With a simple yet innovative vision to empower and digitalize local neighborhood retailers, Kiko Live was founded in 2020 in the retail sector. Having mentioned a brief about the platform, you must be curious to know more about the same. Are you one of those retailers looking to expand their business by digitalizing it? If yes, then you’ve landed on the right platform because today we’re going to guide you with some relevant information about this. Therefore, without further due, let’s get started with this guide. Keep scrolling down through the whole story!
₹1 Cr for 1% Equity with a business valuation of ₹100 Cr
Deal
Deal not made
As previously discussed, Kiko Live is a local retailer development e-commerce platform, that encourages retailers to digitalize their businesses. Yet again, it serves as an excellent opportunity for those kiranas, pharmacies, and any other small stores to digitalize their businesses.
Emerging in 2020, with its headquarters in Mumbai, Maharashtra, the company offers an all-around solution for setting up digital storefronts, managing home deliveries, and connecting small neighborhood stores to ONDC.
How did this company come to the limelight? Well, it’s because the Kiko Live Founders i.e., Alok Chawla, Neeta Rijwani, and Virendra Kumar came to seek investments in the 47th episode of Shark Tank India Season 3. What happened in the pitch? Let us know in detail.
Products & Services Offered by Kiko Live
Kiko Live has a commission-free online shop solution for local retailers. Enabling businesses to manage their brand names within their online sites, have control over product listings, and local delivery helpers.
The patented offering by the firm enhances an interactive online shopping experience.
Through this method, they have partnered with the Open Network for Digital Commerce (ONDC); however, a 5% commission is payable for successful ONDC listings.
This model enables local retailers to avail of cost-effective e-commerce solutions while probably tapping into the value of a national marketplace.
The Shark Tank Pitch of Kiko Live
The founders pitched the platform in the 47th episode of Shark Tank India season 3, seeking investment of ₹1 Cr for 1% Equity at a business valuation of ₹100 Cr.
During the pitch, they pitched about the strengths of the company and how it helps retailers expand their business within the e-commerce arena. Following the pitch, it was the time of counters from the Sharks, which were as follows.
Aman – He didn’t show any interest and rejected the pitch saying that it was not worth investing in a business with a valuation of Rs 80 crore. Although he saw the founder as a great entrepreneur, he rejected the idea.
Namita – She couldn’t gather confidence in the business valuation of Rs 80 crore, expressing concerns about the future of the business. Analyzing the high competition in the market, she didn’t invest.
Vineeta – She cited companies who are already present in this sector have substantial cash, which could provide a significant challenge for Kiko Live in the future. With relatively little funding, it would be difficult for the company to survive in the current environment. She didn’t invest as a result.
Deepinder – According to him, the whole pitch was focused on ONDC instead of the business model, thus creating distrust between them. Therefore, he didn’t invest.
Anupam – The Shark didn’t find any new or innovative in the business model and stated that it couldn’t solve the existing problems. Already existing in the market, he didn’t want to contribute only 1% of Equity. Therefore, stating that the valuation was overpriced, he didn’t invest.
Therefore, the founders were not able to build trust among the Sharks, in terms of business valuation, and hence, they did not crack the deal.
What Happened to Kiko Live After Shark Tank?
Kiko Live did not manage to close the deal in Shark Tank India. But they moved with great strides on their platform after the show. The company continued to evolve through user feedback and favorite investors. The focus remained on innovating more features and building a strong community of creators and brands. Besides, currently, the company is giving every retailer across the country to be part of the Quick Commerce boom. Besides, Kiko Live Revenue stands at approximately ₹21.78 lacs.
Further, Kiko sellers are visible through the multiple ONDC buyer apps, including Kiko Live’s buyer app, PayTM, Mapple, MyStore, and others. In return, as a result of enlisting as a seller on the Kiko Live platform, businesses enjoy a significant hike in their online presence that, consequently, offers enhanced visibility along with immense business growth. This smooth process allows sellers to scale up with ease and increase their revenues. Currently, Kiko Live Valuation stands at $10 million.
Strengths & Weakness ofKiko Live
Strengths
It is a commission-free online shop solution, making it an attractive option for local retailers.
Sellers can create their own branded websites and manage their product listings easily.
Integration with ONDC helps sellers to reach a broader customer base beyond their local reach.
The online shopping feature enhances customer engagement.
Weaknesses
Higher Business Valuation.
The competition for local retailers in the e-commerce landscape is high.
The increased dependency on ONDC is a negative factor.
Lacks proven track record and substantial revenue stream.
Limited funding scope.
The Future Potential
The future course of the brand depends on how it cuts through the competitive e-commerce landscape for local retailers. Although the commission-free shop solution and ONDC benefit Kiko Live, much depends on the path laid out for differentiation.
Their proprietary live shopping technology that contributes to customer engagement will also shape the success of the brand. Having sufficient funds to compete with the incumbents is also crucial. The brand’s prospects will remain uncertain until these challenges are resolved and sought for sustainable market position carving.
To Sum It Up
Lastly, Kiko Live is a Startup platform where the local retailer can digitalize their business in e-commerce The company gained recognition after its appearance on the 47th episode of Shark Tank India 3, asking ₹1 Cr for 1% Equity with a business valuation of ₹100 Cr.
However, despite their impressive pitch, the founders remained unsuccessful in cracking any deal, particularly because company’s high valuation, intense competition, and increased dependence on ONDC.
Following its appearance on Shark Tank India, the company is growing slowly and steadily, offering local retailers an opportunity to digitalize their business. Alongside, we’ve also covered the products and services, strengths & weaknesses, and future potential.
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Startup India
The entrepreneurial scenario in India has changed over the last decade. The Indian government is supporting innovation through its Startup India initiative, creating employment opportunities and accelerating economic growth. In this blog, let's discuss Startup India, including its objectives, benefits, and eligibility criteria; also, know how to get a startup registered under this initiative.
What is Startups ?
A startup is the early stage of a company that is formed to develop a unique product or service, introduce it into the market, and scale it to make substantial revenues. Startups are an important part of innovation, job creation, and diversification in the economy. In India, startups play a critical role in driving technology adoption and solving complex challenges in areas such as healthcare, education, and financial inclusion.
Characteristics of a Startup
Innovation: Key concentration in developing new products, services, or processes.
Scalability: Ability to grow rapidly with low incremental costs.
Disruption: Challenge traditional business models or industries.
Importance of Startups in India
Job Creation: Startups are significant employment generators.
Economic Growth: Contribute to GDP by introducing new industries.
Technological Advancement: Drive innovation and technology adoption.
What is the Startup India Initiative?
Startup India is one of the flagship initiatives of the Government of India, launched on January 16, 2016. It aims to build a robust ecosystem that nurtures innovation and startups across the country. The idea is to give an impetus to economic growth and employment generation in a substantial way. Startup India seeks to encourage entrepreneurship by giving a boost to innovation and design, thus leading to the growth and success of the startup ecosystem.
Standup India Scheme Standup India scheme was announced on April 5, 2016, to finance new enterprises, to boost the entrepreneurship culture in India. The program ensures the availability of loans through the Scheduled Commercial Banks (SCBs), between ₹10 lakh and ₹1 crore to at least one member of the Scheduled Caste (SC) and Scheduled Tribe (ST), and at least one woman, per bank branch. The support in this new scheme is granted to businesses in the trading, services, or manufacturing sectors. This will supposedly help about 250,000 borrowers.
Key Objectives of Startup India
Making Business Easier: Simple rules, compliance, and legal steps.
Financial Help: Provide access to government funds and venture capital.
Building Skills: Offer training and mentorship programs.
Encouraging Innovation: Support research and development with grants.
Features of Startup India
Startup India Hub: This is a place where startups can connect with investors and mentors.
Fund of Funds for Startups (FFS): This is a ₹10,000 crore fund managed by the Small Industries Development Bank of India (SIDBI).
Tax Benefits: Eligible startups can get exemptions from income tax and capital gains tax.
Startup Recognition: Startups can receive official recognition from the Department for Promotion of Industry and Internal Trade (DPIIT).
The Startup India scheme eligibility criteria
If you want to get funding through the Start-up India scheme, you need to meet certain eligibility requirements. Knowing these requirements well will help you successfully go through the application process.
Business Experience: Start-ups applying for this scheme must have been operating for more than five years.
Age Requirement: Applicants must be at least 18 years old.
Company Structure: To get funds under this scheme, the company must be either a partnership or a private limited company.
Turnover Limit: The company should have an annual turnover of no more than Rs. 25 crore.
No Reconstruction: Start-ups that have emerged from the splitting or restructuring of an existing business are not eligible for this scheme. Companies that have divided an organization into two or more parts will be disqualified.
If a company is developing a new product or service, it can benefit from the Start-up India policy.
Here are the requirements:
The start-up must create, utilize, or sell a product or service that is based on new technology or intellectual property.
The focus should be on enhancing an existing product or developing a new one that adds value for customers or improves workflow.
The start-up must not engage in projects that are not unique or do not provide value to customers or enhance workflow.
To get a Startup India loan, start-ups must secure various approvals and submit specific documents:
Obtain approval from the Inter-Ministerial Board under the Department of Industrial Policy and Promotion (DIPP).
Acquire a recommendation from an incubator affiliated with a recognized post-graduate college.
Secure a recommendation from a government-recognized incubator.
File a patent for your product or service and have it published in the Indian Patent Office Journals.
If your services involve funding and equity, register with the Securities and Exchange Board of India (SEBI).
Provide a funding letter from any state or central government scheme that supports innovation.
How to Register Under Startup Under Startup India Scheme?
Step 1: Start Your Business
The first step in starting your business is to choose a legal structure, such as a Private Limited Company, Partnership, or Limited Liability Partnership (LLP). You will need to complete the standard registration process, which involves submitting an application and obtaining a Certificate of Incorporation or Partnership registration.
Step 2: Register with Startup India
Once you have created your business, the next step is to register it as a startup. This process is straightforward and can be completed online. First, visit the Startup India website and click the 'Register' button. Enter your name, email address, and mobile number, then create a password and click 'Register.' You will receive a One-Time Password (OTP) in your email. Enter this OTP and provide additional information, such as your user type, business name, and the stage of your startup. Finally, click 'Submit' to create your Startup India profile. Completing this registration will help your business be recognized as a startup under the Startup India scheme, granting you access to various benefits and support.
Step 3: Obtain DPIIT Recognition
After creating your profile on the Startup India website, the next step is obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This recognition provides benefits such as quality intellectual property services, relaxed public procurement rules, self-certification for labour and environmental laws, simplified winding-up procedures, access to the Fund of Funds, and tax exemptions for three years.
Step 4: Submit the Documents for Registration
To complete the registration process and obtain DPIIT recognition for your startup, please submit the following documents:
1. The incorporation or registration certificate of your startup.
2. Proof of funding, if applicable.
3. An authorization letter from the company's authorized representative
4. Evidence of your concept, such as a website link, pitch deck, or video (this applies to startups at the validation, early traction, or scaling stage).
5. Information regarding any patents and trademarks you hold.
6. A list of any awards or certificates of recognition you have received.
7. Your Permanent Account Number (PAN).
Step 5: Self-Certification of Eligibility Conditions
You need to confirm that your business meets the following conditions:
1. Your business must be a Private Limited Company, Limited Liability Partnership (LLP), or partnership firm.
2. Your business has been registered in India for no more than five years.
3. Your company's turnover does not exceed ₹100 crore.
4. Your company is consistently innovating or improving existing systems.
5. Your business is based on an original idea, rather than a split or reorganization of an existing business.
Step 6: Obtain Your Recognition Number
When applying for registration, you will receive your recognition number immediately. The authority will send you the certificate of registration or incorporation after reviewing your uploaded documents. Ensure that you upload accurate information to avoid errors, as mistakes can lead to fines of up to 50% of your paid-up capital or a minimum of Rs. 25,000. By fulfilling the eligibility and registration requirements, your company can participate in the Startup India scheme and enjoy various benefits provided by the government.
Wrapping Up
The Startup India initiative has revolutionized the entrepreneurial landscape in India by offering financial, regulatory, and infrastructural support. If you’re an entrepreneur with an innovative idea, registering under this program can unlock numerous opportunities for growth and success. Begin your startup journey today and contribute to India’s transformation into a global hub for innovation.
FAQ’s
Q1. What is the aim of the Startup India initiative?
Ans: Startup India aims to promote entrepreneurship, support innovation, and create a robust startup ecosystem in India.
Q2. How long does it take to register under Startup India?
Ans: The registration process typically takes 2–3 weeks, depending on document verification.
Q3. Are there any fees for registering under Startup India?
Ans: No, the registration process under the Startup India initiative is free of cost.
Q4. Can a sole proprietorship register under Startup India?
Ans: No, only Private Limited Companies, LLPs, and Partnership Firms are eligible to register.
Q5. What are the tax benefits available to startups?
Ans: Startups can avail of income tax exemptions for three consecutive years and exemptions on long-term capital gains.
Q6. Is the Startup India initiative open to foreign startups?
Ans: No, the initiative is exclusively for startups registered and operating in India.
