Digital lender Clix Capital eyes external commercial borrowing to diversify resource base

K.R.Srivats New Delhi | Updated on January 17, 2020 Published on January 17, 2020

Sees scope for 30-40 per cent loan growth in 2020-21, says Chairman Pramod Bhasin

Clix Capital Services, a digital lender, is eyeing 30-40 per cent growth in loan book in 2020-21, a top official said.

This optimism for growth comes from the huge demand for financial services in the market, Pramod Bhasin, Founder & Chairman, Clix Capital told BusinessLine here.

“Demand is not the issue here, supply is..This is an opportune time for us to grow. Economic environment for companies (digital lender) like us is simply fantastic,” he said.

Opportunities for good, solid, prudent growth is tremendous today and businesses are in crying demand for funds, he added.

To diversify its resource base, Clix Capital is planning to tap the overseas debt market through an external commercial borrowing (ECB), Bhasin said.

“In this current phase of time when it is taking so long to raise funds from local banks, we have to look outward. Also, the rates are attractive in ECBs,” he said.

When asked about the quantum of ECB that Clix would look at, Bhasin said that it would certainly be more than $100 million.

As on date, Clix Capital has ₹5,000 crore of assets under management —book built over the last two-and-a-half years since the start of its journey in second half of 2017. And also has five distinct business segments within Clix.

“We have built a consumer finance, SME, housing finance, equipment finance and K12 school financing segments. Only in SME segment, we are yet to go completely digital”, he said.

Bhasin said that Clix Capital is currently capitalised at ₹1,800 crore and is having a debt equity of 3:1. “We can certainly look for more leverage given that we are operating in financial services space,” he said.

Going forward, Clix also plans to focus attention on designing and offering products for the millennial generation, Bhasin said.

It may be recalled that Clix Capital had in September 2019 raised $40 million (₹280 crore) from existing investors AION Capital and promoters Pramod Bhasin and Anil Chawla.

Bhasin and his partner Anil Chawla were both former CEOs of GE Capital India and Asia. They had bought out the commercial lending and leasing business of GE Capital in the country and renamed it as Clix Capital Services.

Published on January 17, 2020
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