Zero to Infinity

HOW IS THE INDIAN E-COMMERCE TRANSFORMING?  With the adoption of quick commerce, the launch of the latest GenAI technology, and the increasing purchasing power of GenZ, the Indian e-commerce industry is poised for transformation. In this episode of Matrix Moments, we analyse it further with Chirag Taneja, founder of GoKwik, a rapidly expanding e-commerce enablement startup, our founder Avnish Bajaj, who also launched one of India’s pioneering e-commerce ventures, Bazee, and Rajat Agarwal, MD at Matrix Partners India (aka Z47). 📲Digital penetration of Indian e-commerce stands at just 6% today. It is set to increase drastically as GenZ consumers are on the rise while the digital public infrastructure is thriving.  🛵 Is Quick Commerce a feature, or a standalone company?  Every e-commerce player will have to embrace it or they’ll lose market share. This creates opportunities for infrastructure providers to facilitate this transformation. 🦾 The AI native apps are yet to come. The enablement of consumer AI is expected to be similar to the era when mobile apps were first introduced, leading to the launch of various apps offering innovative solutions, many of which made a notable impact. 🕺🏾 Consumers no longer trust paid influencers. Co-creation is key. The success of Freakins hints towards the opportunity that lies in co-creating with influencers instead of just paying them to promote products.  💥E-commerce disruption is boosting competition for companies that still have a firm foothold due to strong distribution.The original mode key to building consumer brands was distribution and that is getting disrupted.  If you are a founder exploring the e-commerce sector, this episode of Matrix Moments will provide you with insights into the diverse opportunities that are set to thrive in this space.

The Indian Internet Pioneer Starting Up AGAIN in AI  Sharad Sanghi is a pioneer of internet in India: from the early days of VSNL to rapid cloud adoption, when it comes to internet infrastructure, he’s seen it all. He founded among India’s earliest IT infra startups, NetMagic in 1998. In 2012, the IT Services company was acquired by NTT, where Sharad also served as CEO. Sharad Sanghi was an early partner to many Indian startups, and the NetMagic story is required reading in the evolution of the internet in India.  In 2022, Sharad & longtime NTT tech leader Anindya Das started Neysa Networks - spotting the opportunity in AI Cloud infrastructure early. Co-founded by experienced founders with deep domain expertise, Neysa is solving to democratise AI for enterprises, offering a suite of Generative AI platforms and services. Neysa’s AI Cloud products help clients discover, plan, deploy, and manage their Generative AI projects cost-effectively, and secure their AI landscapes in the cloud and at the edge in a consumption-based model. Earlier this year, Matrix Partners AKA G47 led the investment in Neysa Network’s $20mn seed round.  On this special episode of Matrix Moments, AI SaaS investor Pranay Desai is joined by Avnish Bajaj, to talk to the Neysa leadership, Sharad Sanghi, Founder & CEO, and Anindya Das, Co-founder & CTO. From evaluating the hype around artificial intelligence to discussing the future of Indian AI startups, they break down the AI landscape in India.  This one is unmissable, and covers:  🚀Why AI is Different vs. other hyped up tech ✋Why AI Adoption Needs AI Infrastructure  🤝Why Democratizing AI is the Way Forward 📈Why India Will Lead in AI 

“Not just wealth… I think experience is all about compounding”  Says Manisha Raisinghani, founder of SiftHub.  After her stint as the CTPO at LogiNext, Manisha Raisinghani spent some time looking for the right problem to solve before starting up again. In her search, she found a sales enablement problem that could be solved through AI: enterprise sales teams have over 100 touch-points to tap into when collecting the data needed to make an effective sale. This sapped sales team effectiveness, since sales teams spent time doing non-sales tasks. This is the problem Manisha & the team at SiftHub are setting out to solve, with AI.  In this episode of Matrix Moments, she explains how SiftHub stands apart in a crowded space. Ultimately, just because a sector is ‘crowded’, doesn’t mean it has run out of problems to be solved.  📍Identifying the problem: Manisha’s experience and research showed that sales resources spend 70% of their time doing non-selling activities.  👥 Approaching a crowded market: With so many SaaS applications designed for salespeople, it gets confusing to find what information lies where, complicating an already complex sales process.  👩🏻‍💻Building High-Performing Teams:  Manisha’s 3-O framework for SiftHub is unmissable if you want to build high-functioning, high-agency teams.  This episode of Matrix Moments is flush with insights on building in AI. Tune in. 

Amit Lakhotia, Founder and CEO of Park+, shares insights from his experience in transforming the car ownership landscape. He discusses the critical differences in hiring for early-stage startups—focusing on adaptability in the 0-to-1 phase versus discipline in the 1-to-10 stage. Amit highlights his unique approach to training leaders, emphasizing a deep understanding of all departments before specialization. His methodical hiring has led Park+ to innovate services like FASTag and car washing, showcasing how conscious talent acquisition fuels consumer problem-solving.

IS GreyLabsAI PLAYING THE AI GAME BEFORE TIME?   The founders of a leading speech analytics platform for financial institutions, GreyLabsAI, Aman Goel and Harshita Srivastava, take us through the journey of identifying their market, building the product, and distributing it over the past few years. Setting up an AI business in India might seem a bit earlier than recommended, but is it? This episode of Matrix Moments unpacks the nitty-gritty of a young AI startup.   📍 Identifying a meaningful problem   Customer service chats are recorded to be analysed later. GreyLabsAI helps large enterprises with analysing this data. The problem proves to be quite meaningful for enterprises. 🤝 Collaboration among co-founders They stress on how compatible traits and mutual trust are necessary among co-founders. It allows them to create clear boundaries. While Harshita builds the product, Aman handles the business aspect of GreyLabsAI. 🌏 India or USA? Working for American clients while living in India brings a larger risk from companies functioning completely in the States. Aman and Harshita chose India as the base for their company as well as their market. 🦾 Is it too early for an AI start-up? While Harshita sees the opportunity NOW as the technology is reasonably mature to solve real-world problems but hasn’t been explored yet, Aman believes that it’s the right time to gain the trust of the customers. ✨ Distribution in a new market. Although Financial enterprises have a lot of tech spending, it’s necessary to establish trust. Furthermore, one can analyse more customer problems and solve them with new products. Harshita says, “It is said that sometimes little things happen in decades and sometimes decades happen in little time.” If you’re a founder exploring the potential of AI products in India, this episode of Matrix Moments will give you pointed insights on various aspects of building and distributing young technology in India.

WHAT’S THE FUTURE OF FINTECH IN INDIA? The Indian Fintech ecosystem is entering its middle journey. With $100bn+ in market cap already created by these businesses, the twin engines of Compounding and market penetration project potential for large-scale growth. Anand Khetan and Vikram Vaidyanathan dissect the past, present, and future of the finance industry in this episode of Matrix Moments. On this Matrix Moments episode:  •⁠  ⁠What can FinTech learn from the success of Financial Services behemoths like HDFC & VISA? •⁠  ⁠What is the importance of TRUST while building a FinTech brand?  •⁠  ⁠How can FinTech businesses compound without growing user base?  •⁠  ⁠How should founders view regulation & the costs of compliance? Is it a feature or a bug?

How should founders think about using offline channels for growth? Is phygital a real option or just a mirage? Rajinder Balaraman and Vikram Vaidyanathan double-click on the myths around phygital, bust them and share learnings for founders thinking of going phygital.  👉MYTH #1 Phygital has a higher CAC - It depends basis category, users and ticket size - Dezerv who employs a phygital model has a lower CAC than its competitors, whereas OneCard, operating purely online has a CAC that is 4-5x lower than SBI cards.  👉MYTH #2 Going offline slows you and makes it harder to scale - When you employ the right tech, scalability at speed becomes possible. Mamaearth’s online presence has spiked from 15% to at least 50% in 3 years. 👉MYTH #3 Customer experience journey is too complex in phygital - The journey is actually complex, but is an opportunity for founders to create an edge, and potentially a long-term moat.  👉 MYTH #4 Phygital is not relevant for all sectors - While there are sectors in the extreme who don’t need a phygital model, a significantly larger number benefit from creating a phygital experience. SaaS is an excellent example, where prima facie it looks like a purely digital model, but the sector spends much more on offline branding and events.  If you are a founder who is evaluating going phygital, this episode of Matrix Moments would help you make an informed choice.

PICKING THE PERFECT SaaS LAUNCHPAD - US or INDIA? For SaaS founders, the incorporation decision hinges on factors like business outlook, end goals, and access to capital markets. The US has often been the default choice for incorporation, but this is changing in recent years - India is increasingly considered a viable choice to start a SaaS company.  So what should founders do? Watch this episode of Matrix Moments. Dig deep into the incorporation dilemma - Harish Sekar, Partner at Cyril Amarchand Mangaldas, talks to Pranay Desai and Ashwin Pandian and they've got tips on:  1. Shattering Location Myths: India's burgeoning startup ecosystem is challenging US dominance with lower costs, faster setup, and abundant domestic capital. 2. Choosing Your Target Market: The optimal incorporation location depends on the target market, IPO aspirations, and founder location. 3. IPO vs. Acquisition: Strategise for both scenarios, including the United States' stringent IPO standards and India's more accessible path to local listings. 4. Transitioning from the US to India: Navigating the complexities of restructuring and the potential opportunities in Indian capital markets.

THE FOUNDER’S PLAYBOOK: INTERNAL FUNDING ROUNDS Internal or pre-emptive funding rounds are a major topic on founders' minds. Internal rounds refer to financing events where a company's existing investors, rather than external new investors, provide additional capital. They can signify confidence from current investors in the company's potential and can help maintain momentum without the complexities of bringing in new stakeholders.  If you’re a founder, Internal rounds can be a complex decision to make with several variables to consider. To help, Vikram Vaidyanathan & Rajinder Balaraman weigh up the pros & cons of internal or pre-emptive funding rounds on Matrix Moments.  👉Valuation-Dilution trade-offs are inevitable - Both the founders and investors make trade-offs during pre-emptive rounds, requiring nuanced decision making.  👉The stability of internal interest - An existing investor is likely to have the highest intent in terms of new investment commitment.  👉Efficiency of internal funding - It is the fastest process with the least capital dilution. 👉Price advantage of external funding - The wider discovery process can lead to higher price if there’s very high interest in the market. 👉Criticality of external validation - An external round is a crucial as a validation of TAM, quality of the team and the business model.  If you are a founder thinking through fund-raising choices, this episode of Matrix Moments is for you. 

Domain Alphas are founders whose edge lies in their domain knowledge, and their market-tested experience of solving problems for customers. Watch Rajinder Balaram & Vikram Vaidyanathan share their views on Domain Alpha founders, and trade great examples of how Domain Alpha founders build great businesses.  1. Getting to PMF Faster: How the experience of building the ICICI cards business helped the founders of OneCard launch slow, but get it right faster 2. Choose the Right Problems: How the founders of Country Delight didn’t rush, and spent a significant amount of time understanding the market problems before scaling  3. Know the Consumer Deeply: Why Ola Electric chose to build in two-wheeler EVs when everyone was betting on cars  Domain Alphas are able to turn their unfair advantage into real success. As a founder, you have it, or you have to acquire it. What do you do if you don’t have domain expertise?