1. EcoCash has a Vaya problem.
Vaya fits as well into EcoCash as Harry Maguire does in ManU's defense.
In short, Vaya is
a. Tiny & unprofitable
b. A mini conglomerate
c. Not making traction
d. Taking Management's focus
e. Can be done differently
Now long version+ V11s👇🏾
Vaya fits as well into EcoCash as Harry Maguire does in ManU's defense.
In short, Vaya is
a. Tiny & unprofitable
b. A mini conglomerate
c. Not making traction
d. Taking Management's focus
e. Can be done differently
Now long version+ V11s👇🏾
2. Vaya Technologies is part of the "Other Segments of EcoCash" in the financials. From there you can see Vaya made $1.7B in sales but ended up with a loss of $3.6B. That's like a striker who after every goal also goes on to score 2 own goals.
3. Now I know the argument is that Vaya is a more early stage and innovative business and so profits will come later. The issue however is so far it doesn't seem they are making traction. Take for e.g. Vaya's ride-hailing app. It only had 38k trips in FY22.
4. If we assume they made US$10 per strip that is US$380,000 per year BEFORE costs. Ecocash makes that much in less than a day.
Also - do you know anyone who uses Vaya often?
Also - do you know anyone who uses Vaya often?
5. Vaya Technologies seems to be trying to do everything: e-commerce, health care, emergency rescue, education, farming, logistics..
Its a buffet menu approach i.e. a mini conglomerate and such companies have been found to be much less effective as they lack focus.
Its a buffet menu approach i.e. a mini conglomerate and such companies have been found to be much less effective as they lack focus.
5. There is an approach however that can work which would require spinning out VAYA Tech & turning it into something like a Corporate Venture Capital (CVC) firm.
CVCs are created when a company sets up a separate unit to invest in start-ups and work with startups independently.
CVCs are created when a company sets up a separate unit to invest in start-ups and work with startups independently.
6. The CVC typically takes smaller but broader bets & is focused on this alone & as a result builds better understanding & relationships in the tech space. It also is good for the ecosystem as startups can collaborate with the company without the weight of the large corporate.
7. For me this seems like the best next step EcoCash should consider.
It would free up management's attention and improve the odds of success. And even if Vaya doesn't pick up, EcoCash would still have access to innovations through collaborations between the startups & the CVC.
It would free up management's attention and improve the odds of success. And even if Vaya doesn't pick up, EcoCash would still have access to innovations through collaborations between the startups & the CVC.
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