Mahindra War Room 2017 IT - Comviva Business CaseletMAHINDRA INFORMATION TECHNOLOGY SECTOR COMVIVA BUSINESS CASELET - TERRAPAY GROWTH STRATEGY Mahindra Group forayed into the budding information technology sector in 1986, with the formation of Mahindra British Telecom, as a joint venture with British Telecom created to provide telecom technology outsourcing solutions. The company was a niche provider of IT solutions primarily to the telecom sector, with the growth driven by the vagaries of the telecom vertical. Independent of this operation, Mahindra acquired a silicon valley based start-up called Bristlecone, which specialized in offering supply chain consulting and implementation services on the SAP platform for the US market. Bristlecone continued to offer Supply Chain consulting services as an independent company operating in the US after the acquisition. For Mahindra, the defining moment in its IT journey came in the form of a corporate black swan event - the Satyam Scandal of 2008-9. In a deal fraught with risk and uncertainty, Tech Mahindra acquired Satyam - a company twice its size and higher in profile - in a competitive bidding process, and subsequently merged the operations into itself, creating one of the largest merger deals in India’s Tech Industry. This acquisition created a positive asymmetry, enabling Tech Mahindra to gain exponentially from the large customer base, superior processes and diversified solutions across business verticals. Tech Mahindra and Mahindra Satyam became one entity, to create India’s 5th largest software services company. Between 2010 and 2012, British Telecom exited the joint venture. In 2012, Tech Mahindra acquired Comviva, a bangalore based company offering value added services for mobile operators. This was another positive asymmetry move which the company took to ensure that its is able to leverage the mobile based digital revolution. Today, Mahindra Group’s Information Technology Sector clocks revenues of over USD. 4.5 Billion annually, from three distinct businesses - Tech Mahindra, Bristlecone, and Comviva - offering Information Technology services in the areas of Network. Mobile, Analytics, Cloud, Security, Social and Sensors, across 50 countries world-wide, with a rich clientele of Fortune 500 corporations. Mahindra Comviva is a global leader in providing mobility solutions with an extensive portfolio spanning mobile finance, content, infotainment, messaging and mobile data solutions. Mahindra Comviva enables service providers to enhance customer experience, rationalise costs and accelerate revenue growth. Comviva mobility solutions are deployed by over 130 mobile service providers and financial institutions in over 90 countries, impacting the lives of over a billion people across the world. In India Broadvision Perspectives Client Confidential Page 1 of 4 Now it is the turn of TerraPay. Samsung Pay) as well as the Apps created by the Banks themselves (SBI Buddy. Just like how PayPal made payments easy and possible. Vodafone and Idea among many others. as well as the required people and technological expertise in building and operating systems for large-volume but low-value payments. with its office based in Lagos.Mahindra War Room 2017 IT . In the concept of Antifragility. Today. There is a "hedonistic treadmill" effect because to a customer there isn't much difference in the choice that he needs to make. In the process. Comviva has created TerraPay to bridge this gap. is that they are islands that do not interoperate with each other. by making international payments interoperable by using a consumer’s mobile number (MSISDN) as their unique identity. Mahindra Comviva has huge "transferability" opportunities when it comes to Broadvision Perspectives Client Confidential Page 2 of 4 . and applying it to another system to make it more efficient. the world of Mobile Internet has seen disruption like never before. With faster networks and more efficient phones coming in every other year.person to person. and are associated with a unique mobile number often designated to a specific customer.using the knowledge of one successful system. Airtel Money). Comviva’s successful hyperlocal Zerch App was the subject of MWR Season 8 Live Challenge. and the successful Zoto app from Nigeria was the subject of MWR Season 9 Live Challenge. Also. Mobile payments gain an edge over computer based payments as they are often connected directly to fast mobile networks. One of the major drawbacks of the Mobile based payment instruments. are more ubiquitous than computers. A key feature of this ecosystem is the reality that one Mobile Wallet is not differentiated from the other when it comes to benefits. this is called “Transferability” . most mobile based payment instruments do not offer international payment services . other than paying through the card online. LIVE BUSINESS CHALLENGE: TERRAPAY GROWTH STRATEGY Mahindra Comviva has evolved into a leading player in the providing of B2B Mobile Financial Services across the globe. Mahindra Comviva has built strong relationships with Mobile Money Operators across the globe. however. or otherwise. Comviva has significant operations in Nigeria. Ever since Steve Jobs introduced the legendary iPhone in 2007. one of the most impacted business is online payments.Comviva Business Caselet Mahindra Comviva’s customers include all the top 3 telecom operators – Airtel. using just an email address. Payment Apps (such as BHIM. it is not possible to transfer money from Wallet A of Operator 1. HDFC Bank App). using just a mobile number. TerraPay enables cross-border payments in real-time. a customer who wishes to transact through mobile has the option of using Mobile Wallets (such as PayTM. to Wallet B of Operator 2. For example. Middle East. The strategy should include key Target Markets to be addressed over the next 3 years. The network has the capability to facilitate a broad transaction set including interpersonal transfers. the competitive landscape in these target markets. And as a fully regulated financial intermediary services network. eKYC. South Asia. through TerraPay’s network in which both X and Y are TerraPay partners: Currently. e-payments and government disbursements. Tanzania. from a money transfer operator “X” in UAE to Person B’s Mobile Wallet “Y” in Kenya using Person B’s mobile number. Kenya. It is operational in other jurisdictions through licensed partners. The following diagram shows how Person A can send USD. TerraPay’s key strength is in “creating optionality” by offering an end-to-end payment solution through services such as compliance. Mobile Money Operators Money Transfer Operators and Banks . 100 in real time. in the European Economic Area.Comviva Business Caselet using the learnings gained in the B2B segment and applying them to the B2C segment. for secure and seamless transnational movement of funds. Being Platform agnostic. regulatory cover. such as Payment Service Providers.Mahindra War Room 2017 IT . TerraPay assumes end-to-end responsibility for regulatory compliance. Mauritius. foreign exchange management. devise a strategy and a business plan for TerraPay to become a global “one network” for mobile focused international payments. Botswana. North Africa and Europe. through its subsidiaries. Broadvision Perspectives Client Confidential Page 3 of 4 . payments. TerraPay is operational for P2P cross-border payments in sub-saharan Africa. partners gain access to a global payment network. Given this backdrop. South Africa. DRC and Congo. system integration and white-labelled apps for partners. TerraPay is licensed. the regulatory and other Challenges in the identified markets with approaches to overcome these challenges. Through a single connection. foreign exchange. TerraPay supports standard open APIs for integration with any payment platform. funds settlement and reporting.to create a one network. reporting. TerraPay is a B2B service that interconnects with other ‘Partners’ in the ecosystem. and a sharp definition of TerraPay’s right to win.Mahindra War Room 2017 IT . Broadvision Perspectives Client Confidential Page 4 of 4 .Comviva Business Caselet the Key Partners such as Mobile Money Operators. Banks. the alternate Revenue Models and break-even points subject to launch timelines in the identified markets. Retailers and other Payment Service Providers with whom TerraPay should connect. the GoToMarket Strategy. and the associated risks involved. Money Transfer Operators.
Report "Mahindra Comviva - IT - TerraPay Business"