Mobile app-based lender Branch International has, within a month of its foray into the Indian market, witnessed a huge uptake in loan applications.
“We have, in the last 45-odd days, received close to 1.2-lakh loan applications,” Charishma Chotalia, General Manager, told BusinessLine .
African foray
The San Francisco-based start-up received an NBFC licence in January this year. Though new to India, this company, which focuses on the micro-lending space through the mobile app, entered the African market almost two years back, where it remains the most downloaded app.
Without sharing details on the amounts disbursed in India till date, Chotalia said she was awed by the response to the product offering, as it proved the business potential in the digital-lending space.
“We will be adding additional finance products and not remain just a lending platform.” Asked if Branch could do without a brick-and mortar presence, she said: “We only focus on micro-lending, making access to finance possible for the billions still unreached by banks.
“The power of technology is phenomenal. We’ve used data science to create a robust model to assess the applicant’s profile and a completely different model to underwrite the risk.
“The turnaround time is 24 hours. We offer quick, short-term loans. The request has been for amounts as small as ₹500. We extend support up to a maximum of ₹50,000. Users can increase their credit score and unlock access to larger loans.”
On capital infusion, she said: “Branch International raised $170 million in Series C financing, just after a month of our entry into India.
Fund-raising plans
It was led by Foundation Capital and Visa. The company has been infusing sums to manage India operations. We look forward to being able to raise money in the local currency.”