Home Credit Scouts for Tie-ups with Ecomm Cos

The Economic Times - - Finance & Commodities - At­madip.Ray@ times­group.com

Kolkata: Home Credit In­dia, which has its roots in Prague, is ex­plor­ing tieups with lead­ing ecom­merce play­ers to of­fer fi­nanc­ing so­lu­tions to the nextgen In­dian cus­tomers who are in­creas­ingly in­clined to on­line buy­ing. This is go­ing to be one of the two test projects for the con­sumer fi­nanc­ing com­pany in 2017, chief ex­ec­u­tive Pavel Maco told ET in a tele­phonic in­ter­view.

A plan to grow busi­ness in the home ap­pli­ances space is an­other chal­lenge for the com­pany. It looks to fi­nance re­frig­er­a­tors and wash­ing ma­chines more ag­gres­sively with an aim to grow its port­fo­lio three times this year from .₹ 1,570 crore at the end of De­cem­ber 2016. In the five years of its ex­is­tence in In­dia, Home Credit has fi­nanced 1.8 mil­lion mo­bile phones, mak­ing this 90% of its busi­ness. Fi­nanc­ing of con­sumer durables ac­counts for just about 5% of its port­fo­lio. It also fi­nances pur­chase of two-wheel­ers. In­dian con­sumer fi­nance mar­ket has grown 16.3% year-on-year to .₹ 19,400 crore at the end of De­cem­ber, ac­cord­ing to the Re­serve Bank of In­dia data.

“Our fo­cus this year would be to test out fi­nanc­ing op­tions through on­line chan­nels. The tech­nol­ogy link­ing the Aad­haar num­ber will be a gamechanger,” said Maco, adding that the com­pany has started dis­cus­sions with lead­ing play­ers in this space.

Home Credit has ex­panded foot­print to 60 cities across 15 In­dian states, ac­quir­ing a cus­tomer base of over 2 mil­lion.

In the five years of its ex­is­tence in In­dia, Home Credit has fi­nanced 1.8 mil­lion mo­bile phones, mak­ing this 90% of its busi­ness

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