Paisabazaar, the financial product comparison and application portal, has raised a sum of close to Rs. 200 crore from EtechAces, its parent organization, which also operates Policybazaar, the aggregator for insurance solutions. The company will reportedly be using this money to boost its lending division and the amount will be increased to Rs. 1, 000 crore every month this year as compared to Rs. 360 crore per month in 2017.
Paisabazaar will also allocate a portion of this amount for building up its brand. It will be positioning itself as a one-stop platform for all sorts of financial solutions and products except for insurance which is available at Policybazaar, its sister organization. There will be investments across machine learning, data analytics and technology as well. The company helps in comparing products like personal loans, credit cards, home loans, gold and business loans and also mutual funds. There is a special Smartmatch feature which links visitors to the perfect financial service organization or provider via AI and data analytics based understanding of needs and requirements.
The company is betting big on market growth in terms of unsecured loans. The loan book should also grow more due to internet and smartphone penetration increasing rapidly and the entire KYC procedure being digitized on account of Aadhar. The company currently has just 2% of the total unsecured loan space and it is here that it wishes to reach at least 10% within the next 4-5 years. Consumer/unsecured loans are slated to witness higher growth on account of better credit performance overall. Consumer loans are already growing at 16.6% in India as per RBI statistics. This is leading to an increase in fintech organizations which are trying to link customers with financial service providers with the help of innovative technologies and this applies even in case of those with zero credit history. The approval rate also stands at approximately 35% in case of the consumer lending space which offers major opportunities for several players in the future.