Acquisition Project | Gromo

Overview

Gromo is an Indian fintech startup that provides a platform to enable financial advisors and distributors called GP(Gromo Partners) to offer a variety of financial products to their customers. Founded in 2019 by Ankit Khandelwal and Darpan Khurana with the mission of democratizing access to financial services and creating 50 Lakh micro-entrepreneurs across India and increasing their income levels. It can be considered a platform solving for the distribution of financial products to the depth of the country. Gromo focuses on bridging the gap between financial institutions and end-users through its innovative digital platform.

Product Offering

The intuitive mobile app enables users called GP(Gromo Partners) to sell a wide variety of financial products such as savings accounts, credit cards, demat accounts, credit lines and insurance products. In order to increase financial literacy the platform also offers informative content and courses. It also has some helpful features such as Gromo diary, traffic challan checking, partner website, credit score checking, digital visiting cards and Gromo agency which allows partners to manage big teams.

User Stories

• College Goers: People in their early twenties pursuing higher education are usually figuring out ways to make some money to make ends meet as the pocket money from parents is not enough in most cases. In most cases, they are new to financial products and looking for budget-friendly options as first-time users. They spend most of their time online using social media, trying different products and looking for discounts to save money. They are not hesitant to try online platforms to make some extra bucks and looking for some work that can be done alongside studies comfortably.
• Working Professional: People in their mid-twenties and early thirties who have recently started working or are fresh out of college and are looking for deeper exposure to financial products such as credit cards, investment and insurance products. Other than their usual jobs they want to make some extra income through some side hustle.
• Self-Employed: These are small business owners like Kirana stores, cyber cafes, who have a permanent gig but want to create a separate income stream and generate some extra cash each month. These users are not so tech-savvy and need assistance in using digital products in most cases.

User Journey

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ICP's

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​ICP Prioritization​

• Working professional-High Priority
• College Students- Medium to High Priority
• Self-Employed- Medium Priority​

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Market Size

As Gromo allows its GPs to sell both insurance and banking products we will be calculating the market size for both categories separately and then combine them to arrive at a concrete number.

Insurance Products

The market size for companies selling insurance is calculated using premium volumes or gross premiums collected by companies. This premium collected is of two types premium paid for existing policy renewals and new business premiums (It is the total amount of premiums earned by an insurance company from new policies sold during a specific reporting period). Also, two types of insurance products are Life Insurance and Non-Insurance(Health, motor, travel and home insurance).

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Now companies like Gromo partner with agents to sell these insurance products and they have an aggregator or commission-based revenue model in which these companies earn around 10-30% of premiums paid as commissions. For ease of calculation, we will take this at around 15% of the premium paid as commissions.

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​Calculating TAM, SAM and SOM using the top-down approach

TAM: It will be the percentage of commissions collected from premiums paid. For this case, it will be 15% of the gross premium collected by the companies.

SAM: Assuming Gromo can realistically target the digital distribution segment, which might be about 10% of the overall TAM.

SOM: Assuming Gromo can capture 20% of the SAM due to competition and market dynamics.

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Banking Products

It would be very difficult to articulate and reach at a number for calculating TAM, SAM and SOM for banking products as Gromo sells a wide variety of products such as savings accounts, credit cards, investment products(FDs and Demat accounts), and loans(personal loans, business loans and credit line). Also, each product has different payouts/commissions, which are mentioned below in the table.

Calculating TAM, SAM and SOM using the bottoms-up approach

There are roughly 5 Lakh MAU on the platform. Out of these 20% are power users, 60% are casual users and the remaining 20% are passive users.

Now calculate the earning potential of each category of users in different product categories. We will be assuming an approximate number of products sold per user and multiplying it with the average payout to get the final revenue that can be generated per user. Also neglecting the revenue made on payouts of passive users for ease of calculation as the value is comparably small.

Power User

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Total Annual Revenue= No. of Power users* avg payout of a power user*12

Total Annual Revenue= (100000*25500)12= 4.75 Million USD

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Casual User

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Total Annual Revenue= No. of Casual users* avg payout of a casual user*12

Total Annual Revenue= (300000*14100)12= 7.8 Million USD

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Final Calculation

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Source: IBEF(Indian Brand Equity Foundation), SEBI, IRDAI and RBI

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Factors Driving Growth

• Governments and regulatory bodies are increasingly supporting fintech innovations through favourable policies and regulations.
• Increasing adoption of digital technologies, mobile applications and increased financial inclusion of Tier-2&3 cities of the country.
• Growth in consumption trends in India-2&3.
• Digital platforms like Gromo can scale rapidly with relatively lower costs compared to traditional financial institutions.
• Offering a wide variety of products and tapping into newer markets.

SWOT Analysis

Competitors

Direct Competitors

• ZET(Formely Onecode)
• Banksathi
• Ambrela
• Earnwealth

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Indirect Competitors

The indirect competition of Gromo is financial institutions and banks such as HDFC, AXIS and IDFC. These are indirect competitors because as of now they are partnering with companies like Gromo to penetrate into the depts of India to scale their financial products reach but in future, they might start doing this by themselves.

Despite tough competition in this space, Gromo has well positioned itself as a major player with a healthy 15% market share and growing at a rapid scale.

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Competitive MOAT

• Huge distribution network of 40 Lakh partners or micro-entrepreneurs across the length and breadth of the country.
• Presence across smaller cities and depth of the country.
• A highly intuitive and easy-to-use platform built by an amazing tech and product team that has received multiple awards in the Fintech space.

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Acquisition Channels

As a company Gromo is at the early scaling stage and based on the current stage the best channels to acquire new users for the platform would be referrals, organic(SEO, Push and Pull), paid ads(Google and Meta), product integrations, performance and influencer marketing. We will decide the priority and areas to focus on using the impact vs effort framework mentioned in the table below.

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Marketing Pitch

Aha Moment

In the core user journey, there are two touchpoints when the user feels an Aha moment. The first one is when a lead is created and the second one is when the payout gets credited to the user's account.

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Core Marketing Pitch

The current marketing revolves around informing GP's the earning potential of the platform.

Line: "Earn more than Rs 1 Lakh every month. Sell financial products with Gromo and make extra income every month."

Other USP's

• Work From Anywhere: Work from home in your pyjamas or work from your resort in the mountains - we're flexible.
• Zero Investment Business: Find customers and start your own business at ₹0 investment like you always wanted.
• Instant Payout: No more waiting for weeks to get your sales earning! Get your earnings the moment your sale is a success.

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Based on my analysis and prioritization framework at the current stage of the company the top two channels we should be focusing on to acquire more users are organic (SEO and Content Loops) and referral. Focusing on these will help us grow our user base and keep our CAC flat or reduce it with scale and also help us acquire only intentfull users. Will be discussing the referral channel and optimising it in detail in the below section.

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Referral

Bragworthy Proposition: Use your network and unlock the earning potential with this free-to-use platform by selling simple financial products. Zero investment and work flexibly from anywhere and anytime.

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Value: Currently users can redeem these coins to earn up to 10% extra payout on each subsequent sale.

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Discovery: Currently users can discover the referral program on the homepage and profile page.

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Current Referral Message:

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Problems in Current Referral Message:

1. Lack of Personalization: The message begins with a generic "Hi," which might not grab the recipient's attention.
2. Clarity and Structure: The message is long and somewhat cluttered, making it hard to read and absorb quickly.
3. Lack of Urgency: There is no call to action that can create a sense of urgency or exclusivity.
4. Proof of Earnings: Claims of earning "over ₹1 Lakh every month" and "lakhs of rupees every month" are bold and could be seen as unrealistic without concrete evidence or testimonials.

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​New Referral Message:
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Hi [Recipient's Name],

Join me on GroMo and start earning today! 💸

With GroMo, you can earn over ₹1 Lakh every month by selling financial products like credit cards, insurance, demat accounts, savings accounts, and more.

Download now using my referral link: [https://gromo.page.link/CVrj3ub4bPummtBu5](https://gromo.page.link/CVrj3ub4bPummtBu5) or enter my referral code 5VSX1212 during signup.

Over 20 Lakh people, including myself, are already using GroMo and earning substantial commissions. You can earn up to ₹3,000+ per sale!

No sales experience? No problem! GroMo offers free training from top finance industry trainers, available anytime.

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Don't miss out on this opportunity to boost your income. Sign up today and start your journey with GroMo!

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Best,

[Your Name]

Current Referral Program:



Problems:

1. Currently the users have less motivation to make more referrals 

2. The referred friend also isn't motivated to make continuous sales and become a retained user.

3. The value of the GroMo coin is not clear and it is complex to understand it.

New Referral Program:

The agenda for building acquisition should be to acquire good-quality users. The definition of a good quality user is someone who has the intent to make sales through the platform.

No. of Referrals Made - Unintent-full users = Good Quality Acquisition.

How?
A. Motivating referrals made from current users.
B. Motivating intent-full new users.

Referral Tracking

User can track their referrals through the referral tracking page and send a reminder to the referee through WhatsApp and SMS.

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The new referral program focuses on:
1. Increasing the no. of referrals made: Increasing the Incentive of 1st sale by Rs. 100 to Rs. 200.
2. Motivating intent-full new users: Incentivizing referred friends on their every sale till 5th sale.

Changing the Value of GroMo Coin:

1. 10G = 1Rs

The End

Thanks