"EDITION 78"

Published: 6/5/2020

Yet another morning and hope y'all are staying safe from all the locusts (I kid I kid). I have some personal news to start off the day, today was my first day of not working since I graduated college ~2 years ago. So expect a lot more content and side projects in the next couple of weeks, I'm currently writing a piece on India's most "HYPE" company CRED so be sure to subscribe to hind.subtack.com if you want to read me trying to decipher Kunal Shah's vision. Also want to point out a small correction from yesterday's newsletter where I misspelt Ather as Aether. Super sorry about that and I shall be more mindful in the future.

Coming to the day's news, we have some "unbundling" at Ola & Pepsi tries DTC in India 1. https://bit.ly/2ZAHrJg: Pepsi launches online delivery through Dunzo ➡️ Today's story involves a company who's mission I'm a huge fan of (and partially because I was involved in a similar company in the US), but Pepsi will start selling products of its brands (Lays, Kurkure, Doritos & Quaker) directly on Dunzo to consumers in Bangalore (and later in Delhi, Mumbai & Jairpur). ➡️ Pepsi has previously made a DTC push in the US earlier this month by launching snacks.com & PantryShop.com where consumers can buy products from Pepsi's brands and get them delivered to their house within 2-3 days.

➡️ Now Indian consumers will be able to open Dunzo, view Pepsi's brands on Dunzo and purchase items to be delivered on-demand. Pepsi Sr Director of Marketing says that consumers will have access to their products in a safe & contactless manner through the partnership. ➡️ Interestingly it seems like Bisleri (and Coke? I saw Coke's store on Dunzo's app) have also partnered with Dunzo to deliver their products directly to consumers, cutting out the retailers. ➡️ I have long thought that it would make sense for brands to tie up with Dunzo to deliver products (though I personally was thinking from the vantage point of high-end brands after seeing how Postmates' partnership with Apple helped both parties tremendously) ➡️ This is also an interesting time for Dunzo where they definitely have found huge consumer love for their product, despite being in a space where the incumbents are very large. It seems like COVID hasn't impacted the company as much as others, so it will be interesting which direction Dunzo goes in the post-pandemic India.

2. https://bit.ly/2AfOfkE: Ola Financial Services raises ₹205.6 Cr in a Series A

➡️ Ola has now "unbundled" another company from the main entity. The company had earlier spun off Ola Electric & Food last year, they similarly did so with Ola Financial Services (FS). And now Ola FS has raised a ₹205.6 Cr Series A round from Matrix Partners, Falcon Edge among others. ➡️ Ola isn't the first company to "hive" off a company as Flipkart & Paytm have previously done so with PhonePe & Paytm Mall respectively. Ola Financial Services includes financial services (duh!) offered to it's consumers (riders) and partners (drivers).

➡️ Ola consumer offerings are probably better known, with their wallet product probably being most well known (their first financial product I believe). Ola also has a postpaid product (buy now, pay later) as well as a branded Credit Card (in a partnership with SBI), while the company also provides vehicle financing for driver partners & helps with loan financing, vehicle and life insurance. ➡️ The fintech space in India has certainly been very hot recently so maybe this separation + new funding will help Ola FS build out more financial products (a neobank for gig-economy drivers?)

Feedback & ❤️ always appreciated

More tomorrow :) BONUS (Tweet of the day): https://twitter.com/andrew__reed/status/1265418401247195136