Following the MoU signed last year, the financial companies Inditrade Capital and Robocash Group have launched an online service for short-term consumer lending in India.
Given the increasing demand for digital lending, the service is expected to lead the segment in India in a period of 3 to 5 years.
On January 16, 2019, Robocash Group announced the start of microlending operations by its subsidiary JRG FinCorp. Ltd in India. Established in technical partnership with Inditrade Capital (erstwhile JRG), the company is operating the service “Robocash.in”.
Based on the own long-standing expertise in the European and Asian markets, Robocash Group has introduced in-house technologies to automate the service and secure simple and comfortable access to finance for any customer. The service is working online providing short-term personal financing ranging between USD 14 up to USD 350 (INR1,000 to INR 25,000) for a period from 7 to 30 days.
The service is expected to grow remarkably in the background of the increasing demand for digital lending supported by the expansion of smartphones and mobile internet in India. According to the forecast of BCG in 2018, the digital lending in India will reach US$ 1 trillion by 2023 driven by the five-fold rise in the digital disbursements. Besides, the second largest population in the world and the low penetration of credit in India will facilitate sustainable demand for the services providing people underserved by banks with easy and instant access to finance.
Making the announcement, Mr. Sudip Bandyopadhyay, Group Chairman of Inditrade Group of Companies said, “Robocash is a fully automated online lending service that grants loans at any time of the day. Our focus as always is on Financing Progress by servicing unserved/ underserved segments of the Indian population through inclusive and organized financing. Our technical partnership with Robocash enables us to seamlessly serve a large part of the Indian population which is salaried or self-employed with low earnings and in need of finance for a short duration.”
Speaking on the launch of the service in India, Mr. Sergey Sedov, CEO of Robocash Group said, “India has become the seventh lending market within our footprint. The expertise in the large markets as Russia, Kazakhstan, Spain, Philippines, Indonesia and Vietnam in microlending and AI supported back-end technology will give us an edge in the Indian background. Despite the advanced fintech environment, there is still a gap in the financial inclusion, which we could help to cover. Our aim is to be a leader in this segment in India, within a period of 3 to 5 years.”
Inditrade Capital and Robocash Group will later invest in the company in proportion to their shareholding subject to regulatory approvals. The company will raise funds through capital infusion, tier 2 capital and loans from external sources.