How Serv’d plans to make the domestic helpers go cashless

With technology and mobile penetration reaching the bottom of the pyramid, Serv’d feels that its the right time to bring this unorganized sector in the formal economy
40-year old domestic helper Mira works in 7 houses and earns close to Rs 30,000 monthly but has no insurance or accounted savings. So, taking loans at an exponentially high interest rate during crisis is something she has learnt to live with while majority of her earnings are spent in clearing the debts.

This is nothing new among the unorganized domestic workers or the daily wage earners. This has been their struggle throughout as for many; banks still remain an alien territory.

Seeing this and understanding the haplessness these people face at the time of crisis, Jatin Agarwal and co-founder Tarun Sharma launched Serv’d. The mobile app has been built over a span of one year and was launched last month right after demonetisation.

“This sector comprises around 10 million people. They are rightly positioned for us to take on because over the years they have put together their aspirations. Today, they see everyone using a smartphone and even if they do not understand its benefits, they understand its significance,” says Jatin Agarwal.

Way it works

With technology and mobile penetration reaching the bottom of the pyramid, Serv’d feels that its the right time to bring this unorganized sector in the formal economy and make it easier for them to avail all their rightful available financial services.

Through technology, the company is drawing up contracts between domestic staff which can include maids, cooks, drivers, gardeners etc and their employers, specifying remuneration, leave policy, perks and bonuses.

Now easing it for the both the parties that is the service providers and consumers, the Android app can track payments, advances, leave, etc. Additionally, the app also has an attendance mapping system as well as a ratings and review system where both worker and employer can rate each other which becomes a win-win situation for both the parties.

Given that all such workers do not have a smartphone, all functional touchpoints are replicated via a call centre, which works on a missed call.
The company also plans to partner with third parties like insurance firms and banks and provide the facilities to these workers.
The app is currently available in English, Hindi and Marathi and will soon add other regional languages.

Notably, the app will sign in workers who have an Aadhar card and based on one’s earnings, a credit pattern will be created easing the plight of them asking loans from the ‘service consumers’.

The company has till now received over 100 contracts in Pune and will be running a pilot there for another four months. Explaining that the process might be time taking, Jatin says that a dedicated activation team has been visiting the slums and explaining to the workers, the benefits and of Serv’d.

Then, the company plans to replicate the model in Mumbai, Bengaluru and other cities.

Post-demonetisation and with cash crunch, this might be a rescue for the workers. With time and adaptability among the workers, such moves may streamline and bring in the much needed financial stability for this unorganized sector. “Without the bottom of the pyramid being a part of the formal economy, we will definitely fail to strive for a cashless economy,” says Jatin.


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