Harsh Pokharna - Credit Recording and Collection Was a Huge Problem for Unorganised Retailers Who Form 90% Of the Retail Market in India (Co-founder & CEO, OkCredit, Series B Company)

OkCredit has already seen a huge adoption and we are proud to be the innovators in a space where larger tech companies haven’t bothered to build for micro businesses. We were the first to prove that SMBs could be acquired for using an app without deploying feet on the street.

Tell us about upbringing, background and journey.

I grew up in Udaipur and later in Jaipur in a very middle-class environment. But unlike a lot of middle-class parents, my parents were incredibly supportive and encouraged whatever I did. During my school and college days, I was an active participant in extracurricular competitions-dramatics, sports etc but my parents would never ask me to stop it for the sake of studies. This encouragement had a huge role to play in developing some of the life skills later- problem solving, handling teams and going after a goal.

I did my B.Tech from IIT Kanpur in mechanical engineering. It was there that I met my co-founders- Gaurav Kunwar and Aditya Prasad. Back then, startup wasn’t the first thing on our mind. Flipkart was starting to get popular around that time and a clutch of startups were cropping up. All this later on ignited our interest in building something that could solve a large enough problem. And once the startup bug hit, we couldn’t stay calm in our jobs. We fiddled with a few ideas which didn’t work out and later zeroed on OkCredit as credit recording and collection was a huge problem for unorganised retailers / retail SMBs who form 90% of the retail market in India.

2. When & how did you get clarity to start OkCredit and how did you start executing it?

The idea to build OkCredit came from a problem that we as customers faced while buying groceries on credit. We used to buy groceries from a nearby store and would settle at the end of the month. But whenever we would visit the store to settle the bill, the process was very painful. The shopkeeper would ask us to wait while he calculated all the purchases recorded on loose scraps of paper. Sometimes, the bill would be so high that we felt it was manipulated. We realised that it wasn’t just us, several customers were facing similar problems. We decided to solve it for ourselves and the storeowner first.

To begin with, we managed to convince the shop owner to track our payment through OkCredit. Initially, the owner had his own doubts and concerns which we helped in solving by spending time to generate reports daily so that he could verify with this ledger book. After a few days of trial, the owner soon added a few other customers.

The next step was to convert the existing accounting system into a format compatible with OkCredit. This happened after we sat down with the owner to add all his customers and their balances to OkCredit. There was no looking back for OkCredit after that, as the store instructed its employees to use the app for all transactions.

3. What have been your biggest challenges in the initial stages and how are they different now?

The biggest challenge in the adoption of digital tools including ours is trust and inertia. In the case of digital bookkeeping, merchants have been using registers traditionally and would not trust software when it comes to finances. However, by demonstrating the efficiency and convenience of our app, we have been able to attract a large number of merchants to our platform.

4. What is your view on implementing ESOP buybacks and liquidity programs in startups?

The purpose of having an ESOP programme is to boost employee morale and encourage them to perform better, as also to create a sense of ownership alongwith founders and investors. Traditionally, IPO was the only way companies looked at when it came to unlocking value for employees through ESOPs. However, things have been changing now and companies are open to alternate means and pre-IPO events to provide liquidity for the ESOP holders. It's a great move to reward employees and compensate them for their contributions over the years. These liquidity events also send a positive message about ESOPs to prospective employees. They underline a startup’s commitment to sharing growth and success of the company with its employees.

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5. When should one consider raising funds, what according to you is the right time?

This is an apt question for the times we are in. There are too many funds chasing deals and many times entrepreneurs tend to go with the flow, even if they don’t need it. For an early stage startup, it’s important that the PMF has been achieved before they start looking for funding. The startup should be at a stage where there’s a clear demand for your solution and given the funding fuel, it can leapfrog from its current stage.The entrepreneur also has to be ready to get into the venture capital framework, which means more accountability and learning from VC’s insights and expertise.

6. What does your typical day look like and how do you handle setbacks?


My work day usually begins with taking stock of growth and metrics with the team followed by other meetings. Weekdays are typically packed with meetings and the curse or blessing of Covid-19 is that you can’t leave the screen. Earlier, one used to sneak in a quick non-work chit-chat with teammates in the 5-10 minutes breather between the meetings but that’s hard to do now. However, I try to do some stretches or finish some pending house chore in the break between meetings.

Aside of that, I go for morning runs and have been practicing yoga, which has really helped me feel calm from inside. I have been a firm believer in focussing on things which are in your control and that helps me to avoid fussing over matters that are beyond my control. In addition to that, I have a good support system of family, friends and great co-founders who stand up for me in trying times and offer encouragement and motivation.

7. Which is your favourite book and why?

I loved Shoe Dog by Phil Knight. The Book is an account of Knight’s struggles and lessons in building Nike from a startup to a world-renowned shoe company. I especially loved the chapter where he talks about seeking a calling and not a career. And that’s so important. Rather than spending a lifetime working at a job you have only partial interest in, it’s so much fulfilling to work on something where your heart lies.

8. What are your future plans for yourself and your company?

For an entrepreneur, the dream is to see your product being adopted by masses. OkCredit has already seen a huge adoption and we are proud to be the innovators in a space where larger tech companies haven’t bothered to build for micro businesses. We were the first to prove that SMBs could be acquired for using an app without deploying feet on the street. As a company working to empower small businesses, we want to help them at every stage of their business cycle by helping them grow their profits, by going online and integrating with the growing digital economy. We are working on solving some more problems for these business users and I will be happy to share more about them once we ship these to our users and they get delighted by our innovative solutions.