Tag: india

Remembering Sir Ratan Tata: A Legacy of Leadership and Compassion

Prasad AjinkyaLeave a comment

The world mourns the loss of Sir Ratan Tata, a titan of industry and a beacon of philanthropy, who passed away at the age of 86 on October 9, 2024. His passing marks the end of an era for the Tata Group and the broader business community, both in India and globally.

A Visionary Leader

Ratan Tata’s journey with the Tata Group began in 1962, when he returned to India from the United States. Over the decades, he transformed the conglomerate into a global powerhouse, overseeing landmark acquisitions such as Corus, Jaguar Land Rover, and Tetley Tea. Under his leadership, the Tata Group’s revenues soared, and its influence expanded across diverse sectors including steel, automotive, IT, and hospitality.

A Heart for Philanthropy

Beyond his business acumen, Ratan Tata was deeply committed to philanthropy. He believed in using business as a force for good, a principle that guided the Tata Group’s operations. The Tata Trusts, which control a significant portion of the group’s shares, have funded numerous initiatives in education, healthcare, and rural development. His efforts have left an indelible mark on society, improving countless lives.

Tributes Pour In

Tributes have poured in from all corners of the globe. Prime Minister Narendra Modi described Tata as “a visionary business leader, a compassionate soul, and an extraordinary human being”. Leaders from various industries and sectors have echoed these sentiments, highlighting his humility, kindness, and unwavering commitment to making the world a better place.

A Personal Reflection

For many, Ratan Tata was more than just a business leader; he was a mentor and a role model. His leadership style was characterized by integrity, empathy, and a relentless pursuit of excellence. He once said,

I don’t believe in taking right decisions. I take decisions and then make them right.

This philosophy not only defined his career but also inspired countless others to strive for greatness.

A Lasting Legacy

As we bid farewell to Sir Ratan Tata, we remember a man whose legacy will continue to inspire future generations. His contributions to business and society are immeasurable, and his spirit of innovation and compassion will live on in the countless lives he touched.

Rest in peace, Sir Ratan Tata. Your legacy will forever be a guiding light.

Generative AI in lending

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AI content creator generated using DALL-E

The Indian lending market is one of the fastest-growing and most diverse in the world, with a huge potential for financial inclusion and social impact. According to a report by Boston Consulting Group, the Indian lending market is expected to grow from $1.2 trillion in 2019 to $3.5 trillion by 2024, driven by the increasing demand for credit from individuals, small businesses, and rural segments.

Problems in the lending industry

However, the Indian lending market also faces several challenges, such as high operational costs, low credit penetration, complex regulatory environment, and high credit risk. Traditional lending models rely on manual processes, limited data sources, and rigid criteria, which result in inefficiencies, delays, and exclusions. Moreover, the COVID-19 pandemic has exacerbated the situation, as lenders face increased defaults, liquidity crunch, and changing customer behavior.

To overcome these challenges and tap into the opportunities, lenders need to adopt innovative and agile solutions that can enhance their efficiency, scalability, and profitability. This is where generative AI, a branch of artificial intelligence that can create novel and realistic content, such as text, images, audio, and video, comes into play.

What can generative AI do?

Generative AI can transform the Indian lending landscape by enabling lenders to:

  • Automate and optimize the lending process: Generative AI can automate and optimize various steps of the lending process, such as customer acquisition, verification, underwriting, disbursal, and recovery. For example, generative AI can create personalized and engaging marketing campaigns, analyze alternative and unconventional data sources, such as social media, e-commerce, and geolocation, to assess creditworthiness and risk, generate customized loan offers and contracts, and create interactive and empathetic chatbots and voice assistants to facilitate communication and collection.
  • Enhance fraud detection and prevention: Generative AI can enhance fraud detection and prevention by identifying and flagging suspicious patterns and anomalies in the data and transactions. For example, generative AI can detect fake or tampered identity proofs and documents, such as Aadhaar cards, PAN cards, and bank statements, by comparing them with the original or authentic versions. Generative AI can also detect fraudulent or malicious behavior, such as identity theft, money laundering, and cyberattacks, by analyzing the behavioral and transactional data of the customers and the lenders.
  • Innovate and diversify the lending products and services: Generative AI can innovate and diversify the lending products and services by creating new and tailored solutions that cater to the specific needs and preferences of the customers. For example, generative AI can create dynamic and flexible loan products that adjust to the changing circumstances and requirements of the customers, such as income fluctuations, emergencies, and life events. Generative AI can also create new and niche lending segments and markets, such as peer-to-peer lending, microfinance, and social impact lending, by leveraging the power of the crowd and the network.

Challenges in using generative AI

Generative AI is a new frontier for the Indian lending industry, as it offers immense possibilities and benefits for both the lenders and the customers. However, generative AI also poses some challenges and risks, such as ethical, legal, and social implications, data quality and security issues, and human-machine interaction and collaboration challenges. Therefore, generative AI needs to be adopted and implemented with caution and responsibility, ensuring that it is aligned with the values and goals of the stakeholders and the society.

I am not even going to talk about the compliance risk and the risk of using a pre-cooked model which may not even be similar to the target audience.

Generative AI is not a magic bullet that can solve all the problems of the Indian lending industry, but it is a powerful and promising tool that can augment and enhance the existing capabilities and solutions. Generative AI can help the Indian lenders to become more efficient, scalable, and profitable, while also serving the customers better and faster.

However, smart and crisp solutions are yet to be seen in the Indian market, and this is an area of work for us at Homeville.

6 months of lockdown

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As I write this after nearing the 6 months mark of lockdown, I cannot help but think at looking back at how things have changed in the last 6 months or so.

  • Work from home is an accepted norm with remote working at an all time rise. The organizations that could slide into this mode of working have also started realizing the benefits of allowing teams to operate from home. Any teething troubles that were there have been ironed out and I am see teams of all functions coming together on Zoom/Hangouts and making it work.
  • Reverse migration has started. A lot of this working class who can work remotely has opted to move back to their native places. Just to give an example, out of my team of 8 – only one has chosen to stay in the city … the rest are safely back at their native places across the country.
  • Internet penetration and mobile services are at an all time high. The demand for Jio has never been higher with this working class scrabbling to ensure that they have steady connections at home. I see this audience’s demand in Tier-2 and Tier-3 cities ensure that brands and the government focus on building out the infrastructure in remote cities.
  • This would lead to some normalization between demand and supply of all goods across higher and lower tier cities. Take Mumbai for example … in the suburbs or in Mumbai proper, it is hardly a case when you see an electricity outage. As you go outwards, you will start seeing specific load shedding hours and schedules. In the Raigad district, there is atleast one day a week when there is no electricity. As the working class goes back to these cities, either the demand for inverters will go up or the respective local governments would be petitioned to increase the quality of lifestyle.
  • Environment conditions across all cities have drastically improved, the Mumbai air feels cleaner, cooler and taking a walk doesn’t seem oppressive.
  • Organizations whose engagement models involved a lot of physical interaction have started discovering alternative methods and workarounds. Dentists have started using full-body kits, delivery boys have established clear package hand-off protocols, restaurants have started opening up with lower floor space utilization.
  • Cost of basic services and commodities have slowly increased. An annualized inflation of 15-16% looks to be on the cards and the common man is going to bear the brunt of this. Any initiative the government is going to take is only further going to exacerbate this.
  • Industries that have been doing well since lockdown –
    • Food Deliveries
    • E-commerce
    • Agri-tech
    • App enabled services
    • Edtech
    • Fintech
  • Communication apps are at an all time high. Zoom has made it to the top 10 websites in India according to Alexa.com
  • OTT platforms are raking it in with a lot of the younger audiences looking at their smartphones for entertainment. Since there haven’t been any theatre releases, all the movies that were scheduled to be released have started being covered on the OTT platforms. A quick glance at the above list by Alexa informed me that Netflix, PrimeVideo and HotStar were all in the top 20.
  • Big tech firms are going all out to change the way things are. Google pretty much gave all schools free access to Google Classroom. Both my children are using this for their new term this year.

As things start settling down from this massive change in life, I see a resilience being shown by businesses as they start figuring out a way to live and thrive in this economically challenging environment. As a technologist, I see a large need to automate a lot of business processes to keep the wheels of the industry turning.

This is what will keep the world going round.

Helping GenZ find their place

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When do backpackers settle?

A few decades back, the only time a fresh out of college fledgling would consider buying their own house was when they contemplated marrying and even then within a joint family system they saw buying property as investment.

Over time, with escalating rents and increased self independence, the robust Gen Z is showing an inclination to own homes by the time they turn 27. The Homebuyer Insight Report shows a majority of prospective home buyers between 18 and 23 who want to buy a house in the next 5 years (this is in the developed countries). About 52% of the above numbers have already started saving for their own property.

But what about the developing nations?

The story in developing nations is completely different. With a majority of individuals going through lengthier schooling periods, and taking more time to find their way through their careers and eventual independence, the average Indian Gen Z has all the aspirations of the Gen Z, but also has all the legacies to manage.

I say aspiration because the typical Gen Z in India first rushes headlong into a job to ensure financial independence. Over time as the bare necessities are funded, then the Gen Z aspires to travel … the generation is also called as backpackers because of the affinity of unstructured experiences which are valued by this generation. For example instead of a Kesari tour (meh!), this person would want to backpack their way on a beaten down path.

So when do Gen Z finally settle?

The research done points to a couple of reasons.

When starting a Family

Starting a family is the largest motivator for settling down and buying a home. Even if that means taking a loan or financial aid for buying the home.

One of the major challenges that Indian Gen Zs face is that the down payment required for real estate is so high that it’s difficult to buy this house early. What that means, that an entire generation starts becoming more career focused so that they can finally afford their homes.

To solve this problem, HomeCapital has launched India’s First Home Down Payment Assistance Program. Wait … what?

Yes, it is a mouthful, but it’s worth it. What this program addresses, is the challenge that most first time home buyers in India face. The down payment.

Started by a team of professionals from varied fields, the program will provide up to half of your down payment requirements. The program lets you to double your down payment capability and widens your reach in terms of home affordability. It increases your home loan eligibility and makes your home buying faster and simpler.

The cool part

The best part is that this program is engineered in such a manner that the user is not charged interest for the unsecured personal loan that the user gets on this form of assistance. That’s as good as a 0% interest for the user!

Yes, you got that right. If you want a home and you are buying a home on any of HomeCapital’s listed properties, then the HomeCapital team will help you with an unsecured personal loan to pay the down payment, the stamp duty and the registration fees. At zero interest.

So, if you haven’t been thinking of buying a home because of the insanely high prices, now think again.

Gold

Prasad AjinkyaLeave a comment
Gold

I am in the middle of reading Shashi Tharoor’s An Era of Darkness: The British Empire in India. If you have been living under a rock like I was, then you may not have heard about his Oxford debate where he smashed his contemporaries on why Britain should do reparations to India.

At this time, I chanced on the movie Gold in Amazon Prime. What perfect timing! A movie about India’s first Olympic gold medal – as a free country. The movie stars Akshay Kumar as a sports manager of the British India National Hockey team, and their ability to keep winning the Olympic gold for British India. History buffs and hockey buffs (preferably both) would be quick to point out that during that time the team was led by the Wizard of Hockey, Dhyan Chand.

For the sake of preserving identities of the negative roles, the names have been changed, and Dhyan Chand is portrayed by Kunal Kapoor as the legendary captain Pritam. If you do not know who is Dhyan Chand, please stop reading and head on to the wiki link. India was well known in the history of hockey largely due to this chap. We owned the international circuit from 1928 (pre-independence) up till as late as 1980. Pretty much the time cricket took over as the national craze and the national sport lost its crowds. Ironically, in 2014 when Dhyan Chand’s name was being considered for Bharat Ratna (the highest civilian award in India), it was never nominated and the award winner was none other than apna Sachin!

But I digress, this is about the movie and not a diatribe about hockey losing out to cricket!

The movie is about getting India’s first Olympic gold, and how the main character in the story (a Bengali team manager played by Akshay Kumar) helps the team get its gold. This under the backdrop of the partition and post-independence struggles that the new country faces make for a riveting story.

Bollywood has oft taken an anti-Pakistan stance in the past, and it’s very easy to take this stance. However, you should see how this movie has spun the entire India-Pakistan tale. It’s heart-rending and one might wonder … a magnificent what-if … our national leaders back then were brave and foolhardy to take such a decision then. What stops from doing something equally foolish now?

History tells us the outcome of this story … India dominated the hockey scene for a long time. However, the story also talks about the role of administration in ensuring that the sport has enough backing. In the chaos of IPL and slogans like fan banna padega … I ask you this … what about our national sport? I wish this movie had done much better on the box office, it deserves to be seen, not only for the acting – but also for the narrative.

The tragedy behind Indian IT Services

Prasad Ajinkya

Understanding Indian IT Companies (TCS, Infosys, Wipro, HCL Tech, TechM)

via Understanding Indian IT Companies (TCS, Infosys, Wipro, HCL Tech, TechM) —

An excellent infographic of the top IT/ITES providers in the country.

The bulk of the revenue comes from abroad, and this seems to be a problem. As technology keeps getting more simpler and easier to adopt, the reason to outsource the contract to another country will keep going down.

Combine this with the recent spate of visa issues, and you have one impending slump in the near future.

Stuttering Start-ups

Prasad AjinkyaLeave a comment

Stayzilla, an Airbnb for homestays in India, is closing down its service. The company was founded six years ago and had raised $34 million from investors, including a $20 million Series B in 2015. Now is the time to pause and “reboot” however, CEO and co-founder Yogendra Vasupal explained in a blog post. The company reached a…

via Stayzilla, India’s Airbnb for homestays, closes its service — TechCrunch

Another one bites the dust, as start-ups and investors start rethinking their approach to creating unicorns. One of the largest ones being discussed (and also a poster child for Indian e-commerce) is Snapdeal, who in a recent email announced a lay-off of more than 1000 employees.

So why do it in the first place?

Well, it was good while it lasted, and at least the team that started it knows that they gave it their best and things did not work out – due to whichever reasons … be it a bad business model or unbalanced promotions, or whatever.

Over the years, investors have also become much more skeptical on which businesses would they put their money in.

Invest smart!

One of the things that peeves me off is that the investor success stories which have 1000% gains and great exits had the investors not just invest money, but also time and efforts in different capacities.

As someone who works with multiple ideas, one of the key components that I myself do not have much is time. Money is a transient thing, sometimes you are floating in it, sometimes you do not have much to spare. However, as time goes by … one of the key assets that people should look at is the time required to nurture that unicorn.

If that time is not there, then its best that you don’t put in the money – thinking that some smart people will grow that money and give you handsome returns. Somewhere in that dynamic, people are forgetting to create sustainable value.

What is Sustainable Value?

Any transaction happens because of both the parties seeing a certain economic value in that transaction. A buyer gets a good or a service for a price that he can afford. A seller gets a reasonable price for goods/services that he/she are providing.

For a time being, the buyer or seller can extract more value from the market. This could work due to information asymmetry (or third degree arbitrage). However, as information is made available to every user and as customer discovery becomes faster and smoother, this arbitrage is being worn down.

So, how does sustainable value come from … simple, it comes from fair play, it comes from co-operation and knowing that co-operation is the winning strategy when it comes to game theory.

How many start-ups get the sustainable value creation point is something that I am most interested in.