India’s vibrant startup ecosystem happens to be the 3rd largest in the world with the presence of more than 50,000 start-ups, all of which is aggregate received funding of close to $11.5 Bn even amidst the pandemic of COVID-19. Although these seem to be really exciting times both for entrepreneurs and investors in India who are looking for the most profitable business in India with low investment, making this episode an almost ‘dot com bubble of India’.
Yet, the wheat needs to be separated from the chaff and clarity reinforced so that the negative fall-outs of that event of the late 1990s and early 2000s can be avoided from repeating themselves in India’s case.
Especially intended to help the MSME (micro, small and medium enterprises) business community while they search the space for online business ideas or business ideas with low investment, this article will help them make an informed decision on this front especially in the EdTech sector of India. Their new ideas of business as well as their search for ideas of small business will thus find the right direction.
It is true that the advent of technology and the unique solutions emerging from them have given birth to a new category of investors who vouch for a disruptive business idea and its growth potential. But when this comes at the cost of ignoring the basic and real foundations of business i.e. making products, selling them for profit, focusing on customer, revenue and profitability; the results are often over-evaluations, unsustainable businesses and eventual shutdowns.
This can be easily understood from the classic examples of the once-famous startups named Quibi and Loon, both of which had opened with a bang, invited great interests of the biggest of the investors, witnessed great evaluations but eventually fell flat on their faces due to the unsustainability of their business models.
This is quite what is happening in India’s EdTech space today, the overvaluations of most of the companies resulting from the lockdown of 2020 and more importantly from the hype created around mere speculations is keeping the truth from surfacing.
Therefore the examples of Quibi and Loon can serve as warnings of a possible burst of this bubble hurting investors more than the businesses. Hence, the focus of investors is now back on the basics of business i.e. Unit Economics.
What is Unit Economics?
Let us try to understand what unit economics is. The simple ratio of how much a business is able to earn from a customer over his lifetime association the company to the cost of acquiring that customer is called Unit Economics. And if that comes out to be greater than 1, it is called Positive Unit Economics and its ideal value is 3:1 i.e. a customer acquired at a cost of Re.1 yielding a business of Rs.3 to the company.
The case study of StudynLearn’s inception and progress can demonstrate how both investors and businesses can strike a fine balance between the viability of a business as indicated by its unit economics and the growth potential of the core idea of that business. This becomes all the more important for scaling a business idea as it is common knowledge that investors after making the first few bullish investments in a venture, hold back the cash flow to force the business to focus on profitability.
StudynLearn too had attracted its early-stage investors based on the uniqueness of its idea of applying technology to education, that too at a time when EdTech had just arrived on the horizon of the Indian market.
But ever since its inception in the year 2010, StudynLearn has consistently been increasing its customer base through its high-quality products and services, its ever-growing business clients, and the repeat business model that has ensured this healthy and loyal customer base. This has made Studynlearn’s business opportunity, the most profitable business in India low investment business with high profit in india
StudynLearn’s consistent focus on customer satisfaction balanced with the profitability of its business resulted in making this company break even in the year 2016 itself and has since then renewed the attention of its existing investors besides attracting the new ones.
From amongst close to 4500 EdTech startups in India today, there is clearly no player in the domain which has registered Positive Unit Economics or profitability nor has anyone been able to launch an IPO (Initial Public Offering) yet.
StudynLearn today stands at a unique platform where it can safely be called the only EdTech company in India that has Positive Unit Economics and is ready to propel itself to the next level by eyeing an IPO soon. If you are looking for the low investment business with high profit in india, join hands with us as a business partner and own the most profitable business in India with low investment.