Before going in detail we would love to explain what we are trying to build? PagarBook essentially is a mobile App where a Business Owner (Staff size ranging from 5–30) can manage Salary, Attendance and Advance Payment of all his staff in a very hassle free manner. We are totally focused on unorganized sector. Using PagarBook, a business owner can easily manage Monthly wage worker, Daily wage worker, Hourly wage workers and Work basis staff in PagarBook App.
Why we thought to solve for this space?
Here are few Top Level data points:
- Total No of SMEs in India: 60 Million
- Total no of employees working in unorganized sector: 430 million
- Total no of employees working in unorganized construction sector: 42 Million
- Unorganized Manufacturing and services sector employs more than 100 Million workers
- Agriculture employs more than 200 Million workers
- On an average 50 Million workers are changing their job every year (NSSO Report)
- Agriculture, Construction, Textile manufacturing, Embroidery, Private Schools , Traders, Manufacturers etc are the major employers in unorganized sector
- Wages of these employees ranges from INR 6000–30,000 and median is INR 8000–10,000
This massive unorganized sector still using offline methods and able manage 400 million employees and unavailability of financial record of these employees in mainstream financial ecosystem, are few of the most fascinating things for us and hence we started digging down around this. We released the first version of PagarBook in first week of Dec 2019 to have a reality check. We managed to get 500 business owners onboard through different means like Facebook and we were amazed to see approx 50 business owners wrote us back with different feature requirements. Someone having a business of tailoring just called us and started discussing his requirement of work basis payment, another from construction asking for attendance and daily wages staff management and this list kept on going.
Opportunity on top of PagarBook:
- Financial Services: Due to lack of financial data of these 400 Million employees, businesses are not able to design financial products for these people. If needed they get loan from some Seth in their village at a monthly interest rate of 3–4 %. Inspite of having bank account and smartphone they are not able to do mobile banking. Majority of these people fall in a salary bracket of INR 8000–12000 and no financial service provider has designed credit card type product for these people. Here are few financial services that can be built on top of PagarBook.
- Loan (Avail Finance)
- Credit (Kaarva)
- Savings (Neo bank)
- Insurance (Acko)
2. Employment Services: Approx 50 million workers (Including freshers and experienced) are getting recruited every year in unorganized sector in India (NSSO Report). Employment services is a huge opportunity for us as we will have a proper profiling of all the staffs working in unorganized sector
4. Content / Commerce: During our discussion with one of the E com startup we realized that we can give a parallel space in employee App for commerce feed of some of the leading market leaders in that space like “W Mall”, “BulBul Shop” , “SimSim” etc.
4. SaaS Fees: Most of the employers we met or talk to over phone are ready to pay 20–30 USD annual fees. (Though we are not very sure whether we will explore this monetization opportunity or not.)
Thanks for going through it. We would be more than happy if you could download the App and let us know your review for the same @ firstname.lastname@example.org.