'ToHands' to be retail right-hand: Hyderabad startup to make calculators

HYDERABAD: ToHands, a smart calculator that would help shopkeepers with complete book keeping in just two clicks, was incubated by T-Hub 2.0. It was founded by the founder of another T-Hub 2.0-incubated startup, ByBuy.

ToHands was launched at T-Hub on September 26. This smart-calculator would transform how anyone could maintain their accounts, said founder of ToHands, Praveen Mishra.

Here are a few excerpts from NewsTAP's exclusive interview with Praveen Mishra.

What was the idea behind ToHands and how did it take shape?

Our first startup, ByBuy, is an e-commerce platform to help small businesses come online. We were closely associated with them. Then we observed that no matter what scale the business was, they owned a calculator. The same black calculator in every store, some almost 10 years old. We realised that this needs to be changed and came up with the idea of a smart calculator, which would help them with not just calculating but also record their transactions for them.

We then developed the idea of producing the hardware and linking it with its own software. We developed a prototype using a raspberry chip, connecting it to a plastic box! We pasted a paper with a calculator design on it to test it out. Then we 3D-printed a version of it and linked it to the software. After receiving funds, we properly produced a test version of the hardware with moulds and plastic.

What features does the product have that makes it different from the conventional calculators?

It is linked to the ToHands application. Whatever is recorded on the calculator is directly stored in the app. There are two buttons – cash in and cash out, with which the debits and credits are recorded. The app also calculates profit for the shopkeeper, shows monthly growth, records every transaction date wise, can categorise online/cash/card payments and can give in-detail monetary reports. It is also available at a very affordable price of just Rs 2,999.

How much funding did you raise and what is the revenue model?

ToHands received Rs. 50 lakh funding from Startup India Seed Fund (SISF) and T-Hub. This money would be used in the production of the hardware to give out the best quality calculators.

Our major source of revenue would be the hardware. Since it is at a very affordable price, we are looking at selling 10 million pieces in the next three years. We would also be generating revenue from the app. Three months data would be available for free. However, if a shopkeeper wants premium features with detailed reports or the data of more than three months, they would be charged a subscription amount.

What are the distribution channels planned for ToHands?

We have planned out three distribution channels. The first one would be reselling, meaning we will contact Inside Sales Reps (ISRs), who are in direct contact with shop owners, and sell through them. The second would be through e-commerce – our website, Amazon, Flipkart, WhatsApp etc. Third one would be partnering with companies that work with vendors, like Vyapaar or Ninjacart and sell through them while giving them a share.

Do you have competitors in the market?

There are no competitors in the market and we didn't want any either. As and when we developed the calculator we patented the design. We want to be the only ones in the Indian market selling smart-calculators. These are being made in India. We have in-house production houses set up in Chennai and Bangalore. We want to replace all the conventional calculators that are largely made in countries like Thailand or China with our Indian calculators.

What is your major focus as a startup and what are your future plans?

We are basically a tech company, but with this we would also be expanding into hardware. Manufacturing hardware is the toughest. We are mainly focused on giving the customers a good quality product, both hardware and software wise and also the best customer service. We have a one-month return for full refund policy and a one-year warranty on the hardware. In the future, we will have OTA, which is annual updates for the apps in which customers would get a product update without having to buy a new product, just like an Android software update.

We had received seven pre-orders even when we didn't have a product. Those customers are still with us and they will be the first ones to get the product. We launched with 20 test units and will start production after the launch. Since 98 percent of our production is planned well, we are not worried on the production front. After October 18, we would start shipping the product.

Do you have an office or team that works at T-Hub?

We are three co-founders and six freelancers working on this for two years. We do not have an office at T-Hub and all of us are based out of different places, so we don't have an office anywhere else either. We all work from various parts of India and despite being freelancers the team stuck together and made it happen. I am staying in Bangalore. However, whenever I visit Hyderabad the only place I come to is T-Hub. This is like my home. T-Hub has given us opportunities and also guided us to utilise those.