‘Money makes the world go round,’ but in India, it’s seems like technology is transforming how money moves. The fintech sector in the country is reshaping the landscape of lending by providing innovative solutions that bridge the gap left by traditional banking systems. With a focus on digitisation and data analytics, these companies offer a range of loan products, from small personal loans to larger credit lines, addressing the needs of a diverse customer base. It is believed that by streamlining application processes and utilising advanced algorithms, fintech firms are making credit more accessible and efficient, particularly for underserved segments. The lendingtech sector in India is anticipated to reach over $1 trillion in 2030, growing at a compound annual growth rate (CAGR) of 22% during 2022 and 2030, as per market research firm Statista. The overall fintech market is estimated to grow to about $2.1 trillion.
Olyv, formerly known as SmartCoin, claims to be one of the fastest-growing AI-led digital financial platforms in India. As per the media reports, the company recently reported a revenue of Rs 250 crore for FY24, reflecting a 76% increase in business volumes. Reportedly, it now serves 26 lakh monthly active users, a 80% growth from the previous fiscal year. In a conversation with BrandWagon Online, Rohit Garg, CEO and co-founder, Olyv (formerly SmartCoin), talks about company’s rebranding strategies, marketing plans, and product expansion, among other. (Edited Excerpts)
How did Olyv achieve profitability with minimal funding compared to larger players in the fintech sector, and what role did the recent rebranding from SmartCoin play in this success?
FY2024 was quite a milestone for us in multiple ways. On the ventures front, we were able to scale the business significantly. It allowed us to not only scale our disbursements and revenue but also achieve profitability on the platform, which is a significant achievement.
If we look at the entire fintech sector, while many non-lending tools are still struggling, the lending sector is seeing the more scaled-up players reaching profitability. What stands out for us is that we’ve managed to achieve profitability with minimal funding and at a lower scale compared to most players out there. This speaks volumes about how we’ve leveraged technology to build a more efficient engine.
Our overarching vision from the start was to build a credit-led digital financial platform for emerging India. While many companies focus on the affluent and mass affluent segments, we’ve concentrated on the emerging India or middle-market segment. Traditionally, this segment has been perceived as having lower incomes and smaller ticket sizes, which doesn’t align with what larger institutions typically target. This makes it challenging to create a sustainable, horizontal play in that space, but we’ve made good progress.
Now that our credit business is profitable, we’ve been piloting multiple non-lending products to serve our customers’ entire financial lives, including savings, insurance, and credit management. We’ve seen solid traction here as well, with our app reaching 2.5 to 3 million monthly active users. This aligns with our goal of expanding our offerings and building a multi-segment platform.
We also underwent a big rebranding exercise, changing our name from SmartCoin to Olyv. Overall, there were many significant developments, but it all ended on a positive note, and we’re building on that momentum.
What are the expectations and strategies for FY25?
We aim to further grow our business revenues and profit margins this year. Given the current macroeconomic backdrop, we’re mindful of regulatory measures that ensure growth aligns with customer protection and transparency principles. In line with this, we’re targeting a year-on-year growth rate of around 35-40%. This goal is ambitious yet achievable, considering the current macroeconomic environment.
Our strategy is holistic. Last year, our growth wasn’t driven by just one factor. Over the past seven years, we’ve learned that lending businesses, and financial services in general, are long-term plays. To build a strong franchise with lasting network effects, it’s crucial to focus on all pillars, such as continuously strengthening underwriting, investing in our collections stack, and diversifying acquisition channels. This prevents over-dependence on specific customer acquisition channels or partners.
This year, we plan to up our acquisition efforts by bringing more partners on board to create a stronger engine. On the liability side, we will continue to partner with more banks and NBFCs (Non-Banking Financial Companies) to further solidify our franchise. Additionally, we see significant room for growth in both our product offerings and platform capabilities, and we intend to continue focusing on these areas.
What is your marketing strategy after rebranding and what is split between different marketing channels?
With the whole rebranding initiative, there has been a significant focus on building the brand. In the first phase of our journey, we concentrated more on performance marketing rather than brand-building. The reason was simple that is, we wanted to be thorough with how we spent our money and test our thesis about the market potential.
Now, having gained conviction in the demand, our key focus is on establishing a strong brand presence. Last year, we took initial steps towards this by rebranding and bringing in TVF’s Naveen Kasturia as a brand ambassador, which has helped with brand recall. Moving forward, we plan to double down on our efforts, increasing our budgets and focus on brand-building. For instance, we recently participated in our first international cricket tournament during the World Cup, and we plan to engage in more pan-India events and touchpoints to deepen our brand presence.
On the performance marketing front, we’re focusing on both organic channels and diversifying our efforts beyond just digital platforms like Google and Facebook. We’re engaging with more channel partners and affiliates to spread our budget and efforts across different avenues. Additionally, we’re looking to increase our presence in online and print media.
How has influencer marketing played a role in your strategy?
Last year, we experimented with influencer marketing to understand what would resonate best with our audience. We explored different types of influencers—some focused on fintech, others on generic entertainment—to determine who would have better customer relatability. We also considered factors like age and experience to see what would work best for financial services.
The results were very positive. We saw a significant increase in organic traffic, customer engagement, and recall value. This year, we plan to build on that success and make influencer marketing a key part of our strategy. We’re already working on this and will be partnering with multiple influencers across various categories to enhance our reach.
What were the key factors behind rebranding, and how do you believe the new brand identity will impact your market presence?
There were several reasons behind our decision to rebrand. The biggest one was the significant growth and evolution we had undergone as a company. Initially, we started with a single, relatively small-ticket personal loan product, and that was our focus for the first several years. However, as we expanded, we introduced multiple lending and non-lending products, diversifying our offerings.
We also began catering to multiple customer segments, which added another layer of complexity. Additionally, we overhauled the entire app experience—everything from fonts and colours to user interaction has been transformed. Given these substantial changes, we felt it made sense to rebrand in a way that better reflected our expanded values and offerings.
The name ‘Olyv’ became a symbol for us, playing on the word ‘olive,’ which represents strength and friendliness. We wanted the app to be seen as a friendly tool that customers can rely on whenever they need it. Lastly, we realised that continuing to scale under the Smartcoin name might lead to confusion with cryptocurrency, which was another factor in our decision.
What are the key products, and how do they address the needs of diverse customer base?
We offer a diverse range of products across lending and non-lending sectors. On the lending side, we provide unsecured personal loans ranging from Rs 1,000 to Rs 5 lakh with various tenures, tailored to customer requirements and profiles through our app.
In the non-lending sector, we have introduced several products. One is a micro-saving product that allows users to save small amounts in digital gold. This was developed after recognising that many self-employed individuals in tier-2 cities were buying physical gold for savings, which is both expensive and inefficient. Our digital gold offering provides a more economical alternative.
Additionally, we offer a micro-insurance product enabling users to purchase insurance products of their choice through the app. We are also working on a credit health management tool to help users understand and manage their credit scores. This tool is especially relevant as India transitions from a saving to an investing economy, addressing the gap in credit management awareness among many users.
Can you provide insights into the demographic profile of your users? Specifically, what percentage of your users come from metro cities versus tier-1 and tier-2 cities, and what is the typical age range of your user base?
The majority of our customers come from tier-2 cities and below, with approximately 65-70% of our demand originating from tier-2, tier-3, and tier-4 areas. The remaining 30-35% comes from tier-1cities. We see significant opportunities in tier-2 and below because, while tier-1 cities are saturated with banks and large NBFCs, tier-2 and lower-tier areas have substantial unmet demand. These regions have growing pockets of capital and increasing smartphone usage, yet they often lack access to smooth and modern financial services.
Regarding age demographics, about 80% of our customers are between 25-30 years old, with the median age being around 28. This age group is typically at a stage where they are starting to take on financial responsibilities, such as purchasing a two-wheeler or home. Our goal is to be a continuous companion and advisor, guiding them through their financial journey as they navigate various life stages.