Paytm, India’s fastest growing digital payment platform is, reportedly, set to join hands with the SME (Small to medium enterprise) lending platform Clix Capital.
According to the sources, referred by Inc42, both the parties have had multiple meetings on this matter and are now discussing finer aspects of the deal.
If the deal goes through, it will help Paytm to start its peer-to-peer lending business.
Based out of Noida, Paytm was founded in 2010 by Vijay Shekhar Sharma with an aim to bring an ease in the digital payments ecosystem across India.
Initially launched as a digital wallet company, the company has since then expanded into multiple verticals including ecommerce (Paytm Mall), online payments, mutual funds (Paytm Money), and had also launched its own Payments Bank in 2017.
Clix Capital Services Private Limited was founded in 1994 and is based in Gurugram, India. The company provides financing services worldwide. It was formerly known as GE Money Financial Services Pvt. Ltd.
While, Paytm said to have already registered with the India regulatory body Reserve Bank of India (RBI), to operate as a digital intermediary between borrowers and lenders.
While, earlier in 2018, Paytm was reported to be in the process of seeking a licence from the RBI to operate a P2P lending platform.
However, the fintech major had been facilitating short-term loans to some merchants on its platform through company’s tie-ups with the NBFCs (Non Banking Financial Company).
Some of the prominent players in the Indian market include Faircent, LenDenClub, IndiaMoneyMart, Monexo, LoanBaba, CapZest, and i2iFunding.