Suvidha Infoserve is a company which is engaged in providing finance and micro-banking services to the rural and semi-urban part of India. The Company was formed in 2007 and is engaged in services like Insurance premium renewal, Bill Collection Services, Telecom, and DTH Recharge, Ticket booking, Domestic money transfer, Utility Bill Payments.
The company makes money from three different business models. Firstly, it provides digital infrastructure services in the form of point of sale machines like debit card swiping machines to already established retail stores such as supermarkets and chains. Secondly, it provides digital intermediary services to singular mom and pops grocery stores and retail outlets who primarily deal with other things. Services such as travel ticket booking, phone recharges and bill payments are pitched to these stores as additional services that they can earn a commission on by offering to customers who had come to the store to purchase other things.
The third is a Franchise Business Model. Franchisee partners pay a certain amount of money or investment to purchase digital equipment and license from Suvidha Infoserve to open a Suvdiah Flagship store, The stores exclusively offers Suvidha Infoserve services, thus becoming a point of contact for all personal digital needs of a customer such as a telecom, insurance, travel booking, money transfer.
The bulk of sales of a Suvidha Franchisee Partner having a Suvidha Flagship store comes from offering domestic utility services to private individuals, services like mobile and DTH recharge, collection of utility bills, insurance premium renewal, and travel ticket booking.
Rural and semi-urban areas form the major chunk of demographic of customers of Suvidha services. The entire business model of Suvidha is based on being an intermediary who provides a gateway to book simple services on behalf of people who don’t want to use their own debit or credit card due to various reasons and would rather pay via an intermediary. Or more importantly, people who are simply not technologically educated enough, as is mostly the case in rural and semi-urban areas where Suvidha’s target customer demographic resides. But as more and more people in the rural area start adopting internet services on their mobile phones, they would be able to do simple things. So as more and more.
But there is a fatal flaw in this business model due to which it may not be a sustainable long-term business opportunity. There has been an unprecedented level of growth in the number of new people adopting internet services for the first time. India’s internet users increased to more than 627 million this year – 2019. The growth has been spearheaded by rural India which has registered a whopping 35% yearly growth. As more and more people start using smartphones with internet and digital banking services in rural areas, they will start to become capable of booking simple utility services on their phones themselves. As a result, they will not need the services of an intermediary. Intermediaries like Suvidha Infoserve will become outdated and struggle to find new customers in the future. Thus, for a Franchisee Partner aiming to provide majorly utility services, the business opportunity might be unsustainable and unprofitable after a while.
If you are looking for a Franchisee business opportunity we at GST Suvidha Kendra have a wonderful opportunity for you. It is guaranteed to give your regular income, the potential to regularly keep on increasing your customer base, the highest possible commission rate in the industry of up to 50% on a low amount of investment and directly approved and licensed by the Govt.