“EDITION 50”

Published: 6/5/2020

“EDITION 50”

And another week done and dusted!

Also this is the 50th edition of the newsletter, and just wanted to thank everyone (old subs and new alike) for taking a chance on this and giving me great feedback as always.

Today was a busy day for announcements with multiple companies raising $20M+ rounds (also just want to mention that Lightspeed has been in some big news this week- $4B across 3 new funds, a series A in Setu and now a Series B in Yellow Messenger)

Coming to the days news, Paytm Payments Bank (PPB) has partnered with another global payments company and I delve a bit into that, and NoBroker raises a new round.

  • https://bit.ly/2z38vp7 (YourStory): PPB partners with MasterCard to issue debit cards
  • ➡️ In some interesting news, PPB has announced a partnership with MasterCard to issue digital + physical MasterCard debit cards. This news comes after PPB announced a similar partnership with Visa about a month ago.

    ➡️ So what’s with the partnerships? I think it is possibly because currently all their debit cards (virtual + physical) are issued on the Rupay network. And with MDR and Interchange fees getting struck down to zero, it might make more sense to issue cards on networks there the economics are more viable. Plus this might let their users make International transactions and use their cards in other countries where they could possibly make more money.

    ➡️ I also found some interesting statistics on the RBI website. PPB has already issued 57M debit cards (as of Jan 2020), and has issued more debit cards than any other bank other than bank other than SBI. Roughly 19% of Paytm’s wallet users have a PPB account and debit card, which seems like a pretty high rate.

    ➡️ On the other hand, PPB’s cards aren’t used very much compared to other bank-issued cards. PPB issued debit cards made 0.1 transactions (ATM + POS) in January aka 1 in 10 users made a transaction, whereas non-PPB issued debit cards made 1.47 transactions (ATM + POS) in January.

    ➡️ This is probably a good move for PPB which aims to issue an additional 10M cards in the next year. It shall be interesting to see how this plays out in the long term and if the bank can cross-sell and up-sell users into other products.

  • https://bit.ly/34Ki8oM (Inc42): NoBroker raises $30M from General Atlantic
  • ➡️ NoBroker, the online rental marketplace company, has announced an addition $30M from Genera Atlantic bringing their Series D round to $80M.

    ➡️ The company is likely to put this money in expanding their marketplace and NoBrokerHood (its society management platform), which has been bolstered by the acquisition of Society Connect (which I talked about in Feb)

    ➡️ I have a slight inkling that this additional funding has to do with the current pandemic. In the current climate, the amount of people renting new properties is grinding to a halt (thought their NoBrokerHood product is as important as ever).

    ➡️ I had this thesis a couple months ago that companies like NoBrokerHood & MyGate could play a pivotal role in contact tracing individuals with COVID.

    ➡️The company has seen great traction in recent years with over 3.5M properties registered on the platform and over 8.5M people who have used NoBroker services.

    ➡️The real estate sector is poised to grow very significantly in next decade, and I would bet platforms like NoBroker will grow with it.

    Feedback & ❤️ always appreciated

    More on Monday :) BONUS (Tweet of the day): https://twitter.com/gonsalves_r/status/1250702589324193794