Case Study

This Secret B2b Company Makes 400 Crores Per Year By Helping Zomato And Uber: Business Case Study

This Secret B2b Company Makes 400 Crores Per Year By Helping Zomato And Uber: Business Case Study

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Hi everybody,

In 2003, Jeff Bezos delivered an amazing TED on the start-up bubble of the world, where he spoke about which kind of investors and entrepreneurs make money during the start-up bubble. In this talk, he mentions the iconic California gold rush!

Did you know that in 1848, a bunch of miners found a ton of gold while constructing a mill in California? Do you know how much gold they found??
They found 323,000 Kilograms of gold!!
And the moment they found it, millions of people from all across the country flooded in to extract this gold. Out of these 1000s of miners, many of them died fighting, many of them got their gold stolen and only a few of them were actually able to walk away with a lot of gold!
Now if I asked you who made maximum money out of this gold rush, What would your answer be?
The strong powerful miners who could beat other gold miners right?
Well as it turns out, the people who actually made money were not gold miners but the people who sold shovels and horses to these miners, the people who sold meat and soup to these miners, and even people who sold clothes to these miners!

In fact, one of these pant sellers was none other than Levi Strauss who went on to build the iconic Levi’s company!!

and if you look at this story closely, this is literally the story of every other business revolution!! During the automobile gold rush, a lot of companies rose and fell but the ones who made money regardless were the ones who made nuts and bolts, who sold oil and even the steel companies that supplied steel to these automobile companies!! This is what you call as the second order business!! Where you build a business to help other businesses become competitive!! So ever since I studied this I was fascinated to find these case studies in the modern day to understand what goes into building a milion dollar business in this gold rush of start-ups!!
And do you know what?

That was when I found a company that sends OTPs and text messages for companies like Uber and Zomato making more than 400 crores in revenue in a single year!!! and all they did was replace complex telecom systems with simple software! Thats it!!!
This is the power of building a second-order business!! and the fun fact is that this space is still growing quite fast and can accommodate a few more players in the market!! So if you are an entrepreneur looking for an idea this could be a huge opportunity for you and if you are an investor this could help you find another gold mine start-up in this space to invest in!!!! So in this episode let’s dig deep and understand,

How on earth did this company called Plivo grow to generating more than 400 crores of revenue in a single year by enabling OTPs, voice calls and text messages?

What was their business strategy?
What problems are they solving for giant companies like Zomato and Uber?
and where is there a space for people like you and me?

and most importantly, what are the business lessons that we need to learn from this rise of this company?

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