PB Fintech, the owner of Policybazaar and Paisabazaar said on December 13 that it will acquire Gurugram-based loan marketplace MyLoanCare for Rs 40.41 crore.
The acquisition will be completed in six months in two stages, PB Fintech said in an exchange filing. In the first tranche, it will acquire 25 percent of shares of MyLoanCare and will increase the stake further to 70.10 percent through primary allotment.
Established in 2013, MyLoanCare allows customers to compare various loan products and interest rates, similar to what PB Fintech’s Paisabazaar does. The company’s turnover in FY21 stood at Rs 7 crore as compared to Rs 11 crore in the previous FY.
According to MyLoanCare, three million customers use its platform every month and loans worth Rs 5,000 crore have been disbursed through the platform. The company has 30 lending partners.
Paisabazaar on the other hand enjoys a 51.4 percent market share in the credit marketplace space and has 54 lending partners. In FY21, loans worth Rs 2,916 crore were disbursed through the platform.
The company has also established a wholly-owned subsidiary to become an account aggregator, which will supplement the lending marketplace business.
"The incorporation will leverage the facility without external dependency on another Account Aggregators for information gathering, cost-saving/revenue housing and offer seamless solutions," the filing said.
Account aggregation aims to solve this issue by making sharing of data easy by providing a single platform for the exchange of all information. A new class of licensed NBFCs approved by the RBI in 2016, AA is essentially a technology service provider that shares a customer's information with institutions that seek to use this data.
Simply put, it does the job of sharing your data among the respective entities, on your behalf and with your consent. This is done digitally and ensures the authenticity of the documents shared as they are sourced directly from the financial entities.
With an in-house AA platform, PB Fintech will be able to allow faster exchange of information among banks and NBFCs and customers seeking loans. The company said in the exchange filing that it will apply to the Reserve Bank of India (RBI) for the AA license and it expects the subsidiary to be set up in nine months’ time.
“The proposed wholly owned subsidiary company to be incorporated in India shall carry on the business of an ‘Account Aggregator’, thereby undertaking the activity of retrieving or collecting financial information pertaining to its customers and consolidating, organizing and presenting such information to the customer or any other person as per the instructions of the customer (consent based infrastructure),” the announcement further read.
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