Acquisition project|Refyne - Salary on Demand

📄

Acquisition project|Refyne - Salary on Demand

Acquisition Project - Refyne Salary On Demand

Methodology for choosing

Refyne

I've worked in unipe.money, but we were still pre-pmf when we pivoted so I chose refyne.co.in which was a direct competitor who started slightly earlier than us and currently have raised $102 million. I've chosen a product salary on demand which was the major prospect for unipe as well.

Details about the product

Stage Chosen [Early Scaling]
They Started with Salary On Demand and have now evolved into an entire suite of services and tools for the financial wellness for an Employee.
It's an B2B2C Company where the stake holders involved are

Refyne
Employer (MSME/Large Enterprises)
Employee

Onboarding Flow

B2B

This is the primary integration and takes the highest amount of effort from our end
B2B integration involves the following steps
- Initial Onboarding for an internal HR/Point of Contact from the company.
- This Point of Contact will then create a list of employees and upload on the SaaS platform. This is used as a whitelist as well as a source of truth for all the employees associated with this Employer as well as what is their Monthly salary and their Employment Status (Active/Exited)
- The Point of Contact will also upload the attendance details## for all the employees so we can calculate a earned salary that will be accessible to the employee

B2C

The first step for the employee is to download the Refyne App and create an account for themselves, where they'll choose the Organization they belong to and they'll get access to the app.
Post KYC which includes (PAN, Aadhaar and Bank) they user can access salary on demand. This is the money maker for us and what will bring revenue in to the org
Whenever the employee makes a withdrawal on their earned salary, Refyne charges a processing fee (upto 2%##) based on an earlier negotiated rate and money will be instantly credited to their account.

Understanding the User

Based on Refyne's Video [1]

60% of Employee Say On Demand Salary is a deciding factor for their next job
Companies who have used refyne have seen
- 2.6x faster hiring
- 36% improvement in retention

Aha Moment!

The PAIN POINT for employers is that these companies need a lot of working capital and cannot afford paying employees advance out of their pocket, they also struggle with a high attrition rate of around 35%[4]

Our product helps them to retain employees better, hire them faster due to KYC as well a give them the benefit of advanced salary.

Below is another excerpt from Refyne's own blog[3] related to the American Work force and is a strong indicator for growth in this sector in India.

Features

Feature	Value For B2B	Value for B2C
Payroll Management	High - Get an eagle eye view of their entire workforce	Medium - they get salary slips regularly as well as experience letters
Advance Salary	High - Get better employee retention	High - Due to low salary they can deal with cash cruch that occur throughout the month
Digital KYC	High - Helps rule out lot of cases of child labour that happen, also they can be sure of the identity of the employee	Medium - Faster and Smoother Onboarding
Insurances	Better Social Signaling for their employees that the company cares

This shows that they are aligned with the their B2B as well as B2C needs

ICP

Below are the details for the B2B Customer that we have

User Patterns
Particulars	ICP 1	ICP 2	ICP 3
Name	Savy Sole Proprieter	humane HR	Staffing Agency
Description	Small Businesses	large businesses with multiple units	these are prevalent in manufacturing industries and look over a large part of workforce provided to big companies
Company Size	30-100	100+	500+
Annual Turnover	2.5-5Cr	5Cr+	Cr+
Domain	Manufacturing/Trading	Any	Staffing and Workforce
Job Role	#owner, #founder	#hr, #unit-head	#staffing
Org Structure	Free and Fast Moving	large, slow moving bureau cratic	fast moving,
Friction To Integrate	Low	Medium	Medium
Influencers	- Low Capital availablity (we provide the advance) - Free Hrms	- High Bureucracy, so one process gets outsourced - unified KYC so verification is complete	- KYC is very important since they are most affected by churn - They can market `Advanced Salary` further down to employers who are using their staffing.
Blockers	- Additional Proccess	- can require lots of approvals - might have to deal with labour unions for processing fees	- lot of users may not have proper documentation needed ( I've seen real cases of child labour under fake aadhaar) - due to high churn updates will be frequent to the system
Online	LinkedIn, IndiaMart, Bankbazaar, Paisabazaar	LinkedIn, Quora, GSuite	HRMS
Offline	Business Meetups, Developing Area	HR Conclave, Traning Seminars	Around Big Entreprises, Tea Stalls and Word of Mouth
Spending Patterns	Stingy and cash crunch, need loans to manage flow	Have a well defined structure and tieups with lots onf institutions	Struggle to manage flows and need lot of credit as well as CA Support

On the B2C aspect, all of the employees are the customer and they are in a way already acquired as we already have their details and can run referral programs and

Market Size Analysis

Using Credit as an indicator of Growth/New Industry Setup based on an TransUnion Report

Maharashtra, Gujarat, Delhi, Tamil Nadu, and Uttar Pradesh account for 47.2% of
the origination value.[5]

Clubbing this with Employment Details from RBI Report [7] and an Average Salary of 17k in india[6]

Screenshot from 2024-06-08 16-44-52.png

TAM, SAM and SOM

Validation

The above data for acquired user salary flow matches very closely with what they have on their website

Acquisition channels

Existing Channels

Channel Name	Cost	Flexibility	Effort	Leadtime	Scale
Inside Sales	Mid	High	Hidh	Low	High
Online Ads	High	High	High	Low	Low
Refferrals	Low	Low	Low	Low	High
SEO	Low	Low	Med	High	Med
Youtube	Low	High	Low	High	High

Inside Sales:

We have a dedicated sales team that directly connects with HR departments and decision-makers within companies.
Our team will reach out via phone calls or emails, highlighting how Refyne's financial wellness solutions benefit both employees and businesses.

Online Ads:

We could be running targeted ads on search engines like Google or social media platforms like LinkedIn as well as MSME sites like India Mart.
These ads would target HR professionals, CEOs, or CFOs searching for keywords related to employee financial wellness, salary on-demand, or expense management.

Referrals:

We might incentivize existing clients (companies or employees) to refer new users through referral programs.
This could involve offering discounts or rewards for successful referrals.

SEO (Search Engine Optimization):

Our website content should be optimized with relevant keywords to rank higher in search engine results pages (SERPs) for terms like "earned wage access India" or "financial wellness platform for employees."
This would attract organic traffic from potential clients searching for such solutions.

YouTube:

We leverage YouTube for various marketing purposes:
- Educational videos explaining how earned wage access works and its benefits for employees and employers.
- Customer testimonials showcasing positive experiences with Refyne.
- Short explainer videos highlighting specific features of the Refyne platform.

Gaps Identified

SEO

Keywords like advance salary, get advance now, employer payroll solutions are not indexed properly, we can add content around these to improve results on google SERP

Referral

Though there's Platform Currency and Referral System, there's little incentive to repeatedly refer users.

Quora

Presence is less on Quora, but impact of quora can be very high

Experiments

SEO

Add new keywords that will improve SERP ranking for Refyne

Referral Leaderboard

We will make a leadearboard to so referrals are incentivised more and we can give more dopamine hits to the user and improve social status rewards as well