How SahiGST Grew and Then Got Acquired by Vayana Network

“All Lasting Business is Built on Great Partnership.”

When it comes to strategic acquisitions, Indian Fintech industry is perhaps one of the most vibrant and active. Ever since demonetization, we have rapidly shifted gears towards comprehensively digitized and tech-enabled finance. The next overhaul came in July 2017, when GST was launched across the country – once again this time, our Fintech innovators stole the show. Earlier this year, SahiGST – a game-changing tech startup that revolutionized GST filing and compliance – was acquired by Pune based Vayana Network. This is the story of their inspirational journey, brought to you by Indiabizforsale.com in conversation with Annkur Agarwal – co-founder of SahiGST & Pricebaba.

Inception: How It All Started

Back in 2002, when Annkur Agarwal started out as an online retailer, he got the taste of the exciting world of entrepreneurship for the first time, and since then there has been no looking back. The startup wave in India picked up around 2010, and 2 years later the technology bug bit Annkur as well. With a founding team of 4 core members, Pricebaba was born – an intelligence product research engine that helps consumers find the right product at the right price from the right seller.

Four years went by, with Pricebaba going strong for the most of it. Meanwhile, in 2016, the Government announced GST rollout plans for 2018, inviting technopreneurs to build the Google of GST with licensed APIs. It is around this time that Dinesh Tejwani – one of the investors in Pricebaba – reached out to the cofounders with the idea of SahiGST – a cloud based comprehensive solution for businesses for simplified GST filing and hassle-free compliance management. The market opportunity seemed lucrative, and building such a challenging product was any coder’s dream. Thus, with a lean team of 6 – i.e. 5 co founders (Annkur and 3 others from Pricebaba and investor Dinesh Tejwani) along with a domain consultant in GST, SahiGST kickstarted in December 2016. After the first few months of product conceptualization, the team strength grew to 15, focusing primarily on product development and testing.

Product Launch and Challenges

For Annkur and team, this was not a smooth ride – and nor did they expect it to be. Like any other major economic overhaul, GST brought with it intense legal and political volatility that translated into chaotic product development. To start with, the various provisions, categories, rates, and procedures underwent massive changes in the months leading up to the rollout – which were also incidentally the peak months for product development. The cofounders at SahiGST had already been forewarned of such a possibility by their domain expert, but even so it was a roller-coaster ride to keep up with the ever changing provisions. After months of burning midnight oil, when they finally started eying April-March for a grand launch of SahiGST, the rollout was again pushed back to July 2018, and more changes were ushered in – though mostly incremental this time.

Annkur shares with us how his team’s decision to bootstrap SahiGST instead of seeking external investment proved to be critical to survival in hindsight. As he writes in his blog, “Given the volatility around GST & its implementation, we knew that… deploying any funds (specially borrowed) in an aggressive manner might be a gamble… We could build a great product with two technical co-founders & three founders focussed on marketing, sales and support. So…[we] ran a lean ship instead of expanding prematurely. In hindsight, that went just perfect, had we invested too heavily, we would have burnt a lot of money in vain…

Indeed, this master plan worked perfectly. Undeterred by the long gestation period, when GST was finally launched in July 2017, SahiGST became the first player using Govt. API to go live and turned cash positive within 2 months of launch!

Partnership with Vayana Network

The acquisition of SahiGST by Vayana Network goes way back to the partnership between the two entities during its early days.

To begin with, let us first understand how the GST implementation works in simple terms. The first key player is the GSTN – the Goods and Services Tax Network (GSTN) is a non-profit, public private partnership company. Its primary purpose is to provide IT infrastructure and services to central and state governments, taxpayers and other stakeholders, thereby facilitating the implementation of the Goods and Services Tax (GST). The next key components are GSP and ASP. In a nutshell, taxpayers interact with the GST filing system through secure GST System APIs that are developed and serviced by third parties called GST Suvidha Provider (GSP) and Application Service Providers (ASP). ASPs take taxpayers’ raw data on sales and purchases to arrive at the net GST returns, which are then filed via the GSP. ASPs, therefore, act as the link between the taxpayers and the GSPs.

Vayana is a pureplay GSP which enabled SahiGST (an ASP), and thus a partnership blossomed. What started out as a sheer tech-based symbiosis, soon transformed into a partnership of mutual understanding and shared vision. As the working relationship continued to grow in strength and purpose, a new pattern emerged in the market opportunity for SahiGST.

Annkur and team had started out with the notion that they would be servicing a fragmented market mostly consisting of SMEs and small CA firms. However, within a short span of time, larger corporate clients looking for enterprise and conglomerate level solutions flocked to the product. They realized that while this was a pleasant and welcome surprise, to service and compete in this larger and more competitive market space required much deeper pockets, bigger and stronger team and more energy to be directed away from Pricebaba into SahiGST. The team began to wonder whether seeking strategic sale to the right buyer was the best way to go. Opportunity arrived at their door when their robust relationship with Vayana Network paved the way for an acquisition deal to emerge on the table.

Acquisition: How It Happened

Annkur had already anticipated the possibility of a deal when the CTO and CEO of Vayana Network reached out to him, stating his intent to pursue an acquisition – interestingly, the two of them had already met each other 9 years earlier at an event in Pune. Annkur chuckles, “It is amazing how life comes circling back to you – one should never underestimate the value of network and relationships.

Things moved quickly from there in the first few months, since Vayana was already familiar with the business and technology details of SahiGST. Even so, Vayana conducted a thorough and meticulous due diligence with the help of seasoned professionals. On the part of SahiGST, Dinesh Tejwani spearheaded the deal, with the former’s extensive experience in deal-making coming to much aid. After a reasonable amount of negotiation, the valuation figure was finally pegged close to the first figure expected by SahiGSt team in the beginning of the deal. He recalls with some frustration the speed breaker that they reached during deal structuring, when lawyers were doing their thing – with elaborate grinding on each and every aspect of business, technology, IP, employee, customer, transition and so on. However, he shares his appreciation for decision makers at Vayana who expedited the deal and respected the timelines that he had quoted to them. Since the licenses of SahiGST users was due for renewal in April, the deal closed at the right time for a transition to Vayana being announced to customers & partners.

The transition too, took place in a highly cooperative spirit. Annkur and his team committed to support the transition process till July, 2018, although it was wrapped up much earlier. Interestingly, in a different turn of events, one of the co-founders exited Pricebaba team and joined Vayana to lead and manage the acquired SahiGST platform hands-on. With SahiGST off the table, Annkur and others now hope to focus full-time on Pricebaba and take it to new heights.

Key Takeaways

  1. Opportunities don’t last forever – be quick in identifying a market opportunity before it’s gone!
  2. Stay lean and focused – it will help you survive during chaotic times
  3. Nurture relationships with patience – the right partnerships can bring you extraordinary rewards
  4. Learn to let go – transition the business into able hands when it’s time.

Liked this post? Don’t forget to share it in your network. Stay tuned to our blog to read more such inspiring stories! Find the interesting business opportunity or get valuation of your business.

IndiaBizforSale Success Story: Value Insource Merges With Buzzworks

Chennai-based staffing giant Value Insource India merges with Buzzworks Business Services, a leader in HRMS & Recruitment Solutions in India, through Indiabizforsale.com

“If you want to go fast, go alone. If you want to go far, go together.”

Mergers and acquisitions have come of age in India only recently, especially among small businesses and mid-cap markets. Amidst the recent developments in SME mergers, one story is particularly close to our heart – our technology platform Indiabizforsale.com, the most preferred network to buy, sell, fund and grow businesses in India, has been instrumental in bringing together Value Insource India and Buzzworks Business Services in a highly synergistic merger transaction. Here, we share with you their success story and the inspirational journey that culminated into it.

Buzzworks – The Journey

Founded in 2001, Buzzworks Business Services operates as two distinct entities in Services and Software. Their solutions take up customers payroll and compliance loads under a single window, and under the leadership of serial entrepreneur, speaker, startup mentor and investor V C Karthic, Buzzworks today serves over 100 clients and manages 100 million calls and 10,000+ staff across 500+ workstations annually. They have booked an annual turnover of nearly INR 100 Cr in the recent years.

Indiabizforsale.com has been working closely with V C Karthic for a while now. Speaking about his experience with Indiabizforsale.com, Karthic is quoted to have said, “…we approached Bhavin and the team at IndiaBizForSale.com. They suggested some readily available opportunities on their platform in our sector, but were not of perfect match to our requirements. We worked out possible companies in our target list and the team at IndiaBizForSale.com worked on the marketing campaign for our interest to generate more leads. Within the first week of the engagement, the team at IndiaBizforSale moved efficiently and professionally…” Further, commenting on the recently closed merger, Karthic says, “Relationships like this allow us to combine the agility of a small company with the nationwide reach of a conglomerate. We are sure that this is just a precursor of larger impact happenings, both from this union as well as some exciting partnerships that we have identified in the near future.”

Exploring Synergies with Value Insource India

In 2011, Buzzworks received PE funding from UAE based Innovations Group. At present, Innovations Group has 40% stake in the company. Soon, Buzzworks grabbed the eyeballs of the strategic team at Value Insource India, which has been operational in human resource outsourcing since 1999 with over 3000 resources and clients across 15+ industries. Pepsi, Acer, WIPRO, Pantaloons, Talwalkars Better Value Business, HDFC Bank, and HSBC Shared Services are some of their prominent clients. What started out as a keen interest and curiosity, soon revealed the underlying potential of matchmaking between the two entities.

Meticulous deal preparation, intensive due diligence and several hard negotiations later, a deal finally emerged on the plate. and  Commenting on the merger, Balram J Menon , Managing Director at Value Insource India Pvt. Ltd. said, “We are excited about the future possibilities of this relationship as it combines our niche strength with the delivery capabilities and processes of Buzzworks. We are confident of creating a multiplier effect in the market. This merger allows us to expand pan India and add significant value to customers as well as our bottom lines.”

Concluding Note

We at Indiabizforsale.com are proud to have facilitated and enabled this exciting transaction and would like to congratulate Value Insource India and Buzzworks for combining their complementary competences. It will be fascinating to see their joint growth path evolve and reach new heights. We look forward to bringing more such inspirational success stories to you. To know more about what we do and how we can help you, please visit www.indiabizforsale.com

Top 3 Things About SME Joint Ventures You Can’t Afford to Miss

In Conversation with Nadeem Jafri – Hearty Mart

“Competition Makes Us Faster, Collaboration Makes Us Better”

Joint Venture – What It Is

A Joint Venture (JV) is the formation of a entity when two or more businesses agree to share and distribute ownership, risks and rewards and operationally come together with a shared governance structure.

Why Joint Ventures

In India, businesses, especially SMEs, have begun to appreciate strategic JVs as an option for business growth only recently. JVs can be a lucrative option for business of all sizes for various reasons:

  • Risk distribution and management
  • Sourcing financial and non-financial resources for big projects
  • Business Expansion
  • New Product Development
  • Access to Technology & Intellectual Property
  • Leverage Distribution Channels
  • New Market Penetration, especially international economies
  • Enhancing Operational Capacity

Over the last 5 years, we at Indiabizforsale.com have been closely working with thousands of buyers, investors, and businesses in the M&A, JV and fund-raise domain, and in this article, we share with you the inspirational journey of Nadeem Jafri from Hearty Mart who has successfully formed 10+ JVs over the last decade as a part of his inorganic growth strategy. From his insights, we have gleaned the top 3 things you must know about JVs to explore this as a strategic decision for your business.

  • JVs Come in Different Shapes & Sizes

Contrary to popular belief, JVs are not necessarily all of the same kind. A JV can be a 50:50 venture or the partnership can be unequally distributed as well. Sometimes, a JV leads to the formation of a new venture, while sometimes the parties may agree to co-operate and share information, channels, distribution, technology, capital and other resources, without actually forming a new entity. The new entity, if formed, may be formed to attain specific objectives as a temporary engagement, or it may be a long-term partnership.

A branding and communication professional, Nadeem plunged into entrepreneurship in 2004 when he set up retail supermarket stores. When these received lukewarm response and hit a stumbling block in scaling up, he refused to back down. He diversified into supplying groceries and consumables to hotels & restaurants. When the possibility of backward integration through Joint Venture tie-ups with farmer entrepreneurs presented itself, Nadeem trusted his instincts and this way the first JV was formed in 2008.

Since then, there has been no looking back. With a 30-70 partnership between Hearty Mart Enterprises (managed by Nadeem’s partner Wazir Ali, under’s Nadeem’s leadership and supervision) and the farmer entrepreneurs, he provides access to market while his partners bring assured supply with clear cost advantage and distribution networks. Over the years, Nadeem has perfected the art of creating sustainable win-win partnerships across categories such as tea, vegetables, dairy and so on across Gujarat, serving 1000+ hotels & restaurants. Recently, he also entered into his first JV in Mumbai in a 51%-49% structure that is all set to cater to the regional market across all consumable categories for hotels and restaurants.

Nadeem says, “What kind of Joint Venture is suitable for you depends on what benefit you want to extract from it, how much risk and reward you want to share, and what kind of partner you have onboarded.”

  • Your Readiness for JV is the Key

Many businesses, especially SMEs, make the mistake of moving too fast without assessing their own readiness. Entering into a JV is a serious affair, and entails significant change in the business. It is also a very a high-commitment, high-involvement transaction. Due diligence by your partner before the deal is going to be meticulous and exhaustive. Lastly, there will be a fair share of ups and downs, and your business should be adequately cushioned against the same.

Speaking about preparing for JV, Nadeem shares, “Knowing your strengths is the key to a successful joint venture. That way you know exactly what kind of win-win partnerships to create. Remember, that you must have in place your systems, policies, and overall execution strategy before you even approach a potential partner. These must be communicated to the partners clearly right in the beginning. Similarly, make sure that the risks-rewards and rights-obligations are duly discussed and agreed upon. Conflicts and challenges are inevitable – but your readiness can save you a lot of resources and heartburn in the long-run.

It is necessary that businesses spend at least 3-6 months preparing for a JV before looking for partners. Take this time to arrive at a realistic valuation for your business, sort your financials, streamline your team, prepare for due diligence, restructure your client portfolio, establish market networks and consolidate your business into a viable opportunity for JV partnership.

  • The Right Partner Can Make or Break a JV

The key to a successful JV is complementary competence. Remember, it is not merely about the business indicators like performance of products and services, technology integration, financial health, market share & position, and so on. You need to carefully consider the softer aspects too like organization culture, vision and mission, reputation, business objectives, attitude towards collaboration, etc. Here are a few parameters to consider before signing up a JV partner.

  1. Is there a possibility for win-win? i.e. do you complement each other’s businesses in a major way?
  2. Do you have a set of common business objectives? Is there a overlap or complementary relationship between their vision and yours?
  3. Are you both financially secure?
  4. Is there stability in their top management?
  5. Are your management approaches compatible enough to work with each other?
  6. Is there any conflict of interest in your policies, governance and business practices?

So, what does Nadeem see in his partners? “Compatibility is the key,” he says. “I have been familiar with the farmer-restaurant community in Gujarat right from the outset. Familiarity and trust creates partnerships that stand the test of time. Apart from that, their entrepreneurial skills, vision, financial prudence and overall management all play a role. Since we have a single CEO guiding and mentoring all our JV partners, standardization and cross learning has been a boon. Our partners trust us for the value we add to them and the transparency of our transactions. We are in this together.

It is also of paramount importance to have professionals on-board to assess the potential of a JV deal. You need to put in black and white all the rights and obligations of both parties, factoring in the possible contingencies that may occur in course of execution of the agreement. Last but not the least, remember that like any other collaboration, JV is not only a transaction but also a relationship – you will have to work towards it with diligence and honesty.

To know more about how we can help you with JVs, M&As and other business opportunities, please visit www.indiabizforsale.com.

Pursuing Ownership in a Small Business Towards the End of the Financial Year

If you are looking to dive into entrepreneurship and run your own business, you have two choices before you – one, to start the business from scratch – which is the more traditional approach, and two, to buy an existing business – which is the new age mantra for starting a business quickly and easily.

Did you know? Buying an existing business can lead to a better visibility of immediate cash flow, proven financial history which makes it easier to secure loan and investment, established network of customers and suppliers, well-defined market for products and/or services, and an experienced team to rely on.

As a prospective buyer, you may believe that all months of the year are equally important when buying a business, but the truth is that some months of the year are more favorable than others. The last couple of months in a financial year are often believed to be the most favorable months for buying a business.

Let us tell you why?

  1. Visibility of Last Year’s Performance – The potential buyer gets a very good idea about annual sales, operating profit and net profit of the small business being sold. More than three quarters of performance available makes it easy to extrapolate annual financial performance. This also makes it easier to perform due diligence of assets, liabilities and other financial accounts.
  2. Cashflow Overview – Potential buyer has reasonably a good idea about the surplus cash flow that his existing business or profession is likely to generate during the year. Payments related to buying a business can synchronize the timings of cash flow generation and utilization.
  3. Tax Benefits – There are possible tax saving opportunities if a loss-making business is acquired and merged with a profitable business. It becomes easy to quantify possible reduction in tax liability if the loss-making business is acquired towards the end of the financial year.
  4. Motivation of Business Sellers – Business sellers are likely to be more motivated to make a transaction around this time of the year and make a fresh start in the new financial year.

As we draw the curtains on Financial Year 2017-18, it is an excellent opportunity to close a business transaction (Mergers & Acquisitions, Business Exit, Raise funds, Investment Opportunities) that you have been waiting for or to start preparing for a great deal in the next year. Remember, it’s never too late or too early to seize a business opportunity – make the best of your time and resources!

Credit: This article is written by Prof. Mayank Patel, he is the valuation and financial planning expert at team indiabizforsale.com’s advisory service arm. He is a professor at EDI, Gandhinagar. He is also a qualified investment advisor. 
B. E. (Electrical), M.B.A.(Finance), PGD in Treasury & Foreign Exchange Management, CFA(USA).

Personal Note in 2018 – Message from CEO

Dear Esteemed Member,

It has been 5 years since our incorporation in Jan 2013, though it feels like just yesterday. What started as a dream to help SMEs in India for business exit via online platform has evolved as the most preferred online platform for SMEs to buy, invest and sell businesses. Thank you for being an integral part of our journey and we hope to have your continual trust and support.

2017 has been a truly eventful year for us at Indiabizforsale.com. Whether it is forming partnership with the likes of GCCI & FICCI, hosting three highly successful Business Buyer’s Club events, or amplifying our network to 26,000+, we were spoilt for choices when it came down to picking our top 10 achievements of the year.

But just like you, we too were intrigued – what awaits us in 2018? – precisely the question I hope to answer with this personal note to you.

To put it simply, this year is going to be the year of user experience.

Users have always been the centrepiece of our model, and this year, we are going to do everything it takes to make our user experience the best-in-class. Over the next 6 months, our product development team will be working closely with our new partner in Chennai – with the sole mission of transforming our platform into a radically simple and seamless deal-making experience.

While it’s too early to disclose the finer details, I would like to take this opportunity to share a snapshot of what to expect.

Our platform will become more interactive and engaging than ever. With a brand new simple design, intuitive  layout, and self-explanatory content, it is going to be a cakewalk for anyone with just a laptop or smart phone and internet to begin the exciting journey of dealmaking. Additionally, seamless and hasslefree communication between our users is going to be at the heart of effortless matchmaking with our new, elegant, no-frills messaging system.

Last, but not the least, 2018 is going to be the year of sectoral focus.

With years of deal management experience and an A-grade team to back us up, we are all set to be the game changers for SME dealmaking in Pharma, Healthcare, IT and FMCG – the hottest sectors in this domain. While our platform will continue to cater to deals across all industries and sectors, we want our users to know beyond a shred of doubt, that when it comes to any of these four sectors above, we are the frontrunners with the right sectoral depth and expertise.

I would like to conclude this note by conveying my very best wishes to you and your family for a prosperous 2018. Looking forward to having you with us on this enthralling journey.

The Best of 2017: Milestones Achieved

At Indiabizforsale.com, we always walk the extra mile to make deal-making hassle-free, effective and efficient. Today, our platform is helping thousands of businesses, buyers, investors, consultants, and investment banks to source deals quickly, find the right match and secure superior advisory services for better deal management. As they say, the race to finish-line begins with a small step. Looking back, here are the top 10 milestones that we achieved in 2017 to serve our users better and quicker.

  1. Launched Business Buyer’s Club (BBC): We launched the event series Business Buyer’s Club (BBC), based on the novel concept of direct one-to-one meetings between business owners, business buyers and investors. Held in Mumbai and Ahmedabad recently, it was received with highly enthusiastic response.
  2. 26,000+ Happy Users: We are overwhelmed with the faith that our users have demonstrated in us. With 26,000+ user-base, we are bigger and stronger than ever. Our platform listings too have soared in 2017, which means that you now have more and more opportunities matching your preferences. The following graph shows the distribution of listings on our platform.
  3. Partnerships with FICCI, GCCI & others: Business Buyer’s Club in Ahmedabad emanated from a joint vision of IndiaBizforsale.com, FICCI and GCCI. Mr. Rajiv Vastupal (Chairman, FICCI, Gujarat State Council) and Dr. Shailesh Indramadan Patwari (President, GCCI) were eminent guests at our event. Among other notable organizations, we were also outreach partner for VCCircle events and ah! Ventures events, and a supporting organization for AVCJ.
  4. 57,500+ Connections Made: Whether it is a business in a tier II or tier III city in the country, or a buyer / investor from abroad, our platform makes it possible to discover potential matches with just a few clicks. As of 2017, 57,500+ connections from 169 cities across 25+ industries have happened through our platform. Now wonder, we are India’s most preferred network to buy, sell, fund and grow businesses.
  5. Deal of the Year (~INR 22 Cr): The highlight of the year was one of the largest deals that we cracked in the Education sector, with parties from India & the U.S. A renowned college in the field of engineering changed hands with the support of our platform and our expert deal managers.
  6. Quick Introductions by Our Team Gained Momentum: While our platform is at the core of effortless deal-discovery, we have always gone beyond the platform to help our users find their dream opportunity. One such feature which has recently gained huge momentum is the Quick Introduction. Launched only 1.5 years back, it has quickly become the go-to tool for buyers and investors looking for a guaranteed introduction with a business through our team’s intervention. In the last year, an overwhelming number of Quick Introduction requests have kept our client-support team busy!
  7. Seed Funding Received: We have received tremendous support from a cohort of 6 renowned investors who have exhibited their faith in our vision by helping us with capital and other resources. While we are lucky to have them by our side, we are exhilarated that this in turn will make it possible for us to serve you better in the near and far future.
  8. Media & Recognition: Our breakthroughs in connecting businesses and investors / acquirers have led us to evolve as a thought-leader in this space. We have been covered in several esteemed dailies such as the Financial Express and Entrepreneur.com. Listen to our co-founder Bhavin Bhagat speak to TV5 Money, Hyderabad, and don’t miss reading the story of our fascinating journey in Prachi Garg’s latest book Supercouples
  9. Startup Assistance from CIIE, Gujarat Govt., & EDI: We have received continuous support from organizations like Centre for Innovation Incubation and Entrepreneurship (CIIE) – IIM Ahmedabad, the State Government of Gujarat and Entrepreneurship Development Institute (EDI). Be it through awards, mentions or grants, we are grateful to have been at the forefront of innovation and entrepreneurship in the region.
  10. Expansion in Chennai: Along the way, our strategic tie-up with a leading global fintech enterprise has helped us grow roots in the city of Chennai. Our product development team in Chennai is on a mission to transform our platform into a radically simple and seamless deal-making experience.

With 2018 knocking at our doorstep, we look forward to imparting to you a whole new deal-making experience on our platform. Stay tuned to us as we roll out new features, upgrades and services along the way!

November Watch – Business Updates You Can’t Afford to Miss

IndiaBizForSale.com Organizes Business Buyer’s Club in Mumbai

Top Businesses in Pharma, FMCG, Healthcare and Manufacturing Showcased

When it comes to deal-making, we at Indiabizforsale.com always walk the extra mile. With Business Buyer’s Club, the saga continues higher up. It is a first-of-its-kind exclusive deal making opportunity for business buyers, investors and business owners. The latest event was organized once again in Mumbai as a response to the enormous enthusiasm we received last time. (Read More)

More Freedom to You

Edit your listing details when you want to, as you want to

At IndiaBizForSale.com, we constantly strive to make your experience better and smoother and hence regularly we add more features and upgrades. Do you know? – Our recent upgrade makes it possible for you to edit your listing details as and when you want to. Edited listings need to be approved by our analyst team, to ensure that you get the maximum advantage.

If you are wondering why your changes and modifications require re-approval, it is because we want to ensure that you get the maximum benefit from the platform while any error or discrepancy made by mistake is not passed through as well as to be able to protect all the listings on our platform from any unintended misrepresentations.

Login to explore our more recently added features now.

Stay tuned for more!

SME Highlights

  • CFTRI launches ‘SME Corner’ to facilitate small scale food businesses in India

The Central Food Technological Research Institute (CFTRI), a premier primer food research institute in the country has launched an online platform called ‘SME Corner’ that connects SMEs with CFTRI. The platform aims to help Small and Medium Entrepreneurs (SMEs) to set up food businesses. On the platform, the SMEs will get… (Read More)

  • Trading platform for SMEs, TReDS, set to take off after three years

TReDS, a trading platform for small and medium enterprises, is set to take off after three years, after the government allowed state-run companies to use the platform. It was the pet project of former RBI Governor Raghuram Rajan and could open up a Rs. 20000 crore market for the three firms licensed by the central bank. In just three months of operations… (Read More)

Tips, Tools and Strategies

Why Deals Fall Apart

Whether you are business buyer, investor or a business owner, you must be wondering that what are the conditions that can make or break a deal. We have worked closely with thousands of users over the last few years in buying, selling, growing and fund-raising for businesses, and one of the most questions we get asked is: What can make or break a deal? In this article, we… Read More

What’s New? – Exciting Updates You Can’t Afford to Miss this October

Newsletter Issue 54
October 2017

IndiaBizForSale.com Cordially Invites You to Business Buyer’s Club, Mumbai

What’s in it for you: This is a one-of-its-kind event to discover business opportunities and buyers/investors from Maharashtra and Gujarat engaged in Pharma, Healthcare, FMCG and IT/ITES sectors.

What to expect: Businesses pitch alongside focused interviews, followed by one-to-one meetings with business owners – only high-potential businesses hand-picked by our senior analysts will make it to the showcase.

Types of Business Transaction: Joint Venture | Business Exit | Acquisition | Fund Raise

Why Business Buyer’s Club: The last event was organised in association with GCCI and FICCI in September 2017 and saw a showcase of 9 business opportunities to 45+ credible buyers/investors with 4 business currently in the final stages of closing the deal.

Further Details: visit Business Buyer’s Club / write to [email protected]

Discovering Business Opportunities is Now Easier

You now have the option to ‘search’ for business buy / sale / investment opportunities matching your preferences, instead of having to browse through thousands of listings. Simply enter your preferences in the search bar on our home page (www.indiabizforsale.com) and matching listings will be automatically listed on the screen!

We have been busy! At IndiaBizForSale.com, we are constantly trying to make things easier for you. One such recent feature that has been keeping us busy for the last few months is the all-new ‘search’ bar.

You now have the option to ‘search’ for business buy / sale / investment opportunities matching your preferences on our platform, instead of having to browse through thousands of listings. Enter your preferences in the search bar on our home page and matching listings will be automatically listed on the screen.

This is how it works:

  1. Visit our home page – www.indiabizforsale.com
  2. You can see the search bar right there on the screen (see image below)
  3. Enter as many parameters as applicable to you. E.g. if you are looking for business opportunities in Ahmedabad, enter the location as ‘Ahmedabad’. If you are looking for Pharma businesses in Ahmedabad, enter the industry as ‘Pharmaceutical’. Not getting the location or industry of your choice? Make sure you have entered the correct spelling!
  4. If you are looking to buy or invest in a business, click on ‘Buy/Invest’. If you are a business owner looking to sell your business, raise investment, or growth partnerships, click on ‘Sell/Grow’.
  5. A list of businesses matching your criteria will be displayed on the screen.
  6. Not getting enough results? Try to relax a few search parameters.

Visit our platform today and try our ‘search’ feature to get the listings matching your preferences with just a click.

SME Highlights

* GST Council decides to provide relief to SME sector

CII Director General has said that the SME sector compliance will greatly improve as limit for composition scheme has been increased to Rs 1 crore.

India Inc today welcomed the outcome of the GST Council meet and said the decisions will improve compliance and provide much needed relief to the taxpayers. CII Director General Chandrajit Banerjee said that…  Read More

* Amazon India launches Amazon Business to enable easier procurement for SMEs 

Amazon India has launched Amazon Business, a B2B marketplace on Amazon.in, to enable small and medium businesses to procure products through the platform. The platform, which will be available on the Amazon website, is registered under the main entity Amazon Seller Services.

The launch comes two years after…Read More

How NOT to Sell Your Business!

If you are planning to sell your business, and especially if this is the first time you are thinking of doing so, you must be wondering about what pitfalls to avoid from early on. While there are no hard-and-fast rules…we have realized that there are a few common mistakes that sellers often make which can be easily avoided.

In this article, we will share these 4 common mistakes of business sellers with you, and our expert advice on how to handle these scenarios instead ….. Read more

Events, Updates and Business Highlights

Newsletter Issue 53
September 2017

IndiaBizForSale.com Organizes Business Buyer’s Club Ahmedabad

In Association with FICCI and GCCI  

Our recent stint has made ‘SME deal-making’ the hottest thing in Gujarat!

Business Buyer’s Club, a first-of-its-kind exclusive deal making opportunity for business buyers, investors and business owners, was organized in Ahmedabad last week by IndiaBizForSale.com in association with FICCI and GCCI. The businesses showcased in the event were hand-picked by our senior analysts, and only genuine, serious buyers and investors were extended invitation for the day.

Business Buyer’s Club is a novel concept that Indiabizforsale.com first launched in Mumbai in June, 2017 and has received tremendous response since. In our constant effort to bring about quick deal sourcing, effective matchmaking and end-to-end deal management, we have taken cognizance of the fact that while technology is an enabler, it is not enough for quick and effective deal-discovery, especially in the Indian landscape. Business Buyer’s Club brings together genuine buyers and investors looking to close a transaction within the next 6 months, along with credible, quality businesses that are deal-ready. Read More…

We Crossed 2500 Business Listings

A Sneak-Peek Into Our Journey So Far

IndiaBizForSale.com started in 2013 with the core mission of helping small and medium business owners sell their businesses instead of closing shop. Back then, we were largely business owner(seller)-centric – i.e. only sell-side listings existed on our platform and made a humble beginning with just 50 businesses looking for exit listed on the platform.

The first revelation happened when we discovered that our platform could also serve buyers and investors in a large way. While we always had buyer registrations, we soon noticed that the number of registered buyers on our platform was 2-3 times more than that of the sellers, and yet we did not have any buyer listings yet! We were constantly receiving inquiries from them and soon we realized that we would need to focus on buy-side listings as well and showcase their requirements. Read More…

Get Matched: When a New Relevant Business/Buyer/Investor Becomes Live on the platform

Now you are one step closer to finding your right business opportunity: Generally as a registered user, email alerts are available when a (new) matching business or buyer listing goes live. Some users requested flexibility to change their preferences and our tech team has obliged.

Change/Set your alert preferences now and only get notified for relevant matches.

Steps: Login to your account > Go to your dashboard > Click on My Alerts > Set your preferences such as location, industry, asking price, etc.

SME Highlights

  •    Google launches ‘Google My Business’ to help Indian SMEs manage business online

Google on Thursday launched a new dashboard feature within Search for ‘Google My Business’ customers. The dashboard allows Small and Medium Businesses (SMBs) to easily manage their businesses online. For this, owners are required to.. Read More

  •    SME IPO: A New Wave of Growth for SMEs in India

Small and medium enterprises have clambered onto the IPO bandwagon with alacrity: fund-raising activity through junior bourses has gone up by about seven times in the past six years. For small entrepreneurs, raising funds through the SME IPO platform yields dual benefits of increased capital availability on the one hand…Read More

Tips, Tools and Strategies

Do’s and Don’ts While Buying a Business

Buying a business can be a complicated process, especially if you are a first-time buyer. While there are no hard-and-fast rules about buying a business, learning from the best practices of other buyers is often useful.

Over the last few years, we have worked closely with thousands of buyers and have helped them buy the business of their dreams. In this article, we would like to share with you a few important tips, tools and strategy in the form of do’s and don’ts that can help you make better decisions and make your buying experience smoother.

Do’s

  •       Do take out time to be well-informed about the business you are going to buy. Be informed about its history, incorporation status, legal structure, revenues, market, technology, reputation, intellectual property, legal aspects, owner’s details, team structure, financial health – or in-short, everything about the business.
  •       Do take out time to formulate a sustainable business-plan. Proper research about the market and the business can help you in preparing the same. Make a well-structured short-term as well as a long-term plan for that business.
  •       Do ensure that you choose the proper structure for incorporation of the business. You can make a well-informed decision and buy an LLC (Limited Liability Company), a Sole Proprietorship, a Partnership, etc.
  •       Do hire a good attorney. Disclose all your assets, liabilities, business plan, and past experiences to him.
  •       Do understand that businesses don’t bloom overnight. It will take rigorous effort and hard work in making the business live up to your expectations.
  •       Do account for the fact that buying a business will be financially challenging. Making ends meet while funding and managing the business will be hard if you are already on the verge of being broke.
  •       Do keep your eyes on the target customers so that the business decisions and strategy can be formulated accordingly.
  •       Do pay your taxes. Never be on the rap-sheet of either the police or the tax-department as it might hinder the growth of a business.
  •       Do have a proper book-keeping system in place. A minor glitch in the numbers might lead to devastating results in the overall functioning of the venture.

Don’ts

  •       Don’t make baseless assumptions when it comes down to costings and numbers. Make sure that proper research is done for the same. Check out the past data and history of similar businesses and work up the numbers accordingly.
  •       Don’t think that the process of attaining the proper finances for buying and operating the business is going to be quick. Devise a proper plan of the process, keeping in mind that the it is going to be a time-consuming task.
  •       Don’t underestimate the competition. It won’t take long for your competitor to become the leader in no time if it hits the target market well.
  •       Don’t keep any secrets from your attorney. Disclose all the requisite information to him, whether it is in your favour or against you – a competent lawyer can turn the tables around.
  •       Don’t go against the advice of your deal consultant. A good and credible consultant will always be thinking for your best. If you do have a contradiction of views, be upfront and clarify it with him.
  •       Don’t ask others to breach confidentiality agreements or non-competition agreements with their employees. It will weigh down your business and would pose a threat of it closing up.

Owning a business is satisfactory and a deal worth cherishing, only if the task of buying it is done properly. A small mistake can make you repay for a prolonged duration. So, always be safe in making the decisions for the venture you are going to own.

We hope this article helps you in understanding the process of buying a business. Over the last few years, we have helped thousands of businesses and individuals in buying businesses of their choice.

Each Business is a Disruptive Force in Itself

Newsletter Issue 52
August 2017

The key to any transformation is disruption. You can either be a follower by imitating the new, or you can be the new. Businesses that disrupt markets, alter economics with technology and innovation, and overcome barriers creatively, lead the future. Whether small or large, each business is a disruptive force in itself – and a powerhouse of endless potential.

How Demonetisation Disrupted the Payments Sector in India

India’s monetary policy took an unprecedented turn on November 8, 2016, when Prime Minister Narendra Modi announced pan-India demonetization. By withdrawing the existing Rs 500 and Rs 1000 notes from the system, nearly 86% of the cash in circulation at that point of time was rendered unusable.

What started as a means to fight corruption, black money and tax evasion, also became the biggest disruption ever, for the country’s digital payments sector. This article, will highlight how demonetization turned around the payments industry in India through a policy-driven fintech revolution.

Surge in Plastic Money (Debit Cards, Credit Cards, PoS) – Not surprisingly, the immediate effect of cash crunch in the system was a rise in the use of debit / credit cards. The number of debit card transactions increased to over 1 billion in January 2017 (up from about 817 million in 2016). Of these, while the number of ATM withdrawals and transfers have remained more or less the same at around 700 million, the additional growth has been mostly due to card swipes at Point of Sale (PoS) terminals.

The volume of PoS swipes increased by 300% to 328 million (up from 109 million in January 2016). Banks collectively set up additional 1 million PoS terminals within three months of demonetization announcement, thereby making the total number of PoS terminals in the country reach a record figure of 2.52 million.

Prepaid Payment Instruments (e-Wallets) – While plastic money stole the show in the beginning, soon digital wallets took the centre stage. Digital wallet is a fintech innovation that allows customers to pay, receive and hold electronic money from the convenience of any location as long as they have a laptop / smart phone and internet connectivity. Players like PayTM also have additional features like wallet-to-wallet payment through QR code, and withdrawal of wallet balance to bank.

Prepaid Payment Instruments (PPIs) reported 350% rise in the volume of transactions on an average in January-March quarter of 2017, from that in 2016. In March 2017, the volume of PPI transactions stood at 342 million, up 375% from 72 million a year earlier. For PayTM, the largest digital payments startup in India, the daily transactions increased by 300% to 7.5 million. Mobikwik, another e-wallet startup, grew its transaction volume by four times. Recently, PayTM also received approval from RBI to set up a payment bank.

Payment Apps and Gateways – Pure-play payment gateways are different from digital wallets in terms of these being only transaction facilitators and enablers. CCAvenue, Razorpay and InstaMojo are a few examples of payment platforms, which enable individual and corporate payments by either connecting to e-wallets or to bank accounts directly.

The Bharat Interface for Money (BHIM), an ambitious digital payment application launched by the Prime Minister on December 30, 2016 has already been reported to have 10 million downloads so far. In the four days post its launch, BHIM clocked in 700,000 transactions – a commendable feat. As a convenience payments app, BHIM is connected to more than 30 private and public sector banks in India.

According to a recent NASSCOM report, India’s fintech industry is estimated to reach 2.4 billion USD by 2020, from just 1.2 billion USD in 2016. While demonetization provided the much-needed thrust for the payments sector, for sustained growth in the future we will need improved digital infrastructure, increase in the payment options available, rise in the number of POS terminals, EMI option for bigger purchases, better security of transactions, increased trust and confidence among the consumers, and a means to overcome the rural-urban divide in accessing payments technology.

Better regulations and policy-making coupled with innovation and seamless execution by fintech players will lead the way forward for India’s dream of corruption-free, near-cashless economy.

Event – Business Buyer’s Club – Ahmedabad

After successfully organizing our pilot event in Mumbai, we are organizing the second Business Buyer’s Club event in Ahmedabad. This is an exclusive deal making opportunity for businesses, buyers and investors from Ahmedabad and Vadodara.

We are showcasing 10 businesses shortlisted by our analysts. As a buyer/investor, you’ll have the opportunity to know these businesses closely and interact with its promoters directly. This is an exclusive event created with the sole purpose of helping our clients reach their goals faster.

For registration or any further details, click here.

How to Prepare Your Business for Growth in a Sluggish Economy

Guest Contributor: Gagan Ghai, Crest Capital Advisors

Growing a business in uncertain economic climate presents harder challenges. However, with appropriate mentorship and guidance, entrepreneurs can thrive regardless of economic conditions. Over the past few years, we have helped several businesses rethink & re-structure their core strategy to outrun competition and protect their businesses against bad times.

While there are no hard and fast rules, here are some of our key learnings from working with businesses, which you can apply to achieve your growth objectives for your business.

  1. Diversify Your Customer Base

If your business is too dependent on one or two customers to generate the bulk of sales, it is at significant market risk.

In the case of one of our clients, who happened to be in the business of institutional supply of clothing, we found that even a small degree of diversification in the customer mix resulted in superior financial performance, not to mention higher stability.  Regardless of the size of the business, diversifying client base has its own benefits. Often, the most diversified firms experience faster growth that their non-diversified counterparts.

  1. Focus on Your Best Customers

While it’s important to ensure that you have the right mix of customers, it’s also wise to treat your best customers (Category A) with extra attention. By nurturing relationships with key customers and building their loyalty, you can grow along with them.

A case in point is a client of ours – a creative & design agency. By bringing razor-sharp focus on the most important clientele, we have helped them in solving the purchase behavior issues & overcame the challenges with regard to serving their most important client. The agency acted on our advice and has now become the best fit for its key clients, not just for a particular service but for a range of value additions.

  1. Proactive Approach to Marketing

No product or service sells itself, especially not in a slow economy. And word-of-mouth marketing often isn’t enough to grow a business. You need to define and promote your unique selling points intelligently. Consider creating a well-defined marketing strategy that defines your target customer, uses the right tactic to reach them and uses quantifiable metrics to measure the results. We have been advocating competitor analysis to all our clients to monitor marketing positions regularly and thereby, get optimum results.

  1. Focus on Strategic Goals

While it is easy to get lost in routine details and neglect your strategic plan, the consequences can be severe. It’s essential to keep your mission and vision in mind as you go about making day-to-day operating decisions. Know what your strengths are, what you want to achieve and how you plan to get there. Also, make sure that you keep your strategic plan documented, updated and shared across key team members.

  1. Foster a Positive Attitude in the Team

Everyone within the organization needs to be trained and coached to understand the business’s strategy and proactively promote the business at every opportunity. When you hire, look for people who not only have the right qualifications, but also the right attitude & passion.

  1. Monitor Your Cash Flow

Most entrepreneurs are only focused on managing the bottom line by monitoring sales, gross margin and expenses. But, they often ignore cash-flow management. It’s important to balance short-term and long-term needs with short and long-term sources of funds. Many early stage businesses close down due to sheer mismanagement of funds raised and incomes accrued over time without proper planning.

We would be happy to answer growth challenges faced by entrepreneurs and would be glad to assist in multiplying his / her business together.

Our Guest contributor can be connected via LinkedIn

Team Member Message

Fintech sector is one of the biggest sectors to have emerged since the disruption in the Indian economy because of demonetization. Yet it still has a long way to go before it experiences its highest point. We at indiabizforsale a fintech company, are helping businesses, buyers and investors in India to grow with the use of technology and our expertise in deal making.