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Milaap Case

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368 views8 pages

Milaap Case

Uploaded by

Shivani
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© © All Rights Reserved
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= INHAN INSTITUTE OF MANAGEMENT AHMEDABAD TIMA/TSOL2 MILAAP - Crowdfunding for All: Helping Patients by Facilitating Philanthropy Je was an unusually cold moming in Bengaturs in November 2019. Anoj Viswanathan, ti cofounder of Milaap, walked briskly and rubbed brs palme to generate warmth a5 he proceeded tewards the elevatur tu atknd the annual strategy mecting As he waited for the elevator. be reflected on the journey of Milaap, which had emerged as 4 major crowdfunding platform far ‘Oredical treatments. Milsapolfered two ype Fuca pee a a do-it-yourself (D4V). Aa the nena echoed, eg eae support to the patients/ relatives in designing and disseminating relevant information in the supported campaigns, DIY campaigns, an the ather hand, were completely driven by the patients/ families themselves. with Milaap's role restricted to offering the jplatiorm and assurance ta donors through beneficiaries and need verification As Milaap became increasingly popular, ‘Viswanathan contemplated the challenges of achieving. balance between doing goed and doing well. Though incorporates as a private limited company, Milaap was conceptualised as a social enterprise, where social pursuit was as important, if nat more so, as financial profitability. ‘Today's meeting, was crucial for the future of the company as the top management was going: to discuss a key issue. ‘Which type ef sereace should be priors”. The company had lo chem one of the business processes cut of the tere mentioned above (Le, supported campaigns of DIY) and concentrate sts effort andl use its limited resources to scake both profitably and sustainably in the Furure ‘Health expenditure as 4 cause af poverty. Expersive medical ueadentals are one of the biggest reasons for personal bankruptcies. It is ‘estimated that shout &(7E af the population are pushed to poverty because of expenses related to medical treatments According to estimates, about 3 milion citizens in india were forced into, poverty in 2011-12 due to medical expenses’. The number is estimated to have grown tn 55. anullion annually by 2019. ln a country where health inswrance penetration is extremely low’, the [papubetion depends on out-of-pocket (OOP) expenses to meet healthcare expenses. ere only sioeS07 cla ees ea ‘none Swe ee 10.1186 /benjopen- 2017-01800, Dos ___TMaA/taniaa pationts that the conti d op bearing nearly 70% of health expenses*. This is despite the fact Gower eee oie governments have provided Pea to how. Income isnujs through various wellare selemes such as Rashtriya Swasthya Bima Yojana (RSBY)! from the central gowernment RSDY, which was initiated iin 2008, was criticised for inadequate coverage of various procedures Gra restrictions om total benefits, As a refult, the central government replaced RSBY with the tscheme in 2018, uncler which there was a provision of a broad health assurance bof called Pradhan Mantri Jan Acogya Yojana or PM.JAY. PMJAY was launched rembwi 2. 2018, by Ue Hon'ble Prime Minister of India, Shri Narendra Modi. It aime tor *verage of INK 500,000 (LISD 6,667 8) per family per year for secondary and. on Se re hospi and provides fo: 7 8 the scheme te all the needy households’. Further, as the package costs of each procedure were kept toa minimum, some private hospitals still charged the patients who ay the remaining amount as COP expendi i Sovering health expencliture, several gaps remain to be addressed. This is especially critical as the ‘costs of diagnosis and treatment is burgeoning across the world, Furthermore, a majority of the lowermiddle-class population who are also vulnerable to catastrophic health expenditure remains uncovered under PMJAY?, have to p Crowdfunding for medical expenditure —uWwW0@i_ » Rao, N. @O18, April 14), ‘Who ls Paying for India's Healthcase? The Wire. Wepfewire. alot paying fr inudias-healtheare ‘ Bima Yojana (n.d). Howe Jt Works, toad wwe rsby gov infhow works heen, eae eerie c « eaten (nud). About Pradhan Manin Jan Avrogya Yojana (PM-JAY), itp / panjay.gov.in/abaut/ pony F ’ ys aaa 2) Fe dea Bharat Cards, Foe ica oe Sees uP. -thewire inf health/ ay ushman-bhatat-uttar-pradesl -prnjay-mabeba, rong BON July, ieee Bharat, Poor Patents Are Not Going Cashiteas but With Leu Cesh, The Wire, ttpsif / science thewire in/ health al-prjay-scheme-Lealth-insurunce-packages-cashh Kumar, R. (2019, September 23). Nol covered under Ayushina: Bharnt-PAIJAY? Fou midlie class can ape to bemefit too ~ Explained, Finacial Expsesa, hitya/fwvrvfinancaler press com Westyls/ealh fovectoenn thartectore: ‘benalits-for-poor-midde-class-how-ab-pavjay-beneeits-peaple-rt-covexed/ iriaasoy semi TIMA/1S0142 Crowdfunding platforms are becoming popular as they overcome distance related « hallenges. There are three fundamental properties of crowdfunding that help in reducing market frictions as. enumerated below. + Easier search; an online application allows the funders tosearch with ease and participate in the project of their choice * Less need for monitoring: as the channel allows small contributions and broad Participation, the downside risk and need for monitoring reduces * Information on what other funders have done: the toot provides the appartunity for ‘everyone to see what others have done and comununicate with each other®, These properties make crowdfunding an attractive channel for funding and fundraising. These platforms allow individuals to raise funds for their causes by charging a nominal fee for the service offered. They act as a trusted, intermediary for people to donate and make sure they reach the right/worthy cause. For instance, Milaap, a decade old -socia! enterprise has now berome a pioncer in developing person to person giving in India, Milaap™ Milaap is an online crowdfunding platform that enables anyone across India tu raise funds for healthcare, education, sports, disaster relief and other personal causes with great ease. Founded in 2010 by a team of young and passionate entrepreneurs, Milaap has pioneered the development of person to person giving in India™, Anoj Viswanathan, cofounder and president Milaap, who studied engineering at National University of Singapore, and Mayukh Choudhury, cofounder and CED, a Blech from [I T-Madras, met while working at a social enterprise selling solar lanterns in villages®, Milaap started operations at a ime when the internet was beginning, to change the way Indians shopped and travelled, The cofeunders wanted to see how that could be extended to lending and donating. "So, we showcased rural projects online, to connect therm to individuals across the world who could give microloans,” Viswanathan says. Thus, Milaap- began its journey as a platform that allows people to donate to Indian NGOs selected after due diligence. E Requests to expand the scope of Milaap beyond microloans first came during the Uttarakhand floods of 2013 when regular donors asked if the platform could be used for flood relief. What nudged the founders to pivot and focus an crowdfunding medical care was "Abhishek’s case", as they have come to call it. In 2015, a group of friends wanted to raise money for their friend's heart transplant quickly. “Here was a situation where the family was not poor, and the friends were tech-savvy. Within a week, they raised Rs 30lakh via Milaap- It made us re-examine fundraising," says Choudhury, 37. They wondered if the platform could be helpful in similar cases. The data they dug up on healthcare enhanced their resolve to double down Onemergency medical care. 9 Agrawal, A, Catalini, C., & Goldfarb, A. (2015). Crowd humdi ‘Geogiaphy, social nerworks, timing: Serer decison fowl of Ecos & Manager Stage ET ee cece ® batps://onilaapoeg/ : https: /{milaapocg/ about-us/overview © hhitps:/ /ecanomictimes indiatimes.com industry /hesltheare/biokeck/healthcare/how- us E row dfurvling-todel-to-raise-money for mofical-care/atticeshow/ M@207G3aarafromends Ts TIMA/tso145 wer eneurs became widely util 1 proj d micro-entreprencurs B a ie f rural projects an ehensive social network for pea tite Fash aaah Brae N Te oes causes, funding ti i nd " sat for va : : € died vend Though the platform allowed for ee daa Renner ineels aon medical needs, ' Wii ificant aspect over en for medical expenses emerged a5 a cement ae pre recreated then critica becoming the gato platform for funding e c ait ions i i donations for medicai ‘urrently, 80% of the funds raised are related to Mergencies, ently, fF dof —_—_—___ emergencies \¢ ‘culty in discovering the right Milaap addressed the many challenges of giving (such as ain cee Pan p's open- causes, trust deficit, and averall donor apathy), Sitting in a pee aes xaica giving Plan office in Bengalumu's JP Nagar, Viswanathan, 32, emphasised, "Gur gt Recta a9 everyclay behaviour ane Jacilitate the pracess using technology. We wan ee leeigehtedd anywhere can raise money for their medical expenditure anytime, and no ene sho treatment for lack of funds," : ee aap bling The smartphone revolution sped up Mila: Serowth, with the number of Milaap users dau! yeaz-on. me from 2018 to DOE, The aie penetration of mobile phones ‘has also increased the reach of the platform to tier 2cities and tormuacross India. Over 45% of campaigns on Milaap come from autside the seven biggest cities, and a similar Proportion of payments are made through mobile phones. Some danations are os small as INR 5 or INR 10, Asa result, Milaap Fapidly grew both in popularity and size — ty 2000, Milaap employed more than 80 people. As ‘of March 2021, the Platform had raised awarly INR 120 billion to Support around 290,000 causes, acting millions of lives across the country. The impact of Milaap was substantial as several Patients benefited from the crowdlunding Process that allowed them ta access costly treatment in private hospitals. The success stories also highlighted the combined pawer of offline and online. An example case was Mohammad Vasees, who ran a digital printing shap in Vellare. He hac Put Up posters in the shop about his infant Gaughter’s liver ailment and a payment gateway for donations that Milaap had set up. He says donations went directly to hospitals, Increasing the credibility af medical campaigns. Over the years, Milaap earned credibility prompting the donors tn return repeatedly to engage in Philanthropy, Mayank Jain, far example, a 40-year-old businessman from Gurgaon, retums to Milaap every few «lays to donate on behalf of his mother, Usha Jain, "E could see that the ruses the eerfied. Medical reports af the patient wert also available, A\ times, [have also spaken to the doctors involved’, says Jain, who Conates between INR 2.000 and INR 7,000, depending on the urgency of the cause. Milaap hes been appreciated for ite Plilanthropic work in several reports, It was one of the finalists for Economic Times' Social Entrepreneurship Award - 2016". It hav also reveived —————— fe dllaap tr). Chereseen. tps? /ilaan. ong foverview ET Buea re ge feo ee UTS Fw mS aig eps ating cifras Boonomie Times. hifps:// indiatimes: mh vaaage t/Sartups/ebatartep-avvacde2016-how-agunlar while making-a-difference/articleshow/£389ur47 st me MMA /IS014> Es appreciation for being instrumental in saving lives 1, [ts support during appreciated as India's Selfless heroes!”, i pandemic was also Business Model of Milaap scial goad usually depend upon donor funding. Some ustainability while attempting to achieve social goals. Such tions ar socia esterprises, attempt to balance financial bitity with the averarching organisational mission. This dual purpose of doing, good doing well is critical for n organisations, As most founders administrators of non- profits lack the proper training or background pertaining to managing organisations and financial acumen, the ‘often an imbalance in retaining, steady funds while upholding, the mission of the organisation"*. However, the founding team in Milaap had the expertise in bath technical as well as managerial competencies, Therelare, thaugh Milaap was.a social veriture, the founders designed the offerings so as to onsure financial sustainability af the organisation. hat attempt to. ack 1s pursue inane cations, called hybrid organi Two different types of campaigns Milaap provides two types of campaigns: Do-it-Yourself (DIY) and Supported Campaigns (SC). DIY: In this model, the fundraiser manages the entire campaign. The fundraiser needs to write the story of the campaign, promotes it and raises funds. This information is shared with donors. on the Milaap platfarm and within the person s internal network, People wha wish to donate can and above. At the end af the carmpaign, 5% of the total collection donate in any range from INR 5 : of the donor is deducted as a service fee by Milaap and the rest ts transferred to the fundraisers’ bank account SC: Realising that most users need assistance to reach out to a larger audience, network and professional help ta write and upload convincing and poignant stories and pictures, Milaap launched its Supported Campaigns Product. The fundraiser gets professional help from story writers and photographers to build a donation profile in this product, The team visits the patient and fundraiser and provides adequate sapport to build convincing material for crowdfunding. The typical flow of these campaigns is depicted in the following flowchart. Milaap is directly involved in the supported campaigns. Milaap assists the client opting for the supported campaigns to design and set up the campaign. In retum, Milaap charges 15% service fee for assisting in the campaign. © The New Indian Express (2029, Navember 28), Crowfiecting plaiform saves yume life. itps,/ fy newindiamexpress.com jcilies/kochi/ AM /nov /28/ermwdfundiny,-platkorm-saves-yourg-life- (2228931 btm) 1 Discovery Chanmel India (2020, November 4). iihurat Ke Mahuceer | incha's Selfiec: Marces, YouTube. ‘watch?y=bYS Bake H'M, Qt), The omelet she of ony onions -hipa,/ fooreacake/downlead, pdf) 7284124 pall aT bof —_——<$_——— ‘The process occurs 08 follows: an initial sereening of bath types of campaigners, They am undertakes.an initial screening ol puma: » The onboarding te them through the process of setting up connect with the respective campaigners to guide a campaign. ‘ a «Inthe case of SC, one team member visits the hospital to ve rify the identity, diagn 1 facts, This typically costs around INR 3000/- per visit per campaign. pported campaigns. scertain the options for and med = Milaap also assigns a dedicated relationship manager (RM) for th * The RM coordinates with the hospital and the doctor in charge to treatment available, costs of the procedure, the prognasis and other related information. The RM touch with the campaigner, social media team, hospital and doctor throughout the campaign and also consults with the respective stakeholder to make the campaign successful. + While the RM takes care of the coordination work, the creative work required for SC is autsourced, Each SC entails a detailed assessment of the patient's socio-economic and health status, and a story is built up to kindle the philanthropic side of the donors. rele and video footage are supplemented to make the story authentic and appealing to the donors. The outscurcin| é ee 8 agency charges about INR 30,000/- per + The media relations team then circulates the o forms 4 tories on appropriate social media platf passer fortes ‘These social media campaigns are supported iar ataea penditure to enhance the visibility of the i relevant audiences, Details these expenditure overheads are provided in kB nt . The CEO also shared thal the sx pported ca w predetermined goal amount than DIY arpa eee ene pea ae smount is reached, the money is still given to the campaign organisers to meet mele eee One of the issues in raising money for medical treatments is fake or Spurious waigns the fundraiser participates for personal financial gain. While itis Pole ke gave a sa without an illness, to start a campaign in the DIy mode, the same is impossible in the rah career The supported campaign involves aclose connection with the patient and the hospital, such ag a visit to the hospital, talking to the patients and the concerned doctors, examinit sand sharing clinical documents etc., which minimizes the chances of fraud, However, Feagh theoretically posstble, frauds in DIY campaigns are also rare. According to. Viswanathan terestingly, the crowd itself screens out fraudulent campaigns. As the fundraising: process reaches near and lear ones and the broader social circle, some of them will identify that the campaign is fraud, anc we come to know. I would say, the fraud campaigns would be less than 9.005 % in DIY alsa. And they are not possible in the supported campaigns.” ‘BI Gamalgrs, Fundraiser Creates 3 | Corpaign, | Mexia fies 1 _AlmageesVideos) ae i — | ‘Share it wity his, | EE | hetworle wach the goal or auomatically costa He can clas the | SEs atthe end dsio | ted the committee room, he reali sources had evolved it type of campaign over the ‘Other. That would be the major agenda for discussion today — whether to nriorit: campaign aver another and, iy wondered mene IIMA/ Ispige Sumnonms Conmaions Fundraisos Creates 9 | Campaign Seay Mong Chects tha Eholbiity of The ‘Samp=I9N for Support h Ho Vos: yg Ma Writes a Slory with) tora flex Easloce} ‘nap Shame the car pangr a Seaton on suet red rumetoi ‘He cin close the | ‘Seryraign ence bn each the goal ort Iydoses | ste end dae x TMa/isouz Exhibit Exhibit 1 A: Number of Subscriptions Mii Do. Yourself Supaarted Campsic7s | Toi 12,008 | 17,166 | 24,547 Exhibit 1 G: Total numbor of successful campaigns = | 207 | ¢5a0776| ease | © 18.20,438 | 20.22.500 | | Gust af Retationship Manage ‘On boarding team cost par campaign (Ver fication and Appr 9,000 (fF St) and Soo Cunscurced- Fie cost for phelography and viry witng 20,000 Network and Socal Vedia Promntions

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