Poonawalla Fincorp Limited (formerly Magma Fincorp Limited) on Tuesday said it has forayed into the digital consumption loans space through a pact with microlending startup KrazyBee.
Under this partnership, Poonawalla Fincorp will offer small ticket personal loans to individuals and also provide end-to-end digital consumer loans across the country.
It is a step towards building a strong partnership with partners who have demonstrated distribution at scale, and risk management capabilities along with their technical prowess, the company said.
The company added that the partnership has seen a lot of traction within a month of its launch and it intends to do more than Rs 1,000 crore of disbursement in the current financial year.
“We are glad to partner with KrazyBee for new business opportunities and to connect with prospective customers through KreditBee’s digital platform. The partnership brings together two lenders who are obsessed with customer satisfaction and want to offer the best experience to all of their customers by leveraging technology," said Abhay Bhutada, Managing Director, Poonawalla Fincorp.
Poonawalla Fincorp is a Cyrus Poonawalla group promoted non-banking finance company that operates more than 295 branches across 22 states.
At present, the company is part of the Cyrus Poonawalla Group with a majority stake owned by Rising Sun Holdings Private Limited, a company owned and controlled by Adar Poonawalla, Chief Executive Officer at Serum Institute of India.
“Our technology strength empowers our partners to provide seamless disbursement services. Partnering with a Digital-first partner like Poonawalla Fincorp helps us offer a wider range of products and services to our customers and also enables us to meet the ever-growing demand for digitally enabled loans," said Madhusudan E, CEO, KrazyBee.
Bengaluru-based KrazyBee Services Pvt Ltd, is a non-deposit taking Non-Banking Financial Institution (NBFC) registered with the Reserve Bank of India.
It has tied up with the financial technology platform to cater to the various needs of the borrowers. KrazyBee also operates the fintech lending platform KreditBee.
Poonawalla Fincorp Limited, earlier known as Magma Fincorp Limited, focuses on consumer and MSME financing. It offers home loan, car loan and personal loan, among others.
It is backed by private equity firms True North, ChrysCapital, LeapFrog Investments, Netherlands Development Finance and World Bank’s private investment arm International Finance Corporation (IFC).
In February 2021, Serum Institute CEO Adar Poonawalla owned Rising Sun Holdings acquired a controlling stake in non-bank lender Magma Fincorp Ltd (MFL).
