This article has been written by Aditi Sahu pursuing the Diploma in Business Laws for In-House Counsels from LawSikho. This article has been edited by Aatima Bhatia (Associate, Lawsikho) and Dipshi Swara (Senior Associate, Lawsikho). 


A tech start-up is a business that focuses on bringing new technology products or services to market to address an issue for which there is no obvious solution and when success is not certain. These businesses create new technology products or services or rework existing technology products and services. In other words, we can say that a company that delivers or substantially relies on a digital technical service/product/platform/hardware as its principal revenue source. 

What are tech companies meant to be?

A tech company is more than just a traditional company that makes use of technology. It’s not only a scalable business model, but can also be scaled up or down. In reality, such a company makes a living from its rent, but dominating digital corporations like Facebook, Uber, Netflix, and Amazon  always suffer due to economic ups and downs. We can now clearly see how distinct tech companies are from traditional businesses — even ones that run networked infrastructure. A tech startup must meet three requirements:

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  1. Increasing returns to scale characterize its business model, which is supported by supply-side economies of scale, strategic positioning, built-in network effects, and supply-side platform effects.
  2. Its key strategic goal is to give an incredible experience to its users, as this is the only method to gain trust and attract the users who are important for maintaining and increasing profits.
  3. It collects user-generated data on a regular and systematic basis, allowing it to continuously improve the experience and, as a result, maintaining and increasing returns.

Detailed structure of tech startups in India

  1. CRED

CRED is one of the greatest and free apps on the market for earning incentives when you use it to pay your bills. The program itself is incredibly user-friendly and has a lovely layout to work with. These incentives include everything from free stuff in exchange for CRED coins to rebates and more.

You may use CRED to earn big rewards if you use a credit card regularly and pay your bills through any other app. According to entrackr, CRED had almost no revenue in the fiscal year of 2019. The interest on their deposits generated INR 3.03 crore, which was their only source of income. The corporation spent INR 64 crore in total.

Before using the app, the user should know about the app in detail. Here are some questions that were answered which may strike in customers’ minds while using the app.

  • How does CRED make money?

This app has not only one source to make money or revenue. CRED has various products, service plans, etc. CRED makes money by:

  1. Charging a listing fee for products- CRED is an app that rewards users for purchasing products and services from businesses. The business pays CRED fees every time a user chooses an offer by redeeming CRED coins from the app and currently, this is CRED’s primary source of revenue.
  2. Offers that businesses wish to display to the app users- CRED collects your financial data while you pay bills and use the app to provide you with better offers in the future. This is their secondary revenue source. CRED charges banks and credit card firms to gain access to the data or to advertise their products directly to these clients.
  3. CRED Pay- It was created in collaboration with Visa and Razorpay. It gives brands a direct-to-consumer (D2C) channel by allowing them to accept payments instantly on their platforms.
  4. RentPay- A service provided by CRED, allows tenants to pay monthly rents with a credit card, and the funds are instantly transferred to the landlord’s bank account. The app’s main benefit is that it allows users to acquire an interest-free credit period on their rent while also earning reward points on their credit cards. Depending on the user’s credit card network, CRED will impose a transaction fee of 1% to 1.5 percent.
  5. CRED Stash- It is an online lending platform that provides customers with a personal credit line. There are no fees associated with registering or subscribing. The bank, on the other hand, charges interest on the money borrowed, which is indicated on the app during the loan application process.
  • What is the CRED model?

The three pillars of CRED’s business strategy:

  1. A credit score of at least 750 is required to participate in CRED programs. This program also allows users to share information like credit card numbers, email addresses, and credit scores, as well as how they invest their money. You’ve accumulated CRED coins, which you’ll use to purchase prizes while paying your debts.
  2. CRED must include companies and form relationships with them to make these offerings available. When the client pool is made up of people from all walks of life, the visibility they gain through the CRED application benefits both young and elderly businesses.
  3. People who pay their credit card bills or withdraw money from their bank accounts by using payment apps, CRED gives them greater advantages as a credit score if they pay their credit card bills through this app. 

The user interface of the CRED software is excellent. Users will sign up for the app to check what credit card bill bargains are available.

  • Is CRED an authorized source for any monetary transaction?

Yes, When the user completes his registration procedure on the CRED app, then he must go through a series of KYC and credit-related review steps that involve the RBI. The app may not be able to process users’ credit scores or access their personal information unless RBI gets involved.

  1. Dunzo

Dunzo is an online shopping platform that delivers products to customers. It is currently based in Bangalore, India. One of the company’s apps focuses on hyper-local delivery. In other words, customers will be connected with local delivery providers and businesses so that they can expand their online presence. Customers can, for example, have groceries, medicine, pet supplies, and much more delivered to them.

  • How the customers access Dunzo

Users can either download the Dunzo App or order/request services from a website. To order from a Dunzo partner, a user must first create an account, select a location, and then select a category. They can also enter pick-up and drop-off addresses for other services in their city.

Dunzo’s staff can complete a job in as little as 60 minutes and it charges a small fee for the delivery service. Also, the users have the option of paying with Dunzo cash or any of the other payment methods offered by the app.

  • In which area or region does Dunzo serve its services?

Bangalore, Mumbai, Gurgaon, Delhi, Hyderabad, Pune, Chennai, & Jaipur are the area where Dunzo operates its business and the customers of this region can avail the services like Online restaurant discovery, packages, online ordering, pick-up and drop-off, bike taxi, grocery delivery, medicine delivery, laundry delivery, and local couriers.

  • How does this Dunzo business generate Revenue?

In FY19, Dunzo generated total revenue of INR 3.5 crores. One-sixteenth of the INR 2.7 crore total came from “other incomes.” For Dunzo to be successful, it must have five distinct revenue streams:

  1. Dunzo makes money by charging a delivery fee (which can range anywhere from ten cents to sixty dollars).
  2. A certain percentage of the sales from the partner’s store.
  3. Demand can spike suddenly, and when it does, the price goes up. This is known as Surge Pricing or Demand Pricing.
  4. Even services like pick-up and drop-off differ in price, as do home repairs and obtaining a specific item from a different location.
  1. Razorpay

India-based startup Razorpay was founded in 2014 and has its offices in Bangalore. Businesses can use the company’s online platform to make and receive payments. In addition to debit and credit cards, online banking, and various payment wallet platforms, users will be able to make payments in a variety of different ways. For businesses, this simplifies the payment process.

As per Harshil Mathur, CEO and Co-Founder of Razorpay,

“The majority of payment platforms get their APIs from banks,” Then, they integrate with banks and create a new layer of protection. As a result, they all have the same appearance. But with Razorpay, they had to build the product first, leaving the bank integration as a black box, and then they could integrate with the bank. They talked about what the merchants wanted and what our customers wanted. When they found out what they were, then they developed their product.”

  • Business Model of Razorpay

For each subscription collection transaction that takes place through their gateway, the platform charges between 0.25 and 0.5 percent of the total amount collected. Multiple revenue streams have been created as a result of the platform’s version 2.0 launch. Two percent of every transaction made through their payment gateway is charged by the company, according to their website.

  • How does Razorpay get funds?

Singapore’s sovereign wealth fund GIC and Razorpay’s existing investor Sequoia India led Razorpay’s most recent funding round, which raised $100 million. Due to this funding, it’s now part of the elite group of unicorn startups!.

In addition to Sequoia India, the platform’s investors include Ribbit Capital, Tiger Global, Y Combinator, and Matrix Partners.

  • Is Razorpay safe to use?

Yes, this payment gateway is safe for payments or any transaction. EV SSL (Extended Validity SSL) is used by Razorpay as a payment provider on its website to ensure the highest level of security. Data sent over the Internet is unencrypted and visible to anyone with the means and intent to intercept it if TLS Encryption is not in place.

To protect the Personal Information stored in their database, they employ industry-standard security measures. Customer service representatives, for example, are restricted from accessing your Personal Information unless they need it to perform their job function.

Following its most recent funding round, the platform is currently valued at around $4 billion. Since its inception, Razorpay has raised a combined total of $206 million in funding.

  1. PharmEasy

PharmEasy is an online pharmacy that facilitates the delivery of medications and other medical supplies. PharmEasy is present in several major Indian cities. PharmEasy has made shopping for pharmaceuticals online simple and convenient.

  • How does the PharmEasy app work?

PharmEasy has created a healthcare delivery platform that enables India’s healthcare system to become more efficient and modern. It acts as a Grofer for medicine. Patients can use the platform to stay in touch with a variety of local pharmacy stores and retailers. Today, data and technology are the driving forces behind a thriving health and wellness ecosystem. And PharmEasy is combining the two to improve India’s healthcare system.

  • Source of Revenue for PharmEasy

PharmEasy makes money by showing sponsored results from several pharmaceutical companies. Such advertisements might be placed on a company’s homepage. Advertising is a significant source of money for this e-pharmacy, and it is utilized to the fullest extent possible. PharmEasy’s revenue is supplemented by attractive discounts.

  • How to use the app for buying any medicine?
  1. Step 1: In this step, the customer has to open the app and login into the website and after login, they have to upload their prescription of the medicine. When the prescription will be uploaded completely on the Afterwards, the prescription is forwarded to a local pharmacy.
  2. Step 2:  The prescription is collected by the delivery person, who then takes it to the pharmacy to be validated. If you have a legitimate prescription from an authorized medical practitioner, then it can be handled by a pharmacist.
  3. Step 3: The pharmacist gathers all of the necessary medications and prepares them. Also, if the prescription specifies only salt names rather than brand names, the pharmacist will call the customer and let you know what replacements are available in the store. They supply medicines only after the verification from the customers. Once the prescription has been verified at the store, the order is processed and then dispatched.
  4. Step 4: It will be delivered to the customer’s door by one of their delivery agents. They deliver drugs directly to our address without any fuss. COD (cash on delivery) and online payments are both options for paying for medication.
  1. ZestMoney

ZestMoney is a Bangalore-based fintech start-up and it was established in 2015 and has its headquarters in Bangalore, India. The company’s goal was to make shopping and paying in EMI much easier for people who didn’t have access to a credit card or didn’t have a good credit score. Millions of Indians now have access to the EMI process as a result of this.

  • How to use ZestMoney for any monetary transaction?

It includes a very simple process which has to be followed by the customers to make any payments. These steps are:

Step 1: Download the app and complete the sign-up process by making your profile and also set your credit limit.

Step 2: Update your KYC and set up a credit limit on your payments.

Step 3: Purchase from our merchant partner and pay with your ZestMoney credit limit, which was provided to you by our lending partner.

  • Is ZestMoney regulated by the RBI?

ZestMoney is India’s largest and fastest-growing fintech consumer lending platform. The unique platform combines mobile technology, digital banking, and artificial intelligence to link customers with a licensed bank or non-bank financial company (NBFC). To obtain loans from the NBFC/bank network, customers can use ZestMoney. 

While fintech partners with banks and finance companies are subject to regulation, those that aren’t registered or don’t partner with lenders aren’t. Thus, ZestMoney is regulated by RBI because it is a Partner of NBFCs irrespective of it being a lending app. 

  • Who are the leading partners of ZestMoney?

Tata Capital, Aditya Birla Capital, CSC Bank, DSB Bank, Piramal Capital, and Housing Capital, IIFL, Hinduja Leyland Finance, HeroFinCorp.,  and Muthoot Finance, etc are the leading partners of ZestMoney. 

  • Eligibility Criteria for the registration under ZestMoney

The customer must be at least 18 years old and not older than 65 years of age to use ZestMoney. You must be a legal Indian resident with a valid bank account, PAN card, and Aadhaar card. It isn’t necessary to have a credit card.

  1. Cult.Fit

Cult. fit, a healthcare technology startup based in Bangalore, India, was founded in 2016 and has its headquarters there. To make fitness more enjoyable and accessible, the company offers a mix of online and offline learning resources on fitness, nutrition, and mental health wellbeing. Yoga, for example, is included in this category. When life gets busier, having everything you need under one roof makes life easier.

  • Revenue Source of Cult.Fit

Cult. Fit generated revenue of US $110 million in its second Series D fundraising round, headed by Temasek Holdings of Singapore, which contributed $71.8 million to the total. Cult. It issued Temasek 2,06,10,687 cumulative convertible preference shares (CCPS) for INR 539 crore, according to regulatory documents from March 2020. (MacRitchie Investments Pvt. Ltd)

Accel Partners put in $14.2 million, with Chiratae Ventures and Unilever Swiss Holdings putting in $1.8 million and $2.8 million, respectively.

  • How to use it?
  1. By using the app
  • Login to the cult. fit app.
  • Select Cult from the Home menu.
  • Click here to sign up for two free classes.
  • Choose a centre 
  • Choose a date.
  • Choose a format and a time window that works best for you.
  1. From the website
  • Visit Cult.
  • Click here to get a free second class!
  • Choose a centre
  • Choose a date
  • Choose the preferred format and a time slot that works best for you.
  • Is Cult.Fit value for money?

The cult makes working out enjoyable and simple. They have top-notch trainers and a wide variety of group exercise classes, from yoga to boxing. The workouts may be done both in a cult centre and at home with the help of DIY fitness DVDs. Cult. fit utilizes cutting-edge technologies to provide you with a first-rate experience. Using the cult. fit app or website, you can book courses and workouts with a few taps of your finger.

  1. Cropln

Agritech start-up CropIn was created in Bangalore, India in 2010 and has its headquarters there. The company has received recognition for its work in digitizing farms and constructing digital infrastructure for farmers. They use remote sensors, AI, and analytics to improve farming efficiency. As a result, global sustainability is currently facing a major challenge.

The main motto of this startup is  :

  1. The efficiency of Farm products- Using a smartphone app to record activities and milestones simplifies data collection. Improving the visibility of your field employees and ensuring they operate at peak efficiency while also reducing expenses
  2. Productivity of Farm products- Real-time actionable analytics enable farm management organizations to plan and respond to business choices. Increased productivity for enterprises is a result of predictable produce quantity and quality paired with lower operating costs.
  3. Sustainability in agricultural products- Meet today’s agri-needs while reinforcing future resources by promoting a healthy environment, economic profitability, and social and economic equality for all. Agriculture in the agro-based ecosystem is empowered by giving companies access to actionable insights and empowering farmers through advising and alerts.
  • Who are the partners and investors in Cropln?

Buhler, FCCI, UK aid, id (Invested Developments) are the foremost partners of the Cropln. On the other hand, Beenext, Chiratae Ventures, Seeders, CDC Investment works, ABC world, Ankur capital, id (Invested Developments), Bill and Melinda Gates Foundation Strategic Investment Funds are the major investors in Cropln. 

  • Source of Revenue Generation

CropIn has received a fair amount of outside funding, with a total of $32.6 million coming from a variety of sources. It’s interesting to note that the Bill and Melinda Gates Foundation is a backer of their endeavours. CropIn’s services will likely become increasingly popular as they work to bring farming into the 21st century.

  1. MYBYK

MYBYK is an India-based software startup located in Ahmedabad, Gujarat, and its headquarters there. As of 2014, the company has been operating an app that allows users to rent and share their bicycles with others. First, of its type in India, the company is currently enjoying its newfound fortune. Once you have the app, all you have to do is go to an MYBYK hub to pick up your new bike. This service is only operated in Ahmedabad. 

  • How does it work?

 To use the service, the user must first download the app and create an account. When a rider exits a BRTS station, they can use the app to unlock their bike from the station. Upon return, the user can return to the same BRTS (Bus Rapid Transport System) station to complete their journey. Depending on the plan selected, the rental fees are automatically debited from the wallet.

They charge Rs. 19 for the first hour and Rs. 1 for each additional hour. As a result, a round-trip (BRTS–office–BRTS) only costs Rs 30. “It’ll only cost you Rs 15 one way.

  • Who were the investors in this Start-up?

During the company’s seed investment round, two investors have promised a combined $1 million to the company’s efforts. One of these investors was Avon Cycles, a major Indian bike maker.

  1. BharatPe

Following a $370 million Series E funding round led by Tiger Global and valued at $2.85 billion, BharatPe became India’s seventh unicorn fintech business in 2018. New investors include Dragoneer Investment Group and Steadfast Capital while existing investors such as Coatue Management, Insight Partners, Sequoia Growth, and others have increased their stakes in Bharat.

BharatPe released India’s first UPI interoperable QR code for merchants in 2018 and has now moved into other financial services. BharatPe has also secured a small finance bank license from the RBI by taking over PMC Bank alongside financial services provider and NBFC Centrum. A secondary sale of shares held by employees with fully vested ESOPs was used to raise money.

  1. Stashfin

Stashfin is a fintech start-up situated in New Delhi, India, that was established in 2016. Since then, the organization has made a name for itself in the finance industry by providing digital financing. This company’s business concept is based on making money rapidly and easily available to their customers. You don’t have to worry about day-to-day transactions if you get your line of credit changed to a card.

  • Is Stashfin safe for the users?

The RBI regulates StashFin’s activities and workings. As a result, StashFin’s loans are risk-free for borrowers. If you’re applying to any of the nation’s non-bank financial institutions (NBFIs), you should do your research first before making a decision based solely on the interest rate.

  • What are the services and products offered by Stashfin?
  1. Individual Personal Loans for all your needs – StashFin concentrates on giving individual personal loans to unbanked people and first-time credit borrowers; the segment of borrowers that is typically disregarded by banks and other NBFCs. A loan from StashFin can be taken out by either paid employees or self-employed business owners.
  2. Employee Expense Management Program – StashFin has developed an online management system that allows firms to verify, approve and repay all workers’ expenses, such as travel, petty cash, Flexi perks, and so on.
  3. The StashFin Credit Line- It is a line of credit available to individuals, corporations, and nonprofits. Borrowers can take out a fixed-term loan for a specified amount of money whenever they need it, pay it back in manageable instalments, and keep borrowing indefinitely without needing to apply for a new loan.
  4. StashFin Credit Line Card – The StashFin credit line also incorporates a StashFin Credit Line Card (powered by VISA). It may be used as a debit card to make payments at internet portals, merchant storefronts, and POS terminals across India. It can also be used to get cash from an ATM (as long as it’s within the credit limit).
  • How to get a loan from Stashfin?

It comprises three simple steps to get a loan. These steps are-

  1. Step 1: Filling the application forms and providing your online banking information to have your application completed quickly.
  2. Step 2: Verify your identity by updating your KYC documents using the website or mobile app.
  3. Step 3: Loan Granted and you’ll have access to the money within four hours.


The tech start-ups discussed above give us a picture of how technology has not only helped in bringing different services at our doorsteps but has also made the dreams of several entrepreneurs come true. The revenue models and working mechanism show that the companies are booming. And as technology and artificial intelligence will rule the future, so will these tech start ups with proper planning and strategies in place.


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