Karobar App

In emerging nations, lots of transactions happen in credits & customer ledger is maintained in a physical ledger book and it is very time-consuming to find customer records. And it is also difficult to recover those credits in time. Lots of micro & small businesses in emerging nations don’t keep proper records of their business transactions which deprives them of access to business performance reports to make informed business decisions. The result is a potential loss of money due to errors & inaccuracies and decreased efficiency. Existing solutions include desktop software, but for small shops, it is very expensive to get a pc and install desktop software on it which also has a steep learning curve. Plus in emerging nations, there are digital solutions for big businesses but for micro & small businesses, there aren’t many. Often times, they need certain loans to grow their business like restocking goods during festivals and special events for sale, but banks don’t usually give micro loans to them since they don’t know whether they will be able to repay the loans or not. It's because they don’t have enough business data about them and there is no way to prove/show sustainable revenue. And they are forced to take loans from their friends & family at higher interest rates and that process itself is difficult too. Due to all these reasons, they aren’t able to go digital and we are solving these problems with an easy-to-use mobile app that lets them not only manage but grow their business with the Karobar app.

We have built a mobile-based solution called Karobar app for MSMEs from where they can manage their business accounting & inventory easily. Shopkeepers can manage their customer balance, send sms reminders to pay credits on time, record sales & purchases, send invoices, track their expenses, and even manage their inventory from the app easily. The app provides a very localized experience for users and an easy-to-use interface for them from which they can keep their business transaction records in their own language and calendar. The app also provides various business performance reports to them which they can use to make informed business decisions. Karobar App also has business growing tools - shopkeepers can send customized greeting cards to their customers on various occasions like festivals which can improve their customer relations. Users can create notes & reminders for various purposes, send payment transaction links to customers from where they can pay the dues directly from the hyperlink provided, and the pending due will be settled automatically. This in turn will help business owners collect money from customers easier. 

We are also working on generating a credit score for the businesses from their business transaction records from where they can be eligible to receive micro loans from the app itself. Since the shopkeepers keep records of their transactions in the app, we know their entire performance report, like their total sales, purchases, receivables, payables, profit, and loss and based on those data, we could actually provide micro-loans to them which can help them grow their business. This feature is in the development phase and we are working on it to make it possible.

Karobar app is for small businesses. There are currently 130M+ MSMEs in the emerging nations combined. We plan to provide digital solutions to them by helping them not only manage but grow their business through technology. Here are some of the impacts of the app:

Improved efficiency: Karobar App has helped small business owners to streamline their accounting processes, which has resulted in improved efficiency and productivity. Business owners can quickly enter and track their financial transactions, reducing the time spent on manual accounting.

Financial inclusion: Karobar App has helped to include many small businesses in the formal financial system that were previously excluded due to a lack of access to financial services. The app has enabled small business owners to maintain a digital record of their transactions, which is important for accessing loans and other financial services.

Cost savings & Transparency: The app has helped small business owners to save on costs associated with traditional accounting practices, such as buying physical ledger books, hiring accountants, and the risk of errors or fraud increasing the transparency of the business.

Enhanced data analysis: Karobar App provides SMEs with valuable data that can be used to analyze business performance, identify areas for improvement, and make data-driven decisions. 

Collecting Dues: One of the most significant challenges that small businesses face is getting paid on time, which can impact their ability to grow and succeed. To address this issue, Karobar App offers a range of features that can help businesses get paid faster and more easily. For example, businesses can send one-click sms reminders to customers and also online transaction payment link options to the customers. In addition, Karobar App provides regular reminders and notifications to customers who have outstanding payments, helping businesses to ensure that they get paid on time. 

Improved Customer Relations: Karobar App provides features like greeting cards for occasions that might add value to the business, in this case by strengthening the customer relationship.

By providing these tools and features, Karobar App is empowering small businesses to manage their finances more effectively and grow their businesses with confidence. 

We have been running & growing the Karobar app for almost two years. I started the Karobar app first to solve a personal problem at first. My parents used to run a small general shop and I used to assist them with it too. One day a customer came in to repay his credits and my father took out 2 physical ledger books and started searching the customer's name in the records. 7-8 minutes passed, still couldn’t find his name as the business records were poorly organized and the customer was in a hurry so he left telling that he would come some other day. That day, we couldn’t recover credits in time and that meant a loss for our business so I thought about it and felt it was a real problem that could be tackled. Thus, I have been working on creating digital solutions for small businesses for 2 years. Initially, I wanted to test user response and I built a simple app that shopkeepers add customers and due records and launched it in the Play Store. I then started getting more responses, feedback & suggestions from the users so I continued developing it even further. Eventually added more team members to help me build & grow the app. My team includes 2 expert mobile developers, 1 from QA, digital marketing & backend development. We all have quite a lot of experience in our field. We are very committed to the vision of becoming a leading business solution for MSMEs and are continuously learning & implementing new things. We also now have prolific business mentors who are continuously guiding us in the process. Mr. Shankar Uprety, founder of the Hamro Patro app, Nepal’s most used app is also one of them. Mr. Dileep Agrawal, founder of Nepal’s Largest ISP, Worldlink, and Mr. Nirdesh Dwa, co-founder of the Veda app are guiding us as well. Nepal’s most used school management software has invested in us and is continuously guiding & providing resources, networks & mentorship for growing the app. We are continuously growing & adapting to user feedback and are determined to make it happen. Building something used by & impacts millions of people is what drives us. All of us are working tirelessly towards our vision and we will figure out things along the way, learn, implement & will definitely make something great out of it.

Right now the app is only available for Nepali MSMEs. The app has more than 80k downloads and 77k+ registered businesses in it. 45k+ users are monthly active users. We gained most of the users through word of mouth. And we have been iterating and improving the app from user feedback for about 2 years and now we are also launching it in Bangladesh in a few months. We will be iterating the app from the market response we get from Bangladesh and continuously improving the app and launching it in other emerging nations too.

I got to know about MIT Solve challenges from social media. I looked into the details on the website and was genuinely amazed that such a platform exists. I found the financial inclusion challenge which matches what I am pursuing right now, I want to help MSMEs like my parents manage their business better. And I have yet lots of things that still need to be figured out that’s why I applied to this challenge for mentorship & networking opportunities, exposure, and potential funding which I can use in growing my startup. Plus in the solve challenge, if participants could attend related workshops and webinars which can provide valuable insights into the financial inclusion landscape, that would be great. Thank you for the platform!

I focused on the localization aspect of the market primarily to stand out from other competitors. Many similar apps were available in the English language only but there can be different calendar systems besides A.D. in emerging nations and people would prefer to use the app in their native language too and that's what I did in the Nepali market too. Nepali people use the B.S. calendar system instead of A.D. which is a completely different one so we included it in the app as it is very difficult to keep a record of transactions in the A.D. calendar plus native Nepali language in the interface was also added and this has been one of our USP and we managed to onboard 80k+ users in the app. Going further we will also keep the localization aspect in mind for other markets and customize it accordingly. Another thing that sets us apart from the normal accounting software is that our app doesn't only let shopkeepers manage their businesses but also helps them grow by various tools inside the app like sending greeting cards to customers on the occasion of festivals which improves customer relationships, sending business cards, sharing payment transactions link & reminders option. Also, we are also building credit scores for small businesses based on their inventory and transaction data. With this information, the app can provide micro-loans to help them grow and remain competitive in the market.

Next Year:

1. Increase the number of users of the Karobar App by 50% compared to the current year.
2. Expand the reach of the app to Bangladesh.
3. Improve the user experience by introducing new features and enhancements.
4. Introduce credit scores for micro-loans to the
5. Generate revenue by introducing premium features and subscription plans.

Next Five Years:

1. Become the market leader in digital accounting and inventory management for micro & small businesses in Nepal and other countries.
2. Create a location-based online store for MSMEs and enable small businesses to go online & sell their products.
3. Work in the supply chain part with the retailers and supply goods to them also.
4. Offer training and support to help small and medium businesses improve their financial literacy and management skills.
5. Increase revenue by expanding the range of services offered and expanding into new markets.

To achieve these goals, we plan to take the following steps:

1. Invest in marketing and advertising to increase awareness and attract new users.
2. Conduct regular surveys and feedback sessions to understand user needs and preferences and use that feedback to improve the app.
3. Continuously develop and release new features to keep users engaged and improve user experience.
4. Invest in training and development programs for team members to enhance their skills and expertise.
5. Establish partnerships with banks and other financial institutions to provide additional financial services to users.
6. Focus on building and maintaining strong relationships with users by providing dedicated customer support and good user experience.

To increase the usage of the app, we measure our progress by tracking total downloads, registered businesses & monthly active users. Active users are those who open the app frequently and record their business transactions. 

To measure our revenue after we introduce the premium subscription, we plan to track it with the number of premium users, revenue growth & cash flow.

To measure the app performance, we track our play Store & app store ratings & reviews. We also conduct customer surveys regularly to find out what our users are feeling and how can we improve the app experience even better.

Following is my theory of change for my product Karobar app:

Problem: 

Micro & Small sized business owners struggle to manage their finances and inventory efficiently, leading to potential errors and inaccuracies in financial records and difficulty in recovering credits from customers.

Solution: 

Karobar App provides a free, easy-to-use, and accessible digital accounting and inventory management solution that helps business owners manage their finances and inventory conveniently and accurately.

Inputs:

• The team develops & maintains the app
• Financial resources to cover the costs of operation
• Access to mobile devices by business owners
• Feedback and suggestions from users to improve the app's features and functionality

Activities:

• Developing and updating the app's features and functionality based on user feedback and suggestions
• Promoting the app through various channels to reach potential users
• Providing customer support to users to ensure they can use app

Outputs:

• Increased adoption of the Karobar App by MSMEs
• Improved financial record-keeping and inventory management by businesses using the app
• Time savings for business owners who use the app to manage their finances and inventory
• More accurate financial records for businesses, reducing the likelihood of errors and inaccuracies
• Valuable insights into business performance through the app's reporting features

Outcomes:

• Increased efficiency in financial management and inventory management for businesses, leading to improved productivity and profitability
• Faster credits collection with reminder features.
• Greater transparency and accountability in business operations, leading to increased trust and confidence from customers and stakeholders
• Improved economic development and prosperity for MSMEs through the adoption of digital accounting.

Our app is based on the following programming technologies:

Mobile App: Flutter

Backend: Django, Firebase

Frontend: Vue Js

Offline Database: SQLite

In our company, we understand the importance of diversity, equity, and inclusivity in the workplace, and we incorporate these values into all aspects of our work because creating a diverse and inclusive team is essential to creating a product that meets the needs of our diverse user base. For this, we have team members from different backgrounds & cultures which provide us with a range of perspectives & experiences.

Also, our work environment is inclusive where everyone feels valued and respected, and provide our team members fair compensation, benefits, and opportunities for growth and advancement, regardless of their race, gender, or other personal characteristics.

Moreover, we are committed to creating a product that is accessible to all users. We design our app with accessibility in mind, ensuring that it is usable for people with disabilities or those who may have language or cultural barriers. We also seek feedback from our users and make necessary changes to improve their experience.

Problem Statement: 

Traditional paper ledger book is time-consuming for small businesses.

Mission:

To become the leading business solution for MSMEs

Competitive Landscape:

Vyapar, Khatabook, Khatapana, myBillBook

Key Partners:

Employees (Designers & Developers),  Investors, Media, Legal & Accounting Consultants

Key Activities:

App design & development, Social Media Management, Digital Marketing, Customer Support, Research & Development

Key Resources:

Mobile App, Website, Appstore Account, Mobile Phones & Laptops, Trademark

Value Proposition:

Localized App, Convenience & Faster Business Management, In House Development Team, Optimized UI/UX

Customer Relationships:

Social Media Chat Support, Call Support, Creating user-focused content

Channels:

Social Media, YouTube, Media Coverage, Online marketing

Customer Segments:

Young & Middle Age Shopkeepers,  Small Retailers, Frequent credit businesses

Cost Structure:

Salary, Marketing, Server & Hosting, Office Expenses, R & D

Revenue Streams:

Premium Subscription Model, Advertisement Model, Micro Loans, Online Store

Impact:

Digitalization of MSMEs of the country, 20+ Jobs Creation, Reduing need of paper ledger book

We were first concerned about growing the userbase and weren't thinking about revenue generation to fund our work & operation, we raised funds from angel investors, now however we are also introducing the premium subscription model of the app where users can pay $2 per month to use extra features in the app like multi-user, image upload, app lock, web version, etc. We expect this model to sustain us for our normal day-to-day operation of the office. And regarding our coming plan of facilitating microloans by building credit scores for MSMEs, a lot of resources will be needed so we will need additional funding and partnership with banks. So we will be raising investment capital for it. In the long term, we expect our premium subscription model, micro-loans facilities, online store & business insights from the data will provide sustainable revenue streams.

We raised $12,000 for seed funding from Mr. Dileep Agrawal (Founder of WorldLink, Nepal's Largest ISP) one year ago. The capital was used for product development. And recently We also received a commitment of $70,000 investment from Mr. Nirdesh Dwa (Co-founder of Veda App) and he funds $3,000 every month until the investment cap is met. 

Now we are introducing the premium subscription model in the app and core features of the app will always be free, additional features will be made premium and if we can convert even 4,000 users to use the yearly subscription, we can expect to generate revenue of $48,000 in the first year. However this figure will very after we introduce the premium subscription model and from the users response.