Learn about the advantages of purchasing group term life insurance through AOAExcel®.
Original Source: aoa.org
Future Group founder Kishore Biyani on Wednesday said the homegrown retail major lost nearly Rs 7,000 crore revenue in first three-four months of the COVID-19 pandemic due to closing of stores, which led him to sell his business to Reliance Industries.
In August this year, billionaire Mukesh Ambani's Reliance Industries announced acquisition of retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for Rs 24,713 crore.
"We got into a trap to be very honest with COVID-19. In the first 3-4 months, we lost nearly Rs 7,000 crore of revenue, Biyani said at the Phygital Retail Convention.
There was no way the company could have survived losing such an amount, he said, adding the problem is rent doesn't stop, interest (on debt) doesn't stop .
"We did too many acquisitions in the last six-seven years… I thought there was no other answer but to exit," he stated.
He said for retailers the worst is yet to come.
"We have designed business to be profitable at 90 percent of our targets. In any scenario… we will not be able to touch 70-80 percent (of target)… If you look at long-term planning 5 to 10 years — it will not be easy for physical stores," he said.
Through the deal made in August with Reliance Industries, the Ambani led firm will acquire Future Retail, which owns BigBazaar that sells everything from groceries to cosmetics and apparel, and Future Lifestyle Fashions Ltd that operates fashion discount chain Brand Factory.
Kishore Biyani's Future Retail to raise up to Rs 650 Cr to reduce debt
While Reliance will take over Future Consumer, which sells food, home, and personal care products, Future Group's financial and insurance business is not part of the deal.
Future Retail operated 1,550 stores. Its flagship brands BigBazaar, FBB and Foodhall, Easyday, Heritage Fresh and WHSmith. Future Lifestyle Fashion operates 354 stores.
Investment from Reliance would help Future's founder Biyani pare debt.
Last week, US online retailer Amazon slapped a legal notice on Future Group, alleging that the retailer's Rs 24,713 crore asset sale to Reliance Industries violated an agreement with the ecommerce giant.
"We have initiated steps to enforce our contractual rights," a spokesperson for the Seattle-based ecommerce giant said. "As the matter is sub-judice, we can't provide details."
Amazon last year bought a 49 percent stake in one of Future's unlisted firms, Future Coupons Ltd, with the right to buy into flagship Future Retail after a period between 3 and 10 years. Future Coupons owns a 7.3 percent stake in Future Retail.
In August this year, Future reached an agreement to sell its retail, wholesale, logistics and warehousing units to Reliance.
The deal is awaiting regulatory approvals.
Edited by Megha Reddy
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Original Source: yourstory.com
September is Life Insurance Awareness Month, reminding people to plan for the unthinkable. AOAExcel® offers that peace of mind through group term and individual term life insurance for AOA members.
Original Source: aoa.org
Plum, a Bengaluru-based group health insurance startup that works with corporates, has raised Rs 7 crore in seed funding.
The round was led by Incubate Fund with participation from Gemba Capital and Tracxn Labs along with angel investors, including Abhijit Gupta and Ram Sahasranam of Praxify Health, Sudheendra Chilappagari of Belong.co, Nitin Jayakrishnan of Pando, and Alvin Tse of Xiaomi.
L-R: Saurabh Arora (CTO) and Abhishek Poddar (CEO)
Also Read[Funding alert] GigIndia raises Rs 7.3 Cr in pre-Series A round led by Incubate Fund
The company said it planned to use the funding to scale business and engineering teams so as to solve some of the toughest engineering challenges in insurtech and build innovative distribution channels.
Working with nine insurance companies, Plum claimed to have over 100 companies as customers within just four months of launch.
Abhishek Poddar, Co-founder and CEO, Plum, said,
“We want to be the de-facto platform for employee health insurance, initially in India, and later in other developing markets like Southeast Asia and Latam.”
The startup, through its online platform, is on a mission to enable employee health insurance for over 1.1 million companies in India by reinventing how health insurance works. It understands the needs of a corporate and guides them on setting up their group health insurance in less than 60 minutes.
Plum additionally helps employees with improved health benefits including doctor consultations, health check-ups, fitness and yoga, mental wellness, nutrition, and dental care. The platform, which has an insurance intermediary licence from IRDA, enables ease of experience for employees with guided claims support.
In the current situation, Plum also offers COVID-19 to its clients, including Twilio, Instawork, Posist, RevvSales, The Label Life, Growfit, StayAbode, Fampay, myHQ, and Jiny.
Plum was founded in late 2019 by Abhishek Poddar and Saurabh Arora, who comes with experience in financial technologies and insurance distribution.
Saurabh Arora, Co-founder and CTO of Plum, said, “At Plum, we are imagining group health insurance products from the ground-up. We have built underwriting and fraud detection rails with insurance companies that never ever existed. This has enabled us to offer pricing that may be up to 80 percent cheaper than existing market pricing, to companies as small as seven employees. At Plum, we are building a truly online insurance platform that covers front end (distribution) and back end (pricing, carrier and compliances).”
According to the startup, the group health insurance market in India, which is almost 50 percent of the total health insurance market, is expected to grow to Rs 100,000 crore by 2025. It has seen an annual growth of about 25 percent in the last few years, and is doubling every three years.
Nao Murakami, Founder and General Partner at Incubate Fund India, said,
“Group health insurance is a very complicated product in nature and the entire customer process, from buying to claiming, is still very manual in India. So, there is a huge gap between insurance companies, employers, and employees. Plum is filling this gap by bringing transparency and efficiency through beautiful technology and product.”
(Edited by Teja Lele Desai)
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Original Source: yourstory.com
The science of human behavior is a river of with exclamations, curiosities, prevarications and humble confusion. But among the currents and eddies often there are useful insights that help us navigate daily life.
One such notion was introduced by Jason Hreha, a Stanford graduate and one-time co-author with Dan Ariely. Hreha is now Global Head of Behavioral Sciences at Walmart, the world’s largest employer.
About a year and a half ago, Hreha was talking with a former member of President Obama’s Social and Behavioral Sciences Team.
According to Hreha in a recent email, the small group became a roaming behavioral economics consultancy during the final three years of Obama’s presidency. They worked on various projects, big and small, across various agencies.
After a few different case studies, says Hreha, it became clear — the Social and Behavioral Sciences Group was all about simplification.
Every single project the person described to Hreha, involved taking some bloated government process or solution — and making it smaller, quicker, easier.
An example. Pretend the Department of Health and Human Services (DHHS) wants to increase the health insurance application rate, but it just so happens the application process is 45 minutes long and requires people to fill out a health-status questionnaire.
The behavioral sciences SWAT team would want to cut down the application length as much as possible (from 45 minutes to 10) by eliminating or shortening steps. In this case, the team might ask DHHS to re-design the form so that healthy applicants can fill out the health-status portion with a couple of clicks (“I am a healthy person”, etc.).
Since healthy applicants are the ones least likely to use health insurance, a tweak like this could increase the application rate for this group — important because this group pays for health care they rarely use.
Bureaucrat-designed processes tend to be longer than necessary, so a behavior-change strategy focused on shortening and simplifying government forms makes a lot of sense.
Which brings us to the three types of behavioral interventions.
Simplification is all about making a behavior easier.
Motivation is all about making a behavior more enjoyable or exciting.
Instigation is all about making a behavior salient or top-of-mind. It’s about reminding people to do a behavior.
The White House behavioral team was focused on simplification, which made sense for the types of problems faced in government.
But in our personal lives and the business world, points 2 and 3 are equally important.
Whenever you’re facing a behavior problem related to brand or business, it’s useful to think about these three categories.
Ask yourself: Is there a way to make this behavior simpler? Is there a way to make this behavior more intentional, enjoyable or exciting? Is there a way we can make sure this behavior is memorable and repeated?
Contributed to Branding Strategy Insider by: Patrick Hanlon, Author of Primal Branding
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Original Source: brandingstrategyinsider.com