We are due to launch our Startup in FinTech space. it is SME/ MSME sector focused Credit/ Lending marketplace that connects businesses looking to borrow with Banks/ NBFCs. We are planning commercial launch by October 2017. Initially it will be Unsecured business loans which will expand to invoice discounting, other secured business loans and personal loans in due course.
India has over 50mn+ registered enterprises of which about 92% do not have access to adequate credit. The total SME/ MSME Funding Gap across the sector is about $3Tn. Unit economics (in branch and spoke model) does not favor traditional institution penetration in this segment. Lack of distributor/ trade credit facilities further widens the demand for our services. One of the other main reasons is absence of reliable credit methodology to assess these unfunded or underfunded customers.
Thankfully, things are becoming clearer & better now for the sector with rapidly increasing digital footprints in the country due to some sincere effort of the previous as well as current Indian governments towards digital India and pushing India towards single identity- Aadhar card.
With our proprietary credit model we have developed capability to assess SME/ MSME customers who otherwise don’t have any credit history or poor credit history with not much fault of theirs. Our credit methodology is capable of assessing such customer’s willingness to pay or default intent. We do keep track of borrowers from the time loan is disbursed to the time loan tenure is finished. On best effort basis we ensure lender and borrowers remain keep their repayment honesty.
By cutting out the complexity of directly dealing with banks, you can get an affordable loan for your business in shortest possible time. We will guide & help SME/ MSME customers in getting their working capital gap funded through our lending marketplace through single or multiple Banks/ NBFCs. We combine the best in class technology experience with credit underwriting & data analytics capabilities to create a brand new investment asset class. With our understanding we also help borrowers to improve credit score by way of financial/ credit literacy education.
- Online eKYC (PAN & Aadhar),
- Financial Underwriting: Proprietary risk assessment strategy and Credit Scorecards that are hosted on scientific data-driven methodology.
• Basic credit underwriting basis standard credit reports such as CIBIL, Equifax, Experian, etc.
• Cash flow analysis: Real-time Bank statement analysis and Balance sheet/ P&L analysis. Includes automated financial ratio analysis,
- For pvt ltd., ltd., public ltd. Companies don’t need to upload data. We pull all the data from MCA portal.
- Digital verification of residence/ income/ business,
- Digital footprint analysis: We sketch borrower persona basis publicly available digital footprints. Ongoing & almost real-time digital footprint collection/ analysis keeps tracking the borrower and gives early warning signals to both Bank/ NBFC and borrower. Goal is to ensure low delinquencies.
- Lender’s dashboards: Banks/ NBFCs can login with their respective login ID/ passwords and can briefly see the system shortlisted/ diverted borrowers fitting into their lending policies/ products. They can get detailed credit reports into their mailbox once they shortlist the borrowers on their dashboards.
- Mobile based underwriting to assess borrower’s intent to pay.
- Online psychometric testing to assess borrower’s intent to pay. This would especially helpful incase of Non-metro or smaller cities where small borrowers don’t have a credit history.
- e-disbursement process: Disbursement agreement signing through digital sign or Aadhar eSign.
- eNACH for repayments,
- Seamless integration: We offer seamless integration with Banks/ NBFCs and they can create & send customized loan solutions for borrowers.
Request guidence on how to take this fwd for funding. And also if either of can refer VC or Angel investors for funding. We are looking at $10mn to scale this fast.
Vaibhav A Mishra