Fintech major PhonePe on June 23 launched its merchant lending services on its platform allowing banks and non-banking financial companies (NBFCs) to provide access to credit to its 35 million micro, small and medium enterprises (MSME) merchants.
“Promoting financial inclusion is at the core of PhonePe’s mission. We are excited to launch merchant lending on our platform using the Marketplace Model, providing SMEs and MSMEs with access to organised credit and enabling their growth," said Hemant Gala, Vice President of Financial Services.
Moneycontrol was the first to report the developments in April when PhonePe kicked off its digital lending pilots for merchants, and the company said that it will launch it officially soon, a move that will be a shot in the arm for the fintech decacorn putting it in direct competition in the lending space with its largest rival Paytm.
"We are currently integrated with three partners and there are 3-4 more partners we are working with to make it a comprehensive marketplace for lenders. The loans range from 15K to 5L, depending on the merchant," the firm said.
While PhonePe is not looking to get an NBFC licence now, the firm will run the business with bank partnerships.
"We are not starting an NBFC business of our own. We have also hit an annualised disbursal run rate of Rs 1,000 crore established within three months of launch," cofounder and CEO Sameer Nigam said in an interaction with Moneycontrol in April.
PhonePe has so far facilitated the disbursal of over 20,000 loans through its NBFC partners since May 2023.
PhonePe on June 14 also launched its payment gateway in an earnest attempt to serve MSME merchants across the country.
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