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  1. We plan to take our network of lenders to over 100 by FY17 end: Manavjeet Singh

We plan to take our network of lenders to over 100 by FY17 end: Manavjeet Singh

Rubique, an online domestic marketplace for loans, has partnered with 54 financial institutions to offer loans on their behalf on its website.

By: | Updated: June 2, 2016 8:12 AM

Rubique, an online domestic marketplace for loans, has partnered with 54 financial institutions to offer loans on their behalf on its website. The website has an embedded algorithm which helps customers get loans based on their needs and credit scores. The company, which has helped disburse loans worth over Rs 320 crore in the one year it has been live, is looking to take its network of lenders to over 100 by the end of the current financial year, Manavjeet Singh, chief executive officer at Rubique, told Pranay Lakshminarasimhan.

Can you throw some light on what kind of demand you have seen for your services in the last one year?

We have been live for around a year now and have received around 30,000 applications over this time. We have disbursed over Rs 320 crore of loans and set up over 8,000 credit cards. In terms of traffic for the website, we have over 32,000 unique user accounts. Currently, the split between disbursals to retail customers and customers from the small and medium enterprises segment is 55%-45% in favour of SMEs.

What was the average ticket-size for these loans and how much are you making behind each loan approved through your website?

Typically, we have seen personal loans with an average ticket size of around Rs 3 lakh. The ticket-size for home loans would be around Rs 50 lakh. The average ticket-size for loans given to SMEs would be around Rs 75 lakh. The commission we make behind each loan varies with the kind of loan. On home loans, we make around 1%, on loan against property we make around 1.5% and on personal loans it can be as high as 3%.

Rubique, an online domestic marketplace for loans, has partnered with 54 financial institutions to offer loans on their behalf on its website. The website has an embedded algorithm which helps customers get loans based on their needs and credit scores. The company, which has helped disburse loans worth over Rs 320 crore in the one year it has been live, is looking to take its network of lenders to over 100 by the end of the current financial year, Manavjeet Singh, chief executive officer at Rubique, told Pranay Lakshminarasimhan.

What kind of profitability are you seeing?

So, as I said, we are currently in expansion mode. We are not turning in a profit as yet; our loss last year was around Rs 4.7 crore. But we are positive on a unit economic basis. By that I mean we are able to cover our cost of acquiring a customer, which is currently around Rs 1,000- Rs 1,200 per customer. And I think that is what is important. We can always scale up as long as we are achieving that.

Can you elaborate on your expansion plans?

We are primarily expanding our technology. Currently we have around 75 employees working for us and we are now adding people in technology and we recently set up our tech centre in Bangalore. Plus, we are expanding the number of cities we are present in. Currently we are present in six cities and we definitely want to increase our geographical presence. We have set ourselves a target of 1.5 lakh application for this fiscal year.

Lastly, what would be your funding requirements? Are you planning to raise funds in the near future?

Yes. In fact, in the last couple of months we have seen a lot of inbound interest. We have already shortlisted our investment banker because we intend to go through with this soon. We have raised $3 million so far from Kalaari Capital and we would look to raise another $10 million now in the second phase.

So, as I said, we are currently in expansion mode. We are not turning in a profit as yet; our loss last year was around Rs 4.7 crore. But we are positive on a unit economic basis. By that I mean we are able to cover our cost of acquiring a customer, which is currently around Rs 1,000- Rs 1,200 per customer. And I think that is what is important. We can always scale up as long as we are achieving that.

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