After the pandemic surged in March, a number of startups have seen significantly disrupting around the core businesses, and the revenue has seen sinking as much as 90%.
However, the COVID-19 crisis also made several startups to go back to the drawing board and search for the new business segments. Among those businesses, the Gurugram-based payments platform MobiKwik struck the blast around insurance and digital payments to soften the COVID-19 impact on revenue.
MobiKwik co-founder Upasana Taku said that in-store payments have gone up due to the cash or card payments. It is something consumers don’t want to use anymore because of social distancing causes. During the COVID-19 lockdown, MobiKwik’s revenue went down by 35%, and are still down by 25%. However, the startup has diversified itself into numerous categories from past years, and by October, they are hoping for a full recovery.
In June, MobiKwik had collaborated with e-commerce firms such as Flipkart, Snapdeal, ixigo, and Confirmtkt for launching bill payments on their platforms, through the ‘MobiKwik Biller Stack.’ In early April, MobiKwik has also launched a health insurance product over its platform to offer COVID-19 insurance to customers. Recently, the startup has launched a UPI payment link service named mpay.me to receive and send money from any UPI payment app.
Policybazaar CEO Yashish Dahiya said that they have in all 17 business units, out of which 2 to 3 units contribute to a large portion of the revenue, and a few of them have performed well in this crisis. However, 5 to 6 of their business units witnessed over 90% of revenues disturbance. They were fortunately well-capitalized, basic operations were going well, and could also handle the variations of the market without being short-term in their approach.
During the nationwide lockdown, the restaurants were shut. Still, the food-aggregator unicorn Swiggy doubled down over its grocery segment and launched a task-management service named Genie, employing its idle delivery fleet to complete orders in its new segment.
Swiggy COO Vivek Sunder said that the food delivery platform has gone through turbulence, with a dynamic lockdown yet continued due to the coronavirus pandemic. They are presently working on consumer trust and getting back consumer frequency. However, they are engaged in all hyperlocal categories, where their expertise enabled them to exist in.
Currently, they have a recovering business, and it’s safe to say that in the next three-four quarters, things will be back to full recovery, Vivek Sunder added.
Even though the order frequency has been affected, individuals continue to place large ticket size orders, which is overdue to the trend around family order, which is enhancing efficiency.
For Swiggy, COVID-19 has tended us to interact first time with kiranas, and bring on-board in a digital module, which otherwise was a physical process. Alternatively, they used a delivery fleet to create a task-based order. Alongside this, they will continue with these efficiencies in the post-COVID world, Sunder continued.
By June, food aggregators, including Zomato and Swiggy, were looking at alcohol delivery in tier-2 and 3 cities of West Bengal, Jharkhand, and Odisha.
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