The Indian financial sector is largely influencer-driven. Whenever, someone wants a loan, they go through an influencer, whether a chartered accountant or a financial advisor.
Having disbursed loans worth Rs 1,000 crore in FY17, loan marketplace Rubique recently launched a mobile app to ease access to its platform. The company is targeting a 250% rise in loan disbursements in FY18 and a 300% jump in revenues to over Rs 45 crore, managing director and chief executive officer Manav Jeet tells Shritama Bose. Excerpts:
Does the launch of your mobile app mean that you are shifting your focus to individual borrowers from SMEs?
From day one, we have maintained that our take on the opportunity in the financial space is not focused on retail or SME. The Indian financial sector is largely influencer-driven. Whenever, someone wants a loan, they go through an influencer, whether a chartered accountant or a financial advisor. Our thinking was that if we could empower the influencer in the ecosystem with technology, then they can more efficiently service that end consumer, be it retail or SME. So we are not differentiating in terms of retail or SME.
How much have you disbursed through your platform so far in FY18?
Last year, we did Rs 1,000 crore in disbursements, of which 60% was in the SME category and 40% in the retail category. This year, as a company, in the first four months (April-July), we did Rs 500 crore worth of disbursements and we have been clocking very healthy revenue. This month, we are touching around Rs 3 crore in revenue. We had been going at a monthly average of about Rs 2 crore in revenues so far. This year, we are targeting almost 250% growth over last year (in disbursements) and a healthy revenue growth. Last year, the revenue was Rs 15.5 crore. This year, we are targeting an almost 300% jump and we expect to cross `45 crore.
What is the mix of products in the disbursements you have made this year?
We have 11-odd product categories, including credit cards, personal loans, car loans and two-wheeler loans, which we have just introduced. We have term loans for SMEs and loans against property. In addition, we have recently received approval from IRDA (Insurance Regulatory and Development Authority) for selling insurance products. Credit cards is the fastest-growing category and we receive around 10,000 applications per month there. It is followed by personal loans, where the ticket size is around `4-5 lakh on an average. In SME loans, the ticket size is large and so the units are smaller.
How many institutions are lending through your platform?
We currently have tie-ups with more than 75 financial institutions and offer around 220 loan products. Will you continue to operate on the marketplace model or are there plans to become an NBFC (non-banking financial company) or switch to the hybrid model? We are very clear that we want to be a marketplace because there is a huge gap in terms of introducing borrowers to the right lenders. We will continue to work with this model.