Latest news with #SriramKannan
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.
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Business Standard
07-05-2025
- Automotive
- Business Standard
Bengaluru-based Routematic raises ₹340 cr, defies electric vehicle dip
Bengaluru-based Routematic, India's leading artificial intelligence-driven corporate transport-as-a-service player, which provides its services to over 300 companies, on Wednesday announced that it has secured ₹340 crore in a funding round led by Singapore-based Fullerton Carbon Action Fund and French green fund Shift4Good. Ostara Advisors, India's leading climate-technology investment banking firm, was the exclusive financial advisor to Routematic on this transaction. The move is important as it comes at a time when the app-based mobility space — both business-to-business (B2B) and business-to-consumer (B2C) — has been under a cloud, following the financial crisis and closure of BluSmart Mobility Services, which was based primarily on electric vehicles (EVs). Founded in 2013, Routematic provides a safe and predictable commute experience to over 300,000 employees, undertaking 5 million trips a month. India's employee transportation market is expected to reach $13.2 billion by 2030. Says Sriram Kannan, founder and chief executive officer of Routematic, 'With the new fundraise, we will be expanding to the top five cities in the country, which account for 85 per cent of the corporate transportation business. Currently, we are in Pune and Bengaluru; we will now expand to Hyderabad, Delhi, and Chennai.' Currently, 10 per cent of the fleet consists of EVs, but Kannan says demand is much higher. The plan is to increase the share of EVs to 30–35 per cent in a few years and shift to a fully electric fleet by 2028–30, in line with clients' plans to expand their green footprint. Kannan says the focus is on driving efficiency rather than just top-line growth, which has already helped the company achieve profit after tax. He says the corporate transportation business has two segments — B2B and B2C. The former is already valued at $4 billion annually in India, and Routematic currently holds only a 5 per cent market share. The goal is to increase this share to 20–25 per cent in three to five years through the fundraise. The company also has a presence in the B2C segment through its COCO Rides brand, for which it has allocated 15 per cent of the funds for expansion. 'We have already seen large campuses wanting to work with us, and we've landed a few large deals. So, COCO Rides is also projected to account for about 15–20 per cent of our total revenue over the next three to four years. COCO Rides is B2C, but you could also call it B2B2C (business-to-business-to-consumer),' he says. This market is estimated to be larger, at $14–16 billion per annum. Their strategy is differentiated from Ola's or Uber's in the B2C space. COCO Rides services are available only to customers who work in companies with which Routematic has a corporate transportation tie-up. Only these users can access the service through the app and pay directly for their rides. This model also increases the utilisation of Routematic's vehicle assets. The COCO model concentrates on high-volume areas, with partnerships including real estate majors such as Brookfield and information technology hub developers. Routematic had earlier raised roughly $6 million across previous investment rounds led by Blume Ventures, VAMM Ventures, and Bosch between 2015 and 2021.
Entrepreneur
07-05-2025
- Automotive
- Entrepreneur
Routematic Raises USD 40 Mn Series C from Fullerton and Shift4Good to Drive EV Expansion and City Growth
The capital infusion will be used to expand operations across India's top five cities, scale the fleet to 10,000 vehicles by March 2026, and convert 30% of its fleet to electric vehicles (EVs). You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Corporate mobility solutions provider Routematic has secured USD 40 million in a Series C funding round led by Fullerton Carbon Action Fund and Shift4Good, with Ostara Advisors acting as the exclusive financial advisor. The capital infusion will be used to expand operations across India's top five cities, scale the fleet to 10,000 vehicles by March 2026, and convert 30% of its fleet to electric vehicles (EVs). The company also plans to establish new city-level command centres, with Delhi-NCR next on the radar after successful rollouts in Bengaluru, Pune, and Hyderabad. Sriram Kannan, Founder and CEO of Routematic, said, "We are grateful for our investors' trust as we drive the future of corporate transportation. This investment will enable us to capitalize on the growing demand and further strengthen our leadership in sustainable corporate mobility." Founded in 2013, Routematic offers AI-driven corporate mobility solutions, combining SaaS-based commute management with Transport-as-a-Service (TaaS). With operations in over 23 Indian cities, Routematic services 300+ enterprise clients and handles 5 million monthly trips, offering safe, reliable, and sustainable commuting options to 300,000+ users. Routematic's platform automates demand-supply matching, dispatch, and dynamic routing, significantly reducing transport costs and enhancing commuter safety. The company has previously raised about USD 6 million from investors including Blume Ventures, VAMM Ventures, and Bosch. Kavitha Ramachandragowda, Co-founder and Executive Director, added, "This investment enables us to scale new heights. With AI at our core, we will continue to create safer, more efficient, and environmentally responsible commuting solutions." Fullerton Fund Management's Huck Khim Tan highlighted Routematic's role in decarbonisation and called it "a profitable, fast-growing business solving critical challenges in urban mobility." Shift4Good's Sebastien Guillaud praised the platform's real-time automation, saying it "sets a new benchmark in a traditionally low-tech sector." Routematic is poised to lead India's transition to green, tech-enabled urban mobility, addressing corporate ESG goals while redefining the future of employee commutes.
Time of India
07-05-2025
- Automotive
- Time of India
Routematic raises $40 million in funding round
NEW DELHI: Business-to-business ride services company Routematic has raised $40 million in a funding round led by venture capital firm Fullerton Carbon Action Fund and Shift4Good, senior company officials said on company plans to use the fund to strengthen its business matrix and expedite its journey towards public listing, Founder and CEO Sriram Kannan said."We have signed a shareholder agreement for a $40 million fundraise. The fund will come in two tranches," he provides an AI-based technology platform to manage the commute of employees. The company's platform optimizes service routes and enhances fleet efficiency by boarding employees of different corporations as per demand. Kannan said the company has services in 23 cities in company is planning to foray in overseas markets as well as expand deeper into top 5 cities -- Bangalore, Pune, Hyderabad, Chennai and Delhi NCR."We are looking to go towards an exit event, which is an IPO. This funding would help us get there much quicker than what we can do organically. The corporate transport market is going towards this managed services are helping corporates in optimizing their employees travel cost as well as eliminating several cost layers engaged in its management," he next phase focuses on establishing city-level command centers that will enable demand-responsive fleet management at co-founder and executive director, Kavitha Ramachandragowda said the company doesn't plan to own any assets but it will facilitate driver said Routematic has just started discussion to rope-in driver partners from electric vehicle-based beleaguered firm BluSmart but it is at a very initial about financials of the company, Ramachandragowda said "We expect to close the fiscal year 2024-25 with over 50 per cent growth at around Rs 180 crore." The company had posted revenue of around Rs 116 crore in 2023-24.
