Acquisition project | Jiraaf

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Acquisition project | Jiraaf

1.Product Flow

About Jiraaf:

A.1. Problem Statement

As income levels are rising, individuals are looking for investing opportunities
Currently, Equity is the dominant asset class where individuals can invest but the asset class has short-comings:
1. Equity is linked to market risk and is very volatile
2. Same expected return can be earned with lesser risk if the portfolio is well diversified across asset class
3. Available financial instruments for an individual to take exposure in fixed income is through FDs and the FD returns don't beat inflation
There are a lot of high yielding fixed income instruments with flexibility with regards to tenure that are only available to HNIs / Family Offices / Institutions

A.2 Jiraaf's Proposition

Enabling investing in Fixed Income securities yielding 6-20% returns with tenures ranging from 3 months to 3 years with minimum ticket size of INR 1,000

B. Understand the product flow across platforms

- Website accessed through iOS and Browser (both Computer and Phone)

- App for iOS and Android for altJiraaf

Sign up using Mobile Number and OTP is sent
KYC requiring PAN, Aadhaar, Bank Account and Demat Number
Explore opportunities to invest
Select the opportunity that the user is interested in
Go through due-diligence - Snapshot, About the company, Investment Highlights, Risk Category Exposure and Documents, FAQs
Select the number of units to purchase
Complete payment via UPI, Net Banking or NEFT/RTGS
Debenture units transferred to DEMAT in T+1 settlement

C. Screenshots of Marketing ad

D. Reviews

Google: 103 reviews with a 4.4/5.

Good Reviews
1. Almost everyone has had a very good experience with their respective relationship manager. Sucheta and Sheetal have been mentioned quite a few times
2. Great source for Passive income
3. Flexibility in terms of Risk profile and tenure
4. Simple and Smooth Experience
Poor reviews:
1. 1* -> 6-7 securities got defaulted
2. Folks confused about the change of Jiraaf to AltGraaf
3. New company

E. ICP

Parameters	ICP 1: Young Adults	ICP 2: Family Offices/ HNIs
Social Media	Linkedin, Instagram	Linkedin, Instagram
Income	25L >	5Cr >
Age	28 - 40	25 - 50
Education	Tier 1/2 University Undergrad Tier 1/2 University MBA	Tier 1/2 University Undergrad Tier 1/2 University MBA
Geography	Metro	Metro, Tier 1/2 Cities
Risk Appetite	High	Medium to High
Single / Married	Single	Married
Moved to new city	Yes	No
Profession	Startups, MNCs, Corporates	Managing Family Office as a CIO or part of the Family
Read / Listen / Watch	Podcasts (FIRE), Business News, Memes, Standup Comedy	Business and Political News, Linkedin Articles, Self Help Books, Motivation Videos, Whatsapp Broadcasts
Who do They follow?	Fin-fluencers - Ankur Warikoo, Shantanu Deshpande, Nikhil Kamath Comedians: Tanmay bhatt, Bassi, Kullu, Raunak Rajani	Finfluencers: Ankur Warikoo, Kunal Shah, Shraddha Sharma, Sharan Hegde, Kiran Mazumdar Shaw
Influencer	College/School Friends, Colleagues	Other Family Offices
Blockers	Partner, Parents	Patriarchs
Pain Points	Limited investing opportunities besides equity markets Want to invest in Fixed income securities but only have Fixed Deposits to invest which yield low returns (barely) beat inflation Have high risk taking appetite but don't have a platform through which they can invest Looking for avenues to build Passive Income Financial investments are tricky to understand. Requires a lot of effort and hence, prefer seeking advise from family/friends	Broken and Opaque Experience Traditionally, driven by Bankers, experience is fragmented and opaque, monitoring, and exiting fixed-income instruments. Illiquid Alternative Investments Investment in Alternate Investments exposure, is primarily through PE/VC - often suffer from illiquidity, opacity and difficulty in driving exits. Cashflow Challenges Despite FOs having large corpuses, investments in traditional asset classes, such as equity and commodities, can create cashflow issues for FOs

Will be prioritising ICP 1: Young Adults since:

Onboarding Young Adults is far quicker (< 3 days) vis-a-vis Family Offices (6-9 months)
Number of Young Adults are far higher than Family Office and hence more scalable

3.Competition

Startup Name	Wint Wealth	Stable Money	Grip Invest
Stage	Series A	Series B	Series B
Security Offering	Corporate Bonds + FDs	Corporate Bonds + FDs	Corporate Bonds, Invoice Discounting, Asset Leasing, RBF
IRR Returns	5-11%	6-11%
Youtube Subscribers	432k	1k	5.5k
Instagram Subscribers	37k	1k	22.6k
Linkedin Subscribers (Company, Founders)	42k, 100k	24k, 55k	32k, 25k
SEO	Poor	Poor	Good
Investors	3one4, EightRoads, Arkam,Blume, Zerodha, Rainmatter, Gemba	Matrix, Lightspeed, Titan Capital	AdvatEdge, Venture Highway, Gemba Capital
Funding	$23Mn	$10Mn	$14Mn

A. Strengths

Wider offering of securities with respect to
Strong diligence of securities as the founder's come from Securities background

B. Weakness

Little/No engagement on Social Media and Youtube
Lower ranked on SEO
No app for Jiraaf investing vis-a-vis all competitors

4.Market

TAM: INR 6Tn
- # Active Demat Accounts: 150Mn
- Investment / Demat Account: INR 0.2Mn
- Investing in Fixed Income: 30%
SAM: INR 3Tn (10% of TAM)
SOM: INR 700 Bn

- Retail: INR 100Bn
- - 1% of the total # Active Demat Accounts: 1.5Mn
  - Investment / Demat Account: INR 0.2Mn
  - Investing in Fixed Income: 30%
- HNI / Family Office: 600Bn
- - Family Office: INR 500Bn
  - - Total Family Offices with > INR 5Bn Liquid Wealth: #500
    - % Allocation to Fixed Income: 20%
    - Investment / Family Office: 1Bn
  - HNI: INR 100Bn
  - - Total # HNIs with Liquid Wealth 100Mn - 500Mn: #1,000
    - % Allocation to Fixed Income: 30%
    - Investment / HNI: 100Mn

Core Value Proposition:

ICP 1: Invest in a range of fixed Income securities to earn passive income and grow wealth

ICP 2: Invest in high yielding alternative investment asset class to earn high returns at portfolio and manage cashflows through a tech platform

5.Experiments

Jiraaf is currently in Early scaling stage and hence, have chosen Referral Program for Retail Investors (ICP 1), Content Loop and Partnership Program for HNI/Family Office Investors (ICP 2).

Experiment 1 (ICP 1): Referral Program

Brag Worth: Opportunity to generate passive income
Platform Currency: Jiraaf investing on behalf of the user
Who will you ask for a referral?: Refer a friend and get access to

Screenshot 2024-06-08 at 6.16.45 PM.png

4. How will they discover it?
Discover this when they have given a 5 star rating.

5. Why will they refer?

a. Money: INR 1,000 will be invested by Jiraaf in their next investment on successful Referral. Successful referral will be defined as investing INR 1,000 with Jiraaf by the refereee

b. Access: Access to Senior RM and Exclusive Investing Opportunities on completing of 10 successful referrals

6. How will they share?

Share it through Whatsapp because that is where most of their colleagues hang out

a. 1:1 -> Share it through Whatsapp to their colleagues and school/college friends

b. 1:few -> Share it through Whatsapp on groups

7. How will they track?

Dashboard on the app tracking the status of each referrer. The dashboard to include:

a. Status of the referee: Signed up, KYC registered, Investment made

b. Nudge the referee: option to send a whatsapp message from the dashboard itself

8. How will they keep referring?

a. Identify users that have referred atleast 1 user

b. Staggered referral program:

> 5 successful referrals, get access to a Senior RM and exclusive opportunities to invest
> 15 successful referrals, get the iPhone 13
> 25 successful referrals, get Macbook Air

Experiment 2 (ICP 2): Partnership program with IFA

Identify IFAs through available databases and reach out to them by an BD executive
The BD executive should emphasise their pitch on: Enable the IFA to differentiate themselves from other IFAs by giving access to financial products that the clients don't have
BD to invite IFAs to an in-person conference where at a 5star hotel banquet for an in-person education about Jiraaf's product offering, taxation and return expectations (important because IFAs don't usually get invited to these)
IFAs to be incentivised

Experiment 3 (ICP 2): Family Office Content Loop

Content Loop: Content to be created in the form Newsletters

Users in this case are CIOs or Patriarchs of the Family Office. They Spend 30-60 mins everyday on Newsletters reading about investing opportunities and educating themselves.

Core Tenants of Content Loop:
1. Hook: Earn high returns through Alternate Fixed Income Securities
2. Generator: Jiraaf Content Team
3. Distributor: Jiraaf's Email List