Vivek Agarwal

Who would invest in founders who have wasted $50M? Koo, an Indian microblogging platform, recently shut shop after raising $50M in capital. Everyone has their views on why Koo failed. IMO, the biggest reason behind its failure was a lack of PMF (Product Market Fit). Koo spent much money on marketing and didn’t build a product people wanted. It kept harping on nationalism, a Twitter for Indians, made in #India. This approach failed. However, this doesn’t mean Koo’s founders aren’t smart or intelligent. I wrote in an earlier post that we shouldn’t be surprised if Koo’s founders raise fresh capital for a new startup. To many of us, this might seem grossly unfair. Millions of smart, hardworking founders are struggling to raise capital while investors are backing failed founders who have wasted millions of dollars. How is that fair? It confirms the widely held belief that the #venturecapital industry is broken and corrupt where a few people with the right connections get all the capital while others don’t see a dime. It shows that the VC industry is a closed group, a cabal where who you know matters more than anything. While these are just complaints, most people who criticise VCs don’t understand how startup investing works. VCs welcome failures. They embrace them because they know failures are inevitable. When VCs invest in 20 #startups, they know 15 will fail. The goal is to invest in startups that can give them a 100x return. Failures are part of the game. They are unavoidable. The aim is to back founders who can build such 100x return companies. Hence, failures are not looked down upon in the VC industry. It’s similar to the American culture where society appreciates the people who take risks, and it easily accepts personal bankruptcies that result from this risk-taking approach. There’s no taboo in failing in the USA and the VC industry. I’m sure Koo’s founders have learnt from their mistakes. It’s an expensive mistake and not everyone is so lucky to have this luxury to spend $50M on their education. ;) However, most VCs will back Koo’s #founders because these founders know how to raise capital and they know how to not build and scale tech companies. Their past failures have improved their chances of future success. In the VC industry, Failure is Good.

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🤔 A BFCM Reality Check: Why We Pivoted With BFCM in full swing, here's a story that feels relevant: Like many founders, we started with big dreams - building yet another Shopify alternative for India. The opportunity seemed clear as day. Then we launched a simple Shopify app as a side experiment. What happened next changed everything. Here's what hit us: Merchants weren't looking to abandon Shopify. They just wanted better tools to run their stores. So we adapted. Instead of competing with Shopify, we're now building apps that make merchants' lives easier - from India to the world. Sometimes the smartest move isn't starting from scratch - it's making existing things work better. #BFCM2024 #ShopifyPartners #StartupLife P.S. Good luck to everyone hustling through BFCM! 💪

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Indian venture market has exploded. Someone reported that there are 800+ funds/networks/syndicates/ accelerators active in Indian venture market now. Not sure, if that number is correct but if you are an early stage tech founder on your fundraise journey, chances are, you would meet hundreds of people. While majority of the fund houses are doing incredible work and shaping the ecosystem. There are certain kinds of investors you need to identify & avoid to save time and stay focused: Sharing from my personal experience, top 5 such cohorts to avoid and the takeaways for the founders: 1. Data collectors: At early stage, you don't have historical data to present. Your projections are just that, Projections. I wasted one whole week discussing with a prospective angel investor on why the CLTV to CAC ratio is x, and not y. Takeaway: Discuss high level strategic numbers only without going into the details. None of the projections would be accurate anyway when rubber hits the road. 2. Document collectors: Met few folks, who would watch from the fences and ask for n number of documents, data rooms, statements without sharing the purpose of the ask or even revealing their investment intent. Takeaway: It is supposed to be a bi-directional conversation. Say 'no' often, till the time, an official relationship is established. 3. Valuer (! investor): At early stage, valuation is a function of multiple parameters, the opportunity itself, the team, or anything else except steady cash flows, because you don't have much. I wasted another week with a prospective investor trying to justify valuation, had to shut down that conversation, after both of us started quoting Aswath Damodaran and his valuation principles. Takeaway: Too much content on the internet for both parties anyway. Shouldn't be a bone of contention at early stages. 4. Facilitators posing as investors: Met numerous people, who would go to any lengths to pose themselves as serious investors, even buying paid media articles. Only to reveal at the last: The success fee. Takeaway: Avoid facilitators until Series A 5. Brokers posing as market makers: People posing as market makers sharing tons of gyaan on LinkedIn but are actually deal brokers looking to make quick %. Personal experience: Two rounds of conversation happened and then out of blue, they added a third party in the mail trail, someone who facilitates mergers & acquisitions. There wasn't even a single instance in the past conversations where we indicated any such intent. Takeaway: Avoid name & shame in public but at least share within founder communities. #venture #fundraise #startups #investing

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Only D2C teams know how BIG a news it is that Shopify's Advanced Cash on Delivery (COD) app shut down 3 days ago With multiple brands reaching out to us for help I was contemplating how this poorly rated app has been the backbone of building the D2C ecosystem in India The Shopify India team got it built through a dev agency back in the day, because literally no other country had these problems Brands have a deep love / hate relationship with COD Why Love? - Even after a small brand gets someone interested in their products & story It is still tough for the buyer to trust the brand enough to Pre-pay online COD gives them enough comfort to give the "new kid on the block" a chance In numbers, ~60-70% of D2C orders are still COD despite high UPI penetration. Brands see non-trivial increase in conversions when they give cash on delivery Why hate? ~10-30% of COD orders are never delivered for variety of reasons - fraud, bad addresses, change in mind etc That is very expensive for a small business -- ZERO revenue from the returned order, but o Cost of sending the package back and forth o Blocked inventory o Damages to the product This app attempted to solve this by providing control on who gets to see COD based on products, order sizes, pin-codes This problems with offering COD were however much deeper, as we realized over time shopflo merchants helped us create Advanced++ COD functionality, right within our product. As brands try to keep COD problems in check, we're doing our bit by creating "Priority onboarding for those using Advanced COD" DM me if you'd like to speak to us or visit www.shopflo.com End of an era, indeed

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The e-commerce startup Meesho has raised $275 million in a new funding round, pushing its valuation to approximately $3.9 billion. This funding, part of a larger round expected to exceed $500 million, includes secondary transactions. Notable investors like WestBridge Capital and Norwest Venture Partners are participating in this round, joining Meesho's impressive list of backers, including Meta, Fidelity, Peak XV, Prosus Ventures, B Capital, and SoftBank. However, Meesho faces increasing competition, with Amazon India recently launching Bazaar, a special store featuring affordable fashion and lifestyle products. Despite this, Meesho's focus on an asset-light model and lower fulfillment charges has helped it capture nearly half of India’s annual 3PL e-logistics shipment. For the latest secondary coverage and trading SaxonWeber | ShareWell #secondaries #saxonweber

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Challenging the Traditional "Right to Win" Narrative in Startups 🤔 The startup world often talks about a founding team's "right to win" - typically measured by domain expertise in the industry. But I wonder if this is a narrow view. Consider these examples: 🏨 Ritesh Agarwal built OYO without any hospitality experience - just a deep understanding of budget travelers' pain points as one himself 💄 Falguni Nayar created Nykaa at 50 with no direct experience in beauty/retail - but she understood the Indian woman consumer deeply 🍲 Deepinder Goyal Kalra built Zomato after noticing long lines for food services while working at Bain. The "right to win" can come from multiple sources: - Deep personal experience as a consumer - Pure passion to solve a problem - Obsession with product excellence - Fresh perspectives unburdened by industry assumptions This hits close to home for me. As I build Elfina Health, I often get asked on my "right to win". But my personal mental health journey has given me something equally valuable - authentic user perspective and an unwavering commitment to solving this problem. Sometimes, being too entrenched in an industry can blind you to innovation. The most disruptive ideas often come from outsiders who see problems with fresh eyes and aren't constrained by "how things have always been done." Yes, there are domains like deep tech where technical expertise is crucial. But for many problems, especially in B2C, understanding your users' pain points intimately and being relentlessly focused on solving them can be your strongest "right to win." What's your take on this? Does every founder need domain expertise to win? #Startups #Entrepreneurship #RightToWin #Innovation #StartupIndia

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Of the 11 platforms evaluated, only Bigbasket and Urban Company earned the first Fair Pay point for ensuring timely, full payments and having a public wage policy guaranteeing workers at least the local minimum wage after work-related costs. However, no platform met the criteria for the second point, which requires workers to earn the local living wage after costs.

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Sukoshi Mart came to us with a big frustration : “Their app experience was sub-par and lacked personality” Their customers loved their brand for its vibrant personality, curated products, and seamless shopping experience. But their app couldn’t fully capture that magic. They wanted more: - An app that felt personal and uniquely theirs. - More customer data to be drive better quantitative decision making - Analyze and segment customer behavior to send personalized notifications But here’s the catch: their previous app could hardly be around it. The existing app did not provide the necessary features for their omnichannel efforts. That’s when Sukoshi Mart found Appbrew. Together, we turned their vision into reality: ✅ Branded to perfection—an app that reflects their identity at every touchpoint. ✅ Built for performance—seamless navigation and features their customers love. ✅ Engagement that matters—with tools like personalized notifications and loyalty integration to keep customers coming back. Now, their app isn’t just another sales channel—it’s the core of how they connect with their audience. It’s where their community feels seen, valued, and inspired to shop again and again. Results with Appbrew? - 30% increase in conversion rate as compared to previous app builder - 45% more login data - 15% increase in AoV If you’re stuck wondering how to build an app that doesn’t feel “off the rack,” Sukoshi Mart’s story might just be the inspiration you need. Coey C. Sean Z. Linda Dang Link to case study - https://lnkd.in/gztWcxCK #ShopifyPlus #MobileApps

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Buying gold / silver coins on the auspicious occasion of Akshaya Trithiya come under low frequency - low complexity purchase category. It is a seasonal product bought generally during specific occasions. Zepto Blinkit Swiggy lapped up this opportunity and started selling this with the benefit of quick delivery. No wonder the sales picked up quite well. I wonder how much would it have impacted the sales of larger eComm players. Sales trends from swiggy is already out. I am sure the trend will be similar for Zepto - Aadit Palicha and Blinkit - Albinder Dhindsa I detailed out this approach and more in my notes - https://lnkd.in/gBmvVKy2

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Sometimes, serendipity plays a crucial role in shaping what problems we pick to solve, especially at pre PMF startups. A few months ago, a friend building an RMG from India shared two challenges. One of them was in performance marketing that he was uploading a lot of creatives and wanted suggestions for new ones based on previous learnings. At the time, we were focused on something else and didn’t have time to dive in. Later, the idea we were pursuing didn’t work out, but another agency mentioned the same challenge. So, we decided to take a day to figure out a solution. I manually gathered data from videos, putting it into an Excel sheet to run a correlation analysis. At first, I didn’t realize Google AI Studio could read videos, so I used OpenAI to analyze the video frame by frame, and it worked surprisingly well. Through some YouTube tutorials, I discovered AI Studio could do it even better and with an API. That made everything fall into place smoothly. In the video below, you’ll see this analysis for Subway Arabia. We did this as a way to showcase our work via a friend who works at Subway MENA (Middle East and North Africa), hoping to present it to them. This wasn’t an official collaboration, but the data was publicly available, so we scraped and used it. If you’re interested in the data insights or prompts, feel free to comment with “data,” and I’ll gladly share them with you on DM.

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my thoughts on this: i think lightspeed's report was dumb because while the facts and numbers they pulled were true and great to know, their conclusion slide (slide 2 or 3) showed that ultimately they don't actually believe in the region's potential. it concluded "SEA companies should be regional since day 1" instead of "global since day 1". they simply overfit to the past decade's data, and have a subconscious inferiority complex that prevents them from believing any SEA founder/company can do better than the past decade's SEA unicorns and become a *globally* important startup with great unit economics. they forgot that VC is about what is possible first and foremost, then what is probable. that's how you benefit from the power law. lightspeed report is all about probability. so disheartening to see it, and more disheartening to see gojek cofounder signing off on it. the bitter truth: the SEA tech startups that are unicorns mostly rushed to copy US or Chinese unicorns within months of the US/Chinese companies' breakout days, without doing the first principle thinking on "does this create $X in value in SEA and can we capture Y% of X and do X and Y, 2 independent variables, look attractive?" in other words, first gen SEA tech unicorn are built by founders who are great doers but not great thinkers. Travis Kalanick of Uber is a great think and a great doer. pardon me but the founders of Grab/Gojek were just doers. im sure they are capable thinkers, but they haven't applied it yet to creating anything massively valuable and original from the ground up. sad but true. the Lightspeed report looks at this truth and concludes SEA will fail to ever have thinker/doers, because it failed to have billion dollar thinker/doers in the past decade. i think this will further push away the talent that is indeed billion dollar thinker/doer but just needs an environment that doesn't doubt it every day. for the record, i absolutely believe it's possible to build a global tech giant from SEA today. it does not defy the laws of physics. to say this is impossible is to say nobody here will ever be great enough. the truth is, people who think that are the ones who are not great enough.

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Zepto: Simplifying Deliveries or Making Them Complex? In India's fast-paced world of online shopping, Zepto stands out for its super-fast deliveries. But who's really in charge of this popular app? Finding this out isn't as fast as their deliveries! While you might think Zepto is run by its young founders, Aadit Palicha and Kaivalya Vohra, it's actually managed by companies you've probably never heard of – Geddit Convenience, Drogheria Sellers, and Commodum Groceries. The Franchise Model: The way Zepto operates is kind of like a franchise. Kiranakart Technologies, led by Palicha and Vohra, pretends to be a wholesale company and tech provider. While Geddit and the others take care of the public-facing stuff. It looks like a B2B model (business-to-business), but it's more like a B2B2C (business-to-business-to-consumer) setup. Geddit Convenience, Drogheria Sellers, and Commodum Groceries are making a lot of money, but it's not entirely clear how. And Zepto wants to bring even more companies on board soon. But there's a twist – some employees seem to work for both Zepto and these other companies. That raises some eyebrows, even though Zepto denies any funny business. Revenue Generation: Unlike conventional e-commerce platforms that generate revenue by taking a percentage cut from sellers, Zepto's revenue model revolves around product sales and technology licensing. This departure from the norm raises eyebrows and complicates matters further. Moreover, the lack of transparency regarding the revenue sources of entities like Geddit Convenience, Drogheria Sellers, and Commodum Groceries adds to the ambiguity surrounding Zepto's financial operations. Legal Ambiguity: The unconventional structure of Zepto raises legitimate concerns about its compliance with regulatory frameworks, particularly regarding foreign investment regulations. Even if Zepto transitions into an Indian company, questions linger about its adherence to legal standards and consumer protection laws. The opaque nature of its operations further complicates matters, making it challenging to ascertain the company's legal standing definitively. Fairness and Competition: As Zepto continues to expand its reach and influence in the Indian market, concerns about fairness and competition intensify. Traditional retailers, already grappling with the advent of quick delivery services, find themselves under increased pressure from Zepto's rapid growth. Questions about fair competition and compliance with regulatory standards loom large, prompting calls for greater scrutiny and transparency in Zepto's operations to ensure a level playing field for all stakeholders. Time to Simplify Deliveries Research by Ramya Naidu Source: The Economic Times

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Very excited to announce the public release of Sahi app for trading stocks, futures and options, right from your mobile. While a lot has been said about the individual traders losing money in the market, I believe that many of these traders are serious about using the markets to attain financial independence. 17 years ago when I started trading, I had a similar aspiration. To build a parallel income stream from active investing / trading, so that I didn't have to depend upon a job for financial security. Over the years, trading has become a passion for me. Over the last 17 years, trading stuck as a constant for me, even while I was navigating changes in my professional and personal life. Today, as we see the same passion and aspiration in so many individuals, we feel driven by a mission to empower these individuals with the knowledge, insights and tools to help them succeed. Whether you are a full-time trader, or someone who is actively investing while having a full time job, Sahi is being built for you. We want you to have every possible advantage to level the playing field and help you invest better, trade better. With the Sahi.com mobile app, we have started this journey by building a powerful and fast mobile platform, packed with features for stocks and options trading. We have invented the Sahi Terminal, an unique split screen product for Intraday option trading. We have built our own native mobile Sahi Charts and Order Execution platform to give you Trade from Charts features that will simplify your trade execution and position management. And with our AI led, market analysis feature, you can quickly understand market direction without getting lost in jargon and data. And lots more features for you to discover ☺️ We have a long way to go and a lot to build, but we are very excited to have you try the app and share your feedback. Download the Sahi app, and upgrade your mobile trading experience Zero Account opening fee/ Zero maintenance charges / Zero brokerage (for Dec 2024)

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Recently, Splitwise Inc. has been compared to Netflix🎬! Not for its valuation or user base, but for charging the same subscription fee as Netflix (₹149/month). 💸 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. 💬 Follow me for more such Product Analysis.

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From Swiggy to Zomato: VC Exits Hit $4.06 Billion—Is This Sustainable? Now we understand why everyone’s rushing to list their startups—because VCs are eyeing hefty exits. In 2024, VCs scored a massive $4.06 billion in exits, primarily from the IPO market. Key Exits in 2024 • Swiggy: $750M from IPO • FirstCry.com (BrainBees Solutions Ltd.):$227M • Zomato: $909M • Policybazaar.com (PB Fintech): $291M Year-wise VC Exits - 2020: 7 deals, $113M - 2021: 18 deals, $3.3B - 2022: 13 deals, $1.5B - 2023: 32 deals, $2.06B - 2024: 44 deals, $4.06B VCs are the real 'sharks', making massive profits by offloading shares to the public through IPOs. But who’s really winning in startup exits? The founder? The VC? The retail investors? Looking at the current wave, it’s clear—VCs are the real winners. But here's the flip side: while VCs are cashing in on their early exits, it’s also important to remember the crucial role they’ve played in scaling and funding these companies. Without their backing, these companies might never have seen the light of an IPO. Retail investors, though they may not always see quick wins, help fuel market liquidity and contribute to the longer-term growth of these businesses. They sustain these ventures even beyond the exit event. So, are VCs merely playing a funding game, or are they shaping the long-term future of startups? (follow - Aradhya Varyani) P.S. VC firms know the game—get in early, exit through IPO, and enjoy the rewards. But are they true architects of success, or just out for the payout? #VentureCapital #Investments #Startups #MarketTrends #IPO #VCExits Elevation Capital | Goldman Sachs | Norwest Venture Partners | Accel | DST Global | Alpha Wave Global | Hillhouse Capital Group | Tencent | Harmony Partners | Barons Capital Partners | Naspers Ventures BV | Alibaba Group | Temasek | TPG | SoftBank Investment Advisers

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Thanks Bismah and Inc42 Media for the insightful coverage and deep dive into the vital role of operator VCs! Bismah's thoughtful analysis underscores the growing need for operator VCs in today's startup landscape. As an operator VC , I've witnessed firsthand how founders increasingly value more than just capital. They seek partners who bring operational expertise, strategic guidance, and an extensive network to the table. These elements are crucial for driving sustainable growth and navigating the complexities of scaling a business. At GrowthCap Ventures , we understand the unique challenges faced by early-stage startups, which is why we prioritize offering not just funding, but also hands-on support and access to our extensive network. Together, we're empowering founders to realize their vision and build transformative businesses. #OperatorVC #StartupEcosystem #Gratitude

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Big Shift in Swiggy’s Strategy: From Super App to Super Brand Yesterday, Swiggy’s share price jumped 6%, reflecting a significant pivot in its strategy—from a Super App model to a Super Brand approach. This week, Swiggy launched 3 standalone apps: • SNACC: Focused on 15-minute food delivery. • Pyng: For professional and home services. • Instamart: (Still a work in progress). Will this be game changer? 1️⃣ Strategic Parity with Zomato: Until now, Swiggy followed a Super App model, housing Instamart, Genie, DineOut, and other services under one roof. Zomato, on the other hand, pursued a Super Brand strategy, with separate apps for Zomato, Blinkit, and other verticals. With this move, Swiggy and Zomato are now aligned in their approach, leveling the playing field. 2️⃣ Quick Commerce’s New Frontier: Zomato’s Blinkit launched Bistro, a standalone app for 10-minute food delivery, back in Dec ’24. Zepto has been running Cafe as a separate app since April 2022. Now, Swiggy has joined the race with SNACC. All three quick commerce giants are doubling down on the 10-minute food delivery segment, each with a dedicated app, team, and P&L to drive this opportunity. What Stays from Swiggy’s Super App Strategy: Despite the shift, Swiggy is retaining some Super App elements: (a) Instamart will remain accessible within the main Swiggy app, even after its standalone launch. (b) Initiatives like Bolt and Cafe continue to operate within the Swiggy app, instead of merging with SNACC. ➡️ The quick commerce space is turning into a battleground of strategic innovation. The moves we’re seeing are nothing short of 4D chess, with something new happening every day. Why Swiggy made this move?

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OYO Rooms has raised Rs 550 crore! "This comes after two failed IPO attempts in 2024." OYO Rooms has raised Rs 550 crore (around $65 million) in funding from Redsprig Innovation Partners, a group led by its founder Ritesh Agarwal. This new investment will help OYO expand its operations and grow internationally. The company’s valuation has now risen to $3.79 billion, up 59.2% from its previous valuation of $2.38 billion. OYO will issue over 12.9 crore new shares at Rs 42.6 each to raise this capital, which will dilute the company’s total stake by 1.728%. This funding comes after Agarwal’s earlier $175 million investment in August 2024 through his Singapore-based fund, Patient Capital. While OYO’s revenue slightly dropped from Rs 5,464 crore in FY23 to Rs 5,389 crore in FY24, it reduced its expenses by 16%, leading to a net profit of Rs 230 crore. Recently, Nuvama Wealth & Investment bought shares worth Rs 100 crore in OYO’s parent company, Oravel Stays Limited. Earlier this year, OYO withdrew its IPO papers for the second time due to tough market conditions but plans to refile them after this funding round. OYO’s constant push for more funding raises a big question—are they really growing, or are they just trying to keep up appearances with a higher valuation? Their revenue has barely grown, yet they're securing millions, which doesn’t seem like a good sign for their long-term stability. Instead of focusing on improving their business model, they seem more focused on inflating their worth. With two failed IPO attempts and these massive funding rounds, it feels like they’re more about securing money than truly succeeding in the market.

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🚀 A/B Testing Gone Wrong: Key Learnings from Our Recent Experiment with Paisa App 🎮 We recently ran an A/B test for our Paisa app's Google Play Store listing, specifically focusing on screenshot variants. The results? The B variant was the clear winner, driving significantly more downloads. 🎉 But here's the twist—despite the increase in conversions, we saw a decrease in revenue. 😱 What happened? The new variant attracted users who weren't the right fit for our app. These users struggled to complete key gaming tasks, leading to lower engagement and, ultimately, a drop in revenue. Key Takeaways: It's not just about conversions: A higher download rate doesn’t always translate to success. It's crucial to attract the right users who will engage deeply with your app. Measure the right metrics: Beyond just downloads, look at retention rates, user engagement, and revenue metrics like ARPU and LTV to get the full picture. Align visuals with your core experience: Your screenshots and other visual elements should accurately represent the core experience of your app to attract the right audience. This experience reminded us that A/B testing is not just about finding a winner; it’s about ensuring that winner drives meaningful business outcomes. 💡 Always analyze the broader impact of your tests, and don’t hesitate to pivot if the results aren't aligned with your overall goals. #ABTesting #AppGrowth #MobileMarketing #UserEngagement #PaisaApp #StartupLessons #GrowthStrategy

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