"EDITION 119"

Published: 7/23/2020

Good morning, it's Thursday and I read some interesting news a couple hours ago- Flipkart (largely owned by Walmart) is acquiring Walmart India to power Flipkart's B2B business (idk what this all means but seems like Walmart India is still owned by Walmart US). In today's news we have a lot of fintech content, Cashfree continues to post profits & NCPI launches recurring payments on UPI.

  • https://bit.ly/2Bnx9CB: Payment gateway Cashfree consistently clocks profits
  • ➡️ There haven't been too many startups that have continually shown profitability, focussing on growth instead. Cashfree, the YC-backed payment gateway co, has certainly taken a contrarian path by being profitable for the last 3 years now.

    ➡️ The company started by offering a single product- payment disbursal, but has now expanded into salary disbursal, instant refunds, subscription payments, marketplace commission settlement, and more.

    ➡️ Meanwhile, the company's revenue (& profits) have been growing comfortably going from ₹7.1 Cr (₹1.4 Cr) to ₹99.43 Cr (₹19.5 Cr). The company has growth it's revenue & profits >10x in just a couple of years.

    ➡️ The company has customers in the likes of CRED, Zomato & Xiaomi and it's products are used by almost 5,000 businesses to process vendor payments, wages, loans disbursal and more.

    ➡️ Cashfree also hasn't raised huge amounts of capital (a $5.5M Series A led by Smilegate Investment last year), and continues to execute well profitably. I'm not sure what Cashfree's plans are long-term but it certainly has shown that building & growing a startup while staying profitable is possible.

    2. https://bit.ly/3ht4VWp: NPCI launches UPI AutoPay feature for recurring payments

    ➡️ In a move that will make a bunch of consumers (at least me!) and business happy, NPCI announced UPI AutoPay to enable recurring payments on top of UPI. The product is targeted towards any sorts of transactions that one might encounter on a weekly/monthly/yearly basis.

    ➡️ Customers can create an e-mandate for tx <₹2000 and tx over the amount would users to re-authenticate with their UPI PIN. This will likely help in utility payments, booking bus pass, train tickets, paying DTH subscriptions to begin with.

    ➡️ I am a little shocked that India has gone this long without a good solution to recurring payments (for many payment methods) and with the growing and fast adoption of UPI as a payment method, this will further help and bolster the ecosystem.

    ➡️ A bunch of the bigger companies (Axis Bank, Policybazaar, Razorpay, PayU India) will be the first couple of orgs to provide the option to their customers to use UPI AutoPay for recurring payments of subscriptions. (Honestly this might even let me provide a monthly subscription for Keeping Up With India so I might look into that).

    Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/utsavagarwal/status/1285845532594679808

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