India – Quote Unquote

“India has evolved into

one of the world's “I have never seen
“India is now truly a land leading technology India so dynamic,
of opportunity”. centers“. vibrant and full of
business
opportunities”.
Craig Barrett
Intel
John Redwood Corporation
Economic Competitiveness By 2032, India will be Peter Loescher
Policy Group, UK President and Chief
among the three largest Executive
economies in the world. Siemens

“We came to India for the “The Indian market has two core
costs, stayed for the quality advantages - an increasing
BRIC Report,
and are now investing for Goldman Sachs
presence of multinationals and
innovation”. an upswing in the IT exports”.

“India is a developed Travyn Rhall,

- Dan Scheinman, Cisco System
country as far as “India is a very exciting ACNielsen
Inc. as told to Business Week,
intellectual capital is market and the luxury car
concerned”. segment is growing
exponentially here”.

Mr Paul de Voijs
Jack Welch Managing Director
General Electric Volvo Car India 1
 Go
Hinterland….
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• The hinterlands in India
consist of about 6.5 Lac
villages.

• About 850 million

consumers inhabit
these villages, which is
about 70 percent of
Indian population.

• These villages are

spread over 3.2 million
square kilometers and
finding them is not easy.

• Only around 10 per cent

of these villages have a
population of over
5,000 and about 55 per
cent have a population
of 500 people or less.

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4
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Hunting in HinterLand for the Next
Million Customers

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Store King- Breaking into the Rural

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INTHREE - BoonBox

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 BoonBox – Business Model

• Inthree has Boonbox™ Associates at Panchayat level in villages .

• Boonbox™ Associates show the eCatalogue to consumers and book orders
and collect cash and transfer them to Inthree.
• Most of these villages do not have any last mile connectivity and each village
cluster is unique. So based on the geography and existing network Inthree
has set up a hub and spoke logistics network to reach out to these villages.
• To provide after sales support Inthree has set up multilingual call centers. In
case of any issues consumers contact these call centers either directly or
through Boonbox™ Associates. Call centers in turn coordinate with the
respective suppliers to sort these out.
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Sahaj e-Village - CASE STUDY

June 2018 13
 Sahaj covers ~50% of India’s geography

363
91
138
Districts 250,000 Villages
123 (out of 716
35
52 districts)
1824 37412 4240
9259 14

185 2
1 965 10988
~75,000
362
# Transactions
5229 Sahaj
27mn (FY 18)
283 Kendras
110

44 125

Transactions
Access to
Value
2430 consumers
13 INR 2,200cr
500mn
(FY18)
Focus High Medium Low
Regions

Wide and deep network with an average of ~200 centres per district

Note: Highlighted states in the map represent states with our significant presence; nos on the map represent count of Sahaj Kendras as of March 18
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Sahaj has built a unique ‘phygital’ network
across rural & semi-urban India

 Commenced operations under the National e-

Governance programme in 2008 to bridge the
Urban-Rural digital divide

 Created a wide and deep ‘phygital’ distribution

network enabling last mile connectivity for
Government and businesses to address the rural
market

 ‘Brick and Click’ model for delivery of multiple

products and services via Sahaj Kendra (Centres)

 Invested in building a strong & trusted

ecosystem of channel partners (Village Level
Entrepreneurs - VLEs), business partners and
customers

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Providing a Diverse Portfolio of
Products & Services with leading partners
 Banking services
Banking  Aadhaar enabled Payment System (AePS)

 Life insurance
Financial Services  Motor insurance
 Health insurance
 Loan Referral

 Ordering and fulfilment

e-Commerce  Rural focused product distribution

 Utilities bill collection

Consumer
 Mobile & DTH recharges
Services  Bharat Bill Payment System (BBPS)

 FASTag (Electronic toll collection)

G2C & e-  Birth/ death certificates, land records, etc.
Governance  Aadhaar enrolment/ updation, PAN cards

 Retail
e-Learning  Institutional programmes

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One-stop Solution fo Rural Distribution Needs

Bottlenecks to serve rural

One-Stop Solution - Sahaj
Market for Corporates

High cost of customer acquisition

Poor accessibility

Lack of relevant market feedback

Lack of influencer engagement

Sahaj Kendra (Centre) operated by
Sahaj Mitr Channel Partner)
Low product awareness

Providing a unique and cost-effective solution through a ‘Physical+Digital+Human’ approach

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The Sahaj Advantage

Minimal Cost of  Access to 500mn people via a large, digitally-enabled distribution

Customer network of 75,000 Sahaj Kendras
Acquisition  ‘Assist’ model to build trust and increase consumer stickiness

 Ecosystem of Sahaj Mitr, business partners, employees, Government & society

Strong
Ecosystem  Various new initiatives launched by the Government & Private sector, especially
in the FINTECH space

 High capacity ‘plug and play’ digital infrastructure already in place,

resulting in easy scalability of the model
Easy to Scale
 Low incremental cost due to the operating model with nimble footedness
and a start-up mindset

 Core business is focused on BFSI and is well poised for high growth
Targeted Product backed by strong business partnerships & technology
Offering  Better consumer insights gathered through continual engagement with
Sahaj Mitr enabling us to offer relevant products / services

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 Online Sales : ‘Assisted’ e-commerce model

Sahaj Mitr’s share of commission Commission on

remitted to his SKASH wallet / bank transactions done paid
account to itigershop.com

Order placement & Transaction request

payment done on goes to online
Cash microsite business partner

Products Online partner Online business

Delivered delivers product to partner does the
Sahaj Mitr order fulfilment
Consumers within SLA
Sahaj Mitr itigershop portal Business Partners

 Sahaj Mitr  Regular Sahaj  Business

“assists” the Mitr model
end- engagement “assists”
consumers in via training, online
the selection product business
of products awareness partners to
and services and 24x7 Call penetrate rural
and fulfilment Centre India

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 Do we want to be Unicorn ?
Unicorn Market Space Time-Taken

Swiggy Online Food Delivery 4 Yrs

Hike Messaging App 4 Yrs

InMobi Ad Platform 4 Yrs

PayTM Mall Horizontal 14 Months

Udaan B2B 26 Months

? Rural When ? 20
 Buy Sell Rent

Horizontal Health FaaS Entertainment Taxi XyZ

Shopclues SastaSunder Trringo LiveMe

Snapdeal 1mg NinjaKart HotStar
Amazon NetMeds Em3 Gaana
PayTM Gramin HC Hungama
Apollo

Tech. Led Democratization of Products/Services

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 References
• http://www.inthreeaccess.com/about-story.html

• http://www.inthreeaccess.com/opportunities.html
• https://www.youtube.com/watch?v=iwMZHI8Grp4
• https://economictimes.indiatimes.com/news/economy/policy/sunday-et-making-rural-india-pay-digitally-and-
challenges-post-demonetisation/articleshow/55640316.cms
• https://economictimes.indiatimes.com/small-biz/startups/how-amazon-is-going-deeper-into-the-hinterland-with-a-
gambit-of-unique-offline-online-blend/articleshow/60714288.cms

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© Minder Chen, 2015 Rent the Runway - 22