One97 Communications that owns the payments and financial services brand Paytm announced a partnership with Shriram Finance to offer financial services to its users including loan products Through this partnership, Shriram Finance’s products will be made available on Paytm’s platform digitally.
With this partnership, the two brands aim to augment digital financial services including distribution of credit. Powered by Paytm’s fintech leadership as a loan service provider (LSP) focussed on compliance and quality of loans, this partnership will integrate Shriram Finance wide geographical presence across the country especially rural areas.
Merchants on the Paytm network will now get a chance to avail loans from Shriram Finance and then it will be extended to consumers loans.
Speaking on the alliance, Umesh Revankar, Executive Vice Chairman – Shriram Finance said, “India is witnessing high growth in retail credit demand, it is only likely to increase with greater participation from rural and semi-urban India. A lot of this demand will come from digitally literate, young generation brought up in mobile telephone proliferation era and those having comfort in having all their transactions through handheld devices.”
Vijay Shekhar Sharma, Founder and CEO, Paytm added, “Our commitment to expand credit distribution gets further boost with our new strategic partner Shriram Finance. We are happy that together we will be able to create credit offerings to serve small merchant partners and entrepreneurs of India.”
Bhavesh Gupta, President and COO, Paytm further said, “With Shriram Finance’s strong presence, especially in Southern India, we aim to boost access to credit by empowering users across the country with simplified loans distribution.”
With Assets under management worth Rs 1,85,683 crore, 2,922 branches and employee strength of 64,052, Shriram Finance caters to 7 million customers across India. Paytm currently has a vast merchant network of more than 34 million and average monthly transacting users (MTU) of 92 million.