Why did we invest in Fleek?
Fleek is a unique subscription management platform that uses the budding subscription economy to create a comprehensive experience that makes managing subscriptions more seamless for its users.
They raised $2.5 million in 2022 in a round that also featured participation from Better Capital, Blume Ventures, Goodwater capital, and others.
The following reasons inspired our decision to be a part of their journey and help them with their mission:
1) UPI Rise
As India ascends to the position of the third largest start-up ecosystem in the world, it wouldn’t be imprecise to refer to the fintech industry as the force that is powering this bull-run. The industry is slated to grow to a tremendously large market size of $150 billion by 2025 with a CAGR of 24.57%. Whilst the Indian fintech landscape is indeed immensely varied, there are few success stories as resounding as UPI.
Since its launch in 2016, UPI has served as the backbone of the digital Indian economy. Last year, it facilitated transactions worth Rs 125.95 Lakh Cr, which was up 1.75X YoY. Moreover, while the uptick was a rather persistent trend across the year, the final month saw a tremendous growth with UPI enabling a transaction value of Rs 12.82 Lakh Cr, which is unprecedented.
As a direct result of how convenient the online payments mechanism has become for people nationwide, India is projected to have amassed over 700 million online transacting users across e-commerce, travel and hospitality, and OTT by 2030.
Therefore, while there was indeed significant scepticism around an average Indian’s ability to acclimatise to online payments, the introduction of UPI has really turned the narrative on its head. As a result of this, the sectors which predominantly ask their audience to pay using online mechanisms are slated to do quite well in the future.
The entire process is also slated to become far more convenience as UPI AutoPay becomes more widespread. AutoPay will enable seamless recurring payments like digital subscriptions, insurance premiums, investments, donations, EMIs, etc for millions of users in India. This is expected to have a positive impact on the nation’s demand as well due to the rising comfort while accessing these services.
2) The Rise of the Subscription Economy
The increase in the online transacting users has also brought about a great increase in the number of people who are willing to opt for services on a subscription basis. Today, India has over 424 million OTT viewers with 119 million paid subscriptions split across 49 million paying (SVoD) audiences (i.e ~10% of the viewers paying via subscriptions). Moreover, subscriptions are expected to account for 55–60% of OTT revenue by 2030.
Another major beneficiary of the sheer ease in digital payments is dating apps. In 2022, dating apps generated $70 million in revenue. While the sector is indeed rather nascent in India, post the pandemic it witnessed a 3x increase in its user base. Given that a wide majority of dating apps ask the users to pay subscriptions over a defined time period, the rapid growth in dating apps is likely to make users familiar with subscriptions further increasing penetration. Moreover, the fact that 70% of users on such apps belong to Tier 2 / 3 cities will also help penetrate the subscriptions within Bharat.
Similar growth is exhibited in other sectors like gaming, which utilise online payments and subscriptions to a large degree. As a result, more industries are looking to introduce frameworks that capitalise on growing adoption of subscriptions. However, this upsurge threatens to overwhelm users with the number of subscriptions that they have to manage. This can also discourage them from opting for subscriptions as whole, which can negatively affect quite a few growing sectors within our economy. To combat this, we need to make managing subscriptions as easy and hassle-free as possible for Indians. This is precisely where Fleek comes into the picture.
3) Excellent Team
Fleek was started by Aditya Uttaravalli and Arun A, in 2021.
An IIT Madras and IIM Calcutta alumnus, Aditya had generated much acclaim for his ability to identify peculiar yet pressing problem statement, and coming up with innovative solutions that resonate with large customer bases. He had previously worked at eminent companies like Ninjacart, Jumia Group, and Swiggy in leadership positions. Across these experiences he developed the ability have his finger at the very pulse of his audience.
Arun is another IIT Madras alumnus who has built a distinguished position in the ecosystem. He has worked in senior positions at companies like Barclays and Citi India wherein he was able to attain a treasure trove of experiences that enabled him to become the tech backbone of the Fleek experience.
It is through this ability that the team was able to identify that while the Indian consumer was swept away by the sheer convenience of online subscriptions, they were also at the precipice of being overwhelmed by the sheer quantum of subscriptions that they have to manage. To combat this growing malady, they amassed a competent team quickly and set to work.
Fleek’s clarity of vision and innovative problem-solving approach shone through quite clearly during our conversations with him. The team has also been infatuated with the dynamic leadership skills and EQ displayed by the founding team. It is these traits which inspired confidence in his ability to build a product that would strike a chord with Bharat .
4) Unique Product Vision
The intuitiveness of usage is what flows through Fleek’s philosophy.
Fleek allows its users to have complete visibility on their availed subscriptions along with complete information on the charge for the subscription and when they are due. Moreover, it allows its users to cancel subscriptions through a simple toggle. While cancelling any subscription is usually cumbersome for any user, Fleek makes it incredibly simple and transparent for its users.
Fleek also uses an extensive social framework to make its users feel right at home. People can view their friends’ subscriptions and even share some of theirs to their friends all through the app.
Further, Fleek allows its users to avail popular subscriptions at the best possible price. It also features carefully curated subscription bundles that house some of the most popular options in India at special discounts. Ease of being able to sell subscriptions will help brands further utilize the growing awareness and adoption of subscriptions.
All in all, Fleek makes use of the rapidly popularising subscription model to create a comprehensive platform that not only allows people to manage their subscriptions as seamlessly as possible, but also houses a robust social environment that captivates its followers, and a marketplace that allows its users to become a part of the subscription economy at the most optimum price possible.
Conclusion
As the Indian start-up ecosystem seems poised for global dominance, there are few sectors as vital to the Indian revolution as the fintech sector. While the sector has redefined the way we function as a society, no innovation has been as ground-breaking as UPI-powered digital payments. As a result of the ease that it bestows on the users, India is slated to have about 700 million online transacting users across e-commerce, travel and hospitality, and OTT by 2030.
As the Indian customer’s comfort level with online payments grows, the sectors which invoke digital subscriptions are also expected to fare well in the near future. As evidenced by the rapid growth of the OTT, gaming and online dating sector, the Indian audience is ready to pay for subscriptions to avail their favourite services. However, as the number of such services increases, the ability of a user to comfortably keep track of them and manage them is becoming cumbersome. Therefore, we need mechanisms that make managing subscriptions as easy as possible.
In the modern entrepreneurial era, Aditya and Arun represent the perfect archetype for leadership. They are not only immensely experienced in the ecosystem, but also take great pains to be a source of constant inspiration for their team. Their unique ability to comprehend the ailments of their audience sets them apart as a distinguished founding team.
Fleek’s greatest strength is how it manages to intertwine comfort and a feature-laden experience. It uses a toggle mechanic to allow its users to manage and cancel subscriptions seamlessly. In addition to the sheer visibility it allows its users, Fleek’s focus on adding a social layer to the entire experiences and creating a comprehensive marketplace for subscriptions sets it apart as a peerless subscription management platform.
