Acquisition project | Vyapar Apps | Poorna

PRODUCT

Problem: MSMEs currently use pen and paper to manager all their billing, inventory, purchase, credit and party receivables/payments etc. This is leads inefficient management of the business and hinders growth and sometimes causes the business to shut down. Issues with paper billing

1. 1. Tiresome to store and fetch records.
   2. Almost impossible to track payments on time.
   3. No view of the stock status and trends in stocks
   4. Party payment reminders.
   5. Unable to bill quickly for FMCG or Kirana space.
   6. Compile sale and purchase bills every month/quarter to make GST compliances - Tedious task/Heavy cost involved (payments to CA).
   7. Unable to grow business digitally - say create a domain or online store to share items for purchase.
   8. Track expenses of the business and do optimizations wherever necessary.
   9. No visibility of price and discounts for the customers.
   10. Cannot create a brand and printer heavy etc.

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Product Description: Vyapar is a Billing and Accounting Software designed for MSMEs of India. Idea of the application is that the merchant can easily move his business from Pen and Paper to Completely Digital set up without help of any additional training on how to use the software.

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Have listed core features of the product below.

1. Create GST bills and multiple kinds of sale invoices formats.
2. Manage Inventory - Built on FIFO model (First in First out), restricted usage when it comes to pharmacy, perishables and couple other industries.
3. GST reports - Readymade GST reports to make GST compliances easy. (GST Filing and Annual ITR returns)
4. Party payment reminders - Sending automated payment reminders to parties which have to make payments via WhatsApp.
5. Quick billing - A POS model to make quick billing at retail stores (Kirana, Supermarket, and any small retail stores)

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Ad from Play store listing highlighting the Invoice and Inventory modules.

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Pricing

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Vyapar follows tiered pricing with different features opening for different price slabs.

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Product is currently available in 2 different platforms Mobile application (Android) and Desktop Applicaiton (Can be Download from Web app)

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Mobile Application - Freemium model with 95% of the features open for usage and will be used to fuel desktop downloads.

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Desktop Application - Has a fifteen-day trial period in which users can basically have access to all the features of the application and post which access to feature gets locked.

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Core business of the Vyapar App is desktop license sale and in accordance with that the CTAs are "Download for Desktop" rather than "Buy Now" or "Pay Now".

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Product Overview

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Home Screen: Has sales reports, receivables, payables and stock position as basic visibilities. Primary CTAs in the home page asks users to make "Sale" and "Purchase" actions.

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Online Store: Enables users to move from traditional mom and shops to online where users can place orders and from WhatsApp.

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Product comms across platforms

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Webpage: The webpage currently sees 9 lakhs users month on month and app tries to highlight moving away from paper bills to digital on a consistent basis to these users with the Pop up as below

1. YouTube: Company is promoting users from different industries to try out Vyapar and transition to make easy billing and accounting solutions.

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3. Instagram:
4. 1. Has podcasts with regular GST updates and updates happening in the Desktop and Mobile Application.
   2. Main page with 32K followers primarily highlights Billing, Inventory and Accounting as three core modules of the application.

Additional Features - E-Invoice generation, E-way Bills, Delivery Challans, Quotations, WhatsApp greetings (festivals and other discount updates), Party reports, Quick Billing (POS) etc.

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​USERS​

Objectives to achieve

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Micro Objective #1: Characterizing User Profiles​

-Why do users move from pen and paper to digital?

-What is it they search for to make this decision?

-What could be main concerns of the user before using the App?

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Micro Objective #2: Identifying Effective Acquisition Channels

-What was first touchpoint with the product?

-What made them click or navigate into the website after discovery?

-Was it easy to understand what to do after product discovery? What specific benefit triggered the user to click/login?

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Micro Objective #3: Understand the experience of app usage.

-How easy was it to use the app?

-What are the things that you liked and disliked?

-Did the problems existing before the purchase solved for after using the application?

-Would you renew your license post license expiry?

User interviews

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Key Takeaways:

1. Business above 50 lakhs are looking to get some structure into the business and want to adopt digital solutions.
2. Ease of use and simplicity is highlighted in almost all interviews.
3. Billing stands as the primary use case for customers across all segments
4. For Manufacturing Inventory management is paramount.

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Demographics summary​

Of the total 10 million+ users registered on Vyapar, we have an MAU of 9L Vyaparis who are managing their business on Vyapar. Of the 9L MAU 6 lakhs are Mobile paid users and 3 lakhs are Desktop paid users.

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Customers of Vyapar are present in almost every part of India and a few neighboring countries too. The top 5 states where Vyapar customers are present are Maharashtra, Uttar Pradesh, Madhya Pradesh, Rajasthan and Tamil Nadu.

Business category Split

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Vyapar is used by all kinds of MSMEs (retailers, wholesalers, distributors and manufacturers). Similarly, Vyapar customers are engaged in various kinds of business activities, with trade categories such as grocery, pharmacy, mobiles and hardware being some of the top ones.

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Business by Type

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ICP PRIORITIZATION

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Bases on the existing framework, have had categories users into ICPs. Refer below:

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Influencers:

1. Word of mouth, users who have started using the application and are seeing tangible benefits in day-to-day life.
2. Chartered accountant, GST filings and annual compliance is made easy for these set of people when you have readymade reports that can be uploaded to GST portals with a click of a button.

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Blockers:

1. Intent, this seems to be the primary blocker for users who still use traditional methods of billing and accounting. Showing the upside to these users is very tough as the gains are realized only after using the app for a certain time period.
2. Trust, data breach and privacy of the gets highlighted as the businesses becomes big and also as they have 3/4 employees working on the store etc. Sale and Purchase details are paramount for any businessmen.
3. Desktop most of the businesses currently do not own a desktop. Hardware is primary starting point for us to even try to pitch the user about the product.
4. CA channel, needs additional features that makes their way better. Will sway towards apps that are incentivizing for license sales

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PRODUCT CATEGORY AND COMPETITORS

Keywords: Below are daily search volumes for keywords related to the product and competitor. Search volumes considered only on Desktop and in the Indian context.

1. Billing software - Has 11K variations and overall, 1.5 lakhs search volume.
2. GST Billing - Has 13K variations and overall, 3 lakhs search volume.
3. Vyapar app - 299 variations and 60K search volume
4. 1. Zoho, Mybillbook, Busy, Marg, Pagar book and Khatabook pop up as primary competitors.
5. Resource: Billing and Accounting software: Overview, Keyword Overview (semrush.com)

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Strengths

1. Better SEO and SCM setup
2. Product is very easy to use compared to other platforms.
3. Cheaper and better customer support

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Weaknesses

1. Right acquisition platforms
2. Automated Demo channels to better convert the funnel.
3. Many plans to choose from and customers gets lost while decision making.

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​MARKET SIZING

TAM:

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SAM:

Based on the assumptions from the existing data base of Vyapar users, have tried to categorize MSMEs into business types as we have already established that all the categories are serviceable by Vyapar.

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Assumptions:

1. Business type as per Demographics summary mentioned.
2. Assumed as certain % for users with < 40 lakhs turnover.
3. Service industry is not addressable market or not in product category.

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Color code -

1. Green - Total addressable
2. Yellow - Partially addressable (20% assumed)
3. Red - Un addressable

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Based on the above logic and business category, we have around 1.8 crore retailers, 1.45 crore retailers and 82 lakh distributors. On pareto principle roughly 20 lakh Manufactures can be targeted here.

Overall serviceable addressable market is 4.2 crore MSMEs.

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​SOM:​

At a 25% market share at maturity, considering below factors.

1. Digital awareness
2. Competition
3. Business shutdowns
4. New businesses in the market
5. Digital literacy
6. Intent

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We have around 25%*4.2 crore, approximately 1.2 crore businesses can be onboarded onto the platform.

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Core value proposition:

1. "Ab banao business Digital" will be appeal to all the users to who want/need to transition their business from Pen Paper model to Digital systems.

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Marketing Pitch

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Highlight different features for different business categories, keeping billing and accounting as the core value proposition of the product.

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CHANNEL FOR AQUISITION​

JTBD

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Stage

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The company was last valued at $120 million in its Series B round (January 2021) with participation from Westbridge Capital as the lead investor with participation from existing investors India Quotient and India Mart. We are currently grossing at $8 mn per year revenue. Considering the scale and userbase this can be put under mature scaling stage.

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First Channel - Referral (Offline)

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Problem:

• Currently there is a significant calling team of 600 people spread across Internal tele sales, Support, Success, Engagement and Renewal. But none of the channels right now have mandate or systems for acquiring referrals from "New successful sales" or "Renewing customers".
• Existing referral program has customized link generated for a each agent to share with users if they opt to refer users to the platform. This functionality is also only built for Sales teams as now as the users downloading application using Agent link will be assigned to the same agent.

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Solution:

Create a utility of sorts in the existing calling dashboards for all the calling agents across teams to gather referrals (user mobile, name and email) from happy customers and drop them in the remarks while marking calling disposition.

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1. Incentive Structure for Referrals - (Renewal, Success and Support teams)

• • On Lead Verification by the referral team: ₹100 - This is to ensure we have enough top of the funnel to kick start the program and the leads are to be verified for business and validity.
  • On Lead conversion: ₹250 - This helps keep up the agent motivation to keep generating referrals and also acts as additional source of revenue.

2. CAC:

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3. Platform currency: 

• extended 15 days validity (on the nearest expiry plan) after referred lead purchases Vyapar desktop/combo license. The extended validity will be reflected within 10 business days after the referred lead purchases the license.
• This would in turn help extended usage of the application and would push for higher retention.

4. Pitch for referral program

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5. Tracking Metrics: At each department and agent level we build visibility of the referrals received and push for the steady state of referral program.

Second Channel - Referral (Product Led)

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Problem:

• Currently there is standalone place in the platform for users to refer interested business with no benefits given as such.
• Very push-based approach and not at all seamlessly integrated into the application. Primarily focuses on monetary gains as platform currency, which fails by design only to generate less intent design.

Referral page

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Communication- Very basic with zero specialization

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Solution 1

Create referral program that has touch points at each successful screen when user uses Vyapar. Will be trying to capture all the happy screens or AHA moments to initiate referral.

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Platform currency: 

• extended 30 days validity (on the nearest expiry plan) after referred lead purchases Vyapar desktop/combo license. The extended validity will be reflected within 10 business days after the referred lead purchases the license.
• Priority customer support
• Discounted prices for GST compliance plans
• This would in turn help extended usage of the application and would push for higher retention.

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Process

1. Desktop - User to manually enter mobile number and name of the users.
2. Mobile - To integrate phonebook from the system to share referrals.
3. Communication - Personalized messages (SMS, WA, Email) to be triggered to the users post submission.
4. After a successful license purchase user to receive a message of congratulations. Asking for feedback of the program.

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Solution 2​

​Business Context - We have a huge database of parties saved by our Vyapar Users. The Purchase Parties saved by Vyapar Users, will be most likely a business and a potential sales lead for us. Hence, we can reach out to these customers via WhatsApp Messages to collect intent and generate Leads for the calling team.

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Objective: Send Promotional Message to Purchase Parties after they receive the Purchase Transaction Message from Vyapar User to Collect Intent and Generate Sales Leads

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Process Flow:

As we know, the Transaction Message that we send is a Utility Message (Non-Marketing), and any Utility Message that we send within 24Hrs of this Message will be free of Cost. No CAC involved here.

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Tracking:

Once the lead is collected the same will assigned to an agent and will call for demo and license sale. Similar incentive structures as in offline channels can be set up here as well.

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