Spice Money: Industry Monitoring 15 March 2019
- Priyanka Kanodia
- Mar 18, 2019
- 6 min read
Spice Money
Competitors
PayNearby Has Covered 16,722 Pin Codes In India Distributing Their Services Through 4 Lakh Retailers
Publication- Business World
Edition- Online
Date- 15 March, 2019
In an interview with BW Businessworld, Anand Kumar Bajaj, Founder & CEO, PayNearby discusses the opportunities in exploring rural India which is now going mobile-friendly. Financial institutions across the country, along with PayNearby, are focusing on delivering digital services to a large part of the nation.
What according to you are the biggest challenges for the retailers in India, especially post demonetization?
From our research and understanding of ground during and post demonetization, we understand the retail is evolving and retailers are catching up. The problem of cash availability and convenience of digital payments, enabled many consumers to start ordering to online / eCom players, thereby damaging the business flows of the mom-and-pop kirana shops. The situation has two elements to it. First is the capability to digitally service customers through online platforms providing the convenience of placing an order from Apps, getting AI-based recommendations, prices, offers, and delivery experience? Second is the mindset to adopt technology in the changing times. When we polled retailers during our research, we were delighted to get corroboration of the fact that the community is intelligent and sees value in upgrading with times. The fact that they are there to do business, they were able to see the point we made to enhance their business.
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En route to an IPO, Ebix puts in a bid to buy Yatra
Publication- Medianama
Edition- Online
Date- 15 March, 2019
US software company Ebix has offered to acquire 100% of the outstanding stock of travel company Yatra Online. Ebix, which provides software services for financial, healthcare, and insurance companies, intends to merge Yatra with its Indian EbixCash subsidiary. Ebix’s offer (made on March 11) for Yatra’s purchase stands at $7 per share, which is a premium of 84% on Yatra’s closing share price of $3.80 on March 8. Ebix will take on Yatra’s receivables, cash and restricted cash worth at least $25 million. It has given Yatra’s board until 18th March to accept the offer after which it can withdraw the offer. Ebix has acquired other travel companies including travel aggregator Via, SaaS travel company Zillous Solutions, luxury travel companies Mercury (in Mumbai) and Leisure Corp (in Delhi). Ever since its entry in the Indian market in May 2017, Ebix has, in rapid succession, acquired at least a dozen companies across remittance, travel, forex, and education.
Why is Ebix interested in Yatra?
Number two wants to become number one: In its last financial earnings call, Ebix India said that the company is “second today in B2B/consumer/retail markets behind NASDAQ-listed Yatra today, and we are focused on being number one by the end of the year.” One way of achieving this is by acquiring Yatra. The company said on the call that “India’s travel markets are growing at the rate of 27% to 30% annually and it is important that we take a leading position in this market.”
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Industry News
Innoviti Payments raises Rs 80 cr
Publication- The Economic Times
Edition- Online
Date- 15 March, 2019
Point-of- sales deploying company Innoviti Payments Solution has raised Rs80 crore in debt financing from Trifecta Capital and a clutch of nonbanking finance companies. The Bengaluru based firm, which processes card payments for retailers, plans to use the funds to expand operations, strengthen the platform to ensure smooth card payments and onboard fresh talent.
“We have got a mix of venture debt and term loans, Trifecta has put in around Rs30 crore, while the rest Rs50 crore has come from NBFCs,” said Rajeev Agrawal, chief executive officer, Innoviti Payments.
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New India: Transforming the digital dream to reality
Publication- Deccan Chronicle
Edition- Online
Date- 15 March, 2019
Government’s vision of a digitally empowered and technologically strong India has seen the country make rapid advancements in the last 5 years. The value of E-government is increasingly being defined by its contribution to the development for all using benchmarks such as citizen-centricity, inclusiveness, connected government, universal access, and use of new technologies. From widespread use of digital platforms to extend the benefits of welfare schemes, the country has witnessed change heretofore unseen.
The Digital India campaign is a robust example of efforts to fast track citizens’ access to government services and welfare schemes through improved online infrastructure and enhanced internet connectivity. The National Digital Communications Policy 2018 is a key pivot of the Digital India campaign. The policy aims to enable the creation of digital infrastructure and services that are increasingly emerging as key enablers and critical determinants of a country’s growth and well-being. Universal broadband connectivity at 50 Mbps to every citizen and 1 Gbps connectivity to all gram panchayats by 2020 figure at the top of the government’s agenda.
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Smartphone App-Based Startup Branch Set To Operate In India
Publication- Business World
Edition- Online
Date- 15 March, 2019
San Francisco-based startup Branch International, a mobile app-based lender with operations in Africa and Latin America, launched in India this month. Branch offers customers personal loans from Rs 500 to Rs 50,000 through its Android app and is one of the first recipients of the Reserve Bank of India’s (RBI’s) mobile-only Non-Banking Financial Company (NBFC) license in India. Branch International has witnessed 3X growth year-over-year globally. The company’s steady growth has attracted leading Silicon Valley investment firms like Andreessen Horowitz and Trinity Ventures to invest over $80 million USD, enabling Branch to expand its financial offerings to more countries.
In India, Branch is using mobile technology to break through demographic and geographical barriers to reach first-time borrowers. While most lenders require salary slips, bank account statements, and CIBIL scores, Branch does away with these burdensome requirements for a simpler experience and direct access to financing. By relying solely on the data from a user’s mobile device, Branch is able to tap into an underserved market, including those who are self-employed or part of the informal sector, yet very creditworthy. The company uses machine learning algorithms to analyze thousands of data points to determine the creditworthiness of a user and offer a loan in minutes.
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Fintech needs a strong identity
Publication- India Today
Edition- Online
Date- 15 March, 2019
Many transactions do not need to establish the identity of involved parties. In fact, some may even demand anonymity. However, establishing identities is necessary for delivering and accessing most financial products and services. For the execution of several financial transactions with information requirements about involved parties - age or permanent address - systems have to be in place to ascertain the veracity of available information. Current identity systems limit innovation as well as efficient and secure delivery of financial services. Many fintech firms attempt to provide a purely digital experience to their customers, but the step of identifying customers invariably forces them to use physical channels.
In September 2018, the Supreme Court upheld the constitutional validity and legitimacy of the Aadhaar programme but diluted the mandatory and pervasive nature of the largest biometric-linked national ID system in the world. While Aadhaar can be linked with the delivery of benefits and services under government-aided welfare schemes, the use of Aadhaar details by private companies was declared unconstitutional unless a privatised use has clear sanction of law and passes judicial scrutiny.
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Payment Firm mSwipe Raises $31 Mn from Falcon Edge, B Capital Asia, Epiq Capital and DSG Consumer Partners
Publication- Indian Web 2
Edition- Online
Date- 15 March, 2019
Mumbai-based payments startup MSwipe Technologies has raised Rs 219.8 crore in a new round of funding from US-based hedge fund Falcon Edge, Facebook Co-founder Eduardo Saverin’s B Capital Asia, late-stage technology investment firm Epiq Capital and consumer-focused fund DSG Consumer Partners, according to filings with the Registrar of Companies (RoC). According to the filings, B Capital Asia invested close to Rs 69.99 crore, followed by DSG Consumer Partners, who invested Rs 20.91 crore. The filings revealed that Epiq Capital put in Rs 36.17 crore, Epiq Capital B invested Rs 34.99 crore, and Falcon Edge put in Rs 56.91 crore, in this round.
The fresh funding comes within a year after the company raised undisclosed amount from Epiq Capital in August last year. Prior to this, mSwipe raised $41 million in Series D round, in 2017, from investors, including UC-RNT fund, a joint venture between Ratan Tata’s RNT Associates and the University of California, Matrix Partners India; and existing investors Falcon Edge Capital, DSG Consumer Partners, and Eduardo Saverin’s B Capital Asia.
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