Accentiv India, a full-service rewards and loyalty company, recently went through a an overhaul and is now known as Endered India, as part of its global entity Edenred. The local brand which claims to be in the loyalty business for the last 22 years was acquired in 2000. Globally, Edenred is currently present in 46 countries and has a market cap of € 12.7 billion. At a group level, Endered posted a 24.8% increase in total revenue to €2,031 million in 2022 (January-December). Operating revenue rose 22.8%to €1,944 million in 2022. Net profit, Group share stood at at €386 million, up 23.3% in line with the growth in EBITDA
In a conversation with BrandWagon Online, Mayank Chawla, COO, Edenred India talks about the rebranding of Accentiv India and plans for the India market. (Edited Excerpts)
How is the new vertical expected to aid in growing the business?
We have three verticals. The first one is employee benefits, where we have the ticket restaurant business, the second business is fleet and mobility which caters to the ever growing market and need of managing logistics and transportation. The third business vertical that we have carved out is payment services and new markets and this is a new vertical. So, new markets comprises of the US, APAC and a little bit of Africa. Since its payment services, the gifting business that we are in India is a payment service.
This new vertical will pave the next story of growth for Edened as the APAC region is renowned for innovations on payment services. So, the core objective of our vertical’s vision is to create globally-oriented products that can become robust business lines in the future. Although this may not be currently realised, we envision significant growth in this business over the next five, seven, or even ten years. India plays a vital role in this ecosystem and is an integral part of our long-term vision.
There have been many loyalty programs run by various organisation, how is yours different?
In terms of payment solutions, our focus in the Indian market is primarily on rewards and loyalty programs. These loyalty points hold a monetary value, which can be used as a form of payment. Since the Asia Pacific region is a relatively new market for us, our initial emphasis is on this aspect. Therefore, our main business in India revolves around managing rewards for the banking sector, specifically the banking and financial services industry (BFSI) sector, as well as the non-banking sector. This allows us to effectively categorise our clients. Within the banking sector, we provide services to the largest banks in India including both private and government banks.
While within the non-banking sector, we cater to other sectors including healthcare, automobile, hospitality, FMCG and others. There are three segments, including channle programs, consumer programs and employee programs, which form part of the non-banking vertical. This is how we differentiate and serve our clients accordingly.
What is the idea behind the rebranding? Why has the name been changed?
There are a couple of reasons behind rebranding. The primary reason is that we will leverage a global brand that has a presence in 46 countries. So, the advantage of being a multinational in India, with large presence across the world is obviously positive because our clients, our future clients, they look for organisations which are stable, large, and have expertise and knowledge of the world, not just India. The second reason is to bring in the best practices, technology and knowledge from across the world to India to service our clients. The third reason and also a very important reason is to bring in global security levels to the Indian market as Edenred globally is GDPR and ISO compliant. Since we cater to the payments sector, it is mandatory to be secure. The fourth reason which is on the investment side on how much an organisation be investing on different brands and it doesn’t make sense for a company to invest money on two different brands. So, transition has to happen at some stage. So, Accentiv India will now be known as Edenred while the corporate legal name remains the same as Accentiv (India) Private Limited.
How much has the company invested in the rebranding process?
Our marketing spend is 7.5% of our total revenue and 40% of our total marketing budget is being spent on rebranding activities.
How has the company bifurcated the money spent in the rebranding process?
Most of the rebranding has happened on our presence on the Internet, which is basically social media, our website, our communication with the clients, partners and suppliers. So, most of that money has gone there, along with money being spent on the employees to show the transition on why is it happening, what are the benefits of this transition and more. We also have rebranded the Noida office, so money has been spent there too. Moreover, we are doing lot of below-the-line (BTL marketing) activities to promote the new brand. We will be focusing on key industry events targeting marketing, HR and business heads and making use of outdoor media in Delhi NCR, Mumbai and Bangalore.
How has the India market been performing for the company? What was the revenue of the company in FY23?
In terms of the overall market, the loyalty and corporate payments market is about €2.2 billion in India. It is a very fragmented market when it comes to the overall share. We have a strong position in the market and are ranked at number two, currently. Our revenue has grown 2X from 2021 to 2022 and we are targeting a 2X increase from 2022-2023 as well. Additionally, we have been investing actively in technology. We have invested 15% of our total revenue in technology in 2023.
Do you plan on expanding the services in India to all different business lines present globally?
The objective for India is to achieve the top position in loyalty and corporate payments. We feel that this plan is simultaneously ambitious and feasible. Additionally, the first milestone in this endeavour is to establish a strong presence in the market. Furthermore, we are revisiting the larger group and considering the broader ecosystem, as we aim to integrate all of our products.
When you say you are innovating on the product side, what do you mean?
We are B2B business model and are purely digital in our offerings. We offer product innovations including digital vouchers, smart vouchers and offers and deals that enhances the experience of customers. The investments on our product and technology side is close to about 40% of our total revenue.
How does Edenred differentiate itself from its competitors in the country?
We have several distinctive factors that set us apart from our competitors. Firstly, our vast experience in managing large-scale programs with organisations, as well as major associations, both globally and in India, adds credibility to our capabilities. Over the past 20 years, we have successfully handled more than 400 loyalty and rewards programs, which has given us valuable expertise in serving clients and understanding the market. Our focus goes beyond simply providing value vouchers; we prioritise the importance of delivering comprehensive service and building enriching connections with our clients.
In terms of product innovation, we offer a range of offerings such as smart vouchers, product vouchers and other innovative products that add value to our portfolio. Additionally, we place great emphasis on GDPR compliance and ensuring top-notch security for our clients. Our strong team, with an average tenure of six and a half years, has grown and evolved with us, gaining invaluable experience in managing various challenges and transitions. From initially being a service-oriented company to transforming into a merchandise and digital-focused enterprise, our team has witnessed and adapted to these shifts.These are the key factors that differentiate us from our competitors in the market.