NEW KIDS ON THE BLOCK

BIG NAMES LIKE THE POONAWALLAS, PIRAMALS, AND GODREJS ARE MAKING AN AMBITIOUS PLAY IN INDIA’S RETAIL CREDIT SPACE, USING ORGANIC AS WELL AS INORGANIC ROUTES. BUT EXECUTING THEIR PLANS IN THE FRAGMENTED SEGMENT WILL BE A CHALLENGE

- ANAND ADHIKARI

YOUNG TURKS, AGGRESSIVE APPROACH

The new-age financial services start-ups are well stocked with capital and group entities’ support

The segment’s players are eyeing inorganic growth routes, as well as scouting for distressed portfolios

They are riding piggyback on their group’s customer base, especially suppliers and dealers

They are also targeting earlier untapped smaller geographies

Their low-cost operating model, using technology and fintech partnerships, is proving advantageous

They are targeting new product segments like used cars, loans to professionals, and micro-loans for growth

TWO DAYS BEFORE the first nationwide lockdown in March 2020, the Godrej Group, best known for its locks and soaps, saw its first employee fall ill as it was finalising its financial services venture. Soon, everybody was asked to work from home. As things came to a halt, its non-banking finance company (NBFC) licence was also delayed. “We finally got started when the second wave struck. We have had nothing but adventures [since then],” says a beaming Manish Shah, MD & CEO of Godrej Capital, from the group’s headquarters in Vikhroli in suburban Mumbai.