Srinivasa: Razorpay funded early growth with enterprise revenue before targeting SMBs
Bala Srinivasa · The Framework to Build Category Creators in India ft Bala Srinivasa,Managing Director-Arkam Ventures · Aug 30, 2022 · at 22:49
Bala Srinivasa discusses how fintech unicorn Razorpay sequenced its go-to-market strategy to build financial sustainability before pursuing small businesses.
0:00 / 0:18exact quote · 18.8s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“If you look at Razorpay, one of the things they did really well in the initial days, right? The bulk of their revenue was coming from larger enterprises. But if you talk to Harshal, he would always say our game plan was always to go after small businesses, but they were clever enough to know small businesses wouldn't pay the bill early on, right?”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Bala Srinivasa
Srinivasa: Mid-to-large Indian enterprises will pay ₹1-2 crore monthly for SaaS
“What works in their favor, which is great news for B to B SaaS companies looking at India, even India alone is B to B SaaS for medium to large enterprises in India. I think the time has come. Companies are willing to spend They are willing to spend one to two …”
Srinivasa: KrazyBee maintains 70% repeat rate and net margin profitability
“Crazy Bee has a 70% repeat rate, and they have people who come back to them two, three times a year. Right. And this completely changes your business model versus a traditional MBFC or however you lend, and it's actually a profitable model. Crazy B is profitab…”
Srinivasa: KrazyBee customer acquisition costs ₹300 versus ₹7,000 for banks
“Someone like a crazy bee can acquire a customer for 300 rupees. A bank today for a credit card customer, it costs them 7000 rupees, right?”
Srinivasa: Signzy reached over $10M ARR in three years selling to Indian banks
“And as a result, they've been very, very successful in the Indian financial landscape in terms of getting to 10 plus million ARR over three years, right?”
Srinivasa: Low willingness to pay pushes Indian SMB SaaS into lending
“We have seen companies with 50, 60,000 customers, but the propensity to get the customer to pay is very, very low. And as a result, you then pivot into, Hey, I've got all this customer data. I'm now going to get, for example, into FinTech lending, which seems …”
Arkam Ventures avoids brands targeting only India's wealthiest ten million
“What we are less likely to invest in is, for example, if you said Hey, I am building a very high-end fashion brand just for the top ten million in India, right? Because the price points are such that you know, it is something that we think we can be very profi…”