PayU India to open its consumer credit arm PayU Credit, after receiving NBFC license from the Reserve Bank of India. The recent development is set to boost the company’s efforts in the digital lending space.
Jitendra Gupta, the managing director of PayU India, is set to head the new initiative, according to the company.
PayU has already been working on strengthing its position in the Indian fintech market through a number of acquisitions, investments, and tie-ups. The latest development will further help the Naspers-owned fintech company to expand its credit-focused offerings in the country.
“We see the (Indian) consumer credit market as a trillion-dollar market currently… We feel that our platform approach will address this by bringing in different lenders, our balance sheet, partnering and investing in other companies, so that we can address the different segments of credit needs,” Gupta said.
India is a growing fintech market with a huge population outside the ambit of the financial institutions. PayU India will be looking to target this population to help the financially weaker sections, as it makes inroads in the Indian fintech market.
According to reports, PayU India processes monthly payments worth ₹8,000 crores, deriving around 2% of its overall revenue from its credit business. While it contributes around 47% of its parent company’s total payment value.
According to the company, PayU has more than 4,00,000 merchants on its platform.
Earlier this month, PayU partnered with Flipkart-owned PhonePe, to help the former expand its online merchant base.
Last month, PayU participated in an extended series A round of consumer lending startup ZestMoney, to help raise ₹94 crores. It also partnered with Reliance Money, to offer app-based loans.
India has witnessed a growth in the number of fintech startups in the credit lending space, owing to the growth opportunity. Some of the players in the credit lending space include Monexo Fintech, Lendingkart, Faircent, LenDenClub, among, many others.