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India’s online payments story

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India’s online payments story
India’s online payments story

Online Banking ePayments (OBeP) is a type of payments network, developed by the banking industry in conjunction with technology providers, specifically designed to address the unique requirements of payments made via the Internet. And in this day and age of high internet penetration coupled with rising smartphone ownership, there have been online payment companies which have risen from being SMEs to controlling major market share.

Payu India’s online payments story

PayU India happens to be the leading example of the Indian online payments story. In 2011, Ibibo rolled out its payment gateway innovation called PayU in the Indian market, to permit websites to integrate e-commerce transactions through online payments. With PayU, a business can process payment by using credit cards and debit cards (for more than 50 banks), and online banking for banks including ICICI, HDFC, SBI, and Axis Bank. PayU India, a 100% subsidiary of PayU, makes up the epayments division of South African media and technology conglomerate Naspers.

In 2016, PayU acquired Citrus Pay for $130 million, in an all-cash deal – the largest ever M&A cash deal in the history of Indian FinTech! Naspers, the parent company of PayU, has also been an early investor in Flipkart. Through its subsidiary Ibibo, Naspers also completed the successful acquisition of online bus booking platform Redbus. This makes the Citrus Pay acquisition their second buyout in the country.

Nearly half of the bills paid in the US during 2013 were done via electronic bill payment. Also, during 2014, nearly 48% of all online shopping in North America were made with a credit card. India also seems to be on the same path, especially after the Indian government’s policy changes towards a cashless economy, of which ‘demonetization’ is a prime example. Globally, online payments were expected to exceed US$3.2 trillion before 2020! And India is surely going to increase its share in the pie of worldwide electronic payments.

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Top 9 Global Financial Institutions

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Top 9 Global Financial Institutions
Top 9 Global Financial Institutions

Top 9 Global Financial Institutions.

The international financial system is regulated by organisations which work towards raising the global standard of living. The following institutions promote global trading and financial communications, and stimulate the economies of underdeveloped countries.

Let us have a look at the top 9 such global financial institutions.

Top 9 Global Financial Institutions

Top 9 Global Financial Institutions

 

Top 9 Global Financial Institutions

Top 9 Global Financial Institutions

 

Top 9 Global Financial Institutions

Top 9 Global Financial Institutions

 

Top 9 Global Financial Institutions

Top 9 Global Financial Institutions

 

Top 9 Global Financial Institutions

Top 9 Global Financial Institutions

Top 9 Global Financial Institutions

Top 9 Global Financial Institutions

 

Top 9 Global Financial Institutions

Top 9 Global Financial Institutions

 

Top 9 Global Financial Institutions

Top 9 Global Financial Institutions

 

Top 9 Global Financial Institutions

Top 9 Global Financial Institutions

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Netflix: how a company turned light entertainment into serious business

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Netflix: how a company turned light entertainment into serious business
Image credit : fortune

Netflix: how a company turned light entertainment into serious business. Owing to its nature of business, Netflix’s operations only affected the neighbourhood movie rental stores initially. But it was in 2007 that Netflix took the decisive step of diving into online streaming, a decision that was bound to upset the media industry’s traditional business models and transform Netflix into a global powerhouse. And today, Netflix is one of the most valuable media firms in USA, rivalling Disney and exceeding Comcast, which owns NBC Universal.

Let us have a look back at some numbers which narrate the growth story of Netflix.

SUBSCRIBER GROWTH
At the end of its first year as a public company in 2002, Netflix had less than 1 million subscribers, and today that number is more than 130 million – which is roughly the size of the entire population of Mexico. And if we count from the end of 2011, the firm has added more than 100 million subscribers, posting an impressive CAGR of 25% in 2016 and 2017.

Netflix: how a company turned light entertainment into serious business


INTERNATIONAL GROWTH

Increasing global presence is one of its primary agendas, and the management at Netflix is of the opinion that that overseas growth will help offset the saturation in the home market in the coming years, making markets like India and Brazil of prime importance.

In 2017, the firm’s international subscribers outnumbered US memberships for the first time. The company hit another milestone in the most recent quarter, when revenue from international subscribers exceeded that from the US for the first time. But analysts warn that competition overseas is likely to be aggressive, and as Netflix targets price-sensitive markets like India, it may not be able to charge the prices it does in the US. Especially when Netflix is investing heavily on product development. Netflix has already spent more than $5bn on licensed and original content in FY 2017-18 and expects that figure to exceed $8bn by the end of 2018.

Netflix: how a company turned light entertainment into serious business


RISING VALUE

While the company went public in 2002, it was after 2014 that its share price has seen a meteoric rise. The disappointment over the recent subscriber growth notwithstanding, Netflix has been successful in maintaining a steady growth rate over the years.

Although much of the growth since 2012 has been riding the stock market wave, the performance of Netflix still stands out. Last year, the share price rose more than 55%, while the S&P 500 climbed about 20%.

Netflix: how a company turned light entertainment into serious business

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India’s Unicorn Club: 10 Indian Unicorn Companies

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India’s Unicorn Club: 10 Indian Unicorn Companies
India’s Unicorn Club: 10 Indian Unicorn Companies

India’s Unicorn Club: 10 Indian Unicorn Companies. Unicorns are privately-held start-up companies which are valued at $1 billion or more. And as the ease of doing business has been a buzzword for the current Indian government, a conducive environment for start-ups is certainly a barometer of a country’s economic growth.

Let us look at India’s 10 unicorn companies.

Company Sector Total valuation (in billion $)
Flipkart eCommerce 11.6
Snapdeal eCommerce 7
PayTM Fintech 5.7
Ola Transportation 3.65
MuSigma Analytics 1.5
Hike Messaging service 1.4
Shopclues eCommerce 1.1
Zomato Foodtech 1
InMobi Advertising 1
Quikr eCommerce 1

New entrants in 2017 & 2018

Company Sector Total funding (in million $)
PayTM Mall eCommerce 645
Swiggy Foodtech 469
Policy Bazaar Insurance 363.5
Byju’s Edutech 244

The pace has clearly increased in 2018. For the first time, two online ventures entered the unicorn club in one month: Swiggy and Policybazaar. While Swiggy became the youngest to enter the club, Policybazaar took a decade to join.

Venture investing has traditionally followed a recurrent pattern of euphoria and caution. There was a near-two-year phase from late 2015 to mid-2017 when investors became much more discriminating in their evaluation process and the investment volume dropped from the highs of 2014 and 2015. Now we are in the midst of the next boom phase and will likely see many more companies raise large rounds.

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