Viva Money recaps its first year of operating in the Indian market

Marking its first year, Viva Money revolutionizes digital lending with ₹150 Crore credit disbursed and 35,000 approvals, paving the way for a promising future

BRAND CONNECT | PAID POST

Published: Jan 10, 2025 05:30:27 PM IST

Updated: Jan 10, 2025 08:02:56 PM IST

Viva Money's founding team celebrates its first-year milestone in the Indian market

Viva Money, an innovative online lending platform, is passing a big milestone as the company has completed a year operating in the Indian market. Launched in December 2023, the lending facility has shown impressive results.

The company is currently operating in three Indian states - Karnataka, Gujarat and Maharashtra. Maharashtra has been the leading state, accounting for 45-50% of all loans issued monthly, followed by Karnataka with up to 30%, and Gujarat contributing the remainder.

“We see that our customers are very loyal. Many of those who come to us just to try to stay for a long time. The percentage of customers making repeat transactions is 44% in November, which is a 10% increase since June,” comments Viva Money Managing Director, George Donchenko. Bad debt and problem loans (90+ days overdue) were low at 5% of the portfolio due to the unique scoring model which allows us to prevent risks.

According to Mr. Donchenko, Viva Money is preparing to move to the risk-based pricing principle in 2025. ‘We have learnt to allocate a good portion of the portfolio and for better customers, we will reduce the rate for them in 2025,’ he said. Apart from this, for existing borrowers, the company will launch a personal loan with extended credit limit from ₹2 Lacs to ₹3 Lacs by the end of 2025, Viva Money will introduce a scan-and-pay feature that will allow customers to directly shop at online shops through an approved credit line on the app.

Despite Viva Money's short presence in the Indian market, the company has already reached a breakeven point by showing profits as a Loan Service Provider for the first 6 months of the financial year 2024-2025.

The next year's target is to issue credit lines worth ₹15500 million by the end of the year and grow the number of active customers to 1,60,000.

"We are also aiming to increase the share of female customers, which stood at just 10% in September. To achieve this, we’ve launched several dedicated campaigns on social media aimed at attracting female customers, promoting financial inclusion, and fostering independence among women in India. Moreover, it’s worth noting that market data consistently shows that women tend to have better repayment rates on loans," explains Mr. Donchenko.

Among the plans for 2025, Mr. Donchenko also highlights the local funding opportunities. Viva Money plans to connect several financial partners through the FLDG (First Loss Default Guarantee) scheme, where lending will be done on NBFC-partner balance sheet against guarantees issued by Viva Money.

“We are observing high levels of customer satisfaction. In December, Google included us in its list of recommended apps, leading to a four-fold increase in traffic from the search engine. Additionally, all reviews of Viva Money on Google reflect genuine customer experiences,” notes Mr. Donchenko.

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