How to start a B2B mobile recharge business online in India?
We all are aware of the applications like Paytm, Phonepe, Google pay, etc., for mobile recharge. These applications allow us to recharge our mobile with a single click. But have you ever imagined before the rise of these applications how people use them to recharge their mobile phones? I still remember we used to buy recharge coupons or visit the retail stores (dukandaar) nearby us. So, have you ever imagined what happened to that mobile recharge model in this digital era and where are those dukandaar/retain shops gone?
In this blog, I will explain "How to start a B2B mobile recharge business in India?". The mobile recharge business is the best startup plan in India and is one of the most profitable businesses that can be established with minimum investment.
Before we go further in the blog, let me explain that the mobile recharge business has two models: B2B and B2C. Paytm, Phonepe, etc., are examples of the B2C model, and the mobile recharge done through the retail store is an example of the B2B model. We will discuss the B2C model in our upcoming blog. Here in this blog, we will discuss the structure, benefits, working, and scope of the B2B model of mobile recharge business. Many companies in India are running mobile recharge businesses and are working on the B2B model. These companies not only cover the root areas but also give commission on every mobile recharge.
What is mobile recharge software?
B2B Mobile recharge software is a tool that provides us with mobile recharge through the retail shop or dukaandar. Simply, it is a platform where traffic from the user is received, and that traffic is transferred to the operators (network provider). The software is a mediator between who can recharge and who wants to recharge. The admin, master distributor, distributor, and retailer earn a good commission between each recharge in terms of money.
Mobile recharge software is available in two different segments: Business to Business (B2B) and Business to Customer (B2C). Let's briefly go through both segments with an example.
1. Business to Business (B2B) - The transaction happens between two businesses in this segment. In this process, the customer is connected to the retailer, the retailer is connected to the distributor, the distributor is connected to the master distributor, and the master distributor is connected to Admin. There is no direct connection happen between the customer and the admin. In this model, a customer does not directly connect with the business (admin).
Example: Suppose you are a software admin and deal with the retailers. You can directly divert the traffic to the vendor company. In this process, an intermediator or other individuals are involved throughout the recharge process. Therefore, it is known as B2B recharge software.
2. Business to Customer (B2C) – In B2C, also referred to as D2C, two people are involved in the process, and one is the customer. In this process, the customer directly connects with the vendor/admin.
Example: Suppose an individual performs recharge operations by application or recharge software, and the admin directly performs the recharge process. In this system, two parties are involved: the individual (customer) and the Business (admin).
Here, remember that the recharge services is available for postpaid and prepaid recharge and is valid within Indian territory only.
V2S Infosystem Private Limited provides the best B2B software for prepaid recharge, postpaid recharge, and DTH recharge. They also provide B2B software for all types of Bill payments such as electricity, landline, water, fastag recharge, and insurance.
Apart from these services, V2S Infosystem also provides domestic money transfer software and Aadhar Enabled Payment System (AePS), which was locally known as "Aadhar Se Paise Nikalna".
How to start a mobile recharge business in India?
In India, B2B mobile recharge business is the most straightforward Business to start if you choose the right multi-recharge software and your planning is good. It is a low investment business that will drive good profit for you as an individual or an organization. The first step to starting a mobile recharge company is registering your Business in India; most of the recharge portals are registered under the Private Limited Company, but here are some other alternatives you can avail yourself. In India, there are different types of legal entities available:-
- Sole Proprietorship: If you want to start a B2B mobile recharge business with a low budget, this type is most suitable for you. In this type of legal entity, you have unlimited liabilities.
- Partnership: If you want to start a Business with your partner, this form is most suitable for you.
- Private Limited Company or LLP: It is the best form of company registration due to limited liability options. The B2B recharge business might have some risks due to the low recharge rate.
As soon as you have registered your company, the next step is to make legal documentation. You have to prepare the legal documentation regarding the recharge portal, like the refund policy and terms and conditions. It is necessary to keep some legal documents as they will be beneficial for the settlement of any disputes. You must have to register a GST for your business.
The final step for setting up the Business is to book the domain and hosting. When you plan to start an online recharge portal, you must have to book a domain name. It is always advised to use short and simple domains and common extensions like .com, .org., and .in, and do not forget to apply for the trademark. You can use websites like Godaddy, Bigrock, etc., for domain and hosting.
Also, Read - 5 Ways To Start A Mobile Recharge Business And Make Money Online
Why you should start a mobile recharge business in India?
Starting a mobile recharge business in India can be a lucrative venture for several reasons. The country's mobile phone user base is massive, and the government has been actively promoting digital transactions and cashless payments. These factors create an ideal environment for entrepreneurs looking to capitalize on the growing demand for mobile recharge services.
- Firstly, India has a massive mobile phone user base. According to the Telecom Regulatory Authority of India (TRAI), the country had over 1.17 billion wireless subscribers as of July 2021. With more people using mobile phones, the demand for mobile recharge services has grown significantly. This presents an excellent opportunity for entrepreneurs looking to start a mobile recharge business.
- Secondly, the government's push for digital transactions and cashless payments has contributed to the growth of mobile recharge businesses. With the introduction of digital payment methods such as UPI (Unified Payments Interface) and mobile wallets like Paytm and Google Pay, people are now more comfortable making cashless transactions. This shift has led to a surge in the use of mobile recharge services, which can be accessed and paid for through these digital payment methods.
- Thirdly, mobile recharge businesses require minimal investment and infrastructure. All that is needed is a computer or a smartphone and an internet connection. This makes it an ideal business for entrepreneurs who are just starting and have limited resources. In addition, mobile recharge businesses can be run from home, eliminating the need for a physical office space.
- Fourthly, the margins in the mobile recharge business are attractive. Telecom operators provide commission to mobile recharge vendors for every recharge that they do. The commission varies from operator to operator and can range from 2% to 5%. In addition, the commission structure is straightforward and easy to understand, making it easy for entrepreneurs to calculate their earnings.
- Finally, the mobile recharge business offers a lot of flexibility. Entrepreneurs can work at their own pace and convenience, without the need to adhere to strict work schedules. This flexibility makes it an ideal business for those who want to work from home or balance their work with other commitments.
In conclusion, starting a mobile recharge business in India can be a lucrative venture for entrepreneurs looking to capitalize on the growing demand for mobile recharge services. With a massive user base, a government push for digital transactions, and low investment requirements, the mobile recharge business offers a lot of potentials. However, entrepreneurs must comply with regulations to succeed in this business.
What are the different types of franchises in the B2B mobile recharge business?
B2B recharge business consists of a channel that is totally different from the B2C system. If you run a B2B recharge company you can make a channel of master distributor, distributor, and retailer.
There are 4 types of franchisee options available to start your recharge business which are following:
- Retailer: A Retailer franchisee is an initial step to understanding any business where you may directly supply mobile recharge services to your consumers and make a commission. Still, you do not have control over your up-line. It is a low-cost model; you might choose this model if you have limited capital.
- Distributor: Suppose you already own a business and are well-known in the community. In that case, you should consider becoming a distributor franchisee so that you may increase your earnings by building a team of retailers to work directly with your clients.
- Master Distributor: Master distributor is among top-level franchise businesses where you can make a team of retailers and distributors.
- Admin: This is the topmost level where you have full control over your down-line like master distributors, distributors, and retailers.
So, in this model, the retailer recharges the customer's mobile, DTH, electricity, Insurance, etc.; when a customer recharges through the retailer, he gets some commission. Apart from the retailer, commission or margin is also given to the distributor, Master distributor, and admin.
There are numerous options available to start a B2B mobile recharge business. You can buy the software through 3rd party Vendors or hire developers to make your website. Rather than hiring developers for making your website, you can start a B2B Mobile recharge business by buying software from V2S Infosystem as they provide the software at affordable prices with the least server down possibilities.
After buying B2B Recharge software from V2S Infosystem, you need an API for recharge. Surprisingly, you can buy API from V2S Infosystem; they provide API services at good margins and rates. Buying software for the V2S Infosystem will provide you with software and API at affordable prices and technical assistance at every single point. You only have to focus on your business, and V2S Infosystem will cover the technical part.
Conclusion
More than 80% of people in India prefer to recharge their phones. However, most rural, remote, and semi-urban populations still depend on retailers (dukandaar) to recharge their mobile phones.
The telecommunication business is at a uniform surge, and the number of cellular subscriber is rapidly increasing. The B2B mobile recharge business in India has grown exponentially in the past few years. In this scenario, the B2B mobile recharge business is among the most incredible startup ideas you can start with very little investment and will turn into a great source of income for you. People might get confused with the different terms, so let me explain to you Mobile recharge software, multi recharge software, single sim recharge software, and recharge B2B are the same terms. These B2B mobile recharges are valid only for Indian telecom operators.
V2S Infosystem is a global IT software consulting company that provides you best B2B mobile recharge software at a very pocket-friendly price. With the V2S info system, you can start your mobile recharge business at a very low capital. They also provide you with 24x7 technical assistance, user-friendly API, fast and secure transaction, etc. So, if you want to open your B2B mobile recharge business, do not wait anymore and connect with V2S Infosystem.
