With BCCL by its side, the online loan portal aims to improve its brand image and recognition
Bennett Coleman and Co Ltd (BCCL) acquired stakes in the online lending platform FinREQ. With this, FinREQ will now focus on improving the transaction flow with better brand recognition and better market knowledge in India.
Speaking of the company’s future plans, co-founder and director of FinREQ said, “Online Portal always needs more media and advertising support than others in order to create a brand for its products, thereby enhancing their market potential. The brand equity model is an innovative way of financing for growing companies like ours and by having BCCL as an investor in our company we get huge benefits. With this association, we will now focus on improving the transaction flow with better brand recognition and better market knowledge in India. “
FinREQ has developed its own algorithm, analysis, and matchmaking features for its online lending platform that connects good borrowers with good lenders, the company claims. Loans up to $ 47.3 million (INR 300 Cr) can be processed online. The portal has links to over 50 major lenders nationwide and is industry independent. Besides, it offers all the debt products for the loan.
FinREQ intends to reduce physical meetings, documentation and email correspondence in transactions by up to 80%. As stated by the spokesperson for the company, borrowers have the option to upload their proposal digitally and get the loans processed faster with the help of certified consultants.
While the company was founded by CA Bhavik Mehta and ex-banker Bipin Mehta in 2011, the FinREQ online lending portal (.com) was launched today. The portal deals with end-to-end lending products for businesses and individuals. Previously, through partnerships with nationalized, cooperative, foreign and private banks, as well as NBFCs and housing finance companies, Bhavik and Bipin advised clients on their lending needs.
The current Internet penetration in India stands at $ 456 million and is set to grow further in the years to come. There are over 50 million MSMEs in Tier II, III and IV cities, of which only 2% of MSMEs borrow from traditional financial institutions.
Market demand has fueled the proliferation of a number of lending and lending platforms. These platforms have also been successful in securing huge funding and support from VCs.
Mumbai-based online lending platform FlexiLoans last month raised approximately $ 7 million (INR45 Cr) institutional debt financing from financial institutions. The startup is supported by investors Sanjay Nayar, CEO of KKR India, Anil Jaggia, Vikram Sud and Narayan Seshadri.
Faircent, the Gurugram-based P2P lending start-up, closed $ 3.9 million in a Series B funding round. Investors who participated in the funding round included Incofin Investment Management and others. investors from Faircent, JM Financial, 3one4 Capital, M&S Partners Pte Ltd and Aarin Capital. Another Gurugram-based SME lending platform, OfBusiness, had secured $ 3.8 million (INR 25 Cr) in debt financing from Kotak Mahindra Bank in October of last year.
With BCCL having a huge internal media setup, the FinREQ online lending portal will have a clear advantage in terms of building strategy and brand recognition.