Money & Banking

Freecharge to work on financial services business

Surabhi Mumbai | Updated on June 11, 2020 Published on June 11, 2020

Freecharge plans to turn into a complete digital financial services player and will focus more on secured lending products in the current economic uncertainty.

“We had started our migration towards being a financial services player, that was the next phase of Freecharge that we were working on. We want to be a full financial services player for our customers,” said Siddharth Mehta, CEO, Freecharge, adding that the move is also driven by the fact that it is a subsidiary of Axis Bank.

While the company was focussing on unsecured lending before the Covid-19 -led economic slowdown, it is now looking more at secured lending and is set to launch a two-wheeler loan soon.

“What is changing for us is that we were focussing on unsecured lending now for a certain period of time, we are moving to secured lending. We have just launched gold loan product on our platform. For a select set of users we will be launching two-wheeler loans on our platform,” Mehta told BusinessLine, adding that it will gradually go back to unsecured lending again once the economy stabilises and market picks up.

According to Mehta, there continues to be demand for loans, but the company is being prudent in terms of lending. For its financial services business, it will be launching a digital fixed deposit product this month. It will also be revamping the mutual fund solution on its platform soon.

“We will also be getting a banking solution in partnership with Axis, or a neobanking kind of product as well as insurance eventually,” said Mehta. Freecharge has a registered user base of 7.5 crore on its platform. It plans to focus on the 25- year to 32- year-old age group for its financial services business or those who have just started working.

However, payments will remain a focus area, given the significant opportunities in the segment, said Mehta, noting that there are a large number of people who still have to move online for payments.

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Published on June 11, 2020
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