Walmart-backed fintech giant PhonePe is poised to venture into the consumer lending domain, with plans to unveil credit products on its platform as early as January next year. In the initial phase, PhonePe is set to operate as a distributor for personal loans, finalizing integration with five lenders, including both traditional banks and non-banking finance companies.
Over the next six to seven months, PhonePe aims to roll out a diverse range of consumer credit products. The company is strategically enhancing its underwriting capabilities to assess customer alignment with the lender’s criteria. The introduction of these credit offerings will be a gradual process, according to sources cited in an ET report.
While contemplating the potential for a credit line offering in the upcoming year, PhonePe presently views it as a non-immediate priority. The current internal focus is on monetizing its user base and leveraging its robust distribution capabilities, intending to replicate the success achieved in insurance distribution.
PhonePe has solidified its position as a distribution platform for various insurance products, spanning life, health, motor, and car insurance. Through collaborations with partners like Acko, the app facilitates users to make monthly subscription payments via the Unified Payments Interface (UPI).
Earlier this year, PhonePe expanded its horizons into the merchant lending space. The fintech decacorn introduced a merchant lending marketplace, enabling banks and NBFCs to extend credit to its vast base of 35 million merchants.
The platform has been diversifying its product offerings through various launches, including the recent unveiling of the Indus Appstore Developer Platform. This platform empowers Android app developers to compete with industry giants like Apple and Google. The mobile app marketplace, Indus Appstore, allows developers to upload apps using its self-serve developer platform.
In the financial year ending March 31, 2023, PhonePe reported a revenue of INR 2,914 Cr, marking a remarkable 77% increase from INR 1,646 Cr in FY22. The surge in revenue is attributed to the substantial growth in money transfers, mobile recharges, and bill payments, as stated in a company statement.
