"EDITION 80"

Published: 6/5/2020

Yet another week comes to a close (with no confirmed Jio investments this week yet). We do however have another entity, Abu Dhabi's Mubadala Investment Company, which is reportedly in talks with Jio to invest $1B in the company. I also saw an interesting tweet that says if the Microsoft & Mubadala deals go through, Jio would've raised more money (in 6-7 weeks) than the entire Indian startup industry in 2019 (wow! https://twitter.com/tejeshwi_sharma/status/1266196581142810624)

Today we have news that I scooped (by lurking on twitter) before any of the news sites and Kerala's unique alcohol queueing solution.

  • https://bit.ly/3de7oSW: Cult starts charging for live classes
  • ➡️ I came across a tweet today from a Cult user who received a notification from the app that he had been enrolled in a 14 day trial on the app. And I further did a little digging to find out that the company is turning the live fitness product into a paid subscription.

    ➡️ The company's live membership offerings will bundle live & recorded fitness classes along with dance, meditation and cooking(?) classes. And all of Cult's celebrity masterclasses will be available to paid members- https://www.cure.fit/livefitnessbrowsepage ➡️ The pricing also seems very reasonable, the company has three different subscription plans (3, 6, and 12 months) and the price comes out to ₹241 (12 mon) - ₹399 (3 mon). With a yearly subscription, users would be paying <₹10/day which honestly seems like a great deal!

    ➡️ The company had recently hit 1M Daily Active Users on the live product, so it's quite evident that the product is very popular. Assuming a 10% DAU/MAU ratio (10M MAU) and a 1% free-to-paid conversion rate (100k) would mean the company would be generating $396k in MRR (Annualized to $4.75M)

    ➡️ That is quite phenomenal for a product that is only a couple months old, and could potentially help Cult lean further into an asset-light model (especially in smaller cities where it might not make as much sense to open physical locations).

    ➡️ The current product is also priced quite conservatively (and I could see it going up), but it also leaves some space for Cult to do a premium live product (virtual personal training) which they have been doing at a smaller scale already. ➡️ I can see them creating a powerful funnel that could turn Cult Live into a huge product: Make the celebrity masterclasses free to drive users to cult → free (14-day) membership to cult.live with x% conversion → free virtual private training session with y% conversion.

    2. https://bit.ly/2ZMcrGj: Kerala launches an app to queue at liquor stores

    ➡️ The state of Kerala has launched an app called BevQ to curb crowding at liquor stores in the state and promote social distancing. The app has already been downloaded by 5L users on the Google Play Store within a couple of days of its launch (Indians are thirsty!).

    ➡️ The app lets consumers book queue numbers and issues tokens for them to visit liquor stores. Users enter their names, verify their phone number and then choose between wine & liquor, and they get a token with the name and details of the store. The token is then scanned at the store and the user can purchase the alcohol.

    ➡️ The app has been marred with a couple of bugs, mainly the OTP verification not working for all, which is expected in the early days and the app will certainly get more polished with time. The app also ensures that a store can entertain 400 customers a day and stores can't allow a customer to purchase more than 3L on each visit.

    ➡️ The government has further launched an SMS-esque facility to book slots & get tokens for users who have feature phones (which also makes a lot of sense). A couple other cities and states (eg: Delhi) have adopted a similar system and it sounds like maybe more states will pick up on this and online alcohol delivery.

    Feedback & ❤️ always appreciated

    More tomorrow :) BONUS (Tweet of the day): https://twitter.com/rakeebrafeek/status/1266077045093658626