India’s PhonePe reportedly planning to launch consumer lending in January 2024
Indian fintech giant PhonePe is reportedly looking to enter the consumer lending space in January 2024.
PhonePe is reportedly set to enter the consumer lending space by January 2024
Two sources familiar with the matter tell The Economic Times that the Walmart-backed fintech is aiming to become a distributor for personal loans at first, as it looks to build up its credit underwriting capabilities, adding that PhonePe is currently in the “final stages” of integration with five lenders, which includes banks and non-banking finance companies (NBFCs), whose names remain undisclosed.
One of the sources tells ET that over the next six to seven months, PhonePe plans to launch multiple consumer credit products, including potentially introducing a credit line sometime next year.
PhonePe currently distributes health, life, motor and car insurance through its platform, claiming to have sold 5.6 million policies as of July. With its move into consumer credit, the fintech giant hopes to replicate the same success it has experienced in the insurance category.
The move should not come as a surprise, with PhonePe having launched its merchant lending platform in June this year, with a view to leverage its network of more than 35 million businesses.
Earlier this month, the company also promoted longstanding executive Hemant Gala to CEO of its credit business. He previously served as vice president of financial services for PhonePe for almost eight years.
