This project is part of the central government’s e-governance drive, which is currently running close to 40,000 outlets and has a target of reaching more than a lakh outlets by the end of fiscal year 2011. Currently, Suvidhaa has 21,000 operational outlets in over 500 towns and cities.
Paresh Rajde, founder MD and CEO , Suvidhaa Infoserve said, “Since our inception, we have seen a year-on-year growth of 500% and being a part of a government initiative will definitely help us grow faster. This project is under the public-private partnership model.”
To accelerate its penetration and processes, Suvidhaa has tied up with various micro-finance companies. By empowering the CSCs, “Suvidhaa will increase its presence from 21,000 outlets and more importantly provide services and generate employment amongst rural India,” said Rajde. The company plans to spend around Rs 10 crore on advertising its services, about 2% of its top line, in FY 11.
Every retailer who wants a franchisee of Suvidhaa is expected to pay a fee of Rs 10,000. The company's contribution would be in setting up the hardware and software at an outlet along with the training to operate it. The commission on each transaction varies.
According to Rajde, the retailer gets 70% of the transaction and 10% goes to the distributor. Suvidhaa gets to keep the remaining as commission.
The service provider, in its three years of operations, has not been able to cash-break even. However, it sees the possibility of it in another year-and -a -half. On this, Rajde says Suvidhaa is still investing in growth and to be profitable at this juncture is not a major concern.
---
Autor(en)/Author(s): Shubham Batra
Quelle/Source: The Financial Express, 10.05.2010
Bitte besuchen Sie/Please visit:
