As soon as commercial revenues met with a big smash, the pandemic has encouraged various start-ups to extend their business in more segments. Plummeting revenues made several Indian start-ups to act as a spectator for the huge commotion felt around the fundamental businesses after COVID-19. While the established ones are already struggling for survival at the moment, start-ups needed to take any influential decision to exist in the industry.
MobiKwik (Gurugram based payments firm) got flourished with the flooded digital payments and insurance just to combat the revenue losses after the pandemic. Upasana Taku, co-founder of Mobikwik at perish webinar told that in-store payments got an upbeat response just because of diminishing use of cash or card further with persisting coronavirus risks. Mobikwik’s revenues met with a decline of 35% during the lockdown on COVID-19 and can be seen still down by 25%. Due to diversification done by the company in multiple categories for a few years, complete recovery of losses can be expected till October.
In June, Mobikwik collaborated with various e-commerce firms embracing Flipkart, Snapdeal, ixigo, Confirmtkt during the COVID-19 pandemic. The association was just to assist such firms to introduce bill payments on their platforms with ‘Mobikwik biller Stack’. Earlier, in April, Mobikwik introduced a health insurance product on its boards for insuring its customers with protection-cover specialized for COVID-19. Also, it recently has developed a UPI payment link service named as mpay.me for sending and receiving money from other UPI payment apps.
Whereas, Yashish Dahiya (CEO & co-founder at Policybazaar) informed that they have 17 business units, out of which two to three units play a major role in the revenue generation and few others have helped a lot during this crisis. But, around five to six units were having more than ninety percent of revenues disordered. They were gratefully capitalized well as their core business operations are unhindered and are capable enough to deal with the market discrepancies. They don’t need to adopt any short-term approach.
The prolonged period of lockdown due to the pandemic created a huge crisis in the food industry due to restaurants shut-down during the entire tenure. In response to the shutdown, Swiggy raised its efforts for the grocery segments and also introduced task-management service. It tried using all its delivery fleet sitting idle to start delivering orders for the grocery segment.
Vivek Sundar (COO of Swiggy) told that the food delivery businesses are facing a terrifying stage of lockdown due to the COVID outbreak. They are now entirely dependent on customer’s trust and have started bringing their business back to normal. Their recovery process seems to be satisfying. Soon, they will be back to their normal revenue. The recovery of businesses is expected to end till next three to four quarters. However, orders are not coming with former frequency, but still, there is hope that customers will prefer to book big size orders concerning family orders. It will result in better efficiency in their services.
It was relatively new experience for Swiggy to work in association with kiranas at the time of COVID-19 and they brought ‘kiranas’ theme on digital platform for accepting orders digitally. Thus, they arranged their delivery fleet to deliver orders for this segment rapidly. Vivek informed that they will continue this segment after the end of the COVID era. At the end of June, food suppliers like Zomato and Swiggy also tried their hands on alcohol delivery in Tier 2 and 3 cities of Jharkhand, Odisha and West Bengal.
Pandemic has inspired businesses not only to work more on their efficiencies but also to invest in technological advancements and other essential values to escalate customer loyalty.
Shanthi Padmanabhan, VP, Customer Success, Salesforce India stated that around 20% of SMB businesses were at leisure about their technologies earlier even after making huge investments. But, today after COVID-19, one can see majority of organizations modernizing their technological solutions. He anticipated technology as a key to move out of threats and challenges posed by COVID-19.
Navneet Chahal (partner of Bain & Co) shared his opinion for the B2C sector that pandemic is an ideal time to redefine their relationships with the loyal customers thereby making the significant investment in improvising customer’s loyalty.