In today’s business case study we’re gonna learn all about phone page business model Revenue model startup challenge of phone pay what all it has to deal with at the early stage to what it is today and also phone based funding grounds these are the four things that we’re going to discuss today in our business case study with respect to.
Phone pay if you have not watched a part one of phone pay then the link is in the description where we have discussed all about how did phone pay got started what were its operations what was esops how esops had helped phone pay to gain back the stakes and benefits the employees all that you can find in our part one of phone pay the link is in the description.
If you’re someone who has come to our Channel new ensure that you subscribe our Channel and hit the Bell icon and select all underbell icon so that you do not miss on any of these business case studies so let’s start with the business model is a UPI based payment platform the app enables the transfer of money from One.
Bank to another it has other features as well those mobile app phone pay sells products and some services like groceries Insurance food Etc the company’s job is to promote the products phone pay can be used for mobile recharge electricity bills and gas bills can also be paid via phone pay phone pay launched a POS machine that is now seen.
In almost every shop and kirana store in India people can use POS system to make payments phone pay is now officially an insurance brokerage firm the digital payments and Merchant aggregator was handed over to the license for insurance brokering by the insurance Regulatory and Development Authority of India these are all the business model of phone pay.
Let’s see what all extra it has in its business model before we discuss about its Revenue model phone pay will now be able to offer Insurance products to its customers from a variety of of insurance firms furthermore it can also offer personalized Insurance products to its enormous user base if you’re somebody who’s looking to do an MBA or if you’re.
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Professionals who come from a different background and you will know exactly where you got to do a practical MD the link is in the description so this is how the business model of phone papers a transaction of money for a person to pay to a retailer or the merchant whereas phone pays also Diversified.
Itself in the form of mobile recharge electricity bills and many more likewise of insurance we’ve seen an ad of getting a bike insurance from phone pay that has been usually trending in the advertisement under television ads here phone pay is trying to grab the customers to come up to its platform not only to transfer money through the app.
But also to take its other services that is how the business model of phone pay works now let’s look into the revenue model of phone pay which tell us in more detail about how does business model of phone pay works with Revenue phone pay Revenue model phone pay gets its commission from the promotion of various products on its app it also collects.
Revenue from a partner through the switch platform recharge points centers usually earn a commission from the telecom companies when the customers recharge their phones likewise phonepe also receives a commission when the users recharge their phones through the app the company earns a commission from an any online purchase users make via.
Its app phone pay has a homogeneous database in today’s date data holds the key to profit the database offers several valuable insights this is where phone pay is changing the game the database of the customers on how they are doing the transaction based on their Transaction what kind of a person it is how much are they spending on a daily.
Basis how much are they spending on the monthly basis and where are they spending exactly all this has been tracked down and the database of a customer in the form of a profile is being made can be utilized in many ways for other companies and we aren’t sure where this data information is being shared the payment patterns of customers.
Are determined by how much much money they transfer and when moreover one can reduce customers purchasing pattern along with the retailers or stores details phone pay continues to grow its customer base through promotions and other offers on its app the leading digital payments platform has announced that it will charging it will be.
Charging up to rupees to worth of processing fees against all mobile recharge this might would have been experienced by everybody in fact I myself recharge from phone pay whereas phone pay is charging a processing fee of rupees 2 rupees on the Telecom price which has been for monthly basis for example if your monthly plan of phone.
Charge with any of the Telecom operator whether it is Airtel jio or V if you are paying 299 then you end up paying three not one today on phone pay so likewise you can calculate everybody who’s to recharge free of cost on phone pay or ends up paying rupees too and phone pay is the digital payment and transaction market share leader in this industry.
Which has about 47 percent which we have already discussed in our previous video of phone pay if you have not watched that video then the link is in the description whereas the 47 of the market share is with the phone Pane and now you can realize if among total Indians 47 of them uses phone pay and if they are paying rupees two extra on their mobile.
Recharge then you can convert this into how much are they earning monthly only through mobile recharge processing fee of rupees two not only that phone pay is the only digital market player who’s come up with a concept of processing fee of rupees two no other digital market player like paytm Google pay Etc are charging for this but phone pay is.
Charging and they have come up with a tagline trust Bill karna be a process so this is a Hindi tagline by phone pay that you need to have the trust of the customers and customers need to trust the phone pay because it’s a process that we trust phone pay so much and so that now we don’t mind to pay extra rupees too why is the other Revenue.
Model of phone pay is it allows B2B businesses to be on the platform and collect the money from its customers likewise phone pay also allows electricity bill gas bill and likewise some of the private sector businesses to pay and collect the customers fees directly through phone pay that is also one of the revenue model of phone pay.
Not only that phone pay also gets money and revenue through advertising and giving this gift hampers where you get a voucher Etc it’s also been advertised by other companies in phone pay app so far these are the revenue model of phone pay buyer which phone pay earns and majorly now which it comes with a processing fee now.
The most important thing is we aren’t sure about the data information which has been gathered by phone pay what phone paid does with it with whom does phone pay share that we aren’t sure about that so we cannot say that it’s totally a revenue model for phone pay but however in future there are many ways that phone pay can charge us via.
Like how she they have started with rupees 2 of processing fee for recharge they can also charge us for a transaction so that also can be a revenue model in the future to all our viewers let us remind you that this is not the only one video that we have made on phone page there is another video that we have already made on phone pay.
The link is in the description it is a continuation part of phone pay hence we request you to also go through that video now let’s come to phone pay has a startup challenge what phone pay had underwent and how and who was the Savior for phone pay who had come and invested into a company this is a very important information that we are sharing to you.
Here and then we’ll also share about the funding rounds of phone pay which is most interesting so make sure that you’re there till the end phone pay has a startup challenges starting up was a big challenge indeed for phone pay because the industry was quite new and rather unexplored however the phone pay acquisition by Flipkart was something.
That settled things phone pay was blocked on January 14 2017 by ICICI Bank because the phone pay transactions did not meet the npci guidelines through NPC I initially instructed ICICI to allow UPI transaction via phone pay on January 19 2017 the regulatory body confirmed a day later that the digital payment service provider had indeed violated the.
UPI Norms Airtel was another company that blocked phone pay transaction on its platform during the same period any startup has its own challenges in its own way likewise phone pay also had its challenges because when they started the company had its existence in Singapore however when they wanted to launch in India it was something which was.
Unexplored wherein we had not seen the competitive or phone pay like Google pay being that known to what that point of time let me remind you Google pay was known as stage amp and people used to even feel it unsecure because whether the app by name Tay’s app did Google really own that company even at that point of time in 2017 I was thinking.
Whether these app is secure or not then eventually Google changed the today’s app name to Google pay and as we all know that the demonetization of rupees 500 and 1000 rupees in the year 2016-17 had paid a major role in the apps like paytm phone pay and Google pay to grow that way all discussed in the business case study of paytm if you have.
Not watched that video then please check that out in our Channel description so coming back to phonepe has a challenge it was very difficult for phone pay to manage until unless it was acquired by Flipkart and later Flipkart was acquired by a bigger giant called as Walmart that has played a big game changer for Ford pay now let’s look into its funding.
Grounds funding rounds of phone pay you will be surprised to know that the major funding for phone pay has only come from flipkarts and now from Walmart which owns Flipkart so this is something that you need to know exactly how much of funding that phone pay was able to raise only through its parent company now Flipkart via Walmart phonepe has.
Collected 1.99 billion that is close to 2 billion dollars in funding to date over 14 rounds the company received a fresh infusion of 297 million from phone pay privately limited Singapore it’s Singapore based company me on April 15 2022 phone pay concluded the last funding round worth rupees 350 million from Walmart which was now extension of.
700 million that was announced in December 2020. it is an interesting fact phone pay has received a total funding of 2 billion dollars close to 2 billion dollars that is 1.99 billion if you convert that in Indian rupees it’s today more than 16 000 crore rupees has been raised by phone pay as a form of funding now this major funding has come from.
Flipkart itself in the chunk of 14 rounds of investment in the form of series A B C D and furthermore with 3 Series a round till the round currently phone pay address is all from Flipkart and Walmart except one we see drum which was being funded by its parent company in Singapore which was of about 297 million dollars if you convert that.
Indian rupees it is approximately more than 2 400 crore rupees was being funded in phone pay initially through its parent company and after that it’s only Flipkart and Walmart which has invested and brought an investment up to 2 billion dollars that is more than 16 000 crores so that was all about the funding grounds of phone pay and let me tell you.
The competitors of phone pay and today’s date is WhatsApp pay Amazon pay bharatpay paytm will be quick and Google pay these are the major competition that phone pay still has but it still rules 47 of its market share not only that let’s look into the phone based competitors which is bringing the business to phone pay and also making.
Sure that phone pay is the market leader in this industry in July 2021 phone pay has partnered with access bank for its UPI transaction which is great deal for both of them axis bank which is one of the leading nationalized Private Bank in India as the major collab operation and partner of Phone Base Flipkart being its parent company which has acquired phone.
Pay so Flipkart indirectly promotes phone pay in many ways of its marketing strategies which has eventually helped phone pay to gain a leadership title in this digital payment Gateway so all about phone pay if you’re somebody who has still not registered for our free practical MBA webinar where you will want to learn all about these startups.
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