Smartivity

Smartivity Foundation Story

Smartivity is an Indian startup that focuses on creating educational STEM toys. The company was founded in 2015 by Tushar Amin, Apoorv Gupta, Ashwini Kumar, and Rajat Jain. The idea behind Smartivity was to create toys that not only entertain children but also educate them through practical and creative learning methods.

Vision and Early Days

The founders of Smartivity realized that traditional toys were not engaging children for long periods. They saw a need for toys that could offer a more wholesome and immersive experience. Tushar Amin, who had extensive editorial experience, including working with GQ Magazine and Filmfare, noticed this gap while consulting for a digital platform focused on kids[2]. This observation led them to design toys that combine physical activities with practical learning.

The initial vision was to keep children engaged through DIY objects. However, this vision evolved over time to focus on imparting smarter learning. The founders drew inspiration from Professor Robert Stanberg's philosophy, which emphasizes three bits of intelligence: analytical, creative, and practical. They aimed to introduce practical learning into the Indian educational culture, which was predominantly theoretical.

The early days involved significant brainstorming and experimentation. The founders tested various materials and eventually settled on wooden DIY kits. These kits were designed to be simple, yet effective in teaching STEM concepts through play.

Founding Team Background

Tushar Amin brings a rich editorial background to Smartivity. He has over two decades of experience in leading editorial ventures and currently heads the Marketing, Strategy, Product Development, and Creative Operations at Smartivity[2].

Ashwini Kumar, another co-founder, has an engineering degree from one of India's most reputed institutes. He is responsible for the Indian and International Business Development efforts at Smartivity Labs[2].

Apoorv Gupta and Rajat Jain, the other two co-founders, played crucial roles in the inception and growth of Smartivity. Gupta discussed the idea with his IIT-Delhi batchmates, and Jain, with his background in toy importing and distribution, was instrumental in identifying the gaps in the toy sector[5].

Smartivity Business Evolution

Smartivity has undergone significant evolution since its inception. From its initial concept of DIY toys to its current state of offering a wide range of STEM products, the company has continuously innovated and expanded its offerings.

From Initial Concept to Current State

The company started by designing DIY toys made of wood that allowed children to build and play. These toys were not just board games but interactive sets that taught various STEM concepts. Over time, Smartivity introduced augmented reality-enabled lenses for science textbooks, enhancing the learning experience for children in a more interactive way[1][2].

Today, Smartivity offers a diverse range of products, including the Spello game, which teaches kids how to spell, and various DIY science and engineering wooden construction sets. These sets introduce children to fundamental STEM concepts such as domino effects, force, momentum, and gravity[1][3].

Key Growth Milestones

One of the significant milestones for Smartivity was securing seed funding of Rs 84 lakh from S Chand & Company in 2015. This funding was crucial for the company's initial growth and allowed them to expand their product range and market reach[1].

Smartivity also achieved a notable milestone by supplying its products to 1,800 centers of Kidzee, a playschool brand across India. This partnership helped in reaching a wider audience and establishing Smartivity as a leading educational startup[1].

In 2018-19, Smartivity earned a revenue of 20 Cr, highlighting its successful business model and market acceptance[5].

Product Portfolio Expansion

Smartivity's product portfolio has expanded significantly over the years. The company now offers a range of DIY science and engineering wooden construction sets. One of the global bestsellers is the Mechanical Music Machine, which allows children to build their own xylophone and learn about the mechanical aspects of music[3].

Other notable products include the Stem Wheels – Speedster set, which introduces children to concepts of motion, elasticity, and momentum, and the Roboformers Rover-Bot 2-in-1 set, which teaches wind-up mechanisms, gears, and laws of motion[3].

• Spello game for spelling
• Augmented reality-enabled lenses for science textbooks
• DIY science and engineering wooden construction sets
• Mechanical Music Machine
• Stem Wheels – Speedster set
• Roboformers Rover-Bot 2-in-1 set

Smartivity Technology Infrastructure

Smartivity's technology infrastructure is robust and innovative, supporting its mission to provide cutting-edge educational products. The company focuses on integrating technology with traditional learning methods to create an engaging and effective learning experience.

Core Platform Architecture

The core platform architecture of Smartivity involves designing and developing products that are both educational and fun. The company uses laser-cut construction and activity sets made from sustainable, engineered wood. These sets are designed to introduce children to fundamental STEM concepts in an interactive way[3].

The platform also includes augmented reality components that enhance the learning experience. For instance, the augmented reality-enabled lenses for science textbooks allow children to see and interact with various concepts in Physics, Chemistry, and Biology[1].

Security and Compliance Framework

While specific details on the security and compliance framework of Smartivity are not extensively documented, it is clear that the company prioritizes the safety and educational value of its products. The rigorous R&D process ensures that instructions are simple to follow, and games are uncomplicated, making them suitable for children[1].

The company also tests its products in partner day-care centers to ensure they meet the required standards before they are released to the market[1].

Innovation in its Industry

Smartivity is a pioneer in incorporating augmented reality and DIY kits into educational products. The company's innovative approach to learning has set it apart in the industry. By introducing children to STEM concepts through play, Smartivity has made learning more engaging and effective[2][3].

The use of sustainable materials and the focus on practical learning align with modern educational trends, making Smartivity a leader in the educational toy sector. The company's commitment to innovation ensures that it continues to develop new and exciting products that cater to the evolving needs of children's education[3].

Company Market Impact

Smartivity Labs has made a significant impact on the market by providing innovative STEM (Science, Technology, Engineering, and Math) educational toys. The company's focus on creating engaging and educational products has helped it gain a strong foothold in both domestic and international markets.

User Base Growth

Smartivity Labs has seen substantial growth in its user base over the years. The company's products are designed for children between the ages of 4 and 12, and they have been well-received by both kids and parents. Here are some key points about their user base growth:

• The company has expanded its presence globally, with products now available in Russia, Spain, Portugal, China, and Western Europe[6][10].
• In the USA and Canada, Smartivity Labs is shipping its first orders to retail giants like Target and Walmart, further increasing its user base[6][10].
• In India, the company plans to launch 18 new STEM educational construction toys along with a subscription-based service, which is expected to attract more users[6][10].
• The STEMNinja program, where children collaborate with the Smartivity team, has also helped in engaging more kids and gathering valuable feedback for product development[6].
• The company's products are not only popular among children but also among parents who value the educational and fun aspects of the toys[7].

Market Share Expansion

Smartivity Labs has been successful in expanding its market share through various strategies. Here are some details on how they achieved this:

• The company has established a strong retail presence, with products available in both current retail chains like Hamleys and Crossword, as well as traditional mom-and-pop toy stores. This has helped in increasing visibility and credibility[10].
• Smartivity Labs has also focused on institutional sales and exports, which have contributed significantly to its market share expansion[10].
• The company's products are available online, but offline sales account for almost 90% of its retail sales, indicating a strong physical market presence[10].
• Expanding into new geographies such as South America, Turkey, and Greece has further increased their market reach[6][10].
• Partnerships with retail giants have helped in penetrating new markets and increasing the company's market share[6][10].

Financial Inclusion Initiatives

While Smartivity Labs is primarily focused on educational toys, their financial success and growth strategies are also noteworthy. Here are some points related to their financial inclusion initiatives:

Although the company's primary focus is not on financial inclusion, its growth and expansion have contributed to economic activity in various regions. Here are some key points:

• The company has created jobs in manufacturing, design, and other areas, contributing to local economies[6].
• By exporting products to multiple countries, Smartivity Labs is also contributing to international trade and economic exchange[6][10].
• The company's growth has attracted investments, which in turn have helped in strengthening its financial position and expanding its operations[7].
• Smartivity Labs' commitment to innovation and quality has helped in building trust among consumers, which is crucial for sustained financial growth[7].
• The company's plans for launching new products and services, such as the subscription-based service in India, are expected to further boost its financial performance[6][10].

Company Financial Journey

Smartivity Labs has had a remarkable financial journey since its inception in 2015. Here’s an overview of their financial growth and milestones:

Revenue Growth Story

The company has experienced significant revenue growth over the years. Here are some key highlights:

• In the financial year 2015-16, Smartivity Labs started with sales of over INR 65,000. By 2018-19, this figure had grown to INR 20 crores[10].
• The company is on track to achieve sales of over INR 50 crores in the financial year 2019-20[10].
• Smartivity Labs has grown over 10 times in the past two years, with a target to cross Rs 100 crores in revenue in the next three years[7].
• The company’s exports are expected to grow three to four times in the year following the investment round in 2018[7].
• Smartivity Labs has shipped over 1.5 million products since its inception, indicating a strong and growing demand for its products[10].

Path to Profitability

While specific profit figures are not detailed, the company’s growth and investment rounds suggest a path towards profitability. Here are some points to consider:

The journey from a small startup to a significant player in the STEM toys market has been challenging but rewarding for Smartivity Labs.

• The initial challenges with their digital subscription-based startup, Yoohoobox, taught the team valuable lessons about the toy industry and retail expectations. This experience helped them pivot to Smartivity Labs[6].
• The company has focused on strengthening product development, manufacturing capabilities, and launching innovative brand awareness initiatives, which are crucial steps towards profitability[7].
• Smartivity Labs has managed to secure significant funding rounds, which have been used to enhance their operations and expand their market reach. This financial support has been instrumental in their growth[7].
• The company’s commitment to quality and innovation has helped in building a loyal customer base, which is essential for sustained profitability[7].
• Expanding into new markets and geographies has also contributed to their financial stability and growth potential[6][10].

Investment Rounds and Valuations

Smartivity Labs has secured several investment rounds that have helped in its growth and expansion. Here are the details:

• In May 2016, the company raised nearly $1 million in funding[6][10].
• In May 2018, Smartivity Labs secured $2 million in a pre-Series A funding round from investors including Ashish Kacholia and existing investors like S Chand Group, AdvantEdge Founders, and Ant Space[7].
• The total funding raised by the company through three rounds is $3 million[10].
• The investment rounds have been used to strengthen product development, bolster manufacturing capabilities, and launch innovative brand awareness initiatives[7].
• The funding has also supported the company’s expansion into new geographies and markets[6][10].

Company Strategic Partnerships

Smartivity Labs has formed several strategic partnerships that have been crucial to its growth and success. Here’s an overview of these partnerships:

Banking Collaborations

While specific details on banking collaborations are not available, the company’s financial growth suggests strong financial management and possibly partnerships with financial institutions.

Here are some general points on how such collaborations could benefit the company:

• Access to financing options can help in expanding operations and meeting growing demand[8].
• Partnerships with banks can facilitate smoother transactions and better financial management[8].
• Financial institutions can provide advisory services that help in making informed business decisions[8].
• Collaborations can also help in managing risks and ensuring financial stability[8].
• Banks can offer specialized services like trade finance, which is crucial for export-oriented businesses like Smartivity Labs[8].

Merchant Partnerships

Smartivity Labs has established strong partnerships with retail merchants, which have been instrumental in its market success. Here are some details:

• The company has partnered with retail chains like Hamleys and Crossword, as well as traditional mom-and-pop toy stores. This has helped in increasing the visibility and credibility of their products[10].
• Smartivity Labs is shipping its products to retail giants like Target and Walmart in the USA and Canada, which is a significant step in expanding its market reach[6][10].
• The company’s focus on building a strong retail presence has helped in making the shopping experience for toys more hands-on and experiential[10].
• Partnerships with retailers have also helped in gathering feedback from customers, which is used to improve product design and features[6].
• The visibility and publicity provided by stores have built credibility and brand equity for Smartivity Labs[10].

Technology Alliances

Smartivity Labs has leveraged technology to enhance its products and operations. Here are some points on their technology alliances:

• The company uses augmented reality (AR) technology in its products, such as the AR-enabled coloring and jigsaw puzzle activities. This technology allows kids to scan completed coloring sheets and see interactive AR avatars[6].
• Smartivity Labs has patented its ‘Augmented Reality Colour and Texture Recognition’ technology, which is a key differentiator in the market[6].
• The company’s use of internet-connected toys and other digital tools has helped in making learning more engaging and interactive[6].
• Technology alliances have also helped in improving manufacturing capabilities and product development processes[7].
• The company’s commitment to innovation in technology has helped in staying ahead in the competitive STEM toys market[7].