How this Gurugram-based fintech lender is helping underserved borrowers get small loans- RupeeRedee

 


Founded in 2018, RupeeRedee targets people who don’t have a credit score, and helps them start building their loan profile. It raised $1 million in debt in 2021, and hopes to raise $3 million in 2022.

Despite the presence of more than 30 banks and 90 commercial banks, and thousands of fintech and financial services firms, India is a majorly underpenetrated market when it comes to formal credit. Ironically, there is a huge unorganised loan market that lends at backbreaking rates, essentially exploiting those in dire need of credit.

Most people depend on these unorganised, predatory lenders because they’re not able to qualify for a bank loan on account of not having a credit portfolio or "creditworthiness". Students, job seekers, self-employed individuals, part-time workers, or people who don’t have bank accounts are most likely to be rejected for a bank loan because they don’t have a credit profile with CIBIL yet.

That didn’t sit well with Artem Andreev, country head of RupeeRedee, who believes access to credit should be democratic.

RupeeRedee solves that problem. Founded in 2018 by Jitin Bhasin who relinquished his role in 2020, RupeeRedee is essentially a digital lending platform that targets first-to-credit customers and those who’ve not been able to raise a credit line from financial institutions.

The startup starts users who don’t have a CIBIL score off with a small ticket-size loan at Rs 2,000, and offers a maximum of Rs 25,000 to underserved customers. Being completely digital allows the fintech firm to offer its services across pin codes in India, and it disburses funds almost immediately.

RupeeRedee has seen almost three million installs from the Google PlayStore, and hopes to hit five million by the end of the current fiscal year. It has disbursed nearly three lakh loans to date to individuals via its online platform, end-to-end, including paperwork and disbursal.

Differentiation and revenue model

A unit of Digital Finance International, which has more than 20 international fintech brands across several countries, RupeeRedee’s Artem says the startup offers loans at industry-competitive rates — between 18 percent and 36 percent — and follows all RBI guidelines.

RupeeRedee makes its revenue on the interest rates, as most lenders do. It broke even in the first year of operations, and is currently profitable.

"We serve 50-60 percent repeat customers every month, and our target audience is primarily millennials with an active PAN card. The majority of our clients are lower-salaried individuals from Tier 2 to Tier 3 cities," Artem says.

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