Digital payments company MobiKwik showed strong growth in its lending business and aims to disburse loans worth Rs 1,500 crore in FY2020.
The payments app, which competes with Paytm in the finance tech space, has already disbursed over one lakh digital loans in September this year.
“We started our digital lending journey more than a year ago and disbursed over 1,00,000 fully digital loans in September…We are well on track to disburse over Rs 1,500 crore across 1.2 million loans in FY2020,” MobiKwik Co-founder and CEO Bipin Preet Singh told PTI.
He also said that the company is working with leading financial institutions to create loan products that customers need in small packet sizes.
“We have been able to keep operating costs low by delivering the loan completely digitally…these loans range from Rs 2,000 to Rs 2 lakh,” he said.
“There has been a 4X growth in terms of the volume (number) of loans disbursed as well, growing from 1.21 lakh loans in H1 of FY19 to 4.96 lakh loans in H1 of FY20,” he added.
MobiKwik’s gross revenue is about Rs 425 crore annually, and in the first half of FY20, over 120 million transactions took place on its platform which was up 1.6 times year-on-year.