
Kunal Shah: ‘Understanding humans is core to great businesses’
In this video, Kunal Shah, founder and chairman of FreeCharge, talks about the behavioural insights behind FreeCharge and how trust in people gets you the best outcomes
“In business we sell to humans, employ humans and we take money from humans—that is, the investors. Understanding humans is core to doing great businesses,” says Kunal Shah, the founder and chairman of FreeCharge. In that sense, he says studying philosophy (he has a bachelor’s degree in the subject) more than an MBA (he dropped out in the second semester) prepared him for business.
FreeCharge started with prepaid phone and bill recharge. It has now evolved into a digital payments platform that competes with segment leader Paytm. In April 2015, Snapdeal bought FreeCharge for about $400 million.
But his was not always a success story. Shah says failure is a journey of learning. “Every successful person has to go through a journey of a hundred slaps. It’s best to get them early.”
Yet a fear of failure and shame training in childhood keeps people from taking risks and trying out new ideas. Shame is a method of training kids, but the problem is, that shame associated with failure continues in later life.
Shah elaborates on the behavioural insights behind FreeCharge and how these insights helped him create a “brag-worthy” proposition. This also allowed a user habit change from offline transactions to online—without having to spend much monies.
Another human factor behind a successful brand is the employees and the ownership they assume. Shah says complete trust and empowerment will ensure your employees take ownership and give their best. “Often they only need someone to believe in them more than they do themselves,” he says.
An interesting example of demonstrating trust is, FreeCharge gave out an Apple Macbook with the offer letter. Shah says this was a small cost for bringing in ethical people. It served as an early litmus test for getting the right people. “When you show trust so early in the game, they come in with a different mindset,” he says.
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Rajesh Srivastava
Corporate Veteran, Thought Leader | Educator & Bestselling Author
Rajesh Srivastava earned his engineering degree from the Indian Institute of Technology, in Kanpur, and studied management at the Indian Institute of Management, in Bangalore. He has over three decades of experience creating value in fields as diverse as the alcoholic beverage industry, food and commodities, personal care, lifestyle industries, education & publishing. He has conceptualised, launched, and nurtured over fifty products which enrich the lives of Indian consumers’ every day. Brands he has promoted include Bagpiper, McDowell Signature, Royal Challenge, Blue Riband, Blue Riband Duet, Captain Cook, Park Avenue Personal Care Products.
In 2002, he was named President of J. K. Helene Curtis Ltd, a Raymond Group Company. Over the next three years, he steered it to a 33% revenue growth (CGR) and doubled profits, despite operating at a time when the FMCG industry was recording a near-flat growth.
Mr. Srivastava also writes for journals and appears in broadcast media on topics of market analysis and trend recognition. His articles and columns have been published in Mint, Telegraph, Outlook, Mid-Day. He has also been interviewed as a business and marketing analyst on BBC World, Aaj Tak, and CNBC.
He has been invited as a keynote speaker, by premier schools, business schools, hospitals and corporates such as IIM Calcutta, IIM Bangalore, IIM Sambalpur, IIM Nagpur, IE Business School, Spain, Jamna Bai Narsee International School, Mumbai, Tata Memorial Hospital, Mumbai, Godrej & Boyce, Tata Telecom, Indian Oil Corporation, ICICI Bank, Crompton Greaves, Alstom India, Marico’s Ascent Foundation, AGC Networks Limited, Valmont Corporations, Hindustan Petroleum Corporation Limited, S&P Global, BSH Home Appliances and John Deere.
He has also been conducting customised workshops for many of the finest corporates including Mercedes Benz, Siemens India, Reliance Industries Ltd., Citibank, and Credit Suisse.
In 2011, he was named the Chief Operating Officer of S. P. Jain School of Global Management - Dubai, Singapore, and Sydney. He has been awarded the Best Professor Award for two consecutive years - 2009 & 2010. He also served as Adjunct Faculty at IIM Indore between 2008 to 2015.
He practises as an Independent Consultant and coaches CEOs.
Penguin Random House has published his two books, ‘The New Rules of Business’ & ‘The 10 New Life-Changing Skills’. Both have become national bestsellers.
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