Digital payments unicorn PhonePe is gearing up to roll out consumer lending services on its platform by January next year.
Marking its foray into the consumer lending space, Walmart-backed PhonePe is likely to operate initially as a distributor for personal loans. The fintech firm is currently in the last phases of integrating with five lenders, including both traditional banks and non-banking finance companies, according to an ET report.
Within the next six to seven months, PhonePe plans to introduce a range of consumer credit products. The company has been enhancing its underwriting capabilities to determine whether customers align with the lender’s criteria. The rollout of these offerings to consumers will be gradual, the report added citing sources.
While also considering the possibility of a credit line offering in the coming year, PhonePe presently views it as a non-immediate priority.
The current internal focus is directed towards monetising its user base and capitalising on its substantial distribution capabilities. With credit, it aims to replicate the success achieved in insurance distribution.
PhonePe has established its position as a distribution platform for various insurance products, including life, health, motor, and car insurance.
Collaborating with partners such as Acko and others, the app facilitates users to make monthly subscription payments through the Unified Payments Interface (UPI).
Earlier this year, PhonePe announced its foray into the merchant lending space as well. The fintech decacorn said it launched a merchant lending marketplace where banks and NBFCs will be able to offer credit to its 35 Mn merchant base.
The platform has been diversifying its product offerings through many new launches. It also launched the Indus Appstore Developer Platform for Android app developers to take on giants Apple and Google. The mobile app marketplace, Indus Appstore, allows developers to upload apps using its self-serve developer platform.
PhonePe recorded a revenue of INR 2,914 Cr in the financial year ended March 31, 2023, an increase of almost 77% from INR 1,646 Cr in FY22. The startup, in a statement, attributed the increase in revenue to growth in money transfers, mobile recharges and bill payments.
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