Counterfeit products have existed for quite a while in the market. Customer experience, company’s revenue, and the country’s GDP are few among the various things that are affected by the counterfeit industry. Although there is no unified anti-counterfeit legislation in India, there are statutory provisions in various statutes to protect and enforce IP rights holders against counterfeiting.
One of the keyways of curbing the products as well as the industry is to know the authenticity of the products that are being sold in the market. This is a potential solution that can be presented to customers to take an action from their side.
Delhi-based IT Technology company Genefied offers an anti-counterfeiting system through its QR-code technology. The aim of the company is pretty simple: provide customers full transparency of the production and sales of products.
A unique QR code is provided on the packaging of every simple product and customers can scan this code and it will lead them to the company’s online platform where the entire process with name and location details are provided.
Ayush Jhawar, founder and CEO of Genefied told Entrackr, “The corporate culture is very ROI driven and the anti-counterfeiting system does not directly relate ROI. However, if you can give [the customers] surety for a longer term it does give results that consumers buy from you.”
Along with its flagship product the other main services offered are solutions in the domain of loyalty management, anti-counterfeited products, traceability services, and supply chain management. The goals of the company is to avoid counterfeiting, warranty fraud, and add loyalty to companies.
The company currently has a client base of over 20 large enterprise brands who use the flagship product. The loyalty management solution has a user base of over 1 million customers including retailers, electricians, plumbers, etc. Overall, the company has generated around 2 billion QR codes so far and claims its services have benefitted around 1 crore consumers.
The consumer brand SaaS company has a current valuation of Rs 60 crore and a monthly recurring revenue of Rs 50 lakhs. In 2019 the company received Rs 6 lakhs in funding from Dilip Cherian, Rs 30 lakhs from Vivek Bhargava in 2020, and recently raised Rs 50 lakhs from Achin Kochar in 2021.
Set up in 2017, the company started off with its QR-code technology to track and trace. It has now expanded to offering allied business with product names as GenuineMark, Rewardify, SupplyBeam, DWAM.
The company’s business model is based on generating revenue from enterprises. In other words, it operates in the segment of B2B marketing and charges enterprises on the basis of the volumes shipped to the market.
Another stream that provides revenue to the company is by providing licenses to brands that, in turn, help these firms to maintain their authenticity and originality among consumers. Companies are charged for the SaaS services, consumables, hardware, and loyalty gifts.
The company recorded its revenue at Rs 1.52 crore in FY21 and the company saw Rs 71 lakhs in revenue in FY20. Targeting to reach a revenue of $2 million in the next year, the company expects to clock a YOY growth of 100%.
In terms of future growth, the company plans to grow 80X in revenue over the next 10 years and intends to add 20 more brands to its customer base. This number is planned to increase to 50 the following year.