While companies such as Paytm and MobiKwik are solving the merchant acceptance problem in the country, we have cracked the same problem on the customer side, said Ankit Singh, Co-founder, MyPoolin.
In 2016-17, investors pumped in about $219 million into the fin-tech industry and the launch of UPI (unified payment interface) and the demonetisation drive further lifted the sentiment of investors who were betting heavily on the payments revolution in India. In 2017, rise of digital payments continues unperturbed with India having over 50 fin-tech start-ups under its fold. Launched in 2015 MyPoolin made its way into the social payment space to use social networks to facilitate payments among friends and acquaintances.
“While companies such as Paytm and MobiKwik are solving the merchant acceptance problem in the country, we have cracked the same problem on the customer side where user can pay money to anyone without worrying about the mode of payment,” said Ankit Singh, co-founder and director at MyPoolin.
On the social front, MyPoolin seeks to make its app engaging among urban millennial which forms a sizable portion of its user base of 80,000 people. “We added social layers on the payments, and embedded content to the app so that users come to the platform more often,” added Singh. Strengthening its presence in the social payments network, MyPoolin introduced P2P payment on Facebook chatbot in September last year.
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MyPoolin allows the user to collect money on the platform and pay it to the merchant without leaving the app ecosystem. “It took us six months to build this product where we tied up with IMPS application programming interface of banks, they set up a nodal account, a separate escrow account with Yes Bank and ICICI Bank and we stitched UPI together along with all other payment methods to make it all work together,” said Singh.
MyPoolin is betting its success on the launch of UPI that was finally launched in 2016 to enable a better infrastructure for P2P ( peer-to-peer) payments. Prior to the launch of UPI, MyPoolin had enabled P2P transfers via debit and credit cards but it required the user to transfer the amount to the wallet first and the amount resided in an escrow account till the transaction is complete.
MyPoolin has tied-up with Yes Bank for UPI and ensures a secure mode of payments where details of the clients are captured by the bank’s account software and nothing is stored on the device. In December 2016, the company launched its any phone, any bank feature and clocked about recorded transactions worth about R3.5 lakh during the month.
For revenue generation, MyPoolin earns a commission from the partner merchants such as Amazon, Oyo or MakeMyTrip. According to Singh, largest part of the commission for the company is coming from the restaurant and hospitality partners. The commission varies from 3-20% but he pegged the average at 6%.
In February, the company clocked transaction volume of R1 crore and is growing the same by 15-20% month-on-month. Singh shared that the company has made no investments in marketing and promotions yet but it is making keen efforts to improve its visibility on online channels such as Facebook and Play Store.
MyPoolin raised first round of funding in April 2015 from a clutch of angel investors such as Rajan Anandan, Sharad Sharma, and Amit Ranjan, among others. Five months later, MyPoolin bagged the Q-Prize and got Accel Partners and Qualcomm Ventures on board as investors who put in a convertible investment of $ 250,000. Singh added he has seen investors interest in the company but it is well funded for next 6-8 months and will be in the market towards the second half of 2018.