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CMA Final · Entrepreneurship and Startup · Types of New Age Business

Case: Kaveri Agritech Pvt Ltd offers farmers a mobile app that sells inputs and provides advice, and it earns from both input sales and a share of the price farmers get when produce is sold through the same app to buyers. Which feature most clearly makes this a platform (multi-sided) business?

The defining feature is that the app serves two distinct groups, farmers and buyers, and each group's participation raises the value for the other, creating network effects. Single-segment selling, reliance on one supplier or a one-time licence fee does not make a business a multi-sided platform.

  1. AIt serves two distinct groups, farmers and buyers, whose participation increases the value for each otherCorrect
  2. BIt sells only to a single customer segment
  3. CIt depends on a single large supplier for all revenue
  4. DIt charges a one-time licence fee for software

Explanation

A multi-sided platform links different user groups, and each group gains from the other's presence (network effects). Here farmers and produce buyers interact on the app. A single customer segment, a single supplier dependence or a one-time licence fee does not describe this structure.

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