Harsh Mariwala on building a resilient business; The rise of India’s celebrity investors

The most interesting news selected specially for you! 03 March 2024 [View in Browser]( POWERED BY Hello, Now, startups and enterprises can enhance their brand engagement by partnering with YourStory and advertising on our YS Buzz and Weekly Wrap newsletters. [Click here]( to know more. In today's newsletter, we will talk about: - Harsh Mariwala on building a resilient business - The rise of India’s celebrity investors - Ronnie Screwvala's lessons from BYJU'S crisis - Circular economy with spent grain - Streamlining loan disbursals for banks Here’s your trivia for today: Which is the oldest running factual space series? --------------------------------------------------------------- TechSparks Harsh Mariwala on building a resilient business doyen Harsh Mariwala, who carved Marico out of his family oil business in 1990 and grew it into a Rs 68,000-crore conglomerate, prides himself on being a [big believer]( in innovation. He notes that the defensive FMCG sector has been threatened by emerging D2C brands. “We don't want the FMCG mindset to displace the D2C mindset, which is very different. But I don't believe in very, very long periods of burning money [either],” the Marico Chairman [shared]( at TechSparks 2024 Mumbai. Powering ahead: - Marico has looked at [buying D2C brands]( for two main reasons—minimising threats of competition and finding opportunities for growth and scaling. - “From doing things to getting things done, to infusion, an entrepreneur must know when to leave hands at the right time from the business,” [said Mariwala](. - [Sharrp Ventures]( the family investment office of Mariwala, has generated 5X returns on its investments, including in startups. [Read More]( --------------------------------------------------------------- From the CapTable Celebs put the ‘star’ in startups with cash, glamour equity, and more On February 12, when Bollywood actor Ranveer Singh and adult entertainment star Johnny Sins appeared in a commercial for a men’s sexual wellness brand, they took the internet—and the advertising world—by storm. The shock-and-awe aside, Bold Care, the young D2C startup behind the product they were endorsing, was instantly catapulted into the limelight. Google searches for the brand went through the roof, with searches for ‘Bold Care’ seeing hockey-stick growth on Google Trends. Almost a fortnight later, the buzz still hasn’t died down. More importantly, it also brought attention to the fact that Singh is not only the face of Bold Care but also an investor and co-owner. Co-founder Rajat Jadhav went on to call it “an iconic partnership”, confirming that the actor had been “deeply engaged in every facet of the business” for over a year. While celebrities associating themselves with startups is no longer new—with nearly 90-100 deals done by India’s top 20-25 stars since the pandemic—the extent of their involvement only seems to be growing. With more skin in the game, though, comes higher risk as well. Key takeaways: - Celebrity-startup deals are seeing a strategic shift, with stars now getting more integrated in multiple capacities that go beyond just ad campaigns. - Earlier, it took startups almost 6-7 years to move up to onboarding an A-lister. Now, top stars are getting involved in the brand and product journey from Day Zero. - Fledgling young brands that are unable to afford top-tier celebs are often paying them in equity, giving rise to interesting new barter deals. - Several actors and cricketers have also floated their own venture funds to gain more control over the financial transactions and have a bigger role in the brand narratives. [Continue Reading]( --------------------------------------------------------------- TechSparks Ronnie Screwvala’s lessons from BYJU'S crisis Serial entrepreneur Ronnie Screwvala, known for his candour, has been an outspoken critic of BYJU’S and its founder Byju Raveendran. At TechSparks Mumbai, he emphasised the necessity for frugal innovation rather than excessive funding in the edtech sector. “Frugal doesn’t mean no money. When you are with low resources, that’s when innovation comes in,” the upGrad Co-founder and Chairperson noted. Navigating entrepreneurship: - “No amount of funding can actually build a solid business if you don’t set out to build a business... That penny has to drop with everyone,” [Screwvala said](. - He emphasised that entrepreneurship is now aspirational due to [evangelisation]( by the government and policymakers, adding that global competition will keep entrepreneurs on their toes. - “You can have the highest level of expectations but you can't have the highest level of entitlement,” he remarked while talking about how [founders face failures](. [Read More]( --------------------------------------------------------------- Sustainability Circular economy with spent grain Yorke first came across the concept of spent grain in 2016 while interning with food historian William Rubel, who was recreating bread from the 13th to 16th century. Spent grain is a by-product of the brewing industry and could be repurposed into flour. She started Saving Grains in 2021 that upcycles beer waste generated by breweries into flour, which, in turn, is used to make crackers, cookies, bread, rotis, and even ladoos. Repurposing: - According to Yorke, many people believe spent grain is a waste product and do not like to consume it. Also, not many breweries understand the potential of this by-product. - Yorke did not want to create another product-based business but intended to engage with people and foster a closed-loop system. - For this, she collaborated with Kutumba Community Centre in Bengaluru, where Saving Grains has set up a micro-unit that makes flour from spent grain. [Read More]( --------------------------------------------------------------- Startup Streamlining loan disbursals for banks software firm Cloudbankin believes it can address the challenge of obtaining a loan through its lending software that facilitates unsecured loan approvals in less than ten minutes. The software supports both secured and unsecured loans for individuals and businesses. “Through integrated APIs, the entire process is automated using credit bureaus and financial analysis, enabling an easier onboarding experience," says Mani Parthasarathy, Co-founder and CEO of Cloudbankin. Financial solution: - Cloudbankin’s AI-powered low-code platform is an end-to-end cloud-based loan software that offers customisable workflows and solutions for various tools in financial products, including savings, loans, and deposits. - API connections on its platform facilitate communication between different software applications, allowing them to interact and exchange information. - Currently, the firm has a customer base of over 50 financial institutions, including banks, NBFCs, and fintech firms across India, the US, the UK, Sri Lanka, and the Philippines. [Read More]( --------------------------------------------------------------- News & Updates - [Growth:]( India's economy grew at its fastest pace in one-and-half years, 8.4% in the October-December quarter, led by strong manufacturing and construction activity and bolstering Prime Minister Narendra Modi's economic record just months before a national election. - [Layoffs:]( Sony Interactive Entertainment on Tuesday said it will lay off about 900 employees in its PlayStation unit, or 8% of its global workforce, becoming the latest technology company to announce headcount trims. - [End of a dream:]( Apple Inc is cancelling a decade-long effort to build an electric car, Bloomberg reports. Apple made the disclosure internally, surprising the nearly 2,000 employees working on the project. Did you know? Which is the oldest running factual space series? Answer: The Sky At Night. The BBC TV factual space series first premiered on April 24, 1957, and has been running since. 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