Home > Internet > Fin-tech firm Financebuddha.com aims to double business, revenue in FY17

Fin-tech firm Financebuddha.com aims to double business, revenue in FY17

Parth Pande, co-founder & CEO, Financebuddha

Parth Pande, Co-founder & CEO,

Bengaluru-based financial services startup Finbud Financial Services Pvt. Ltd expects to double the total loan amount processed and revenue this year on the back of new products that will increase its market presence, said a top executive.

The four-year-old company, which operates loan comparison and fulfillment site Financebuddha.com, is working on new products that could act as an alternative lending option to borrowers not covered by the mainstream lenders, said Parth Pande, co-founder and CEO.

The company has disbursed Rs 1,200 crore through its platform and plans to increase the disbursal to Rs 2,000 crore in FY16-17. On an average, the company disburses Rs 120 crore per month, with 60% of the business coming from South India.

It gets about Rs 6,000 crore of loan requirements coming into the platform, with only about 40% reaching up to the disbursement stage, Pande added. The rest of the borrowers don’t get access to the relevant loan product, hence the company is working on new loans, which would be underwritten by Finbud, he added.

Since most of the loan demand comes with poor traditional credit information, the company is developing its own credit scoring method based on over 200 parameters on their ability to pay. It would partner with NBFCs and other institutional investors to provide loans to this segment, Pande explained. It has partnered with Exide Life Insurance to cross-sell insurance products to its existing customers.

At present, the company has partnered with more than 30 banks and financial services companies and sources 50% of the business from direct selling and online and the rest from over 600 exclusive agents, he added. It originates over 5,000 applications a month and had revenue of $3 million in FY16 and is looking to double it this financial year.

The company acts as a marketplace for retail lending products like personal loan, business loan, home loans and loan against property. It caters to the borrowers through both online and offline channels, and caters to borrowers through a dedicated relationship manager.

Funding Plans

The company is firming up Series A funding plans to increase the suite of product offerings, create new partnerships and deepen the market presence. It is in early stage of talks to raise $3-5 million and is exploring to raise capital from both financial as well as strategic investors, said Pande.

In February 2016, angel investors Chennai Angels invested seed capital in the company, which is majority owned by three founders Vivek Bhatia, Parag Agarwal and Pande.

It has a team of over 200 employees.

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