ANSWER 1:

CRED
CRED's BUSINESS MODEL

The 3 pillars of CRED's BUSINESS MODEL - Customers who pay credit card bills, The CRED
app, and the Businesses who provide offers on the app.

1. CRED's Customers - Many people pay their credit cards using payment apps or by directly
logging into their bank accounts. By using the CRED app, they can perform the same function
of paying their credit card bills more beneficially. As more people use CRED to earn benefits,
they share those benefits more widely.
2. CRED App - The app allows users to sign up and see all the available offers on paying their
credit card bills. As you continue to pay bills, you accumulate CRED coins which you can
redeem for the rewards
3. Businesses that provide offers on the app - Bringing businesses on board and forming tie-
ups with them is imperative for CRED. The CRED app gives small and large businesses alike
visibility as buyers of all types use it.

CRED's REVENUE MODEL

CRED earns money from listing fees that businesses pay to display their products and offers on its
app. Moreover, financial institutions have access to the financial data collected from users in order to
tailor their offers accordingly.

 Through CRED, you can access products and offers from businesses that have paid to access
Discover. Among the offers are fashion retailers, spas, Amazon gift cards, and more. These
offers give their users a variety of rewards to pick from. As a result, it attracts users'
attention. CRED receives a fee from the business every time a user redeems CRED coins
from the app to pick an offer.
 CRED collects your financial data as you use the app and continue to pay your bills to offer
you better offers in the future. This is their second source of revenue. Institutions are always
searching for the most reliable customers to use their credit cards, loans, and other
products. To gain access to this data, banks and credit card companies pay CRED.

CRED has no single best source of revenue. CRED has a varied product/service span - Rentpay,
CRED Stash, Store, Credit Card Payments, and CRED Pay.

 CRED Pay was developed in partnership with Razorpay and Visa. It provides brands with a
D2C channel, by offering them an instant payment experience on their platforms.
 CRED's RentPay allows the tenants to pay monthly rents using a credit card, where the
amount is transferred to the landlord's bank account directly. The main advantage that lies
here is that the app helps users get an interest-free credit period on rent and also lets them
earn reward points on their credit cards. CRED will charge users a transaction fee of 1% -
1.5% depending on the user's credit card network.
  CRED Store is a member-exclusive selection of products and experiences at special prices.
Every time you pay your credit card bills on CRED, you receive CRED coins. These coins
can be used to win exclusive rewards or get special access to curated products and
experiences
 CRED Stash is a digital lending platform that makes a personal credit line available to users
in a completely online manner. Here the Registration/ Subscription Charges is Nil. However,
the bank charges interest on money borrowed which is displayed on the app while availing the
loan.

CRED REVENUE AND PROFIT /LOSS:

FINANCIAL YEAR REVENUE(IN CRORES) PROFIT/LOSS(IN
CRORES)

FY2019 0 -60.86

FY2020 0.52 -361.11

FY2021 89 -523.85

FY2022 393 -1,279

BoAt
Boat's BUSINESS MODEL
BoAt sells various products from wired earphones to wireless ones, from speakers to
headphones & from smartwatches to trimmers. BoAt lifestyle has a market share of
27.3% in the earwear category & it is the leading brand in this category.

It earned a revenue of ₹1,531 crores & the profit was around ₹127.1 crores in
FY2021. Its earnings grew by 61% from ₹48.85 crores in FY20 to ₹78.6 crores in
FY21.

BoAt focuses on selling wired earphones at the lowest prices possible. Their
products are priced between ₹350 to ₹550 as no brand sells wired earphones in this
price segment.

The company has always created products that have led to demand-pull, which
means they don't have to market its launched products. It has already become
popular owing to its good quality and low price.

For example, BoAt launched a portable Bluetooth speaker named ‘BoAt Stone’ that
became an instant hit as they were selling this at around ₹2,000 & other competitors
of BoAt were selling the speakers at ₹5,000.

Livspace business model

The platform functions as a home-design marketplace by linking vendors and designers with
homeowners. All transactions are subject to a commission or margin fee.

Livspace is a three-sided marketplace that connects homeowners with home design products, service
designers, and suppliers.

Target Customer:
Couples and affluent families with working professionals who have purchased a new home or have
properties with property values ranging from INR 40 lakhs to INR 4 Cr are among Livspace’s target
customers.

Operations:
The tech-enabled playbook at Livspace is as follows: An survey questionnaire records the customer’s
scope of work, preferences, and budget at the outset. They are then paired with one of the 3,000
interior designers on Livspace.
After online and in-person sessions, the designer creates a mock-up for the customer using Livspace’s
proprietary software. Livspace hires third-party contractors to complete the job after the customer has
accepted it.

Revenue generation:
The average consumer spends Rs 8-10 lakh, with 10% paid in front and the rest paid in two
installments when parts of the job are done. Livspace’s Gross Merchandise Value (GMV) was $140
million in FY21. With revenue doubling every year, FY22 will end with a GMV of $350 million, and
FY23 is expected to be $700 million.

Ensuring accuracy and Timelines:

Livspace has built the most extensive collection of standardized items due to interactions between
stakeholders. These goods are also integrated into the platform’s proprietary 3D visualization
software, Canvas, which interior designers utilize. Designers can use Canvas to create solutions for
consumers while maintaining pricing and delivery timeline accuracy.

Leveraging data:
Machine learning is also used by Livspace to match clients with designers, make product
recommendations, and curate designs for simple discovery. Hundreds of thousands of data points are
used and analyzed in real-time.

Following a $180 million Series F investment round led by KKR & Co., Livspace has joined the
coveted unicorn club, becoming the fifth unicorn of 2022 and the 49th firm to be valued at over $1
billion since January 2021. Existing investors such as Ingka Group Investments (part of the world’s
largest IKEA retailer), Jungle Ventures, Venturi Partners, and Peugeot Investments participated in the
Series F round.
Livspace presently operates in Singapore in addition to its core market of India and hopes to use the
funding to expand into foreign markets. Its strategy is currently being replicated across the APAC,
MENA, and Australia regions.
Livspace, for example, launched a joint venture in Saudi Arabia with the Alsulaiman Group, Ikea’s
regional operational partner. Last year, both parties committed $50 million to capitalize on the market
potential given by Saudi Arabia’s rising real estate market, particularly in the residential sector.
Livspace in Singapore, on the other hand, purchased a majority stake in Qanvast, a home remodeling,
and design platform.

Business Model of Nykaa

Its inventory-driven business model for the BPC (Beauty and Personal care) category is one of its key
benefits. While it faces the risk of expiration and incurs inventory costs, it enables the firm to provide
identification for all its items and ensures availability and prompt delivery. Its solution enables
fungible stock across traditional and digital channels, making stock management easier.

Online BPC buyers are concerned about the increasing availability of counterfeit goods. As a result, a
guarantee of legitimacy provides buyers with the peace of mind.

Omni-channel strategy: It has a geographic footprint in 38 different cities. It aims to expand its
physical storefronts.

The function of retail stores is twofold:

 They give customers the opportunity to try out things before making a decision.
 They build a more resilient distribution network that will allow for potential hyperlocal
delivery.

Shops also provide face-to-face encounters with experts and, in the case of some multinational
premium brands, play a key role in personal branding.

Affiliate program and a content-first strategy: Nykaa is capable of promoting a broad brand and
influencer-led learning through innovative and engaging content across video and textual forms,
thanks to a team of over 1300 influencers and 12.6 million fans across prominent social media sites.
The Nykaa army generates and shoots the bulk of Nykaa's material in-house.

Furthermore, the Nykaa Affiliate programme uses influencers on a wide scale, allowing external
creators to create material on their part across multiple digital channels. The support of well-known
influencers adds to the platform's credibility.

ANSWER 2:
SOFTWARE STARTUPS-
SWIGGY-
VC should be investing in Swiggy as it is in the growth stage.As revenue is increasing and loss is
decreasing.
INTERVIEWBIT-
VC should be investing in interviewbit as its revenue is less at this stage and growth is required.

BIOTECHNOLOGY STARTUPS-
EXCELRA-
VC should be investing as it got seed funding in 2016.

THE GENE BOX-

VC should be investing as it got seed funding in 2018.

Media and Entertainment STARTUPS-

SONGDEW-
VC should be investing in Songdew as its revenue is less at this stage and growth is required.

MONK ENTERTAINMENT-
VC should be investing in Monk Entertainment as its revenue is less at this stage and growth is
required.