of finance. 

Interestingly, the unprecedented collaboration among fintechs, government bodies and regulators, collectively working to devise resilient solutions, distinguishes the current landscape from preceding years. Innovations such as next-gen firewalls, vulnerability management, and Secure Access Service Edge (SASE) are thriving in our country, inspiring new talent and international markets. Other technologies, such as Extended Detection and Retention (XDR), also take root in India from global markets. 

As the sector continues to innovate, digital payments will continue to further fuel the growth of our economy – offering convenience, efficiency, and inclusion. The Indian fintech space, dominated by the progress of digital transactions, has set precedence for other international markets to follow. 

This progress has put us on the map for its level of accessibility, interoperability and secure robust infrastructure, making us a critical innovation hub in APAC while expanding our financial inclusion programs to Europe and the rest of the world.

The post Security As A Lens For Navigating The Future Of Digital Payments appeared first on Inc42 Media.

India is the world’s third-largest startup ecosystem, with over 3000 deeptech businesses centred on high-tech inventions or scientific advancements in fields such as artificial intelligence and machine learning, big data analytics, IoT, blockchain, and more. 

These firms are expanding into disciplines such as agriculture, life sciences, chemistry, aerospace, and green energy, with the goal of reshaping industries through innovative technology solutions. 

The National Deep Tech Startup Policy (NDTSP) is a game-changing effort launched by the Government of India to guide innovation, generate economic growth, and promote societal development for such startups. 

The strategy seeks to foster innovation by offering incentives such as tax reductions for businesses and encouraging venture capital investments. 

Foundational Elements And Prospects

The NDTSP Consortium released the draft policy on July 31 for public consultation, seeking feedback from market stakeholders till September 15. The policy was drafted after extensive consultation with end-users and stakeholders in the deeptech startup ecosystem to identify the existing challenges and priority sectors. 

Investors, incubation centres, academia, and individuals and organizations were consulted through thematic focus group discussions and virtual consultations. The draft NDTSP 2023 at present is a strategic and well-thought-out policy aimed at fostering the growth and sustainability of deeptech startups. 

It aims to help startups overcome challenges relating to funding, access to the right talent, and scaling their research and development operations. 

The policy outlines a vision for the Indian deeptech startup ecosystem, encompassing four key pillars: 

• Securing India’s economic future
• Progressing towards a knowledge-driven economy
• Bolstering national capability and sovereignty through the Atmanirbhar Bharat imperative, and 
• Encouraging ethical innovation

Some of the key foundational elements of the policy are as follows – 

Funding and innovation: The strategy attempts to give financial assistance to deeptech firms through a variety of means such as grants, loans, and venture capital. It also aims to foster innovation by simplifying regulatory processes and encouraging collaboration between academia and industry. 

It suggests measures such as a centralised platform, fiscal incentives, specialised financial instruments, and technology impact bonds all aimed at boosting the growth and sustainability of deeptech business. 

It also recommends expert panels for economic evaluation and cooperative funding options to enhance technical infrastructure, thereby optimising funding for select startups. 

Talent development: Recognising the importance of human resources in the deeptech sector, the policy promotes steps to cultivate a skilled workforce. This includes promoting STEM education, offering training possibilities, and attracting international talent.

Access to advanced infrastructure and technology: The strategy emphasises the importance of deeptech startups having access to advanced infrastructure and technology. It suggests that deeptech incubation centres and testing facilities be established across the country, it also emphasises strengthening the existing tie-ups with IIT and IISc, etc to provide shared infrastructure resources at nominal fees. The policy also provides for the creation of domain expertise for data interpretation through a fee service model as well as network standardisation and field test sites to further facilitate testing of deep-tech startups. 

Public procurement and market opportunities: The strategy pushes government agencies to embrace deeptech solutions and opens up new markets for businesses as well as become the first market for such deeptech startups. It also encourages international cooperation and market access.

Intellectual Property (IP) protection: The policy recognises the necessity of IP protection for deeptech businesses. It suggests the establishment of a uniform IP framework and the implementation of strong cybersecurity measures. It further aims to support deeptech startups by building in-house capabilities and granting government-purpose rights for strategic technologies. 

In Conclusion

In essence, the NDTSP emerges as a beacon guiding the trajectory of India’s deeptech startup landscape, laying the groundwork for a future where technological innovation propels the nation to new heights on the global stage. 

As the policy moves from a draft to implementation, its success will be measured by the tangible impact it has on startups, the depth of innovation it fosters, and the positive transformation it brings to India’s economic and societal fabric. 

The NDTSP seeks to democratise the benefits of deeptechnology by making them available to all levels of society. Through the effective use of deeptech research-driven breakthroughs, the strategy is deliberately structured to boost innovation, spur economic growth, and promote societal development.

The post Decoding The National Deeptech Startup Policy appeared first on Inc42 Media.

In the ever-evolving realm of finance, where data reigns supreme, a groundbreaking paradigm is reshaping the landscape for fintech companies. The convergence of two transformative technologies, Artificial Intelligence (AI) and Data Lakehouse, stands as a powerful force revolutionising how financial institutions harness the potential of data.

Gone are the days of traditional data warehousing solutions grappling with scalability challenges and fragmented data silos. Today, fintechs face the imperative need to integrate unstructured data, generate real-time insights, facilitate segmentation, and employ predictive analytics capabilities to navigate the dynamic financial markets. 

Enter the Data Lakehouse – a unified data platform poised to redefine how financial data is managed and analysed.

At its core, the Data Lakehouse harmonises the expansive storage capabilities of data lakes with the structured querying power of data warehouses. This fusion grants the flexibility to work with any type of data without the risk and complexity involved in copying and moving data around. 

You can directly interact with the data, whether it’s structured, unstructured, or semi-structured, within the data lake. A transaction layer operates between the data in your lake and the tools used for business intelligence, reporting, data science, machine learning, and other types of analysis. 

This liberation from data silos provides fintechs with a holistic view of their operations, crucial for making informed decisions in near-real time.

A Data Lakehouse isn’t just about consolidation; it’s a game-changer. It slashes infrastructure costs by breaking data silos, reducing computation costs of data transfers, and streamlining data management. 

This unified setup doesn’t merely grant access to extensive data and varied workloads in one spot; it unlocks endless possibilities beyond traditional analytics, empowering advanced applications like machine learning, data science, and even integrating with LLMs. 

This opens up the opportunity to deploy advanced solutions such as fraud detection Systems, Recommendation Engines for tackling delinquencies, quicker creditworthiness assessments, risk summaries for underwriters, and AI-augmented marketing campaign strategies, among many others.

Moreover, this union fortifies data security and compliance, ensuring continuous monitoring, anomaly detection, and proactive measures against potential breaches. As the financial industry navigates evolving regulations and data security challenges, the AI-driven Data Lakehouse stands as a fortress safeguarding sensitive financial information.

Most fintechs heavily rely on data to run their operations, but every organisation’s data landscape is unique. Determining if a data lakehouse suits specific needs depends on several indicators:

• Does your organisation ingest multiple types of data, such as text, images, video, audio, clicks, sensor data, or log files?
• Do you need to ingest data in real time but are currently limited to batch loads?
• Does your organisation acquire data from external (third-party) providers?
• Is deploying data science and machine learning for new use cases a challenge?
• Is your organisation burdened with disparate data silos, leading to frequent data duplication or movement?
• Does data transformation and analysis take longer than desired?
• Are manual methods or spreadsheets still predominant for data organisation?
• Do issues with outdated or duplicated data impact decision-making?

If your organisation is grappling with these challenges, then a Data Lakehouse could yield significant benefits. This synergy between AI and the Data Lakehouse signals just the beginning of FinTech’s transformation. With evolving AI models and advancing Data Lakehouse frameworks, anticipate deeper insights, fortified security, and seamless scalability. It marks an unprecedented era of data innovation.

In the intricate web of financial data, the fusion of AI and the Data Lakehouse emerges as an innovation beacon. For fintechs navigating a data-rich landscape, this fusion isn’t just a strategy; it’s imperative for sustained success. As technology evolves, the AI-driven Data Lakehouse shapes the future of data analytics, empowering fintechs to flourish in a changing financial terrain. This synergy heralds a new era of possibilities, where data becomes not just a tool but a guiding force propelling fintechs into the future.

The post Empowering Fintechs: How AI And Data Lakehouse Is Redefining Data Dynamics? appeared first on Inc42 Media.

As we edge closer to 2024, Indian startups are navigating through a transformational era marked by a global funding slowdown. The path to success isn’t about riding the wave — it’s about creating your own.

With a firm gaze on the horizon, here’s a pragmatic strategy for Indian entrepreneurs aiming to chart a course to triumph in the coming year.

Embrace Pragmatic Innovation

Innovation is the cornerstone of a startup’s ethos, but in 2024, it’s imperative that this innovation is pragmatic. Innovate with purpose and clarity to address genuine market gaps.

Startups that tailor their innovation to solve concrete problems will stand out to investors and build a dedicated user base.

Strategise For Sustainability

In an era of cautious capital, the startups that demonstrate sustainable growth and prudent financial stewardship will attract the right kind of attention.

Plan with an eye on long-term viability — profitability isn’t just an objective; it’s a necessity for securing investment and ensuring survival.

Data-Driven Decisions

With market volatility, data remains the most reliable source of truth. Let 2024 be the year where every strategic move is backed by solid data — focusing on metrics that directly correlate with your business health and customer satisfaction.

Lean Operations, Maximum Impact

Lean is in. Efficient, nimble operations that maximise output while minimising waste will be the gold standard in 2024.

Embrace technologies and methodologies that enhance productivity and ensure that every resource is optimised.

Foster a Resilient Culture

Culture will dictate resilience. Invest in building a team that’s flexible, innovative, and deeply connected to your startup’s mission.

A resilient culture attracts talent, fosters innovation, and sustains you through economic headwinds.

Your 2024 Roadmap: A 5-Point Checklist

• Define Your Value Proposition: Sharpen the articulation of what sets your startup apart. Your value proposition should resonate with your audience and clearly communicate the unique benefits of your product or service.
• Prioritise Profitable Growth: Craft a business model that balances growth with profitability. This should involve optimising your cost structure and focusing on revenue streams that promise long-term returns.
• Cultivate Data-Driven Culture: Foster a culture where decisions are made on insights derived from data, not intuition. Ensure that your team understands and utilises data to drive the startup forward.
• Adapt to Market Dynamics: Stay agile and be prepared to pivot strategies as market conditions change. Adaptability will be crucial in responding to new opportunities and challenges.
• Invest in Talent: Align your hiring strategy with your growth ambitions. Look for individuals who are not just skilled but also adaptable and capable of thriving in a dynamic startup environment.

In Conclusion

The upcoming year presents a unique set of challenges and opportunities for Indian startups. The startups that will rise to the top in 2024 will be those that have ingrained a culture of innovation, strategic sustainability, and operational agility into their DNA. 

The future belongs to those who can navigate the complexities of the market with a flexible, data-driven approach, delivering value that resonates with customers and sustains the business through every cycle.

The post Unlocking Startup Success In 2024: Strategies, Statistics, And Plannings appeared first on Inc42 Media.

Have you ever felt overwhelmed by the constant barrage of promotional SMS messages on your phone? I certainly have. 

Just the other day, I was sifting through a sea of unread messages, all screaming for attention, and it struck me: Is this strategy effective?

The Reality Of SMS Marketing In India

The once-celebrated SMS marketing landscape in India is undergoing a transformation, with its effectiveness facing scrutiny. The click-through rate (CTR) has witnessed a sharp decline, dipping below 0.1%, raising concerns about the channel’s cost-efficiency. 

While the cost of sending an SMS remains relatively low at around 10 paise, the average cost per click (CPC) has soared to INR 100, creating a significant disparity. 

This imbalance is particularly concerning given the generally lower conversion rates observed on mobile devices compared to desktops.

A Closer Look At Customer Acquisition Costs

Imagine sending out a thousand text messages and only gaining ten new customers. That’s the reality for many businesses that rely on SMS campaigns to acquire new customers. 

With a conversion rate of just 1%, the cost of acquiring a customer (CAC) through SMS can reach a staggering INR 10,000 ($120). While this approach still holds value for some industries with high customer lifetime values, it’s essential to weigh the costs and benefits carefully before embarking on an SMS marketing campaign.

Who Still Benefits?

Financial Products: Considering the high referral bonuses offered by some banks for credit card sign-ups, a customer acquisition cost (CAC) of INR 10,000 can be justified.

Real Money Gaming Apps: While their low ticket size might suggest otherwise, their high user engagement and frequency make the high CAC worthwhile. This is because their loyal customer base brings in consistent revenue and repeat business, which ultimately justifies the initial investment in acquiring new customers.

Real Estate: In the real estate industry, the substantial transaction values make it easier to bear the higher customer acquisition cost.

The Vicious Cycle And A Possible Solution

This reliance on SMS marketing has led to a vicious cycle: more messages lead to lower click-through rates and higher CACs. Many, including myself, have turned off SMS notifications to escape this deluge. 

A potential solution? Increase the cost of sending promotional SMS. This approach, already adopted in several developed countries, could break the cycle, encouraging more targeted and thoughtful campaigns.

As we navigate the ever-evolving landscape of digital marketing, it’s crucial to reassess our strategies and adapt to changing trends. The current state of SMS marketing in India is a clear indicator that what once worked may not be as effective today. 

By initiating a dialogue on these issues, we can collectively steer towards more innovative, efficient, and user-friendly marketing practices that respect both the consumer’s space and the marketer’s budget.

The post Is SMS Strategy A Costly Mistake? appeared first on Inc42 Media.

In the past couple of decades, there has been a huge shift in the food lifestyle patterns in India. In recent years particularly, there has been a huge rise in the demand for organic food and products. 

There have been many drivers behind this development. The biggest one is that the country’s food and beverage industry, especially in the category of organic food, has experienced gradual growth in the past few years.

Organic food is pricier and the growth in the income levels of the middle class of India has enabled the population segment to shift in lifestyle. More Indians can now afford organic food and can make a cautious decision to choose such ingredients and food items. 

Tech startups and tech companies in India have been working to spread awareness about food and lifestyle change in India and promote organic food. They are further pushing the growth of the organic food industry and making it reach out to a larger chunk of the population.

Spreading Awareness For Adoption of Organic Food

Tech startups who track the country’s income and expenditure trends can understand the food industry’s pulse as a whole. They plan their communication and marketing tactics in a way to target the correct audience for the correct product or service. 

The primary way to reach out to the audiences is through targeted online advertisements on various social media and other means. The communication reaches the handheld devices of the particular user and is considered the most effective means. 

These companies also involve influencers for better and more effective outreach. The main aim of such communications is to break the myths surrounding organic food and spread better awareness.

Communicating Benefits Of Organic And Doing It On Right Time

The major reason for the non-adoption of organic food by the masses is due to the myths and disbelief associated with it. A major part of the population is not aware of the exact benefits of organic foods and this is where communication plays an important role. 

The lack of knowledge forces people to assume certain things about the organic food industry and thus are pushed away from adopting the lifestyle. More than communicating the benefits of organic foods, it is also important to communicate them at the right time. In this case, the right time is when people are making a shift in their lifestyle. Internet trends of users play an important role in tracking their preferences. 

When a user is making a shift in behavioural patterns and making lifestyle-related changes like starting to exercise, joining a gym or shifting to a new diet regime. 

This is the optimum time to communicate about the benefits of organic foods as at this time, the audience would be more receptive and the communication would be the most effective.

Informing Them From Where To Purchase

Other than communicating about the benefits of organic foods, it is also important to talk about the right sources from which such products can be purchased. Nowadays, there are numerous sellers of organic food items and there have been cases, where some sellers sold non-organic products, claiming them to be organic. 

Such incidents hamper the trust of the consumers and they develop a dislike for the whole segment of foods. It is highly important to verify the right and certified sellers of such products and promote them to the right audience. 

Consumer trust must be developed and this is what the new age tech startups are focusing on. Only the right sellers are promoted on various platforms, after a thorough background check and verification.

Delivering Organic Food In Less Than 20 Minutes

In recent times, food and grocery delivery startups and apps have upped the ante and there is now a cut-throat competition to fulfil such deliveries in as short time as possible. This has a positive impact on the organic food industry as these startups and food delivery apps also list the organic products in their offering. 

People wanting to buy organic foods can do it in a few clicks and get the products delivered within a few minutes to their doorstep, without any hassle.

Solutions For Pertaining Issues Related To Food, Health, Environment Sustainability

Tech startups are solving many problems at once by promoting organic foods. They are helping people overcome the issues related to chemical and fertiliser-infused foods by spreading much-needed awareness. 

Such foods cause long-lasting health issues and are a root cause of developing several complications within the human body. Other than that, the use of organic foods is very beneficial for the environment as the use of no chemicals does not impact the soil, water or air and gives a chance for the land to sustain itself for the next crop. 

It is a step ahead in the direction of environmental sustainability, something which is being promoted on international forums.

Using Technology To Reach Tier 3 Cities And Towns

A lifestyle change can only be considered complete and absolute for the whole population, when there is a vast outreach and people at the remotest level are impacted. This is why it is important to reach out to the people in Tier 2 and 3 cities. 

Technology plays a vital role in creating this outreach and communicating the benefits of organic food and creating both job and consumer opportunities at that level.

The post Disrupting The Plate: How Tech Startups Are Revolutionising Organic Food Distribution In India appeared first on Inc42 Media.

The United States’ decision to impose a new set of restrictions on the export of leading-edge semiconductor chips and equipment to China will significantly impact growth and earnings prospects for many companies. More importantly, the ripple effects will be felt far and wide.

The geopolitical backdrop to such measures is a complex tapestry of tensions, trade wars, and global conflicts. As tensions rise in different regions, the implications of geopolitical decisions are no longer confined to diplomatic circles. 

Instead, they reverberate throughout the business world, forcing companies to adapt swiftly. The geopolitical winds of change close market opportunities, create new ones, reshape supply chains, and incentivize / disincentivise different players in various markets. 

This underscores the necessity for companies to factor in policy and geopolitics more than ever before. This applies even more to startups.

Why Startups Win

Startups win against incumbents on nimbleness, agility, and fresh starts. They typically have better alignment in RPPs (resources, processes, and priorities) and are quicker to realign these with changing circumstances.

This combined with their ability to innovate from the ground up and focus on new markets (normally unserved or over-served customers), provides opportunities for disrupting industries.

It is critical that startups extend this agility and nimbleness to factoring geopolitics and policy in their decision making. An expanded consideration set should encompass not only their immediate ecosystems (of customers, suppliers, employees etc.) but the larger narrative and headwinds / tailwinds.

Identifying Levers of Policy

To factor the influence of geopolitics and policy, it is essential to understand the levers that governments deploy to influence / alter markets. These levers can be broadly categorised into six key areas:

• Incentives: Governments often offer incentives linked to particular activities (e.g., exports, investments, employment) or sectors (semiconductors, advanced cell manufacturing etc.)
• Public Procurement: Government procurement decisions adapt to global trade dynamics, domestic supply capabilities etc. potentially favoring domestic or preferred suppliers.
• Tariff and Non-Tariff Barriers: Global trade dynamics and industrial policy lead to alterations in trade and tariff barriers, directly impacting cost and availability. For instance, governments may impose tariffs on imports of particular goods, creating market advantages for domestic industries in specific sectors.
• Taxes: Tax policies are adjusted in response to evolving industrial policy, fiscal position etc. and can influence investment decisions, foreign capital, profitability, and competitiveness of industry.
• Standards: Revisions in standards and regulations shape industries by encouraging innovation, restricting outdated practices, and regularising industries.
• Trusted Value Chains: Governments may emphasise/enforce trusted value chains particularly for critical infrastructure to increase supply chain resilience and security, opening doors for companies that meet specific criteria.

Opportunities In India

We can apply this framework to the Indian context and see how policy has shaped market opportunities in the recent past. 

With the global realignment of supply chains (China Plus One) and the aspiration to develop domestic capability and capacity (Atmanirbharta), the Indian Government has deployed these policy levers at different stages in a bid to create domestic design and manufacturing ecosystems. 

While tariffs, standards and public procurement have been leveraged to disincentivise imports, incentives and favorable tax policies have been deployed to incentivise domestic goods. This has been most prominent in consumer electronics, electric vehicles, pharmaceuticals, and green energy.

With these ecosystems being built ground up while being anchored by global majors, there are opportunities across the value chain in design, manufacturing, recycling etc. 

A few low-hanging fruits include the software defined vehicle (SDV) stack, power electronics for industrial and automotive, IDH for consumer electronics, and grid forming systems for RE.

In Conclusion

In a world where geopolitics and policy significantly impact business operations, startups must adapt to survive and thrive. 

By understanding the levers of policy used by governments, startups can identify white spaces in the market and seize emerging opportunities quickly. 

To remain competitive, startups must not only act swiftly but also be forward looking, anticipating future course of policy. In doing so, they ensure continued success in a dynamic, ever-evolving world.

The post Geopolitics, Government Policy, And Startups appeared first on Inc42 Media.

In the constantly evolving ecommerce landscape, direct-to-consumer (D2C) brands struggle to stand out among a host of options available to consumers.

To achieve excellence and success in this highly competitive segment, designing a compelling brand identity, creating a seamless online experience, and executing impactful marketing strategies are essential. 

Let’s delve into crucial strategies to propel your D2C brand towards thriving success.

Creating A Distinctive Brand Identity

Building a successful D2C brand begins with designing a unique and resonant identity. Your brand identity should incorporate every aspect of your brand’s personality, including the logo, website design, and overall essence portrayed through your marketing efforts.

 It is also essential to understand your target audience and their specific requirements to create a brand that truly resonates with them. 

Designing a catchy and memorable logo and brand name that leaves a lasting impression in the minds of consumers can go a long way in this regard.

Designing A User-Friendly Interface

Your website serves as the virtual store for your Direct-to-Consumer (D2C) brand. Therefore, ensuring that it delivers a seamless experience to your consumers is imperative. 

To accomplish this, designing a user-friendly interface that facilitates effortless transactions is important. An uncluttered and visually appealing website layout that enhances user experience can do wonders in this regard.

Furthermore, it is essential to use precise and jargon-free language across all website segments for consumers to understand effortlessly.

Defining Your Marketing Objectives

Marketing plays a pivotal role in pulling traffic and driving conversions, and a well-crafted strategy that caters to your target audience can significantly enhance brand visibility and engagement. It is also essential to define your audience accurately and set clear marketing goals. 

Furthermore, consistently tracking and analysing the marketing metrics can help optimise your strategies and identify rewarding measures.

Ensuring Exceptional Customer Service

Customer loyalty is built on superior customer service, which plays an elementary role in nurturing lasting relationships and ensuring repeat business. 

Delivering robust training to your customer service team can help them manage diverse scenarios efficiently.

Delivering swift and clear responses to customer queries is essential in exhibiting that their concerns are valued and that you care about their satisfaction. 

By prioritising communication transparency and actively working towards resolving any issues, you can build a strong foundation of trust and loyalty with your customers.

Emphasising Quality And Innovation

Fostering confidence and customer loyalty is significant for your D2C brand. To accomplish this, you need to consistently provide high-quality products or services. Keep innovating and improving while staying up-to-date with market trends and consumer preferences.

Invest in research and development to ensure that your offerings align with consumers’ evolving requirements.

Also, consider embracing sustainability and ethical practices to not miss out on the environmentally conscious consumer segment. 

Be honest in your messaging, illustrate your commitment to quality and innovation, and do not hesitate to highlight any product advancements or improvements to build trust with your customers.

To thrive in the competitive market of D2C commerce, brands must not only execute strategies diligently but also stay agile in response to market shifts. 

Flexibility and adaptation are crucial for continuous refinement and evolution, and keeping up with consumer preferences and industry trends is of utmost importance. 

Embracing change as an opportunity for growth and consistently optimizing brand strategies will help D2C brands stay ahead of the curve.

The post Five Tips To Make Your D2C Brand A Huge Success appeared first on Inc42 Media.

Ecommerce has evolved from a novelty to an ingrained part of our urban lifestyle. It’s no longer just a trend; it’s a daily habit for many. As the ecommerce shopping experience has matured, it has settled into a standardised flow, providing a baseline of good user experience across most sites. The challenge now lies in rising above this baseline, in crafting a unique and compelling customer journey that not only captivates but also fosters unwavering loyalty.

In a landscape where everyone adheres to a common UX standard, where ease of use is a given, the question arises: How does one stand out? This dilemma is particularly pressing for challengers striving to carve their niche amidst giants like Amazon and Flipkart. The first challenge is to get the hygiene stuff right. Here are the set of nine core UX variables that have become non-negotiable in the ecommerce landscape today.

Core UX Strategies In Ecommerce

Streamlined Checkout Process: Make the checkout process as simple and intuitive as possible. Reduce the number of steps required and eliminate any unnecessary form fields. Provide clear instructions, progress indicators, and guest checkout options to minimise friction.

Clear Call-to-Action (CTA) Buttons: Use visually prominent and compelling CTA buttons throughout your site. Clearly communicate the desired action, such as “Add to Cart” or “Buy Now.” Use contrasting colours to make the buttons stand out and ensure they are easily clickable.

Social Proof and Reviews: Display customer reviews, ratings, and testimonials prominently on your product pages. Social proof helps build trust and confidence in your products or services, increasing the likelihood of conversions. Consider integrating social media feeds or real-time customer activity to showcase user-generated content.

Personalised Recommendations: Leverage user data and browsing behaviour to offer personalised product recommendations. Display related items, recently viewed products, or popular choices to help users discover relevant products more easily, increasing the likelihood of making a purchase.

Simple Navigation: Optimise your site’s navigation to make it intuitive and user-friendly. Use clear categories, filters, and search functionality to help users find products quickly. Implement breadcrumb navigation to provide clear paths and allow users to easily backtrack.

Compelling Product Imagery: Use high-quality product images to showcase your products from different angles. Incorporate zoom and 360-degree view options to provide a more immersive experience. Visual content plays a crucial role in capturing users’ attention and driving conversions.

Zero Distractions: Reduce clutter and eliminate unnecessary elements that might distract users from making a purchase. Maintain a clean and focused design that directs attention towards product information, pricing, and the checkout process.

Seamless Customer Support: Make it easy for customers to contact you and get assistance when needed. Implement live chat, chatbots, or a prominent customer support link to address any queries or concerns promptly. Providing excellent customer support can help build trust and overcome potential barriers to conversion.

Continuous Improvement: Remember, continuously monitoring user behaviour, conducting A/B testing, and gathering feedback are crucial to identify areas for improvement and optimise the user experience on your ecommerce site.

UX Strategies To Get An Edge Above Competition

These 9 UX strategies are extremely important but they will not get you ahead of your competition. All they will do is ensure that you stay on par with everyone else. 

However, if you want to go beyond getting the hygiene stuff right, here are three ecommerce UX secrets for maximising conversion & satisfaction that can give you an edge over your competition…

Go beyond FAQs

Bye FAQs, hello RAQs. RAQs are rarely asked questions: questions people don’t ask but are definitely concerned about. Unlike FAQs, RAQs take on the most uncomfortable user questions head on. Here is an example of an RAQ section, ZEUX Innovation designed for Art of Living to maximise online purchase of meditation programs…

Addressing uncomfortable or rarely asked questions can be very effective for building trust and increasing conversions on ecommerce sites because it… 

• Demonstrates Transparency and honesty: This in turn builds trust with potential customers who appreciate brands that are open and willing to address difficult or sensitive topics related to their products or services. 
• Handles Objections: Unaddressed concerns or doubts can create barriers to conversion. By proactively addressing uncomfortable questions, you help alleviate potential objections or hesitations that customers may have. 
• Creates Differentiation from Competitors: Many ecommerce sites only focus on addressing frequently asked questions (FAQs). By going beyond the usual and addressing uncomfortable or rarely asked questions, you differentiate your brand from competitors. 

Make Imagery More Human

As far as possible, include people (especially faces) along with product imagery to make a more emotional connection with customers. For example: showing a shoe on someone’s foot is more effective than just showing a shoe by itself.

The human element helps potential customers visualise themselves using the products, leading to increased interest and a higher likelihood of conversion. Showcasing people using or wearing your products, also provides context and demonstrate how the products can be used in real-life situations. This helps customers understand the scale, size, functionality, or fit of the products, making their decision-making process easier. Seeing products in action through the presence of people can enhance the overall understanding and desirability of the products.

Including people in your product imagery can help convey your brand’s identity and tell a compelling story. By showcasing individuals who represent your target audience or embody your brand values, you can establish a stronger connection with potential customers. This can create a sense of belonging and alignment, encouraging customers to choose your products over competitors’.

Leverage The Short Video Format

Go beyond imagery, leverage the power of short videos. It’s the medium of choice for the TikTok generation. Short videos have quickly emerged as the most common format for content consumption on social media platforms.

Videos can be more effective than static imagery in certain cases for ecommerce conversion. Videos allow you to showcase your products in action, demonstrating their features, functionality, and benefits. This can provide a more comprehensive understanding of the product compared to static images alone. 

Videos have the potential to captivate and engage users more effectively than static images. They can convey emotions, tell a story, and create a deeper connection with the audience. Videos can provide a 360-degree view of the product, giving users a better understanding of its appearance and dimensions. This can be particularly beneficial for products where visual details are essential, such as fashion items, home decor, or electronics.

A combination of both videos and high-quality images can often yield the best results, allowing you to cater to different customer preferences and provide a more comprehensive visual experience. 

The 1% Edge

In the ever-intensifying arena of ecommerce, the pursuit of success transcends the quest for a singular billion-dollar idea—it’s about harnessing the power of a billion one-dollar ideas. Enter the realm of RAQs, human imagery, and short videos—these aren’t just features; they’re the game-changers that can redefine the trajectory of any ecommerce platform.

In a landscape where good UX has become the standard, the strategic implementation of tactics that offer a swift yet impactful 1% edge becomes invaluable. It’s not just about keeping up; it’s about seizing those nimble opportunities that elevate your platform above the rest.

The post UX In Ecommerce: Strategies For Increasing Conversions And Customer Satisfaction appeared first on Inc42 Media.

Tech-enabled innovation has become crucial for sustainable growth and efficiency in the agricultural landscape. India’s agritech sector is booming with startups building innovative solutions to revolutionise agriculture.

However, the journey from ideation to implementation requires substantial financial backing. This is where Agricultural Non-Banking Financial Companies (Agri NBFCs) come into play serving as integral enablers for these ventures.

Agricultural Financing Landscape 

Agritech startups have unique business models focused on increasing productivity, efficiency, and transparency across the agricultural value chain. India’s agritech sector is projected to grow to $24 Bn by 2025. However, their innovative solutions come with execution risks that make banks and other institutional lenders hesitant.

Agri NBFCs are strategically filling this financing gap. Their specialised sectoral expertise allows for more customised risk evaluation and products like revenue-based financing. 

By understanding the unique challenges faced by startups, these financial entities are becoming strategic partners in the growth journey of agritech ventures. NBFCs ability to offer quick and flexible financial solutions allows startups to focus on research, development, and implementation rather than being bogged down by financial constraints.

Employing Risk Mitigation Strategies

Over 1300 agriculture startups In India are actively using artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), and other technologies to boost efficiency and productivity in the sector. By their very nature, agritech startups carry significant business risks given their exposure to agri value chain disruptions. 

Managing risks across such a fragmented landscape requires localised knowledge and tailored solutions. Agri NBFCs mitigate these risks through calibrated capital infusion aligned with milestones, extensive due diligence of promoter credentials, and deep sectoral knowledge to identify viable business models. Revenue-based financing models with variable repayments as per cashflows also ensure risk sharing. 

The regulatory push for priority sector lending is also expanding the role of Agri NBFCs. Still nascent, the agritech financing space offers immense potential for growth and impact.

Empowering Farmers Through Simplified Financing

With approximately 70% of small and marginal farmers deprived of formal credit, digital lending can transform access. Agri startups, in collaboration with Agri NBFCs, are playing a crucial role in empowering farmers. 

By establishing digitised systems and ensuring a hassle-free application and approval process, these initiatives simplify access to loans for farmers. This not only fosters financial inclusion but also contributes to the adoption of sustainable agricultural practices. 

Easy access to funds can be used for machinery and equipment, cutting-edge irrigation techniques, and other elements of the agricultural value chain. Farmers can invest in modern technologies and practices that enhance productivity, reduce environmental impact, and improve overall livelihoods.

Using alternative credit evaluation models based on agricultural cash flows and digital data, digital lending platforms by NBFCs are providing faster approval and disbursal. This tech integration not only enhances the efficiency of loan disbursals but also facilitates a more accurate evaluation of risk, enabling Agri NBFCs to make informed lending decisions. 

This in turn, makes obtaining funds easier for farmers, especially for those deprived of institutional credit. It delivers significant socio-economic benefits while advancing financial inclusion.

The operations of Agri NBFCs and their role in fostering innovation are greatly shaped by the regulatory environment. India’s Budget 2022-23 includes measures to support ‘digital agriculture,’ and there are plans to introduce a fund with blended capital aimed at financing startups in agriculture and rural enterprises, particularly those emphasising the farm-produce value chain. This initiative is expected to open up favorable financing options for agritech ventures.

The Road Ahead

The future of agritech financing is poised for significant transformations. Agri NBFCs are expected to witness substantial growth as more startups enter the space. Emerging financial models, such as revenue-based financing and impact investing, are likely to gain prominence. Additionally, advancements in financial technology will continue to shape the landscape, making financing more accessible and efficient for agritech startups.

Technology integration through digital platforms and big data analytics will continue reshaping the agricultural financing landscape making credit accessible to all stakeholders, especially farmers. With the growing convergence of agritech and financing, data-based credit evaluation models can expand financial inclusion for Indian farmers in the coming years. 

The post Unlocking Agri Innovation: The Role Of Agri NBFCs In Financing Agritech Startups appeared first on Inc42 Media.

India has come out of a deficit monsoon and barely escaped a drought year. Despite 5.6% deficit in overall rainfall numbers (820 mm against average normal rainfall of 860 mm); monsoon in the year 2023 at best can be called as erratic, across months as well as across regions. 

While the month of June was deficit (-9%) July witnessed surplus rains (+13%), August saw biggest deficit ever (-36 %), thankfully September rains (+13%) had something to cheer. 

The regional and seasonal monsoon volatility is not a one-off event anymore but becoming a pattern from one year to another. The weather vagaries are not limited to India alone. 

Europe has experienced heat waves like never before. The Hawaiian and Canadian wildfires are a testimony to the looming dangers to the biodiversity of the planet earth and humanity at large.

There is no sector of the Indian economy, which is immune to the climate changes. However, one of the most adversely impacted sectors continue to be agriculture as reflected in stagnating or declining productivity of the major crops. 

It is fair to say that the sustainability of agri and food supply chain going forward depends on the acceptance and mitigation of climate risks, complemented by actions for building enough climate resilience and adaptation mechanisms amongst value chain actors.

The smallholder farmers (about 120 Mn in India and over 500 Mn globally) clearly share a disproportionate risk of climate changes than any other value chain player. 

The consumers at the other end of the supply chain are equally vulnerable, but have not realised the impact in equal measures as much as farmers; thanks to the sustained food security and supply, even during pandemic years. 

However, if perennial food inflation is an indicator to go by, the consumers cannot take food availability for granted forever. 

The ongoing COP28 deliberations are likely to sharpen focus on policy drivers and collaborations to drive sustainability in the food sector. 

India being one of the largest food producers and consumers has an added responsibility to drive the policy narrative at the global stage.

In this context, it’s time we start building a strong policy agenda as well as a vibrant innovation ecosystem addressing climate challenges in Indian agriculture. An enabling policy along with disrupting climate innovations is the need of the hour. 

This article profiles some of the innovations in the agri-climate-tech space and how building a “public digital good specific to climate” for agriculture can catalyse the entrepreneurial ecosystem, to the benefit of farmers and other food value chain participants.

Arrival Of Climate Entrepreneurs

Over last few years, there are enough deliberations at the industry and policy level to make food supply chain climate-resilient. The policy prescriptions and industry actions need to match with the emerging entrepreneurial energy to bring the desired change.  

Thankfully, the sheer number and quality of entrepreneurs, trying to build business models to fight climate change are growing in proportions and that to me is the biggest hope to solve for the climate challenges that lies ahead for agriculture in India and globally.

If one looks at the history of Indian agritech, the dawn of agritech in India happened about 15 years ago but climate-tech remained peripheral to it for over a decade. It’s only in the recent past that climate-tech is becoming more nuclear and integral to agritech, not only to entrepreneurs’ business models but also to the investors’ thesis.

This is driven by entrepreneurs’ realisation that climate-tech and agritech are not binary but essentially two sides of the same coin. Resource optimisation and unit economics go hand in hand in value creation for unlocking VC-friendly returns. It is fair to say that the winning models in agritech will have climate resilience as one of the key foundational layers.

Also, many customers and users of agritech especially the large food companies like Unilever, Nestle, Danone, Olam etc and retailers like Amazon, Walmart have made commitments publicly on making the supply chains net-zero over next 2-3 decades, so these companies have no option but to partner with their supplier base to honour their commitments. 

The downstream players of the food value chain (retailers, food brands) which so far have largely remained oblivious to the challenges of the upstream players (specifically farmers), are realising the need for supply chain integration, more accountability, higher transparency and end-to-end traceability. 

The climate crisis can possibly cure for the perpetual bipolar disorder of food value chain by bringing the “food” and “agri” ends closer.

Landscaping Climate Tech Innovations In India

The canvas of innovations in agri-climate-tech is still evolving and irrespective of how much one paints; parts of the canvas will still look blank. 

Let me still attempt to put a brush around the type of innovations the agri-climate space is witnessing. 

Broadly, they can be segmented into three buckets- “largely digital”, “largely physical” and “supply chain innovations”.

Largely Digital

These innovations typically include capturing data about weather, soil and plant health from multitude of sources such as whether stations, satellites, drones, sensors, IoT devices, scanners, smart phones etc. The evolution of hardware devices along with growing data modelling capabilities is at the core of such innovations.

The use cases of such digital solutions are essentially in climate risk mitigation including farmer advisory to reduce crop loss; estimate losses on account of flood/ drought; estimate soil nutrition and moisture for optimising fertilizer and water use; build climate-linked lending and parametric insurance products, traceability solutions that can potentially facilitate carbon trades using audited and verified data points; cattle health management for nutrition efficiency resulting in less methane emissions etc

The examples of startups in this category include SatSure, CropIn, Leads Connect, RMSI, Bharat Rohan, Frugal Labs, Borlaug Web Services, Agnext, Boomiitra, Stellapps etc. This category has seen VC interest but data monetisation at scale remains a challenge despite relatively better margin profile.

Largely Physical

These solutions include a variety of physical interventions including products, devices, machines, biologicals to drive climate resilience. 

The use of dehydrators, cold rooms, bulk coolers, CA storages, silos for reducing post-harvest losses; urea deep placement machines for optimising urea consumption; hydrogels for water use efficiency; bio stimulants, plant extracts, drones for minimising use of agrochemicals; bore chargers to improve water table; polyhouses for resource efficiency etc would fall into this category. 

Some of these physical interventions also have complementary digital tools for better efficacy of solutions like sensors / IoT devices in cold rooms, greenhouses or optical cameras mounted on drones.

Some examples in this category would include likes or S4S Technologies, Promethean, Inficold, Ecozen, Rukart, EF Polymer, GreenPod, Absolute, Bioprime, Sea6 Energy, Marut drones, Urdhvam, Distinct Horizon, Kheyti, Takachar etc. 

This category of startups needs impact / catalytic capital/ blended finance support at the beginning of their journey before venture capital kicks in. Both margin and scale potential in this category is in the moderate to high range.

Supply Chain Innovations

These include tech-enabling supply chains for dis-intermediation to align supply with the demand. The market linkage startups operating in the – whole or parts – of farmers-to-consumer value chain, such as WayCool, DeHaat, FarMart, Samunnati, Falca, Bioveda, Innoterra, KisanKonnect, Maalexi, Mango Dairies, Digigrain are some of the examples. 

Though the primary thesis for this segment of startups has been around building demand-driven tech-enabled supply chains, but in this process, these business models have contributed to shrinking food losses / waste thus improving climate resilience of food supply chains.

Likewise, factory-to-farm models focused on supplying quality inputs to farmers, riding on prescriptive farmer advisory models, end up optimising use of agri-inputs including chemical fertilizers, agrochemicals and water. Startups like Agrostar, BigHaat, Behtar Zindagi, Unnati, Upaz, Freshokartz, Hesa would fall into this category.

As many of these supply chain platforms are gaining scale, manging hundreds and thousands of tonnes of food on daily basis; they are also becoming carriers, platforms or super-apps of climate innovations in the- digital and physical categories – as described above. 

This category of startups has attracted the maximum amount of capital in the last decade invested in the Indian agritech (about 80% of the total $3 Bn plus VC investment). This segment of startups has demonstrated scale but margin improvement for many of them still remains work in progress.

In addition to the above three buckets, another category in climate innovations includes the package of practices (PoP), mostly driven by universities, research institutions and corporates. 

PoPs have been existent for many years before the arrival of climate startups. These PoPs include drip irrigation, direct seeding of rice, zero tillage practices, ethanol production from agricultural byproduct, use of biodigesters, conversion of stubbles to biochar / fuel / packaging, use of cattle feed additives etc. 

Many of these practices have been adapted in parts but need more policy push along with entrepreneurial energy for mass adoption by farmers.

It’s Time To Build Climate-Stack For Indian Agriculture 

Though there are plethora of innovations as discussed above in the climate-tech space; they are still far from wide scale adoption, required for catalysing a large-scale disruption to get closer to net-zero targets. 

Given the gravity of climate problems and the need for urgency to solve for climate challenges, it’s time to think about building a climate stack for Indian agriculture (we can name it as “Clistack” for the lack of a better acronym or word). 

Though other segments of the economy also need a climate stack as much as it is needed for agriculture but probably agriculture needs it more urgently than any other sector.

So, the question is what could be the components of the Agri-clistack, potential use-cases and its ability to catalyse climate innovations at scale to drive climate risk mitigation, resilience and adaptation.

Components Of Clistack

The three most important parameters impacting the agriculture sustainability are: weather, soil and water from climate perspective. 

Though it requires debate and rigorous technical discussions on whether these three variables are good enough to build a clistack; nonetheless these three variables can make a good start. 

The best part about these three variables is that there is tech available to measure these variables accurately, at scale, at requisite granularity and almost in real-time.  The hierarchy and weights of sub-parameters of these three variables needs further technical discussion.

Figure: Proposed Clistack Architecture

Weatherstack comprises of variables such as rainfall, temperature, solar radiation, humidity, wind direction and speed which impact crop health, production, harvest, storage and shelf life of farm produce.  

All weather parameters can be captured through weather stations and some through satellites. Indian Meteorological Department (IMD) along with many private players like Skymet, WRMS have set up thousands of weather stations across India and also use remote sensing for weather data capture and prediction.

The almost-real-time transmission of data from weather station to a central server/ cloud is possible. Many new AI tools are being developed for processing and disseminating the weather data. Skymet recently launched a conversation product using Generative AI where farmer can get voice based customised weather advisory. The government of India is also targeting to cover the entire country with Doppler radars for accurately predicting extreme weather events.

Soilstack

Soilstack comprises parameters impacting the crop production including soil nutrition – macro nutrients (Nitrogen, Phosphorus, Potassium, Calcium, Magnesium, Sulphur). Micro nutrients (Zinc, Iron, Cobalt, Manganese, molybdenum, Copper, Chlorine, Boron), organic matter, soil pH; electrical conductivity, microbial count.

The Government of India has set up a network of soil testing labs (about 11,500) to provide advisory to farmers on use of fertilisers and nutrient use. Some of the private sector companies especially those in the fertiliser business have also set up their soil testing labs. 

However, many soil testing labs are non-functional. Building a strong soil testing infrastructure along with the digitisation of soil data can go a long way in enabling the soilstack platform.  

In the last few years, we have seen surge of many soil testing startups such as Krishitantra, Bhu-Parikshak from Agronxt (rapid soil testing technology developed by IIT Kanpur), Neoperk, Soilsense, Ekosight etc.  

The portable machines / devices developed by these startups can give results on some of the vital parameters of soil health in a matter of minutes.  The new-age technologies riding on portability of devices, accessibility to farmers and affordability will complement in building the soilstack.

Waterstack

Waterstack can technically be part of weatherstack (as major contributor of water for agriculture is rainfall) or could be part of soilstack (as soil moisture / ground water is another major source). 

However, given the sensitivity and the quantum of water consumption (80% of water available in India is used for the purpose of agriculture – estimated at about 800-900 billion cubic meters) along with low water use efficiency (<50% in many crops), it may be good idea to keep water as a separate parameter for the attention it deserves. 

There are enough innovations to measure water availability in soil at surface and sub-surface (root zone) level. The use of sensors and IoT devices can accurately measure the water availability in the soil to estimate quantum of water / timing of irrigation. 

Even satellite imagery can detect surface level moisture. There are many startups in India such as Cultyvate, Sense it out, Satyukt and even irrigation companies like Netafim, Rivulis; have built their proprietary tech stacks to measure soil moisture to improve water use efficiency through better irrigation scheduling, precision irrigation and fertigation. 

To summarise, the technology (both hardware as well as data analytics capabilities) has advanced enough for measuring weather, soil and water parameters to enabling a pan-India data-driven clistack. 

However, the penetration, distribution, density of the hardware devices needs a scientific architecture. The algorithms and units to measure and report data needs standardisation / uniformity to bring clistack alive. 

The question is the granularity and frequency of data collection for the purpose of building clistack. The weather data is unlikely to change significantly within a village though there could be farm-to-farm variations for soil as well as water parameters.  

However, “a farm as a unit” may be bit too ambitious to begin with hence “a village as a unit” could be a good starting point in building this stack. The frequency of weather data collection could be daily whereas the frequency for soil and water data could be once in crop season (3-4 months). This is because of higher time sensitivity of weather data as compared to the other two. 

Given the reducing cost of hardware and improving data analytic capabilities; the investment required to build and maintain stack is not going to be significantly large. 

A lot of these investments have already been made but there could be hardware / software gaps from a stack perspective which needs to be filled. Also, there is need to build frameworks as well as an institution to conceive, build, maintain, regulate and open-source clistack for potential users.

Another positive characteristic of clistack is that there is no personal data involved, hence hopefully the concerns around data privacy are limited as compared to other stacks where personal data is integral to stack.

Use Cases Of Clistack

Though I believe there could be many use cases of clistack for the government as well as private sector, the top five most-obvious use cases are as follows:

Farmer Advisory

Farmers in India are getting digitally literate. A recent report on “State of the Digital Agriculture Sector” published by Beanstalk states that there are about 50 million farmers in low- and medium-income countries actively using digital tools out of which over 50% farmers (about 27 million) come from south Asia region, with as much as 86% farmers (out of 27 million) are from India. 

This implies that about 10-15% of Indian farmers are already using some digital tool for the purpose of accessing market linkage, advisory, price discovery etc.

The ability to collect, analyse and report data at scale, in a form that can be useful to farmers, is possible with the use of clistack. The improved penetration of digital tools and smart phones among farmers can make the transmission of the data to the farmers almost in real time. 

The data about weather, soil and water geotagged to farmer location/ village can seamlessly be integrated from the point of data collection to each and every village, resulting in pragmatic insights for the farmers. 

The layering of clistack over agristack (another important stack which is under development by the government) can enable farm / farmer specific personalised advisory.

Climate-Linked/ Green Financing

This has often been talked but rarely practiced because of lack of necessary data, digitisation and regulatory framework around it. Clistack can provide authenticated and standardised data sets to bankers to assess climate risk for the purpose of underwriting.

The Climate Risk Index (CRI) can be built in as a derivative index of clistack, which banks can use for developing climate-linked lending rates, at least at the village level. 

The personal credit score of farmers calibrated to CRI could potentially determine the farm lending rates, hopefully giving enough incentives to farmers / farmer group / FPOs within a village to collectively reduce CRI. 

CRI reporting could potentially lead to healthy competition among villages to adapt good climate practices to lower the value of CRI (like city ranking as part of “Swachh Bharat Abhiyan” has triggered competition among cities for cleanliness)

Parametric Insurance

The sachet insurance products linked to weather or climate to derisk farming are in demand. It has already been demonstrated by startups like IBISA, WRMS, Gramcover who are developing and distributing such products to farmers. 

The scale of parametric insurance products depends on getting the requisite data from multiple sources for product development, calibrating risk, ascertaining premiums and distributing the insurance products through partners in rural areas.

Clistack can help build parametric insurance products at scale. It will also assist startups in developing customised products for farmers given the granularity and frequency of data which can be made available through clistack. Agristack data can be used for selling and distributing these products.

Policy Development

India is the third largest emitter accounting for 7% of GHG emission. The government of India has committed to the net-zero target by 2070 that needs a series of actions to reduce GHG emission. 

India has the challenge as well as a unique opportunity to be the first few or the only country in the history of transitioning economies from developing to developed country; to demonstrate 6-8% YoY GDP growth with the least usage of fossil fuels.

Agriculture is one of the prime contributors of GHG emissions (about 14% of GHG emission comes from agricultural activities in India). 

The Government of India already has the National Action Plan for Climate Change (NAPCC) and many schemes for sustainable growth of agriculture. 

Clistack can provide the necessary data (by crops, geographies) which can help policy makers to prioritise action points to reduce emissions. 

The government is also promoting crop diversification schemes incentivising farmers to move from crops like paddy to maize / millets which are less resource intensive. 

Such policies can be made more effective with time series data coming from clistack, by measuring the impact of such policies.

The Priority Sector Lending (PSL) regime for agriculture (mandated at 18% of outstanding credit by banks) to enable institutional credit to farmers and agri value chain players could potentially build incentives for farmers for climate adaptation by linking lending rates / repayment to it. The regulatory framework for carbon trades in agriculture could be based on clistack data.

The loan waiver management policies for farmers could also be guided by clistack, for example if CRI (a proxy for climate risk) increases by 50% in a season due to poor weather / soil/ water; it makes a case for loan restructuring / waiver amongst farmers affected by such events.

Demand Supply Alignment

While the food demand does not change overnight; supply of food gets impacted by seasonal variations and regional arbitrage which in turn gets impacted by the climate changes. Clistack data, triangulated with other data points, could be used in estimating production and supply of a given commodity at a given point of time from a given geography. 

This can help in preventive and corrective actions to bridge demand supply gaps mitigating the unreasonable / inflationary price shocks for consumers as well as farmers.

In Conclusion

The enormity of impact of the above use cases for farmers, consumers, government and value chain players make a strong case for building clistack and as mentioned earlier given its non-personalised character with significant infrastructure already in place, it should not take significant effort or investment to build it.

The effort is required in building the policy architecture, standards, necessary physical / digital infra to cover each and every village of India to begin with. The investment required is incremental and insignificant in the context of the benefits that will accrue. 

India over the years has evolved as the world’s capital of “digital public goods” (UPI, ONDC, OCEN, Agristack etc to name a few) and clistack could be another stack where India can take the lead. 

Clistack is not only required for Indian agriculture’s sustainability but also is relevant for the resilience and longevity of global agri and food systems. The government can partner with startups even for building and maintaining clistack as we have seen in the pilot stages of agristack.

What does clistack mean for startups and investors?  – It will create an ocean of innovations around climate risk mitigation, climate resilience and adaptation in the food value chain. Startups, instead of spending VC money on creating proprietary stacks, could ride on clistack to construct interesting APIs without worrying about data collection and validation. 

Intersection of clistack and agristack will help build many farmer-centric innovations with significantly low first / last mile cost with negligible CACs. 

Investors hopefully will see a healthy deal flow, propelled by this stack, to figure out compelling investable business models for 20% plus IRR returns. 

Climate tech investment opportunities in agriculture which are hard to find in the current environment, can potentially become mainstream in a matter of a few years. 

Global and Indian investors will witness a new asset class in agri climate-tech space which can generate IRRs to the liking of VCs and PEs, potentially matching or even outperforming the returns delivered by conventional sectors/ themes.

The post Time To Build Climate-Stack For Indian Agriculture appeared first on Inc42 Media.

For decades, the private equity and venture capital (PE/VC) sector has been characterised by a lack of gender diversity. A historical glance reveals the industry’s roots in western markets, where it took shape with strong ties to old family wealth. 

Since finance has been a male-dominated arena for centuries now, the reigns of the PE/VC industry have been predominantly with men. A noticeable shift has occurred in the last decade, with an increasing number of women making their mark and reshaping the dynamics of this ecosystem.

Among the earliest trailblazers who challenged the traditional norms was Muriel Faye Siebert. Her groundbreaking achievement as the first woman to own a seat on the New York Stock Exchange (NYSE) in 1967 marked a turning point in the industry’s history. 

This accomplishment, along with her distinction as the first woman to lead an NYSE member firm, set a precedent for future generations looking to break into the finance sector. Just a few years later, in the 1980s, Barbara Vogelstein made a mark by becoming the first-ever woman venture capital partner. 

As a partner at Warburg Pincus, Vogelstein’s career trajectory shattered barriers and demonstrated that gender should never be a limitation in pursuing success in the PE/VC landscape. 

A Shift Towards Gender Inclusivity

While we have had a few exceptional women break through, gender representation of the industry continues to be skewed in favor of men. According to Preqin, the proportion of women working in the asset class was 19.7% in 2019 and 20.3% in 2020. Representation of women in the industry went from almost negligible in the 1960s to one-fifth of the industry’s workforce in 2020. Progress, though slow.

Recent years, especially on the back of the #MeToo movement, saw heightened awareness about DEI that has catalysed action in companies across the world. The PE/VC industry has not been untouched by this increased focus on DEI, especially when it comes to gender diversity. 

Women are gradually garnering senior positions in the industry, and more than before, are venturing out to raise their own funds. While women investors are making their place in the PE/VC industry, gender disparities still exist.

The Unconscious Gender Bias Still Exists 

70% of PE/VC fund managers have all-male senior leadership teams. Only 2.4% of women are founding partners with control over the firm’s capital. And the percentage of women across the industry workforce continues to hover around 20%, having seen a marginal dip in pandemic years.

Interestingly, women’s participation in PE/VC is much behind that in traditionally male-dominated industries like manufacturing and infrastructure. While manufacturing boasts 25% women in leadership, around 19% of leadership positions in the infrastructure sector are held by women. 

Representation of women in leadership roles in the PE/VC industry is much lower at 14%. Even though gender inclusivity is becoming a practice across sectors, there continue to be traces of deep-rooted biases that portray men as better suited for managing finances and financial ventures.  

Research and experience have established that women  are as skilled at handling startups, finance, capital and business decisions.  Per the report “Creating 10X Women Founders in India”, 18% of India’s 28,000 active technological start-ups had female founders or cofounders. 

Per the same report, 18% of unicorns in India have female founders or cofounders. The report also shows that female founders have the same success rate as male founders and that women led unicorns provide employment and income at a similar rate as those founded by men. Point made. 

Taking this forward, research has also established that diversity leads to better decision making and consequently, to better financial performance. Per the IFC 2019 report, companies with diversity leadership teams gets to higher valuations in a shorter period of time. 

Breaking The Glass Ceiling

It is clear that fostering inclusive growth in the PE/VC and startup ecosystem will lead to better overall outcomes, both financial and non-financial. It is not surprising that key stakeholders and especially institutional investors are increasing the emphasis on enhancing DEI efforts. 

Firms in the PE/VC space have introduced initiatives to build the diversity agenda in their teams and portfolio companies – including increased female representation on boards, access to mentorship programs for women, and adopting gender diversity as a priority for the workforce.  

As we look to the future, it is crucial to continue dismantling the barriers that hold women back. Supporting women in key decision-making roles, nurturing their entrepreneurial spirit, and providing equal opportunities will foster an environment where women can thrive. 

With increased representation and concerted efforts, the PE/VC industry has the potential to become a catalyst for inclusive growth, driving stronger economic outcomes and creating an equitable and diverse ecosystem.

The rise of women in the PE/VC industry is not just a matter of statistics; it signifies a fundamental reimagining of the industry’s composition and culture. The time for change is now, and together, we can build a stronger and more inclusive entrepreneurial landscape.

The post The Rise Of Women In The PE/VC Industry appeared first on Inc42 Media.

We are in an era where we are seeing an unprecedented scale of creative destruction tipped off by technology, specifically Generative AI. With the Global South being placed at the intersection of great potential, great talent, and great technology, Generative AI is playing the role of a catalyst which will expand this intersection to unlock the next level of growth for the global South. However, it needs to be done now.

A recent McKinsey report reveals that over 60 percent of companies in the global south have used AI for at least one business function. In fact, in India alone, an integrated adoption of artificial intelligence (AI) and data utilisation strategy can add $500 Bn to its GDP by 2025.

While the opportunity is huge, the opportunity cost of delaying the adoption of GenAI is equally high. Enterprises can lose out on 50% of cost savings and 100% of productivity gains every year if they delay the adoption of this technology for their workforce management.

The Crippling Cost Function of Workforce Management

For an enterprise, except their product, everything else is a cost function with frontline workforce management being one of the largest. On an average, an enterprise has to go through fifteen profiles to hire one candidate for the job, coupled with high attrition rates in the industry, the cost-per-hire rate for enterprises is as high as $250. 

Factoring in the scale at which most enterprises operate, an average of $3 million is spent every month by enterprises just to get the right people in. This cost is compounded when you add elements like training, productivity management, distribution of benefits etc. to the mix. Further add in the elements of low productivity of the labor force in the countries of the global south and the magnitude of inefficiency is made evidently clear.

While there are robust solutions to manage the inefficiencies and leakages, they are first, designed to manage white-collar workers which devoids them of the ability to manage the scale of frontline workforce management. 

Second, they lack customization and try to manage inefficiencies through standardization. What is needed is a systemic change in the way we manage work. This can be done by moving away from a process oriented mindset to an individual oriented approach and GenAI can enable this at scale.

GenAI And The Era Of Individualistic Workforce Management

The problem with a one-size-fits-all model of workforce management has a fundamental problem. It is a macro solution to a micro problem. The inefficiencies at an enterprise level is a cumulation of problems at the individual workforce level. 

However, up until now, the enormous scale made it close to impossible to solve the problem at an individual level. With the advent of GenAI this can be done through a three-pronged approach of automation, optimization, and generation.

Despite great technological advances, most of the processes in workforce management are still manual. Hence it becomes imperative to first automate the existing manual processes and GenAI can do this more efficiently than any other tech innovation. 

Take the example of hiring workers. As mentioned earlier, HR teams have to sift through fifteen resumes to hire one worker, which means that if an enterprise wants to hire 1000 people in a year, the HR teams would have to go through 15,000 resumes. 

GenAI has the capability to automatically parse hundreds of resumes of potential candidates, create a summary of their skills, rank them in terms of relevance to the current job being sourced and match them across different jobs open for hiring.

The second step is optimization. While automation brings in some level of optimization, certain inefficiencies still remain due to various factors. For example, GenAI can automate the shortlisting of candidates but might face inefficiencies during the interview and assessment phase like scheduling of interviews, language barriers, human biases etc. 

GenAI can optimize this through Large Language and GPT Models. These models can be integrated into WhatsApp and Telegram APIs to send out customized tests to applicants which are self generated, record the responses, and grade them based on different criteria. 

It also has the capabilities to assess, record and interview in multiple different languages to suit different contexts. All of this without any human intervention. What would have taken 450 man hours to complete is done within 15 minutes.

The last step is generation and this is where GenAI models like GPT and DALLE-3 have a significant edge. These models can automatically analyze the workforce productivity data which granular up to the individual level, assess the pain points, and basis this create customized solutions for the same. For example, skilling which is one of the most cost intensive activities for an HR team can be fully automated.

DALLE-3 models, with a few prompts, can create robust video skilling courses which are customized based on the individual worker’s preference and then distribute it to them on their mobile devices, and also assess the progress.

Similarly, GPT models can be used to help ground workers with on-duty support when they have any queries. An electrician can add in a question on how to fix a certain instrument and the model can give out relevant answers in the best format be it written or audio visual, instantly.

The use cases of GenAI are enormous and we are still at the tip of the iceberg when it comes to exploring these use cases. With more organizations getting on board, the models would become more robust adding more to productivity gains, reshaping workers and the nature of work itself. The future of tech adoption for enterprises in India looks bright, only if we all act fast.

The post How Gen AI Is Transmuting India Inc’s Tech-Work Landscape appeared first on Inc42 Media.

This past year, if there’s one conversation that has dominated living rooms and boardrooms, it is how the widespread adoption of artificial intelligence and automation technologies will impact jobs across industries. 

In fact, according to Randstad’s Workmonitor quarterly pulse survey released recently, Indian employees are more wary of losing their jobs to artificial intelligence (AI) than their counterparts in developed countries like the US, UK, and Germany. 

At least one in two Indian employees are worried about losing their jobs to AI compared to one in three in developed countries.

At the same time, India’s tech talent remains in high demand globally, with a longstanding reputation for providing top-notch software development professionals. 

But can India achieve the economic growth it dreams of with the current skills that its tech employees have? The answer is a resounding NO.

The need to upskill India’s tech talent is critical. Why? Because India has perhaps the most to gain or lose when it comes to the impact of Generative AI. A survey by ServiceNow found that India faces a critical need to upskill 1.62 crore workers in AI and automation, creating 4.7 million new jobs in technology by 2027 to meet the nation’s skill deficit. 

This transformation is essential, given the potential of AI and automation to contribute up to $500 Bn to India’s GDP by 2025.

Given that India boasts the world’s largest youth population, with approximately 66% of its total population below the age of 35, and the expansive reservoir of young talent here being predominantly middle class, upskilling the youth and preparing them as the workforce of the future is the need of the hour. 

But how will these students afford this upskilling? Here’s where a ‘Pay after Placement’ model can fundamentally alter the dynamics of learning. This model empowers students with practical skills, making them job-ready before any financial commitment to their education. 

Regardless of background or socio-economic status, a student can access a transformative learning experience if the traditional education model is redefined to emphasize making the student successful and not prioritizing the success of the institute.

Now, the question is, can Generative AI help train such a large young population? Yes!  This technology can create personalized learning paths. With modules integrated with AI to optimize outcomes, students can learn better with real-time feedback and take advantage of a more customized learning experience. 

If India has to become a global economic superpower, engineers must become tech-agnostic and adaptable in a world that’s changing fast. A Generative AI layer must be integrated into their education modules. 

This will equip them with cutting-edge skills and ensure versatility – from software developers to prompt engineers, enabling them to navigate diverse technological domains. 

Investing in developing AI skills for the youth is an investment in India’s future. A pay-after-placement education model integrated with AI skills is the magic pill for India to shape a workforce that not only meets the demands of the digital age but leads the way in innovation and progress.  

The post Why Generative AI Will Build The Workforce Of The Future appeared first on Inc42 Media.

In today’s competitive business landscape, monitoring the right metrics is essential for ensuring healthy growth, regardless of the industry. By measuring key performance indicators (KPIs) that reflect various aspects of your business, you can gain valuable insights into its overall health and make informed decisions to drive growth. 

This article will explore several metrics that indicate healthy growth and explain why they are crucial for sustainable success.

Customer Churn

One of the most critical metrics to monitor is customer churn. Losing customers can sink your business growth and erode your revenue streams. By focusing on customer success and addressing their pain points, you can reduce churn and achieve healthy growth.

Understanding why customers leave and taking proactive measures to improve their experience will help you build a loyal customer base.

Customer Lifetime Value (CLTV)

CLTV is a holistic metric that helps businesses understand the potential value of each customer over their lifetime. By analysing purchasing patterns, repeat purchases, and customer loyalty, you can identify opportunities to maximise their value.

By focusing on CLTV, businesses can become more customer-obsessed and prioritise long-term profitability over short-term gains.

Customer Acquisition Cost (CAC)

CAC is a crucial metric that reveals how much it costs to acquire new customers. High CAC can strain your resources and hinder sustainable growth.

Therefore, it is vital to keep CAC as low as possible by optimising your acquisition strategies, targeting the right customer segments, and maximizing conversion rates. Lowering CAC allows you to allocate more resources to customer retention and long-term business growth.

CAC: LTV Ratio

The CAC: LTV ratio measures the profitability of your customer acquisition efforts. To ensure healthy growth, aim for a ratio of at least 1:3, where the lifetime value of a customer is at least three times higher than the cost of acquiring them.

By focusing on optimisation of conversion rates, targeted acquisition channels, and customer loyalty, you can improve this ratio and drive sustainable growth.

Customer Engagement Score

Prioritising customer engagement is critical to sustainable growth. By measuring customer engagement scores, you can gain insights into how customers interact with your brand, products, or services.

Segmenting your customers based on their scores enables you to optimise customer success and support efforts, enhancing operational efficiency and increased revenue.

Leads by Lifecycle Stage

Understanding the distinctions among leads at different lifecycle stages is crucial for effective lead nurturing and sales opportunities.

By measuring leads monthly per lifecycle stage, you can identify bottlenecks, optimise your lead generation strategies, and tailor your sales efforts accordingly. This metric provides valuable insights into the effectiveness of your lead nurturing initiatives.

Lead-to-Customer Rate

The lead-to-customer rate is a metric that measures how effectively your sales process and lead-nurturing strategies work. It tracks the percentage of leads that convert into paying customers.

By implementing closed-loop reporting and gathering data on lead-to-customer conversion, you can identify successful campaigns and common customer behaviors. This knowledge empowers you to refine your sales and marketing strategies and drive healthy growth.

Customer Health Score

The customer health score (CHS) helps you determine whether your customers are at risk of churning. By analysing various data points such as customer satisfaction, usage patterns, and support interactions, CHS provides a comprehensive view of your customer relationships.

This metric enables you to take proactive measures to prevent churn, improve customer satisfaction, and foster long-term loyalty.

In Conclusion

Monitoring the right metrics is crucial for achieving healthy growth in any industry. Establishing baselines, setting benchmarks, and continuously measuring these metrics allow leaders to identify problem areas, differentiate between correlation and causation, and confidently launch new projects.

With a data-driven approach, companies can unlock valuable insights, optimise their strategies, and pave the way for long-term success in a competitive market.

The post What Metrics Indicate Healthy Growth For A Business? appeared first on Inc42 Media.

An often overused adage is that a picture speaks a thousand words. But in today’s age of doom scrolling, catching someone’s eye even with visuals, is a race against the clock. This is especially true in the world of business, where time is money. 

We live in an era where information is abundant, but time is scarce, and the ability to swiftly decipher complex data and extract actionable insights is critical. Here’s where data visualisation becomes a game-changer for businesses.

A textbook definition of data visualisation says it is the graphical representation of data and information. But in reality, it is so much more. Data visualisation goes beyond superficial aesthetics; it’s a fundamental shift in leveraging data to drive strategic decisions, enhance operational efficiencies, and fuel revenue growth. 

In a way, it can be compared to journalism, where reams of data are collected and consolidated, and only the most important insights are presented as an engaging story with an interesting headline that leaves a lasting impact on the audience – in this case, the business decision maker. 

The Power Of Visual Insights

The world of data visualisation is a rapidly expanding universe, poised to grow by 9.69% from 2023 to 2028. While North America champions this growth, the burgeoning advancements in the APAC region promise a parallel trajectory. Valued at $5.9 Bn in 2021, the data visualisation market is projected to surge to a staggering $10.2 Bn by 2026, showcasing an impressive growth rate of 11.6%.

From dynamic visual dashboards to immersive, interactive analytics, data visualisation tools today have become indispensable for large organisations. Power BI, a Microsoft product along with recently launched Microsoft Fabric, stands out for its integration with various data sources, allowing for seamless data analysis and sharing. 

Tableau, QlikView, Looker, and java scripts libraries such as D3.js, cater to varying needs and preferences, empowering businesses to derive actionable insights from complex datasets through intuitive and impactful visualisations.

Tapping Into Human Emotion: The Art Of Data Storytelling

At its core, data visualisation is the art of storytelling—a narrative woven seamlessly through numbers and statistics. Drawing from Aristotle’s ethos, logos, and pathos, imagery connects with our emotional fabric, forging connections that transcend mere data points. 

Visuals leave stronger impressions on the mind, enabling better recall and analysis and driving optimum decision-making. It’s not just about presenting numbers; it’s about crafting a compelling story that engages, persuades, and guides decisions, and is remembered long after the actual presentation of the story.

93% of businesses worldwide agree that decisions made as a result of insightful data storytelling have the potential to boost revenues. 71% of executives worldwide believe data storytelling skills are paramount when reporting results to the C-suite or other stakeholders.

Let’s look at this with an example. Imagine a scenario where a data visualisation dashboard highlights a sudden drop in overall revenue for a retail company during a specific period. 

With advanced visualisation tools, this drop in revenue becomes the starting point of an investigative journey rather than just a cause for concern. Beyond the surface numbers, they delve into specifics—product performance, regional trends, or individual retailer data—empowering leaders to dive deep, peel the onion, so to say, and arrive at the root of the issue.

Data Visualisation Drives Data Democratisation 

Data democratisation is the key to unlocking data analytics and deriving insights. Visualisation tools play a pivotal role in translating raw data into appealing representations that foster better understanding and cultivate a data-driven culture within the organisation. By simplifying complex data, these tools equip decision-makers at all levels to make informed choices and accelerate growth 

Real-Time Insights: Accelerating Action

With data visualisation tools, companies can now act faster by analyzing and acting on real-time data. Especially in industries like retail, healthcare, and logistics, real-time data helps manage customers or patients better and analyze large amounts of data faster. Tools for visualizing data bring it all together, making it organized and easy to spot significant trends or unusual deviations in the data.

As we keep moving forward in this era of endless data, data visualisation will continue to evolve as a superpower for businesses. It plays a key role in enabling a data driven culture and bringing a positive change in organisations. 

Looking ahead, when we combine machine learning and AI with visualisation tools, data analytics gets a sharper lens that enables optimized decision-making and propels business growth. The future of business isn’t just in numbers; it’s a colorful world of data visualisation with powerful business narratives shaped by data.

The post From Data To Decisions: How Data Visualisation Drives Business Growth appeared first on Inc42 Media.

With a fistful of tech, the Indian farmer is finally taking his rightful place at the centre of the agriculture value chain. Making this transformational shift is the tiny microchip, which is placing power in the hands of the tiller through the application of new-age digital technologies to agriculture, or agritech.

Data-driven agriculture is quickly gaining traction in India as it offers solutions to challenges that have held back the sector for too long. It has made the kisan realise that prosperity is no longer an impossible dream. Rather, with a smartphone in hand, a high-speed internet connection, and a leap of faith, he can seize the reins and discover what it’s like to steer his future.

This is not plain crystal-ball gazing. Agritech is ushering in sustainable farming practices, enhancing yield and productivity, plugging gaps in the supply chain, eliminating intermediaries, minimising post-harvest losses, and promoting financial inclusion for small farmers, who have traditionally had little access to institutional credit.

FY24 Will Be The Year To Scale Up

Although agritech startups began to make ripples in India a decade ago, the emergence of digital technologies such as big data analytics, artificial intelligence, machine learning and IoT-enabled innovations have placed them on the cutting edge of this sector. So, while 2023 saw many new innovations in farming, FY24 will be the year to scale up. 

The good news is that India’s farmers are readily embracing agritech as it is agile and offers solutions that are flexible, easy to use and easy to customise. This is especially effective in a country where small and marginal farmers account for 86% of farm holdings, which cannot benefit from the Western model of large farm size mechanisation. 

The advantages of precision farming, easy access to scientific information for better farming practices, and getting a fair price for their produce via e-mandis are low-cost, frictionless and life-changing innovations for the kisan. 

Indian agritech companies are also addressing the looming challenge of food security. With the country’s population expected to exceed 1.5 billion by 2030, ground-breaking technological innovations are making farming more sustainable, more efficient, increasing yields, and getting ready to feed rapidly growing numbers.

Slashing India’s massive post-harvest losses will also help feed more while saving thousands of rupees every year. An estimated 4-6% of cereals and 5-12% of vegetables are lost every year due to ineffective and faulty processing, storage, transportation and handling. 

Reforming Agri Practices With Tech

Agritech has been arresting crop wastage by offering advanced logistics solutions and modern storage facilities tailored to individual farmers’ needs.

Crop rotation and crop diversification too are making farming more efficient and minimising soil erosion. All the information needed – and it can be highly customised – is available via apps that can be downloaded on a smartphone in a matter of seconds. This is empowering farmers in ways they have never experienced before.

Among the numerous benefits of agritech are geotagging and barcoding, which are propelling India to the forefront of food exports via a robust food traceability system. Traceability ensures quality and wins trust, enabling India to export high-value products to countries that place a premium on food safety and meeting regulatory requirements.

Perhaps the biggest game-changer is the e-mandi. An e-marketplace, it connects farmers with buyers, online, reducing intermediary costs. It also allows price discovery, introduces transparency, eliminates wastage as produce is moved only after a deal is struck, and enables digital payments in a frictionless manner.

Another revolutionary innovation is the introduction of collateral finance, which is especially beneficial to small farmers. By allowing them to use their produce as collateral, agritech companies are unlocking a new stream of finance, in the form of small loans and microcredit.

In Conclusion

The sudden surge in the agritech space stems not only from its remarkable impact in the field but also from the massive digital push being given by the Indian government to the economy in general and agriculture in particular. Its most ambitious initiative is a new digital infrastructure called AgriStack, that aims to unify farmers across the country and address the challenges they face. 

Other important innovations are a revamped Soil Health Card and an Accelerator Fund to encourage rural entrepreneurs to establish agri-start-ups. The government is also encouraging public-private partnerships in the agri value chain, making it a priority sector in terms of economic development.

For a country where agriculture accounts for 16% of GDP and engages 43% of the workforce, it is imperative that we reimagine this historically marginalised sector. Agritech companies have convincingly demonstrated the power of digital technology in leading Indian agriculture into the future.

The post How The Smartphone Will Change Indian Agriculture In 2024 appeared first on Inc42 Media.

Venture capital (VC) investment is a dynamic field that has the power to nurture innovation and drive entrepreneurship. 

Drawing from nearly two decades of experience in the venture capital (VC) landscape, this article highlights five fundamental principles that should help aspiring investors in making informed and successful investment decisions. 

These principles cover a wide array of crucial facets, spanning from the evaluation of founding teams to gaining insights into market dynamics and the potential for long-term growth. 

Product-Market Fit (PMF)

Within the VC landscape, ‘product-market fit’ (PMF) is a critical milestone; far more than a buzzword, it’s the bedrock upon which successful startups are built. PMF, at its core, revolves around reshaping user behavior within a specific market. 

It’s not enough for a startup to introduce a novel product or service; the true test is whether it can instigate a profound and enduring transformation in how people address a particular need or task.  

This implies that a startup’s offering must deeply resonate with its target market, resulting in substantial and sustainable demand.

Take Flipkart, for example, which revolutionized book purchasing in India, shifting people from physical bookstores to online orders, establishing a lasting change in behavior. 

PMF can also encompass forward-looking shifts, based on well-founded theses, customer insights, and the identification of critical pain points. Drawing parallels with established behaviors in different contexts can bolster the PMF case. 

PMF thus represents an elusive, yet paramount, variable in venture capital, centered on achieving a profound and lasting impact on a market, setting exceptional companies apart. 

To gauge PMF, investors should look for proof points, which can include customer conversations and positive customer reviews. `

Total Addressable Market (TAM)

Understanding the total addressable market (TAM) is crucial for investors. The TAM represents the maximum potential revenue a startup can generate by serving its target market entirely. Investors need to assess whether a startup is operating in a market with enough room for growth and scalability. 

Investors would like to see startups that have the potential to scale into billion-dollar revenue generators, especially if it’s a low-margin business. For high-margin companies, achieving significant revenue growth is the key. 

Assessing TAM requires a dual approach: top-down analysis starts with the overall market size and drills down to estimate the startup’s potential share, while bottom-up analysis focuses on the startup’s current customer base and their evolving needs.

Startups with large and growing TAMs are often more attractive to investors because they have the potential to capture a significant market share. However, it’s also important to consider how the startup plans to reach this market and differentiate itself from competitors.

MOAT

The term ‘moat’ is like a protective barrier that helps a business stay strong and successful in a market without losing too much to competitors. Every venture capitalist wants to invest in companies that have defensible moats. Defensibility is the extent to which your business is replicable. 

In reality, there are very few models that can genuinely claim defensibility. The reason is that in most cases, factors beyond our control can emerge such as competitors and individual departures. This, in turn, affects the profit margins as customers have multiple choices. 

When evaluating startups for potential investment, defensibility plays a crucial role. The more defensible an idea, the higher its potential. To be highly defensible, an idea should be challenging to replicate in the market. 

In essence, it should deter even seasoned experts from attempting to enter the same space successfully. For instance, when we talk about replicating an iPhone for instance, it would be an incredibly difficult task. 

Replicating it necessitates not only the development of hardware but also the creation of a comprehensive software ecosystem, launching an App Store, and convincing app developers to rebuild their apps. 

Such a barrier makes it almost insurmountable for competitors. So, In the realm of startup evaluation, a critical litmus test for success is defensibility.

Execution Excellence

Finally, execution excellence is a principle that cannot be underestimated. While a startup may possess a brilliant idea and a sizable market, its success hinges on executing its strategy effectively. 

Investors should look for indications that the founding team of a startup or business possesses strong abilities to carry out their plans effectively. One of the ways to assess this is by observing their attention to detail in various aspects of their work, especially when it comes to presentations and established lines of communication. 

Exceptional execution can manifest in an outstanding website, exemplary customer service, or rave reviews, highlighting the team’s commitment to precision. Successful startups go beyond the initial pitch, demonstrating their prowess in building a compelling product and devising effective distribution strategies. Execution excellence distinguishes successful startups from the rest and plays a pivotal role in their sustained growth.

Investing becomes a more feasible endeavor when global competitors do not wield overwhelming dominance. Conversely, when such dominance exists, the task of building a successful business becomes significantly more challenging. Consider the case of Uber and Ola, where Uber’s exceptional execution posed a formidable challenge for its Indian competitor, Ola.

Founder Market Fit

One of the core principles in VC investment is assessing “founder market fit”. This revolves around examining the alignment between the founders of a startup and the specific problem they aim to solve. 

Successful founders typically not only bring innovative ideas but also harbor a profound and personal connection to the challenges they seek to address.  When considering potential investments, it is advantageous to identify founders who exhibit more than a casual interest in their chosen problem. 

They should possess backgrounds, skills, or experiences that uniquely qualify them to tackle their target market. This combination of passion and expertise is often referred to as “founder market fit”. 

Also, the team’s composition matters, especially in terms of their “right to win” in the market.

However, it’s important to emphasize that in this arena, there are no rigid, universally applicable rules, and founders often have the capacity to defy conventional expectations, continually surprising investors with their potential. 

Occasionally, founders may have weaknesses in certain aspects while excelling in others, emphasising the need for a comprehensive evaluation of the founding team. In this initial phase, investors employ a discerning approach to gauge whether the founding team meets the criteria for becoming successful entrepreneurs. 

Communication plays a pivotal role in this assessment. What founders convey and how they articulate their ideas holds substantial weight. It’s in this exchange that investors discern the qualities and potential of the team, determining whether they possess the attributes necessary for entrepreneurial success.

In Conclusion

While each startup is unique, keeping these five principles in mind can help investors navigate the complex and dynamic landscape of VC investment and increase their chances of backing the next game-changing venture. 

As the investment environment evolves, profitability gains prominence. Striking a balance between growth and fiscal responsibility is crucial while adapting to changing macroeconomic factors is imperative. 

Amidst heightened competition and shifting paradigms, investors who understand these dynamics are positioned to uncover India’s potential for numerous billion-dollar success stories.

The post 5 Key Principles Of VC Investment appeared first on Inc42 Media.

Despite rising awareness about gender equality on a global scale, a significant gap still exists in the representation of women in the investing industry across markets. The underrepresentation of women in India’s investment landscape is an issue equally pressing and urgent. 

Women make up a mere 2.4% of founding partners with control of capital in private equity and venture capital (PE/VC) firms, as compared to traditionally male-dominated sectors such as manufacturing and infrastructure, where women hold 25% and 19% leadership positions, respectively.

Conscious And Unconscious Biases Limit Access

One of the primary reasons for this gender disparity in the investment industry can be traced back to traditional gender roles and societal norms. Historically, women were not actively involved in decisions involving finance and investments, perpetuating the notion that finance and investment fields are better suited for men. 

Stereotypes like these play up into unconscious biases that affect the availability of opportunities and access to women. Women’s skills and capabilities in finance and investing are frequently underestimated and undervalued, leading to their exclusion from opportunities in the investment landscape. 

These stereotypes also influence the professional choices that women make, with fewer women considering investing as a career option. The few women who take the plunge are frequently faced with biases that affect their growth, progress and success. 

In addition, due to these biases, women entrepreneurs may face challenges in accessing capital and securing funding for their ventures. This creates a self-perpetuating cycle of fewer women in the industry and fewer women at the top – which in turn, creates a barrier for women to enter or advance in the investment industry.

The investment industry usually relies on connections. It’s a tight-knit community. Over 75% of investors hire through their networks. In India, where the investment landscape is predominantly male-dominated, women have limited access to the inner circles. 

This, along with biases, reduces the participation of women in the private equity and venture capital (PE/VC) sector. It is important to recognize the need to de-bias the investment industry and create an inclusive environment that promotes gender diversity. 

Time To Remove The Shackles 

Gender diversity is not just a matter of social justice; it is a business imperative. Numerous studies have shown that diverse teams and organisations outperform homogeneous ones in terms of financial performance, innovation, and decision-making. 

However, the path to diversity requires changes in practices, policies and the operative culture. We must begin with equal access and opportunity and move on to removing the systemic barriers that exist, step by step. 

Gender diversity is a leadership agenda and bringing more women in senior leadership teams, decision-making roles and key operational positions within PE/VC firms will be crucial. 

By bringing more women as leadership levels, the industry will create role models and demonstrate that there is longevity and success for women in PE/VC. Having more women will create a natural challenge for existing biases and stereotypes, ultimately fostering an environment that is inclusive for women investors and entrepreneurs.

It is important to work with both genders when it comes to handling the challenge of gender diversity. This is not about excluding men. Rather, it is about broadening and deepening the pipeline for the industry, whether it is for talent or investees, by including women in it. 

The Way Forward 

The underrepresentation of women in India’s investment landscape is a significant opportunity that deserves and demands immediate attention. The way forward has to be beyond hiring the one token woman and meeting a minimum threshold. 

In order to truly manifest the benefits from diversity, it has to be embraced in its true essence – seeking the best talent and creating an environment that supports the best talent to grow and be successful. It is time to stop being defensive. 

It is time to take a step back to reflect and then take a progressive leap forward. It is time to de-bias, embrace diversity and watch as a deep talent pool drives the investment industry towards manifold success. 

The post Why India Need More Women Role Models In PE/VC Landscape? appeared first on Inc42 Media.

In today’s fast-paced world, waiting for an extended period to send money for business and personal transactions is no longer a reality. The credit for this remarkable shift goes to the digital transformation of financial services, revolutionising how we handle our financial transactions. And at the forefront of this financial revolution is the emergence of Unified Payments Interface (UPI). 

UPI is a real-time payment system that allows users to transfer funds and make payments with the utmost ease. UPI has revolutionised domestic transactions in India, enabling secure and instant peer-to-peer payments. 

After a huge success within the country, the Indian government is taking various initiatives to introduce cross-border real-time money transfers through UPI. NIPL (NPCI International Payments Limited), a part of National Payments Corporation of India (NPCI), is helping BHIM UPI QR codes become accepted at stores in other countries. 

These partnerships facilitate Indian travelers to use BHIM UPI to pay for purchases while shopping abroad. You can now use BHIM UPI QR codes in Singapore, UAE, Mauritius, Nepal, and Bhutan.

India and Singapore are working together to make this even better. They’ve linked their fast payment systems, UPI and PayNow, facilitating people in both countries to quickly and safely send money across borders. 

You can send money to or from India using your UPI ID, mobile number, or Virtual Payment Address (VPA). It aligns with the G20’s goal of making cross-border payments faster, cheaper, and more transparent. 

These initiatives facilitating cross-border transactions have set the stage for a paradigm shift in international payments. This innovative approach to cross-border payments is reshaping the landscape of international commerce, presenting opportunities and challenges for individuals and businesses.

Unlocking Opportunities

Cost-Efficiency: Cross-border UPI transactions have the potential to significantly reduce the costs associated with international money transfers. Traditional methods, such as wire transfers or remittances, often involve high fees and unfavorable exchange rates. UPI can provide a more cost-effective alternative, allowing individuals and businesses to retain much of their hard-earned money.

Speed and Convenience: One of the most compelling aspects of cross-border UPI is its real-time nature. This feature means that transactions can be executed quickly and conveniently, irrespective of geographical boundaries. Businesses can benefit from streamlined international payments, enhancing their agility and responsiveness to market demands.

Financial Inclusion: For individuals in remote or underbanked regions, cross-border UPI can be a game-changer. Access to secure, instantaneous international transactions can foster financial inclusion, opening doors to global opportunities and economic growth.

Market Expansion: From an entrepreneurial perspective, cross-border UPI can facilitate market expansion. Businesses can easily explore new international markets, entering markets that were previously out of reach due to complex and expensive payment processes.

Navigating The Challenges

Regulatory Complexities: Cross-border UPI transactions span multiple jurisdictions, each with its regulatory framework. Adhering to these diverse rules could be complex for financial institutions and payment service providers. Navigating these complexities requires a deep understanding of international compliance standards.

Security Concerns: Ensuring the security of cross-border UPI transactions is paramount. Building robust security measures to protect sensitive financial data and thwart potential cyber threats is important. Maintaining trust among users and stakeholders is crucial.

Exchange Rate Volatility: Exchange rate fluctuations can impact the cost-effectiveness of cross-border UPI transactions. While UPI provides advantages in terms of speed and convenience, users must remain vigilant about exchange rate fluctuations that can affect the final amount received.

Operational Challenges: Integrating cross-border UPI into existing payment systems can present operational challenges for banks and financial institutions. Seamless interoperability and the development of standardized protocols are essential for the success of this payment method.

The Way Ahead

UPI has emerged as a game-changer in India’s quest for a digital future. By enabling seamless, secure, and inclusive transactions, UPI has transformed the way Indians transact, empowering millions and driving economic growth. As UPI continues to evolve and innovate, its digital dynamo is set to propel India even further into the future, leaving an indelible mark on the global digital payments landscape.

UPI has revolutionized India’s payment sector and is becoming more accessible to non-resident Indians in several nations. Singapore, the U.K., Australia, Canada, and the U.S. are among these nations.

In a major effort to stifle the cross-border flow of money between the two countries, India and Singapore have linked their digital payment systems, UPI and PayNow, enabling rapid and inexpensive fund transfers.

According to the World Bank, India became the first nation to receive over $100 Bn in inward remittances, and UPI’s soon-to-be-connected instant payment network of countries like Singapore, the UK, Australia, Canada, and the US will make cross-border inward payment experiences seamless and more cost-effective.

The post From India To The World: How UPI Is Transforming Cross-Border Payments appeared first on Inc42 Media.

In the rapidly evolving digital age, consumer experiences have undergone a dramatic transformation with the rise of the platform economy. The impact of this new paradigm has far-reaching consequences for financial institutions, compelling them to adapt to the changing landscape or face the risk of obsolescence. 

Today, consumers and companies are increasingly seeking the convenience of having banking services come to them, shifting away from traditional visits to physical bank branches.

At the core of the platform economy are digital platforms that function as expansive marketplaces, facilitating the exchange of goods and services between suppliers and customers. 

The Rise Of The Platform Economy

These versatile platforms come in various forms, from transaction-based models that span the entire value chain, encompassing pricing discovery to fulfillment, to well-known B2C platforms like Amazon, Olx, Ola, Uber, AirBnB, and emerging B2B2C platforms such as Swigy, Dunzo, and Chime. These platforms have transformed the way business is conducted, opening doors to new possibilities.

Insider Intelligence forecasts a staggering 50% growth in global ecommerce between 2021 and 2025, with a projected value of $4.7 Tn. 

In India, the ecommerce sector, which amounted to $85.4 Bn in 2021, is estimated to reach a remarkable $850 Bn by 2030. 

However, this shift towards the platform economy brings both challenges and opportunities for traditional banks. The rise of digital banks and fintech firms has intensified competition, forcing banks to strive for a lower cost-to-income ratio while keeping pace with their technologically-driven counterparts. 

By adhering solely to traditional business strategies, banks risk hindering their ability to achieve sustainable growth and maintain market capitalization.

Embedded Finance: A New Approach For Traditional Banks

Embedded finance offers a promising solution. Banks can adopt an alternative value architecture that allows for swift customer onboarding and increased transaction volumes. 

This approach involves integrating financial services, such as lending, investing, and insurance, into non-financial user interfaces on digital platforms. Notably, in India, Buy Now Pay Later (BNPL) products have surged in popularity, driven by fintech companies like Simpl, Lazypay, and Zest.

Traditional banks are beginning to recognize the potential of embedded finance and have started to offer their own BNPL products, including HDFC’s Flexi Pay and ICICI Bank’s PayLater. However, the adoption of this low-ticket, high-volume transaction fee-based business model remains comparatively slow. 

Challenges And Opportunities 

To fully embrace embedded finance, banks must embrace open ecosystem-based business models, leverage API-driven secure open banking capabilities, and ensure efficient service design. 

Additionally, they must address challenges related to client ownership, aligning incentives with partners, enhancing risk management, and exploring alternative credit assessment models.

While embedded finance finds relevance across various industries, such as consumer goods, healthcare, education, and telecommunications, a 2018 survey by McKinsey Global Institute revealed that companies with a platform presence consistently outperform those without. 

To harness the advantages of the platform economy, banks must proactively integrate with diverse consumer platforms, seamlessly embedding their products into the customer journey. Embracing the potential of the platform economy promises tremendous growth opportunities for banks and financial institutions, ensuring their relevance in the dynamic digital landscape for years to come.

The advent of the platform economy has revolutionized consumer experiences in the digital world, demanding adaptability from financial institutions to avoid becoming obsolete. 

The Promise Of The Platform Economy

Embedded finance presents an innovative avenue for banks to leverage the value architecture of digital platforms, offering seamless financial services to customers. 

As the platform economy continues to expand, financial institutions must embrace transformative approaches, foster innovation, and tap into collaborative opportunities. By doing so, they can establish a firm foothold in the digital era and capitalise on the platform economy’s immense growth potential.

The post The Changing Digital Landscape: Financial Institutions Embrace Embedded Finance To Thrive appeared first on Inc42 Media.

In the dynamic realm of mobile and online gaming, developers have been striving hard to monetise their games. Among many strategies, Artificial Intelligence (AI) has stood tall as one of the most influential game monetisation strategies. 

As it stands, 46% of game developers are already integrating AI into their games. Artificial intelligence tends to yield the highest uplift among various app or game monetisation models, averaging around 20-30%. This speaks volumes of how AI will go on to play a tremendous role in elevating gameplay as we know it.

This article delves into the various applications of AI in game monetisation and talks about how it is all set to transform the future of gaming.

5 Ways By Which AI Can Help In-Game Monetisation

Dynamic In-Game Ads

AI-powered dynamic in-game ads have been rapidly gaining ground in in-game monetisation. It can identify paying users in a game, and regulate the frequency of ads to not disrupt user experience while presenting them options for in-app purchases (IAP). 

This approach encourages a higher conversion rate toward IAP within the game. Simultaneously, users with a lower inclination to make payments can be more effectively monetized through ads.

Furthermore, AI can adjust ad prices based on the real-time demand for ad space within a game. This dynamic pricing model optimizes the revenue generated from ad placements, ensuring developers receive the highest possible returns for ad space.

Enhanced Customer Support

Customer support is a key element in game monetisation as it focuses on providing players with more efficient and effective assistance while simultaneously driving revenue through various channels. AI can contribute to customer support in numerous ways. 

AI-powered chatbots and virtual assistants can provide round-the-clock customer support, ensuring players have access to help whenever they need it. This availability can lead to better player satisfaction and increased monetization as players continue to engage with the game.

Further, AI-driven customer support can provide players with personalized game content and offers based on their playing history and preferences. These tailored recommendations can increase player engagement and drive additional in-game purchases.

Chatbots powered by artificial intelligence can quickly resolve common player issues, such as payment problems, technical glitches, or account-related inquiries.

Non-Player Characters (NPCs)

AI plays a significant role in game monetisation by optimising Non-Player Characters (NPCs). They are virtual entities playing supporting roles to enhance gameplay and storytelling. It can create engaging and challenging experiences through well-designed NPCs, leading to higher player retention. 

A notable advancement in this landscape has been achieved by Generative AI (GenAI), which has enabled custom dialogue flows for engaging conversations. The GenAI in Gaming Market worldwide is expected to grow rapidly, increasing revenue by around $ 7,105 million by 2032, with a growth rate of 23.3% each year.

In traditional gaming, developers typically create decision trees that pre-determine the number of choices players have during gameplay. However, pioneering developers are exploring new dimensions by creating more dialogue content, allowing for highly personalised interactions with NPCs. This can also extend to custom skins and other game accessories and tailor the gaming experience to individual preferences.

In-game purchases are also pivotal in game monetization using AI. For instance, NPCs could offer quests, challenges, or opportunities to acquire virtual items, currency, or cosmetic upgrades. These interactions can prompt players to make in-game purchases, enhancing their gameplay. 

Player Sentiment Analysis

AI’s role in game monetisation reaches beyond the scope of technical optimization. It can understand and harness players’ behavioral patterns through player sentiment analysis. It can analyse player sentiments via chat logs, reviews, or in-game interactions to discern their preferences and emotional states. 

Additionally, sentiment analysis can inform these algorithms that control in-game systems. For example, if the analysis detects player frustration, the AI can adjust game difficulty or provide hints to improve the player experience, keeping them engaged and more likely to spend on in-game items.

Thus, AI can use its analytical capabilities and deftly influence player behavior, leading to better engagement rates. 

Transformation And Upgradation Of Skills For Developers

AI can bring about a profound impact on game monetization by empowering developers with enhanced skills and capabilities. AI-driven testing tools can quickly identify and rectify bugs, in turn, reducing development time and costs. It will allow developers to focus more on creating engaging content and refining the game. 

Further, it can conduct multiple versions of A/B tests on the games and analyze results, identifying the most effective methods to drive revenue. This can help developers fine-tune their game monetization techniques over time.

By helping developers upskill themselves, it can immensely improve gaming app revenue for developers. 

As we step into the future of gaming, it is evident that AI-powered game monetisation is not a fleeting trend but a transformational force that is here to stay. AI  in game monetisation will evolve further to accommodate personalised experiences, dynamic pricing, predictive analytics, and enhanced player engagement will continue to shape the gaming landscape. 

Developers will be equipped to craft not just games but entire virtual universes that resonate with players on a profound level, and in doing so, they will reap the rewards of greater player loyalty and increased revenue streams. With AI-backed games, every challenge, and every in-game interaction becomes a potential avenue for revenue generation.

The post How AI Is Helping Game Developers In Monetisation? appeared first on Inc42 Media.