Sumit Gwalani

As a consumer, I often wondered why I couldn't pay directly from my bank account to a merchant. With HyperUPI, this is now a reality! Merchants can now offer their users the ability to link their bank accounts and make payments with just an MPIN, all within the app. Simple, secure, and seamless. #Fintech #Payments #Innovation #HyperUPI

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📊 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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RBI Takes Bold Step: Fintech Self-Regulation Comes of Age in India The Reserve Bank of India (RBI) just dropped a bombshell for the fintech world – final guidelines for self-regulatory organizations (SROs). This is HUGE news, especially with the explosive growth of fintech in India sparking concerns about customer protection, data privacy, and cybersecurity. What's the Big Deal? Industry-Led Standards: Fintechs now have the power to create their own rulebook. This means standards tailored to the unique needs and challenges of the sector. Enhanced Transparency and Accountability: SROs will be responsible for monitoring and enforcing these standards, ensuring that everyone plays by the rules. Building Trust: By taking ownership of regulation, fintechs can build trust with customers and regulators alike. Why Now? The timing couldn't be more perfect. With the surging demand for digital payments and lending, the need for a robust regulatory framework is paramount. The RBI's move is a clear signal that they're committed to fostering innovation while safeguarding consumer interests. My Take This is a watershed moment for fintech in India. It marks a shift towards a more collaborative and proactive approach to regulation. While it's still early days, I'm optimistic about the potential impact of SROs. For fintechs: This is your chance to shape the future of your industry. Embrace this opportunity to demonstrate your commitment to responsible innovation. For consumers: This could mean better protection, more transparency, and a more vibrant fintech ecosystem. What's Next? I'm eager to see how the industry responds to these guidelines. Will multiple SROs emerge? How will they address the diverse needs of the sector? Only time will tell, but one thing's for sure: the fintech landscape in India is about to get a whole lot more interesting. #RBI #Fintech #SelfRegulation #India #Innovation #CustomerProtection #DataPrivacy #Cybersecurity #LinkedInNews BharatPe Google CRED FinTech

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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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𝐂𝐑𝐄𝐃 𝐟𝐢𝐧𝐚𝐥𝐥𝐲 𝐦𝐚𝐤𝐞𝐬 𝐁𝐫𝐞𝐚𝐝 Kunal Shah’s CRED, a startup in the credit card payments space recently shared its financials for FY24 and the numbers are very impressive. The company made 2500 crores in revenue compared to 1400 in the last year (a 66% jump). Another surprise is their 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐥𝐨𝐬𝐬𝐞s 𝐝𝐞𝐜𝐫𝐞𝐚𝐬𝐢𝐧𝐠 by 41% in a single year, now 601 crores (compared to 1024 crores in the previous year). 𝐇𝐚𝐬 𝐂𝐑𝐄𝐃 𝐭𝐚𝐤𝐞𝐧 𝐚 𝐭𝐮𝐫𝐧𝐚𝐫𝐨𝐮𝐧𝐝 𝐟𝐢𝐧𝐚𝐥𝐥𝐲? In FY20 everyone was questioning the segment of 𝐇𝐢𝐠𝐡-𝐓𝐫𝐮𝐬𝐭 𝐈𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥𝐬, CRED was losing about 720 rupees per rupee earned and the question of monetisation was huge. 𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐚𝐭 𝐂𝐑𝐄𝐃 𝐝𝐢𝐝 𝐭𝐨 𝐚𝐜𝐡𝐢𝐞𝐯𝐞 𝐭𝐡𝐢𝐬 𝐟𝐞𝐚𝐭- 𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠 𝐋𝐨𝐚𝐧𝐬 - in FY20, the High-Trust Individuals community that the startup was growing was ready to be harvested. These individuals with 𝐡𝐢𝐠𝐡 𝐜𝐫𝐞𝐝𝐢𝐭 𝐬𝐜𝐨𝐫𝐞𝐬 contributed a steady share in CRED’s inflows. The Peer-To-Peer lending doesn't cost CRED additional money but lets it take a share out of the 15000 crores mobilized on the platform. The Average Revenue Per Customer has now jumped to about 1900 rupees compared to someone like PhonePe who makes only 195 rupees out of its customers. 𝐓𝐡𝐞 𝐂𝐑𝐄𝐃 𝐆𝐚𝐫𝐚𝐠𝐞 - A platform for vehicle owners to manage their vehicles at one place, it ranges from 𝐅𝐚𝐬𝐭𝐚𝐠 𝐑𝐞𝐜𝐡𝐚𝐫𝐠𝐞𝐬 and 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐭𝐨 𝐂𝐨𝐧𝐜𝐢𝐞𝐫𝐠𝐞 𝐚𝐧𝐝 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭. Even though it started in FY23, the company has onboarded 6 Million vehicles already. 𝐂𝐮𝐭 𝐨𝐧 𝐌𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 𝐒𝐩𝐞𝐧𝐝𝐬 - CRED’s customer acquisition costs dropped by 40%, while its marketing expenses declined by 36% during the same period. The company has reported a consistent 30% Year on Year reduction in marketing spends. This might be because of a change in segment targeted through ads, we observed that it was quite common to see CRED ads with stars during the IPL season which appealed to a mass market, this has switched to increased 𝐰𝐨𝐫𝐝 𝐨𝐟 𝐦𝐨𝐮𝐭𝐡 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 between the loyal customers of the startup. All this above the fact that CRED has monetized only 1/3 of its customers implies that the startup might have 𝐜𝐫𝐚𝐜𝐤𝐞𝐝 𝐭𝐡𝐞 𝐜𝐨𝐝𝐞 𝐨𝐧 𝐩𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲, it's just a game of patience and improvement from here for CRED. Special Thanks to Dr.Rashmi Rai and Sunita kumar Post Credits: Anshul Rajpal #Cred #CreditCard #ChristUniversity #Profitability #Strategy

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Building Factorwise, modular #SCF stack for enterprises is crucial for enhancing supply chain financing (SCF) in India. Factorwise stack will be used by every enterprise not in just India across geographies 📣. Efficiency can't be ignored. Our recent focus on modularity has allowed us to communicate the utility of our product more effectively. Despite the growing recognition of #SCF, it remains underdeveloped in India, highlighting the need for serious innovation. Feedback from CFOs has validated our approach, increasing our confidence in the potential for transformation in this space. Many existing players seem to operate as "glorified DSA businesses," which adds unnecessary layers between banks and businesses. As a former banker, I have always believed that financing should be a direct relationship between the borrower and the bank. Additional layers only introduce and create new set of inefficiencies. If technology can streamline this process, then we must embrace it. Our goal is to create an SCF modular stack that empowers CFOs and businesses alike, facilitating a more efficient and effective financing ecosystem. Let’s innovate together to reshape the future of supply chain financing in India! Let's collaborate To stay tuned follow Factorwise. #SupplyChainFinancing #SCFStack #Innovation #Supplychainstack #cashflows

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National Payments Corporation Of India (NPCI)'s UPI Circle: A Simple Way to Share Your UPI With Others ⭕ Need to let someone else make payments from your UPI account? Now you can! NPCI just launched UPI Circle, a new feature that makes sharing your UPI easy and secure. I see this as a step towards programmable money with limits being set for different purposes to be added in to. Here's how UPI Circle works: You choose who can use your UPI and set spending limits. They can make payments even if they don't have their own UPI account. You stay in control and can track all transactions. UPI Circle is perfect for: Families: Easily share expenses or give kids limited spending power. Businesses: Simplify employee payments or let trusted staff make purchases. UPI Circle is making digital payments even more convenient and accessible! 🎉 Learn more here: https://lnkd.in/g_XAgXKq #UPI #UPICircle #Fintech #DigitalIndia #Innovation #Payments #Cashless #SharingEconomy PS: Co-Author #GeminiPro

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CHANNELIAM FUNDING TRACKER RECENT UPDATES: 1. #Wealthtech startup Dezerv raises $32 Mn in Series B 2. GOAT Brand Labs raises $21 Mn in debt and equity 3. Felicity Games raises $700K from DeVC, Nandan Reddy, Kunal Shah and others 4. Qarmatek Services Private Limited raises $1 Mn in pre-Series A round 5. Centriti raises Rs 6 crore in funding round led by Emergent Ventures India 6. Prosus Group to lead $100 million funding in BlueStone 7. #Recycling startup Ricron Panels bags Series A funding from Boon Sustainability, Others

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CredFlow founder Kunal Aggarwal achieved a major milestone by securing $3.7 million in pre-Series B funding from Inflexor Ventures. This strategic investment brings CredFlow’s total funding to over $13 million, following $9.2 million raised in earlier rounds. Read about how CredFlow is revolutionizing SME's finances: https://lnkd.in/ebv7N7m3 #CredFlow #Funding #Investment #EntrepreneurshipStudio

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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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