1/ What investors want is a pathway to *free cash flow*. The ability of people to distinguish between cash and profit is at an epidemic level.
"For Go-Jek and Grab investors will start demanding that the start-ups demonstrate a pathway to profitability." https://www.ft.com/content/0788d906-1a7b-11ea-97df-cc63de1d73f4 …
2/ Fintech's primary/most common challenge is customer acquisition cost (CAC). The best remedy is cross-selling.
"Paytm uses the payments platform as a springboard for other services, including selling gold, insurance and exchanging foreign currencies." https://25iq.com/2018/08/25/i-cant-get-no-satisfaction-and-negative-churn/ …
3/ "We charge interest of 3% a month, a lot lower than the pawnshop lenders that typically charge [interest of] over 10% a month,” says Mr Prentice. “We are disrupting the pawn shops."
He borrowed 24,000 baht at an interest rate of 1,200 baht a day. https://www.bangkokpost.com/thailand/general/1805004/man-stole-village-chiefs-buffalo-to-pay-loan-shark …
Hope that something can be cross-sold to the installed base springs eternal.
"The margins for food delivery are better than ride-hailing. Based on what we are seeing in other markets, it’s possible delivery can be more profitable than ride-hailing.” https://www.scmp.com/tech/start-ups/article/3041407/grab-expands-food-and-finance-its-transport-business-no-longer …
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