All super app roads lead to financial services
Super apps have a humble beginning with a core offering:
- Telecom — RelianceJio
- Search Engine—Google
- Messaging/ Social Media—WeChat, Whatsapp
- Digital Payments—Paytm, PhonePe, Bajaj, SBI
- E-Mobility—Grab, Gojek, Ola, Uber, Lyft
- E-commerce—Filpkart, Amazon, Tata
- Hyperlocal delivery — Dunzo, Swiggy, BigBasket
For large populations coming out of poverty and in to cities, with nothing but a smartphone in hand, each of these services are valuable; none profitable.
In search of profitability
They are not profitable for the simple reason that these large populations don’t have the money to pay for the services. But they do need the services, have age on their side, and can right now offer humongous amounts of consumption data. Data that can lead to ad revenue of course. But how will the services or the products in these ads be bought when there isn’t enough money?
Built on top of digital payments—financial services can help support consumption and demand through banking, loans, insurance, and investments—each of which are profitable through commissions and interest rates. Because these populations have age on their side and have access to all these services, they might create enough wealth that they are able to pay the debt in the decades to come.
Financial services
To offer the right financial services at the right time, the more data that the platform has, the better it can customise financial offerings. By combining one or more of the services listed above is how it can be done. It further helps with distribution and cross selling. Et voila—the super app is born:
- Telecom + Messaging + Digital Payments + E-commerce + Financial services—RelianceJio, WeChat
- E-mobility + Hyperlocal + E-commerce + Digital payments + Financial services—GoTo, Grab
- Digital Payments + E-commerce + Financial services—PhonePe, Paytm, Bajaj Finance
- Hyperlocal + E-commerce + Digital payments + Financial services—Tata
