Ambit Finvest Pvt Ltd, a unit of Ambit Group, on Thursday said it has bought Mumbai-based fintech startup SME Corner to further strengthen its lending footprint for small and medium enterprises.
However, the company didn't disclose the financial terms of the deal.
The acquisition will be executed via transfer of business pertaining to business loans to micro, small and medium-sized enterprises of SME Corner, Ambit Finvest said in a statement.
It further said that Ambit Finvest would acquire the assets of SME Corner along with their 300 employees and its proprietary online platform.
SME Corner, operated by Digikredit Finance Pvt. Ltd, offers business loans to micro, small and medium enterprises (MSMEs) through their proprietary online platform.
Currently, the company has operations across 21 states. It also claims to provide unsecured business loans and loans against property, besides MSME and women entrepreneur loans. It has an assets under management of around Rs 450 crore so far.
“SME Corner has built a phenomenal proprietary technology, ground-up, entailing development efforts spanning four years. This will help accelerate our digital lending services and solutions. We will now be able to better enhance our origination footprint on the digital side,” said Sanjay Agarwal, chief executive at Ambit Finvest.
Last week, the Small Industries Development Bank of India (SIDBI) had partnered with Ambit Finvest to co-lend unsecured loans to MSMEs.
“This acquisition demonstrates how integrated strategies can enhance the customer experience and cater to new business opportunities. Ambit Finvest will now truly have an omnichannel origination approach, straddling physical and digital infrastructure,” added Vikrant Narang, deputy CEO, Ambit Finvest.
In 2018, Ambit Finvest had acquired the SME lending business of Finmax Credit & Finance Pvt. Ltd to diversify its asset base.