PhonePe, the digital payments unicorn backed by Walmart, is making significant strides into the secured lending space with the launch of lending products in collaboration with banks, non-banking financial companies (NBFCs), and fintech firms.
Expanding its already extensive user base, which boasts more than 535 million registered users, PhonePe aims to offer credit solutions tailored to meet various financial needs. These lending solutions cover six major categories, including mutual funds, gold loans, bike loans, car loans, home loans, loans against property, and education loans.
In a bid to offer a diverse array of lending products, PhonePe has partnered with 15 NBFCs and fintech companies, including prominent names like Tata Capital, L&T Finance, Hero FinCorp, and Muthoot Fincorp, among others. The company plans to further expand its partner network to 25 by the next quarter, enhancing accessibility to these lending services through its existing ‘Loan’ section within the PhonePe app.
Hemant Gala, CEO of PhonePe Lending, expressed enthusiasm about the launch, highlighting its potential to connect lenders with millions of customers nationwide. He emphasized the pivotal role of digitization in streamlining secured loan journeys, a trend witnessing rapid adoption among consumers.
This strategic move follows PhonePe’s continued dominance in the unified payments interface (UPI) ecosystem, maintaining a market share of 48.87% in April 2024. Bolstered by its robust performance, PhonePe recorded a revenue of INR 2,914 crore in FY23, marking a substantial 77% increase from the previous fiscal year.
The foray into secured lending aligns with PhonePe’s broader strategy of diversifying its product portfolio and enhancing its ecosystem offerings. Notably, the company ventured into merchant lending space last year and consolidated its position as a distribution platform for insurance products. Additionally, PhonePe expanded its presence in the point-of-sale (POS) device segment and ventured into stock broking through its subsidiary PhonePe Wealth Broking.
Beyond domestic initiatives, PhonePe is also spearheading efforts to internationalize India’s payments infrastructure by extending its UPI offerings to countries like Sri Lanka, UAE, and Singapore.
As PhonePe continues to innovate and diversify its offerings, its foray into secured lending represents a significant step toward empowering users financially while reinforcing its position as a leading player in the fintech landscape.
