State of Mobile Wallets / Payments in India

Mobile Wallets in IndiaPayTM, Mobikwik and Freecharge (owned by Snapdeal) are the biggest independent online wallet companies in India with claimed registered wallets of 120mn/25mn and 20mn respectively. Apart from them some telecom companies (Vodafone, Airtel, Idea ) and banks (SBI, ICICI, HDFC etc.) have their own online wallet services. The online wallet was initially developed as a means of enabling mobile recharges for consumers, which was subsequently, expanded to PayTV and utility bill payment services.

Some of the wallets companies like PayTM, telco and banking wallets etc have received (more…)

Can Just Dial Reverse Slowing Network Effect with Omni / Search Plus Launch ?

Just Dial Slowing Sales - Omni SME LaunchJust Dial’s revenue growth for Core Search business has decelerated meaningfully over the last few quarters. While growth may have bottomed out, the initiatives taken by the management will take a few quarters to yield results, in our view. Management reiterated that the slowdown in revenue growth was not led by any increase in competitive activity, but due to a lesser focus internally on the search business. It plans to add 2,000-2,500 people to its sales team (both tele-sales and “feet on street”) over the next 9-10 months, which should address the issue of growth.

The total listings on Just Dial platform is ~16mn and it has the potential to move up to 20-25mn. It is planning to start a program of (more…)

StayZilla Vs Zo Rooms – Hotels & Alternative Stay Aggregators

StayZillaStayzilla is an aggregator of hotels and alternative accommodation on the Mobile App & Web. The company’s focus is to build supply, which it believes is the most difficult issue to resolve. It believes that there is enough pent-up demand to fill in any supply that will come online. Traffic on the platform also depends more on having inventory across a wider geographical coverage (number of towns/cities) rather than deeper coverage (more hotels within a geographical area).

Importance of supply can be seen from the fact that the company believes that the property owners are customers rather than those booking the hotel. Further, Stayzilla doesn’t believe that hotel owners / operators need technology for booking as is (more…)

Online Food ordering – Zomato Ups the Ante on Tiny Owl & FoodPanda

Online Food Ordering IndiaZomato launched online ordering, a significant revenue opportunity. Zomato recently launched its food ordering service in India. The service is currently live across 9,000 restaurants in 7 cities. In addition to the main app, It has also launched ‘Zomato Order‘ exclusively for online ordering. Online payment option is not available yet; Zomato Wallet is shown as ‘Coming Soon’. As of now, it is not doing any delivery in-house and is relying only on delivery by restaurants. Restaurants pay commissions of 7.5% to 15% per order – the rate varies based on the delivery rating provided by the user. Online ordering could be a significant revenue opportunity for Zomato; assuming 20-30k orders per day, average order size of Rs400 and 10% commission, revenues could total Rs300-450mn vs. Rs450mn of advertising revenues earned in India in FY15.

Foodpanda and TinyOwl are two key online food ordering services in India Foodpanda currently handles (more…)

Mobile Money Fragmentation (Telcos / Banks) Breaks Mass Market

Mobile Money FragmentationIn a world where each nation uses its own currency which could not be exchanged, global commerce would stall. But if one or even two currencies were introduced, which were accepted globally, international commerce could resume.

Using this analogy, we argue that fragmented industries (Telecom Companies / Banks) fundamentally cannot successfully launch global m-payment systems as by definition they are too regional. If consumers want to make a purchase or transfer through a mobile, they don’t want to discover their m-payment mechanism isn’t compatible. Therefore, we believe that a sustainable, long-term m-payment application will require a critical mass comparable to the number of iPhone (600m) or Android (1.9bn) users and consequently (more…)

Mobile Powers Chinese Rural e-Commerce

Mobile Commerce Rural ChinaAccording to research recently released by bjbusiness, roughly 64% of netizens in rural China shop via mobile phone, far in excess of those who shop by PC (~36%). In many of China’s less developed markets, the smart phone is indeed the key gateway to internet access rather than the PC due to the lower device cost when compared with the PC. E-commerce penetration in rural areas has risen substantially, as key e-commerce players such as Alibaba and JD shift their strategic focus from top-tier cities to rural areas. Mobile usage meanwhile has come to embrace online shopping quite rapidly and seamlessly.

Roughly 74% of rural netizens indicate Taobao and Tmall as their most frequently visited e-commerce sites, while (more…)

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