Money & Banking

Svatantra Microfin launches cashless solution ‘Saathi’

Priyanka Pani Mumbai | Updated on January 12, 2018 Published on June 29, 2017

Ananya Birla, founder & Chairman of Svatantra, at a press meet in Mumbai on Thursday   -  SHASHI ASHIWAL

Launches cashless solution

Mid-sized microfinance institution Svatantra Microfin is looking at doubling its loan disbursals to ₹800 crore by 2019, even as it plans to expand its operations to more States within the same period.

The firm, founded and promoted by Ananya Birla in 2012, has so far disbursed micro-credits worth ₹450 crore. Its loan book stands at ₹260 crore, and it has grown 220 per cent year-on-year since its launch in 2014. The firm also claims to have broken even this year.

Svatantra has also launched an app, an end-to-end cashless solution called Saathi, for an entire spectrum of operations in areas such as loan originating system, loan management system and collections. In partnership with third-party service providers, it has also created a affordable, cashless mediclaim product for up to five family members. .

The company, which started with just one branch at Wada in Maharashtra, currently has about 85 branches in six States.

The plan is to expand to more States this year, said Birla, adding that the company is looking to raise funds from social capital ventures, both domestic and global, next year. She, however, did not quantify the amount the company plans to raise.

“Right now, we are adequately funded, and have tie-ups with about five leading banks. As we expand our operations, we will require more funds. We are also looking to enter some global markets,” she told BusinessLine, giving the example of Bangladesh-based Grameen Bank that provides microfinance in the US market.

“Every market needs micro-credit. There is a huge demand-supply gap in this segment,” said Birla, who is the elder daughter of business tycoon Kumar Mangalam Birla.

Published on June 29, 2017
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