The right enterprise version — and its proper execution — is what determines whether or not a startup goes large or goes home. The renowned writer of Business Model Generation,
Alexander Osterwalder, says, “A enterprise model describes the purpose of the way an employer creates, offers, and captures cost.”
The enterprise model is pivotal to the boom of a employer, enables in incomes sales, raising budget, and walking the operations. Business version innovation comes now not best from innovators however additionally from know-how and mastering from different business fashions. This is exactly what home service startup Lifeasy, which changed into launched in 2016, did to parent out what might work for it.
Most on-call for home service carriers work on two business models — marketplace or aggregation. A marketplace model enables dealers’ services or products on one platform and expenses are constant by means of the latter underneath their respective manufacturers — consisting of Flipkart — while an aggregation model onboards carrier vendors and fixes costs below one brand, like Ola.
The primary project in each those commercial enterprise fashions inside the home service quarter is execution. “These fashions are facing challenges as organizations ought to depend on freelance or independent technicians to supply the services on behalf of them,” says the founding father of Lifeasy, Rakesh Gupta.
Realising the challenges of each these fashions, Gupta and the other co-founders of Lifeeasy — Jeet Singh, and Gagneet Singh — made up their minds now not to undertake either of them.
The Delhi-NCR-based Lifeasy as a substitute decided to tread the direction much less selected by adopting a full-stack (quit-to-quit) transport model, in which the startup relies on its own group individuals to perform the task handy in preference to relying on sellers or companions. “By doing this, we may want to bring a whole lot of best and customisation to our customers,” says Gupta.
Lifeasy’s biggest competition, UrbanClap and HouseJoy, which can be leading the hyperlocal charts, have aggregated and hybrid (aggregation plus in-residence technicians) models respectively. They too had to adapt their business models to the Indian marketplace to live to tell the tale the hyperlocal business bubble burst.
The Indian home offerings enterprise is said to be worth close to $100 Bn with a median price tag size of $295 (INR 20K) in line with household in step with annum.
Home Services With Assured Quality — That’s Lifeasy’s Promise
Once it determined to persuade clear of each these models, Lifeasy developed a platform to serve its quit-to-stop shipping enterprise model for domestic services. Then, it built a crew of in-house technicians from scratch, and educated them in resolving obligations throughout as many as 18 domestic service categories. The aim of the stop-to-stop enterprise model turned into to make certain quality and consistency of services.
While setting out Lifeasy, the founders additionally infused their learnings from a previous stint in which they worked with cable operators, says Gupta.
The founders infused approximately $184K (INR 1.25 Cr) from their non-public savings to begin up the business enterprise. Initially, they received a deep knowledge of the diverse elements of carrier delivery, consumer expectancies, operational problems, and era necessities.
The bootstrapped client provider startup was formally released in April 2016, equipped to foray into the online domestic provider section to try to succeed with its new, then untested commercial enterprise model. Even Housejoy migrated to a hybrid version handiest in August 2016.
“We have listed all the famous home services in conjunction with the costs on our platform. Our operator gets an in-intensity short at the requirement from the customer before sending technicians, and additionally gets publish-service remarks,” Gupta explains.
Currently, the startup has a hundred twenty five technicians to cater to the hyperlocal on-demand marketplace in Noida, Ghaziabad, Delhi, Faridabad, and Gurugram. It has a total group of a hundred and seventy at gift.
Finding technicians for the unorganised zone, that too folks who ought to multitask, became one among Lifeasy’s largest challenges. “There’s a whole lot of duty that comes whilst catering to this area — to lease technicians or provider humans and teach them. Though they come with their very own know-how, they aren’t familiar with the company working surroundings. So we have to train them once more,” Gupta says. “We needed to deliver in greater manpower and did quite a few phrase-of-mouth advertising to rent technicians,” he provides.
Lifeasy Is Cash Positive, Targets $7.Three Mn Revenue By 2020
The startup these days announced that it is now a cash-fine business enterprise. In FY 2017-18, the business enterprise’s annual revenues have been approximately $474K (INR 3.25 Cr) and its monthly revenues become $36K (INR 25 lakh). “From March 2018 onwards, we had been producing revenues of $72K-$87K (INR 50 to 60 lakh) in step with month, up from $102K-116K (INR 7-eight Lakh) inside the corresponding duration within the previous year. This is why we are a coins-tremendous business enterprise now. Operationally, we're at a corporate level, we have no losses,” explains Gupta.
Gupta claims that Lifeasy is the first startup to be cash fine in the on-demand home services industry in India.
According to an Inc42 report, UrbanClap and Housejoy have pulled off their personal commercial enterprise models to come to be the two top players inside the on-line domestic offerings segment with FY16-17 revenues of INR ~eleven Cr ($1.6 Mn) and INR ~32 Cr ($4.72 Mn) respectively.
Lifeasy changed into based based totally on the idea that technical manpower density is extra vital than logo visibility. “Considering this, we invested extra in hiring the team and making ourselves visible digitally to generate the requirement place clever,” says Gupta.
The startup plans to cowl a sizable portion of the Delhi/NCR marketplace while slowly increasing its presence to Bengaluru and Mumbai. It is currently in the process of raising price range as it plans to attain the $7.3 Mn (INR 50 Cr) revenue mark by using Q1-2020.
On the carrier transport facet, Lifeasy plans to scale up its operations to 500-600 offerings an afternoon from the contemporary average of one hundred fifty services. The startup claims that it has completed a complete of approximately 30k offerings and deliveries. It finished 4k orders in FY 2016-17 and extra than 25k in FY 2017-18, with a sales flow of $479K (INR 3.25 Cr).
Players In The On-call for Home Service Market
Hyperlocal services continue to be the most up to date class within the startup area in India. “The copious upward push of Internet users, surge of fee alternatives, growth in geo-area conscious gadgets and expanded call for for insta-transport, have paved the way for hyperlocal businesses in India,” says an Indian Hyperlocal Market record by using Inc42.
Apart from UrbanClap and HouseJoy, Lifeasy also directly competes with befikr, a Delhi/NCR- based totally home carrier issuer. The startup these days raised approximately $2 Mn in a Series A funding, which it plans to utilise it to expand its services in Pune, enhance its era infrastructure, and for emblem constructing. Other startups catering to home services in Delhi encompass EZ Home Services, helpguru, easyfix, and Zimmbr, amongst others.
Lifeasy keeps that its present day fee in keeping with acquisition (CPA) is much decrease than different current gamers “as we don’t want to generate greater leads for impartial technicians.”
Going beforehand, being a manpower-in depth version, the foremost undertaking for Lifeasy will be to scale up fast without compromising at the described great parameters.