Pivoting away from Cube brought us to the right route: PayU's Jitendra Gupta

Around March-April 2015, we (then Citrus Pay) were focused on our consumer app for personal payments called Cube and had invested about $3 million into it.
We had just finished our fundraise around the time and we were beginning to see the first signs of the funding winter set in. We realised it was time to take the tough call on what makes sense for the long-term versus what is finding favour in the market in the short term.
Investors were questioning us over the scalability of Cube and whether it was unique enough? While we had raised money on the back of the Citrus payments business, there were concerns amongst investors over Cube as a new business line and an investment into it.
So we decided to take a hard look at our businesses internally. The payments business was for sure, the backbone, but we realised Cube was not going to fetch us significant returns in the long term. So we shelved this in favour of a credit-focused business line that we began around the same time which was LazyPay.
In October 2015, after about 10 months of seeing the market, funding environment and the forecast for how our products could scale in the next 2-3 years, we took the tough call to discard Cube despite the investment made into it.
In hindsight, it was the best decision for the company because Cube was primarily nothing but a recharge and bill payment app and that would not have fetched us anything significant because so many companies are operating in that space and now only Paytm and a few others remain, with the rest having folded up due to lack of further investments and scale.
Around the same time, the launch of LazyPay, led us to truly shift to a fintech company beyond just a payments firm. This whole space opened up the next lever of growth for us, and has the potential to become larger than even the payments business on revenues.

Trending News

Why Amazon’s Flipkart bid is just not high enough

Selling without MRP, expiry dates to cost etailers

TCS hits $100Bn market cap: A new phase for India Inc?

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Flipkart-Walmart deal: What it means for the etailer and the whole industry

NCLAT stays CCI penalty of Rs 136cr on Google in search bias case

Walmart may rope in Google parent Alphabet for the Flipkart deal

Internet shutdown cost Indian economy $3 billion from 2012-17: Study

Flipkart and Amazon plan mega summer sales in May

International sales now account for 48% of Twitter's revenues

70% of mobile phones buyers in India opt for non-cash payments

Amazon India expects groceries & household products to account for 50% of business in 5 yrs

India to come out with a E-commerce policy framework in 6 months

Online learning platform Career Anna raises Rs 3 Cr funding

Wal-Mart will offer to buy up to 86% of Flipkart

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities