Loans and cards marketplace Paisabazaar has received an infusion of Rs 200 crore from its parent company EtechAces Marketing and Consulting Private Limited. The platform will use the fresh funds to improve consumer experience through technology expand Paisabazaar’s reach further, it said in a statement.
Naveen Kukreja , CEO & Co-founder of Paisabazaar added in a statement the company will use the fresh capital to invest further in product and brand initiatives. “Another big focus area for us this year would be building new technologies and using machine learning and AI to sharpen consumer experience,” he added.
Paisabazaar claims to have users from about 750 cities and towns every month, and said that it disburses loans worth Rs 4500 core annually and issues 2.5 lakh Credit Cards. It added it targets to hit an annualized loan disbursal amount of Rs. 6000 crore for March 2018. Paisabazaar will also scale it savings and mutual funds lines further. Kukreja said that the platform is at around 2% of the total unsecured lending market, and it aims to reach 10% of this market in next four years.
The platform was started as sister concern of Policybazaar in August 2014, and since then it has tripled its business every year, the company claims in a statement.
Gurgaon-based eTechAces Marketing and Consulting, which owns both Paisabazaar, as well as online policy aggregator PolicyBazaar, had raised $75 million funding from Wellington Management, private equity firm True Northland, IDG Ventures India, and its existing investors, in October 2017.
There is a growing list of fintech startups in the lending, payments and personal finance spaces. Paisabazaar competes with the likes of BankBazaar, Lendingkart, LoanMeet, CreditMate, Loantap, Capital Float, FinREQ- to name a few.
Note that most of these fintech companies are regulated by the Reserve Bank of India (RBI) as an NBFC. The RBI said that these companies will act as only as an online intermediary and not raise deposits. They will not be permitted to lend from its own books and will only act as a facilitator between different parties. Loans taken by a borrower at any point of time, across all P2P platforms, will be capped at Rs 10,00,000. Read more here.