Two by Two

This special edition reflects on a vibrant year of insightful discussions. They dive into the fierce competition between Flipkart and PhonePe and analyze Google's unique approach to digital payments. Education reform is debated with a proposed lottery system for student admissions. The challenges traditional retailers face in adapting online are examined, alongside the transformative role of AI in the SaaS landscape. Finally, direct-to-consumer models are unpacked, highlighting shifts in consumer behavior and marketplace preferences.

Dmart, the retail group in India, is absolutely number one on vision, execution, and consistency. Dmart opened its first supermarket in Mumbai’s Powai suburb in 2002. Like Walmart in the US, it adopted a deep discounting strategy, offering its customers low prices every day. Today, it has 381 stores. In spite of offering its customers the deepest discounts, Dmart’s net profit numbers beat those of its global peers.Yet analysts and investors have been becoming increasingly bearish about Dmart’s future strategy. They argue that what got it from 2002 to 2024 might not necessarily take it to, say, 2034.One big reason is quick commerce. Armies of underpaid contract delivery workers rushing from dark stores managed by notionally independent owners on behalf of younger companies like Zomato, Swiggy, Zepto, Big Basket, and even Flipkart are challenging the conventional wisdom on retail.Forcing Dmart to pause and blink.What should it do? Stick to what it knows and does best? Or learn new digital and delivery tricks in its middle age? With only an estimated 5% of the $500 billion urban market for food and groceries currently penetrated by organised and modern retail, the way Dmart goes has profound implications for India.To discuss this, hosts Rohin Dharmakumar and Praveen Gopal Krishnan invited Govind Shrikhande, former managing director of Shoppers Stop, overseeing all its formats, including Shoppers Stop, Hypercity, Crossword, Homestop, Beauty Formats - MAC, Estee Lauder, Air Port & Duty Free Retail, etc. Govind has spent over 40 years in the retail sector, having been part of the launches of Denim and Arrow, the relaunch of Vivaldi and the turnaround of Shoppers Stop. He is currently an Independent Director on the Board of a few Companies and a mentor to a few start-ups.Our other guest is Seetharaman G. Seetha, who is the deputy editor at The Ken and also leads The Ken’s retail coverage. He’s written quite a few stories on Dmart over the years as well.Welcome to episode number 18 of Two by Two!-Additionl listening:Is Zepto a gold medallist or a bronze medallist?Swiggy needs to reclaim its past gloryAdditional reading:Dmart and the supersizing imperativeZudio wanted Dmart’s apparel shoppers. Now Dmart is hurtingDmart changes its mind on store size. AgainDmart is not used to being in a funk for so longWhat if the quick-commerce warehouse was a supermarket?Dmart and investors rekindle their loveDmart’s e-commerce bet has gone from counterintuitive to obsoleteYou can sign up for The Two by Two newsletter here—it's free!-This episode of Two by Two was produced by Hari Krishna. Rajiv CN, our resident sound engineer, mixed and mastered this episode.New episodes are released every Thursday. So follow the show wherever you get your podcasts, and tell us what you think of the show.You can write to us at twobytwo@the-ken.com with your thoughts and suggestions.

For the last 24 months, the default way in which startups were exposed to venture capital and its effects has been, in many ways, paused. There's a slowdown. Venture capital funding for the first nine months of this year is down 7% over a similar period last year, per Tracxn.There have been news stories about layoffs, company shutdowns, and downrounds at various companies from a time when unicorns were being born every three months or so.Capital is abundant. A lot of dry powder remains uninvested everywhere, but it's just not getting invested at the same rate.Building and scaling a company is getting cheaper because of AI and LLMS, which can generate code, images, or just about anything that you want.And the biggest change—there's a focus on being profitable.If you’ve been a regular listener of Two by Two, you’d know that VCs have always managed to sneak into most, if not all, discussions on the podcast. Maybe not in the way they’d like to be represented in general, but they have been part of the conversation in some way, shape, or form.So when hosts Rohin Dharmakumar and Praveen Gopal Krishnan sat down for this week’s episode, they got two founders-turned-VCS to join in and say their piece on the role VCs plays in the world of startups. And what they need to be doing right. Manav Garg is the founder of Eka Software and co-founder of the operator-led Together Fund (Manav has previously appeared as a guest on the First Principles podcast as well), while Rajiv Srivatsa is the co-founder of Urban Ladder and now a founding partner at Antler India.Welcome to episode 17 of Two by Two.You can sign up for The Two by Two newsletter here—it's free!This episode of Two by Two was produced by Hari Krishna. Rajiv CN, our resident sound engineer, mixed and mastered this episode.New episodes are released every Thursday. So follow the show wherever you get your podcasts, and tell us what you think of the show.You can write to us at twobytwo@the-ken.com with your thoughts and suggestions.

Jinesh Gandhi, Research Director at Ambit, and Narayan Sundaraman, a marketing strategist with experience at Bajaj Auto, delve into the challenges Ola Electric faces in the competitive EV market. They discuss the recent stock decline and its implications for the company's future. Insights reveal key hurdles such as rising customer complaints and the necessity of a robust product portfolio. Additionally, they highlight strategic shifts in manufacturing and the importance of strong warranties to ensure product quality and market position.

Celebrate Deepavali with the team as they dive into the joy of the festival, emphasizing the importance of embracing its spirit responsibly. They reflect on memorable moments from past discussions and encourage listeners to share their thoughts for future content. The conversation also touches on Netflix's strategy to capture the Indian market, showcasing the dynamic interplay of culture and business. A delightful mix of festivities and insightful dialogue awaits!

In this discussion, Anupam Manur, an Economics Professor at Takshashila Institution, delves into the evolving role of government as a regulator and competitor in India. He examines how initiatives like UPI and Bharat Connect have transformed everyday life while questioning the implications of government intervention in markets. Manur also addresses the challenges of unemployment and pollution, evaluating the effectiveness of government initiatives in the digital economy. The conversation raises fascinating questions about competition and sustainability in a rapidly changing landscape.

In this discussion, Professor Srinivasan R, a strategy expert from IIM Bangalore, joins Nilesh Sangoi, former CEO of Meru Cabs, and Pradeep Puranam from Yulu, to unpack the ride-hailing duopoly in India. They delve into the emerging threats from EV fleets and innovative local competitors. The guests explore new business models, including subscription services and soft bidding, as well as the challenges that Ola and Uber face in maintaining their dominance amid rising competition and changing market dynamics.

Chandrashekhar Vattikuti, Chief Product Officer at InMobi with a rich background at Yahoo and Microsoft, joins Shreyas Srinivasan, Chief Product Officer at Paytm and founder of Paytm Insider. They delve into the evolving identity crisis facing Product Managers in India, sparked by funding cuts and AI rise. They question the necessity of Product Managers, tracing their transformation from ambiguous roles to structured disciplines. The discussion highlights the balance between data-driven strategies and genuine user experiences in product development.

The discussion highlights Ather Energy's pioneering role in India's electric two-wheeler revolution. It examines the company's impressive tech integration and strategic vision ahead of its IPO. Insights into consumer trends reveal a growing demand for premium electric vehicles among younger buyers. The conversation also addresses the competitive landscape against other players like Ola Electric. A focus on user experience, software capabilities, and regional preferences sheds light on the importance of innovation in achieving market success.

Netflix is on a mission to conquer the challenging Indian market, which it views as its last growth frontier. The service is adapting by lowering subscription prices while facing stiff competition from Jio Cinema and Disney+ Hotstar's extensive content libraries. The importance of authentic local storytelling and cultural nuances is highlighted as crucial to winning over Indian audiences. With a focus on local talent, Netflix aims to ramp up subscriber numbers and stands at a crossroads of innovation fueled by AI and data-driven strategies.