"EDITION 98"

Published: 6/24/2020

Good Morning! It's Wednesday and we have a lot to cover today. First up we've got a new EdTech company that has raised some capital from an interesting investor, and BharatPe enters the POS business with a competitive plan.

  • https://bit.ly/2VcicK5: Vedantu invests $2M in Instasolv
  • ➡️ As the EdTech space continues to be hot, Instasolv (a doubt clearing platform) has raised $2M from the live online tutoring platform Vedantu, and interestingly gives Vedantu the rights to acquire the startup.

    ➡️ This seems to be a pretty good strategic investment for Vedantu as they look to expand in Tier 3/4 cities (where Instasolv is popular), along with strengthening their doubt-solving capabilities.

    ➡️ Instasolv also runs a successful ed-tech platform, askIITians, which has an expertise in the doubt solving segment of online education. The platform solves 3M questions ever month, uses OCR to extract text from images & uses AI to match questions with answers in its ever expanding database to show students answers quickly.

    ➡️ With the pandemic shifting how students learn (with more students having to resort to online platforms), Instasolv and Vedantu have seen tremendous growth in recent months and this strategic partnership & investment (& a potential future acquisition) seems to be beneficial to both parties involved.

    2. https://bit.ly/2NozX4H: BharatPe enters the PoS business

    ➡️ The QR-based payments company BharatPe is entering the Point of Sale business, which has a long list of incumbents- Pine Labs, Mswipe, Innoviti, Jio, PhonePe and Paytm.

    ➡️ The company has priced their product very competitive, and by that I mean they will be a 0% MDR and the company won't charge anything for the rental of the device. This will likely give them a good chance to compete with the incumbents who might have to look into cutting rates & fees themselves.

    ➡️ So how does BharatPe make money then? Well merchants won't have access to the money they process for 15 days, which will be placed in an escrow account. The company will then earn interest on that float money which will substitute for the MDR revenue (h/t The Ken's BFO for this).

    ➡️ The PoS machines have already been deployed at over 1000 locations and it will be interesting to see how the landscape of PoS machines plays out as India continues to move to digital payments.

    Feedback & ❤️ always appreciated

    More tomorrow :) BONUS (Tweet of the day): https://twitter.com/shobhitic/status/1275634887215575040

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