Ever wondered what it takes to attract top investors to your startup?
Or how to make your product truly stand out in a crowded market?
In this interview on ‘The EOD Show,’ Eko’s co-founder Abhinav Sinha joins MyOperator founder Ankit Jain to dive deep into the untold stories and strategies that set this groundbreaking startup apart.
Founder Reveals Secret To Building Multi-million Dollar Fintech In India!
What Does Eko Do?
Eko is a company with a fintech landscape that provides digital financial services, particularly targeting the unbanked and underbanked populations in India. The company focuses on making banking services accessible to those who may not have access to traditional banking infrastructure, especially in rural and semi-urban areas. Below are the services that Eko concentrates on.
1. Domestic Money Transfers
2. Mobile Banking Services
3. Bill Payments
4. Micro-Insurance and Financial Products
5. Aadhaar-Enabled Payment Services
6. Merchant Payments
7. Corporate and Government Partnerships
8. Financial Literacy and Education
How Does Eko Make Money?
“30,000 to 40,000 crores worth of transactions happen in India only through Fintech platforms like Eko” – Abhinav Sinha
Eko brings in money through different channels making the most of its position as a financial go-between and service provider. Here’s how Eko earns its keep:
1. Transaction Fees
Eko has a fee for domestic money transfers. When people send or receive money using Eko’s platform, they pay a small percentage or a set amount as a transaction fee. This brings in a lot of money for Eko because they handle so many transfers.
Eko makes money from utility companies and phone companies when people use Eko to pay bills or add credit to their phones or TV services. Eko might also charge customers a small fee for using these services.
2. Agent Commission
Eko works through a big network of agents, who help customers do transactions. The company gives a part of the transaction fees to these agents but also keeps some as revenue. This approach motivates agents to push more transactions while letting Eko make money from each one.
Eko might also ask for fees to bring on new agents or to give them the training and tools they need to use the platform.
3. Partnerships and Commissions
Insurance and Financial Products: Eko teams up with insurance companies and financial institutions to provide micro-insurance and other money-related offerings. The company gets a cut for every policy it sells or financial product it helps set up through its system.
Corporate and Government Payouts: Eko works with big companies and government groups to hand out payments like subsidies, wages, or public benefits to people. Eko makes money by charging these organizations for its payout services.
4. Merchant Payments
Eko offers digital payment solutions to small businesses and merchants. When customers buy things using Eko’s payment platform, the company charges merchants a fee to process these transactions much like payment gateways or POS systems do.
Eko might provide extra services to merchants such as analytics, customer management tools, or advanced payment solutions, and charge a fee for these.
5. Subscription Fees
Eko may offer premium or additional services to users or businesses. These could include faster money transfers higher transaction limits, or exclusive financial products. These come with a subscription fee.
6. Interest and Float Income
When users add money to their Eko mobile wallets or when funds stay in transit during transactions, Eko can make money from these balances (known as float). This matters a lot for mobile wallets where users might keep money for later use.
Eko might team up with banks to offer certain money products, and in return, it may get a cut of the money made from these products.
7. Data Analytics and Insights
Eko collects a ton of data on how people buy things, act online, and handle money, especially in areas where many folks don’t use banks much. This info can be super useful for banks, marketers, or people doing research. Eko might make money by selling these insights or reports.
8. Aadhaar-Enabled Payment Services (AEPS)
Eko charges for transactions done through Aadhaar-enabled payment systems. This covers withdrawals, deposits, and balance checks done using Aadhaar-based fingerprint scans.
9. Custom Solutions for Businesses
Eko may provide custom financial services to big companies or organizations. These could include specialized payment systems large-scale money transfers, or branded services. The company charges a fee or takes a cut of the transaction amount for these offerings.
Who are Micro-Entrepreneurs in India?
Micro-entrepreneurs in India are individuals who operate small businesses or enterprises with a limited number of employees, and minimal capital investment, and often cater to local markets. They are typically self-employed individuals or small business owners who are involved in various sectors like retail, agriculture, handicrafts, services, and more.
Why did Bill Gates Invest in Eko?
Bill Gates Investment in Eko, through the Bill & Melinda Gates Foundation was a part of their bigger plan to boost financial inclusion and help underserved people. The Gates Foundation has been busy supporting efforts to give unbanked and underbanked folks access to financial services in developing countries.
Eko’s goal to close the financial inclusion gap in India fits well with what the Foundation wants to achieve. Below are some of the main reasons for Investment.
- Matches Financial Inclusion Aims: The Gates Foundation wants to help poor people use banks and money services. Eko’s work to give basic banking to people in India who don’t have it using phones and local helpers fits right in with this goal.
- Innovative Approach: People thought Eko’s plan to use phones and local helpers to give money services was clever and could grow big. This plan could help millions who can’t get to regular banks.
- Chance to Make a Difference: The Gates Foundation invested in Eko to back a company that could make a big difference in society. Eko helps people in rural and semi-urban areas put money aside, move cash around, and use other money services, which helps them become more stable.
- Boosting the Whole System: This investment was also part of a bigger plan to give a push to financial tech in India. By putting money into companies like Eko, the Gates Foundation helps to create a money system that works for more people.
Eko Marketing Strategies
“Competitive Advantage comes in the Delivery of the Customer Experience” – Abhinav Sinha
Eko’s marketing and customer engagement strategies aim to reach people without bank accounts or with limited banking access in India. Given its target audience, Eko has used several groundbreaking and local strategies to promote its services.
1. Agent Network Growth
Eko’s main plan has an impact on creating a big group of agents in rural and semi-urban areas. These agents often local shopkeepers or small business owners, serve as Eko’s representatives helping customers to carry out transactions and use other financial services.
By teaming up with local agents who are trusted community members, Eko manages to build customer trust, many of whom might doubt formal banking institutions.
2. Localized Market Approach
Eko adjusts its marketing messages to fit the local languages and cultural contexts in building products for India from its varied user base. This helps make the brand more relatable and easy to access for users from different regions and backgrounds.
Eko sets up local events, training sessions, and community meetups to teach potential customers about the advantages of using its services. This hands-on method helps break down barriers to adoption.
3. Digital and Mobile Marketing
Eko understands the importance of mobile phones used in India. So, they focus on mobile marketing to reach users. This includes SMS campaigns, app notifications, and easy-to-use mobile ads that show users how to use Eko’s services.
Eko has teamed up with telecom companies. This allows them to offer their services through mobile networks. Users can now access financial services without needing a smartphone or internet connection.
4. Referral Programs
Eko rewards existing users and agents who bring in new customers. This encourages users to promote Eko and helps grow its customer base.
Eko shares testimonials and success stories from happy customers and agents. These stories build trust and show how Eko’s services make a real difference.
5. Partnerships with Government and NGOs
Eko has joined forces with government bodies and NGOs to boost financial inclusion. These team-ups help reach underserved communities and align with government plans to improve access to financial services.
Moreover, it takes part in CSR activities that focus on financial literacy and empowerment, which strengthens its dedication to social impact.
6. Adapting to Regulatory Changes
“ Learning to say “Yes” is key to success in technology trends” – Abhinav Sinha
Eko has stayed flexible in adjusting to regulatory shifts in the financial sector. By sticking to government rules, Eko has gained the trust of both customers and regulators establishing itself as a dependable and safe service provider.
7. Branding and Awareness Campaigns
Eko’s branding stresses simplicity and ease of use aiming at users who might not know much about complex financial products. The branding highlights empowerment and accessibility.
Moreover, it depends on local marketing, but it also takes part in wider media campaigns through radio, TV, and social media to reach more people in cities where knowledge of digital financial services is on the rise.
8. Customer Support and Education
Eko puts money into teaching its users how to use its services. They do this through how-to guides, help desks, and training for agents. This focus on teaching helps to cut down on problems and get more people to use their services.
By providing support through many ways, like call centers, chat services, and face-to-face help from agents, Eko makes sure users can get help when they need it.
To sum up, Eko’s marketing plans are based on getting what their target audience needs. They use trust, community involvement, and tech to bring more people into the financial world.
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