Credit and Finance for MSMEs: Non-banking financial company (NBFC) lender Ambit Finvest, part of the Ambit Group, on Thursday announced the acquisition of MSME business of digital lender SME Corner (trade name of Digikredit Finance, an RBI registered NBFC).
The transaction involves transfer of SMECorner’s book assets as well as the co-lending book and partnerships under the Business Transfer arrangement. The brand name SMEcorner has also been transferred under the agreement, said Samir Bhatia, Founder & CEO, Digikredit Finance.
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Besides assets, Ambit Finvest would also absorb 300 employees of SME Corner and their proprietary online platform, said the company’s statement.
The rationale for Ambit Finvest behind the acquisition was to strengthen its online lending and co-lending infrastructure for small and medium enterprises (SMEs) through SME Corner’s technology solutions.
“They have built a phenomenal proprietary technology from ground-up, entailing development efforts spanning four years. This will help accelerate our digital lending services and solutions. We will now be able to better enhance our origination footprint on the digital side,” said Sanjay Agarwal, CEO, Ambit Finvest.
Mumbai-based SME Corner has offered credit to 17,000-plus SME business owners till date and currently has an AUM of around Rs 450 crores. Other than MSME loans, it also offers loans against property, unsecured business loans and women entrepreneur loan.
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Speaking about the acquisition, Vikrant Narang, Deputy CEO, Ambit Finvest said, “Ambit Finvest will now truly have an omni-channel origination approach, straddling across physical and digital infrastructure. Given the evolution of the digital stack in India, NBFCs will have to invest in digital platforms to stay relevant and grow. This acquisition gives us a great head-start in that direction”.
Incorporated in 2006, Ambit Finvest is the NBFC arm of the financial advisory and capital provider company, Ambit. The NBFC company has an AUM of over Rs 1,800 crore and claims to have disbursed loans worth Rs 2,500 crore.