Extensive Validated Case Study on the Business Process Framework for Market Entry of a Minimum Viable Product corresponding to a Mobile App Generating Vernacular Payment Links.

1. CONCEPT NOTE
For
The Product & Market Process Framework
Of the
MVP of a Vernacular Payment Links generating
Mobile App
Prepared By:
SHARAT SAWHNEY
16113090

2. Problem Definition & Needs of the Market
As explorated by the Niti Aayog, Fintech Market in India is likely to expand to $31 billion
by 2020, with the rise highlighted by the EY Global reports acknowledging the adoption
rate in India to be around 87%, which is among the highest in the World.
The rise of Financial options in the P2P transactions is gross to understand, although
the growth also proportionates a high rise of P2M transactions in India.
The ​business-to-business (B2B) fintech space ​attracted $657 million, surpassing the
$617 million flowing into business-to-consumer (B2C) fintech startups so far in 2019,
according to data from Venture Intelligence, a private equity and venture capital data
tracker. The aforementioned data distinctively illustrates the growth of B2B business
market, although the growth metrics are generally determined for Tier-1 & Tier-2 Cities.
The adoption of these B2B Financial Platforms in Tier-3 & Tier-4 Cities is categorized as
poor (close to 5 percent), although the Potential in these regions is Magnanimously high
(close to 5Mn Businesses).
The underlying Strata responsible for these Low Adoptions rates can be summarized as
follows:
1. Limited Availability of Local Language Platforms.
2. Technological-led Restraints like Non-Availability of Smartphones, Handling
Difficulties etc.
3. Bank Accounts Not Incorporated.
4. Awareness Deficiency.
5. Lack of Behavioural Shift governing Incentives.
As is evident, The Principal Factor that can be conveniently addressed, here, is the
Outreach of an Enhanced Infrastructure that lets people(in our case, Businesses) use
Financial Options in their Home Language.
About 70% of consumers are also preferring content in regional language over English,
a report by Economic Times Illustrates.
This clearly signifies the humane bias of a customer to interact using regional
languages over internet, alongwith the necessary integration of local languages for
those who are inefficient in English.

3. Solution Considerations
Existing Solutions:
● Most of the Fintech Startups in India, also providing Payment Infrastructure for
Businesses, are loaded with multi-lingual support to address a wider audience,
like PayTM, BHIM, PhonePe, GPay,Mobikwik etc.
● Talking about Financial Platforms for Businesses, PayTM Business already has
multi-lingual support for the Business owners in Tier-3 & Tier-4 Cities.
● E-commerce Giants like Amazon & Flipkart have also integrated Regional
Language Support in their stores as well as Payment & Checkout Options.
Competitive Analysis:
Talking about the Payment Gateways, there are many tough fights for Razorpay
including Instamojo, CCAvenue, PayTM Gateway and PayPal. All of these Payment
Gateways have the Business Financial Infrastructural setup and also provide the
‘Payment links’ Feature to Businesses. Yet, all of these share the inherent defect of
non-availability of Regional Languages.
Apart from these, OK Credit & KhataBook , although a Digital Ledger Startups , have
complete support for Regional Languages but have yet to incorporate Payment Links for
Businesses in the near Future.
Solution Recommendation
Modular Architecture of MVP (Minimum Viable Product):
To track the core essence of Tier-3 & Tier-4 Population, it is imperative to design the
experience of the Mobile App as handy as possible while enhancing the Communication
gap using medium of Hindi.
The Core MVP is segmented into 6 Modules:
1. Business Registration Module (BR Module)
2. Business Activation Module (BA Module)
3. Payment Link Module (PL Module)
4. Payments History Module (PH Module)
5. Reports & Insights Module (RI Module)
6. Account Module (A Module)

5. Distinguishing Highlights of the Solution Implemented:
● BR Module:
○ The Sign-Up Process would be governed & validated by the Owner’s
Phone number, rather than the traditional Email Methodology owing to the
limited availability & usage of Email Infrastructure by Tier-3 & Tier-4
Businessmen.
● BA Module:
○ It is quite vague for the Business owners in low-tier cities to understand
the concepts of Proprietary & LLP Business Types.Hence, we would be
providing them conventional Business Types as options in their local
language ( like ‘Dukandar’ in Hindi).
○ The Regulated Business Types like Private Ltd Company would be
extracted by the Incorporation/GST Certificate by the Razorpay Validation
Team. A considerable segment of Businesses in low-tier cities are also
devoid of their Business PAN Cards, hence providing them optional is a
necessity.
● PL Module:
○ Also, a considerable segment of Businesses receive payments from other
Businesses, which in turn is generally regulated by the credits provided.
Hence, a Credit Reserve Scheme is also implemented, wherein, every
major Customer/Merchant for the Business could be provided a Credit
Reserve, which would be paid below the cap limit. Credit Reserve Scheme
would also supply reminders to the Customer/Merchant , if found
necessary for the Business.
● RI Module:
○ Key Analytical Quantities integrated on a daily, weekly & monthly steps
are:
■ User Growth
■ Volume Growth
■ Repetitive User Growth
■ Number of Transactions Growth
■ Transfer Amount Segmented Modelling
Core USPs of our Vernacular Payment Links:
● Credit Reserve Scheme:​ The Credit Reserve Scheme would provide
Businesses with infrastructure to handle & allow credits to customers & other
merchants, with a complete recorded digital ledger for ease of Management.

6. ● Razorpay Capital: ​The access to Razorpay Capital to low-tier businesses would
certainly be a cover to any other existing solution.
Go-To-Market Strategy
User specifications:
Guiding the philosophy of an MVP, it would be sound to test case the integration of
HIndi as a Local Language as an alternate B2B Financial Option.
Clearly, the Southern States of Indian Peninsula cannot be Well suited for such
experimentation.
It is imperative to select regions of High Economic & Business Growth that transact in a
medium of Hindi in a clear majority.
One of the cities to be selected is Ambala, located in Haryana owing to the 3rd highest
Ease of Doing Business Index in India, along-with other Key Selection Metrics as
follows:
1. As of 2011 India census, Ambala UA had a population of 207,934.
2. Ambala has an average literacy rate of 89.31% with 91.76% of males and
86.41% of females literate.
3. The Cloth Market is considered to be one of the largest textile market in the
Northern Part.
4. It is one of the largest producers of scientific and surgical instruments in the
country.
5. Ambala is one of the two cities in Haryana identified under the smart city mission
overseen by the Ministry of Housing and Urban Affairs (MoHUA) and closely
monitored by PMO.
The other Target City to be set a hub of Testing is Ajmer, located in Rajasthan.
The fundamental metrics for this selection are:
1. Ajmer is called as the Education City of Rajasthan.
2. According to the 2011 census, Ajmer had a population of 542,321 in the city.
3. The literacy rate in the city was 86.52%, male literacy being 92.08% and female
literacy being 80.69%.
4. Ajmer is one of the four cities in Rajasthan identified under the smart city mission
overseen by the Ministry of Housing and Urban Affairs (MoHUA) and closely
monitored by PMO.

7. Strategy Pipeline:
The User Segmented to be targeted vis-a-vis Businesses in Ambala & Ajmer would be
targeted with a Validated Lean Methodology:
1. The MVP launch is segregated in two phases.
2. In Phase-1, Ambala City would be targeted. While in Phase-2 (2 weeks after
Phase-1), Ajmer city would be integrated.
3. For the Phase-1 Targeting, 4 Business Executives from the Razorpay Team
would be deployed in Ambala City, each targeting around 25 Businesses per
day.
Assuming a 10% conversion rate, 10 Businesses would incorporate the Payment
Links per day. On a continued Integration rate, Razorpay’s first 50 users would
be on-boarded within 5 Days.
4. During the 2-week Phase-1 Launch, the Business Activation Flow would be
validated through feedback from the onboarded Businesses and would be
adopted to enhanced Process Flows.
5. To Build Trust & Grow Chances of Adoption, a 15-day 0% Transaction fees
would be provided as a credit to the Businesses.This ensures a
Trial-cum-Addictive Infrastructure.
6. To direct Businesses towards this MVP, three alluring Incentives would be
propagated by the Executives of Razorpay both through Direct Communication
as well as Major Events, Business Clubs & Unions. The three Incentives are:
a. Razorpay Capital
b. GST Compliant Payable Invoices (Reduction of GST Handling Costs)
c. Custom Payment Pages
The Value Proposition of the Product Delivered:
Let your Customers Pay in a Language they love
Impact Metrics
6 Important Key Performance Indicators (KPIs) are to be analyzed on a routinely basis
to pave the way for the Road Ahead. These are:
1. Customer Acquisition Cost
2. Lead Conversion Rate
3. Customer Churn Rate
4. Average Revenue Per User(ARPU) & ARPU Growth
5. Net Promoter Score (A customer satisfaction Index)
6. Sales Growth Rate