Summary
This case demonstrates how BharatPe, an end-to-end fintech solutions provider for small-merchants, used the power of trust to win the battle of digital payments and transactions share. BharatPe discovered that while the category was fighting to win small-merchants' trust, merchants believed that nobody trusted THEM. BharatPe told the merchants that it trusted them not for what they're today, but what they can be tomorrow: Pan-India film "HaiYakeenBharatPe" invoked their self-pride Collateral free, document free loans
Challenge
Objective: Increase revenue driven by micro and macro loans to small merchants MEET THE HEART AND SOUL OF BHARAT'S ECONOMY: SMALL BUSINESS MERCHANTS: FROM TOWNS TO SMALL TOWNS, URBAN CITIES TO RURAL VILLAGES 63 million MSMEs employing 113 million people contributing 30% GDP 45% of manufacturing output No wonder India's fintech supremacy battle was fought for their preference. With the latest battle being fought to dominate the digital payments. And the only way to win was to get the largest share of transactions. Which could be only achieved by winning the merchants' trust. From established giants like Paytm, PhonePe to new fintech startups, the category has been crowded, competitive and growing; with every player trying to push their QR scanner.
Objective
In India's fintech supremacy battle, how could BharatPe, a late entrant, win small merchants' trust and transaction share?
Strategy
STRATEGY BharatPe realized that the first step to winning their trust was to show our trust in them… however small their businesses were BharatPe's pitch to the merchants: WE TRUST YOU NOT FOR WHAT YOU'RE TODAY, BUT WHAT YOU CAN BE TOMORROW.
Data
INSIGHT THE CATEGORY WAS FIGHTING TO WIN SMALL MERCHANTS' TRUST, BUT MERCHANTS BELIEVED THAT NOBODY TRUSTED THEM. They saw barriers like loan collaterals, guarantors, documentation, high transaction fees, and inaccessible banks as a proof of that. The irony was that they are the economic growth assets, but institutions saw them as liabilities.
Solution
Results
BharatPe's business innovation and marketing efforts have been focused on serving the financial needs of small merchants. From its unique business model to marketing efforts to on-ground shop renovations to collaborations with NITI Aayog - it's to become the growth partner of small merchants. The results were seen from far and wide. BharatPe saw a massive rise in digital transactions outside of its top-30 cities as merchants shifted to digital payments for convenience and security. With 2.5x growth in payments and a 4x jump in revenue and a valuation of $2.9 billion, BharatPe has recorded its best-ever quarter in Q1, FY23. The results were reflected in: 1. Higher monthly transactions 2. Merchant on-boaridng 3. Growth in active merchants 4. Growth in loans and loan amount disbursed
