Comviva: Exploring New Frontiers (A) Notes

Comviva, formerly Bharti Telesoft, provides mobility solutions globally.
Started in 1999 as a VAS provider in India, catering to low-income, unbanked prepaid mobile users.
Expanded to 95 countries, offering mobile finance, entertainment, and data analytics.
CEO Manoranjan ‘Mao’ Mohapatra aimed to expand into developed markets while considering further opportunities in emerging markets.

Airtel adopted a high volume-low tariff strategy in 1995, increasing mobile phone demand and VAS.
Feature phone VAS included ringtones, horoscopes, news, and mobile payments via USSD.
The launch of UPI boosted mobile payments, with apps like Paytm and Google Pay using the platform.
Reliance Jio's subsidized 4G data in 2016 led to significant data consumption growth.
Telecommunication operators faced declining voice ARPUs, leading to mergers like Vodafone Idea.

Launched by Bharti Group in 1999 to develop mobile software for Airtel and other operators.
Products targeted low-income users with feature phones, including IVR software.
Faced challenges during the dot-com bubble burst but was saved by a deal with IBM and cRBT software success.
Acquired CellCloud Technologies in 2002 for mobile financial products like PreTUPS.
Acquired Jataayu in 2007 to enhance smartphone VAS offerings.

Expanded into Africa due to similar demographics to India.
Entered Nigeria in 2000, focusing on prepaid customers.
Deployed PreTUPS™ in Bangladesh in 2005, followed by Mobiquity® Money to facilitate mobile financial transactions.
Regulatory challenges in Bangladesh led to a refocus on Africa.

Accelerated financial inclusion efforts in Africa, offering mobile phone-based money transfers.
Launched EcoCash in Zimbabwe in 2011 with Econet Wireless, utilizing USSD and IVR.
Introduced EcoCash Savings Club for informal savings groups.
Partnered with Mastercard to launch the EcoCash debit card.
Achieved significant market penetration, doubling financial inclusion in Zimbabwe.

Ventured into mobile entertainment in Africa and the Middle East, creating Mobile Lifestyle Solutions (MLS).
Provided audio music to African customers, focusing on local content.
Partnered with TRACE TV for a karaoke singing competition.
Developed a content platform called Mooditt, which saw limited financial success due to piracy.

Faced currency devaluation in Zimbabwe and payment issues from operators.
Navigated regulatory challenges by increasing local expertise.
Grew at a CAGR of 18% between 2005 and 2015, with Africa contributing over 45% of revenue.

Expanded into Eastern Europe in 2005, offering Call Management software.
Faced resistance due to preference for Western technologies and lack of a partner strategy.
Exited the market after five years.

Began operations in Central America in 2010, partnering with Tigo.
Experienced difficulties due to cultural and language barriers.
Acquired Advanced Technology Solutions (ATS) in 2014 to improve local support and portfolio.

Implemented changes post-acquisition, retaining leadership and minimizing expatriate roles.
Addressed employee morale by making retroactive payments.
Improved relationships with telecommunication operators, increasing customer satisfaction.
Faced high inflation, currency depreciation, and payment delays.
Dealt with constant contract renegotiations and competition from larger and smaller vendors.

Acquired Emagine in 2017 to gain a developed market reference and enhance product portfolio.
Emagine specialized in real-time decision engines.
Acquisition brought in clients like Optus, Virgin Mobile, and Vodafone Australia.

Developed Yabx in 2019, a finance technology solution for credit scoring based on telecommunication customer data.
Aimed to bridge the gap between unbanked mobile users and banks.
Sought to expand beyond banking to other financial services like insurance.

Focused on tax savings, utilizing double tax avoidance treaties.
Pooled earnings in holding companies to maximize interest and offset currency depreciation.

Comviva evolved from a VAS provider to a global presence serving diverse industries.
Emphasized the ability to quickly adapt and learn from failures.
Focused on growth and exploring new opportunities in both emerging and developed markets.

Based on the provided text, here are potential internal and external analysis points for Comviva:

Internal Analysis Points:

Strengths:
- Experience in serving low-income, unbanked prepaid mobile users.
- Successful mobile financial products like PreTUPS™ and Mobiquity® Money.
- Ability to adapt and learn from failures.
- Strong presence in Africa.
- Tax saving strategies utilizing double tax avoidance treaties.
- Acquisition of Emagine provided a developed market reference and enhanced product portfolio.
Weaknesses:
- Challenges in developed markets initially (Eastern Europe).
- Difficulties in penetrating certain markets due to cultural and language barriers (Latin America).
- Limited financial success with the Mooditt content platform due to piracy.

External Analysis Points:

Opportunities:
- Expansion into developed markets.
- Offering solutions to banks in South East Asia.
- Growth in mobile payments and financial inclusion, especially in emerging markets.
- Leveraging Yabx for credit scoring and bridging the gap between unbanked users and financial services.
- Increase partnership sales.
Threats:
- Currency devaluation and payment issues in certain markets (Zimbabwe).
- Regulatory challenges in various countries.
- High inflation and currency depreciation (Latin America).
- Competition from larger and smaller vendors.
- Declining voice ARPUs for telecommunication operators affecting VAS business.