"EDITION 177"

Published: 10/16/2020

Good morning, it's Friday and I'm kinda ready for the weekend. Today we have news that OkCredit might be exploring M&A opportunities and the Indian eCommerce companies are gearing up for the big online sales during the festive season.

  • https://bit.ly/2SVKxTw: OkCredit explores M&A opportunities
  • ➡️ In somewhat surprising news, OkCredit- the digital bookkeeping app has started to explore merger and acquisition opportunities. It has allegedly has had talks with Khatabook, BharatPe and Udaan already.

    ➡️ The YC & Lightspeed backed company had previously raised their Series B just in September last year and still has runway for over a year & a half. OkCredit was certainly the first popular bookkeeping app in the country but it has fallen behind Khatabook in recent times.

    ➡️ Comparing the monthly/weekly/daily users between the apps (and their online dukaan apps MyStore & OkStore), Khatabook certainly is in the lead when it comes to the number of merchants who actively use the platform and is likely to continue on this trajectory.

    ➡️ It seems like OkCredit might think that raising a following round of capital might be challenging as it hasn't been able to grow as quickly as its competitor and looks at consolidation as a possible path forward. Of all the companies listed, I want to propose another name that might want to acquire OkCredit as well- Paytm.

    ➡️ I think it's quite obvious that Paytm has certainly have failed to capture the UPI marketshare with the technology itself further eroding their payments business. The saving grace of the company is that they still lead the nation in digital P2M transactions. On the flipside, they also have tens of millions of merchants on the platform and I'm honestly a little surprised that they never really built a good Khata application early on.

    ➡️ I think OkCredit might nicely fit into their merchant services business. I believe both Khatabook and OkCredit currently use a payment gateway for their payment links- but since Paytm has their own PG, they could own the E2E stack of what the merchant would use with probably a lot of future potential to building a lending business like Square Capital on top of all that merchant transaction data. If anyone has thoughts on this, I'd love to hear them & feel free to shoot this over to the Paytm Corp Dev team.

    2. https://bit.ly/31d7uGf: Flipkart and Amazon are gearing up for a busy festive season

    ➡️ It seems like it's going to be a very busy festive season for online shopping for the huge eCommerce platforms Flipkart and Amazon. The companies are certainly remote this year but employees say that the energy is just the same.

    ➡️ Flipkart's Big Billion Day sales kicks off today and it seems like Virat Kohli might be featured in the marketing of the sale (👀). Market tracker RedSeer Consulting said online sales could almost double to $7 billion during the month-long festive sales period.

    ➡️ The companies seem to have adjusted to remote work quite well especially for the prep of this holiday season with Flipkart focussing on making systems more automated and spending more time on their operating procedures.

    ➡️ And with the country still very much in a pandemic, this could be the push that eCommerce in the country needs to accelerate the digital transformation in the country.

    Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/ryan_caldbeck/status/1316730252295454720

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