Our key success metric is no. of active investors at the end of the year, we are gunning for a 11.3 Mn active user base - 2.5X of the 4.5Mn base today.

Before we deep dive into the growth equation, let’s understand the user behaviour on platform right now -

Building blocks to the growth equation -

Total Users = ( Base - churned from base + resurrected from base ) + ( Acquired - churned from acquired + resurrected from acquired )

Input Metrics that affect our growth equation and their current health -

• Activation Rate - Only 10% logins convert to investors
• Month 12 Retention Rate - Only 15% of the Month 1 Users stay back
• Resurrection Rate - 5% of Churned Users are brought back

If the current status quo continues, the growth equation to 11.3Mn will look like this -

The target can be met, but at what monetary and strategic cost ?

smallcase will erode most of it’s current base in next 15 months, majority new acquired users will churn within next 2 years and acquisition efforts will have touched 80% of entire DEMAT user base within 2.8 years - i.e people will know and casually try smallcase but won’t graduate to core or power !

High acquisition on top of the funnel also means increasing costs, this will require ₹305Cr or $40Mn, 99% of the Series C funding it got in 2021.

The right way to grow -

We need to address the critical input metrics in our growth equation. Let’s see how our growth strategy will help in turning this equation around -

1. The #1 task to be done is to fix onboarding as soon as possible, with redefined flows and reduced cognitive overload - we expect our activation rate to improve to 25% by month 3.

The impact of better onboarding will pay results as soon as M3, a 15% improvement in retention rate is expected from here.

2. Acquisition kicks off from the get go as well, we are aware that initial churn will be on the higher side - however keeping market momentum and awareness opportunities like IPL in mind, we would launch our new creative strategy and campaign pronto - expanding our casual user base.

Product Integration will happen in phases - CRED & INDmoney will get onboarded in M1-2 and rest will be finished before Diwali in November - bringing in more core users to the base.

Diwali, New Years and Budget day are other key acquisition moments for us, while steady retargeting will tap users in payday periods and key market moments like IPOs.

Knowing that our activation & retention are better within M2, the pressure on acquisition will reduce drastically ( Vs Old Growth Equation ) in next 10 months.

3. Key product hooks will kick in within first 3 months, increasing our retention rate by 10% within M3. Retention campaigns on key investment moments and targeted offers across the year will improve our retention rate further by 2% - also upgrading casual users to core.

We have deprioritized resurrection of churned users to create keep the product & growth team focused on onboarding and E&R.

Let’s see how the new input metrics stack up vs the old -

While the efforts are further detailed out in the document, let’s see how the new Growth Equation now looks like -