GLAB India TeamGLAB India Team

Sergio DelgadoSergio DelgadoNathan Eagle Nathan Eagle

Amir HassonAmir HassonPrabhat SinhaPrabhat Sinha

AgendaAgenda

Can mobile devices help bridge the digital Can mobile devices help bridge the digital divide?divide?

IntroductionIntroduction Company OverviewCompany Overview Mobile TechnologyMobile Technology Issues and LessonsIssues and Lessons

Two CampsTwo Camps

““Do people have a clear idea of what it means to Do people have a clear idea of what it means to make $1 a day? There is no electricity. No power make $1 a day? There is no electricity. No power systems. These people are trying to stay alive. systems. These people are trying to stay alive. There is no need for a PC. There are things these There is no need for a PC. There are things these people need other than technology” people need other than technology”

-- Bill Gates, Microsoft co-founder-- Bill Gates, Microsoft co-founder

““Selling to the poor may be more profitable than Selling to the poor may be more profitable than selling to you and me. This is where the future is. selling to you and me. This is where the future is. Opportunities are everywhere. This digital divide is Opportunities are everywhere. This digital divide is not about lack of opportunity, it is about lack of not about lack of opportunity, it is about lack of imagination”imagination”

-- Prof C. K. Prahalad, Michigan University B School-- Prof C. K. Prahalad, Michigan University B School

BackgroundBackground

•Demonstrated significant demand

•Substitution of existing everyday costs

•Services: Healthcare, Agriculture, Loan Application, Education, Govt. Complaints, Market Rates, computer education etc.

•Key question:

How do we penetrate this market?

•Poor Infrastructure

•Challenging demographics

Leading and profitable provider of Leading and profitable provider of eGovernance services via micro-finance eGovernance services via micro-finance model.model.

Expansion Strategy: Offer portfolio of Expansion Strategy: Offer portfolio of private and public servicesprivate and public services

Competition: Regional and GrowingCompetition: Regional and Growing Current Operations: 80+Kiosks in 3 statesCurrent Operations: 80+Kiosks in 3 states

One-Time License Fee, Transaction FeeOne-Time License Fee, Transaction Fee

Drishtee Business ModelDrishtee Business Model

Drishtee

District hubs

Village kiosks (55,000)

Villagers

$4800

% of transaction fee

One-time license fee

Services

Services

100 %

13 %

80 %

7 %

$200

$120

$80

0

20

40

60

80

100

120

140

160

0-2.5 2.5-5.5 5.5-8.5 8.5-11.5

11.5-14.5

14.5-17.5

17.5-20.5

>20.5

Distance from kiosk (km)

Conversion rate (Customers per 1000 people)

Optimal distance: 7-12 km

Distance from kiosk (km)

Conversion rate (Customers per 1000 people)

Optimal distance: 7-12 km

With the help of Handheld Devices

Village PenetrationVillage Penetration

How the Handheld Model affects the Service ScenarioHow the Handheld Model affects the Service Scenario

Good core offering

Connectivity required

Stable Internet

Stable Intranet

Intermittent Intranet

None

Rural e-

marketplace

School education

“Government online”

Employment (Remote

sourcing)

Employment exchange

Government applications

Agriculture services

Computer education

Entertainment/Info

Medical Services

High

Complexity

Low

Low Potential Demand High

Matrimonial

E-horoscopes

Photo-related services

Inter-village E-mail /Voice Mail

Email/Voice-mail

Handheld Enabled Services

Info collection/ Marketing

• Identified Problem and Opportunity Identified Problem and Opportunity • Provided Prototyped SolutionsProvided Prototyped Solutions• Three field studiesThree field studies• Monitoring and AssessmentMonitoring and Assessment• Business Development Business Development

•Market Research (BCG)Market Research (BCG)•Business PlanBusiness Plan•VC ContactsVC Contacts

How we helpedHow we helped

IssuesIssues

Government dependenceGovernment dependence Infrastructure (Connectivity/Power)Infrastructure (Connectivity/Power) Scalability and deploymentScalability and deployment Misaligned incentives Misaligned incentives Management stretchedManagement stretched FundingFunding

What We What We Learned So FarLearned So Far

Sufficient demandSufficient demand Mobile services Mobile services dodo add value: add value:

Rapid adoption rate (fast-learners).Rapid adoption rate (fast-learners).

Greater awareness and penetration Greater awareness and penetration

If they can reach 7-8 additional If they can reach 7-8 additional households per week households per week

Field study is importantField study is important Indian Villagers are very hospitableIndian Villagers are very hospitable

Questions?Questions?