"EDITION 127"

Published: 8/4/2020

And its Tuesday! Vedica here with the update today. The TikTok sage is still unfolding in the US; let's see how it plays out. Diving into the updates for today, Paytm Money is testing a stockbroking and Flipkart is rolling out 'dark stores' for deliveries.

  • https://bit.ly/3i5OWxW: Paytm Money soft launches stockbroking
  • ➡️ Paytm Money, the company's wealth management arm, has soft launched a stockbroking feature within the app. The feature is currently in a closed beta and will be rolled out for all uses a few weeks from now.

    ➡️ Paytm received a nod for stockbroking services from the Securities & Exchange Board of India (SEBI) last year. Paytm Money will now compete with Zerodha, ET Money, IndMoney and India Infoline, Groww and Cube Wealth, among others. Zerodha leads the discount brokerage space (~15% of Indian retail trading volume and a customer base of over 1.5 million).

    ➡️ WhatsApp’s payments initiative has been in the pipeline for a long time now. The company began piloting payments almost two years ago by partnering with ICICI, while it awaited regulatory clearances. With 400M+ users India is one of the company’s biggest markets, and the broad assumption is that WhatsApp payments will likely see quick adoption.

    ➡️ Wealth management and trading are areas that have seen a lot of start-up activity recently. ~200 million Indians invest in mutual funds, SIPs, and stocks, and this number will increase as more people come into the "middle class' net. Paytm Money, which was launched in 2018, reportedly already has ~Rs 5,000 crore assets under its management.

    ➡️ How well the company executes though is yet to be seen. Things haven't been smooth sailing at the firm, with a lot of churn in senior leadership. The company appointed a new CEO, Varun Sridhar, just a couple of weeks ago, on the back of departures like those of Pravin Jadhav who led Paytm Money from scratch, as well as the company's CTO and Head of Operations.

    2. https://bit.ly/3i5O8Jf: Flipkart rolls out 'dark stores' for deliveries

    ➡️ Flipkart is apparently building out its logistics operations by dotting various Indian cities with "dark stores," or outlets used only for deliveries to the nearby locations. The move, it is reported, is aimed specifically to take on Reliance’s JioMart that went live in May.

    ➡️ Last week, Flipkart announced the launch of its hyperlocal services called ‘Flipkart Quick’ in parts of Bengaluru, where consumers can book a two-hour delivery of about 2,000 products like grocery, fresh items and smartphones, among other electronic items.

    ➡️ In addition to leveraging networks of Kirana stores to fulfill orders, the company has been aggressively ramping up food and grocery-specific warehousing capacity by acquiring small storage spaces - ~3,000-4,000 sq ft - inside metro cities. These will support the expansion of its food and grocery hyperlocal business into Delhi NCR, Mumbai, Pune, Chennai, Hyderabad, Kolkata, etc.

    ➡️ Covid has, of course, put massive tailwinds behind online groceries, e-commerce and deliveries. Flipkart is only one of the players along with Reliance, Amazon, Big Basket, Udaan and others to try and capitalize of these trends.

    ➡️ Just last month, Flipkart acquired Walmart India's wholesale business with reported plans to convert many of the Walmart’s Best Price outlets into fulfillment centers. The company has also asked sellers on its platform to ramp up their own warehousing and introduced a "Flipkart Alpha Lite" program. Through this, Flipkart provides technology support to its suppliers to equip them to function as Flipkart's warehousing.

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