Paytm on 21 November 2017 said it has bought an undisclosed stake in Urja Money Pvt. Ltd, which evaluates creditworthiness of people seeking loans to buy two-wheelers. Paytm will use Urja’s proprietary CreditMate technology to create a loan management system in collaboration with lending partners.
The latest investment is part of Paytm’s efforts to create consumer credit products, and a likely move towards offering longer tenure loans of large ticket sizes. Last week, the company joined hands with ICICI Bank Ltd to offer Paytm users interest-free loans of up Rs20,000 for a tenure of up to 45 days. Paytm already offers working capital loans to merchants on its payments platform, a product it introduced last year. All such products are collateral-free and use transaction data on Paytm to assess the creditworthiness of a borrower.
About 65% of CreditMate customers are already Paytm users, which speaks to ubiquity of Paytm usage and the unique opportunities we have to expand availability of credit in our country. Over time, we will use CreditMate’s platforms to make credit available both offline and online to our users.”