Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
“Hello Mumbai,” exclaimed Mark Zuckerberg, Meta’s CEO, at a recent conference on WhatsApp’s business offerings. With enthusiasm, he stated, “I am particularly thrilled to host this year’s event in India,” as his face illuminated on a massive video link. “India leads the world in how people and businesses have embraced messaging to achieve their goals.”
India holds a special place in Zuckerberg’s digital empire. WhatsApp, the messaging service he acquired for $16 billion in 2014, sees the world’s most populous country as a potential source of significant revenue. Although WhatsApp has faced criticism in India for being a platform for viral misinformation, it has experienced unparalleled success in the realm of business messaging, according to Sandhya Devanathan, Meta’s India head.
This success is not just Silicon Valley hype. In India, WhatsApp has revolutionized various sectors. It allows users to send a photo of a prescription to their local pharmacist, who then delivers the medications. Grocery sellers use the platform to take orders, providing a competitive edge to survive against delivery apps. The platform also serves as a channel for businesses, like our neighborhood liquor store, to send broadcast messages to customers, alerting them about upcoming religious holidays and advising them to stock up on beverages before temporary alcohol bans. Varan, a Meta employee, commented to me at the conference, “Try explaining this to investors in the US.”
Moreover, India has been a testing ground for business messaging experiments. In 2020, Meta made a strategic investment of $5.7 billion in Mukesh Ambani’s Reliance Industries’ digital unit. As part of this collaboration, JioMart, Reliance’s grocery shopping service, was launched on WhatsApp. While the user count remains undisclosed, WhatsApp recently revealed that it is offering similar features to other companies. Zuckerberg’s latest announcement was about a new feature that enables Indian customers to make payments within WhatsApp, eliminating the need for a separate app or webpage. This service has already been deployed in Brazil and Singapore.
Armed with these new features, Meta aims to monetize India’s familiarity with WhatsApp. However, it won’t be easy since local businesses and the business version of the app currently benefit from it free of charge. To generate revenue, Meta must convince businesses that they can boost sales through smart marketing, leveraging platforms like Facebook and Instagram, while reducing costs by using chatbots for customer service.
Shrey Khandwala, an attendee at the conference, was impressed by Meta’s vision. The vibrant hall was filled with the sound of drones and an electro tabla player, as the 25-year-old explored stalls of companies that have capitalized on WhatsApp. Khandwala, who uses WhatsApp for marketing campaigns and customer support for his online jewelry and accessories company, Mesmerize, acknowledged that the platform is expensive. He emphasized the need to be mindful of costs and not bombard customers endlessly. He estimated that a marketing campaign targeting 100,000 people could cost at least Rs72,000 (approximately $859). Another attendee, an online delivery executive, pointed out that he can use his own app to market directly to customers’ phones, bypassing the expenses associated with WhatsApp.
Nevertheless, despite the costs, Khandwala remains committed to WhatsApp. “A significant part of our success is thanks to Meta,” he declared.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
