EKO

India Financial Services

Submitted by- Group B4
Ashutosh Ranjan PGPGC202300116
Ashwini Upadhyaya FABMC202300101
Neerav Doshi PGPGC202300126
Nitish FABMC202300111
Raman Kumar PGPGC202300154
Anagha Shinde FABMC202300109
Srinivas Boddepalli PGPGC202300175
 TABLE OF CONTENTS

01 About the company

04
Regulatory
Environment

02 Industry Landscape 05 Recommendations

03 Competitor
Analysis 06 Growth Plan
01
ABOUT THE
Founders-
Abhishek Sinha
and Abhinav Sinha

COMPANY
 ABOUT THE COMPANY
Mission: focus on financial inclusion and democratizing financial services for all.

Current Revenue Channels Key Information

Founded Year 2006

Eko Connect API Solutions Eloka

Total Funding $12.3M

Cash-based business Enable other White-labeled SaaS Location Gurgaon

platform targeted businesses to platform designed
towards individual integrate their for: Retail and
entrepreneurs and technology platform Valuation $20M (as on Jul 21,
distribution network
micro-businesses. into their own 2022)
owners, Small
offerings. businesses, etc Employee Count 42 (as on Dec 31,
2023)

Current Financials

Revenue EBITDA Net Profit

$5.8M (as on Mar 2023) $-1.4M (as on Mar 2023) $-1.9M (as on Mar 2023)
BUSINESS MODEL (DMT)

Customer Retail Outlet Eko Connect

● The company is targeting ● The retail outlet to get ● The merchant will collect the
customers who prefer cash itself registered on the cash and send the money to the
economy. Eko connect portal. recipient via the portal.

● This includes customers ● KYC Validation checks ● Revenue for Eko Financial
who do not have a bank are performed services Pvt Ltd: Commission
account or a smartphone to @ 1.5% from customers.
perform a cash ● Registration time limit is (Revenue share – 20:80 between
transaction. 30 minutes. Eko and retail outlets)
 API SERVICES
In late 2015, Eko saw a surge in demand from entrepreneurs wanting to use its
Increased Interest transaction architecture for remittance processing without the need for licenses or
bank partnerships.

Eko responded by opening its APIs for a fee, attracting requests from various sources,
API Exposure including freelance IT developers impressed by Eko's technology.

Eko faced competition from established players like Paytm, PhonePe,

Competitive Landscape MobiKwik, Airtel Payments Bank, and Google Pay, offering similar digital payment
services.​

Despite competition, Eko's focus on providing efficient remittance solutions without

Unique Positioning extensive partnerships or licenses set it apart in the market.​
 API SERVICES
By capitalizing on its API services and meeting the rising demand for digital
Leveraging APIs remittances, Eko solidified its position as a key player in India's digital financial
services sector.

Transformative Shift towards a more sophisticated digital distribution model.

Opportunity
 OTHER SERVICES
An end-to-end white-label platform bundled with payment services
White label Solutions like DMT, AePS, BBPS, CMS, Credit Card, Static QR, Indo-Nepal, etc.​
(ELOKA) ​

Eko gives you an opportunity to turn your own shop into a Finacial institution.
Retailer Banking App Retailer can provide money transfer, Aadhar Banking ,Utility Bill payment etc..

As a trusted partner, Eko specialize in guiding you through the hassle-free process of
SBI KIOSK setting up your SBI Kiosk Business & diversify your income.

SBI KIOSK
 SWOT

Strengths Weaknesses
Internal

● Extensive network ● Limited awareness

● Wide range of services ● Reliance on partner network
● Technology-driven platform ● Regulatory compliance
● Strong partnerships ● Profitability

Opportunities Threats
External

● Digital India initiative ● Technological disruption

● Expansion into new segments ● Regulatory changes
● Leveraging data and analytics ● Cybersecurity threats
● Competition from large players
 02
INDUSTRY
LANDSCAPE
 MARKET ANALYSIS
According to a survey by Boston Consulting Group (BCG) and QED Investors,
revenues in the financial technology sector are expected to increase by a factor of
International Trends six, rising from $245 billion to $1.5 trillion by 2030. By 2030, banking fintechs are
anticipated to make for about 25% of all banking valuations worldwide.

The India Payments Market is projected to have a size of USD 357.51 billion in
Domestic Forecast 2024 and is anticipated to expand to USD 814.43 billion by 2029, with a compound
annual growth rate (CAGR) of 17.90% during the forecast period (2024-2029)

Eko operates in a rapidly expanding Indian fintech market, driven by increasing

Market Growth smartphone penetration, digital adoption, and government initiatives promoting
financial inclusion

The market is fiercely competitive, with both traditional financial institutions and
Competitive agile startups vying for market share. Eko faces competition from established players
Landscape like Paytm and PhonePe, as well as emerging startups offering similar services

There's a growing demand for accessible, convenient, and affordable financial

Customer Demand services, especially among underserved populations in rural and urban areas
FINANCIAL INCLUSION INDEX
GLOBAL FINTECH INDUSTRY
FINTECH INDUSTRY IN INDIA
FINTECH USERS
 03
COMPETITOR
ANALYSIS
 COMPETITOR ANALYSIS
Competitor Name About Competiton Offerings

PAYPOINT Correspondent banking and agent- Banking services, payments, wallets, telecom,
based payment solutions travel, assisted e-commerce, Micro ATMs etc.

ONELOAD Developer of an app-based Financial services including utility bill

corresponding banking platform payments, receive payments, international voucher
purchases, E-load for sending & receiving mobile
top-ups, &earnings by selling digital products.

GRAMePAY Agent-based payment solutions for banks and
financial institutions.
NOMANINI The fintech platform for cash-
first markets. Provider of financial
inclusion solutions for banks and retail
ecosystems
GRAMePAY is a Device, Channel, and
Technology Agnostic Digital Payments Platform
crafted for by Experienced Payments industry
professionals.
It leverage existing FMCG value chain
relationships to ensure rapid deployment of an
alternative banking channel & low cost acquisition
of retailers business banking customers.

OXIGEN India's largest Payment Solutions Provider. Its
business involves service aggregation
& distribution utilizing mobile, POS etc.
Prepaid, Postpaid & Subscription based services
like Mobile Money Transfer, Recharges, Bill
Payments, Ticketing & Subscriptions for all leading
service providers across industries, like
telecom, Direct‐to‐home TV, Internet Broadband,
Travel, etc.
COMPETITOR ANALYSIS
Digital Rental SME
Insurance FinTech SaaS NeoBank
Payments Lending Lending

Total Funding 10-11 5-6 3-4 3-3.5 1.5-2 1-1.2

Number of
FinTechs 65-70 75-80 50-55 30-35 55-60 10-15
(Greater than 1
billion raised)

Number of
FinTechs
7 3 3 3 2 1
(Greater than 1
billion raised)

Illustrative Players
 04
REGULATORY
ENVIRONMENT
REGULATORY ENVIRONMENT
Interoperability
Eko faces stringent Know Your
Customer (KYC) regulations
mandated by the Reserve Bank of
India (RBI), requiring thorough
customer verification processes to
prevent fraud and ensure security.
RBI Guidelines
Eko must obtain and maintain
relevant licenses, such as prepaid
payment instrument licenses, and
adhere to regulatory guidelines to
operate legally within the fintech
space
Data Protection
Recent regulatory changes, permit
interoperability of transactions,
allowing Eko's customers to
transact between different mobile
wallets and bank accounts
seamlessly.
Payment and Settlements
Act, 2007
Understanding and compliance
with RBI guidelines regarding
mobile payments, digital wallets,
and domestic money transfers.
Eko must Adhere to regulations
on customer identification,
transaction limits, and security
protocols.
Licensing Requirements
Compliance with data protection
laws, including the Personal Data
Protection Bill, is crucial for Eko to
safeguard customer information and
adhere to privacy standards.
KYC Compliance
Must ensure Compliance with the
provisions of the Payment and
Settlements Act, including
regulations related to mobile
payments and settlement systems.
Licensing requirements and
procedures for payment system
operators must also be followed.
OTHER REGULATORY FACTORS
Financial Inclusion
Initiatives
Align its business strategies with
government and RBI initiatives for
extending financial services to
underserved populations, focusing
on rural areas and migrant
communities
Regulatory Updates
Eko must stay informed about
regulatory developments in the
mobile money and digital
payments sector and adjust its
business processes accordingly to
remain compliant.
Partnership Guidelines
Recent regulatory changes, permit
interoperability of transactions,
allowing Eko's customers to transact
between different mobile wallets
and bank accounts seamlessly.
Consumer Protection
Needs to comply with consumer
protection regulations, providing
transparent fee structures, effective
grievance redressal mechanisms,
and fair treatment to its customers
KYC and AML
Regulations
Compliance with data protection
laws, including the Personal Data
Protection Bill, is crucial for Eko to
safeguard customer information and
adhere to privacy standards.
Regulatory Reporting
Must maintain proper records for
regulatory reporting and audits,
ensuring cooperation with
regulatory authorities during
inspections and compliance
assessments.
 ANSOFF GROWTH MATRIX

Market Development

New
Strategy Diversification
Strategy

Market
Market Penetration Product
Current

Strategy Development
Strategy

Current New

Products
 05
RECOMMENDATIONS
 RECOMMENDATIONS

Expansion in Insurance business: The revenue form Insurance business is 0.02% of

the total revenues of the company for the year ended as on March 31, 2023. The
company earns commission by selling insurance policies. Since the company has

1 large network of retail outlets, it can poach the merchants and the public to sell the
insurance policies. The company can tie up with General Insurance companies to
secure the life of other assets of the merchants as well. More focus to be given
tot Insurance business and less to DMT business.
 RECOMMENDATIONS

Climbing up the supply chain: The company can approach the employees
2 of the suppliers of the kirana stores, the wholesalers to sell the insurance
policies.
1
Reduce cashback commission from the current level of 68% of the total

3 indirect costs. The company can apply the scratch card mechanism for the
same for avoiding the reduction in Quantity demanded.
 06
GROWTH PLAN
Diversification of Product Offerings
• Expand Eko's product portfolio to include innovative financial solutions catering to emerging
customer needs, such as insurance and investment products.
• Leverage Eko's existing customer base and distribution network to cross-sell new products
and enhance customer engagement.

Focus on Technological Innovation

• Invest in research and development to enhance Eko's technological capabilities, particularly
in areas like artificial intelligence, blockchain, and data analytics.
• Develop advanced risk management systems and fraud detection mechanisms to ensure the
security and integrity of Eko's financial services platform

Strategic Partners & Collaborations

• Form strategic partnerships with banks, non-banking financial institutions (NBFCs), and
other fintech companies to leverage complementary strengths and expand Eko's reach.
• Collaborate with government agencies and regulatory bodies to ensure compliance with
evolving regulations and participate in initiatives for financial inclusion and digital literacy.
Customer-Centric Approach
• Prioritize customer experience and satisfaction by offering user-friendly
interfaces, personalized services, and responsive customer support.
• Implement feedback mechanisms to gather insights from customers and
continuously improve Eko's products and services based on their evolving needs
and preferences.

Expansion Into International Markets

• Explore opportunities for expanding Eko's operations beyond India into
international markets with similar demographic profiles and regulatory
environments.
• Adapt Eko's products and services to meet the specific requirements of each market
while maintaining consistency in brand identity and customer experience.
THANKS
 References
• Eko India Financial Services | The Leading Fintech Company in India. (n.d.). Eko India Financial
Services | the Leading Fintech Company in India. https://eko.in/
• Eloka by Eko: SaaS Solution for Small Businesses | Eko India Financial Services | The Leading Fintech
Company in India. (2023, August 25). Eko India Financial Services | the Leading Fintech Company in
India. https://eko.in/blog/eloka-saas-for-small-businesses/
• Exploring the Benefits of Payout API in Specific Industries | Eko India Financial Services | The Leading
Fintech Company in India. (2023, July 13). Eko India Financial Services | the Leading Fintech
Company in India. https://eko.in/blog/exploring-the-benefits-of-payout-api-in-specific-industries/
• Exploring the Benefits of Payout API in Specific Industries | Eko India Financial Services | The Leading
Fintech Company in India. (2023, July 13). Eko India Financial Services | the Leading Fintech
Company in India. https://eko.in/blog/exploring-the-benefits-of-payout-api-in-specific-industries/
• T. (2024, February 13). Eko. Companies | Tracxn.
https://tracxn.com/d/companies/eko/__HNmkPuTXdZGnQ7tP-Q8hko8C6YHRcMYAVQlPlqxtWE0
• FinTech - Worldwide | Statista Market Forecast. (n.d.). Statista.
https://www.statista.com/outlook/dmo/fintech/worldwide
• FinTech - Worldwide | Statista Market Forecast. (n.d.). Statista.
https://www.statista.com/outlook/dmo/fintech/worldwide#transaction-value
• Fintech company Eko raises ₹30 crores in Series B round . (2023, February 22). BusinessLine.
https://www.thehindubusinessline.com/money-and-banking/fintech-company-eko-raises-30-crores-in-se
ries-b-round/article66540161.ece