Financial marketplace Paisabazaar is disbursing loans worth about Rs 300 crore a month, co-founder and chief executive officer Naveen Kukreja told Shritama Bose. The platform expects to clock nine million visitors per month by March 2018, he added. Edited excerpts:
How has business been for Paisabazaar so far in FY18?
As of December 2016, we’ve become the largest marketplace in the banking products space, which is currently being led by the lending products. But we are venturing into other products, like savings, mutual funds and are starting fixed deposits now. In 2016-17, we grew at about 125% and our growth estimate for this year is similar in terms of the annual growth rate, which means we grew at about 8-9% every month. From a numbers perspective, we now get approximately five million visits on our site every month. This is growing at the rate of about 12% a month. So we expect to reach around nine million visits per month by March 2018. Of these, about one million visitors are what we call ‘users’. This means they are coming for a specific product, they are sharing their details and so on. We now do approximately Rs 300 crore of disbursals every month across both unsecured and secured. Of that, about Rs 200-210 crore is unsecured and about Rs 95 crore is secured. In terms of other large products, we will have about 90,000 credit card applications with various partners. We have opened approximately 16,000 new savings accounts for the partners we work with.
How many partners are you working with?
We are working with 60-plus partners across banks, NBFCs (non-banking financial companies) and mutual funds. We work with almost all the private players and a couple of large public-sector players.
Which are the most popular credit products?
In terms of size, personal loans and credit cards, both of which are unsecured lending products, are the most popular. We do about Rs 200 crore in personal loans every month. This month, we are doing about 18,000-19,000 credit card applications. It’s now closely followed by savings accounts and home loans.
What is your pricing model for the financial institutions?
But, for a product like personal loans, our fee would typically be 1.5-2% of the loan amount. When a bank acquires new customers, their acquisition cost through the offline distribution model would work out to 3.5-4%. Through digital platforms, including our fees and any other costs they have for fulfilment, the cost has come down a little bit. For credit cards, we get anywhere between Rs 2,000-2,500 per credit card acquired. In home loans, the typical cost is about 0.5% as the ticket sizes are larger.
What are delinquencies like for loans originated through your platform?
We do not get the exact numbers from the institutions, but they tell us that customers acquired through digital channels — that is, us and their own digital platforms — are better in terms of delinquencies than others. In personal loans, it’s very much sub-1%. That so far has been attributed to the fact that there is a better check during the process and the quality of the data is much better.