MIT Solve

Solution Overview

Solution Name:

Datacultr Dukan (Shop)

One-line solution summary:

Small merchants desire cheap credit, card payments & means to simplify business, datacultr converts a mobile to do all & more in 1 click

Pitch your solution.

200Mn+ Small merchants globally:

1. Lack access to formal credit

2. Lack means to accept card payments

A majority of these merchants can sell more, but lack cash to buy more inventory

Datacultr Dukan is a One Click Solution for these challenges, where the merchant's mobile device is converted into a secure shop, whereby:

1. their device becomes a POS to accept card payments

2. their credit score start getting built (basis the Data- Transactions, Inventory & Mobile usage)

3. they start getting pre-approved loans from banks

Datacultr, has the technology ready, and is working to putting together the required ecosystem

We believe we will have a significant impact on SDG 8-Decent Work & Economic Growth of 200Mn+ unbanked Small merchants & businesses.

Smartphone will help them access micro-loans, accept digital payments, generate leads & take their businesses online. Helping build sustainable businesses, expand and generate employment

What specific problem are you solving?

200Mn+ small businesses the world over remain excluded from the fold of formal credit because of various reasons, primary being lack of credit scores & collaterals that can be given out as a security. This happens because majority of this population is not in the organised sector, a miniscule of them pay taxes, its impossible to get their business & income data. In such a scenario, a very small population has access to formal credit.

Generally most of these economies also have a very weak contract enforcement record, institutional lenders therefore always find it challenging to collect EMIs in case of a default, hence such loans are fraught with high NPLs

Pilots have shown that if small merchants are provided access to working capital, the business expands by an average of 20% in the 1st year. This is because most often small businesses have the ability to sell more, but dont have cash to buy sufficient inventory; another challenge that they face is the inability to accept card payments, because of high upfront costs and maintenance.

Datacultr solves all such challenges by converting the merchant's smartphone into a soft PoS, build a credit score and provide pre-approved loans

What is your solution?

Datacultr's device technology converts a merchant's existing smartphone into a secure environment on the click of a link. The complete set up of the mobile takes a few minutes, the resulting secure mobile shop can:

Accept card payments (without any upfront payment and with minimum KYC)- using proprietary Soft PoS platform, that accepts contactless card payments
Generate the merchant's credit score, using mobile usage, transactions & inventory details. Using proprietary machine learning models
Provides pre-approved loans basis their credit scores, through bank partners
Eases business by providing automated ledger, digital vault and other financial services
Keeps the mobile secure, with option to lock & wipe data in case the device is lost or stolen, as well as track it- using proprietary Google approved mobile device management platform

Who does your solution serve, and in what ways will the solution impact their lives?

Datacultr's target population is small unbanked merchants in developing markets. We work closely with FMCG companies and their distributors to understand consumer behaviour and their needs. We also have partnerships with Visa, Mastercard and various banks, to ensure we work out the best loan & payments product for these small businesses

We engage & enrol them through our FMCG & distributor partnerships.

This Datacultr is able to build a win-win for the entire ecosystem:

Small Merchants:

Expands business, by selling to their potential
Gets access to working capital
Starts accepting contactless card payments
Generates new jobs

Banks/Lenders:

Gets access to a huge market, which was out of bounds due to high perceived risk

FMCG Companies/Distributors:

Increased sales

Mastercard/Visa

Increased acceptance of cards at the retail

Which dimension of the Challenge does your solution most closely address?

Enable small and new businesses, especially in untapped communities, to prosper and create good jobs through access to capital, networks, and technology

Explain how the problem, your solution, and your solution’s target population relate to the Challenge and your selected dimension.

Datacultr is aligned to the United Nations SDGs:

8. Decent Work & Economic Growth- Helping small merchants build sustainable businesses, allowing them the tools required to expand their business and generate employment. The one click mobile shop helps in easy & fast onboarding, its as simple as using any other App on the mobile

1. No Poverty- Datacultr helps the user get their first loan, that starts their journey of building a good credit score. Ensuring they have access to larger loans in future for any exigency

In what city, town, or region is your solution team headquartered?

New Delhi, Delhi, India

What is your solution’s stage of development?

Pilot: An organization deploying a tested product, service, or business model in at least one community

Who is the primary delegate for your solution?

Neel Juriasingani, CEO