Kreditech, German Online Lender Plans to Widen its Indian Market with its Registered NBFC
Kreditech, a German based online lender announced its strategy to expand rapidly in Indian market. Kreditech aims to expand in Indian market with the experience from the European markets such as Poland, Russia and Spain. With an objective to achieve €1 billion revenue by 2025, the expansion in Indian market will be crucial as the Indian consumer lending segment is expected to reach around €1 trillion in the next five years.
Commenting on this, David Chan, CEO, Kreditech, says, “We are very excited about the Indian market. It is a dynamic and fast developing economy. We have been successful in finding our niche and have established the right proof of concept. Now it's time to scale up while a key target customer segment remains unaddressed by the competition”.
Established in 2017, Kreditech Indian Financial services received the first of its kind digital license in 2018 to operate as a NBFC and started its business in February 2019. Targeting the Indian prime consumer market with a focus on POS Loans and Personal Loans Direct to customer, Kreditech India Financial Services started its business in 2019. However, the mother company plans to utilize the €20 million funds from a recent equity capital to grow the Indian business.
Ashish Kohli, MD & CEO, Kreditech India, states, “The cornerstone of Kreditech's operations is a unique, differentiated; end-to-end fully automated underwriting process that combines alternative data sources with machine learning. This process enables a seamless customer experience based on a dynamic application process, near-instant credit risk assessment and smart, personalized offerings. We strongly believe these capabilities position us perfectly to be the platform of choice for tech based lending to individuals in India. Our ambition is to bridge the credit gap for the banked and underbanked population, as we focus on servicing the near prime customer segment”.
By 2020, the company plans to reach a total of €7.5 million in credit issuance and to triple its current portfolio and with over 80 employees on board. Kreditech India has serviced over 1200 customers mainly through its partnerships with its aggregators & reputed channel partners. Kreditech also plans to partner with e-commerce, aggregators of multiple merchants, direct deals with manufacturers are also a huge part of the strategy in the Indian market.
Headquartered in Hamburg, Kreditech provides access to better credit and digital banking services. Offerings such as consumer loans, digital wallet and personal finance manager (which is designed to help customers manage their credit score and plan their spending), Kreditech also offers a ‘credit as a service’ model which enables partners to integrate its credit products as payment method.
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