And this is not going to work at all for Indian consumers.
The issue lies in the nature of the problem Splitwise solves, especially in India. Splitwise inherently caters to money-sensitive users, with amounts typically not exceeding ₹10,000 (split among 2-6 people). Additionally, these expenses are often irregular or short-term, such as for travel groups.✈️
In a value-oriented market like India, these issues are compounded. If Netflix struggles to get Indians to subscribe, how can Splitwise succeed? 🤔
I believe there are two major issues in managing group expenses: recording and settling expenses. While Splitwise excels at recording expenses, it falls short in providing value when it comes to settling them. This is a crucial step to closing the loop, and where the potential for revenue lies. If Splitwise or a competitor can solve the problem of settling expenses, and charge a percentage or transaction fee, it could work immensely well for Indian customers.💡Micro-transactions are the solution here.
A potential solution could be inspired by Uber: requiring users to settle their last expense before creating or joining a new group. 🚗
I am open to brainstorming user behaviour, market sentiments, and user pain points with anyone at Splitwise. 💬
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This post was originally shared by Tanish Gupta on Linkedin.