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Tuesday, October 3, 2023

Poonawalla Fincorp enters Digital Consumption Loans Business

Poonawalla Fincorp Limited (Formerly Magma Fincorp Limited), has entered the digital consumption loans space through a tie up with KrazyBee. Under this partnership, Poonawalla Fincorp will offer small ticket personal loans to individuals. Poonawalla Fincorp focuses on consumer and small business finance as a part of its stated strategy. 

This partnership is a step towards building strong partnerships with partners who have demonstrated distribution at scale, risk management capabilities along with their technology prowess. The partnership provides complete end to end digital consumer loans across the country. The credit underwriting for these loans is done through a scorecard which enables right customer selection at scale, while the complete digital process helps democratize the process of taking a loan. The partnership has seen a lot of traction within a month of its launch and the company intends to do more than 1000 crores of disbursement under this partnership in the current financial year.

KrazyBee Services Private Limited is a non-deposit taking Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India. KrazyBee along with KreditBee which is its technology platform and India’s largest consumption-based personal loan platform, commands more than 20% market share of NBFC – Fintech disbursement in India. 

Speaking on this tie-up, CA Abhay Bhutada, Managing Director, Poonawalla Fincorp said, “We are glad to partner with KrazyBee for new business opportunities and connecting with prospective customers through KreditBee’s digital platform. We are a digital-first, technology-led lender, and this partnership with KrazyBee is a natural fit to our business strategy. The partnership brings together two lenders who are obsessed with customer satisfaction and want to offer the best of customer experience to all their customers by leveraging technology.” 

Mr. Madhusudan E, CEO, KrazyBee commented, “Our technology strength empowers our partners to provide seamless disbursement services. Partnering with a Digital first partner like Poonawalla Fincorp helps us offer a wider range of products and services to our customers and also enables us to meet the ever-growing demand for digitally enabled loans.” 

KreditBee and KrazyBee are supported by strong equity investors such as Premji Invest, ICICI Bank and Mirae Asset and has also raised debt from multiple partners such as HSBC, Bank of Baroda & Kotak Mahindra. professionals, business loans, SME LAP, affordable home loans and general insurance. 

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