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Logistics startup Porter to offer insurance, vehicle loans to drivers through partnerships

Earnings data generated by the firm to help NBFCs and insurtechs underwrite loans. The company is looking to get into the used vehicle facilitation market to offer finance options for trucks and LCVs, co-founder and CEO Pranav Goel, has said

January 17, 2023 / 09:25 AM IST
Porter co-founder and CEO Pranav Goel.

Porter co-founder and CEO Pranav Goel.

Porter, a logistics management startup backed by Sequoia and Tiger Global, has partnered with a few insurance firms and non-banking financial companies (NBFCs) to offer short-term loans and vehicle insurance to its driver partners.

“Every vehicle owner needs vehicle insurance each year and we realised that these drivers partners don't have access to formal capital for amounts like Rs 10,000 or Rs 15,000 per month, that’s when we decided to facilitate ease of financing and insurance through our platform,” Pranav Goel, co-founder, and chief executive officer at Porter, said in an interaction with Moneycontrol.

The main challenge is that banks and NBFCs do not have enough data to do background checks to offer loans. However, Porter’s platform generates a lot of earnings data that helps NBFCs to underwrite loans, Goel said.

For insurance and short-term loans, Porter has tied up with insurtech firms Zopper and Assuretech and with NBFCs like KarmaLife and LenDenclub, Goel said.