Startup Story 💡

In the Spotlight: Ola Cabs 🚕

Bhavish Aggarwal, the co-founder of Ola Cabs, recently sparked an online debate with his remarks on Koo, stating that "recreating what already exists won’t get us there". This ironic statement drew backlash, as Ola is often seen as a localized version of Uber.

But let’s see how a frustrating taxi ride helped in transforming Indian transportation landscape. In 2010, Bhavish Aggarwal found himself stranded during a trip from Bangalore to Bandipur when a taxi driver stopped midway to renegotiate the fare. This frustrating experience inspired him to create a more reliable cab service. Initially, Bhavish launched Olatrip.com, a tour planning service. However, recognizing the need for dependable cabs, he pivoted and, with Ankit Bhati, founded Ola Cabs in January 2011. They started with phone bookings and quickly embraced technology, launching the Ola app in June 2012. This innovation transformed Indian transportation, making Ola a household name.

Cut to the present, Ola app provides mobility solutions across a wide range of vehicles such as bikes, auto-rickshaws, metered taxis and cabs; and serves 1Bn+ rides every year in 250+ cities. Interestingly, Bhavish doesn’t own a car himself and fully relies on the on-demand consumer transportation as a service.

Bhavish is also pioneering other businesses Ola Electric - India’s largest electric two-wheeler manufacturer and Krutrim - Large Language Model (LLM), similar to OpenAI’s ChatGPT.

Pitch Perfect 💸

Today on AI Shark Tank: StyleGenie 🧥

StyleGenie: Good evening, Sharks. Imagine waking up every morning and staring at your wardrobe, feeling overwhelmed and unsure about what to wear. Now, imagine having an app that knows your style, understands your body type, and stays updated with the latest fashion trends to provide you with the perfect outfit suggestions every day. This is what StyleGenie does for our users.

Shark: Okay. Interesting. Tell us how it works exactly.

StyleGenie: Sure, here's how it works:

1. User Profile Setup: When a user downloads StyleGenie, they create a profile by entering their preferences, body type, and style preferences.

2. Daily Outfit Suggestions: Every morning, the app sends a notification with outfit suggestions for the day, considering the user’s schedule, the weather, and current fashion trends. Users can swipe through multiple options and choose the one they like the most.

3. Shopping Recommendations: If users like an outfit but don’t have similar pieces in their wardrobe, StyleGenie suggests where to buy those items online, offering exclusive deals and discounts through our partner brands.

4. Feedback Loop: After wearing the outfit, users can rate the suggestion, and the app’s AI learns from this feedback to improve future recommendations.

Shark: Sounds interesting, but I still see a lot of hurdles. Can you tell me about the market size for this app in India?

StyleGenie: Absolutely. The Indian online fashion retail market is projected to grow significantly, reaching approximately $35 billion (about ₹2.85 lakh crore) by FY2028, with a CAGR of 25%​​. The broader fashion and lifestyle market in India is valued at $110 billion, with around 10% of that market currently online​​.

Shark: That's a sizable market, but also a very crowded one. How do you plan to capture a significant share of it when you're up against established players with deep pockets?

StyleGenie: For that we have a three-pronged strategy:

1. User Acquisition: We'll leverage social media, influencer partnerships, and digital marketing to attract users. Our initial focus will be on millennials and Gen Z, who are the most active online shoppers.

2. Retention and Engagement: We'll keep users engaged through a gamified experience, personalized notifications, and seasonal fashion challenges.

3. Partnerships and Collaborations: We'll collaborate with Indian fashion brands and retailers to offer exclusive deals and integrate their products into our recommendations.

Shark: How do you plan to monetize StyleGenie?

StyleGenie: Our revenue model includes three main streams:

1. Freemium Model: Basic features such as daily recommendations will be free, while premium features, such as advanced styling advice and exclusive discounts, will be available through a subscription.

2. Affiliate Marketing: We'll earn commissions on sales generated through our shopping recommendations.

3. Partnership Deals: We'll charge brands and retailers for featured placements and targeted marketing within the app.

Shark: Okay, let’s talk numbers. What traction have you gained so far?

StyleGenie: We've completed our beta phase with 10,000 active users and have seen a 20% month-over-month growth in user engagement. Our user retention rate is at 70%, and we've partnered with 50 Indian fashion brands for our initial launch.

Shark: Impressive. But again, these are early days. What are your financial projections for the next three years?

StyleGenie: By the end of Year 1, we project ₹15 crore in revenue with 2 lakh active users. By Year 3, we aim to reach ₹100 crore in revenue with over 15 lakh active users. Our customer acquisition cost is projected to be ₹350 per user, with a lifetime value of ₹3,500 per user.

Shark: Ambitious. What are your primary challenges, and how do you plan to overcome them?

StyleGenie: Our primary challenge is scaling our AI to handle a larger user base and ensuring that our recommendations remain highly accurate. We're investing heavily in our AI development team and infrastructure.

Shark: Finally, what’s your ask?

StyleGenie: We are seeking ₹7 crore for a 10% equity stake in StyleGenie. This investment will be used to scale our user base, enhance our AI capabilities, and expand our partnerships with Indian fashion brands.

Shark: Thank you for that pitch. StyleGenie has potential, but there are significant risks. After considering the market opportunity and your strategy, I believe this could be a valuable addition to the Indian fashion tech space. I am willing to offer you ₹7 crore for a 15% equity stake, provided we focus heavily on user growth and strategic partnerships. But let’s be clear, this is a high-stakes game.

StyleGenie: Thank you, Shark. I appreciate the offer. Let's discuss the details and work towards making StyleGenie a household name in Indian fashion.

Weekly Tech Recap 🗞️

• Ola exits Google Maps, moves to Ola Maps (read here)

• Social Media Platform Koo shuts down services (read here)

• D2C Sneaker brand Comet raised $5 Mn in series A (read here)

• Zerodha to start charging brokerage on equity (read here)

• India’s biggest AI startups (read here)

Job Board 🏢

Software Development 🧑🏽‍💻

• Computer Scientist at Adobe - Bangalore (apply here)

• Software Engineer at Coinbase - Bangalore (apply here)

• Software Engineer 2 at Zynga - Bangalore (apply here)

• SDE II, Payments at Amazon - Bangalore (apply here)

• Senior Product Engineer at Pesto Tech - Remote (apply here)

Product Management 🧑🏽‍💼

• Product Manager II at Flipkart - Bangalore (apply here)

• Product Manager at BrowserStack - Remote (apply here)

• Senior Product Manager at OpenTable - Remote (apply here)

• Senior Product Manager at Ocrolus - Remote (apply here)

• Product Strategy Manager - Remote (apply here)