Wiping out Financial Illiteracy from the Country – Founder of IndianMoney.com
Majority of common man who still has almost no knowledge of financial products and how and where to invest. They easily misguided or cheated while buying different kinds of Financial Products. IndianMoney.com is the First Financial Education Company in India which provides free Financial Education/Advice to investors and ensures that investors are not misguided/cheated.
Facts and Figures
Holding Company – Suvision Holdings Pvt. Ltd.
No. of consumers served till date – 6.8 Lakhs Plus (pan India)
Founded on – Sep 2008 (Headquarters – Bangalore)
Current Employee Strength – 96
- For Consumers – Free Financial Education over the Phone to anyone in need of it
- For Associates – Quality leads of interested consumers who wish to check out financial products
Funding – Angel Funding – from Mr. Ravindra Krishnappa and Dr. Shekhar Kirani.
Institutional Funding – from Hyderabad Angels, headed by Mr. Srini Kopollu (Ex- Microsoft India MD) and Dr. Pradeep Mittal (Founder of Magna Infotech)
An exclusive interview with Mr. C S Sudheer (MD and Founder) to get more about their processes, thoughts and mission.
MindCron :- How do you empowering/educating Indian investors through IndianMoney.com?
Mr. Sudheer :- We are India’s No.1 Financial Education Company. We are the only one in India that provides information related to finance and investment over the phone. We do so because we find a need for a service like ours. Personal Finance is a subject that is neglected in our formal education system. The common man is left to the advice from family and friends for making his financial decisions.
This is where IndianMoney.com comes in. We clarify any doubts or queries that a person might have regarding his finances and investment. We don’t charge the consumer for the financial education and also as we are not associated with any seller of financial products; the education that we provide to the consumer is therefore genuine and unbiased.
We also provide tips and a checklist that the consumer needs to know before buying the financial product of his choice. This would eliminate the chances of the consumer falling for the unethical sales practices of agents.
Consumers can leave a missed call at our helpline number or leave a request for free education on our website. In both cases we call back the consumer and resolve his/her query.
MindCron :- What’s the idea behind to start a financial education company?
Mr. Sudheer :- The idea of IndianMoney.com was born in early 2008 when I met an auto rickshaw driver. I was working with a multinational broker back then. The auto driver shared with me that he had bought an insurance policy from my company in which he was told that if he pays Rs. 25,000 once, he would get a return of 1 lakh after 3 years.
On checking his policy documents I realized that he was tricked into buying a ULIP plan under which he had to pay Rs.25,000 for 3 years and based on the market conditions, he could get back an amount to Rs. 1 lakh.
This incident disturbed me as till that point of time I never thought of the business of selling insurance from a customer’s point of view. I realized that there was a vast majority of Indians who still had almost no knowledge of financial products and how and where to invest.
I came up with this idea where a customer could call to a helpline and get his queries on finance and investment answered and cleared. This is how the idea of IndianMoney.com was born.
Right from the inception, our motto has been, “Advisers should not Sell and Sellers should not Advice”.
MindCron :- Do you follow any mechanism to ensure quality and appropriate financial suggestions.
Mr. Sudheer :- The Wealth Doctors (one who provides financial education on the phone) have educational background in finance/economics. All our wealth doctors are certified internally, and periodically tested for competence.
MindCron :- Do you have tie up with any financial institution to promote their products/policies?
Mr. Sudheer :- No, currently we provide education/clarify doubts only on the Phone. As a matter of fact this is the reason we are able to provide unbiased and impartial advice. We have no ulterior motive when it comes to the actual sale. Our job is to give the right advice only.
MindCron :- What are the biggest Challenges with Indian retail and corporate investors ?
Mr. Sudheer :- The Indian retail investors are one of the least informed investors. Our endeavor is to advise at least 1 cr Indians covering a large number of investors as well as laymen in general. For the corporate clients we may offer a paid service, but that’s just in the drawing board stage. More over our focus is on the small investor who does not have access to the right tools or resources for take the right investment decision. Highest instances of mis-selling happen in this segment, especially in insurance.
MindCron :- What are the most common demands/expectation from investors. Does Indian financial system create a suitable environment to fulfill investor’s demand?
Mr. Sudheer :- We are in the business of providing impartial financial advice to those who seek it. Most common demand is principal guarantee and security of the investment. They are wary of Ponzi scams by run of the mill operators. The aspiration levels are very high and they want to go from lower middle class to the upper middle class, for which our advice helps them.
MindCron :- What is your revenue Model and road map for future growth?
Mr. Sudheer :- We can provide end to end service to the consumers that get in touch with us. i.e after providing them the financial education that they are looking for, we can connect them to service providers from different companies from their locality. We do so only on the consent of the consumer. All this is done absolutely for free and the consumer is in no obligation to buy any product from the service providers.
We don’t charge the consumer that get’s in contact with us for financial education. But we charge the service providers a referral fee for every lead that is transferred to them. We don’t charge a success fee but only a referral fee and therefore remain unaffected whether the service providers makes a sale or not. The service providers are agents selling financial products and have signed up with us as our associates in order to get leads for their business.
In terms of growth, since 2008 we have provided financial education/advice to over 6 lakh unique consumers across India. Our next aim is to strengthen our fundamentals and build capacity to provide financial education/advice to 30 lakh consumers a year (by FY 15-16).
MindCron :- As an Startup Company, What are the biggest challenges you are facing ?
Mr. Sudheer :- The challenges were mostly felt during the initial days. I am a first generation entrepreneur with no business background. Hence, everything in business was new to me. I had my share of teething issues like finding the right talent, adhering to all statutory compliances and to understand the technology as I am from a non-technical background.
MindCron :- How do you want to guide upcoming young Indian Entrepreneurs?
Mr. Sudheer :- From my own learning, my advice to young entrepreneurs would be:
- Just being passionate about what we are doing will not make the business successful. One must have a strong Business Strategy
- There might be a difference in the Consumer and the Customer. It’s better to know if there is a difference early on in the business
- While building the business, an entrepreneur should not become the sole engine
More on http://indianmoney.com/