Latest news with #Routematic
Forbes
08-08-2025
- Business
- Forbes
How Scaling Deep Beats Scaling Up Fast — Lessons From Uber And Routematic
In a business world obsessed with blitzscaling, one CEO is advocating for a different approach. At a recent executive event hosted by venture capital firm Shift4Good, Sriram Kannan, CEO and cofounder of Routematic, told his peers that his company's growth has come not from chasing new markets, but first mastering a few. Routematic has deepened its service in just five Indian cities, building density, loyalty, and profitability before expanding further. The message surprised his peers who assumed growth is about expanding the customer base, not deepening the current base. Kannan's message jars in an era where the default playbook is Silicon Valley orthodoxy: raise capital, expand everywhere, dominate markets. Scaling deep doesn't mean slow growth; it means more measured and resilient growth. Kannan's argument warrants attention, especially given the mounting evidence that rapid expansion can destroy more value for companies and communities than it creates. The Allure of Scaling Up and Fast Almost every startup founder dreams of explosive growth and a lucrative exit. The formula is straightforward—raise capital, expand geographically, dominate markets. But fast geographic scaling multiplies complexity—regulatory environments, customer expectations, cultural norms—and often requires huge capital infusions before revenues catch up. Yet this approach regularly destroys companies. Consider WeWork's spectacular implosion in just nine years. The company expanded from one New York office to 528 locations across 29 countries. When it attempted to go public, investors discovered a company hemorrhaging cash with no path to profitability. Instead of a lucrative IPO, WeWork filed for bankruptcy. WeWork isn't an outlier. Rapid growth creates predictable problems: executives lose operational control, customer service deteriorates, and organizations become overextended and unstable. Companies get ahead of their skis, moving faster than their ability to manage effectively. The Alternative: Scaling Deep Some markets reward depth over breadth. Scaling deep means building stronger ties within existing communities rather than rushing to new geographies. Researchers Dr. Suntae Kim and Dr. Anna Kim examined this phenomenon through two Detroit-based business accelerators. One pursued rapid geographic expansion; the other focused on deepening local relationships. Their research, published in the Academy of Management Journal and the Harvard Business Review, revealed that ventures scaling deep created jobs, products, and spillover effects that stayed local and addressed community-specific problems. Deep scaling encourages companies to use resources efficiently—either by reaching full capacity or finding creative ways to repurpose existing assets. Deep scaling is often more cost-effective than geographic expansion, leaving more cash for reinvestment rather than requiring external funding. This approach can actually contribute more to sustainable competitive advantage than spreading thin across markets, as competitors find it more difficult to penetrate the market. Uber vs Routematic The contrast between Uber and Routematic reveals two fundamentally different approaches to growth—one focused on operational depth, the other on rapid geographic breadth. Uber is a consumer-facing platform that connects individual riders with drivers for on-demand travel. Its core business is a real-time marketplace, matching unpredictable demand (from airport trips to nightlife to daily commutes) with flexible supply. Uber does not serve enterprise clients with known scheduling needs, but rather operates in a volatile consumer space. Uber exemplifies the Silicon Valley scaling playbook. After launching in 2010 with $1.25 million in seed funding, Uber expanded to five U.S. cities within its first year. By 2014, it was launching in one new city every single day. This hypergrowth strategy required massive capital injections. Prior to its IPO in 2019, Uber had raised over $12 billion, although much of its capital injections are undisclosed. To put color on this number, Uber made a profit for the first time in 15 years in 2023. Uber CEO said in a 2023 earnings call that the first-ever profits proved 'that we can continue to generate strong profitable growth at scale.' Today, Uber operates in more than 71 countries in more than 15,000 cities, yet many markets remain unprofitable. Routematic, by contrast, is an AI-powered enterprise transportation services firm that partners with information technology companies to shuttle employees to and from work. Its clients, like Infosys, operate around the clock, with as many as 49 different shift start times in a single day. Routematic uses real-time traffic data and AI-driven routing to ensure employees arrive punctually and safely. It operates as a B2B service that companies purchase for their workforce—offering predictable demand patterns, recurring revenue, and optimized fleet management. Routematic's growth strategy was the opposite of Uber's. Routematic mastered local markets before expanding outward. Starting with just 10 cars and one client in Pune, the company spent two years optimizing fleet utilization across multiple corporate clients with different shift patterns. It expanded only after it was profitable in Pune by expanding next to Bangalore and then to other cities. Today, Routematic operates in just five Indian cities. Its measured growth to date has built a robust foundation for further expansion. As Routematic grows, it will continue to build its organizational assets, rather than scaling so quickly that it puts them at risk. The contrast between Routematic and Uber is stark: Even though Routematic operates in only 5 Indian cities for fleet services relative to Uber's 110+, Routematic has one-fifth of Uber's total Indian ride volume. Whereas Uber is unprofitable in many of the cities it operates, Routematic ensures profitability in every location it operates. Its deep understanding of local transportation patterns, consistent service delivery to corporate clients, and disciplined expansion strategy have enabled high asset utilization and strong margins. Two companies, two models. One is focused on transactions and scale; the other on relationships and resilience. The Architecture of Scaling Deep Routematic's success stems from three key innovations that would be impossible with rapid geographic expansion. These are systemic enablers of profitability for deep scaling. 1. Grow from profits, not investors' cash: Uber's approach to funding expansion relies on massive venture capital infusions, whereas Routematic operated profitably in Pune before expanding to Bangalore. As CEO Sriram Kannan explains: "You have to improve your the knife, then you can deploy it in any other city." This approach builds confidence among employees, customers, and investors while eliminating the financial risk of burning through investor capital across unproven markets. 2. Master one market before opening others: Uber's operational model prioritizes rapid market entry with standardized processes that can be quickly deployed across new cities, often learning and adapting on the fly while managing the complexity of hundreds of simultaneous markets. Routematic took the opposite approach: starting with just 10 cars and one client in Pune, the company faced a utilization challenge where corporate transportation demand is "lumpy"—many employees need rides simultaneously, leaving vehicles idle between peak periods. Kannan spent two years aggregating multiple corporate clients with different shift patterns, to achieve higher vehicle utilization rates throughout 12-hour shifts. This deep understanding of local transportation patterns would have been difficult with rapid multi-city expansion. 3. Focus on relationships, not transactions: Uber treats each ride as a separate transaction, with drivers competing for trips across multiple platforms and bearing the income uncertainty of gig work. Uber customers and drivers choose between multiple apps simultaneously, including Ola and Rapido, demonstrating little loyalty. Instead, Routematic focuses on relationships with businesses and drivers. It offers reliable transportation services to a business, so the business increasingly relies on Routematic as an increasingly sole provider. Routematic also guarantees drivers 12-hour shifts regardless of trip volume. This creates a stable income foundation that is a magnet for the best drivers, while enabling sophisticated route optimization across multiple clients. Routematic has built intimate understanding of local market conditions, while building strong driver loyalty. The Community-Wide Benefits of Scaling Deep The benefits to communities of scaling deep should not be underestimated. For drivers, Routematic offers a stable income, whereas Uber offers gig work. Routematic builds relationships and networks with its customers and drivers, offering stable service for businesses and stable income for drivers. This provides drivers a much better standard of living for a sustained period of time. Further, the Routematic approach opens up opportunities to reduce its environmental footprint. The efficient routing service means that cars are filled to capacity, both taking employees to their shift and taking them home. Efficient routing eliminates "dry runs" (empty vehicle travel), reducing both emissions and congestion. As well, the 12-hour shift has permitted rapid electric vehicle adoption. Routematic has adopted a fleet of EVs, which they are rolling out in the National Capital Region (Delhi). Routematic leases its EVs to drivers, absorbing higher upfront costs while benefiting from lower operating expenses. Scaling Deep Means Higher Margins--not Lower Profits It's easy to confuse a step-wise, measured growth with lower profits. In fact, it can be quite the opposite. Scaling deep challenges fundamental assumptions about speed and success. Instead of measuring progress as the number of customers or transactions, scaling deep measures success through operational excellence, customer satisfaction, and community impact. Routematic has achieved 8-10% month-over-month revenue growth while maintaining profitability. By scaling deep, Routematic has built a sustainable competitive advantage, while also contributing to stronger communities. This dual focus on corporate performance and community resilience creates a compelling strategic advantage for any firm. As venture capital grows scarcer and more expensive, scaling deep offers a compelling alternative to traditional expansion strategies. It delivers operational excellence, employee stability, customer loyalty, and market resilience. Sometimes the smartest path to growing the firm and its profits means going deeper, not wider. I developed this story, based on insights gained through a presentation to Shift4Good CEOs, a private interview with Routematic CEO Sriram Kannan, and additional desktop research. I chair Shift4Good's impact committee, but have no financial interests in its investments. Fact checking by Minali Giani.
News18
31-07-2025
- Automotive
- News18
Pune: Infosys And Routematic Roll Out City's First Fully Petrol & Diesel-Free Commute Fleet
Last Updated: Routematic leads the charge towards clean corporate travel with 100% CNG and EV vehicles in Pune Routematic, India's top AI-powered corporate mobility platform, has introduced Pune's first fully diesel and petrol-free transport fleet in partnership with Infosys. This move makes Routematic the only corporate transport provider in the city to go completely green. The fleet consists of four- and six-seater vehicles powered only by CNG and electric energy. Why Does This Matter? Pune is one of India's most traffic-congested cities. At the same time, air pollution levels are rising, with India accounting for 13 of the world's 20 most polluted cities, according to IQAir's 2024 report. This green fleet arrives at just the right time – cutting vehicular emissions, reducing traffic congestion, and improving air quality, one ride at a time. Sriram Kannan, Founder & CEO of Routematic, shared,'We're proud to lead from the front and set a new benchmark for green mobility in Pune. Becoming the first service provider in the city to enable 100% diesel and petrol-free operations is a testament to our commitment to lead the corporate transport sector towards a more sustainable future." By adopting a 100 percent diesel and petrol-free model, the company is showing how shared mobility can be both eco-friendly and efficient. With over 350,000 employees served across 300+ enterprises in 23+ cities, Routematic is already a major player. But they're not stopping here: Plans to expand to 10,000 vehicles by March 2026 Aim to electrify 30 percent of their fleet within two years Setting up city-level Command Centres for 24/7 EV monitoring. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hans India
06-06-2025
- Business
- Hans India
Accelerating Climate Action: How Indian Innovators Are Driving Sustainability on World Environment Day
Bengaluru: As the world comes together to mark World Environment Day, a wave of climate-conscious leadership is rising in India. Visionary entrepreneurs and businesses across sectors are stepping up—not just with promises, but with action. Whether it's backing climate-tech innovation, embedding sustainability in manufacturing, or revolutionizing urban mobility, leaders are reimagining how business can be a force for environmental good. Their message is clear: real progress toward a net-zero future demands collaboration, innovation, and purpose-driven investment. Vasudha Madhavan, Founder & CEO of Ostara Advisors, emphasizes the role of climate-tech in driving systemic change. 'On this World Environment Day, we reaffirm our commitment to driving sustainable change by supporting innovative climate-tech companies. Our mission is to connect visionary entrepreneurs with the capital they need to build a greener, cleaner future for India and beyond, helping accelerate the journey to net zero. Together, through collaboration and conscious investment, we can speed up the transition to a low-carbon economy and create lasting environmental impact. Let's use this day to inspire action and embrace sustainability in small day-to-day choices we make in our lives.' For IDEMIA Secure Transactions (IST), sustainability is embedded into product design and operational processes. Matthew Foxton, India Regional President and Executive Vice President of Branding & Communications at IDEMIA Group, shares, 'At IDEMIA Secure Transactions (IST), environmental sustainability is thought into everything we do. On World Environment Day, we reaffirm our commitment to reducing environmental impact across our operations, from eco-designed products to improved manufacturing and service processes. Initiatives like GREENPAY and GREENCONNECT reflect how IST incorporates environmental considerations into secure payment and connectivity solutions. We follow a clear path: reduce, reuse and recycle, while partnering with responsible suppliers and driving resource efficiency across our value chain. At IST India, this commitment comes alive through energy-efficient practices, waste reduction, and community-driven initiatives.' In the mobility space, Routematic is leading efforts to reduce emissions through smarter corporate transport. Sriram Kannan, Founder & CEO of Routematic, notes, 'This World Environment Day, as the global focus sharpens on curbing pollution, we're reminded that sustainability must be embedded in every layer of business operations, including how we move people. With ESG goals reshaping corporate strategies, businesses are rethinking employee transport and Routematic is proud to lead this shift. As India's leading AI-driven Corporate Transport-as-a-Service provider, we combine AI-powered route optimization, shared mobility, and EV integration to reduce emissions and resource use. Serving 300,000+ users across 23 cities, and targeting 30% EV fleet adoption, we're building a corporate mobility ecosystem that's smart, responsible, and truly sustainable.' Together, these voices signal a transformative shift in how Indian businesses are approaching sustainability—through bold leadership, collaborative action, and innovative solutions that serve both planet and people.
Business Standard
28-05-2025
- Automotive
- Business Standard
Bosch posts PAT of Rs 554 crore in Q4; board OKs dividend of Rs 512/share
Bosch has reported 1.9% fall in net profit to Rs 553.7 crore despite a 16% increase in revenue from operations to Rs 4,910.6 crore in Q4 FY25 as compared with Q4 FY24. The company stated that the reduction in PAT is mainly on account of tax adjustments of earlier years and one-time exceptional items in PY. The growth in revenue was driven by growth in power solutions by 16.9%, mobility aftermarket business by 7.9%, 2-wheeler powersports by 21.4%. EBITDA improved by 16.1% to Rs 646.9 crore in Q4 FY25 from Rs 557.2 crore in Q4 FY24. The absolute growth in EBITDA is mainly driven by revenue growth and improvement in material cost. Profit before tax stood at Rs 778 crore in quarter four of FY 202425, which is an increase of 17.8% over the same quarter of previous year. For FY25, Bosch has registered a consolidated net profit of Rs 2,013 crore (down 19.2% YoY) and total revenue from operations of Rs 18,087 crore (up 8.1% YoY). Guruprasad Mudlapur, president of the Bosch Group in India, and managing director, Bosch, said: Amid a challenging business environment, we concluded FY24-25 with strong revenue growth and increased sales across businesses. Sustained demand in the off-highway and passenger car segments contributed to our performance this quarter. This development reflects our agility in adapting to dynamic market needs and our continuous focus on customer centricity. The board of directors of the company has recommended a final dividend of Rs 512 per share for the financial year 2024-25. In a strategic decision, Bosch has announced its decision to divest its 6.97% shareholding in Nivaata Systems, Bengaluru, Karnataka, India (Routematic). Bosch had invested in 2020 in Routematic with an aim to expand its digital offering in the office commute landscape. The goals of the investment have since been achieved by Bosch. Bosch in India is a leading supplier of technology and services in the areas of mobility solutions, industrial technology, consumer goods, and energy and building technology. Additionally, Bosch has in India the largest development center outside Germany, for end-to end engineering and technology solutions. The Bosch Group operates in India through twelve companies and Bosch Limited is the flagship company of the Bosch Group in India. The scrip fell 2.75% to end at Rs 31619.15 on the BSE today.
Entrepreneur
10-05-2025
- Business
- Entrepreneur
Investor Favorites This Week: Meet the Startups Making Headlines
The below startups secured the highest funding this week, leading the charts from May 03 to May 09. Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. India's startup landscape buzzed with fresh activity this week as innovative ventures secured significant funding across logistics, mobility, wellness, femtech, and AI-driven consumer technology. The deals underscore a robust investor appetite for scalable, tech-forward solutions aimed at modern-day urban challenges and lifestyle transformation. Porter Funding Amount: USD 200 Million Investors: Kedaara Capital, Wellington Management, Vitruvian Partners Founded in 2014 by Pranav Goel, Uttam Digga, and Vikas Choudhary—all IIT alumni—Porter is a Bengaluru-based logistics platform that streamlines intra-city freight and delivery. The company offers a wide range of services, including on-demand mini-trucks, enterprise logistics, and household packers and movers. Porter serves both B2B and B2C segments, making city logistics faster, affordable, and tech-driven. Routematic Funding Amount: USD 40 Million Investors: Fullerton Carbon Action Fund, Shift4Good Bengaluru-based Routematic, founded in 2013, delivers AI-powered corporate mobility solutions. The platform integrates SaaS-based commute management with Transport-as-a-Service (TaaS), enabling real-time dispatch, automated routing, and effective demand-supply matching. Its solutions have proven to reduce operational costs and improve commuter safety for large organisations. The Good Bug Funding Amount: USD 12 Million Investors: Susquehanna Asia Venture Capital, Fireside Ventures Launched in 2022 by Keshav Biyani and Prabhu Karthikeyan, The Good Bug is a Mumbai-based gut health startup. Its offerings include synbiotics, probiotics, prebiotic fibers, and detox supplements, targeting common issues like bloating, constipation, and weight management. The brand taps into the growing demand for holistic wellness through science-backed nutrition. Posha Funding Amount: USD 8 Million Investors: Accel, Xeed Ventures, Waterbridge Ventures, Binny Bansal, Asha Jadeja Motwani, Samay Kohli, Akash Gupta Formerly known as Nymble, Bengaluru-based Posha was founded in 2016 by Raghav Gupta and Rohin Malhotra. The company offers an AI-enabled kitchen robot that automates home cooking. With camera and thermal sensors, it personalises recipes and prepares over 500 dishes across 10+ cuisines, giving busy families an effortless way to eat healthy and delicious meals. BlissClub Funding Amount: USD 5.3 Million Investors: Elevation Capital, Eight Roads Ventures, Alteria Capital Founded in 2020 by Minu Margeret, BlissClub is a Bengaluru-based D2C femtech brand. It focuses on "movewear" for women—an activewear-meets-lifestyle line that includes leggings, tops, outerwear, and travel wear. With performance and style at its core, the brand is building a loyal community of health-conscious women. As these startups gear up for their next phase of growth, this week's funding surge reflects the resilience and adaptability of India's innovation ecosystem, where bold ideas backed by capital continue to reshape the way we live, move, and consume.
