Home / Case studies / Easy Udhaar

Case Study · Fintech · Product Design & Strategy

Easy Udhaar: Making Credit Accessible to Every Kirana Store

A full product design exercise for a micro-credit platform targeting 12.8 million unorganised grocery retailers in India - solving the liquidity crunch that no bank, app, or distributor had cracked.

Product Easy Udhaar (0 to 1)
Sector Fintech · Micro Credit
Target Kirana Store Owners, India
Goal 5% grocery retail market in 3 years
Institution Great Lakes Institute of Management
Team Group 4 · Komal Sikka + 4 others

Step 01

The Problem: Ganesh needs capital, but every door is broken

Meet Ganesh. 35 years old. Runs a small kirana store in Kandivali, Mumbai. Every month, he needs to restock - and every month, he faces the same wall.

I could take a loan from digital lending institutions but interest rates are high and I will have to pay back so much more. I am not sure if I can afford it.

My area distributor gives me interest-free credit, which sort of works for me - but it limits my options. I cannot go online or to other distributors who offer better pricing. How can I expand the inventory?

I might need to shut my shop for a few hours multiple times to visit the bank for documentation. And I don't have a credit history, so I might just get declined anyway.

The Core Problem Statement

Kirana stores need instant, interest-free liquidity support - just like distributor credit - but obtained via a formal channel that is user-friendly and business-friendly. The informal system works but imprisons them. The formal system is free but unreachable.

Why the current options all fail

Distributor Credit (Informal)
  • Interest-free - ideal
  • But locks them to one supplier
  • Cannot buy from other distributors or online B2B
  • Limits inventory variety and pricing options
  • Not available to smaller stores with low margins
Banks & Digital Lending (Formal)
  • No credit history = automatic rejection
  • High interest rates: 12% - 30% p.a.
  • Multiple bank visits, heavy documentation
  • Long turnaround time
  • Collateral requirements impossible to meet
Root Insight
The ideal desired state is not a loan. It is interest-free credit through a formal system - freedom without the strings of the distributor relationship.

Step 02

Market: A massive, underserved, unorganised sector

12.8M
Total grocery stores in India
28,000
Grocery stores in Bangalore alone
Rs 4L
Monthly credit margin per grocer (80% of Rs 5L avg stock)
5%
Market share target in 3 years

Porter's Five Forces

Threat of Substitutes
  • Distributors and area wholesalers (deeply embedded)
  • Friends and family
  • Existing private commercial banks
  • Local money lenders and pawn brokers
Bargaining Power of Customers
  • Strong - interest-free distributor credit already exists
  • Multiple digital lending options entering market
  • High price sensitivity
Threat of New Entrants
  • New digital lending apps proliferating
  • Banks offering unsecured loans at lower cost
  • P2P lending platforms
What we must offer to win
  • Interest-free or near-zero cost credit
  • Instant access - no waiting
  • Quick one-time documentation
  • Alternate credit scoring (no history needed)

Step 03

Users: Two personas, same pain, different contexts

Ganesh
Retailer Shopkeeper · Age 30-35
Income: Rs 10-20L/year
Experience: 10 years in retail
Focus: Expand business, grow inventory variety
Fears: Lengthy loan process, high interest rates
Pet peeves: Multiple bank visits, tedious documentation
Motivated by: Multiple vendor payment solution
Info sources: Newspapers, pamphlets, radio, in-app ads
Ramesh
Grocery Shop Owner · Age 50-52
Income: Rs 20-25L/year
Experience: 20 years in retail
Focus: Buy from different vendors, maintain stock quality
Fears: Locked to one vendor who can offer credit
Pet peeves: High interest rates, multiple bank visits
Motivated by: Instant credit, multiple payment solutions
Info sources: Offline - vendors, radio, newspaper

Jobs To Be Done

  • Purchase stock from different distributors - not just the one who gives credit
  • Pay monthly business expenses (rent, salaries, electricity) on time
  • Maintain fund rotation cycle without disrupting daily operations
  • Introduce new stock variety and expand SKUs
  • Provide discounts to acquire new customers
  • Offer credit to their own regular customers

Empathy Map: What Ganesh thinks, hears, sees, and does

Thinks & Feels
  • Can I get an easy, hassle-free loan without visiting the bank?
  • How will I pay rent, salaries, and electricity on time?
  • Can I get funds to purchase from a distributor who needs instant payment?
  • Is a loan worth the effort if I might get declined anyway?
Says & Does
  • Takes short-term credit from area wholesaler
  • Borrows from friends and family
  • Forced to buy only from distributors who give credit
  • Cannot explore online B2B sellers or better-priced options
  • Cannot shut shop to spend multiple days at the bank

Step 04

Solution: Easy Udhaar - interest-free micro credit, one tap away

Vision: Make digital credit accessible to all. Mission: Become the #1 trusted digital partner for small business owners for fulfilling their financial needs.

What Easy Udhaar offers

  • Interest-free micro credit line for short durations (7-30 day cycles)
  • Alternate credit scoring - no credit history required
  • One-click documentation and instant KYC verification
  • Multiple withdrawal options: UPI, direct bank transfer, utility bill payment
  • Multiple repayment options: full amount or partial payments
  • Annual subscription model - low entry fee, no per-loan interest

Product Principles

For the user
  • Privacy and security of data at all times
  • Paperless documentation - zero physical visits required
  • Quick turnaround: instant KYC and credit line allocation
  • Quick assistance when needed
For the business
  • Alternate credit evaluation as a core differentiator
  • Subscription revenue independent of credit line size
  • Penetration pricing to break into the distributor credit habit
  • NBFC partnerships for lending capital

Value Proposition Canvas - Key Differentiators

Interest-free
Credit line for stipulated periods - matches distributor credit, beats all competitors
No history
Alternate scoring mechanism evaluates creditworthiness without traditional credit history
Paperless
Seamless credit line processing - one-time document upload, no bank visits
Any vendor
Freedom to buy from any distributor, online B2B seller, or wholesaler

What Ganesh says after Easy Udhaar

All application process was done online and credit line was allocated to me in almost no time - even though I did not have a previous credit history!

I can now withdraw credit line to my bank account or make direct online payments without any restrictions!

I don't have to repay huge interests. I just pay back what I took as soon as I earn revenues!

Step 05

Competition: The crowded but broken lending landscape

The digital lending market in India is active - but none of the existing players offer the combination of interest-free credit, instant approval, and alternate scoring that Easy Udhaar proposes.

Lender Loan Amount Approval Time Interest Rate Key Gap
Banks Up to Rs 25L ~1 week 11.2 - 22% p.a. Collateral, credit history, multiple visits
LendingKart Rs 1L - 5L 2-3 days 1.25%/month Interest-bearing, limited cities
FlexiLoans Up to Rs 1Cr 48 hours 1%/month Interest-bearing, large loan focus
Bajaj Markets Up to Rs 25L 24 hours 3%/month High interest, not kirana-specific
myKinara Rs 1L - 30L 36 hours 21-30% p.a. Very high interest rate
Easy Udhaar Short-term micro credit Instant Interest-free Annual subscription only. No interest ever.
Competitive Moat
No competitor offers interest-free credit. The distributor does - but with strings attached. Easy Udhaar's moat is delivering the distributor's terms through a formal, digital, unrestricted channel.

Step 06

Product: 5 Epics that define the MVP

The MVP was designed around five core epics covering the complete user journey from sign-up to repayment. User stories were validated against user research and MVP feedback.

Epic 01
Login & Sign Up
Phone OTP login, MFA, registration with personal details, language selection, Aadhaar-linked verification, password reset.
Epic 02
Notifications
OTP delivery, application status updates, transaction alerts, repayment reminders, new scheme announcements, repayment confirmations, failure alerts.
Epic 03
Registration & KYC
Document upload and verification, alternate creditworthiness evaluation, automated credit line allocation, AMC (annual subscription) payment, dashboard activation.
Epic 04
Payment & Withdrawal
UPI payments to wholesaler, direct bank transfers, utility bill payments, credit line validation per transaction, transaction status updates.
Epic 05
Collection & Repayment
Full or partial repayments, multiple payment modes, overdue tracking (interest charged after 90 days), credit line blocking and unblocking, credit re-evaluation post-reactivation.

MVP Feedback and Enhancements Identified

  • Users want payment due date reminders and application status change notifications
  • Loyalty points or early repayment credits as incentive
  • Better interface to show multiple credit withdrawal history in one place
  • Alternate Aadhaar verification for users whose phone is not linked to Aadhaar

Step 07

Business Model: Subscription, not interest

The core value proposition is interest-free credit. To make up for revenue, Easy Udhaar uses a subscription model - users pay a reasonable annual fee to access the platform throughout the year. The subscription amount is standard and independent of the credit line allocated.

Why Penetration Pricing

The product is designed to replace a deeply embedded informal lending framework - distributor credit. To break into this habit, the product must be introduced at a low enough entry point that users are willing to try it. Once they experience the freedom to purchase from any vendor without restriction, retention is expected to be high.

Key Partners
  • NBFCs - lending capital
  • Background verification companies (PAN, Aadhaar)
  • Payment gateways
Revenue Streams
  • Annual subscription fee (AMC) - primary revenue
  • Future: monthly, quarterly, and 6-month billing plans
  • Future: tiered plans as product features expand
Cost Structure
  • IT infrastructure and platform maintenance
  • Partner fees (payment gateway, KYC verification)
  • Backend operations and customer support
  • Risk and liability management
Key Activities
  • Credit and risk assessment via alternate mechanisms
  • Origination, lending, and recovery operations
  • Platform maintenance and product metrics
  • NBFC network management

Step 08

Go-to-Market: Meeting Ganesh where he already is

Ganesh is not on LinkedIn. He is on his two-wheeler at a petrol pump, at the local dhaba, listening to the radio during the 11 AM - 5 PM lull in his store. The GTM strategy goes where he is.

Where Ganesh Spends Time and Money

Time
  • 10 hours daily at the store
  • Facebook and WhatsApp / Telegram
  • YouTube and radio during the day
  • TV news in the evening
Money
  • Mobile recharge platforms (MyJio, Freecharge, GPay)
  • Petrol pump near the two-wheeler refilling area
  • Local dhabas and tea stalls
  • Local street markets for family shopping

Acquisition Channels

  • Ads on mobile recharge platforms: MyJio, Freecharge, GPay, PhonePe
  • Ads at petrol pumps near two-wheeler refilling areas
  • Pamphlets outside small dhabas and tea stalls in commercial areas
  • Pamphlets on autos and buses in commercial neighbourhoods
  • YouTube pre-roll ads and Facebook ads
  • Promo SMS campaigns
  • Radio and TV ads during 11 AM - 5 PM day slots
  • Local newspaper ads in vernacular print

GTM Launch Roadmap

01
Developing Plan
Create messaging, validate hypothesis, build community, find promoters
02
Beta Test
Pick digital channels, launch beta, gather feedback from early adopters, finalize content
03
Launch
Pamphlets, social media seeding, introductory offers, launch event, observe and iterate