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Poonawalla Fincorp forays into the digital consumption loans space

Poonawalla Fincorp Limited (Formerly Magma Fincorp Limited) has partnered with KrazyBee to offer digital consumption loans. Poonawalla Fincorp will offer small-ticket personal loans to individuals as part of this agreement. Poonawalla Fincorp’s declared objective is to specialise in consumer and small business finance. 

This collaboration is the first step toward forming a strong partnership with partners who have proved distribution at scale, risk management, and technological prowess. Across the country, the collaboration provides entire end-to-end digital consumer loans. The credit underwriting for these loans is done using a scorecard, which allows for accurate consumer selection at scale. In addition, the entire digital procedure serves to democratise the loan application process.

Within a month of its launch, the partnership attracted much interest, and the company plans to distribute more than 1000 crores under it in the current financial year.

Speaking on this tie-up, CA Abhay Bhutada, Managing Director, Poonawalla Fincorp, said, “We are glad to partner with KrazyBee for new business opportunities and connecting with prospective customers through KreditBee’s digital platform. We are a digital-first, technology-led lender, and this partnership with KrazyBee is a natural fit for our business strategy. The partnership brings together two lenders who are obsessed with customer satisfaction and want to offer the best of customer experience to all their customers by leveraging technology.”

Madhusudan E, CEO, KrazyBee, commented, “Our technology strength empowers our partners to provide seamless disbursement services. Partnering with a Digital-first partner like Poonawalla Fincorp helps us offer a wider range of products and services to our customers and also enables us to meet the ever-growing demand for digitally enabled loans.”

Strong equity investors such as Premji Invest, ICICI Bank, and Mirae Asset have backed KreditBee and KrazyBee, who have also raised loans from HSBC, Bank of Baroda, and Kotak Mahindra.

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