1. AION Capital,partners buy GE Capital’s commercial & loan biz

AION Capital,partners buy GE Capital’s commercial & loan biz

The information was disclosed here by the three partners, who, however, declined to disclose the valuation of their new venture.

By: | New Delhi | Published: September 1, 2016 9:21 PM
 There are sectors that are grossly underserved. The level of penetration in these areas has also been very poor so we think this is great time to reach them," Bhasin told reporters. (Reuters) There are sectors that are grossly underserved. The level of penetration in these areas has also been very poor so we think this is great time to reach them,” Bhasin told reporters. (Reuters)

Genpact Founder Pramod Bhasin alongwith former head of GE Commercial Finance Business Anil Chawla and AION Capital Partners today announced the closure of acquiring GE Capital’s commercial lending and leasing business in the country. The information was disclosed here by the three partners, who, however, declined to disclose the valuation of their new venture.

GE Capital’s commercial’s lending and leasing business has a net worth of about USD 360 million.
“We thought it was the best time, as GE was selling its business. India is currently poised for strong GDP growth. The need for finance in India will continue to rise. There are sectors that are grossly underserved. The level of penetration in these areas has also been very poor so we think this is great time to reach them,” Bhasin told reporters.

In March, GE Capital India had agreed to sell its financial services arm to a consortium led by AION Capital Partners and ex-GE Capital executives Bhasin and Chawla. The (new) company will use data analytics in a big way to reach to identify potential consumers, particularly for consumer loans and financing to small and medium enterprises, Bhasin said.

“The amount of data available nowadays…is tremendous, so you can use analytics to decide which is the next town you should go to and where the growth is, where you can decide who to target and call on as a customer…,” Bhasin said.

The new entity, which is yet to be named, is well placed in the financial space as GE Capital Commercial businesses have a rich legacy of financial products and services like in leasing, auto and health-care with a pan India presence.

“We will also use my prior experience at Genpact to build cutting edge, lean, digitised processes that can deliver highly efficient results at very cost effective levels. We are deeply familiar with these businesses having started them in 1993 from scratch,” Bhasin said.

The company will focus on consumer finance and small and medium enterprises as well as agriculture sector. It will also enter into tie-up arrangements with retailers across the country for consumer loan products.

With increased access to data through mobility, the company seeks to add new customers from tier III & IV cities. The company will go beyond tier 1 tier 2 cities and reach to tier 3 and 4 towns, would serve the agriculture sector over the time and would also like to expand into micro finance business.

“We want to expand across India. India is taking shape all over the country in many different ways and we think we must be part of that. Government initiatives like Aadhaar is are fantastic and Jan Dhan with 21 crore new bank accounts is incredible as to how many people it has brought into financial inclusion,” they said.

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