Snapdeal is foraying into financial sector by buying a majority stake in RupeePower which is a digital financial products distribution platform for loans, credit cards and other personal finance products.
“Our aim is to create life changing experiences for our buyers and sellers and all our efforts at Snapdeal are in line with meeting this objective. Realizing the various difficulties that consumers face while deciding and purchasing financial products/services and the challenges that companies face whilst reaching out to the ‘right’ audience, we have brought RupeePower into our family, to help solve the distribution challenges of the financial services ecosystem and make it more inclusive. The same way Snapdeal has democratised retail in India, now we aspire to democratise access to credit.”
said Kunal Bahl, Co-Founder & CEO, Snapdeal in a blog.
The financial details of the deal have not been disclosed. Snapdeal said that along with RupeePower it plans to provide INR 6,000 crore in loans over the next two years. Founded in 2011, RupeePower has enabled INR 1,500 crores of credit disbursal through its platform in the current financial. The company is not a lender in itself and does not complete with its partner banks and NBFCs in the lending space.
“The share of digital origination of credit is poised to grow from today’s 7.5% to 40% over the next 4 years, in an INR 400,000 crore (USD 67bn) retail credit market growing at 20% annually. With this investment and by partnering with Snapdeal, we aim to become the #1 originator of financial products over the next couple of years. Our emphasis will be on scaling RupeePower into the top match-making platform between lenders and borrowers, providing consumers with the best targeted offers & a super-simplified loan process, while ensuring lower opex & smarter credit match for lenders.”
said Tejasvi Mohanram, Founder & CEO, RupeePower.
The marketplace will include a wide range of financial services like personal loans, educational loans, credit cards (co-brand – B2B & B2C), auto loans, home loans and extended warranties amongst others.