Business Brief
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! BUSINESS BRIEF Startup Name TROIKA TRANSSOLUTIONS PRIVATE LIMITED Founders SANJAY KAMRA SEEMA SHARMA #1 Problem Statement Post Demonetisation, there has been acute shortage of cash and the ATM had gone completely dry. Even after steady flow of currency denominations over a period of 17 months wherein the cash availability has considerably improved in the Metros and Urban areas, the problem still persists with rest of the areas. Further, the Government is encouraging digital transactions in big way and is pushing for people to use less cash as much as possible. It is a fact that the banking services are not available in the Tier 3/4 and rural areas and a common villager faces a huge challenge to get these services whether he has to withdraw or deposit the money. Often one has to travel 10-15 kilometres to the nearest bank and wait for hours to fulfil his banking requirements. His/her that day’s earnings are also adversely affected. Similar problems are faced by the citizens when they have to deposit the bill payments for Electricity, Water and Gas services which essentially are to be submitted through digital means via the Bharat Bill Pay System (BBPS). Focus also is drawn to the people who are old/incapacitated to travel far to get these services. There are other services like PAN card applications, Jeevan Pramaan Patra, Railways and Bus ticket bookings, Flight bookings, hotel bookings, mobile/DTH/Datacard recharges which if available on doorstep will ease people’s problems. The whole idea behind our product is to bring in all the above mentioned services on a single and affordable PoS platform and position such facility (Customer Service Centre (CSC)) in remote areas and cover every possible village. These CSCs will ensure that all these public utilities along with banking facilities through Aadhar Enabled Payment Systems are made available to the villagers nearby and they no ! longer have to travel to far-flung places to the bank branches and ATMs for these needs. It will save them time, money and energy which they can utilise for earning their livelihood. Also this will ensure local rotation of the currency which will ease out the pressure on the banks to open additional branches and ATMS which to create and operate is a costly preposition again. #2 Target Customers The biggest beneficiary in this win-win formula product is the common citizens/villagers who are either unbanked or even if they have a banking account, they stay faraway from the banking branches and other utility services. Also to access the same, they have to take pain of traveling long distances. There is literally no facilities available to them currently and that is why there is a huge potential for business as well as social welfare in deploying this product. The second beneficiary will be the CSC operators who can earn a decent living by providing these facilities to the customers trough per transaction commissions. A bigger byproduct of this is that we are providing employment to the educated unemployed youth of the villages and small towns. The investment for starting this business is minuscule as the product is aggressively priced and is very affordable. The CSCs will arm the operators with an earning potential of minimum of INR 15000 - 20000 per month which is considered substantial. The third beneficiaries are the banking institutions which will be relieved of the pressure of opening additional bank branches/ATMs in remote areas and villages. With the Govt facilitating Micro ATMs and Mini ATMs through AEPS and PoS machines, it is now feasible to provide these services without investing in the additional banking infrastructure. for the same. This will also facilitate rotation of available currency in the same local area which will reduce work pressure on banking staff as this work will actually be performed by the CSC operators and in the bargain the operators are earning a livelihood for own selves. #3 Product (Solution) The Solution involves the following Hardware and Software applications:- (a) A GPRS Android PoS machine with biometric fingerprint scanner and thermal printer. ! (b) A Mobile Application which offers the following services: - (i) Aadhar Enabled Payment System (AEPS) which facilitates deposits, withdrawal and Balance inquiry. (ii) Bank Account Opening Application (iii) PAN CARD application (iv) Life Certificate for pensioners. (v) Bharat Bill Payment System (BBPS) for electricity, water and gas bills (vi) IRCTC railways ticket booking. (vii) Flight/Bus Ticket Bookings, (viii) Mobile/DTH/Datacard recharges under thee VAS. (viii) Insurance premium payments. (c) A web Page application offering all services mentioned in sub para (b). The Android PoS machine and the applications are similar to mobile applications on a smartphone which are easy to understand and operate by the educated youth of today. Currently these services are offered on conventional PoS machines which are based on Linux based software applications which are injected in the PoS and it has a cumbersome operations through selection and operation by hard keys of the PoS. In the proposed solution, we use all the features of a an Android based application using the soft keys and dropdown menu etc. The ease of operation adds tremendously to the user experience and the services are provided with greater ease and seamlessly. This will reduce the per transaction time for all the services resulting in better productivity and efficiency. As mentioned earlier, this product will virtually eliminate the requirement of travelling by the customers to banking and utility services centres which are normally available at the nearest city/town. This will save time, money and effort of the common citizens and will also eradicate the the need to stand in quest for hours to get these basic services. #4 Value Proposition As the services mentioned above are basic necessities for the citizens, there is no need to create the demand for the same. The CSCs are the need of every town/village. The banking/utility facilities to the unbanked society through these smart PoS solution will address the much needed platforms.This also will create employment for the educated but unemployed youth in the local areas. It will ease the pressure on the banks and they will ! have to create lesser number of branches/ATMs where the cost of infra is higher than the business returns for them. This product and project will go a long way in realising the Financial Inclusion Programme of Govt of India and also realise the Digital India dream of the Shri Narendra Modi, Hon’able Prime Minister of India. #5 Price & Revenue Model The product is targeted to be sold to the potential CSC operators who are educated and are unemployed. Also the revenues being generated in the business model are already incentivised schemes of the Government especially for the banking services like money deposits and withdrawal. Under the AEPS scheme, the RBI provides incentives per transaction depending on the ticket size of the transactions. This means that the CSC operators apart from charging a nominal amount upfront from the customers are also getting commission as retailers from the incentives being extended to them from the Aggregator (Product owner). The CSC operator needs to spend INR 15000 + Taxes as one time expenditure to start this business which essentially covers the cost of hardware and the software application to be used by him. There are no monthly rentals to be paid by him/her. There are additional revenues for the CSC operators as they will also earn predetermined commissions by the original Service Providers by offering all other services to the customers. The digital payments transactions value in India is of the tune of $ 200 Billion in 2017-18. As per a report from Credit Susie, the market is expected to rise to $ 1 Trillion by the year 2023. There are 6.5 Lakhs villages in India and that is our target market. The Aggregator model on which we are working and targeting 100000 PoS devices solutions in one year time will generate a revenue of more than 100 Cr with an investment of 10 Cr in two years. #6 Target Market The plan is to focus on small towns/villages which desperately need these services. The strategy is to get in touch with the village panchayat Heads whose contact details are available on the public domain and then through them identify the potential candidates who will keen to start this business. We also plan to engage NGOs to get access to potential CSC operators. Our own company already has super distributors/distributors in 5 ! states including UP, Bihar, Jharkhand, West Bengal and Kerela they already have a retailer base of 5000-10000 with them and they are keen to adopt this product. #7 Customer Acquisition & Sales We intend to use digital marketing platforms and technology to propagate and advertise our product. We also intend to aggressively use social media for generating interest of the people in our products and services. We already have lead generation mechanisms through platforms like IndiaMart and Trade India etc which provides us substantial number of leads and which we are successfully closing as sales. We plan to stock the products at our Headquarters at Delhi and also with out super distributors/distributors at the State levels. The super-distributors/distributors will prebook the devices with us and assist us in obtaining the e-KYC documents of the CTC operators/retailers. Our own company already has super distributors/distributors in 5 states including UP, Bihar, Jharkhand, West Bengal and Kerela they already have a retailer base of 5000-10000 with them and they are keen to adopt this product.