Creditas Solutions, a technology company that provides delinquency management solutions to banks and FIs through the digital route, plans to go international this fiscal. It hopes to partner with at least two banks each in West Asia and South-East Asia markets, said its co-founder Anshuman Panwar.

“In the last 2-3 months, we have had lot of inbound queries from West Asia and South-East Asia. We are looking to go to new markets. We hope to partner 2-4 banks in our initial international foray in these markets to test the waters. Then depending on results we will scale that up,” Panwar told BusinessLine .

At the same time, it’s not that the focus of this six-year-old fintech will get entirely shifted abroad, he added.

Creditas had, about three years back, raised capital from a clutch of angel investors, and this year, too, more capital will be raised for investments in technology and international expansion, he added.

Creditas Solutions, which is currently working with 11 private banks and NBFCs, will soon take efforts to work with public sector banks as well, especially given the huge market opportunity that public sector banks provided, said Panwar.

It usually takes a lot of time to bag mandates from public sector banks, but efforts will be taken this year to bring them on board, he said.

Creditas Solutions, which is expected to close current fiscal with revenues of about ₹100 crore, expects to achieve ₹1,000-crore in annual revenue in the next five years, Panwar added.

Creditas helps banks make loan recoveries and uses latest concepts such as Artificial Intelligence to speed up the process. Being digital enables the lenders to radically improve collection performance.

A major fillip

He said that Covid-19 had given a major fillip to the business of Creditas Solutions, as several banks could utilise the fintech’s digital collection services during lockdown. “Having used us, the banks have also realised the gain in opportunity in using digital recovery solutions,” he added. Panwar said that Creditas solutions were being used by banks to do restructuring as well.

The bounce rate – percentage of people who have not paid – was anywhere between 10-18 per cent, depending on the different portfolio and product types for banks across India. During Covid-19, this bounce rate had gone up to 40 per cent, and after October last year this started coming down to touch 25 per cent in mid-March this year.

Related Topics
comment COMMENT NOW