Gift management platform Qwikcilver lords over the domestic market. Now, it wants to go global
Kumar Sudarshan (left), co-founder and CEO, Qwikcilver, and TP Pratap, co-founder and chief marketing officer, have built an advanced gift card management platform from scratch
Image: Selvaprakash Lakshmanan for Forbes India
About ten years ago, TP Pratap, Kumar Sudarshan and Bhaskar Vasudevan faced a universal problem: Finding an appropriate gift for friends and family. “The alternative was gift vouchers,” Pratap, 47, tells Forbes India. They, however, say they found the process cumbersome given the trouble one had to go through to take care of or redeem the paper vouchers. Around the same time, they learnt about the popularity of gift cards in the US, which account for over 30 percent of the total gifting industry there.
Sensing a gap and an opportunity in India, in 2008, Pratap, along with his BITS Pilani classmates Sudarshan and Vasudevan (who has since moved on), founded Qwikcilver, a Bengaluru-based gift card (stored-value cards) technology company. It partners with retailers to provide the backend technology for their gift cards, thereby allowing corporates and customers to purchase and redeem gift cards seamlessly through the brands’ online and offline platforms. Unlike other gift vouchers, which had to be redeemed on a different PoS, Qwikcilver successfully integrated its technology with that of the software provider of the billing system (say Visa) used by the retailer.
The closed-loop and semi-closed-loop gift cards (that can be redeemed at one brand store and at multiple brand stores respectively) are either ‘powered by’ or ‘issued by’ Qwikcilver, depending on the brand’s requirement. “In the case of ‘powered by’, our role is that of a technology enabler and service provider. To give you an analogy—you would have a laptop that says Intel Inside. Likewise, each of these gift cards is powered by Qwikcilver. We are the Intel Inside in the gift card programmes in India,” says Pratap, co-founder and chief marketing officer. “In case of ‘issued by’, we are also legally the issuer of the card; we are using our RBI licence to issue these cards,” adds Sudarshan, 48, co-founder and CEO.
In less than 10 years, Qwikcilver claims to have garnered 90 percent market share—which translates to most of the redeeming in the country. Not surprisingly, what started as a five-member team working out of a basement in HSR Layout in suburban Bengaluru has transformed into a company with 280 people and offices in major Indian cities as well as presence in international markets like Russia, the Middle East and Australia. The company has partnerships with 150 marquee brands—Levi’s, Taj, Oberoi, Hackett, Infosys, Landmark Group, Amazon, Lakme Salon and Häagen-Dazs to name a few—and over 400 corporate tie-ups. Currently, around 85 percent of Qwikcilver’s revenues come from corporate clients and the rest from retail.
If the need for a product or service is repetitive—a salon, for instance—then a gift card for that category will work well, says Pinakiranjan Mishra, partner, sector leader, consumer products and retail, for Ernst & Young–India. Qwikcilver operates in around 25 consumption categories, including hospitality, retail, health and wellness, fashion and food among others. Its commission on each partnership varies from 1-5 percent. Sudarshan says the company is doubling its revenues year-on-year, but refuses to divulge the revenue figures. “We are also Ebidta positive,” he says.
In 2016, the cloud-hosted SaaS (software-as-a-service) company handled gift-card transactions worth Rs 3,000 crore through 160 million transactions. It is targeting Rs 4,000 crore this year and expects transaction value to reach Rs 12,000 crore by 2019-2020.
Investors, too, have seen the potential in the company. Qwikcilver raised around $10 million from Accel, Helion Venture Partners and Sistema Asia Fund in 2016. This followed an undisclosed amount from Helion and Accel in 2008 and $10 million from Amazon in 2014, making Qwikcilver the first Indian company the ecommerce giant invested in.
In 2016, Qwikcilver handled gift-card transactions worth Rs 3,000 crore through 160 million transactions
(This story appears in the 31 March, 2017 issue of Forbes India. To visit our Archives, click here.)