Digital gift card firm GyFTR expects to close the current financial year with twofold jump in its revenue at Rs 1,200 crore on account of companies attempting to retain customers through the loyalty or reward point ecosystem, a senior official of the company said.
The firm sees a change in mindset of consumers to present gift cards and vouchers during special occasions instead of cash as another factor that is adding to its growth.
"The company earned Rs 625 crore financial year ended March 2019. In the current financial year, we are targeting Rs 1,200 crore and we are more than sure that we will achieve that number," Gyftr co-founder and CEO Arvind Prabhakar told PTI.
He said that besides giving upfront discount, brands have started offering gift cards or electronic vouchers to connect with customers after they leave the point of sale and persuade them to visit their outlet again.
"Just two banking networks currently have about 2,000 crore points that are generated in an annual base. Even 10 per cent of the 2,000 crore is 200 crore and this is a substantially large amount for a company. This is a reason why it is figured as a parallel currency," Prabhakar said.
According to GyFTR, e-voucher or gift card market in India still stands at 10 per cent of its potential compared to adoption in global markets that offers the company further growth opportunity.
"It's only larger companies that currently have adopted these technologies. Today, you will have gift vouchers of larger companies of Shoppers Stop, Bata, Croma, etc, but probably not have it for some small sweet shop. The penetration of a gift voucher across the brand that doesn't have this technology, that market is also 60 per cent," Prabhakar said.
Founded in 2012, the company claims to have reached break even in 2014 and is now looking to acquire companies in the artificial intelligence segment.
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