Payments OP2 2021 Prione confidential

1 1 EXECUTIVE SUMMARY
2 In 2020, we scaled-up Unorganized, GC & Utilities businesses with learnings from 2019 while optimizing on process, cost and efficiency
3 initiatives. We rolled up our sleeves to take up Organized Scan & Pay business, delivered on P0 goals and are confident to scale it up
4 in 2021. We invested our bandwidth in programs to drive efficiency (CRM), market insights (VOM, VOF), learnings (Saksham) and
5 resolving operational bottlenecks (inventory management, partner invoice processing). We shared our learnings with other functions
6 dealing with the 3P workforce and extended expertise (of handling on-ground 3P team) for critical assignments (IHS). In 2021, we plan
7 to a) Unorganized: expand to 52 cities, acquire 1.06 MM merchants and do 3.45 MM engagement visits while continuing to optimize
8 on cost efficiencies with introduction of new channels (Last Mile & Aggregators) and improving compliance to 97%, b) Organized:
9 onboard 12K stores along with providing Account Management (AM) services to 23 brands while maintaining 75% active store rate, c)
10 Gift Cards: expand to 9 cities and deliver INR 6,000 MM issuance at 4.5% discount, contributing 10% of Amazon corporate issuance
11 business, and d) Utilities: manage 114 billers for 3.2 MM MAU and contribute 39% of Amazon bill payments business. In-line with
12 Amazon’s Payments charter, we are also hopeful to support new business lines in 2021 (e.g., Smart Stores, Online Merchants etc.).
13
14 2 TENETS (UNLESS WE KNOW BETTER)
15 1. Prioritize Customers, Merchants, Partners and Amazon in that order and reflect these in our decisions and actions.
16 2. Make sustainable value creation a conscious choice to prioritize /deprioritize Merchant use cases and features.
17 3. Champion Voice of Merchants and Customers over internal beliefs to drive changes in policies, products, practices and processes.
18 4. Bring automation, process improvements to reduce redundancies and improve governance over speed and scale of execution.
19 5. Prioritize zero tolerance towards non-compliance at partners/associates/merchants over achievement of Goals.
20 6. Scale non linear inputs (Pay for Performance) with automation investment to reap disproportionate outputs vis-à-vis linear inputs.
21 7. Identify synergies and alignments within payments organization more than verticalization while adding new portfolios services.
22 8. Strive to be at par with ICs if not surpass them on MX/CX.
23
24 3 2020 HITS (PROJECTION VS OP3)
25 3.1 [Unorganized] New Merchant Acquisition: We exceeded new merchant acquisition goal by 12.6% (1.70 MM vs 1.51 MM goal) at
26 INR 276 per merchant acquisition cost (vs INR 277 goal) primarily driven by a) scale-up of non-linear channels (acquired 0.68 MM vs
27 0.43 MM goal), and b) improved FOS efficiency and productivity post introduction of unified onboarding flow in CRM.
28 3.2 [Unorganized] Merchant Engagement & MAR: We exceeded full service engagement visits goal by 21.6% (0.45 MM visits vs 0.37
29 MM goal) at per visit cost of INR 93 (vs INR 96 goal). We improved full service visit % by 1000 bps (60% vs 50% goal) to aid exceeding
30 MAR goal by 1350bps (28.5% vs 15% goal). Key interventions to increase program efficiency a) introduced open lead pool management
31 and prioritization in CRM to overcome inaccuracy in address or PIN code of merchant, b) increased daily lead allocation capacity in
32 CRM to 60K per day (vs 15K per day earlier) to provide sufficient leads to FOS, c) weekly training sessions for field team to scale visit
33 productivity, and d) enabled hourly performance dashboards for managers to track FOS performance and timely interventions.
34 3.3 [Unorganized] Acquisition Compliance: We exceeded compliance adherence goal by 109 bps (96.9% vs 95% goal) driven by, a)
35 doubling down on data-backed audit of suspicious FOS and action on defaulters, b) extension of CRM to all sales channels, providing
36 real time visibility c) rolled out easily understandable video based training modules for FOS, d) introduced penalty clauses in FPA work
37 order to drive desired compliance behavior, and e) rolled out weekly FPA score cards while acting on Partners for non-performance.
38 3.4 [Unorganized] Leadsquared CRM: We renegotiated the arrangement with our CRM partner Leadsquared to optimize on multiple
39 fronts a) reducing the monthly payout by ~60% with renegotiated structure b) No cost feature upgrades c) long term roadmap design
40 d) moving the payouts to postpaid than in advance for a business month.
41 3.5 [Organized] Store Onboarding (National & Regional brands): Owing to RBI guidelines issued in Oct20, we stopped onboarding
42 merchants on Smile Code flow and started onboarding on 3P rewards flow. We exceeded store onboarding goal by 45.8% (627 stores
43 vs 430 goal) driven by, a) improved learning curve for BDs (74 productivity in Nov20 vs 34 in Oct20), b) simplifying operational blockers
44 involved in KYC and agreement execution (digital agreement execution vs stamp paper, at 1.45% default MDR), reducing onboarding
45 TAT by 5 days, and c) timely training support and guidance from A.in stakeholders.
46 3.6 [GC] Issuance: We exceeded issuance goal by 1.6% (INR 1926 MM vs INR 1895 MM goal). In H1 2020, we faced headwinds of
47 delayed hiring and budget cuts from existing clients, leading to an INR 300 MM issuance gap. We mitigated these factors in H2 2020
48 by, a) focusing on new industries (IT/Pharma/FMCG) and delivered INR 860 MM issuance (vs INR 608 MM Goal in H2) from new client
49 acquisition, and b) starting Diwali plan two months in advance, reached out to 10,000 clients through drip marketing and billed 360
50 corporates (vs 290 in 2019) with INR 770 MM issuance.
51 3.7 [Utilities] New Joint Promotional Campaigns: We exceeded the new promotion campaigns goal by 20% (126 campaigns executed
52 vs 105 goal), contributed by a) acknowledging billers’ preference for long duration campaigns, we executed 26 campaigns with 3+
53 months duration, and b) COVID Safety Marketing Collaterals were shared with billers to comply with social distancing norms, which
54 was encouraged by 12 billers and helped us run 12 offline campaigns at 84 cash collection centers in 9 cities.
55 3.8 [Operations] Invoice Processing for MPA Partners: We made changes in our internal processes to ensure time-bound payouts to
56 MPA partners (in turn ensuring timely salary payouts to FOS), a) initiating the invoice processing cycle 2 days in advance (28th of every

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1 month), b) aligning MPAs to raise invoices within 1 day basis our inputs, c) align finance team for processing invoices within 3 working
2 days, and d) aligned GC to approve the payments the same day e) bringing in efficiency in maker checker process. With all these
3 interventions, we are now processing all invoices within the first week of month ensuring FOS get their salary by 7th of every month.
4
5 4 2020 MISSES (PROJECTION VS OP3)
6 4.1 [Unorganized] Engagement Compliance: We missed the compliant engagement visit goal by 120 bps (93.8% vs 95% goal) majorly
7 driven by, a) high compliance failure in initial months due to sales team’s remote transition to engagement function (36% in Aug20)
8 resulting from understanding gaps, and b) limited audit bandwidth (2% sample audited) led to delay in identifying potential fraud FOS.
9 We made necessary interventions like: a) organized virtual training sessions for FOS and shared videos for different use cases to bridge
10 the learning gap, b) data centric lead management to proactively remove potentially fake/individual merchants (18% of overall leads)
11 from engagement pool, and c) increased audit capacity through field and image audits to 8% to identify fraudulent FOS. These
12 interventions helped us to improve compliance adherence to 88.7% in Nov20 (vs 67.7% in Aug) and we are expecting to achieve 95%
13 compliance in Dec20 (refer appendix 1 for month wise update).
14 4.2 [Organized] Monthly Active Store Rate (T+45): We missed monthly active store rate by 1000 bps (65% vs 75% goal) for merchants
15 on boarded on smile code/phone number flow (refer appendix 2 for brand wise details). Major reasons contributing to low active store
16 rate are, a) low preference amongst users for wallet based transactions, b) high transaction failure rate of 45% in Nov20 , c) delay in
17 merchandise dispatch, and d) poor-in store visibility (we piloted testing if brands can deploy merchandise by themselves without
18 sending any field support and observed poor execution), e) delay in launch of P2M flow (ETA: 1/30).We plan to fix the same by a)
19 shifting onboarding focus on UPI based payment solutions, b) maintaining sufficient inventory basis onboarding run-rate, and c)
20 outsourcing merchandise deployment and field service visits to our existing FPA partners.
21 4.3 [Organized] Monthly Active Store Rate (Top 200): We managed 1 brand (TFS, 91 stores) and exited Nov20 with an active store
22 rate of 70% (vs OP2 goal of 80%) despite activating customer and store incentive schemes. Reasons include a) low preference amongst
23 users for wallet based transactions, b) high transaction failure rate of 14% in Nov20 c) lack of in-store merchandise, d) poor
24 communication from brand POC to stores regarding active schemes, e) delay in launch of P2M flow (ETA: 1/30) and f) delay in
25 disbursement of marketing fee for 2 quarters. Brand has acknowledged execution gaps and has agreed to retrain their staff and
26 promote Apay across stores post disbursement of marketing fee (PO released on 12/11).
27 4.4 [Utilities] Total Managed Billers (coverage): We missed our biller coverage goal by 50.8% (campaigns executed with 29 billers vs
28 59 goal). While working with billers, we learnt a) Private billers are receptive to campaigns as they also have digital goals to drive, and
29 provided support to run Amazon campaigns on their assets, leading to 59% coverage (23 managed billers vs 39 total), and b) Govt.
30 billers do not show much interest in working with the agent entity (Amazon) directly, leading to only 17% coverage (6 managed billers
31 vs 35 total). We started paid campaigns through advertising agencies to improve our coverage with Govt. billers in 2021.
32
33 5 PROGRAM UPDATES
34 5.1 [Unorganized] CRM: CRM was introduced in Oct19 to capture on-field activities of FOS and give real time visibility to managers to
35 enable timely interventions. Key CRM updates from 2020 are, a) implementation of unified merchant onboarding flow resulting in
36 50% reduction in onboarding time (9 vs 18 minutes earlier), b) extension of CRM to franchise channel and engagement program ramp-
37 up, c) implementation of ‘single device login’ to stop FOS abuse, and d) using CRM to block duplicate merchant onboarding (multiple
38 launches with same mobile number). In 2021, we plan to, a) enable new features to tighten compliance (e.g., integrate Eduthrill
39 training certification with LS), b) extend CRM to new sales channels like Last Mile, c) enable penny drop transaction (status: scoping) ,
40 and d) API data integration between Amazon and CRM for efficient merchant engagement (refer appendix 3 for CRM roadmap).
41 5.2 [Unorganized] Voice of Merchant (VOM): Basis VOM feedbacks, we a) deployed integrated merchant onboarding flow (via CRM)
42 to reduce OB time by 50%, b) made merchant cashback offers consistent for longer durations to avoid confusion because of frequent
43 changes, and c) made Apay app compliant on iPhone to increase merchant entitlement. Other changes which are under development
44 (Update from Amazon product team as on 12/10) basis these feedbacks are, a) inclusion of transaction amount in SMS (ETA: 01/30),
45 b) ability to send transaction SMS to multiple mobile numbers (ETA: NA, BTL for 2021), and c) real-time cashback settlement to
46 merchants (ETA: 01/12). In 2021 we plan to, a) increase scope of VOM survey to engagement function, b) introduce theme based
47 surveys to get specific insight about new initiatives, and c) add NPS survey to VOM program (refer appendix 4 for program summary).
48 5.3 [Unorganized] Voice of FOS (VOF): Using VOF monthly surveys, we identified 13 key concern areas and resolved 9 of them
49 (remaining 4 being WIP, ETA for resolution 12/31). Key concerns which were resolved include, a) visibility on daily performance
50 through CRM to remove dependency on managers, b) ID card issuance within 48 hrs. of joining, c) providing agency wise portals to
51 download monthly salary slips, d) introduction of RnR program (non-monetary) to motivate top performers, and e) enabling
52 ‘DocuCheck’ program to proactively highlight gaps in documentation (with agencies) resulting in salary processing delays. To replicate
53 program success, we extended it to other functions dealing with 3P sales workforce. In 2021, a) we will extend this program to other
54 channels (e.g., FPA, MSS) to capture market feedback and insights (refer appendix 5 for program summary).
55 5.4 [Unorganized] Inventory Warehousing and Distribution: We launched this program in Sep20 with an aim of integrating
56 warehousing and last mile delivery of kits under one partner, optimizing service quality, storage and transportation costs. We identified
57 and on boarded a new warehouse provider, and changed intra-city kits transport on ‘cost per trip’ basis (vs cost per kg with old
58 partner). We further encouraged our FPA partners to collect kits directly from WH at their own cost. These interventions helped us to
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1 reduce WH cost and save ~67% per month (INR 0.08 MM per month vs INR 0.24 MM with previous partner) and brought down cost
2 per kit transfer to INR 0.35 in Nov20 (vs INR 2.80 in Sep20) (refer appendix 6 for details). For our 2021 expansion plan to new cities,
3 this new setup will further help us to optimize inventory WH and distribution costs.
4 5.5 [GC] Customized GC Solutions: In 2020 we focused on, a) New Product Adoption: we exceeded our product adoption goal by 115%
5 (INR 637 MM vs INR 284 MM goal, 33% of total issuance) with 7 corporates adopting new gift card products. We learnt that, i) SMS
6 delivery works for companies with channel partner / retailer gratification due to mobile friendly target audience, and ii) D2A (Direct
7 to Amazon) works for companies with higher denomination GC value to avoid multiple mails, and b) Payout Business: we delivered
8 INR 10 MM issuance from 4 corporates by identifying a new opportunity of Gift Cards Marketplace. In 2021, we will deliver INR 860
9 MM issuance from new GC products (+202% YoY, 20% of incentive business) and INR 700 MM issuance with payout use cases (+7000%
10 YoY, 12% of total issuance) (refer appendix 7 for details).
11
12 6 2021 PLAN VARIANCE (OP1 VS OP2)
13 6.1 [Unorganized] Renewed Channel mix: a) Acquisition: In line with our 2021 plan to restrict operations to 52 cities (vs 210 cities in
14 OP1), we will acquire 1.06 MM merchants (vs 4.69 MM merchants in OP1). We will target cost per acquisition at INR 169 (vs INR 213
15 in OP1) by introducing new low cost channels (Last Mile: 16% contribution, Aggregators: 4% contribution) and optimize rates with
16 existing channel partners (targeting cost reduction of 38.3% in MSS and 11.1% in FPA channel) (refer appendix 8 for details). b)
17 Engagement: Due to revised count of operational cities in 2021 (as explained in 6.1), we will target to do 3.45 MM engagement visits
18 (vs 5.98 MM in OP1) at INR 93 per visit (vs INR 105 in OP1). The improvement in cost per visit will be driven by, a) efficient lead
19 management to increase ‘Full Service Visits (FSV)’ to 75% (vs 59.6% in 2020), and b) scaling up contribution from low-cost variable
20 channels like FPA & MSS (expected contribution 80% at INR 80 per FSV) (refer appendix 9 for details). c) Compliance: In 2021, we will
21 target 97% compliance for both acquisition and engagement functions (vs BHAG 99% in OP1). As called out in OP1, achieving the BHAG
22 goal of 99% would require ML based audits and real time KYC check, which couldn’t be implemented due to dependencies on the
23 Amazon product team. However given the developments mentioned in section 3.4 & 4.1 and proposed 2021 channel mix, we are
24 confident to achieve 97% compliance goal (refer appendix 10 for channel wise compliance goals).
25 6.2 [Organized] Business scale-up: Basis our learnings in 2020 and new developments expected in 2021 (launch of P2M flow and
26 increased focus on 3P rewards), we have increased onboarding and account management goals and deprioritized contactless ordering
27 as per guidance received from legal. We propose a total HC of 19 and budget estimate of INR 15.5 MM for merchandise deployment,
28 field service visits and CRM (refer appendix 11 for cost breakup). a) Onboarding and AM of National & Regional brands: In 2021, we
29 plan to onboard 12K stores on either of the payment flows (P2M, bar code, phone number, 3P rewards) and maintain an active store
30 rate of 75% with average 60 transactions/store/month. With revised productivity goal of each resource at 100 stores per month (vs
31 56 in 2020), we expect to achieve our onboarding goal with help of 10 BDs and 2 Leads. Basis findings from secondary research
32 conducted to identify market sizing of TG across selected categories in top 8 cities (refer appendix 12), we will operate on regional
33 model (refer appendix 13 for regional classification of HC). In 2021 we plan to, a) outsource merchandise deployment and field service
34 visits to FPA partners, b) start using LS as CRM, and c) continue to leverage other functions like Prime foods, GC, NSA and TBAM for
35 lead generation d) basis learnings by Q1 2020 exit, will take a call if we should have a dedicated AM for account management of these
36 brands. b) AM of merchants from Top200 cohort: In 2021, we plan to manage 23 brands from Top200 cohort with help of 4 AMs and
37 1 lead (refer appendix 14 for city wise spread of accounts). We will target 80% monthly active store rate and 90 monthly transactions
38 per active store by preparing campaign calendars, convincing brands for co-funded campaigns, enhancing visibility by promoting on
39 coupons page with an E%O of 2.25%.
40 6.3 [Gift Cards] Issuance & Discount: a) Incentive Business: we will expand to 9 cities (vs 6 in 2020) to deliver INR 4,300 MM issuance
41 (+127% YoY) at 4.75% discount (71 bps YoY). We will divide these cities into 3 clusters (Del-Mum-Ban) to manage the team effectively.
42 b) Payouts Business: Our 2020 experience (4 payouts accounts, INR 10 MM issuance at 2.95% discount) gave us the confidence to
43 drive INR 700 MM payout business at 2.75% discount from fintech, lending and gaming industries in 2021. Due to its nature, this
44 business will help us control the discount spend at channel level. c) Non-linear Business: In 2020, we closed INR 20 MM at 5.00%
45 discount with one franchisee partner. The partner gave us the commitment of INR 40 MM issuance in one quarter, leading to a
46 potential business universe of INR 12,800 MM in 80 cities (60+ Franchisee/Multi Seller Flex Partners in 80 cities). We are in discussion
47 with respective channel head to design the business plan for INR 1,000 MM issuance at 4.50% discount in 2021. All the three business
48 channels combined, will deliver INR 6,000 MM issuance, contributing 10% to Amazon Corp business in 2021 (vs 5% in 2020) (refer
49 appendix 15 for more details).
50 6.4 [Utilities] Monthly Active Users: In 2020, we set up a team of Regional Account Managers to drive 2.5 MM MAU for Amazon Bill
51 payment. We executed 381 total promotional campaigns (126 New & 255 Recurring) with 29 billers (vs total 114 billers) leading to
52 2.24 MM MAU (-10% vs goals, 39% YoY), the MAU gap was primarily due to lower growth in east region billers (7% vs 39% function’s
53 avg.). Basis the learnings, we will restructure our team as per private and government billers, where 2 Regional AMs will drive 430
54 (120 new + 310 recurring) promotional campaigns with 62 billers for 1 MM MAU (+46% YoY) and 1 AM will drive engagement with 70
55 Govt. billers centrally by bidding through tenders or running 100 (50 New + 50 recurring) campaigns through advertising agencies for
56 2.2 MM MAU (+36% YoY). In 2021, we plan to manage 114 billers for 3.2 MM MAU (+40% vs 2020E) from 3 categories and contribute
57 to 39% of Amazon Bill payments business (vs 45% in 2020E) (refer appendix 16 for details).

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1 6.5 [Operations]: In 2020, apart from supporting Payments function, the Operations team supported IHS function for partner
2 onboardings (50 new), legal document execution (50 New contracts + 250 Addendum/Renewals), payroll processing (15 MPA
3 Partners), payments processing (80 FPA Partners + 5 Service Providers), invoice processing (2249 invoices with the value of INR 1,065
4 MM) and payment reconciliations. In 2021, our key focus will be a) expand operations support across other businesses in Prione
5 (alignment taken from Easy function), b) Streamlining City MIS by moving to Regional Operations to continue to support MIS Reports,
6 and c) 95% adherence for invoice processing within stipulated timelines (vs 77% in 2020).
7
8 7 SUPPORT REQUIRED
9 7.1 [Unorganized] Inventory management: In 2020, we distributed 22.3MM kits with 6.17% leakage (vs 5% goal). In the absence of
10 any automated mechanism, it is challenging to manually track and maintain records of each and every kit (investment of 24 manhours
11 per week). In 2021, we would require support to, a) own and manage delivery and distribution of kits in each city, b) provide 3 weeks
12 inventory buffer in each city to avoid loss of productivity because of stock-outs (1265 FOS mandays loss in 2020), and c) increase
13 leakage percentage to 7.5% (vs 5% currently, vs 15% IC average) as we expect high leakage from FPA and LM channels..
14 7.2 [Unorganized] Product Features: Feedbacks received via multiple channels (VOM, VOF, NPS and anecdotal) reiterate that APay
15 product features are not at par with IC in market, impacting sales and engagement KPIs. We seek support in prioritizing ‘point of parity’
16 feature developments (refer appendix 17 for current product roadmap and appendix 18 for feature gaps highlighted during OP1).
17 7.3 [GC] Visibility on Redemption Data: We require Tableau access to track GC redemption and breakage data. This data helps us
18 build the channel level P&L (required for strategic work at city and function level), identify the corporate redemption trends and take
19 corrective actions e.g. reducing the discount, stop engagement with corporates in case of unhealthy issuance. As per the InfoSec
20 policy, customer level data cannot be shared with anyone outside Amazon organization hence leadership support is required in
21 enabling Tableau access or getting monthly data in excel. Without this report we will not be able to influence the P&L levers.
22 7.4 Execution of Work Orders: In 2020, work orders for Unorganized and Organized functions were executed quarterly, that too
23 towards the end of every quarter. Also, Purchase Orders were issued after delivery of services. As per guidance from the Prione board
24 and legal team, all WO & PO must be executed in advance. We will require support in ensuring 2021 work order is executed within
25 the next 4 weeks, and quarterly Purchase Orders are issued in advance without fail.
26
27 8 HOTLY DEBATED TOPICS
28 8.1 What should be the basis of our strategy for 2021? Should it be the basis current active HC at Prione, new HC being proposed by
29 the APay team, or goal backwards?
30 [Unorganized] The current OP2 plan is prepared based on the existing sales team’s HC at Prione (32 ACMs). As per recent guidance
31 from APay team, we need to reduce the team size to 23 ACMs. With 23 ACMs, we will be able to manage 36 cities (-16 vs proposed
32 OP2 plan) and deliver 0.76 MM new merchant acquisitions (-27% vs 1.06 OP2 plan) and 2.58 MM engagement visits (-25% vs 3.45 OP2
33 plan) (refer appendix 19 for comparison of these 2 approaches on various parameters). Basis the approach we finalize, we need to take
34 a call on the team's size, geographical distribution and corresponding deliverables.
35 [Organized] For 2021, we are expecting productivity of 100 stores onboarding per BD per month (vs 56 in 2020) and 6 accounts from
36 Top200 cohort for account management per resource (vs 4 in 2020). Based on these inputs, we need to take a final call on our 2021
37 approach, a) Goal backward approach: To onboard 12K stores we need 10 BD (L3+) and 2 BD Leads (L4). To account manage 23 brands
38 from the Top200 cohort, we need 4 AMs (L4) and 1 AM Lead (L5). In addition, we will require 1 BA (L3+) and Business Head (L6) taking
39 the total required HC to 19. b) HC backward approach: As per inputs received from APay team, we need to limit the team to 12 HC
40 including Business Head and BA. With this limitation, we propose to have 6 BDs, 1 BD Lead and 3 AMs and thus will be able to onboard
41 7.2K stores (vs 12K goal) and AM 18 brands from Top200 cohort (vs 23 goal). (refer appendix 19 for comparison between both
42 approaches)
43 [GC] This business plan (INR 6000 MM in 9 cities with 10 Sales Specialists) is basis the market potential, business growth and P&L
44 backward (Discount - 5.46% from 4.5% & Issuance/head count – INR 333 MM to INR 600 MM). We propose head count approval in
45 the beginning of 2021 but as per the direction from Amazon team, we should start 2021 with INR 3000 MM issuance with 6
46 resources in 6 cities and gradually increase the head count throughout the year as we move towards Contribution to Profit (CP)
47 neutral in P&L. Basis the approach, we will close our discussion with Amazon team in Jan’21 with issuance ranging between INR 6000
48 MM (best case scenario) to INR 3000 MM (worst case scenario).
49 8.2 What should be our new merchant acquisition strategy for unorganized business? Should we prioritize merchant acquisition
50 from areas where APay customer density is high?
51 In 2020, we built a hypothesis that higher count of merchants in areas having high number of Apay customers will result in high 1P
52 merchant active rates (1P - Apay customer doing transaction on Apay merchant). Accordingly, we prioritized merchant acquisition
53 from top 425 PIN codes having highest Apay customer density and took a goal to build 10% merchant density (calculated as no. of
54 merchants per 100 Apay customers) across 320 PIN codes (75% of selected 425 PIN codes). We missed the goal by 5030 bps (24.7% vs
55 75% goal) due to, a) MPA channel scale-down in post-lockdown period and restriction imposed on FPA channel on areas of operation,
56 b) FOS hiring & retention issues faced by FPA partners as FOS were not aligned to work in limited geographies, and c) frequent
57 disruption in sales due to COVID related fluid ground situation (e.g., areas getting designated as containment zones).

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1 In Q4 2020, we analyzed data points to validate our hypothesis and found no direct correlation between 1P active rate and high
2 merchant density (refer appendix 20). In contradiction, we observed higher 1P active rate in areas having low merchant density and
3 thus for 2021, we plan to build ubiquity across all areas in operational cities rather than going deeper in select sub-areas.
4 8.3 What should be our channel strategy for unorganized business?
5 In 2020, we worked with 3 different channels for new merchant acquisitions, a) MPA: enables tight controls over on-field operations,
6 but comes at higher cost and payout commitments (impact on budget during COVID lockdown), b) FPA: enables non-linear scale-up
7 with ‘pay for performance’ setup, cost effective (vs MPA) but offers lesser control over on-field operations and no commitment on
8 goal delivery, and c) MSS: works on ‘pay for performance’ setup along with offering goal commitments, cost efficient compared to
9 MPA, but expensive compared to FPA (refer annexure 21 for month wise sales contribution of these 3 channels). In Q4 2020, Apay
10 team executed a pilot with new ‘pay for performance’ channel - Last Mile (on-ground team responsible for making deliveries for ATS)
11 at INR 140 per acquisition (refer annexure 22 for channel wise KPI performance during Sep-Nov 2020).
12 While current OP2 plan is based on team’s learnings of different channels from 2019 and 2020, we have guidance from the Apay team
13 to move 100% acquisitions to the Last Mile channel (primarily driven by cost benefits). Given current compliance performance of LM
14 channel and limited visibility to overall operations and structure, the sales team is low on confidence about taking this approach and
15 recommends to scale-up LM channel in a gradual manner.
16
17 9 FAQS
18 1. What are the changes in our operating model that we are proposing in 2021?
19 [Unorganized] In 2021, we plan to expand operations to 52 cities distributed across 8 clusters (vs current operations in 16 cities, no
20 cluster). Each cluster will be led by L4 PM and will have 5 to 8 cities. Depending on size and potential, cities or groups of cities will be
21 led by 32 L3+ PM. Clusters will be grouped under 3 regions and will be led by 3 L5 PMs. As mentioned in section 6.1 and 6.2, we will
22 introduce new low cost channels and optimize costing for existing channels for both acquisition and engagements (refer appendix 8
23 and 9 for details). For engagement, we will shift KPIs on ‘full service visits’ to focus on productive inputs (vs ‘total visits’ in 2020).
24 2. What are our key defect reduction initiatives? How are we planning to measure the same?
25 [Unorganized] a) Compliance: Refer section 3.5 and 4.1 on the initiatives taken in 2020 to improve compliance adherence. In 2021,
26 we will scale training automation across channels to ensure high quality video based content is delivered to FOS across geographies
27 followed by assessments. This will help in reducing knowledge gaps, non-compliance and SOP deviations by ensuring only Prione
28 certified FOS do new merchant acquisitions and engagements. We will also explore tech solutions like ‘auto dialer’ and integrated
29 telephony to increase the productivity of the compliance team. b) 3P FOS Hiring: In 2020, we observed that only 48% FOS join the field
30 post selection and 36% FOS exited the system within 7 days leading to loss of bandwidth and cost. To make MPAs more accountable
31 in 2021 for hiring quality and retention, we have aligned goals with MPAs on metrics like selection (goal 75%), selection to joining (goal
32 75%), retention (goal 80% for 7 days period), and included incentive/penalty clauses in work order.
33 3. What is our current org structure across levels & work Function, how will the mix across levels (L3, L4, L5) change over 2021?
34 [Unorganized] While we plan to retain the current team size for 2021, we propose to introduce cluster based operational structure.
35 As mentioned in FAQ 1, L3+ ACMs will be managing city P&L and L4 Cluster Heads will be responsible for cluster P&L. While cluster
36 heads will be based out of existing 8 operational locations, few ACMs need to shift base to efficiently manage city operations (refer
37 appendix 23 for Org. Structure and appendix 19 for proposed base locations for ACMs). We will require HR support in finalizing locations
38 and executing employee relocation exercises.
39 [Organized] In 2021, we propose to increase frontline team from 5 in 2020 (4 BDs and 1 AM) to 14 in 2021 (10 BDs and 4 AMs). In
40 order to drive efficiency in productivity and enhance employee experience and growth, we propose to have 3 leads to front line team
41 (2 BD Leads and 1 AM lead) in 2021.
42 [GC & Utilities] In 2020, both the businesses were at nascent stage with 8 resources directly reporting into one Manager. In 2021, as
43 the team size is increasing, we are proposing a team structure with one layer (cluster Manager with both IC & PM responsibilities)
44 prioritizing employee growth & experience at Prione. Should we take 1) P&L backward call with no layering, increase the issuance goal
45 by 15% or b) Employee experience backward call introducing one layer of cluster manager with 2 sales specialists mapped to them.
46 4. What are the paper cuts impacting business and needs to be addressed?
47 [Unorganized] In our partner surveys, partners have raised concerns over frequent changes in operational areas. As a result of scale-
48 downs, partners are apprehensive of APay program’s longevity and are refraining from investing in FOS hiring and scale-up. This
49 resulted in acquisition goal miss during Q4 2020. Hence, for achievement of 2021 goals, it is critical that we provide year long business
50 plan visibility to partners.
51 5. What are key connection themes (Voice of Employee) we are worried about? How are we addressing the same?
52 [Unorganized] In 2020, Scan & Pay team witnessed multiple changes in business strategy, scale-down of business (operational cities,
53 new acquisition volumes) and ramp-down of MPA channel. We reached out to employees via various channels (Pulse sessions, 1:1s
54 and n!Gage) to identify key concern areas as a) career progression within Pay function, b) clarity on 2021 business plan, c) impact of
55 COVID lockdown on goal achievements and corresponding changes in evaluation process, and d) optimization of daily stand-ups and
56 meetings in remote setup. We acknowledged and addressed these concerns over forums like Townhalls, Regional Connects and 1:1s.
57 In 2021, we will a) provide clarity on annual goals and leverage Monthly City Heads (earlier ACM) Scorecard to provide clarity on
58 performance (Owner: Sahil, ETA: 01/31), b) conduct informal pre scheduled team connects like ‘Chai Pe Charcha’, ‘Culture sessions’,
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1 etc., to improve inter-team coordination, c) reward & recognize employees by doubling down on quarterly GEM awards and rolling
2 out quarterly national contests, d) enhance PM capability for L3+ resources though advanced training & assessment programs like
3 Learn To Manage Others (LTMO) (to be driven in partnership with L&D team, DFD: 01/15), e) leverage functional ‘learning maps’ for
4 ACMs interested in moving to desired 3P teams (ETA: 01/31, Owner: Suvro), and f) scale-up Saksham as an internal learning and
5 certification platform for all the teams across payments function (ETA: 1/25, Owner: Sanjeev) (refer appendix 25 for details).
6 6. What is the automation plan for areas with significant manual effort?
7 [Operations] Considering the challenges of invoice processing (listed in Section 3.8), we will introduce an invoice processing tool to
8 take care of payout calculation, avoid manual errors and share & track invoices from MPAs at a central place (instead of emails) (ETA:
9 02/28, Owner: Satya). The new processes are replicable to all business functions dealing with 3P resources.
10 7. Apart from existing businesses (Organized & Unorganized Scan & Pay, GC and Utilities), what additional opportunities are we
11 expecting in 2021? What are opportunities which we see beyond 2021 for a long term Payments business charter?
12 Smart Stores: We have immediate visibility on supporting the Smart Stores initiative a) [Unorganized] 90D Pilot: Plan for a 90-day pilot
13 across 4 cities to acquire unorganized merchants and provide AM support (30% of merchants). We have agreed on the tenets, key
14 deliverables and are awaiting confirmation from the program team (ETA: 12/19, Owner: Abhay). Basis pilot’s performance on key
15 business and program metrics (like VOM, VOF etc.), we will finalize the way forward. b) [Organized]We plan to acquire organized
16 merchants (having 5+ retail outlets) and have proposed a dedicated L4 (regional resource) to begin (ETA: 12/25, Owner: Manoj).
17
18 We believe that due to high on-ground intensity involvement in certain businesses (which can be addressed more in person than
19 remotely), we are well placed to support new businesses within APay by building capability / synergies within the existing organization.
20
21 Online Merchants: Support 45K+ online merchant acquisition (15%-20% of 0.3 MM long tail online merchants) through 2 approaches,
22 a) Channel Partnerships (5-6 CPs in India minus 8-10 Payment Service Providers), and b) Distributed Regional teams with addition of 1
23 L4 HC in each of the 10 Tier 1 cities supported by 2-3 3P headcount. Existing CRM capabilities on Leadsquared with eKYC upload and
24 validation can help achieve instant activations for acceptance while settlements can be made after due risk checks post onboarding.
25 Co-Brand Credit Cards: While CBCC is lead generated primarily through customer’s expressing interest on A.in, the efforts can equally
26 be supported through offline origination channel of SMBs/Merchants acquired for offline acceptance. Merchants can pitch CBCC,
27 generate a lead online and complete e-KYC for Bank to credit assess the customer with data supported from Amazon and facilitate
28 issuance of CBCC. Offline Merchants with relatively high inflow of customers can use this opportunity to upsell CBCC working as an
29 Agent on ground with an earning potential of Rs. 150-200 per card issued.
30 Unorganised/Long tail biller selection: Currently, customers can pay for 15+ bill payment use cases on Amazon. We want to extend
31 this functionality for unorganized but everyday use cases like milk, newspaper, housing socities etc. Barring strategic merchants in
32 each of these categories, we can play a role in onboarding and account managing medium to small merchants.
33 Load SVA Balance: we can upgrade offline Merchants to double up as Agents to support Load balance for APay customers across the
34 counter paying in cash. While Merchants can open up a new revenue stream (potential earnings ~0.5%-0.75%) of the load value,
35 Amazon can benefit as well by reducing the cost of payment as compared to online load methods.
36 Retail Gift cards: To facilitate a completely new customer segment (N2A or N2APay), we can enable sale of physical gift cards or e-gift
37 cards across the counters of Merchants/Agents across Geographies (retail telco prepaid model). Merchants/Agents can look at
38 generating additional revenue of 3%-4% on the healthy GC issuance.
39 Assisted E-KYC/V-KYC: Merchants/Agents are smart phone enabled with good data access and can be trained/equipped to facilitate
40 e-KYC/v-KYC at their stores. With Merchants influence and familiarity with the customers, it is much easier to complete KYC than
41 overcoming the fear of an unknown coming at your doorstep. Merchants can be paid a fees of INR 100 per successful KYC completion.
42 Money Transfers (Domestic and International): With ~140 MM migrants, opportunity to facilitate Assisted Money transfers (cash to
43 bank, bank to bank and bank to cash) with offline merchants doubling as BC Agents with our Banking Partner, is immense. Upselling
44 “Chota Prime” subscriptions @ Rs 399/- for host of services including free remittance (up to Rs. 60K annually) for these migrant
45 workers opens up a whole new e-commerce customer segment who will buy small but frequently while meeting their core
46 requirement of DMT. Workers family who get regular international inward remittances can also invite direct credit invite APay wallet
47 and avail of “Chota Prime” Subscriptions with an opportunity to Transfer to Bank without any charge for full KYC customers.
48 SMB/Merchant Lending: New age Digital Banks and NBFCs have entered the foray and widely distribute such credit services through
49 Digital/ Physical channels and are flexible to work on multiple partnership models like Co-lending, First Loss Default Guarantee (FLDG),
50 Co-brand credit cards (CBCC), Origination etc. wherein they work on price adjusted relaxed credit norms while sharing risk with
51 lending/non lending partners. Prione can extend similar services in partnership with a Digital Bank/NBFC to new and engaged network
52 of SMBs/Merchants by being an origination channel without getting into FLDG or CBCC arrangement.
53 Retail General Insurance: Prione with a corporate Agent License can facilitate insurance intermediation and act as a distributor for
54 insurance products which can potentially cover a wide range for non-life insurance requirements for both network SMBs/Merchants
55 and Customers at Merchant points as part of cross sell over the counter.
56

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1 Appendix 1: Engagement Compliance Performance

Dec'20 (till
Activity Unit July'20 Aug'20 Sept'20 Oct'20 Nov'20 Total
Wk50)
Total Engagement Visits # 27,144 102243 162478 159770 156630 27129 608250
Total Audits (all channels) # 496 7409 15058 12618 5446 41027
Audit % % 0.5% 4.6% 9.4% 8.1% 20.1% 6.7%
Non-compliance % 36.3% 5.0% 3.0% 11.3% 6.5% 6.8%
2
3 Appendix 2: Brand wise active rates as of Nov’20 exit
Brand Name Live Outlet Active Outlet Active Outlet %
Twenty Four Seven 91 64 70%
Zippin Pharma 64 32 50%
Total Food Mart 13 10 77%
Chocolate Spoon & Vijit 14 3 21%
Hospitality
Kabhi B Bakery 33 8 24%
Aubree 7 2 29%
Chai Central 4 0 0%
Total 226 119 54%
4
5 Appendix 3: CRM Roadmap

SN Problem Description Our view and solutions Business Impact Priority

Amazon solution: Incorporating Merchant Active Rate-

trainings on merchant app/A.in 26%, Expected MAR- 34%
Merchants are not trained about
app to guide the merchant Prione LWT launch (2021
Merchant features of Apay UPI product i.e.
1 Prione solution: Trigerring the YTD)- 26738 Audited, LTD- P2
Training checking transaction history, benefits
video Link to the merchants 14641, LTD %age- 55%
from cash backs
from LS (it will be informed to Expected LWT launch-~15-
the merchant from FOS) 20%
Amazon solution: For new QR Reduction in Fake
code assignment during onboarding, LTD launch
onboarding or farming, penny with no secondary handle
drop transcation to be done by (refer Milian doc for
Penny drop demonstration Via the Amazon. However, this cannot number). Audited
physical QR code provided to merchant handle farming requirement Onboarding in Nov20-
ensures that the payment system is 9817, Flagged in no penny
working correctly. Due to RBI regulations drop-229, %age- 2.3%)
on no of transactions, team is unable to Prione solution: Integrate LS Reduction in Onboarding
Penny drop do penny drops. There are 2 types of with a payment gateway so Time- Onboarding time to
2 P0
transactions penny drops: that associates can trigger reduce by .5minutes as
1. To check QR code linkgae at the time penny drop by scanning QR on step to upload penny drop
of new QR assignment during both LS and transaction image will be eliminated
onboarding and farming success/failure/logs flow to LS Increase in audit sample-
2. To check if QR code is working during back from the payment With automated penny
farming gateway. Further, this would drop, Audit time per
also eliminate the penny drop onboarding to be reduced
step from audit process by ~4-5Min which increase
number of audited cases
with same bandwidth
Merchant Active Rate-
26%, Expected MAR- 34%
Merchants are not trained about
Amazon solution: Incorporating Prione LWT launch (2021
Merchant features of Apay UPI product i.e.
1 trainings on merchant app/A.in YTD)- 26738 Audited, LTD- P2
Training checking transaction history, benefits
app to guide the merchant 14641, LTD %age- 55%
from cash backs
Expected LWT launch-~15-
20%

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Amazon solution: Secondary

QR code assignment
confirmation needs to be made
Secondary QR code is part of Apay kit LTD launch with no
mandatory before parsing
that needs to be assigned by FOS. secondary handle (refer
registration status to LS to
Secondary QR Sometimes wrong QR code is assigned Miliaan doc).
ensure onboarding entitlement
3 code due to manual entry of 15-digit QR code Reduction in Onboarding P2
is only after secondary QR
assignment number that leads to higher chances of time by .2min as manual
assignment.
error or a pre-assigned QR code is QR assignement not
OCR for scanning seconding
assigned erroneously. required.
handle string from QR code
Also, A.in app has to de-dupe
for assigned QR codes
Reduction in fake
onboarrding- Fake
onboarding to reduce by
Collecting image proofs such as blurred AI based checks on image
3% as FOS are aware of
images etc. This impacts the quality of quality checks
real time audit check
4 SOP deviations onboardings and also leads to rework in Leverage eduthrill to sensitize P0
Increase in audit sample
selected cases by ground level team FoS
size- We audit ~20-30% of
hence impacting productivity. To be managed by Gigindia
onboarding. With this
sample size of audit will
increase to ~90-95%
Computer vision technology to
be integrated with LS that
would conduct checks near real
Cases of fake onboardings where checks
time and prevent FoS from
are delayed:
onboarding basis below checks: Audit sample to increase
1. Multiple onboardings at one shop
1. Store front image duplication by 100% with current audit
2. MErchants in non-desirable category
2. Validity of a store of ~20-30% onboarding.
Audit and fake 3. Onboarding without physical store.
5 3. QR code placement in Reduction in Fake P0
onboardings
storefront percentage- Fake
We capture store front images to check
4. QR code validity percentage to reduce to
if store is present, name matches with
5. Verification of QR name ~2%
database, visiting card/A4 image
against PWAIN
captured, image quality, etc.
6. PResence of branding
collateral
To be managed by Gigindia
LS uses the same integration as of google Currently, ~2% onboarding
Wrong location LS product issue to be resolved
6 maps. Merchant/FoS location is pincodes are wrongly P1
captured with LS leadership
incorrectly captured at times tagged
IC engagement incentives in addition to We need to procure access to
merchant activation also rely on metrics Amazon S3 to programatically
such as merchant performance and fetch and update data on LS.
Merchant Active Rate via
Merchant transaction value. Subsequently they This will also require infosec
engagemnet- 29%,
performance have access to merchant performance evaluation at LS end
7 Expected increase in P0 (TBD)
data on LS for data. There is a need to enable the same We need to identify relevant
Merchant Active Rate-
farming on LSIC FoS have access to merchant metrics that need to be
~50-55%
transaction/performance data so that exposed to FoS and work with
they can tailor engagement activity basis Amazon to extend relevant
merchant cohort APIs
Improvement in LWT
onboarding.Prione LWT
Associates need to undergo training and
launch (2021 YTD)- 26738
LS-Eduthrill for certification on Eduthrill. Only certified
8 Audited, LTD- 14641, LTD P0
onboarding associates will be able to use LS for
%age- 55%
onboarding/engagement
Expected LWT launch-~15-
20%
Trainings can be incorporated
Training and Enable trainings and pop-quizzes for LM in training module on LS.
9 certification for associates and block them from usage Quizzes/tests can be handled P0
LM channel whenever they do not meet test criteria. as pop-ups at check in on LS or
via integration with Eduthril

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Current onboarding flow involves 2 apps

Simplified
with multiple stages that are complex. Reduce onboarding time -
10 onboarding TBD P0
There is a need to overhaul the currently 8.7 mins
flow
onboarding process.
Need for field validations during both
User creation time without
manual and bulk user creation
Revamp of tool usage- 6-7 hour. With
Fix process for handling rejections in
11 user creation improve performance of P1
reactivation process. We need to
flow user creation tool. User to
stabilize this tool.
be created in 10-15min
Need a solution for user deactivation
After integrated flow,
Channel (FPA/LM/MSS) entitlement to
Channel Channel/Sub channels are
13 be captured against leads in Amazon P2
entitlement not tagged in Amazon
DWH
DWH
With open lead pool, FOS are
Duplication of In Nov20, Faming full
connecting/reaching location of same
lead service visit productivity-
15 merchant. With multiple channels P0
assignment in 12.4 , Expected
working on farming. This will be a big
farming improvement- ~14
blocker
Audit is done by different channels at
Prione and Amazon with each channel Improvement in Pay team
capturing audit inputs on different tools bandwidth to prepare
leading 2 days delay in identifying audit data consolidation.
All channels to
16 fraudulent behavior and deactivating Real time report to Prione P0
audit in LS
associates on priority. Consolidating team and partners. ACM
audit reports and providing near real spends 40 mins-1hr every
time audit updates will enable teams to day to create this report
take proactive action
MPA
Automated trigger of attendance sheet
17 attendance P2
in MPA
sheet
1
2 Appendix 4: Voice of Merchant (VOM) program summary
3 Table 1: Product Feature introduced as a result of VOM feedback
SN Issue highlighted in feedback Status
1 Integrated OB flow through CRM Complete
2 Consistent CB offers Complete
3 Apay app compliant on IPhone Complete
4 Real-time settlement of CB amount WIP, ETA 1/12
5 Transaction notification on alternate number BTL for 2021
6 Transaction amount mentioned in notification WIP, ETA 1/30
7 Merchant APP WIP, ETA 1/30
4
5 Table 2: Feedback summary from VOM program
What do you like most about Apay What areas do you like Apay to improve Reason to prefer IC
Amazon Brand 347 42% Branding Material 116 14% Better Merchant Offer 408 49%
Merchant Offers 282 34% Product Features 299 36% Product Feature 125 15%
Product Features 63 8% Training & Support 94 10% Brand Name 183 22%
Marketing Collaterals 39 5% FOS Behavior 54 8% Branding Material 67 8%
Training & Support 101 12% Visit Frequency 269 32% Training & Support 50 6%
Total 832 100% Total 832 100% Total 832 100%
6
7 Appendix 5 – Voice of FOS (VOF) program summary
SN Issue Highlighted Action Plan Update as on 10th Dec Closure Status Owner
ETA

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1 Associates highlighted the HR to audit the Claims and Audit completed by HR team, Week 51 WIP Ankita/Sanjeev
issue of i) not getting any Share findings Ankita and Shakeer working
visibility on PF deposits by to formalize a SOP for MPA to
agencies, ii) Agencies not provide visibility on PF to FOS
depositing complete PF
amount.
2 FOS highlighted the issue of Connect with the agencies Aligned Agencies to Week 51 WIP Sameer/Sanjeev
Agencies not providing ESIC and align them to streamline proactively share ESIC cards
cards. the process of providing ESIC with FOS. Till 10th Dec, out of
cards to all active FOS. 302 FOS, agencies have
provided confirmation on 173
FOS, Rest all are in WIP
3 FOS requested for Amazon The request was shared with Amazon team has dispatched Closed Closed Sameer/Sanjeev
branded T-shirt to gain Amazon team. Amazon T-shirts to respective
confidence of merchants cities.
while pitching the product.
4 FOS highlighted the Designed non-monetary R&R Launched "TRIUMPS", a non- Closed Closed Sanjeev
requirement of rewards and program for FOS monetary initiative to
recognition for their efforts recognize top talent where
we recognized 53 top
performing resources basis
their Nov performance.
5 FOS highlighted the issue of Automated Training: We launched “E-Drona”, an Closed Closed Sameer
Long training duration and Automate entire training automated e-learning and
unavailability of training program and make it online training platform for FOS’ in
content to refer post training for easy consumption and week49 to train FOS remotely
future reference. & certify them on various
modules related to pay
business.
6 FOS are not able to onboard Initiated a discussion with LS Enabled mechanisms in CRM Closed Closed Sanjeev/Piyush
the those Merchants with team to find a mechanism if to bring all the leads in open
existing accounts created by we can existing leads in open pool created by FOS in the
other FOS pool on weekly or fortnightly past which helped to create
basis. an additional pool of 0.25
MM merchants available for
onboarding.
7 FOS highlighted the issue of Create mechanisms and We have enabled a button for Closed Closed Sanjeev
Agencies not providing ID processes to provide and ID card form in CRM. FOS can
cards (Soft + Hard copy) post track ID card issuance to FOS fill the form by clicking the
selection which become a button. We will capture the
blocker to gain confidence of data & share with respective
merchant while onboarding. agencies on a weekly basis.
Agencies will deliver the ID
cards soft copy in 3 days and
hard copy in 10 working days.
8 FOS highligthed the issue of Find mechanisms to identify a Highlighted the issue with Closed Closed Sanjeev
difficulty in finding Merchants process to get proper visibility engagement POC who
through CRM app on nearby merchants. resolved the issue by
introducing a open pool of
leads for FOS to find
merchants near them for
Engagement saving their
travel time and money
9 FOS highlighted helpline no. Align agencies to enable Aligned Agencies to Closed Closed Sanjeev
issue and dependency on helpline no and proactively proactively reach out to FOS,
agency POC to get resoluton reach out FOS to provide Provide them the helpline no
to day to day queries. information. and assign a dedicated
resource to resolve their
queries.

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10 FOS highlighted visibility Work with CRM team and Automate process-We have Closed Closed Piyush
issues on their daily find solution to provide live enabled customized
performance scores and visibility to FOS on daily performance dashboard for
dependency on TL/Managers performance acquisition scores within
to get visibility. LeadSquared App. It has a
function like a date range,
which will provide FOS full
visibility on his daily, weekly
or YTD performance with no
dependency on his TL or
Channel Manager & we are
working on enabling the same
dashboard for engagement
scores.
11 Agencies don’t Share salary Align agencies to enable Automate Process-We have Closed Closed Sanjeev
Slip with FOS and delay the online portals to download automated the process,
salary slips salary slips for FOS wherein salary slip will be
available to FOS within a click
of button. All the manpower
agencies enabled their
portals/websites for
downloading salary slips.
Login id & password have
been mailed to all his FOS.
12 Out of total 104 detractors in Process Change- a) All the This has been implemented Closed Closed Sanjeev
age group 1-15 days 44% (46) manpower agencies are with immediate effect.
FOS highlighted that they aligned to start an
don't have proper visibility on introductory call within 48
their salary structure. For dive hours of joining with FOS, TL
deep we contacted 40 & Manager explaining them
detractors & found the below about their salary structure.
insights.
13 No guidance on career Identify mechanisms to With continuous headcount TBD Not Pankaj/Sanjeev
growth provide FOS visibility on his ramp down, we will take yet
carrier growth path in terms some time to resolve this started
of promotion or movement to issue post getting visibility on
more complex assignment. 2021 plan. While at FOS level
we already have plans to
drive Elevate Program, for TL
and Manager will we will
work and include a parallel
mechanism.
1
2 Appendix 6: Inventory Warehousing and Distribution optimization exercise
3
Category Item Unit Sep20 Nov20 Saving
Logistics Total Activity (Acquisition & Engagement) # 212,730 167,974
Total Logistic Cost INR (MM) 0.59 0.059
Logistic cost/activity INR (MM) 2.79 0.35 2.35
Storage Rental/month INR (MM) 0.24 0.08 0.15
4
5 Appendix 7: [GC] New Product Adoption/Payout Accounts
6
Accounts Business Product Issuance Discount
3DPLM GC New Products Scheduled Delivery 10,292,975 5.00%
Finolex GC New Products SMS Delivery 18,000,000 6.00%
Mankind GC New Products SMS Delivery 605,191,951 6.00%
HUL GC New Products D2A 1,800,000.00 0.00%
Make a Wish GC New Products D2A 200,000.00 0.00%
ROTEX Automation GC New Products SMS Delivery 661,250.00 3.50%
Cloudtail GC New Products D2A 300,000.00 0.00%

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Yantra Payouts QCAPI 1,200,000.00 5.00%

GLX Cart Payouts Manually (Woohoo Api) 800,000.00 1.50%
Instant Pay Payouts Swift API 100,000.00 2.00%
Cash club Payouts Manually (Woohoo Api) 8,300,000.00 2.80%
1
2 Appendix 8 [Unorganized] New Merchant Acquisition
City Type OB via OB via OB via OB via Total OB LM Cost Aggregat MSS Cost FPA Cost Total
LM Aggregat MSS FPA (MM) (INR or Cost (INR (INR Cost (INR
(MM) or (MM) (MM) (MM) MM) (INR MM) MM) MM)
MM)
Tier 1 (13 cities) 0.06 0.02 0.10 0.23 0.41 8.10 1.78 17.50 38.56 65.93
Tier 2 (20 cities) 0.06 0.01 0.08 0.19 0.35 6.92 1.52 14.53 31.97 54.94
Tier 3 (19 cities) 0.05 0.01 0.07 0.17 0.31 6.12 1.35 12.85 29.13 49.45
Total (MM) 0.17 0.04 0.25 0.59 1.06 21.14 4.65 44.88 99.66 170.33
Cost/OB (INR) 125 110 177 168 169
Channel Contri. 16% 4% 24% 56% 100% 12% 3% 26% 59% 100%
3
4 Appendix 9: [Unorganized] Merchant Engagement
5
City wise ramp up ( in FSV in Q1'21 FSV in Q2'21 FSV in Q3'21 FSV in Q4'21 Total FSV (in Contribution
MM) MM)
Tier 1 (13 cities) 0.20 0.65 0.78 0.54 2.17 63%
Tier 2 (20 cities) 0.07 0.22 0.27 0.19 0.74 21%
Tier 3 (19 cities) 0.05 0.16 0.20 0.14 0.54 16%
Total Engagement (MM) 0.31 1.04 1.24 0.86 3.46 100%
6
Engagement FSV in Q1'21 FSV in Q2'21 FSV in Q3'21 FSV in Q4'21 Total FSV Contribution Total Cost Cost/FSV
Channel (MM) (INR MM) (INR)
MPA 0.06 0.21 0.25 0.17 0.69 20% 82.94 120
FPA 0.12 0.41 0.50 0.35 1.38 40% 110.59 80
MSS 0.12 0.41 0.50 0.35 1.38 40% 110.59 80
Total 0.31 1.04 1.24 0.86 3.46 100% 304.13 93
7
8 Appendix 10: [Unorganized] Channel wise goals for Acquisition and Engagement Compliance
9
Function MPA LM Aggregator MSS FPA Overall
Acquisition 95% 90% 98.5% 97.5% 97.0%
Engagement 97% 98.5% 95% 97.0%
10
11 Appendix 11: [Organized] Cost Estimate for Field visits and CRM
12
SN Cost Description Amount (INR)
1 Field visits (Regional & National) 3,640,000
2 Field visits (Top 200) 10,624,000
3 CRM 1,216,000
4 Total 15,480,000
13
14 Appendix 12: [Organized] City and Category wise market sizing of TG in 2021
15
City F&B Softlines/ Pharma Grocery/ Beauty & Electro Fuel Entertai Airport Pine Total
Fashion Super Wellness nics nment Labs/Innoviti
Market /QC
Mumbai 48 59 7 9 19 5 6 7 2 71 233
Delhi 46 42 11 9 6 14 7 2 1 63 201
Bangalore 28 15 4 20 3 3 2 1 51 127
Chennai 1 3 5 3 2 3 1 1 2 18 39
Hyderabad 2 2 8 3 4 2 1 1 15 38
Ahmedabad 17 6 1 1 1 3 1 1 5 36

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Kolkata 7 4 14 2 2 4 33
Pune 9 2 2 1 1 1 1 17
Total 158 133 50 44 37 31 17 15 11 228 724
1
2
3 Appendix 13: [Organized] Regional classification of cities and HC
4
Region Major Cities Base BD HC AM HC BD Lead AM Lead
Location HC HC
North & East Delhi NCR, Amritsar, Ludhiana, Jalandhar, Shimla, Delhi 4 1 1 0
Chandigarh, Lucknow, Kanpur, Allahabad, Kolkata,
Patna, Ranchi, Asansol, Guwahati
West & Central MMR, Pune, Nagpur, Nashik, Indore, Bhopal, Raipur, Mumbai 3 2 0 1
Panaji, Jaipur, Jodhpur, Udaipur, Kota, Ahmedabad,
Baroda, Rajkot, Gandhinagar
South Hyderabad, Vijayawada, Vishakhapatnam, Tirupati, Bangalore 3 1 1 0
Chennai, Coimbatore, Bangalore, Mysore,
Trivandrum, Kochi, Thrissur
Total 10 4 2 1
5
6 Appendix 14: [Organized] City wise spread of AM brands from Top200
7
City Count of Merchant
Bangalore 4
Delhi 7
Hyderabad 1
Kochin 1
Mumbai 10
Total 23
8
9 Appendix 15: GC Issuance and Discount, 2020 vs 2021
10
2020 2021
SN Clusters Goals (INR MM) Discount (%) Goals (INR MM) Discount (%)
Total Incentive Business 1895 5.46% 4300 4.75%
1 Delhi Cluster-UP-Raj 630 5.46% 1100 4.75%
2 Mumbai Cluster-Guj-Pun 915 5.46% 1600 4.75%
3 Bangalore Cluster-TN-Telangana 350 5.46% 1600 4.75%
4 Total Payout Business - - 700 2.70%
5 Non Linear Channel - - 1000 4.50%
6 Total Issuance 1965 5.46% 6000 4.50%
11
12 Appendix 16: Bill Payments MAU Share
13
SN Bill Payments Categories 2019 2020 Actuals 2020 2021 Remarks
1 Electricity 1.4 2.2 2 2.6 Prione Team
2 DTH 0.9 1.9 1.4 2.3 Amazon BD Manages - 3 Players
3 Cable 0 0.5 0.05 0.1 Not yet launched fully
4 LPG 0.5 2.1 0.8 2 Amazon BD Manages - 3 Players
5 PNG 0 0 0 0.1 Prione Team
6 Broadband/Landline 0.2 0.3 0.2 0.5 Prione Team
7 Postpaid 0.7 0.9 0.5 0.7 Amazon BD Manages - 3-4 Players
8 Amazon Bill Payment 3.7 7.9 4.95 8.3
9 Prione Share 1.6 2.5 2.2 3.2
14
15 Appendix 17: [Unorganized] Product roadmap for 2021
SN Changes Introduced Status/ETA

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1 Consistent cashback offers for longer durations Complete

2 Apay app made compliant on iPhone 7 and above Complete
3 Integrated OB flow through CRM Complete
SMS will be deprecated for all merchants after public launch of merchant app.
We will communicate to merchants to download the app and track payments
4 Txn SMS with amount using app push notifications. The ETA for public launch is 01/30. SMS deprecation
is Apay wide activity as operators are treating amazon as international entity and
hence charging INR 1.75 per SMS.
5 Txn SMS to multiple mobile numbers BTL for 2021
Alpha launch already live for 100 merchants. Will be scaled to 1000 merchants by
6 Merchant App
01/15. Public launch 01/30
7 Real-time CB settlement ETA: 01/12
8 Rewards tracker in merchant app ATL for 2021. DFQ (Date for Quarter): 12/24.
Migration of unorganized merchants to UPI P2M rails
9 ATL for 2021. DFQ (Date for Quarter): 12/24.
with SSR
10 Push notification in alpha version of app ETA:01/25
11 Sound notification in hindi and english ATL for 2021. DFQ (Date for Quarter): 12/24.
Resolution of pending transaction issues faced by
12 ATL for 2021. DFQ (Date for Quarter): 12/24.
merchants
1
2 Appendix 18: [Unorganized] Product feature gaps highlighted in OP1
SN Features Feature PayTm PhonePe Google Amazon Impact on
Type Pay Pay sales
conversion
1 Merchant Phone requirement for OB (unified Essential N N N Y 20%
onboarding flow)
2 Cash Back offer for newly onboarded merchants Desirable Y Y Y N 10%
3 Single App for merchant onboarding & CRM Essential Y Y Y N 10%
4 Branding Sign Board/Glow Sign Board Desirable Y Y Y N 10%
5 Merchant App Desirable Y Y Y N 5%
6 Multiple mobile numbers to configure SMS Essential Y Y Y N 5%
7 Merchant Dashboard/Khatabook Desirable Y Y Y N 5%
8 Speaker for merchant txn confirmation Desirable Y N N N 5%
9 OTP Based Onboarding Essential Y Y Y N 5%
10 Merchant onboarding with Feature Phones Essential Y Y N N 5%
11 Support regional-local banks Essential Y Y Y N 5%
12 Ability to add more QRs Essential 10 10 10 3 2.5%
13 Enable daily settlement SMS Essential Y Y Y N 2.5%
3
4 Appendix 19: Table 1 [Unorganized] OP2 plan vs. Alternate plan (with reduced team size)
Particulars OP2 Plan Alternate Plan
ACM HC 32 23
Operational cities 52 36
New merchant acquisitions (MM) 1.06 0.76
Engagement visits (MM) 3.45 2.58
Cost per acquisition (INR) 169 169
Cost per engagement (INR) 93 93
5
6 Table 2 [Organized]
Metric Goal backward approach HC backward approach
# BD's 10 6
# AMs 4 3
# BD Leads 2 1
HC # AM leads 1 0
# BA 1 1
# Business Head 1 1
Total HC 19 12
Output # Stores to be onboarded (Regional & National) 12000 7200

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# brands to be Account Managed 23 18

1
2 Appendix 20: [Unorganized] Impact of merchant density on 1P active rates
3
4 Table 1: Change in 1P merchant active rate with increase in merchant density
1P merchant active rate (Week 34 to 37) 1P merchant active rate (Week 45 to 48)
Top 500 PIN Next 500 PIN All other PIN Top 500 PIN Next 500 PIN All other PIN
Merchant Density
codes codes codes codes codes codes
0% - 2.5% 4.50% 5.40% 6.00% 3.77% 4.20% 4.58%
2.5% - 5% 3.50% 4.80% 5.30% 2.77% 3.24% 3.73%
5% - 7.5% 3.80% 4.70% 5.40% 2.72% 3.23% 3.38%
7.5% - 10% 3.40% 3.70% 5.70% 2.20% 2.92% 3.44%
10% - 15% 3.30% 3.90% 6.10% 1.85% 2.35% 2.95%
15+% 3.00% 3.60% 6.60% 1.64% 1.82% 2.45%
Total 3.50% 4.30% 5.90% 2.45% 3.05% 3.32%
5
6 Table 2: Change in 1P merchant active rate with increase in merchant count
Merchant Count PIN code count 1P active rate (Week 34 to 37) 1P active rate (Week 45 to 48)
Up to 500 3,619 6.00% 6.01%
501 – 1000 672 5.60% 5.66%
1001 – 2000 475 4.90% 4.94%
2001 – 5000 304 4.00% 4.02%
5001-10000 81 3.10% 3.09%
Above 10000 26 3.20% 3.22%
Total 5,177 4.50% 4.54%
7
8 Appendix 21: Month wise change in channel mix during 2020, and corresponding impact on KPIs
9
Jan Feb Mar Jun Jul Aug Sep Oct Nov
Total acquisitions 279,004 340,349 248,288 312,374 184,439 139,833 49,943 47,028 11,230
Channel contribution MPA
79.8% 81.7% 71.3% 52.1% 36.4% 26.1% 1.7% 0.8% 1.1%
FPA
20.2% 18.3% 28.7% 47.9% 63.6% 69.1% 48.2% 39.5% 97.3%
MSS
0.0% 0.0% 0.0% 0.0% 0.0% 4.8% 50.1% 59.7% 1.6%
Merchant Active Rate (overall)
31.8% 31.4% 28.9% 24.0% 23.3% 23.5% 26.6% 25.4% 24.4%
Compliance % (overall)
97.6% 98.5% 98.7% 97.3% 92.7% 95.3% 96.6% 96.1% 94.0%
Cost per Acquisition (INR)
356 302 284 263 268 201 208 218 149
10 Appendix 22: Sales channel efficiency matrix (Sep20 to Nov20 period)
11
Channel Total Audit Non- Merchant Transaction per TPV per active 1P Cost per
Acquisitions Sample complianc Active Rate* Active Merchant merchant (INR) Active acquisition
% e% Rate (INR)
FPA 53,592 32.1% 5.7% 31.9% 14.51 4181 9.8% 169
MSS 53,271 32.7% 1.2% 38.7% 10.61 4817 8.4% 249
LM 255,449 29.2% 42.0% 30.5% 11.65 5682 11.5% 140
12
13 Appendix 23: Org structure and Level wise mix (2020 vs 2021)
Propose
Function Level 2020 Delta Remarks
d 2021
L6 1 1 0
Unorganized L5 3 3 0
L4 8 9 1 In 2021, BA will move to L4 scope role

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L3+ 31 32 1
4 HC in 2020 include 1 ACM, 2 regional Ops, and 1 BA. In 2021, 1 ACM
L3 4 2 -2
will move to L3+, and BA will move to L4 scope
L2 1 1 0
Total 48 48 0
Organized L6 0 1 1
L5 1 1 0
L4 0 6 6
L3+ 4 10 6
L3 2 1 -1
L2 0 0 0
Total 7 19 12
Gift Cards L6 0 1 1
L5 1 0 -1
L4 4 8 4
L3+ 2 2 0
L3 0 0 0
L2 0 0 0
Total 7 11 4
Utilities L6 0 0 0
L5 0 0 0
L4 1 2 1
L3+ 1 1 0
L3 0 0 0
L2 0 0 0
Total 2 3 1
Operations L6 0 0 0
L5 0 0 0
L4 1 1 0
L3+ 0 0 0
L3 2 2 0
L2 0 0 0 Not included 2 FTC currently working in Ops team
Total 3 3 0
Overall
L6 1 3 2
Payments
L5 5 4 -1 1 Product manager included
L4 14 26 12
L3+ 38 45 7
L3 8 5 -3
L2 1 1 0
Total 67 84 18
1
2

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Head, Payments

Projects Specialist Manager, Organized Distribution Head, Unorganized Manager, GC & Utilities

Ops Associate Sales Utilities

BA AM Lead BD Lead (2) BA Regional GC Cluster
(2) Specialist AM (3)
Manager (3) Manager (3)
(Payout)

AM (4) BD (5) Cluster Sales Specialist

Manager (8) (6)

City Head (32)

1
2
3
4
5 Appendix 24: [Unorganized]
6 Table 1 :Cluster details

Cluster Region Tier 1 Tier 2 Tier 3 Total City

Delhi NCR/HR/PUN North 1 3 4 8

UP/UK North 2 3 2 7
Guj/Raj West and Central 3 2 3 8
MAH/CH West and Central 3 2 4 9
MP West and Central 2 2 4
KAR/TML South and East 2 1 2 5
AP/TL/KL South and East 1 5 6
WB/BH/JH/NE/OD South and East 1 2 2 5
Total 13 20 19 52
7
8
9 Table 2 ACM base locations
10
SN Base City ACM HC
1 Delhi 2
2 Kanpur 1
3 Chandigarh 1
4 Amritsar 1
5 Lucknow 1
6 Ludhiana 1
7 Jalandhar 1
8 Allahabad 1
9 Varanasi 1
10 Agra 1
11 Jaipur 1
12 Kota 1
13 Ahmedabad 1
14 Mumbai 1
15 Thane 1
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16 Pune 1
17 Indore 1
18 Bhopal 2
19 Raipur 1
20 Surat 1
21 Bangalore 1
22 Coimbatore 1
23 Hyderabad 1
24 Vijaywada 1
25 Chennai 1
26 Kozhikode 1
27 Kolkata 2
28 Bhubaneshwar 1
29 Patna 1
1
2 Appendix 25: [Unorganized] Initiatives to address employee concerns
3 Table 1: Saksham roadmap
SN Program development flow - 2021 ETA

1 Develop Learning charter of Payments Org. under Saksham Scoping

2 Mandatory "Saksham Certified" program launch for new joiners within 2 weeks of Joining 1/15/21

3 Use Saksham as a program to learn tools/processes/other updates as per function developments 1/15/21

4 Adapt daily assessments on all the BAU elements, for the first 15 days of every quarter 3/31/21

4
5 Table 2: HR Pulse session with ACMs
Concerns Shared during HR pulse
session Action Taken
Job Security Addressed by Leadership team during Townhall
Multiple changes in Org Addressed by Leadership team during Townhall
Revised Goal sheet encompassing the changes in business and arrived at the score card. The revised goal,
Multiple changes in goal
logic and scoring mechanism was discussed with RM/CMs
City managers were instructed to have calendared 1:1s, and cover topics related career, way forward for
Regular 1:1
business, performance, etc.
Increase in sync CM addressed concern at city level by synchronizing multiple concern in 1 connect
6
7 Table 3: n!Gage Bottom Scoring Questions
Frequency
Category Bottom scoring questions Corrective measures
(in months)
Managers connected with ACMs understood the reasons for the feedback.
How often do you receive
Post that we leveraged R’nR mechanisms. We rolled out XX GEM awards
Manager recognition from your manager 3
and received XX MAD awards. We utilized WhatsApp groups/mails to
when you do a good job?
acknowledge and call out good performance.
How often are the 1:1 meetings City managers were instructed to have calendared 1:1s, and cover topics
Manager 2
with your manager useful? related career, way forward for business, performance, etc.
Overall, how satisfied are you with ACMs had concerns over their role due to ramp down of business in H2.
Engagement 2
your job right now? We addressed these concerns during townhall and RM connects.
I have prepared my development
Managers shared IDP after alignment with candidate. IDP progress to be
Manager plan (IDP) by the help of my 2
discussed during 1:1's as a mandate.
Manager
8
9 Table 4: ACM connect sessions
Sessions Remarks Cadence Owner
ACM Score Card Review and discuss ACM score card 1:1s City Managers
Fortnightl
Fun Events organized fortnightly fun Friday sessions RM
y
Function
TownHall connect with leadership Monthly
Leader
Culture Session culture sessions to discuss Day one culture, Shareholder letters, etc. Quarterly RM

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organize LTMO (Learn to manage others) sessions for all ACMs to groom their PM skills HR + L&D
Manager Half
Training organize MDP (Management Development Program) for ACMs who gets promoted from IC yearly L&D
to PM
ACM pulse Half
to gauge the progress of addressed concerns raised by the employees HR
session yearly
1
2 Table 5: Proposed R&R
Rewards & Recognition
Type Frequency of Award Criteria
Acquisition Champion Monthly Productivity
Engagement Champion Monthly Productivity
Compliance champion Monthly basis compliance scores
GEM Award Quarterly Day one Behavior, Bar raising performance
3
4 Annexure 26: IC benchmarking and plan for 2021
5
Type Of City PhonePe Gpay Bharatpe Paytm Apay
Engagement + Acquisition
Tier1 Engagement Engagement Engagement
Upsell + Engagement
Strategy Acquisition + Acquisition
Tier2 Acquisition Acquisition Acquisition
EDM + Engagement
Tier3 & 4 Acquisition
Tier1 MPA MSS MPA MPA MPA/FPA
Channel Tier2 FPA FPA FPA FPA FPA
Tier3 & 4 FPA FPA

Type PhonePe Gpay Bharatpe Paytm Apay

Acquisition Cost INR 140 INR 150 INR 120 INR 209 INR 169
Distribution Cost
Engagement Cost INR 110 INR 100 INR 93

6
Products and offerings PhonePe Gpay Bharatpe Paytm Apay
1 UPI QR codes Yes Yes Yes Yes Yes
2 POS Machine Yes No Yes Yes No
3 All-in-one Devices No No No Yes No
4 Sound box Yes Yes No Yes No
5 Loans No No Yes Yes No
6 Mutual Funds Yes Yes No Yes No
7 Insurance Yes No Yes Yes No
8 Credit Cards No No No Yes No
9 ATM Kiosk Yes No No No No

Utilities PhonePe Gpay Bharatpe Paytm Apay

1 Bill Payments Yes Yes Yes Yes Yes
2 Recharge Yes Yes Yes Yes Yes
3 Travel Bookings Yes Yes No Yes Yes
4 Donations Yes No No Yes No
5 Insurance Premium Yes Yes Yes Yes Yes

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6 Education Fees Yes Yes Yes Yes Yes

7 Toll & Challan No No No Yes No

Other Value Added Offerings PhonePe Gpay Bharatpe Paytm Apay

1 Nearby Stores Yes Yes No Yes Yes
2 Catalog listing Yes No No No No

3 Banner Ads on Pay App Yes No No Yes No

4 Contact-less ordering Yes No No Yes No

1
2

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