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With expectations of continued high demand for gold loans, Indel Money has adopted a digital-focussed hybrid model for its expansion, under which it has planned to open over 200 brick and mortar branches across the country by 2023-24.
“The expansion drive will feature the proliferation of its digitally-enabled doorstep gold loan facility parallel to the traditional brick-and-mortar framework,” the South India-based NBFC said in a statement on Monday.
Indel Money is also in talks to divest up to 15 per cent, as it charts out a faster growth trajectory by entering new geographies this fiscal and an eventual listing.
Also read: Indel Money launches special gold loan scheme for vaccinated citizens
“Our target would be to raise around ₹400 crore capital within the next two to three years. We hope to finalise the investor by December,” said Umesh Mohanan, Executive Director and CEO, Indel Money, adding that the NBFC is looking for PE investors.
At present, Indel Money has 191 physical branches in the States of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana and it aims to take the branch tally to 400 by 2023-24.
It also plans to open 50 branches in Odisha and Maharashtra in the fourth quarter of the fiscal and 45 branches in Gujarat and West Bengal in the first quarter of next fiscal.
To expand the doorstep gold loan facility which targets business owners and professionals looking for gold loans of ₹2 lakh and more, Indel Money will be following a hub and spoke model, ensuring superior service delivery, it further said.
Also read: Gold loan demand is expected to spike after lockdown: Indel Money CEO
The first pilot project of the doorstep gold loan facility has been successfully carried out in Bengaluru in January and the second phase of the pilot project will be underway in Hyderabad and Chennai in September.
“The hybrid model which combines both digitally-enabled doorstep gold loan and its hub in conventional brick and mortar format will help us penetrate major city markets like Mumbai, Ahmedabad, Patna, Chandigarh, Rajkot, Delhi, Lucknow. We are focusing more to set up branches in strategic locations capable of delivering more yields in terms of assets under management,” said Mohanan.
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