In December of 2020, when the world was locked down to prevent the spread of a virus causing Severe acute respiratory syndrome, Pfizer faced a nearly impossible challenge—deliver millions of ultra-cold COVID-19 vaccines across the globe with zero margin for error. In the past, manual temperature checks and paper logs might have left critical blind spots. But this time, things were different. IoT-enabled thermal shipping boxes, equipped with sensors, tracked the temperature and location in real-time. As vaccines moved through a vast, complex distribution network, every deviation was flagged instantly, every alert routed to a centralized dashboard. The result? 99.9% integrity maintained — millions of lives protected.

This is just one example of how the Internet of Things (IoT) is reshaping pharmaceuticals into a responsive, intelligent, and deeply interconnected ecosystem. Sensors in factories, smart labels on packages, wearables on patients—all these devices are now nodes in a vast, digital nervous system. From production to packaging, and from logistics to patient care, IoT is turning reactive systems into proactive ones. Companies like Johnson & Johnson have adopted continuous manufacturing through embedded sensors, streamlining production and slashing batch release times from weeks to mere hours. Merck’s use of AI-integrated sensors has cut vaccine discard rates by detecting process bottlenecks early. Novartis, AstraZeneca, Moderna—the list of pharma giants transforming their operations with IoT grows by the day.

At its core, IoT is a network of physical devices—sensors, trackers, machines, even pill bottles—connected to the internet and capable of exchanging real-time data. In the pharmaceutical context, it means machines that report their status, shipments that broadcast their location and condition, and wearables that share biometric data without delay. These devices form a feedback loop that allows companies to respond instantly, whether that’s fixing a faulty machine, rerouting a delayed shipment, or alerting a doctor to a patient’s health change.

Figure 1: IoT in Action

The need for this transformation is rooted in the past. Pharma, for decades, operated through slow, manual processes. Imagine a factory where quality control involved paper logs and random sampling, missing micro-defects in drug batches. Or consider vaccine shipments where temperature deviations during transit were discovered only after reaching their destination—often too late. In clinical trials, researchers relied on self-reported symptoms and infrequent visits, limiting data quality and participant reach. All this led to high costs, regulatory setbacks, and even drug recalls. Now, sensors embedded in equipment and packages transmit real-time data to AI-powered systems that adjust parameters automatically or trigger alerts. Remote patient monitoring through wearables allows decentralized trials with higher retention, better diversity, and faster insights. AstraZeneca’s decentralized trials, for instance, have cut dropout rates by 35% while enhancing patient engagement.

Smart wearables are pushing this evolution further into the hands—and onto the wrists—of everyday people. Imagine a watch that doesn’t just tell time—it could save your life. Apple Watches today detect falls and can alert emergency services if there’s no response. Fitness trackers monitor heart rate variability, sleep, and oxygen levels, offering early warnings for potential issues. Diabetic patients use discreet, skin-worn glucose monitors that transmit blood sugar data in real-time to their phones. These aren’t just consumer electronics; they’re healthcare enablers, empowering patients and giving doctors access to a stream of accurate, timely data that can inform treatment.

IoT is also making pharmaceuticals safer and more trustworthy. By combining IoT with blockchain, companies are building transparent supply chains where every product’s journey is traceable and tamper-proof. Boehringer Ingelheim’s AI-powered vision systems scan for packaging defects with higher accuracy than any human inspector. Moderna’s use of digital twins and real-time monitoring has slashed quality deviations by over a third. Even energy and resource use are optimized through IoT, helping the industry meet sustainability goals without compromising quality or speed.

This blend of IoT and pharma is enabling better health outcomes on a global scale. Faster development cycles, safer supply chains, and more personalized care models are no longer future promises—they’re happening now. The pharma sector, once characterized by paperwork and guesswork, is transforming into one where data flows uninterrupted and decisions are made in real time. For patients, it means earlier interventions and more effective treatments. For the industry, it means fewer recalls, faster approvals, and stronger trust with regulators and the public.

Figure 2: Leveraging IoT in Patient Treatment and Monitoring

Of course, challenges remain. Data security, legacy system integration, and upfront implementation costs are all valid concerns. But the direction is clear. As the infrastructure matures and expertise spreads, the barriers will continue to fall.

IoT isn’t just a tool—it’s the foundation of a smarter, safer, more responsive pharmaceutical industry. And as companies continue to innovate, the ultimate beneficiaries will be the people: patients receiving better care, faster; families protected from disease; and healthcare systems that can finally shift from reactive to preventive. The future of medicine isn’t just digital. It’s connected.

The post When Pills Can Talk: How IOT is Revolutionizing Pharma from Factory to Patient appeared first on Avalon Consulting.

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He highlighted how green technology can tackle key environmental challenges, from cleaner air via EVs to emission cuts, water conservation, and biodiversity protection.

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“Every click, transaction, and digital footprint your customers leave behind is a monetization opportunity—if you know where to look”

What Is Data Exhaust?

Data exhaust refers to the passive, secondary data generated through routine digital interactions—often captured incidentally. This includes clickstreams (the sequence of actions a user takes on a website), IoT sensor logs from smart devices, location records from mobile apps, and metadata from transactions or system events. While this data isn’t part of a company’s core operations, it accumulates rapidly and contains deep insights into customer behaviour, usage patterns, and operational trends.

Yet, what many firms discard as digital noise can be transformed into a strategic asset. Take Mastercard as a leading example: in 2024, the company generated $10.83 billion—over a third of its total revenue—from its Value-Added Services and Solutions segment. This includes anonymized analytics and insights derived from 125+ billion purchase transactions, which are sold to advertisers, retailers, and policymakers. Once considered an operational byproduct, this data exhaust now fuels a growing, high-margin revenue stream—demonstrating the massive, untapped potential hiding in plain sight.

Why This Matters – Data Exhaust as a Critical Asset

In today’s data-driven economy, data exhaust is emerging as a powerful yet underutilized strategic asset. While most organizations analyse only a small portion of their data, research shows that 80% of the most innovative firms actively leverage data for business gains. Industries like banking, financial services, and telecom are leading the way—using aggregated and anonymized data exhaust to enhance customer experience, optimize operations, and support strategic decisions like urban planning.

The potential is massive: the global data monetization market is projected to grow from $375.97 billion in 2025 to $1,632.57 billion by 2034, at a CAGR of 17.72% during the forecast period. As companies invest heavily in data infrastructure—Microsoft is planning to spend $80bn in 2025—unlocking value from data exhaust is not just an opportunity, but a competitive imperative.

Why Companies Fail to Utilize Data Exhaust

Despite its value, many companies struggle to monetize data exhaust due to structural, technological, and strategic barriers:

Overcoming these challenges requires organizational alignment, investment in AI-driven analytics, and consulting expertise to build scalable, compliant monetization models.

How Can You Unlock Revenue from Data Exhaust?

1. Enhance Core Business with Data-Driven Insights

Use behavioural and usage data to improve products and personalize services. For example:

• Insurance: Progressive’s “Snapshot” program uses smartphone telematics to reward safe drivers and now accounts for over 20% of its direct-channel revenue.
• Agriculture: John Deere transformed data from its equipment into a “Precision Farming” subscription service, shifting from one-time sales to recurring revenue.
• Retail: Amazon leverages browsing logs and purchase history to personalize offers and recommendations, significantly reducing customer churn and boosting sales.

Estimates show that the right personalization strategy can lift revenues by 10–15%, and that data-driven operational changes yield 10–25% performance improvements. Treating data exhaust as fuel for R&D and marketing can deliver immediate ROI.

2. Package and Sell Anonymized Data Products

Companies can sell insights derived from aggregated, anonymized client data. For instance:

• Financial services: Mastercard’s Data & Services division sells over 25 products based on 125+ billion purchase transactions, enabling ad targeting and market research.
• Telecom: A Fortune 500 telecom used tower and subscriber data to launch a data marketplace, serving city planners and retailers.

These data products are high margin, require little incremental cost, and comply with privacy laws when properly handled.

3. Innovate Business Models and Services

Data exhaust can enable new offerings and business models:

• Aviation: Rolls-Royce uses jet engine data to offer “power-by-the-hour” maintenance contracts.
• Healthcare: Propeller Health uses sensor data to guide asthma patients, cutting emergency events by 50%—a value proposition that justifies premium pricing.
• Software: One firm monetized telemetry data to detect license misuse, generating $4M in additional revenue.
• Banking: Aggregated transaction data is used for spend analytics and fraud detection tools offered to clients.

By turning data into IP and services, firms unlock new revenue streams and premium pricing opportunities.

How Data Missteps Derail companies: Risks and Repercussions

Industry leaders are increasingly monetizing data exhaust. However, the risks of mismanagement are just as real:

• Silos and lack of coordination can result in initiatives like GM’s OnStar, which faced regulatory scrutiny for sharing driver behaviour data without explicit consent, causing reputational damage and operational restrictions.
• Privacy concerns and inadequate governance were evident when a fitness app’s public heatmap inadvertently exposed sensitive military locations, highlighting the dangers of poor data handling.
• Leadership mindset and insufficient transparency contributed to backlash against a smart speaker brand that used user recordings to train AI without consent, eroding trust and attracting regulatory pressure.
• Lack of a clear monetization strategy led some firms to build costly data lakes that yielded no returns, ending in write-offs and stalled projects.

Successful leaders treat data exhaust as a strategic asset—balancing innovation with governance, transparency, and clear business value.

Action Plan for C-Suite Leaders

To harness data exhaust effectively, executives must take immediate, structured steps:

• Audit and classify data exhaust: Identify all customer and usage data (e.g., web logs, sensor data) that could unlock value.
• Implement governance and privacy safeguards: Anonymize data and comply with regulations. Use data catalogues, encryption, and transparent privacy policies.
• Pilot analytics projects: Form cross-functional teams to test monetization use cases. Start with small wins—like customer journey analytics or personalized offers—and scale success.
• Develop data products and partnerships: Create dashboards or reports for external use. Collaborate with ecosystem partners or join data marketplaces.
• Measure, iterate, scale: Track KPIs such as new revenue, cost savings, and retention impact. Refine the business case and expand successful pilots.

To achieve this, the key enabler is investing in technology and talent by building modern data infrastructure—such as data lakes and real-time analytics—and hiring specialists in AI, data science, and data privacy

Conclusion

Data exhaust is not digital waste—it’s an untapped strategic asset. As data generation surges, the gap widens between firms that act and those that fall behind. C-suite leaders must reframe their mindset: data exhaust must become a core pillar of innovation. The tools and talent are available. What’s needed is urgency. Turning “waste” into wealth could define the winners of the data-first economy.

The post How Firms Can Monetize their Data Exhaust appeared first on Avalon Consulting.

1. India’s Semiconductor Ambition: A National Imperative

India has begun an ambitious journey to become a major player in the global semiconductor landscape. This strategic push began with the announcement of the India Semiconductor Mission (ISM) in December 2021 with a budget of ₹76,000 crore (US$9 billion).

ISM’s goal is to establish a sustainable semiconductor and display manufacturing ecosystem in India. Specifically, operating under MeitY, it aims to establish fabs (fabrication units), OSAT (Outsourced Semiconductor Assembly and Test) facilities, and ATMP (Assembly, Test, Mark and Pack) units in India, reduce India’s dependency on imports, and foster innovation through schemes namely the Design Linked Incentive (DLI) for start-ups and MSMEs.

The Indian semiconductor market, valued at $52 billion in 2024 and projected to reach $103 billion by 2030, is driven largely by booming demand from automotive (especially EVs), electronics manufacturing, and IT sectors. The global reshoring trends of manufacturing industries due to geopolitical tensions, environmental deterioration, and economic threats emphasizes the need for secure local production.

India’s staged semiconductor manufacturing strategy begins with ATMP/OSAT (the majority of global semiconductor assembly and test facilities) so that they can build capabilities and supply networks before going into full-scale fabrication.

The centrepiece of these initiatives is Tata Electronics’ greenfield semiconductor assembly and test facility in Jagiroad, Assam, a ₹27,000 crore (US$3.6 billion) project approved on February 29, 2024, with the foundation stone laid on August 3, 2024. This facility is envisioned as a strategic anchor for India’s ATP segment and a key step in making India a leader in the global semiconductor supply chain.

1. Why was Assam chosen for this massive project?

The selection of Assam reflects a junction of geopolitics, resources, and policy in the following ways:

• Policy: Assam has set itself apart by being among the first states to declare a very competitive semiconductor policy in August of 2023. This policy offers substantial fiscal incentives, providing a 40% extra capex subsidy on top of central incentives which is higher than states like Gujrat, UP and Tamil Nadu which provide only 20-25% subsidy. The policy also provides tax breaks, power rebates, and thorough facilitation with emphasis on fabs, ATMP, and OSAT, thereby making Assam quite investor friendly.
• Resources: Assam’s resource advantages bolster its semiconductor potential. Ultra-pure water and stable power—critical for chipmaking—are ensured by the Brahmaputra (India’s largest river by volume) and 14 GW of renewable energy potential. The state offers potable water at ₹5/m³ and power tariff incentives of up to 50% for 10 years, significantly cheaper than Gujarat (₹12/m³). To scale clean energy, Assam aims to add 11.7 GW of capacity by 2030 under its Integrated Clean Energy (ICE) Policy 2025, which supports green projects with duty reimbursements and tariff subsidies.
• Geopolitics: Assam’s geographical location also offers a strategic advantage as it links Northeast India to ASEAN markets and neighbouring BBIN and BIMSTEC regions over 5,182 km of international borders under India’s Act East Policy. Upcoming multimodal corridors including rail links like Kokrajhar-Gelephu, the Brahmaputra waterway, the proposed Assam Electronics & Semiconductor Logistics Park (AESLP) and the development of a tech park and ESDM cluster over 100 acres in Jagiroad —offer seamless connectivity to packaging hubs in Taiwan, Malaysia, Vietnam, and Singapore.
• Talent: The Northeast, including Assam, provides a sizable and always expanding pool of educated talent as well. Supported by institutions including IIT Guwahati, eight NITs, eight Central universities, and industry academic collaborations, they provide qualified VLSI and chip design experts. A young, English-speaking workforce in a pollution-free surrounding promises to draw expatriate professionals vital in early stages.

All these factors taken together produce a low risk proposition for high tech investment.

1. Socio-economic effects of the plant on Northeast India

The construction of the semiconductor facility in Jagiroad has the potential to cause significant socioeconomic changes throughout Northeast India, extending far beyond the factory gates.

Employment and upskilling

The Jagiroad plant is expected to generate over 25,000 jobs—15,000 direct and 11,000–13,000 indirect which marks a shift from traditional agriculture and resource mining to advanced technology employment driving a fundamental improvement of the human capital of the region.

Nationally, the semiconductor mission targets 25,000 direct and 60,000 indirect jobs, supported by skill programs training 85,000 professionals across B.Tech, M.Tech, and PhD levels, across 113 academic institutions, nine of which are in the Northeast.  Along with NIELIT and Gauhati University’s partnerships, programs like “Chips to Startup (C2S)” at IIT-Guwahati and NIT-Silchar are aggressively producing semiconductor talent.

These high value employment prospects are also expected to lower youth migration, retain intellectual capital, and boost local entrepreneurship which can help to mitigate historical problems of “cultural disconnect” and promote shared economic prosperity.

Ancillary businesses

Supporting businesses pertaining to logistics, maintenance, raw materials, specialized services will flourish all around the plant in a cluster form.  The presence of a major player like Tata will also encourage local businesses and MSMEs to integrate into the value chain as suppliers, expanding the regional industrial base.

The influx of highly skilled professionals and increasing industrial activity will also naturally boost other sectors including real estate, transportation, and hospitality fostering a dynamic and diverse workforce.

Knowledge based economy

By diversifying away from its conventional economic drivers of agriculture, tea production, and resource mining towards a technologically driven, knowledge-based economy, Northeast’s economy will become resilient against outside shocks and bring in private investment.

Alongside this project, Reliance and Adani have also pledged to invest ₹75,000cr and ₹50,000cr respectively in the NE region. All these investments will lead to even more industrialization, employment generation, and infrastructure improvements across verticals which will be very helpful in upbringing the community as a whole.

1. Can Northeast become India’s next semiconductor hub? What needs to be done.

Tata’s Jagiroad factory can be the linchpin for a Northeast semiconductor cluster. In fact, global chip-ecosystem players are already lining up with firms like ASMPT, DISCO, BESI, Cadence and Tokyo Electron setting up local presences, and Tata planning MoUs with 10 more companies to “boost the ecosystem”.

But in order to become a full semiconductor hub, the Northeast needs to leverage its unique abilities and draw the whole value chain—from upstream R&D, design, and material production to downstream electronics manufacturing and product development.

What the local Governments need to do?

For state governments, consistent policy support is absolutely vital. This covers maintaining and possibly improving incentives to compete internationally as well as guaranteeing perfect policy execution to lower bureaucratic delays. Key focus should be on establishing world-class research centres in semiconductor materials, design, and manufacturing, supporting academia-industry cooperation, and building research parks and innovation hubs for startups by means of R&D investments.

Governments should also leverage the “China Plus One” strategy by aggressively highlighting North East’s special advantages. Relaxed land regulations under EMC 2.0 will help actively promoting specialized zones including electronics manufacturing clusters (EMCs) and SEZs like Tinsukia and Guwahati-Baihata Chariali. One step in this regard is the planned Assam Electronics & Semiconductor Logistics Park (AESLP).

Strengthening infrastructure including consistent high-quality power, effective water systems, and strong multimodal logistics—roads, rail, rivers, air cargo are also of paramount importance.

Building a strong talent pipeline is also important. Expanding technical curricula (VLSI design, chip testing, AI) at universities and polytechnics will be vital. Apprenticeships and certifications tied to the Tata plant can upskill local youth.

What the people need to do?

Local involvement is equally vital. Supported by government grants and seed money, entrepreneurs and MSMEs should be urged to participate in the semiconductor value chain—from raw materials to specialized services. The youth should be motivated to pursue STEM verticals. The culture of migrating outside the Northeast in search of “better opportunities” needs to be mitigated.

To thrive in the evolving knowledge-based economy, individuals must embrace continuous skill development, particularly in high-tech fields like VLSI design, IC manufacturing, and advanced packaging—through programs offered by institutions such as IIT-Guwahati and NIELIT.

Given the semiconductor industry’s rapid technological rise and emphasis on precision, the workforce must remain adaptable, pursue ongoing training, and commit to excellence to meet global standards building a reputation for reliability internationally.

1. Conclusion: Northeast India’s Pivotal Role in India’s Tech Future

Through Tata’s Jagiroad facility, the Northeast enter a new era marked by the shift from primary sectors to a knowledge-driven economy. This project is much more than just a chip manufacturing facility; it is a key driver of regional development, with the potential to create a large number of direct and indirect jobs, support the expansion of many ancillary industries, and propel important infrastructure improvements throughout the area.

The Northeast has the perfect opportunity to spearhead India’s semiconductor aspirations thanks to its innovative state policy, wealth of resources, advantageous location, and growing talent pool. But in order to fully realize the potential of this “Silicon Dawn,” industry, academia, and the central and state governments must continue to work together in the areas of infrastructure, R&D, skill development, and policy implementation.

With Assam at the forefront, Northeast India is poised to become a crucial and indispensable player as India strives for semiconductor self-reliance and become a global electronics hub by 2030. This region exemplifies inclusive and sustainable industrial growth in line with the vision of “Viksit Bharat, Viksit Northeast.” How far this vision takes the Northeast, only time can tell; But the direction is clear:  from the banks of the Brahmaputra to the global chip supply chain, a high-tech future is unfolding.

The post The Silicon Sunrise: How Tata’s Assam Chip Plant Could Catalyze Northeast India’s Economy appeared first on Avalon Consulting.

How many of you have recently checked your Google Pay / Phone Pe transaction history and thought:

“Wait… when did I even spend this money?”

Or maybe some of you started working before the UPI era—

Can you relate to whether your spending patterns have changed over the past years?

Or worse… are you worried that your siblings or kids are slowly turning into part-time Swiggy shareholders, based on how often they order food?

If that sounds familiar and you are seeing similar patterns around, this article might be relatable, since we’ll explore how the rise of impulse-driven spending, enabled by technology, is fueling a surge in digital transactions. At the same time, consumer-facing apps with embedded payment features are setting new benchmark models to capitalise on this behaviour, offering valuable lessons and opportunities for smaller players to replicate or adapt these strategies in response to evolving consumer patterns

Rise in Impulsive spending

Recent research from a study by FIS Global on increasing willingness of Indians to adopt embedded finance solutions highlights how convenience-driven digital payment methods like UPI—along with the growing influence of instant gratification and incentives—are shaping purchasing behavior.  The study found that approximately 76% of Indians use UPI for online checkouts, with this number rising to 84% among millennials [10]

About 63% of participants cited the convenience of a two-click checkout process as a key factor influencing their buying behaviour [10]. Marketing teams of applications such as Uber, Amazon, Swiggy, and Zomato have effectively capitalised on this trend by providing a range of seamless payment options, majorly UPI, allowing users to complete transactions with minimal effort

Furthermore, 72% of users consider discounts and coupons offered by these platforms when making purchases, while 63% are influenced by rewards and cashback benefits integrated into these apps[10]. These findings underscore the rise of impulsive spending behavior and demonstrate how marketing strategists are actively leveraging this shift in consumer habits to drive more low-value, impulse purchases

The rise of UPI: Game Changer

The rise of UPI has significantly influenced the entire digital payment ecosystem in India. Launched in 2016 with just 21 banks, UPI has grown rapidly to include 661 banks by March 2025 [1]. Today, it contributes to approximately 83% of all digital transactions, far outpacing cards, NEFT, wallets, and other previously dominant payment modes [2] The stark contrast becomes evident when we consider that in 2019, UPI accounted for only 34% of digital transactions, while cards and other methods made up nearly two-thirds of the total [3]

According to the Press Information Bureau (PIB), monthly UPI transactions grew from 4 billion in October 2021 to 17 billion in October 2024 [4]. Similarly, the total transaction value increased from ₹7 lakh crore to ₹23 lakh crore over the same period [4]

UPI Transactions Volume
(In Billions)

But there’s another side to these impressive numbers. A closer look of the above numbers reveals that the number of transactions is growing faster than the total transaction value, indicating a decline in average ticket size [4]. This trend becomes clearer when we consider the bigger picture — a notable shift in UPI usage from high-value person-to-person (P2P) transfers to low-value person-to-merchant (P2M) transactions

P2P to P2M shift of Digital Transactions

Person-to-merchant (P2M) transactions, which accounted for just 40% of all UPI transactions at the beginning of 2022, have grown to 63% in 2024 and now dominate the UPI landscape

Shift of UPI Usage from P2P to P2M Transactions

Of this 63%, almost 86% of transactions fall within the ₹0–₹500 range. In comparison, for person-to-person (P2P) transfers, about 56% of transactions are below ₹500 [5]. P2P transactions still include a substantial share of higher-value transfers — around 44% are above ₹500, and within this, 22% exceed ₹2,000[5]. In contrast, small-ticket transactions dominate the P2M segment. Transactions above ₹500 account for less than 14%, while nearly half of all P2M transactions are below ₹200 [5]

Transaction Distributions

This growth in P2M (person-to-merchant) payments is not accidental; it has been driven by incentives and infrastructure support aimed at encouraging merchant adoption by relevant stakeholders. In 2022, National Payments Corporation of India introduced UPI Lite, a simplified version of the Unified Payments Interface (UPI) designed for small-value transactions. It allows users to make payments of up to ₹500 per transaction without needing a PIN and has a maximum wallet balance limit of ₹2,000. This limit was later increased in December 2024 to ₹1,000 per transaction, with a daily limit of ₹4,000 and a maximum wallet balance of ₹5,000 [6]

UPI Lite Transaction Limits 2024 vs 2025

In 2023, NPCI launched UPI Lite X, which leverages Near Field Communication (NFC) technology to enable small-scale money transfers between on-device wallets and works even in offline mode [7]. UPI Lite is particularly useful for individuals in rural or semi-urban areas with limited internet access, enabling offline payments. UPI 123 is another initiative by UPI that allows users with feature phones, without any smartphone capabilities, to make transactions through an IVR number and other options without the need for internet access [8]

The Government also prioritises promoting low-value digital payments to enhance financial inclusion and provide more payment avenues for the common man. Recent initiatives include a ₹1,500 crore incentive scheme for low-value BHIM transactions to encourage digital payments among small-scale merchants [9]

According to NPCI, a Merchant Discount Rate (MDR) – the service charge paid to payment processing companies of up to 0.30% is applicable for UPI P2M (Person-to-Merchant) transactions, which is still lower than the 0.9% typically charged by card networks for debit card transactions [9]. Since January 2020, to promote digital transactions, MDR has been waived for RuPay Debit Card and BHIM-UPI transactions through amendments to Section 10A of the Payments and Settlement Systems Act, 2007, and Section 269SU of the Income-tax Act, 1961, with the Government compensating these companies through incentives to promote low value digital transactions [9]

Impulse to Revenue: How Apps Drive Small-Ticket Digital Transactions

If you’ve seen messages like “Add ₹100 more and save ₹40” in your favourite quick commerce applications, you’ve already encountered one of the benchmark strategies used by embedded finance consumer applications to drive impulsive purchases. Bulk order discounts are a key initiative adopted by embedded finance applications like Swiggy, Zepto, Blinkit, and others to tap into impulsive spending patterns.  These platforms encourage top-up purchases by offering instant discounts to boost Average Order Value (AOV), and companies are introducing new innovations in this business model l. Swiggy Instamart recently launched Maxx Saver, a discount-led strategy aimed at increasing average order value—directly positioned against Zepto’s Super Saver. Unlike Zepto, where customers need to browse the Super Saver section manually, Swiggy embeds these bulk order discounts directly into the cart experience. The discounts are automatically applied at checkout, making the process frictionless and more effective in nudging users toward higher-value purchases

Bulk order Discounts: Swiggy Maxxsaver

Another benchmarking model is embedded subscriptions, which offer many benefits, including removing the delivery fees. For example, Swiggy offers Swiggy One membership, including a new version called One Lite. The One Lite plan provides 10 free food deliveries from any restaurant within a 7 km radius, and 10 free Instamart deliveries, provided the order value exceeds ₹199.  This setup encourages customers to add more items to avoid delivery charges. Additionally, members often feel the urge to place more orders due to the temptation of maximising their subscription benefits, again resulting in impulsive spending

Embedded Subscriptions: Swiggy One Lite

UPI applications have long facilitated avenues for impulsive spending, most notably through scratch cards and cashback incentives offered on specific transactions. A more distinctive method includes wallet lock-ins, where platforms like Amazon Pay encourage users to top up their wallets to avail cashback offers — funds that may later be required for processing future payments. Retail applications like BBinstant are also adopting this model in their smart vending machines, where users must load an initial amount into a wallet. While this often comes with cashback incentives, it effectively locks the money within the system, prompting users to make additional transactions to fully utilize or “unlock” the balance. This is a model that more e-commerce platforms could adopt, enabling smoother and more habitual purchases without relying entirely on UPI for completing every transaction

BBInstant Wallets

Beyond UPI

Apart from UPI, Buy Now, Pay Later (BNPL) applications such as Zest Money, Lazy Pay, and Simpl, which offer similar convenience of UPI, are increasingly gaining traction in embedded finance applications. These platforms offer the added benefit of deferred payments, attracting users who value flexible payment options, thereby making impulsive purchases easier and more frequent

BNPL Applications: 1 Click Pay

According to a recent study by Business Wire, the BNPL market in India grew at a CAGR of 22% between 2021 and 2024 and is projected to reach USD 21.95 billion by 2025 [11]. The report highlights the untapped potential of India’s expanding digital economy as a key factor driving the entry of new BNPL providers. Moreover, strategic partnerships between BNPL companies and e-commerce platforms have enabled seamless integration of these payment solutions, significantly enhanced accessibility and accelerated consumer adoption

Looking ahead, BNPL providers are expected to focus on penetrating tier-2 and tier-3 cities by collaborating with e-commerce/ retail players and tailoring their offerings to meet the unique needs of these regions. However, despite the upward trajectory, regulatory concerns – particularly the restrictions on allowing prepaid payment facilitators to function as loan providers propose significant challenges. These limitations are prompting BNPL firms to reassess and adapt their business models in order to stay compliant and ensure sustainable growth

Closing Thoughts: Bringing Credit Cards to the game

There is significant scope for improvement in digital spending if the credit card market can be enhanced with the same ease of use that UPI currently provides. At present, only RuPay credit cards, accounting for nearly 16% of all credit card spending, are integrated with UPI, with nearly half of these transactions made via credit on the Unified Payments Interface (UPI), according to NPCI [12]

If major players like Visa and Mastercard are also integrated with UPI, like RuPay, it would provide consumers with greater freedom to spend using their credit limits rather than being constrained by the balance in their UPI-linked bank accounts. This shift could drive a significant increase in digital transactions and unlock more of the market’s potential.

The post Turning Simplified Purchase Journeys into Growth Opportunities appeared first on Avalon Consulting.

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The post Impact Pape 29: Unlocking synergies for a leading FMEG company in India appeared first on Avalon Consulting.

The Indian film industry, a global giant, released ~2000 films in 2024 across 15+ languages. The industry across decades has been thriving on its rich artistic history, young population, and rising incomes. Post-Covid-19 though, the industry has been witnessing a structural shift with blurring lines between regional cinema and “Bollywood”. Increased collaborations among production houses, crew, actors, and audiences across languages are evident. Key trends and audience preferences are evolving, shaping a new way forward for the diverse Indian film landscape.

In this article, we will identify certain major trends observed in the Indian film industry, decode the voice of the Indian film-watching audience and the way forward for the industry.

Paradigm Shifts – Gradual but Irreversible?

• Hindi film releases – a downward spiral

The Indian film industry registered a degrowth of ~3% in terms of number of films released in 2024, as per IMDb data. However, a closer look reveals that the Hindi film industry, which is the largest, registered a steep fall of ~14%. The share of Hindi films in the overall mix was 18% – the lowest over the last decade. Since 2022, the share of non-Hindi films in the overall mix has been increasing. The Telugu films over this period have increased their dominance, with their share increasing from ~10% pre-2020 to ~15% in 2024.

• Soaring audience approval – non-Hindi films

Over the last decade, the share of non-Hindi films garnering approval has consistently improved. Since 2015, the share of Hindi films rated above “average” has been ranging from 25%-30%, however, for Tamil and Telugu films, the corresponding figure reached ~50% and ~70% respectively in 2024. Even for other languages the audience approval ratings above the “average” mark have improved.

• Shifting grounds – South Indian to Pan Indian

In 2024, more than 50% of the top 15 highest domestic Box Office grossers were South Indian. Even 2 English films made it to the list. Compare this with 2014 – a whopping 80% of the top 15 Box Office grossers were Hindi films, rest being South Indian.

Accompanying the above trends, Hindi film theatre footfalls declined by ~25% (to 23 Crores) from 2015 to 2024, while non-Hindi film footfalls rose by ~10% (to 65 Crores), with Telugu films showing significant growth. While Hindi film Average Ticket Prices (ATPs) kept pace with consumer inflation, other language ATPs, except Telugu, were substantially lower, with Tamil films at INR 95 (~50% lesser than its Hindi Peers).

Stardom – May be, Story – A Definite Yes!

2024 saw unanticipated films with domestic box-office collections being manifolds as compared to their budgets: ~12X for Stree 2 and Manjummel Boys. Not only did these films do well commercially but also had a lower pre-release visibility through promotional campaigns than some of their high-profile peers. The average IMDb rating for top 15 films in 2024 was 6.72, higher than that of 6.03 for 2014. Analysis of reviews of these films highlight a clear pattern- the focus on an original and unique story, accompanied with solid acting, and stunning visuals. This is starkly different from 2014, wherein the focus of audience was on acting, driven by major stars. These preferences have been seen to precede film ticket prices for audience decision making and contribute towards footfalls. On the other hand, OTT players are accentuating access to the content viewers “want”, along with the convenience of multiple platforms.

Way-ahead: Shift of the Goalpost

With the trends and the audience preferences unfolding neatly, there are clear takeaways for the Indian film industry to thrive going forward:

• Content is the King: Filmmakers must prioritize strong content, as compelling storytelling, visuals, and screenplay collectively shape a cinematic spectacle. This highlights the growing importance of filmmaking crews, while reliance on star power alone offers limited impact.
• “Audience” Entry Strategy: With content at the forefront, filmmakers must carefully choose their entry strategy—either a big-bang launch with heavy promotions or a release through reputed film festivals, gaining critical reviews to generate word-of-mouth buzz. The right approach helps engage the target audience and minimize failure risks.
• Enhancing OTT Collaborations: Partnering with OTT platforms benefits content by combining filmmakers’ expertise with OTTs’ audience data. Such unconventional strategic partnerships can lead to more targeted, engaging, and potentially high-quality content, reaching wider audiences and mitigating production risks.
• Marketing – Out of the Box: A 2023 YouGov study shows ~64% of Indian audiences rely on post-release word-of-mouth. Agile, creative post-release campaigns using influencers and guerrilla marketing can boost box-office longevity, which will need a fundamental shift from fixed pre-release promotional budgets to post-release ones.

The Indian film industry is at an exciting turning point, driven by the convergence of languages, skills, and technology. Sustaining this transformation requires stakeholders to adapt to evolving audience needs. This ~2 million strong industry and the average Indian film-watcher appear ready to embrace this change.

The post Indian Film Industry: A Twist in the Plot? appeared first on Avalon Consulting.