Paytm acquires stake in online lending company CreditMate
New Delhi: Paytm said on Tuesday it had purchased an undisclosed stake in Urja Money Pvt. Ltd, which assesses the creditworthiness of people looking for loans to buy two-wheelers. Paytm will use Urja’s proprietary CreditMate technology to create a loan management system in collaboration with lending partners.
Mumbai-based Urja, incorporated in July 2016, has partnerships with banks and non-banks on the supply side and car dealerships on the demand side. The company raised $ 500,000 from India Quotient last November.
The latest investment is part of Paytm’s efforts to create consumer credit products, and a likely move toward offering long-term big-bill loans.
Last week, the company partnered with ICICI Bank Ltd to offer Paytm users interest-free loans of up to Rs 20,000 for up to 45 days. Paytm already offers working capital loans to merchants on its payment platform, a product it launched last year. All of these products are unsecured and use transaction data on Paytm to assess a borrower’s creditworthiness.
Paytm said CreditMate technology will help it provide loans to users with limited credit histories.
â€œWe believe that CreditMate will be a valuable and long-term partner in our efforts to respond to the unorganized sector to deliver inclusive financial services to the masses,â€ CFO Madhur Deora said in a statement.
Approximately 65% â€‹â€‹of CreditMate customers are already Paytm users which is a testament to the pervasiveness of Paytm use and the unique opportunities we have to expand credit availability in our country. Over time, we will use CreditMate’s platforms to make credit available both offline and online lenders to our users. “
The partnership with Paytm will allow Urja Money to reach a greater number of customers. “This will allow us to expand our operations, distribution, lending partnerships and technology investments to help more consumers access and take advantage of this key life-improving asset,” said the co- founder and CEO Jonathan Bill.