"EDITION 91"

Published: 6/15/2020

Happy Monday folks! Vedica here with the updates today. Spent most of my weekend sleeping to recover from a manic, sleepless week, so feel almost human again! Some interesting news today: Anmol's favorite company, Paytm is seeing yet another round of executive exits, and Udaan is moving into B2C. (Anmol here, we both know OYO is my favorite company)

  • https://bit.ly/2MWo4CG: Two more senior execs quit Paytm
  • ➡️ Puneet Jain, Senior VP for Paytm's online payment business lead and Siddharth Pandey, Vice President of Paytm First, the company's premium subscription-based rewards and loyalty program, are reported to have quit the company.

    ➡️ By all accounts, Jain's departure, in particular, will be a big loss to the company. He had P&L responsibility for the payments business and oversaw everything from sales and marketing to operations for the business.

    ➡️ This is just the latest string of departures of senior execs from Paytm. Paytm Mall’s Chief Financial Officer Rudra Dalmia left the firm in March and Paytm Money’s CEO Pravin Jadhav left in April. These departures raise a lot of red flags, especially in light of the company's declining market share.

    ➡️ Inc42 recently reported that even as people are leaving, the company has been on a hiring spree trying to replace the exec talent. We all know, however, that churn at that level presents real challenges, especially since Paytm is trying to get back on track after losing market share to the likes of Google and Phone Pe.

    ➡️ I'm honestly a little concerned about Paytm- mounting fraud, adjacent business going nowhere, key execs leaving the company and losing marketshare to Google & Flipkart on the payments business. The future doesn't look terribly bright for them (with the Payments Bank being a rare ray of sunshine for the company).

    2. https://bit.ly/2B50TUm: Udaan is experimenting with B2C via a new app Pickily

    ➡️ B2B e-commerce company Udaan is experimenting with an expansion to B2C through a new app called Pickily. The app is in live beta on the Android Play Store (with some ~1,000 downloads) and currently offers FMCG products across five locations in Bengaluru. A full-fledged launch is apparently in the works for July.

    ➡️ The food and grocery verticals of Udaan seem to be focused on building out Pickily at the moment. To facilitate quick order fulfillment, the company has been building a network of dark stores in Bengaluru and Hyderabad.

    ➡️ The move to B2C is interesting given the pedigree of the Udaan founders, Sujeet Kumar, Vaibhav Gupta and Amod Malviya, who bring e-commerce and Flipkart experience with them. It also makes some sense since the company's core B2B business has reportedly seen a 70% contraction since the Covid pandemic forced the country to shut down.

    ➡️ However, B2C in India is not an easy ride. B2C is a low margin business and Pickily will have to compete with more established players like Flipkart, Amazon, Swiggy, Dunzo, BigBasket, etc. Added to that are the unsteady and constantly changing regulations that characterize the e-commerce landscape in the country.

    ➡️ It will be interesting to see how Pickily fares. If the company is able to execute well then it could potentially steal share from some of the bigger players who have been found wanting during the shutdown. That, however, is a big if.

    Feedback & ❤️ always appreciated

    More tomorrow :) BONUS (Tweet of the day): https://twitter.com/chetanp/status/1272235956137897984

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