Lessons from frugal businesses minting money in India

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Lessons from frugal businesses minting money in India
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Forget unicorns. To thrive in the subcontinent’s tricky market you are better off with a camel

For foreign investors, India is a puzzle. On the plus side, it is a potentially huge market, recently passing China as the world’s most populous. The IMF predicts that India will be the fastest-growing of the world’s 20 biggest economies this year. By 2028 its GDP is expected to be the third-largest, moving past Japan and Germany. The stockmarket is pricing in heady growth. Over the past five years Indian stocks have beaten those elsewhere in the world, including America’s.

He believes that though the wallet size of Indian consumers is small, they are willing to pay for products that offer value. Zerodha charges 200 rupees to open a new account when most of its competitors do so for nothing. Mr Kamath believes that even this small amount forces the company to ensure that its users find its platform useful enough to pay that extra fee. India’s technology dromedaries are also ruthlessly capital-efficient. Zerodha and Zoho have not raised any money from investors.

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