India’s eCommerce leader Snapdeal has entered the personal financial service industry. In an announcement made Tuesday (March 31), the firm revealed that it had acquired a majority stake in financial product distribution platform RupeePower, allowing Snapdeal to add personal finance services into its existing platform that already aids its sellers in securing capital.
The acquisition means Snapdeal customers can apply for loans directly on the site, reports said, while RupeePower will implement its technology to analyze borrower credit scores and match applicants with appropriate lenders on Snapdeal.
“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,” Snapdeal CEO and co-founder Kunal Bahl said in a prepared statement.
RupeePower has made an impact in the lending market that is nothing to scoff at. According to reports, the firm has already facilitated more than $240 million in loans. Snapdeal is reportedly looking to hike that number to $1 billion over the next two years.
According to RupeePower founder and CEO Tejasvi Mohanram, the market for digital credit orientation is on path to grow to 40 percent of the lending market, reaching $67 billion in value. “Our emphasis will be on scaling RupeePower into the top match-making platform between lenders and borrowers, providing consumers with the best targeted offers and a super-simplified loan process, while ensuring lower opex and smarter credit match for lenders,” he said.
Earlier this month, Snapdeal boasted the success of its Capital Assist service, which helps find lenders for sellers that do business through the platform. According to the company, it has already facilitated $8 million in loans for SMEs.