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I think Indian SaaS market has 3 unique problems - and every single one of them would& #39;ve been a deal breaker in the west
1) Product
2) Distribution
3) Collection (payments)
@bhagath_g https://twitter.com/bhagath_g/status/1259193575507587073">https://twitter.com/bhagath_g...
1) Product
2) Distribution
3) Collection (payments)
@bhagath_g https://twitter.com/bhagath_g/status/1259193575507587073">https://twitter.com/bhagath_g...
1) Product - Indian SMEs have complex processes owed to a weird combination of cheap labour and years of manual work with zero tech use.
So even a small SME would have tens of employees, lots of scattered inventory, multiple small legal companies and so on. Complex
@bhagath_g
So even a small SME would have tens of employees, lots of scattered inventory, multiple small legal companies and so on. Complex
@bhagath_g
(contd) Add to that GST and local statutory compliances and you need a product that can do everything.
So the product has to be sufficiently comprehensive. We call this mid-market in the states and products in this segment cost hundreds of ks if not millions.
@bhagath_g
So the product has to be sufficiently comprehensive. We call this mid-market in the states and products in this segment cost hundreds of ks if not millions.
@bhagath_g
2) Distribution - even if you get a good product market fit - you need a great distribution strategy/execution for India.
Who does it best ? Tally.
@bhagath_g
Who does it best ? Tally.
@bhagath_g
Either you need massive feet on street or you need partners. Tally has 25k Partners in India.
@bhagath_g
@bhagath_g
3) Collections - after all that, the SMEs can& #39;t use credit cards (or won& #39;t) as they don& #39;t even have corporate credit cards.
In India card penetration is low, at 0.64 per capita for debit cards and 0.02 for credit cards.
So how do you collect ?
@bhagath_g
In India card penetration is low, at 0.64 per capita for debit cards and 0.02 for credit cards.
So how do you collect ?
@bhagath_g
(contd) Collections - either you work with your channel partners or work with @Paytm
either way, collections itself is a big issue - esp recurring collection for SaaS.
@bhagath_g
either way, collections itself is a big issue - esp recurring collection for SaaS.
@bhagath_g
Coming back to your question - best way to kickstart adoption in India
1) Start in one city
2) Scale in that city - and sign up with enough local partners/network to support
3) Scale slowly to other cities
@bhagath_g
1) Start in one city
2) Scale in that city - and sign up with enough local partners/network to support
3) Scale slowly to other cities
@bhagath_g