Happy to share that Microfinance.AI has closed a pre-seed round of funding. You can read more through the below link.
VCCircle: https://lnkd.in/gdbm7hZ5
BWDisrupt: https://lnkd.in/gfMkw9CF
Helloentrepreneurs: https://lnkd.in/gpD4G8Yp
Entrepreneur India: https://lnkd.in/gCAxgQk5
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In the micro-lending space, repayments play a huge role in determining the profitability and feasibility of the business model. Traditional repayment models such as agent visits add up to a huge chunk of operation cost thereby bringing down the profitability. Microlending companies deal with a unique problem of thinly spread-out borrower base, low-ticket clients. Thus, reliance on traditional repayment models is no longer considered feasible for scaling up its operations.
More than 12% of the Microfinance customers have not repaid during the financial year 2020 which is projected to increase. To tackle this problem of inefficient repayment model and to curb the delinquency rate, process digitization is needed.
Digitizing the repayment model and synergising UPI
Through digitizing the current traditional model, the micro-lending companies can allow the borrowers to repay the due, send reminders, add in late payments remotely. The repayment of the loans now only requires a mobile phone with internet in the customer part. The cost of agent visits, Inefficiencies and multiple touchpoints in repayment can be overcome through this digitization while also making the customer experience better.
The UPI could play a very crucial role in digitizing the repayment in the MFI space. With UPI hitting 100 USD transaction value this October, the scale of its use adds an advantage to micro-lending companies who are integrating it. Recently Satin Creditcare Network has integrated the UPI Autopay option to its customers which make EMI monthly repayments more seamless. The cost-effectiveness, widespread use and seamless experience makes UPI the best suitable option in digitizing the repayment in micro-lending space.
We at microfinace.ai work towards making local-language preferred users' experience seamless and effortless through digital-platform. We have integrated innovative UPI-led repayment specifically designed for micro-lending clients with a systemic nudge for timely repayment. Reach out to us to launch top-up loans and similar products.
To learn more about this,
This Weeks News
India: Technology-led NBFC Avanti Finance raises $15m in Series A extension
Technology-led non-banking finance company (NBFC) Avanti Finance on Thursday said it has raised $ 15 million (around ₹111 crore) as part of its Series A extended round from existing investors Oikocredit, Nomura, The Bill & Melinda Gates Foundation, and Dr. K R Shroff Foundation.
With this round, Avanti has concluded its Series A fundraise, raising a total of $41 million in a mix of equity and debt. According to Avanti, the funds will be used to strengthen its deep tech platform, bolster data science, enhance product suite and expand the team to further credit operations.
Spandana Sphoorty founder Padmaja Reddy to float new NBFC with former colleagues
Padmaja Reddy, founder and former head of Spandana Sphoorty Financial, is planning to float a new non-banking finance company (NBFC) teaming up with a few former senior management colleagues. Reddy recently resigned from Spandana following major differences with the Board.
The new company was incorporated around three to four days ago and the promoters will soon apply to the Reserve Bank of India (RBI) for a licence, according to two people familiar with the development.
Cred founder Kunal Shah’s firm acquires Parfait for wider fintech play
Kunal Shah, a serial entrepreneur and founder of fintech firm Cred, has acquired a non-banking finance company through an entity he has floated personally, sources aware of the matter said. Shah, through Newtap Technologies Pvt. Ltd., has acquired Parfait Finance & Investment, looking at a wider fintech play for Cred with lending.
The Reserve Bank of India (RBI) has approved the acquisition.
Though not a direct acquisition, buying out a finance company signals that the fintech startup is keen to increase its footprint in the financial services space. Cred’s lending product had a loan book of Rs 2,000 crore in August with NPA ratio of less than 1%. It already offers loans to approved users but that is through a partnership with IDFC First Bank.
RBI supersedes Reliance Capital board, says firm to go for insolvency soon
The Reserve Bank of India (RBI) on Monday superseded the board of industrialist Anil Ambani-promoted Reliance Capital, a non-banking financial company (NBFC), owing to defaults and governance issues.It said the company would go for insolvency proceedings shortly.
The data with Bloomberg showed as of date, Reliance Capital had defaulted on Rs 8,3138.8 crore. The company had said in its December-quarter earnings last year that it had listed non-convertible debentures (NCD) of Rs 14,827 crore.
RBI puts corporate entry in banking sector on hold despite strong push by Centre
Despite strong push by the north block, the Reserve Bank of India (RBI) has not accepted a recommendation to allow industrial houses to float banks in the country, following the line of former RBI governor Raghuram Rajan and deputy governor Viral Acharya, who had sharply opposed the entry of large corporates into banking, at least for the time being.