Online marketplace Snapdeal on Tuesday made its foray into financial services by acquiring a majority stake in RupeePower, a digital financial products distribution platform. Financial terms of the transaction were not disclosed.
With this acquisition, Snapdeal will now offer consumers a financial services marketplace for loans, credit card and other personal finance products. Snapdeal’s nationwide reach to consumers, robust technology platform and deep consumer insights along with RupeePower’s deep technical integrations in information systems of the financial services industry are expected to create a potent platform.
“Realising the various difficulties that consumers face while deciding and purchasing financial products/services and the challenges that companies face while reaching out to the ‘right’ audience, we have brought RupeePower into our family, to help solve the distribution challenges of the financial services ecosystem and make it more inclusive,” says Kunal Bahl, co-founder & CEO, Snapdeal.
Founded in 2011, RupeePower has enabled Rs 1,500 crore of credit disbursal through its platform in the current financial.
The share of digital origination of credit is poised to grow from today’s 7.5 percent to 40 percent over the next four years, in a Rs 4,00,000 crore ($67 billion) retail credit market growing at 20 percent annually.
“Our emphasis will be on scaling RupeePower into the top match-making platform between lenders and borrowers, providing consumers with the best targeted offers and a super-simplified loan process, while ensuring lower opex and smarter credit match for lenders.” said Tejasvi Mohanram, founder & CEO, RupeePower.
The marketplace will include a wide range of financial services like personal loans, educational loans, credit cards (co-brand–B2B & B2C), auto loans, home loans and extended warranties among others.
With this launch, financial services companies will now be able to leverage Snapdeal’s nationwide reach across over 5,000 towns and cities.
The SoftBank Corp-backed Snapdeal has been an on acquisition spree and has acquired companies like luxury fashion portal Exclusively.com; Doozton.com, a curated and socially-nurtured fashion shop and Shopo.in, an online marketplace for Indian designer and handcrafted products, in the past.