Snapdeal has announced its foray into financial services with the acquisition of a majority stake in RupeePower to democratise financial inclusion. From now on, the e-commerce giant will also provide consumers a financial services marketplace.
Through this marketplace, both Snapdeal and RupeePower will endeavour to digitally organize the fragmented financial services market by integrating these services onto the Snapdeal platform.
The marketplace will include a wide range of financial services including personal loans, educational loans, credit cards (co-brand – B2B & B2C), auto loans, home loans and extended warranties amongst others.
Commenting on this, Kunal Bahl, Co-Founder & CEO, Snapdeal said, “Our aim is to create life changing experiences for our buyers and sellers and all our efforts at Snapdeal are in line with meeting this objective. Realizing the various difficulties that consumers face while deciding and purchasing financial products/services and the challenges that companies face whilst reaching out to the ‘right’ audience, we have brought RupeePower into our family, to help solve the distribution challenges of the financial services ecosystem and make it more inclusive. The same way Snapdeal has democratised retail in India, now we aspire to democratise access to credit.”
Those who are unaware, RupeePower is a digital financial products distribution platform for loans, credit cards and other personal finance services. Founded in 2011, RupeePower has aided INR 1,500 crores of credit disbursal over its platform in the current financial.
“With its credit comparison, matching and processing infrastructure and strong affiliation with banks and NBFCs, RupeePower will now join forces with Snapdeal in building a collaborative ecosystem to provide customers with a host of financial products”, the press release states.
“The share of digital origination of credit is poised to grow from today’s 7.5% to 40% over the next 4 years, in an INR 400,000 crore (USD 67bn) retail credit market growing at 20% annually. With this investment and by partnering with Snapdeal, we aim to become the #1 originator of financial products over the next couple of years. Our emphasis will be on scaling RupeePower into the top match-making platform between lenders and borrowers, providing consumers with the best targeted offers & a super-simplified loan process, while ensuring lower opex & smarter credit match for lenders.” said Tejasvi Mohanram, Founder & CEO, RupeePower.