The next billion-dollar startup could be on WhatsApp

Every day, 100k+ smart people read our newsletter. You can sign up here.

Hello readers,

I really dislike making phone calls, so you can imagine how delighted I was when the beauty salon I often visit started accepting appointments via WhatsApp.

In fact, making appointments is just one of the things businesses can do over the messaging app nowadays. WhatsApp is fast becoming a key mode of communication between sellers and buyers in Asia, and it could very well be where the region’s next billion-dollar startup gets its start.

Today we look at

• The potential of WhatsApp for businesses in Asia
• The fintech firm looking to make loans more accessible for Vietnam’s small businesses

The age of ‘conversational commerce’

Facebook-owned WhatsApp has changed the way people chat and interact with each other around the world. With over 2 billion users globally, the platform may not be an “everything app” like China’s WeChat yet, but it could still be a vital asset in nurturing a new wave of enterprises.

• Chat to shop: Many buyers and sellers in Asia, particularly in India and Indonesia, see shopping on websites as non-native and less personal, which is why many consumers prefer to shop via chat. Buying online has now become a multi-step experience that involves browsing catalogs, talking to store owners via WhatsApp, and asking questions before making the purchase.
• Open for business: WhatsApp has taken note of this and launched two business tools in 2018. Companies can create business profiles or showcase products and services, as well as use WhatsApp to send out customized notifications.
• Meeting the needs: As a result, “WhatsApp enablers” – companies that help others navigate WhatsApp-based chat solutions and carry out transactions via the messaging app more efficiently – are emerging.
• Missing out on the money: The one thing WhatsApp can’t do yet is handle payments – an issue that creates friction in the customer experience and might affect the app’s functionality as a business tool. Rivals Line and Zalo have already rolled out mobile payment solutions, but WhatsApp Pay has hit roadblocks in several markets, including two of its biggest – India and Brazil.

Read more: WhatsApp could be incubating the region’s next billion-dollar startup

Bridging the financial services gap

Ka-ching! Vietnam-based fintech firm Kim An Group recently announced that it will receive an undisclosed amount in series A funding from VC firms Patamar Capital, Viet Capital Ventures, and East Ventures.

• Founded in 2013, Kim An Group aims to provide a platform that enables financial institutions to run automated credit processes and provide products to meet the needs of micro, small, and medium-sized enterprises (MSMEs).
• MSMEs are underserved by financial institutions in Vietnam. These established financial firms often find this segment difficult to serve profitably because of its low ticket size, high-cost structure, and perceived riskiness.
• The new funds will be used to develop Kim An Group’s core technology system further in order to process data, optimize its credit-scoring platform, and better connect customers to financial institutions. The company is also planning on signing partnership agreements with credit institutions to develop consumer loans for individual customers, household businesses, and micro-enterprises.

Quick bytes