Sagar Khetiya

📊 Is pricing the answer to fragmenting the UPI App market? 📊 📈💡NPCI has extended the 30% market cap deadline because the top 3 UPI apps have ~92% market share. Phonepe, Paytm & Gpay capitalized on the early mover advantage. New apps don’t have incentives to compete for UPI volumes because it is a “free product.” And while this was why it grew, it has now also hindered entry of new players ✅ Global real time payment (RTP) equivalents are usually free for the customer while merchants are charged. Ex: 🇧🇷 Pix: Merchant: 0.22 - 0.3% / txn, free for user 🇨🇭 Twint: Merchant:1.3% / txn, free for user 🇵🇱 Blik: Merchant: $0.1 - $0.75 / txn, free for user 🇸🇪 Swish: Merchant: $0.09 / txn, free for user 🇸🇬 PayNow: Merchant: 1.3% / txn, free for user 📈💡 If we want to keep RTP free for the end user, the constraint is free P2P payments. Only P2M can be charged. Is that feasible? Let’s look at the data: 📌 UPI Value (in Cr): From April ‘23 to ‘24, grew by 39.6%. P2P grew from 10L Cr to 14L Cr, at ~32% growth YoY. And P2M grew from 3.2 L Cr to 5.3 L Cr, at~65% YoY. 📌 UPI Volume (in B txn): From April ‘23 to April ‘24 UPI volume grew by 62%. P2P grew from 3.8B to 4.9B, at YoY 29%. P2M grew from 5B to 8.3B at YoY 65%. And proportionally: 📌 April ‘24 Value: Total: INR 19L Cr, P2P: 72.97%, P2M: 27.03% 📌 April ‘24 Volume: Total: 13.3B, P2P: 37.5%, P2M: 62.5% ✅ The constraint of only being able to price P2M transactions is not a blocker, P2M seems to have significant volumes. But that’s the overall P2M market: There is a big segment that falls within P2PM (unorganized merchants), that NPCI will not charge 📈💡Let’s assume that P2PM majorly consists of low value transactions of AoV less than Rs 2000. If we look at AoV > 2000 bucket of P2M transactions, this constitutes for 4.50% of txn numbers, and 68.36% of P2M txn value. ✅ So even excluding P2PM this still leaves a significant~68% of P2M monthly value or 4.5% of P2M txns that can be monetized So what’s the ideal pricing model? ❗Well, the cost of a UPI transaction is ~Rs 0.4. At 13.3B UPI txns that is a monthly cost of Rs 532 Cr. Which is Rs 6384 Cr per annum to maintain the UPI ecosystem! The pricing needs to generate atleast this much❗ 1️⃣ Option 1: Fixed fee / txn: If only AoV > Rs 2000 txns are charged, then to break-even, the fee per txn needs to be Rs 15, which is high. If ALL the P2M txns are charged, then a per txn cost of Rs 0.67 would be enough to break-even. But the P2PM merchant would be impacted 2️⃣ Option 2: % of txn value: If only AoV > Rs 2000 txns are charged, then the break-even fee is 0.15%. If the total P2M value is charged, the fee needs to be 0.10%. Seems to make more sense But even if pricing comes, while it incentivizes new apps it also incentivizes incumbents to keep their market share. Enter: the 30% UPI market share cap To read the full article and other pieces like this, click here: https://lnkd.in/gSPm49aq #fintech #UPI #NPCI

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11/13/2024 Deals Swiggy delivers 15% jump in India debut as investors bet on quick commerce November 13, 20248:51 AM GMT+1Updated 35 min ago BENGALURU, Nov 13 - SoftBank-backed Swiggy’s (SWIG.NS), shares jumped nearly 15% in their trading debut in India on Wednesday, signalling growing investor confidence in food and grocery delivery firms as shoppers increasingly go online and want fast deliveries. Swiggy’s shares bucked weakness in the broader Indian market and recorded a better performance than some analysts had predicted for the loss-making firm after its $1.4 billion IPO - the country’s second biggest this year. The stock (SWIG.NS), listed at 420 rupees ($4.98) on India’s National Stock Exchange and rose to a high of 448 rupees, giving the company a valuation of nearly $12 billion. Swiggy and its main rival Zomato are riding a wave of new shoppers in India by offering so-called “quick commerce” grocery deliveries within 10 minutes, diversifying from their main food delivery businesses. The boom in quick commerce sales has hurt supermarket revenues and forced players including Mukesh Ambani, Asia’s richest man, to [USN:L4N3LM1RO TEXT:“launch a faster delivery service”] from his retail stores in India. Swiggy’s quick commerce service Instamart has seen “explosive growth,” Anand Kripalu, its board member, said at the listing ceremony at the National Stock Exchange in Mumbai. Dutch tech investor Prosus (PRX.AS), which owns 25% of Swiggy, said on Wednesday it had made $2 billion on its investment in the company. SoftBank holds a roughly 8% stake. The listing comes as both Swiggy and Zomato face [USN:L1N3MF0DR TEXT:“antitrust scrutiny”] over potential breach of competition laws in the food delivery business and calls from retail groups that their quick commerce business be investigated for alleged [USN:L4N3LW047 TEXT:“predatory pricing”]. The Swiggy IPO was [USN:L1N3MF09O TEXT:“oversubscribed”] by more than three-fold last week, helped over the line by institutional investors rushing in with orders on the final day of the sale. Swiggy’s debut still pales in comparison with Zomato’s (ZOMT.NS), blockbuster [USN:L4N2OZ0L3 TEXT:“listing”] in 2021. Zomato shares have more than tripled since then. But while Swiggy has narrowed its annual losses, it has yet to turn a profit, whereas Zomato posted a fiscal 2024 profit after a loss the previous year. “The company’s continued losses and the challenging market conditions may temper investor enthusiasm in the long term,” Shivani Nyati, head of wealth at Swastika Investmart. Page 1 continue Managing Director and Group Chief Executive Officer of Swiggy, Sriharsha Majety and Managing Director and CEO of National Stock Exchange of India Ashishkumar Chauhan ring the bell during the listing ceremony of its Initial Public Offering (IPO) at the National Stock Exchange (NSE) in Mumbai, India, November 13, 2024.

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Here's one more theme that has played out over the past decade in India SaaS: SaaS companies that sell into India/Asia (non-China/Japan). There's been a reasonably large set of investors in India who have been default no in this category, based on perception of limited TAM and GTM challenges. However, there is reason to be optimistic for this theme (we are!). A reasonable set of companies in the ecosystem have scaled, such as MoEngage, Darwinbox, Capillary Technologies, Yellow.ai, Unicommerce , Gupshup, CRMNEXT, LeadSquared. Companies like Salesforce, SAP etc have reached multi-hundred million ARR in India. As a result, the potential scale from sales in India has grown from the $15-20mm that people used to talk about 5 years back to perhaps $50mm in India, overall $100mm-150mm in Asia. I think we'll see more companies continue to get funded here as IT demand in India/SEA deepens and local requirements (mobile, India Stack, regulations, languages) get addressed. Founders and investors will need to tune into this being a solid path to go but will take longer to get to impact than US/EU-focused companies. Some characteristics we see at India/SEA-facing software companies: * Many start out in SMB but then find scale & success selling into enterprises. India market has a ton of SMBs (10mm+), a relatively light mid-market and a significant set of large enterprises. * Products tend to have feature sprawl and design-deficit but this can be fixed. * Some large sectors that are pulling at enterprise level e.g. BFSI, multi-sector conglomerates. Early traction from digital native companies (but naturally capped market). * Natural to go to SEA & Gulf countries. Product could remain fairly similar but sales & marketing motion can be quite different. To get really large, feels like will have to end up going to US/EU markets eventually. * ~10 years to $100mm ARR, with market leadership in Asia * Gross margins start out perhaps 10-15 points lower than corresponding companies in the US/EU but trend up over time. * Most India-facing SaaS companies are starting as India Pvt. Ltd. today, compared to 5 years ago (versus US C-corp), with a view to going public in India at $50-100mm revenue level.

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Secured Lending platform launch is our effort in the direction to make PhonePe end to end destination for all loan products.

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How Sanjeev Barnwal and Vidit Aatrey Created Meesho ‌ Discover the inspiring journey of Sanjeev Barnwal and Vidit Aatrey, who transformed FashNear into Meesho, revolutionizing e-commerce in India and empowering over 13 million entrepreneurs. Their story highlights the importance of understanding core stakeholders and pivoting based on real-world insights. Swipe through to learn how Meesho became the first Indian startup to receive funding from Facebook and how their innovative approach can inspire you to tackle real problems with empathy and creativity. Stay tuned with Nilesh Dasri for such more updates #financialwealth #financialfreedom #financialplanning #debtservicing #debtcollection

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📚 𝐅𝐢𝐧𝐭𝐞𝐜𝐡 𝐑𝐞𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧📱₹📱 #PhonePe's strategic foresight and strong governance have driven a 15-20% increase in its user base, capitalizing on regulatory challenges faced by Paytm Payments Bank. CEO Sameer Nigam acknowledged the shift, stating, "If I say we won’t get any (users), you’ll call me a hypocrite, and if I say we’ll get all of them, you’ll call me an opportunist." PhonePe’s commitment to compliance with RBI regulations, such as two-factor authentication, KYC norms, and new auto-debit guidelines, highlights its leadership in India's fintech space. 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐯𝐞 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧: PhonePe is set to disrupt the app store ecosystem with the launch of the Indus Appstore on February 21, challenging Apple and Google’s dominance. 🌍 Read more!

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Sujith Nair, Beckn's WhatsApp-averse, badminton-loving chief mover and shaker, gave us a peek into the world's first # e-commerce protocol. Imagine if Colgate wanted to sell a lot of toothpaste, would it open separate exclusive stores on every street? NO! Instead, it ensures its products are available in all stores where people come to shop, and not just toothpaste. Similarly, Beckn is a way for an online business to make its products and services available on other stores (popular daily-use consumer apps) instead of setting up its own store (its own consumer app) and waiting for customers to come in droves! The Beckn Protocol underpins Open Network For Digital Commerce (ONDC) and is a universal translator for e-commerce platforms. We would normally call it the Rosetta Stone for digital services, but now we have BHASHINI 😉 . It allows disparate systems to "speak" to each other seamlessly. The Beckn Protocol has become a verb in the tech world. "Just Beckn it!" has become a common phrase among developers when discussing open-source solutions for digital commerce. In fact, we like it so much that we are using Beckn use cases as our episode artwork (instead of our normal groovy cover art) to spread the word in our own little way. Some may even argue that the yellow and black in the artwork denote open mobility networks (read taxis) 😀. The even more nerdy might catch the movie reference in the title 🎬. So, is it an app? Is it an aggregator? Is it a platform? No. It is a Super Capability - #decentralised and #open. Listen, learn and use. sujith nair | Pramod Varma | Sanjay Purohit | Shankar Maruwada | Shireesh Joshi | T Koshy | Namma Yatri | FIDE | Antler | Bingepods (Ideabrew Studios) | OpenExO | Thinkers360 | IBM Alumni | Microsoft Alumni Network | The RSA (The royal society for arts, manufactures and commerce) | World Economic Forum | Digital India Corporation | nasscom | Abhishek Singh | Nilesh | Sheetal https://lnkd.in/dydrjnbU

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The Indian Gen AI prosumer, consumer landscape still remains early – Companies have hit power users but are subscale OR have low % of paying users  • Companies do not have enough cohort level data to indicate product love  • Most cos who have managed to cross few hundred thousand users (MAU) are building their US GTM machine  • They have a rudimentary hallucination check AND a rudimentary RLHF in place We at Chiratae ventures are keen to look at – 1) Vernacular AI assistants - Sarvam, Krutrim are foundational model (Sarvam – OpenHathi) based general intelligence assistants very similar to Anthromorphic or Poe, but contextualized to India. They have raised significant capital, but the space remains open still. 2) Vernacular AI search – We do not have a Perplexity, Liner for the Indian vernacular. This is a potential whitespace. We will look for a solid team, with a solid product roadmap. Product risk mitigation playbooks are being built out by investors as we speak  Some companies like Two.ai are building both assistants as well as AI enabled search platforms. 3) Co-pilots for Professional services with pre-existing spend pools which can be delivered digitally – AI generated influencers, AI based gaming, digital professionals/copilots - legal professionals, counsellors/therapists, accountants Please write in to [email protected] if you feel there is something you would like to discuss. If there are products or companies we should look at, please tag them in the chat below Chiratae Ventures Sudhir Sethi TCM Sundaram Ranjith Menon Venkatesh Peddi Anoop N Mandeep Julka, CFA Kailashnath M S, CFA Tanvi Dubey #GenerativeAI #Consumer #SaaS #Technology

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The "Final Day" Challenge Imagine today is your last in sales. How one shoukd approach it? • Every call becomes a golden opportunity • Each follow-up carries unmatched urgency • Closing deals takes on new significance Mindset to transform your performance and best way i feel as under: 1. Focus solely on high-impact activities 2. Make each conversation memorable with your associates 3. Absorb knowledge like never before 4. Build lasting relationships in moments 5. Push beyond your perceived limits I state that this isn't about working harder—it's about working with a purpose. Your challenge: Approach today as if it's your professional finale. The outcome: Unprecedented results and a legacy of excellence. I would advice you to read this and try it and do come tomorrow again on this article and share your feedback as i would like to see if my thought is inline with others. #SalesExcellence #ProfessionalGrowth #CareerMindset #revfin #ev #evempowering #digitallending #cred #emfai Source of this article from this article https://lnkd.in/gbkBDDpS

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🚨Swiggy IPO gets oversubscribed led by QIB bids Swiggy’s IPO was oversubscribed 1.07 times by the third day, driven largely by QIBs, who oversubscribed their portion 1.52 times. Retail investors subscribed to 97% of their portion, while Non-Institutional Investors (NIIs) made bids for 22% of their allocation. Swiggy's employee quota also saw strong demand, with a subscription rate of 1.38 times. Swiggy raised around Rs 5,085 crore (approx. $605 million) from anchor investors like HDFC, ICICI, SBI, and global players including Fidelity and BlackRock. by Akshita Toshniwal | #SwiggyIPO #IPO #QIB #RetailInvestors #Foodtech Read more 👇 https://lnkd.in/ggm_piMt

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Founders focusing on category-specific Quick-Commerce (QC) should note: when Myntra/Nykaa launched, Flipkart/Amazon weren't operating in those categories. Also, e-commerce players are now venturing into quick commerce. They already know which individuals in which locations order what products and at what frequencies! I see no chance for category-specific QCs. I've noticed many VCs lamenting that 70% of new founders are pitching category-focused QC ventures. These founders seem inspired by broad-QC successes (Zepto/Blinkit/Instamart) and draw parallels to e-commerce, where broad players (Flipkart/Amazon) coexist with category specialists (Myntra/Nykaa). The VCs' concerns are valid, and many founders are missing the crucial point. When Myntra/Nykaa launched, they faced no competition from major e-commerce players. These category specialists captured significant market share before broader players entered. By then, they had built unique user experiences and strong brand recall. This helped them survive and thrive. Today, every broad QC (Zepto/Blinkit/Instamart) is raising crazy capital to expand. It's unlikely they'll leave room for category-focused players to establish themselves. Unless the broad QC players mess it up big time, I fail to see how category-focused QC players will make a dent. Additionally, the entry of established e-commerce players into quick commerce (like Flipkart with Minutes) complicates things. These players have years of data on which pincodes order what products, and at what frequencies. They are aware that you place an order for Vim liquid every month and a laptop every three years. You can also be confident that they will aggressively defend their key categories, such as electronics. New category-focused QC ventures will face significant challenges in competing with them. D2Cs (Mamaearth/Licious/Akshayakalpa) may succeed by targeting specific market segments that value unique attributes (organic, premium, etc.). However, they'll find it difficult to expand beyond their niche. Mass-market capture will remain a broad QC play. Thoughts?

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Today, we are excited to share our biggest investment as Antler, in India so far. At Antler, incl. our Elevate continuty fund (Fady Abdel-Nour, CFA), we're thrilled to co-lead a $11M pre Ser A in Namma Yatri, alongside Blume Ventures Karthik B. Reddy and Google In this business, a few times in your career, you come across a truly disruptive business model that challenges the way things have been done, and extremely obsessed founders creating a culture that is so unique, you have never seen it before. When that happens, despite all the things not clear, it’s a joy to jump on board that potential rocketship. That’s what we have seen in the way Namma Yatri is being built by Magizhan Selvan and Shan M S with (a) a disruptive business model in urban mobility, rethinking how to make the life of a driver better and (b) Digital Public Infrastructure (DPI) at its heart. 46 million trips have already been completed, with >7 million registered users. For us, this is also a continuation of our commitment to investing in a future on DPI / Beckn / ONDC, started in 2022. h/t Susmit Patodia. Rajiv Srivatsa Magnus Grimeland Martell Hardenberg Teddy Himler Keerat Singh Sethi Vimal Kumar Sheetal Lalwani T Koshy sujith nair Pramod Varma

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India's mobile payments market has been dominated by foreign companies like Google Pay and PhonePe, but recent news suggests that the government plans to curb their dominance. It's no secret that India has the talent and resources to build comparable mobile payment technologies, so why do these foreign companies continue to dominate? According to some, the issue lies with policy makers and structural challenges. However, there are young entrepreneurs like Sahgal Yadav who are up for the challenge. I had the pleasure of meeting him four months ago, and he shared his vision for building LESS PAY, a SAAS and mobile payment technology . The only challenge he faces is relevant capital. It's time for India to invest in its own talent and resources and support the growth of domestic mobile payment technologies. With the right support, entrepreneurs like Sahgal Yadav can build world-class solutions that benefit the country's economy and people. #India #MobilePayments #Entrepreneurship #DomesticTalent #LessPay

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Sachet financial services embedded in merchant checkout journeys can democratize financial products and spur a consumption-led economy. Needless to say all this can happen only if there is a strong foundation of governance and risk management frameworks. Keen to hear others' thoughts on this topic.

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Zepto raises $665 million at a $3.6 billion valuation. Here's why this raise is exciting for the Qcommerce space and startup ecosystem: Zepto's repeated fundraising success is impressive. > Pioneered the 10-minute commerce game. > Reached $1 billion GMV in under 2 years. > Founders are among the youngest in the startup world. > Built an exceptional team quickly. > Raised significant funds despite strong competition from Swiggy, Blinkit, BBNow, and others. > India is leading in aggressive Qcommerce growth. Reflecting on my TinyOwl days in the early FoodTech space, competition was fierce, and investors were cautious. However, things are different now: > Markets have scaled, unlocking multi-billion dollar opportunities. > IPOs are now viable, even for third or fourth ranked players with strong financials. Investors may feel relieved, but the Qcommerce space will remain highly competitive for the next few years. Consumers, meanwhile, are spoiled for choice. Interesting times ahead.

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CLSA published a detailed research report on India quick commerce. Recommended reading. Who will be the first to create a $50-100Bn company in India internet? #Zepto #Zomato #IndiaInternet

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