# Lies You've Been Told About INDIA & The Truth You Need to Know!

## Метаданные

- **Канал:** Varun Mayya
- **YouTube:** https://www.youtube.com/watch?v=oHVgxbvkojw
- **Дата:** 26.05.2023
- **Длительность:** 39:40
- **Просмотры:** 528,440

## Описание

In this video we take a deeper look at the Indian startup and venture ecosystem through 100+ insightful and some provocative charts, identifying key themes, patterns and trends in Indus Valley (our moniker for the Indian startup ecosystem, or the Indian Silicon Valley).

Checkout the report here: https://blume.vc/reports/indus-valley-annual-report-2023

Outline: 

0:00 Intro
0:28 Premise
1:07 What is India?
1:49 How India has Changed
2:33 Paradox
9:37 Doglapan in India
10:29 3 Indias
12:05 India Diaspora-India’s Biggest FDIs or FDIs vs Remittance
12:51 Emerging Startups in Small town
13:39 Digital Revolution in India
14:40 Monopolization vs Democratization in Industry
16:17 India’s Decade?
20:09 Narrative Violation
25:42 Indian Consumer Sector
32:03 The Rise of Gig-Economy!
33:33 Attention is the New Oil
36:51 Conclusion

## Содержание

### [0:00](https://www.youtube.com/watch?v=oHVgxbvkojw) Intro

and today as we take a look at our achievements there is a sense of Pride but also a realization of the miles we need to walk for achieving the different shades of Independence the past can give us context and inspiration but it is only in the present that we can sow the seeds of a better future

### [0:28](https://www.youtube.com/watch?v=oHVgxbvkojw&t=28s) Premise

so I made a video many months ago about how Indian influencers were wrong about India I have a problem with the way Indian influencers are doing things about how Indian influencers were milking the past for views but they didn't actually know what India was about and that video and that report went sort of viral and at least I gave India the message of what the country is like but today I have my hands on a brand new report by the same Venture Capital firm Bloom Ventures and

### [1:07](https://www.youtube.com/watch?v=oHVgxbvkojw&t=67s) What is India?

you see this country that we live in India what is India is it a border is it a government is it the people none of those things India is a story it's a story we all believe and it's a story that's composed of many parts Venture Capital firms have invested their money in the story of India Founders have invested their time and creators have invested their soul in the story of India but this report contains something called a narrative violation a narrative violation means there used to be a story but that story is wrong in today's video

### [1:49](https://www.youtube.com/watch?v=oHVgxbvkojw&t=109s) How India has Changed

through data and stories I am going to show you how in just a period of one year India has changed what I used to believe as an entrepreneur about India has become better because of this report it's a very complicated report and if you are an entrepreneur or ever want to be an entrepreneur whether it be selling popcorn at the cinema or building the next Oyo I want you to watch this video carefully because as I tell you will see the doglapan of India come out into the Limelight this is the Indus Valley report part two good

### [2:33](https://www.youtube.com/watch?v=oHVgxbvkojw&t=153s) Paradox

we are only going to cover the highlights of this report because this deck has 125 slides it shows you the true colors of India but we are going to capture its Essence the first slide of the report starts out with a paradox it starts by saying that India has one of the oldest social stratification systems in the world the caste system very very old but India is also adopting the most recent technology in the form of blockchain both those words have combined 65 000 cast certificates have been issued on the polygon blockchain what a collision of words one in Ancient India that has been around for Millennia and another a company that is on the edge of Technology colliding it can only happen in this country the most amazing fact about India is that we are now the fastest growing economy in the world for financial year 2022 to 2023 our GDP is sitting at 3. 5 trillion dollars making us number one in terms of growth the services sector in India no not products Services people sitting and working at TCS and Accenture and companies like that contributes to more than 50 percent of our GDP the crown jewel is the it and BPM sectors that contributes to over 80 percent of exports it directly employs about 5 million people and indirectly supports 12 million people so next time you see somebody in the comments saying yeah don't learn coding it's not important I just want to tell you how much of our GDP and exports relies on coding in fact I believe in it so much now I made an investment in a friend's company who are planning to solve this coding Problem by actually picking up these students teaching them giving them jobs helping them ship their services abroad no this part is not promoted it's just how much I believe in that concept and how much it actually contributes to our GDP next I want to run through some macro Factor 1 lakh 96 000 is our per capita income this is actually far behind China even though we say India is better than China this that China's per capita income is still close to 13 000 we have a 1. 4 billion population scheduled to take over China and become the world's largest population this year the cool thing is that China's average age is 38 our average age is 28 which means we have 10 years of potential power more to make something miraculous happen while the world's inflation is sitting at 8. 8 percent our inflation is 6. 8 percent which means we're doing fairly healthy in a bad economic climate our Equity market cap is 3. 5 trillion not the kind of entrepreneur raising hundreds of millions and building the next food delivery app these are small and medium Enterprises sometimes sole proprietorships in the U. S there are 1 million retail stores in India we have 12 million retail stores which is 12 million entrepreneurs 65 million small medium Enterprises of whom 70 are sole Proprietors our formal organized Workforce is just 10 of the population this is why when I say AI is coming and many jobs are going to go and only the top one or two percent is going to be employed when I say that a lot of people look at me and say how can one percent being employed support the entire population well it's not that the rest are going to be unemployed many of them yes but many are going to start their own thing and it's already like that today 10 organized formal Workforce supports everybody else along with the entrepreneurs that make up the rest next let's talk about online we have lots of online users we have 850 million internet users more than half of India is sitting online or with 600 million users are smartphone users but the funnel gets interesting only 350 million of them transact once a year online that's it just once a year and more online 185 million a consistent online shoppers but just 45 million are mature internet users who make up 50 of the wallet spent online in fact one of the cool things about my audience that I've learned over the years is that if you are watching me you are part of that mature internet user base very likely the reason we have such a high top of the funnel is because of very cheap bandwidth and very cheap data plans mobile data pricing is one of the lowest in the world just slightly above Israel but the amount of data we consume one of the highest amounts in the world the good part about this is that it leads to massive user bases for apps in the country WhatsApp has 500 million users in the country YouTube has 467 these are massive numbers in fact out of 600 million smartphone users 500 million use WhatsApp imagine that level of penetration as a business except WhatsApp and YouTube If you combine all the other social apps in India that total advertising market cap is totally a 4. 5 billion dollar market tiny number in fact in 2022 Snapchat alone in the US earned more from ad spend than all of these companies put together it's not just with advertisements anything that is consumer in India have much smaller numbers than we imagined for example there are only 37 million unique mutual fund investors in the country that is much smaller than we thought it would be there are only 35 to 40 million unique credit card holders in the country only 13 of students who study between 1st and 12th standard in India pay more than 1000 rupees a month in school fees imagine school fees in less than 12 000 rupees a year is the norm for India if you've been to a school that costed you more than that per year you're among the top 13 richest in this country and to top it off only 7. 5 percent of households in India owns a car is a good proxy for whether you are lower military class and above or below and only 7. 5 percent of Indian households owns a car so if you do own a car congratulations you won the lottery behind this there's an undersized consuming class less than 12 percent of India make less than one lakh 30 000 a year 50 of India makes between a lakh and 4 lakhs a year if you make between 4 lakhs and 31 lakhs a year you are among the top 38 in the country and if you make more than 31 lakhs per year you are in the top five percent of this country incredible numbers the next slide shows the

### [9:37](https://www.youtube.com/watch?v=oHVgxbvkojw&t=577s) Doglapan in India

doglapan these two India we have an India that cares a lot about the avocado is supposed to be a Premium Fruit it symbolizes a Premium Fruit and there's a populace of India who live in India who thinks that everyone has that premium lifestyle and at the same time in that same compound there are probably many people that's represented by the banana there's a show called decoupled in which there's an artist who shows an avocado and a banana an avocado is supposed to be a Premium Fruit only some people in the world can afford it but India has such a medley of population that we have people who love the avocado and the common man who is given only the banana is ironic because I'm somebody who hates the avocado I love the banana I think it's a 1 wonderful fruit symbolizes that there are two indias living in one place in fact as we go through the report we'll see that it's

### [10:29](https://www.youtube.com/watch?v=oHVgxbvkojw&t=629s) 3 Indias

more than two indias in fact it's probably three or four like we mentioned in the last video India 1 has 120 million people and produces 1. 4 trillion of GDP India 2 has 100 million people and produces 300 billion dollars of GDP the difference between India 1 and India 2 is India one has a lot of regular transactors online they spend a lot India too spend occasionally once in a while and India 3 has 1 200 million people but produces only 1. 8 trillion dollars in GDP they are 10 times the size of India 1 but produce only 20 to 25 percent more than India won in terms of GDP even though they have 10 times the Manpower unfortunately the report has realized after lots of research that these people are non-monetizable users sure they will come they will use your app they will have fun but the minute you ask them to pay money they will not pay simply because they don't have enough most apps are now targeting India one Netflix credit dunzo Etc because they realize that's the same GDP whether you go after India one or India 3 except you need to hit 10 times more users and the cost of acquisition just catapults when you're going after 10 times the number of users imagine your ad spent but if you go to India one you need to capture less number of people and you're able to monetize them better because they are regular online transactors but here's an interesting stat that was not captured the last time

### [12:05](https://www.youtube.com/watch?v=oHVgxbvkojw&t=725s) India Diaspora-India’s Biggest FDIs or FDIs vs Remittance

outside of India one two and three there is an Indian diaspora which is the people who are from India but don't live in India they are abroad they send back in insane amount of money I've lived here for more than 30 years I came from Andhra Pradesh Bangalore I'm basically from Kerala I was born in Mumbai the Indian diaspora transferred 100 billion dollars in 2022 back to the country which is more than the foreign direct investment into this country imagine your relative or your Chacha who's gone abroad and sending money back all them combined are pumping more money into this country then all the top investors sitting outside of India combined the next few slides of this report cover the fact that lots of new

### [12:51](https://www.youtube.com/watch?v=oHVgxbvkojw&t=771s) Emerging Startups in Small town

startups are emerging in small towns in India and it's so weird we used to have a generation where a tier one person used to do an MBA and then build products for the rest of India we now have a person sitting in India 2 and India 3 building for India one it is a weird transformation of the country where anyone from anywhere backed by local Angel Investors can start a company it is truly an exciting time to be in and shows like Shark Tank have given visibility to many of these small time Founders it's also mainstream entrepreneurship never in my career did I think more people would understand the plight of somebody who has raised money then today after Shark Tank denotable conversation not something I have to spend half an hour explaining to somebody when I meet them the next thing

### [13:39](https://www.youtube.com/watch?v=oHVgxbvkojw&t=819s) Digital Revolution in India

is that the base of direct and indirect taxpayers has been growing and GST has been a huge hit in expanding the taxpayer base in mid-2017 6 million companies paid GST in India today that's 14 million companies income taxpayers went from 40 million in 2015 to 63 million in 2021 and there's also rising formalization in India in fact I was talking to my cook and I was telling her if she can come twice a day and she said that I've started an agency therefore I am quitting so everyone's organizing everyone's getting together and this is being supported by the digital infrastructure of the country on the identity side we have aadhar we have e kyc we have digital signatures and online repositories payments as you know we have the backbone in terms of UPI in terms of data sharing things like account aggregator that have now come in that allow you to link your SBI account and your HDFC account and all the other accounts which allows us to trust people more but there's one big difference in

### [14:40](https://www.youtube.com/watch?v=oHVgxbvkojw&t=880s) Monopolization vs Democratization in Industry

how China has done this and how India this is very commendable in China all of this is owned by the government it's one centralized entity and if they don't like you you're out but in India this power was handed over to the private companies like phone pay and paytm the advantage with this is if paytm treats you badly you can always go to phone pay and if phone pay treats you badly you can always go to the others it reminds me of my college when I was in manipal in college there was only one internet service provider which was BSNL and trust me they treated everybody badly until competition stepped in which is a good thing for the market UPI payments have been going berserk from 585 000 crores in 2018 it is now 12 and a half million crores in 2022 in fact UPI payments to Merchants are now bigger than debit cards and credit cards combined what a crazy story for UPI and just like UPI India is also bringing in ondc which allows any vendor to have the infrastructure that Amazon and Flipkart provide their vendors without being pushed around by Amazon and Flipkart Amazon plays favorites they have two or three companies that they keep pushing to the top they build their own Brands if a particular company is working well because they have data access go in DC democratizes that manufacturing has also been going crazy in the country because of four reasons the first one is friend showing and I love the use of the word because these people are VCS right they're Venture capitalists they will be careful about what they put in the deck but I don't have to be careful what they

### [16:17](https://www.youtube.com/watch?v=oHVgxbvkojw&t=977s) India’s Decade?

mean is India and the US are political allies U. S and China have been having trade War tensions and India is taking advantage of this in fact companies like apple now have a China plus one strategy but they're saying we don't want to be too dependent on China let's also get India as a partner in fact this year six percent of iPhone manufacturing happened in India this is a stark difference to zero many years ago but the rest is still in China and I feel that number is slowly going to shift towards India over the next few years the second thing is government incentives government is spurring manufacturing growth via the pli or the production linked incentive policy this was originally introduced by the it Ministry and as we know it has boomed incentives of four to six percent of production costs were given basis positive results the policy has now spread to 14 sectors with an expected investment outlay of 25 billion dollars the policy aims to create national manufacturing Champions 60 lakh jobs and production worth 375 billion dollars over the next five years and one of the reasons why manufacturing is going crazy in India is because it's actually cheap to manufacture things in India from a labor cost perspective we have one of the lowest labor costs in the world if you compare US to Singapore it costs you about 160 dollars per month to get a laborer in India that same laborer will cost you nearly five thousand dollars in Singapore and this is not a bad thing it doesn't mean we're underpaying these people it means that the cost of living in India is so low that these people still have the same type of Lifestyle as a person in Singapore making that kind of money it's like rental prices for a one bhk in New York now cost 50 to 60 lakhs per year that's because they're also making that kind of money so their lifestyle adjusted to the amount of money they're making is pretty much the same this low labor cost for a business when they're deciding to Outsource to Singapore or to India it makes us an obvious choice with a cheaper choice and as more and more deals come here we can slowly increase prices and finally lots of capital expenditures going in India that also seems to be returning in fact the capital cycle is turning which makes it a good time to be Manufacturing in India right now let's talk about narratives there are three very important articles and magazine covers put on this slide it's India's decade every week I go online there's somebody on Twitter saying it's India's decade India is going to be the future now there's one of two things either these American influencers and influencers across the world are doing this to farm engagement or they're doing it because they genuinely care about India the cool part is it doesn't matter because like I told you countries are stories they're very powerful stories and when people can hype up a country whether they're outside or inside doesn't matter that delusion can sometimes become real every great company you hear today once started as an idea as a story that enough people believed in and if too many people believe in it then that story Rises by itself because you have to take the money that comes out of the story and invest it in things like manufacturing that India has clearly shown it can do but we have been here before every 10 years there's a magazine cover that says this is India's year India will outpace China every year this happens these are optimistic people this is a political narrative it's a story about India you want to make it sound good you don't want to be a pessimist what's different this time is three specific things first is that we are improving public physical infra and digital infra things like UPI truly make India a treat to transactant versus places like Dubai where are struggling to pay for the simplest of things UPI has made payments frictionless and has increased the total number of peer-to-peer transaction in the country simply because of how easy it is same

### [20:09](https://www.youtube.com/watch?v=oHVgxbvkojw&t=1209s) Narrative Violation

with physical infra the more you invest in manufacturing the better roads you have and the best proxy for this is what is your Highway length you can tell how a country is spending its money based on the length of Highway so and India's Highway land has gone from 70 000 kilometers to 151 000 kilometers in just a span of 10 years things like GST and digital welfare are making sure money comes back into the state for us to spend on the next cycle of projects finally teams that allow people to take loans are allowing us to be a more risk-taking Nation wish to always be very risk covers whereas China and the US are very risk-taking the individuals there are risk-taking because the government supports it that is coming to India the new industrial policy for example has been proposed for the first time after 1991 and it aims to boost access to finance for Rapid industrial growth all of this has led back to the central theme which has made India the fastest growing major economy in the world today like we've learned manufacturing is getting better exports and software are getting better and this is leading to a lot more consumers having a lot more liquid cash in their hands she spends for any random person are divided into Staples which are food and other expenses like that and discretionary spending which is should I buy a PlayStation or should I buy jewelry that's discretionary and it turns out India's discretionary spend has been increasing consistently which is a sign that either your Staples are getting cheaper to buy or that you're making more money and both of us know that Staples are not getting that cheap so people are making more money in this country in fact if you look at this graph and here's an exercise for you can see that the average Indians spend on food in the last 10 years has been steadily decreasing what do you think is the reason for this something is making it cheaper you can go through this video you can scrub back and you can see I've already mentioned why I've already mentioned this change try and put two and two together why is Indians spend on food getting cheaper while food itself is getting more expensive tell me in the comments below I know we've been talking about India one two and three but let's talk about the Baseline and this is access to water supply in India today 99 of India has access to electricity that's a crazy feat even 2010 this was 76 we have successfully electrified our country but I promised you a narrative violation the story is too good to be true there's a lot of good parts in the story so what's the catch why is it more Capital flowing here why is everything slowed down well because there is a violation in the story a violation that we've already touched upon to a certain extent three main reasons the first one is the target addressable Market the number of people who can actually reach and sell your products to is not as large as we once thought outside of the top 30 million households in the country there is a steep drop in the propensity for that person to pay people just don't shell out money beyond the top 30 million households in the country there is a brutal power law which means that even though we have so many people a small handful do all the spending and you might not immediately realize why you might think well a very rich person is not going to eat that different of a food from a poor person maybe it's twice the price or Thrice the price how can it be so different well it's because of business if you're very rich and you own businesses those businesses will hire people those businesses will spend on things and many rich people own multiple businesses so through their entities they're hiring thousands of people and spending across many of those people so their spends and their contribution to GDP is not one or two or three times somebody who doesn't have money it's thousands even millions of times in some cases which means there is a power law the richest businessman would be okay if it's spending a billion dollars or two billion dollars on a deal but a poor person can't even fathom those numbers and finally there's a tapering of the frequent user base we think that apps are going to have certain number of users today three years later gonna have 10 times those number of users but it turns out you can hit this 30 million household very quickly after that engaging user base tapers off one percent that is 15 million Indians pay any tax at all and the reason for this are not just because people are not making money is that we have a very high exemption rate the government has realized that if you tax somebody that's making like I said hundreds of thousands of millions of times of somebody that's poor it is better to focus on that person because that person will pay you so much tax versus wasting your time on people who don't have that kind of capital and are anyway going to hide their numbers what are you gonna do are you going to send the tax department to the house of somebody making three lakhs and take assets from them it's not worth the time or effort so Indian governments just like the smart startups are focusing on the power law and going after the top there's also one interesting stat here which that the income growth amongst the elite has been growing because the number of taxpayers there has also increased very sharply nitin kamath who is the co-founder of zerotha recently set out to estimate the potential paying users for b2c products and he said some things that will demoralize a lot of Founders which is what I said entrepreneurs have been wrong about India until we have finally learned about the market because the story sold to every VC is that today we have this many users tomorrow everyone in India is going to come online everyone's going to make money everyone's going to transact but that's the narrative violation

### [25:42](https://www.youtube.com/watch?v=oHVgxbvkojw&t=1542s) Indian Consumer Sector

you can get the user sure but will they transact unlikely nitin kamat says that the Indian market for b2c Tech businesses in terms of users probably 15 crores at Max he says that with fintech as a reference some data is available so he says that when people say India has 140 crore people and only 9 crore dmat accounts he says that but not all of these are unique the unique count is six crores many people have multiple accounts out of this active dmats withholdings above 10 000 Rupees is just three crores and this agrees with the mutual fund numbers they're about three and a half crore unique mutual fund holders in the country despite things like MF sahih which is this crazy campaign that was run despite all of that just three and a half crore people and he says that this could go to 15 crores Max but that's the upper ceiling three crores is what you can actually hit this is a much smaller number than most investors agree to when tiger rose called here when SoftBank was called when all the other investors were called here with the Bharat story that the transacting section of bharath is going to become bigger they're going to make more money it turns out that that's much harder to execute not because the founders are bad or stupid but because the power Lords in India are very skewed in fact Netflix has one of the lowest prices across geographies with less than 160 rupees per month per user and even they just have 6 million subscribers 6 million is a small amount for the amount of money that Netflix has spent in India and household goods ownership stats mirror online paying user stats in fact only 16 of households in India own all three of TV AC and washing machine look around you don't have to own the house even if you rent a house if you have these three things you are in the top 16 of this massive country and I'll tell you how strong this India Alpha power loss it is so strong that on zomato five percent of the user base makes up 33 of all orders place that is a massive amount for just five percent to cover in fact the product manager swiggy once told me that their app kept going in the background and he said it would go in the background come back and later on they found out what was happening is that the person the buyer was opening swiggy then checking the price of that same restaurant for the same product on zomato and then swiggy and zomato and back and that's why the app was going in the background and this is for a product that's 30 to 40 rupees can you imagine India is very price conscious beyond that India one segment they're on UPI which is Google paytm phone pay 6. 5 of users are responsible for 44 of transactions nearly half of all transactions on UPI are made by just six and a half percent of users tiny number one percent of Indians account for nearly half the flights taken in this country one percent of Indians nearly half the flights can you imagine that math and one percent of Indians take home 22 of India's income and it seems we are nearing the limit of the paying potential of this country for now in fact all the revenue potential in e-commerce it's starting to hit a plateau much of the newer growth is going to come from rural households which is India 2 and India 3 mostly India 3 who don't have that higher paying potential so even if they buy they will buy smaller ticket items they'll buy products worth 100 rupees or 50 rupees instead of spending the average 500 rupees but those three steroid shots that made us buff as a country are now waning the effect is wearing off it's weakening and I don't think we are going to find another jio or a covet anytime soon that is suddenly going to add new transacting users to apps and businesses out there I don't think it's going to happen anytime soon in fact the estimate of acquiring a new online shopping household is between 5000 Rupees to 12 000 rupees so for acquiring 30 million new households there'll be anywhere from 1. 8 billion at the lower end to 4. 5 billion dollars at the upper end to acquire 60 million households is nearly 10 billion dollars of spend which is just not worth it because you're not going to make that money back they don't have the paying potential for that money so most companies are saying let's focus on that 10 years later data once they've improved and the next slide says that because these steroid shots are waning off the number of transacting users on apps like zomato have plateaued they've flattened the graph is flattened it's not no longer like this it's straight in fact the top four it firms are now laying off people after so many years it is going to be a tough one or two years for everyone in business in fact the Jeffries report put out a statement saying that they think that the staple industry believes rural has bottomed out but there's no conclusive evidence of pickup as of yet we prefer Staples over discretionary we prefer things like the essentials rather than a new PlayStation or a car but the cool part is India and Indus Valley which is the business ecosystem of India is learning through every generation what I'm telling you now I wish somebody came to me 10 years ago and just told me but we didn't have this I didn't have somebody picking out a report like this and conveying it to me in simple terms I didn't have Twitter where I could go and see what people are thinking what people are learning live we now have that and we can make the next gen generation better because we can learn from each other through sites like Twitter through videos like this on YouTube this is what is going to push us forward as a business Nation now Venture Capital which is outside funding has been a great driver for wealth in companies many of the senior Talent who's worked there for three or four years have been able to cash out because when investors come in they want a certain stake in the company and they're willing to give Founders and ex-employe's whole stock a little bit of money at a discount to be able to get those shares at a slightly cheaper price but that is slowing down in fact I'm an entrepreneur I've been in the ecosystem for about 10 years and I can tell you that it might be a very risky time to start or even join a startup funding is going to be dry over the next one or two years everybody believes that investors are not deploying Capital because IPOs have slowed down if there's no liquidity if an investor can't foresee him making money out of retail investors later he's not going to put in money now so it's going to be dry in fact now is the best time to work in a startup because the efforts that you put now will give you ESOP all the tourists by now are gone all the people continue to stay in here are people who want to run or work in startup and if you join a startup now three years later your esops would have vested and matured and when the next Bull cycle comes you'll be the person getting rich if you make the BET today however let me warn you it is still a

### [32:03](https://www.youtube.com/watch?v=oHVgxbvkojw&t=1923s) The Rise of Gig-Economy!

risky bet and all these startups have increased the size of the organic labor pool in 2017 I started writing a book called pajama profit where I said that the future of India is going to be the gig economy future people laughed at people said remote work design jobs gig working driving a cab for people in the morning and then doing coding at night no chance but it turns out that I was right and this is the best part about social media and three years later you can see whether you were right or wrong and with pajama profit I was right gig work in India has gone from 1. 4 million people to nearly 4 million people it's been up and to the right more people are doing two three four gigs a day and I think that's the future we call it Moonlighting everyone has multiple interests we have all these Computing tools we don't need to put an extreme amount of manual labor in what we're doing anymore to produce output so we have free time per day why not use it to make a little bit of extra income which is what people are waking up to in the country and startups will become much more visible like with the IPL lots of startups have sponsored the IPL and they're doing it to build trust I've said this before but India is an underbranded Nation we have lots of products but we don't trust these small products that are sold at stores unless there's a brand behind them there's a reason we buy Tata salt and Tata Nano and Tata steel We Trust startup so all these startups are trying to generate trust and spending on the IPL is yet another way of them trying to win your trust and if I show you these logos on screen whether you hate them or you love them you recognize them and that's all they are playing for to be

### [33:33](https://www.youtube.com/watch?v=oHVgxbvkojw&t=2013s) Attention is the New Oil

recognized so they can build more products for you in the future and it seems like the best companies to come out of the country are the ones that take advantage of some inflection point for example when aadhar came out lots of businesses became successful out of it zeroda was actually a huge beneficiary of other UPI gave paytm and phone pay a big boost to the point where something like paytm now has many more users than something like ICICI Bank and 2022 was a great year for electric vehicles so if you're working in electric vehicles continue working at it because we have crossed 1 million sales of electric vehicles last year just look at this graph and the other half that is online has a very interesting Dynamic 10 of Nika's Revenue comes from online ads that they show on their platform it's the same with Flipkart and Amazon it turns out that most people are sitting on these platforms these e-commerce platforms and just scrolling and somebody's paying to show an ad of a lipstick and it turns out that is more relevant than you getting an ad for lipstick on a WhatsApp or any random platform where there's no connection to what you're doing so e-commerce companies are also becoming advertisement platforms so it turns out where people are ready to do Commerce it's a good place for you to run ads and I also think that's gonna happen in video in fact 10 percent of content consumed in India right now is short form video content which is now contributed into one percent of digital ad spends and that's only going to increase the next slide has a tweet by Kunal Shah there's a quote tweet by this dude called varunmaya that shows the interesting part about Clubhouse see all these apps in the US they raise money and obviously they have consumers users and some percentage of those users can be monetized but then they go to those investors and say now we are expanding to India it's the same scene with Netflix they say we're going to expand to India all these views are going to join us our daily active users and weekly active users and monthly active users are going to explode and therefore we're going to make so much money and what this deck has taught us it's very easy to get those users but it is very hard to monetize them India is called the Dau Farm of the world which is daily active use of farm in the world for a reason you get lots of users they simply don't pay in fact one of the ways to make users pay is through gaming and here's a very important thing for you to note when VCS talk about gaming they're usually talking about real money gaming try the gambling gifting things like that it's not valorant they're not talking about valorent or Age of Empires right so it's a different form of gaming and this seems to make a lot of money in fact I know a very popular fantasy sports app that says that we are here for the love of sport and cricket and whatnot but 99 of their revenue comes from rummy and poker it seems like one interesting way to monetize the Indian audience it's just questionable what they're up to and even the older generation of Indian companies are now going online Hindustan Unilever Mahindra many of the others many of these old companies are also starting YouTube channels when I started my YouTube channel they said why is this founder sitting and doing YouTube what's the purpose but now we have these old Enterprise companies doing it because attention is the new oil especially relevant attention not just have a

### [36:51](https://www.youtube.com/watch?v=oHVgxbvkojw&t=2211s) Conclusion

social media app and have lots of user element ad running all over the place on it is relevance if you start a channel for gardening then you can sell gardening things it's just obvious and all these old school companies are going online because they realize it's a very powerful acquisition Channel and all of the e-commerce players that are still making money through ad Revenue like I said 10 of Nike's Revenue comes from their ad Revenue but despite of that they are launching their private label Brands they're saying we have this distribution we have all this data what they want why not just start our own label like Amazon has Amazon Basics it's learning from the data of all the people that are selling on Amazon then creating its copy brand and putting that at the top of listings and India is not very happy with this we are building out our own e-commerce in frog in ondc and now something called gem that allows us to give people a platform without this manipulation by these large players one interesting Insight I saw from this deck was that tier 2 and tier 3 India shop with voice this was very insightful for me in fact 5x was the year-on-year growth in voice search users two in three users of voice search are from tier 3 in smaller cities and they're making these voice search in their Regional languages 40 of voice search users search for fashion and one in two of these Regional voice search users are first time Shoppers so if you want to expand you have to go Regional I want to end this video with one last thing okay we talk about apps and daily active users and all these Mega numbers with people on their phones but guess what paytm launched a sound box a physical product because India is a low trust society and Merchants don't trust that somebody's made a payment so paytm lost a sound box which is now selling 1 million units a month so for all the things we can say about online India still buys products it can physically touch and feel and that is very telling of the Indian story what I've learned is that India will not pay for the greatest of software online but they're willing to pay 125 rupees a month for a physical sound box which can obviously also happen through the phone but these people still want a physical sound box that says you have received 40 rupees from Rahul can you imagine that is the reality of the country we live in that's it for me if you like this video please subscribe go check out the authors of this report it's Ajit Paya and amalwartz for Bloom Ventures definitely go check them out and definitely subscribe if you want to learn more about business artificial intelligence future and Tech in India bye

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*Источник: https://ekstraktznaniy.ru/video/12489*