G.

L BAJAJ INSTITUTE OF MANAGEMENT & RESEARCH

GREATER NOIDA
POST GRADUATION DIPLOMA MANAGEMENT
BATCH (2019-2021)
A MINOR PROJECT ON
“REDCARPET PVT LTD.”

BY RISHABH SHUKLA PGDM-19311

GM-19146

UNDER THE GUIDANCE OF DR.SAURABH MITTAL SIR

1
 GREATER NOIDA

CETIFICATE

This is to certify Mr.Rishabh shukla (GM-19146) PGDM-2019-2021, Term-2, work

exemplified in minor project report on Redcarpet pvt ltd. under my mentorship in G.L
BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH, GREATER NOIDA (U.P)

MENTOR SECTIONAL INCHARGE FACULTY INCHARGE

Dr.saurabh mittal Dr. Saurabh Mittal Dr. Dileep singh

(Assistant professor) (Assistant Professor ) (Professor )
 FACULTY GUIDE CERTIFICATE

This is to certify that the work reported in the Minor Project titled on “Redcarpet pvt ltd”,
submitted by Rishabh shukla at G L Bajaj Institute of Management and Research, Greater
Noida, India, is a bona fide record of her/ his original work carried out under my supervision.
This work has not been submitted elsewhere for any other degree or diploma.

(Signature of Faculty Guide)

Name: Mr. Dileep singh

Date:
 ACKNOWLEDGEMENT

A task undertaken without offering prayers to almighty and talking

blessings from the elders is not a good beginning. Likewise the work completed
without acknowledging the assistance to those who were always by my sides to
make my efforts fruitful in the task left incomplete.

I convey my sincere thanks to, Faculty Guide Dr. Saurabh mittal of G.L Bajaj
Institute of Management and Research, for providing me the proper guidance for
providing me the opportunity to carry out my project effectively and efficiently. I
would also like to pay thanks to my Institute and faculty members for co-
operating with me and helping me to complete the project.
INTRODUCTION
Mission
Our mission is to help students get easy access to credit for any purpose - be it online
shopping, travel, books/tuition, entertainment or food and groceries

Vision
Our vision is to provide financial freedom to all students and support them in their financial
needs

RedCarpet lends to customers in India to finance their online purchases - ecommerce, travel,
etc.In India, credit and finance companies are able to service less than 3% of the customer
base because there is no data, no widespread credit bureaus to profile and score customers.
RedCarpet has access to much more data, including data on your mobile phone. We use this
data to service customers who never had any access to credit before. 90% of ecommerce in
India is cash on delivery. That is almost 4 billion USD of credit floating around - but not
managed and packaged as credit and risk. What it means is that we are building structure
around something that already happens at a large scale in India... just not built right.
By building better credit & lending infrastructure, we want to enable more people to access
credit. Our job starts BEFORE you start using a payment gateway or a wallet - we believe the
basic problem in the trillion dollar Indian economy is access to liquidity. Our aim is to
expand the credit economy — simply replacing the legacy credit providers/banks would
probably be a great business success, but it's not all that interesting as a goal. Our company is
built on a foundation of believing in people, believing in their integrity and building
technology around that belief.
Redcarpet pre-pay and order for any online services/product that a student wishes for, be it
enjoying a popcorn tub at the cinemas or travelling to the Himalayas!
India is becoming cashless and Redcarpet is ready to help students to finance their online
purchases. Redcarpet provide credit to students by paying in advance for their real time needs
with no-interest repayment option of 30 Days or 3 months & 6 months EMIs @ 2% interest.
No collateral, no security; just the student will be verified on Redcarpet’s mobile app by
submitting the student-ID and a selfie to get instant credits for their orders.
Redcarpet promises to fulfill a student’s every wish, all they need to do is download, upload,
write and receive!!
'Credit Card'
A credit card is a card issued by a financial company which enables the cardholder to borrow funds.
The funds may be used as payment for goods and services. Issuance of credit cards has the condition
that the cardholder will pay back the original, borrowed amount plus any additional agreed-upon
charges. The credit company provider may also grant a line of credit (LOC) to the cardholder which
allows the holder to borrow money in the form of a cash advance. The issuer pre -sets borrowing
limits which have a basis on the individual's credit rating

Difference between a credit card and a smart card?

1. A Credit card is basically an electronic card with magnetic data strip or a chip, issued
to customers by banks and other credit agencies.
2. A smart card contains a special embedded microprocessor, which is a computer
processor or a microchip.
3. Credit cards in the U.S are not very secure and of themselves many still deted card
technology. However consumers are not held liable for this poor security.
4. A Smart cards offer more security and confidentially than any other financial or
transaction storage card the market. They are a safe place to store sensitive or
personal information.
5. A Credit Card Not required to be connected to a checking account.
6. A Smart cards links directly to the Internet.
7. Credit cards are mostly used in online payments, to sell things or the web.
8. A Smart cards widely used in telecommunications industry.
Benefits Of Student Credit Cards
Today, several leading credit card issuers have a special credit card for students. If you are
pursuing your studies and need a financial tool to meet your daily expenses, you can
definitely go for a student credit card. There are several benefits and conveniences that a
student credit card offers. Some of them are as follows.

•No income proof required: If you are a student and wish to get a student credit card, you do
not have to produce any proof of your income. Also, the entire process takes just a few
documents and thus greatly reduces your hassles.

•Multiple uses: Using your student credit card, you could pay your college tuition fee and
other related charges. If you wish to pay for any online course that needs to undertake, you
can do so using the card.

•Several offers: A student credit card is usually packed with numerous cash back offers and
discounts which you can avail on multiple categories of transactions. The reward points that
you earn on the card can be redeemed against a host of exciting options.

RedCarpet raises $2.5 million in funding led by Lightspeed Venture

BENGALURU: RedCarpet, a student microlendingstartup that provides loans without credit

card and bank account details, has raised $2.5 million in a funding around led by Lightspeed
Venture Partners.

According to sources, the funds will be used to improve the technology behind risk
evaluation, introduce new student-lending features, hire data scientists and deepen market
penetration. Gurgaon-based RedCarpet, which began operations in November 2015, arranges
loans of up to Rs 60,000 per bo 60,000 per borrower, with the average loan size at Rs 5,000-
8,000.

However, interest-free rates are offered to individuals repaying the loan within a month. “At
one point, the team was contemplating alternative forms of lending that are less risky, but for
now they have decided to stick to student microlending since the market potential is huge
and a winner is yet to emerge,” said an employee on the condition of anonymity.

“The default rate for students tends to be easily over 1%, and the idea is to bring down that
default rate and introduce incentives ..
“The default rate for students tends to be easily over 1%, and the idea is to bring down that
default rate and introduce incentives for students to save and pay, emphasising the
importance of a good credit score.”

The company declined to comment on the fund raising. It receives up to 500 applications a
day, with 80% of these being rejected, said industry sources. The platform has already tied up
with microfinance institutions and has partnered with select non-banking financial
companies .for loan disbursal.

The low penetration of credit cards and personal loans in the country offers significant
opportunity for start-ups such as RedCarpet, although the spectre of bad loans can be
daunting as India’s public banks grapple with crippling loan defaults.
The startup is led by former Tradus executives Kartik Venkataraman and Sandeep Srinivasa,
and its cofounder Abhay Tamaria. It was earlier backed by famed Silicon Valley accelerator
Y Combinator. The Indian market for loans to college students to buy consumer products is
estimated at about $8 billion (about Rs 53,750 crore), according to RedCarpet.
FOUNDERS

Co-Founder
Mr. Abhay Tamaria
Die-hard adventurer and thrill seeker, entrepreneur from heart and believes in making most
out of life. Technology evangelist with over 8 years of experience, including general
management of small to mid-size organizations, corporate finance, product development,
digital marketing, business operations, risk management and strategy. Specialties: New
Business Development, General management, Risk Management, Product development,
Strategic planning, Business operations, Product marketing, Relationship management,
Project Management.

CEO
Mr.Kartik Venkataraman
Entrepreneur, accomplished leader with 15+ years of demonstrated success in using analytics,
decision science to improve business performance and drive additional value. Extensive
experience in all facets of online business setup and execution from marketing, pricing and
inventory management to product and site development. Results oriented professional with
proven ability to lead and bring success to complex initiatives. Exceptional people
management ability, capable of developing individuals and creating strong cohesive,
motivated teams to maximize productivity. Strong communicator with excellent interpersonal
skills.

Co-Founder
Mr.Sandeep Srinivasa
Leading the responsibility to build the foundations for scale at RedCarpetUp including
personally hiring and cultivating the people that will scale 10x. Experimenting with process
and operational scaling while building out the product and tech. Has hold his ground doing
Design Sprints at Google. Visible leadership of the company within the broader technology
and investor community and technology outreach programs (open source contributions,
hackathons).
RedCarpet's Competitors

Affirm is a top competitor of RedCarpet. Affirm was founded in San Francisco, California}
in 2012. Affirm competes in the Internet Software industry. Compared to RedCarpet, Affirm
generates $8M more revenue

Pay4Later has been one of RedCarpet's top competitors. Pay4Later is a Private company that
was founded in 2008 in London, England. Pay4Later operates in the Diversified Financial
Services industry. Compared to RedCarpet, Pay4Later has 26 more employees.

Pay4Later has been one of RedCarpet's top competitors. Pay4Later is a Private company that
was founded in 2008 in London, England. Pay4Later operates in the Diversified Financial
Services industry. Compared to RedCarpet, Pay4Later has 26 more employees.
Competitive Analysis

NUMBER OF EMPLOYEES 50-60

Taking a credit card for your business: How to pick one

Credit cards have become an essential part of our lives and much of it is because of the
utility it provides. Widely accepted across the country, it allows us to carry out transactions
even if we have very less cash on us. Like a credit card for an individual, there are
specialized credit cards for businesses. While many small business owners use their personal
credit card for business purpose, it is not advisable as you may miss out on certain key
features and benefits. Above all it is never smart to mix your personal and business expenses
together. In fact, most banks are pretty aggressive in pushing credit cards with attractive
features for businesses.

Suiting your need – At the outset you should understand what you need the credit card for.
Spends on credit cards are actually unsecured loans and go on to affect your credit rating.
Needs can be different, ranging from making purchases for business or making vendor
payments. One can also have a business credit card for employees, where a specified limit
can be set. Such cards will also allow you to come up with spend tracking, generate reports,
make a detailed analysis of spends, which will enable easy integration with your accounting
solution.
Offers- Credit cards for both individuals and businesses come bundled with offers so that it
encourages the user to swipe more. Offers on credit cards can work out well, so you need to
see what works out best. For example, some business cards allow you to collect air miles that
 you can redeem for an air ticket. Some allow airport lounge access, while others give you
points when you buy fuel from a petrol pump. Some cards give you points when you use it
for dining or entertainmenpurpose. Examine the cards on offer and figure out what works
best for you.

Interest rates and Fees – Credit cards have some of the highest interest rates, so one should
take a look at the rates being quoted by the bank. Banks sometimes quote interest rate on a
monthly basis, so do make sure you annualize it to get a complete picture. Most credit cards
also give you 48 days of interest-free credit period for all your online transactions or
purchases at merchant outlets. This can prove to be handy when undertaking day-to-day
transactions.
Also, keep an eye out for the fees that the card charges. Most business cards have an annual
subscription fee that can range anywhere between Rs 500-Rs 5000. Decide which card you
would want and look at all the fees that come along with it – overdue fees, fees on cash
withdrawal etc.
Credit limit – Credit limit is a function of different things, which includes your perceived
credit risk and profile, you should always ask your credit card issuer on what the limit
would be. You will have to tread a fine line between ensuring you are not stuck with a card
that has very low credit limit or go for a card that have huge credit limits. Always
remember credit card limits are perceived as open loans,
unsecured in nature or something that you can tap into without actually having any
collateral for it. Do remember that too much of unsecured loan or the potential for it can
skew the nature of your credit profile.

At the end do remember to shop around and ask questions. If you make international trips,
you may want a card that is exclusively geared towards that.

Eligibility And Documents Required To Apply For A Student Credit Card?

To be eligible for a student credit card one needs to be:
 Above 18 years of age
 Must be a college going student. As for the documents, one needs to provide:
 Birth certificate
 Identity card issued by the college/university
 Proof of residential address
 Recent passport size photograph
 PAN card

Which Banks Provide Student Credit Cards In India?

Though the concept of student credit card is quite new in India, there are banks that are
offering the cards to the students. Some of the banks that are offering the cards in the
country are:
 State Bank of India
 ICICI Bank
 Axis Bank
 HDFC Bank
 How Are Student Credit Cards Different From Other Credit Cards?
Unlike other credit cards, student credit cards do not come with a lot of features. Moreover,
the cards have a low monthly credit limit and come with low-interest rate and do not come
with a long interest-free payment tenure.

Features of Student Credit Cards 2018:

Credit Limits: Student credit cards have a lower credit limit compared to other credit cards
offered by banks. On average, a student credit card has a credit limit of Rs. 15, 000. This is
done to ensure that the cardholders do not incur debts as a result of unrestricted spending.
Card Validity: Student credit cards are generally valid for a period of 5 years from the issue
date, as compared to regular credit cards which have a 3 year validity period.
Duplicate card free of cost: If the student credit card holder misplaces their card or it is
stolen, a duplicate card would be issued free of cost or at a very nominal charge.
Waiver of fees: Student credit cards often do not have a joining fee and have very low
annual charges, making it easier for students to maintain the cards.
Documentation: Students credit cards do not require exhaustive documentation, unlike most
other credit cards. The bare minimum of documentation is required when applying for a card.
Special deals and rewards: The student cards come bundled with rewards and loyalty
programs that offer cashback or cash points when a certain amount is spent using the card.
The cards also have special offers and discounts on services as well as purchases worldwide.
If the cardholder wishes to, the student credit card can be upgraded to a regular credit card
anytime during the card’s validity.
As seen above, a student credit card has a number of features that distinguish it from
other cards offered. Some of the banks that offer student credit cards are mentioned
below:
1. SBI Student Plus Advantage Credit Card:
2. HDFC Bank ForexPlus Card:
3. ICICI Bank Student Travel Card:
4. HDFC Multicurrency Platinum ForexPlus Chip Card:

SBI Student Plus Advantage Credit Card:

With the SBI Student Advantage Plus Credit Card, students can learn how to manage their
money prudently. The card comes with an array of features designed exclusively for the
student demographic, such as the ability to convert all purchases to EMI’s, fuel surcharge
up to 2.5 % on all fuel spends charged to the card etc.
The card also has a good rewards program, with every Rs. 100 spent earning the cardholder 1
cash point, which can be redeemed for a range of gifts or used to pay off credit balance, if
any.
The card also comes with a low interest rate of just 2.25% per month.
In addition, railway tickets booked using the card will be delivered to the cardholder’s
doorstep, making travel plans and arranging tickets quick and convenient.
 HDFC Bank ForexPlus Card:
The HDFC ForexPlus Card is a boon for students who study abroad and require easy access
to funds in multiple currencies. This offering by HDFC is a prepaid card which works similar
to a credit card, where the amount is debited directly from the card.
For students living abroad, currency fluctuations are a constant problem. This card protects
cardholders from this as money can be deposited in the card in all major foreign currencies.
Withdrawals and transactions made through the card would also be protected from exchange
rate fluctuations if the transactions are conducted in the currencies that the card is available
in.

Here are the things you can get credit for:

✓ Product Purchase - Need the latest gadget? Chat with us on the app to get credit for the
purchase of products from any e-commerce site in India. Just share the link of the product
from the site or screenshot.

✓ Travel Tickets - Going on a trip? Book train, flight, bus tickets or maybe the entire tour
package on credit. Just share your trip details on chat and you are done.

✓ Recharge and Bill Payment - Short of money for your mobile bills? We'll give you credit
to pay for your mobile, DTH, internet or post-paid phone charges. Just share your operator
details and the amount of recharge.

✓ Movies and Events - Treating friends to movies? Get credit to fund movie, show and
event tickets. Just share your show details to get it instantly booked.

Problem statement

Title of the study: -

“Market Analysis and Competitors Analysis of credit cards”

Redcarpet is the non banking finance service which provides credit facility to students and
help in their needy time.
➢ This Sector is too much unorganized.
➢ There is not any proper channel of marketing
. ➢ This industry is totally depending on direct marketing.
➢ Most of the companies are not providing the appropriate information about the interest
rates and services offered by them.
➢ Most of the persons are not having a sound knowledge of terms and conditions given by
company.
➢ Government rules, norms and regulations.
Objectives of the Study:
➢ To understand about the company
➢ To understand about the company’s products and services
➢ To understand about the strategies of companies as well as competitors
➢ To understand about the organizational structure of the company
➢ To understand about the sales and distribution of the company
➢ To access the current demand of companies product in the existing products

Scope of the study:

Direct marketing plays a vital role in the business development of redcarpet pvt lmtd in India.
To understand the customer behaviour of buying pattern of credit cards. What is the main
strategy is adopted by the competitors to increase the sales. The project also includes the
brand equity and awareness levels of credit cards among the target group and measures to
increase the Brand Recall on Top Of the Minds of the Customer’s. My main aim of the study,
understands the process of Direct Marketing at redcarpet to make it more effective and
efficient

Limitations of the study:

➢ This startup is of 2015 so there is very less information provided by company and there is
no review of literature and studies published by company
➢ Most of the data is taken from the company site and from the different sites.
➢ this is startup so mostly competitors are startups
➢ Study is totally one-sided.
➢ Scope of the study is limited as it is mainly concern for the fulfilment of academic
purpose and company’s requirement.

Research methodology

The research methodology, not only the research methods are but also consider the logic
behind the methods. They are in the contest of our research studied. And explain why we are
using a particular method or techniques and we are using others.

Quantitative /Qualitative analysis

The research methodology is quite based on responses from consumer, which was generated
through questionnaire. The project is also based on responses from employees of the
company. Most of data has been quantitatively analysed.
Tools for data collection
Text books, articles from various websites happen to be sources of various secondary data.
Primary data has been collected through the method of survey. A questionnaire was given to
two hundred (200) samples for basically understanding the customer satisfaction on fire
extinguisher.

Field work
I made a questionnaire for the primary data collection to know about the customer
satisfaction. The questionnaires are filled up by two hundred responds. I must say that it was
one of the most challenging but interesting aspect of my project work. It was challenging
because, there was of course language problem, and convincing or detailing retailers about
new schemes and survey objective was real challenge. It was also a learning experience in
other way.

Methods of Data Analysis

Statistical tools used for the analysis part of the project. With help of MS-excel and SPSS
data collected through sample have been analysed. Pie charts and tables have been used to
make data analysis lucid and direct.

Data analysis and findings

Data analysis is a process of gathering, modelling, and transforming data with the goal of
highlighting useful information, suggesting conclusion, and supporting decision making.
Data analysis has multiple facets and approaches, encompassing diverse techniques under a
verity of names, in different business, science, and social sciences domains. Data mining is a
particular data analysis technique that focuses on modelling and knowledge discover for
predictive rather than purely descriptive purpose. Business intelligence covers data analysis
that relies heavily on aggregation, focusing on business information. In statistical
applications, some people divide data analysis into
Descriptive Statistics
Exploratory data analysis, and
Confirmatory analysis

Techniques used for data analysis:-

Pie chart
Bar chart
Histogram
Line chart

Summary of findings
Redcarpet pvt limited is a non banking finance services which provides credit card facility to
students to overcome with their daily needs as per customers review people are well aware
about the interest they are charged and are not feeling any fraud to them so in my opinion
non banking finance sector is working well in the field and their way of working is good
towards customers but in my study I have seen some customers complaining about the
technological issue they are facing and their for company must see to it and that’s it.

Suggestions and recommendations

➢ Company has to come down there price in the level of competitors.
➢ Company has to expend a lot of money in R&D, which will provide the good quality as
well as price.
➢ Company has to use Economies of scale, which will decrease the price of the products.
➢ Company has to expend a lot of money to create a brand building.
➢ Company has to do some activity to create awareness about the benefits of credit.
➢ Company has to participate in the industrial sector, which will create brand image.
➢ Company must advice to staff about their services and behavior towards customers.
➢ Company has to do proper analysis of the demand and supply of the products.
➢ Company should decrease their interest rates and relaxation to students.
Conclusion
Our mission: to make credit available to the next billion users.

Red Carpet lends to customers in India to finance their online purchases - ecommerce,
travel, etc. In India, credit and finance companies are able to service less than 3% of the
customer base because there is no data, no widespread credit bureaus to profile and score
customers. Red Carpet has access to much more data, including data on your mobile phone.
We use this data to service customers who never had any access to credit before.

We solely focus on new-to-credit customers in India. RBI's own report

(m.rbi.org.in//scripts/PublicationReportDetails.aspx) mentions that

"Based on international data, India is ranked 28 in “Getting Credit” and the coverage of CICs
accounts for only 19.8% of adult population, as against 100% in several countries"

We are a young start-up trying to drag the world of hyper local offline retail to the connected
mobile world. We have patent pending technology which pulls together internet-of-things,
mobile apps and real world retail.

We think of ourselves as fairly design obsessed and really love to talk about interaction
design, typography and icon-symbolism.

We are fanatical about our customer experience and really solve fundamental problems for
them. We work with several of the top retail brands in Delhi-NCR.

The culture in our office revolves around retail, brands and nology.
Reference

www.redcarpet.com
https://economictimes.indiatimes.com/small-biz/startups/short-on-cash-from-online-shopping-to-restaurant-bills-
redcarpet-will-pay-for-you/articleshow/59926899.cms

https://www.ambitionbox.com/reviews/red-carpet-reviews

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