Nasdaq-listed MakeMyTrip, which launched its fintech subsidiary TripMoney during the pandemic, plans to venture into forex and insurance solutions. TripMoney Fintech Solutions, an independent subsidiary of the online travel agency, specifically focuses on the financial services needs of the Indian traveller.
Currently, TripMoney is only an app-in-app feature which works on its two websites MakeMyTrip and GoIbibo. But soon the company intends to make it an independent app and solution that will also be available to customers who are booking on any travel agency and not just through their platforms.
Since its launch, the platform has facilitated about 5,00,000 trips till date and issued about 2 million policies through its other vertical is InsurTech.
The company said this move will involve a deeper play in the travel fintech space. This is a wholly owned subsidiary and is targeting to build tech-led solutions that will help simplify travel related financial services that a customer may need.
"It will become a one-stop solution for Indian travellers by providing services like book now, pay later, forex and insurance products," group CEO Rajesh Magow, said. "We started TripMoney with consumer loans which were under the credit vertical offering money to travellers who wanted to travel and needed credit since sometimes travel ticket sizes can be big. That's what started to gain traction, " he added.
According to Magow, during the pandemic or the last three or four quarters, TripMoney has been running and gaining traction by selling "bite-sized" insurances for travellers during unpredictable covid waves. In future the company will also be looking at other financial services that Indian travellers need like Forex. "Forex is a big need of the Indian consumer," he said.
The company will have partners in the backend where it will be partnering with either the NBFCs or banks or the insurance companies for the fulfillment and risk part of it.
Research firm Redseer estimated the country's buy now pay later market will reach $45-50 billion by 2026 from $3-3.5 billion now.
