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One 97 Communications Ltd, which owns the Paytm brand, has tied up with Piramal Capital & Housing Finance Ltd (Piramal Finance), for the distribution of merchant loans in small cities and towns of India.
Piramal Finance is a wholly-owned subsidiary of Piramal Enterprises Ltd. This partnership will expand Paytm’s loan distribution business, supported by Piramal Finance’s network of over 300 branches across India.
It will also help drive financial inclusion by giving small businesses and retailers access to credit.
CEO of Lending and Head of payments at Paytm, Bhavesh Gupta said, “We continue to see rapid growth across all our lending products, where we empower MSMEs from smaller cities and towns with access to digital credit. The success and scale of our lending products gives us the confidence to expand and boost our credit offerings. Our partnership with Piramal Finance will bring more merchants into the formal credit economy.”
The partnership will bring new-to-credit merchant partners to the platform. It will allow them to seamlessly avail of loans and meet their capital requirements. Merchant partners will be able to avail of loans of up to ₹10 lakh, with a tenure of 6-24 months. To drive convenience, Paytm will enable a completely digital onboarding process with minimum documentation.
Jairam Sridharan, CEO of Piramal Retail Finance
Jairam Sridharan, Managing Director, Piramal Capital & Housing Finance Ltd, said, “We aim to cater to the lending needs of merchants in the Bharat markets through a variety of products. Many of these merchants are loyal Paytm customers and this partnership will bolster our proposition through a mix of technology and a branch network located in tier-II and tier-Ill towns. Given our ability to underwrite this segment and collect in local markets, coupled with Paytm’s digital access to this base, we can offer compelling lending solutions.”
In Q1 FY23, Paytm disbursed 8.5 million loans, marking a Y-o-Y growth of 492 per cent. In terms of value, the company disbursed loans worth Rs 5,554 crore, registering 779 per cent Y-o-Y growth.
Additionally, this partnership will be expanded to include personal loans.
With 309 active branches, Piramal Finance plans to be present in 1,000 towns and cities over the near term.
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