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YUVA PAY

NEO-BANKING PLATFORM FOR THE UNCONNECTED & UNBANKED

India, Karnataka
Market: Financial services
Stage of the project: Operating business

Date of last change: 09.06.2021
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Idea

YP is the Neo-Bank for the Unbanked & Underserved population of the world. It is a virtual bank which fosters financial inclusion at the grass root level. Through its innovative technology, which works even without the internet, it is bringing about a revolution in the way the developing and under-developed world will conduct their finances. Imagine billions of dollars, which have been transacted in the form of cash, can now be digitally managed basic banking services, Payments, Micro Savings, Micro Loans, Micro Insurance, Remote Collections, Pre-Paid Card, Credit in a single platform.

Current Status

• Launched - Nov 2019
• Platform Revenue (GMV) - $12.25Mn per month (May 2021)
• Total GMV - $44.5Mn+
• Total # of Household Onboarded – 190k+
• Average Value of Transaction - $46.00/Month
• Customer Acquisition Cost - $0.75
• Average Revenue Per House-Hold - $1.9 Year
• Total Revenue - $150k (Till Date from the date of launch)
• Strategic Partners – VISA, YES Bank, ICICI Bank, Indus Ind Bank, RBL Bank, Bima Plan, ICICI Lombardo, Bajaj Allianz.
• Global Expansion – Morocco, Nigeria, Senegal, Turkey, Djibouti & Philippines

Market

1. SMEs: Small and Medium Scale Entrepreneurs
• Crunch in working capital, insufficient credit access, money flow lacking, need to depend on multiple payment providers
2. Gigs: A gig is a job that lasts a certain period of time, often the life of a project or as long as the company has that specific need. Freelancers, Contractors, person with more than single source of income.
• Inconsistent income patterns, no employer benefits, unusual tax
3. Thin Files: There isn't enough information on one’s credit reports to calculate your credit scores. Like students, immigrants
• Limited earning potential, very little or no credit history
4. Unbanked: not having access to the services of a bank or similar financial organization.
• Not exposed to banking infrastructure, non-existent credit score which makes ineligible for the loans

Problem or Opportunity

• 3 Billion Global Population Use Feature Phones Without Support of Digital solution
• 1.5 Billion Global population do have access for basic banking services
• Almost 2/3 Of Global population Do Not Have Internet Access
• Non-availability Of Internet & Bandwidth Connectivity in All Places
• High Cost of Infrastructure Requirement Like PoS/AEPS Machine to accept the payments/digital services
• Reluctance of Small Retailers Due to Heavy Transaction Charges
• Accessing basic financial services need time and cost which is not convenient

In the available banking solution, if any user wants to access or make or receive any Digital Payment to a merchant or anyone else, the user should need to have an online internet connection over a smart phone. The Payment/banking applications are dependent on the net connectivity till the completion of the transaction like adding money to the wallet, transfer money, requesting money or withdraw the money to bank. Thus, every e-Transaction activity is dependent on first and foremost factor of Internet connectivity and second on a Smart Phone. We are solving that problem.

Solution (product or service)

Yuva Pay an Offline Neo-Banking platform, which works both internet and non-internet zone by supporting both smart and feature phone for the last mile seamless transaction. Except Registration, all other payment/collections/banking services processes can be managed without internet.

We need ONLY mobile network (GSM) to complete the transaction. We don’t need 2G/3G/4G/5G. We are using Patent Pending Secured Compressed Data (SCD) and Two-Way communication Protocol to communicate the transaction data between system in real time using GSM network between users and banking server.

FOR DEVELOPING COUNTRY (UNDER-CONECTING MARKET):
• Global 1st Offline Neo-Bank platform which Works with Or Without Internet Connectivity Supporting Both SMART & FEATURE Phone – WALLET| CARD | QR CODE
• Enabling Remote Collection & Payment for The Last Mile
• Single Platform for All Financial Inclusion Services for the NEXT BILLION USER’s – COLLECTIONS | PAYMENTS | MICRO INSURANCE | MICRO LENDING | MICRO SAVINGS | MICRO CREDIT CARD | INTERNATIONAL REMMITANCE

FOR DEVELOPED MARKET (CONNECTED MARKET):
• Mobile Based NEO-BANK solution supporting Contactless Virtual /Physical Card
• Providing Protection to The Stratum of Society That Is Financially Most Vulnerable
• AI Cyber Security method, we are using supervised learning with various classification algorithms and also deep learning Siamese neural network.

YP enables the following services for its customers. Digital Banking, Payments, Micro Savings, Micro Loans, Micro Insurance, Remote Collections, Pre-Paid Card, Credit Card and International Remittance in a single platform without depending on Internet supporting both smart phone & feature phone.

Competitors

There are many companies that tried offline payment solutions using NFC, Bluetooth, Soundwave, and USSD technologies. But all the existing solutions as their own limitation, which is mentioned below, due to this they have not tapped the untapped market.


Pain points of Existing Technology:
CARD: The merchants need to have upgraded PoS/mPoS/AEPS machine and it has a cost and needs reliable INTERNET connection

QR Code: Anyone person need to have INTERNET to update the transaction and proximity payment distance is 1 foot

NFC/Sound Wave Tech: User need to have high-end smartphone and merchant need to have updated PoS machine which reads NFC transaction, and both need the INTERNET to complete the transaction and proximity pay distance is 1 foot

USSD Technology: The difference between USSD and our technology is the difference between Handwriting and Computer typing. In USSD, the customers need to interact with the system multiple times, like dial *99# for menu, then select action, then enter details and submit. USSD will not work in LTE network. But in our technology, users will have Predefined Graphical User Interface and even illiterates can operate it easily. It is multi-lingual, user-friendly and quick and supports all networks.

But our solution will address all the above pain points and with Yuva Pay, we can reach nook and corner of the country.

Advantages or differentiators

• What is unique about Yuva Pay?
• Works with or Without INTERNET – Seamless Transaction
• Works on Any device – Smart and Feature Phone
• Need Internet for one-time Registration, post registration all payment transaction can be done without Internet
• Offline QR code solution – Internet not required for both Payer and Receiver
• Realtime, Quick, Simple, Multilingual
• Highly Secured–OTP, T-PIN, End to End SHA 512 Encryption
• Behavioral AI Biometric Security
• AI Behavioral – Typing Pattern, Holding Pattern & Interaction Pattern
• 7500+ Algorithms to Validate Data in Offline
• 25+ Checksum to Validate Data in Offline
• Data Compression to 99% + In-house Built Data Encryption
• 3 Layer Security with End-To End Encryption
• Reverse Re-Engineering Protected
• All banking Services in a single platform
• Plug and Play White Label Neo-Banking platform for Global market
• Offline Payment gateway solution which does not require internet for last mile collection & payments

ENTRY BARRIER:
• Strong IP – Patent Pending Technology
• Business Model – Yuva Pay is C2G & B2B2c, Others B2C
• Market – Yuva Pay is Tier 2 and below, Others Metro & Tier 1
• Scalable – 5 continents in 3 Years. Others are New Entry for this segment
• 1st Mover Advantage in eGovernance Service collection solution
• In 3 Years 34% of the Indian Market Validated by Yuva Pay with 25+ countries expansion

Finance

• Convenience Fees: 1.00% on every transaction for eGovernance Service bill payments
• Virtual ATM Charges: Per deposit/withdrawal charges at Virtual ATM point 1% of the transaction
• Commission Revenue: Commission on Mobile/DTH Recharge, Bill payment and other services – 1% to 8% on every transaction
• Payment Gateway Fees: For B2B Business, we are charging 1.00% charges on every transaction to those vendors who are using our payment solution
• Micro Savings: 2% convenience on enabling services
• Micro Insurance: 8.5% to 15.0% on Every Insurance Sales in our platform
• Micro Lending: 2% convenience fees on Loan disbursement and repayment
• Pre-Paid Card issue: $1 to $2 per Physical card
• Pre-Paid Card Transaction Revenue: 0.25% to 0.5% on every transaction
• White Label Solution: $100K to $250K one time license cost, 20% of AMC with 30% revenue share on each transaction for International Country

Business model

SaaS Model: Global Licensing Model, While Label solution
e-Collection Solution: Subscription Model for B2B clients for remote collection
Banking Platform: Selling multiple banking product & services in the platform
B2B clients: Payment Gateway Solution
Contact less card: Selling co-branded Contact less physical card for B2B clients

Money will be spent on

LENDING PLATFORM AND MARKET EXPANSION - 25%
WORKING CAPITAL – CAPEX/OPEX/TEAM SET-UP - 14%
BRANDING AND CUSTOMER ACQUISITION -20%
NEW PRODUCT FEATURES & DEVELOPMENT - 15%
GLOBAL MARKET EXPANSION – AFRICA/SEA/MENA - 26%





Offer for investor

15% DILUTION ON CAP OF $100MN VALUATION

Team or Management

Risks

Due to AML (Anti Money laundering Clause), the country’s central bank has pushed every financial player in the market to onboard the customers with FULL KYC by collecting physical documents. This policy has impacted on every financial institutes including digital players were cost of customer acquisition increased to 3 to 4 times. Later this policy has changed by considering alternative KYC model like Video/Biometric were fintech players can onboard the customers instantly. By this system every digital players customer acquisition cost reduced drastically. But this video KYC/Biometric KYC require reliable internet connectivity and hardware device which is now a big question mark for the existing players were Internet is not available in last mile with cost of biometric.

Incubation/Acceleration programs accomplishment

PART OF MAIN-STAGE INCUBATOR GERMANY AND THEY HAVE INVESTED $200,000.00 IN Yuva Pay
GRADUATED FROM EXPERT DOJO WINTER ACCELERATION PROGRAM AND RECEIVED $50,000.00 FUNDING

Won the competition and other awards

FINANCIAL INCLUSION AWARD FROM UK GOVERNMENT
ELEVATE 2018 AWARD FROM KARNATAKA STATE INDIA

Invention/Patent

My application for patent invention number 201641036168 filed on 21 Oct 2016 for the titled "A METHOD AND A MOBILE DEVICE FOR OFFLINE PROCESSING OF A PAYMENT TRANSACTION

Photos

Photo 1 - NEO-BANKING PLATFORM FOR THE UNCONNECTED & UNBANKED
Photo 2 - NEO-BANKING PLATFORM FOR THE UNCONNECTED & UNBANKED
Photo 3 - NEO-BANKING PLATFORM FOR THE UNCONNECTED & UNBANKED
Photo 4 - NEO-BANKING PLATFORM FOR THE UNCONNECTED & UNBANKED
Photo 5 - NEO-BANKING PLATFORM FOR THE UNCONNECTED & UNBANKED

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
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Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
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Product Video