Indel Money
The South India-based NBFC looks forward to automate KYC verification and introduce paperless transactions with the best technologies available in the market:
Indel Money offers gold loans, SME loans and money transfer services to HNIs, business institutions, retail investors and common men. It has been successful in implementing the digital strategy in the organization. As a result of the digital strategy, 30% of the company’s transactions has been converted to digital in recent times and the percentage is increasing month on month.
EXPANDING PARTNERSHIP
As the lockdown came into being, the company saw growth in online transactions and adoption of digital in many aspects of its business. The company has partnered with all the major payment banks and payment gateways for providing ease and reach for its customers. Umesh Mohanan, Executive Director & CEO of the company, says the company’s debt partners include State Bank of India, Dhanlaxmi Bank, DCB Bank, South Indian Bank, CSB Bank, IDFC First Bank, Northern Arc, Hinduja Leyland Finance, Vivriti, Creation Investments. Its tech partners are LCode, Paytm, BillDesk and Zing. A number of insurance companies have also partnered with it including, New India Assurance Co, United India Insurance Co, Kotak Life Insurance Co, Digit, Aditya Birla group, Oriental Insurance Co and Future Generali General Insurance Co. The company’s strategic consultant is Grant Thornton.
EXPOSURE BY PORTAL, APP
Indel Money is expected to set up an automated process in which customers can manage the credit line according to their preferences. Umesh says disbursals are allowed to be fully automated because of the company’s tie-ups with banks through API. Existing customers can use the company’s portal or mobile app to extend the exposure of the gold pledged with it on the basis of the prevailing LTV.
GOLD LOAN AT HOME
Indel Money is planning to set up support
hubs in all major cities to extend its doorstep gold loan facility. Umesh says: “This will function on the network of virtual branches. We are planning to expand our online gold loan facility to take the branches to homes as the upper segments of MSMEs are not comfortable to visit a gold loan company branches for the gold appraisal process.”
GOLD LOAN DEMAND UP
Umesh also says the outlook for gold loan demand is positive. “The demand for gold loan will be fuelled by healthcare requirements and pandemic-driven uncertainty. There are limitations for the banking sector to meet the gold loan demand at the earlier pace due to decreased gold prices and the end of 90% LTV lending in March 2021. Apart from this, there has been increased credit crunch due to prevailing policies. Our gold loan book has registered around 40% growth in FY2021. We expect around 50% plus growth in FY21-22 thanks to our geographical presence, which is now being expanded,” he elaborates.
Indel Money closed FY21 with a gold loan AUM of `5.80 billion, up from `3.36 billion in FY20. It is now targeting `8.50 billion AUM in the worst-case scenario and `10 billion in the best scenario this fiscal and to top `13 billion by FY23.
SOCIAL MEDIA & CRM
With the online transaction offering, Indel Money has forayed into the social media too. Umesh says these media being the flavour of the season, the company envisages the penetration to grow year on year.
The company is using a CRM package, which is actually a support for the customer throughout the customer life cycle. Umesh says the analytics are derived out of the CRM software, which the company puts to use.
Indel Money also looks forward to automate the KYC verification with the best technologies available in the market. It is now working on plans of achieving paperless transactions with the minimalistic levels possible within the norms prescribed by the law. It is also planning to launch prepaid cards as well.”
EXPANSION & DIVESTMENT PLANS
Indel Money has 191 branches majorly in Kerala, Tamil Nadu and Karnataka. Umesh says it is planning to open some 100 more branches in Maharashtra, Telangana and Andhra Pradesh this current fiscal and aiming to increase the number of branches to over 400 by FY23.
The company is in talks with private equity players to divest certain percentage of its equity. With the divestment, the company aims to have a faster growth trajectory by entering new markets in FY22. Umesh says: “We are in active discussions with a number of PEs from the US and Singapore to raise capital. We can divest 10-15% of our equity to a good investor, for around `1.40 billion, depending on the quantum of dilution and a valuation north of `4 billion. We hope to finalize the investor by December 2021.”