Some good news for startups

By Avanish Tiwary

CCAvenue, a decade-old company which offers payment services to e-commerce businesses has decided to do away with its installation fee and software upgradation fee for the first year for Indian startups. Earlier there was a one time installation fee of Rs. 7,500 and software upgradation fee of Rs. 1,200 charged to all the e-commerce firms.

With this waiver, the startups who lag with their capital requirement will take a sigh of relief. “Due to the increase in internet availability & awareness amongst young e-entrepreneurs we have been receiving a lot of requests to support ventures that may have unique business ideas but modest investment capacity,” said Mohan Nair, chief marketing officer, CCAvenue. The sentiment of startups is imperative to take notice of for CCAvenue as it constitutes 80 percent of its total clients inIndia.

 The company with this step is hoping its transaction volume to increase which will help them in the long run. Nair agreed that this will help CCAvenue to cater to more online businesses, especially in the startup section. “We will eventually see an increase in the number of merchants being serviced by CCAvenue eventually resulting in increased income due to the scale of transactions,” he explained.

The company has currently two other pricing models, categorically named ‘premium’ and ‘privilege’ scheme, under which it charges an installation fee of Rs. 25,000 and Rs. 40,000 respectively.

 In the five days, since this scheme was launched, CCAvenue has seen a 60-70 percent growth in the number of sign-ups on a daily basis.
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