Paytm has announced a collaboration with Shriram Finance, a non-banking financial company (NBFC), to extend financial services to its users. This partnership includes offering loan products and other Shriram Finance products on Paytm’s platform.
What Happened? Paytm’s extensive reach and technological framework will integrate with Shriram Finance’s loan expertise and significant rural footprint in India. This strategy leverages Paytm’s leadership as a loan service provider, focusing on compliance and loan quality.
Initially, Paytm’s merchant network will have access to loans from Shriram Finance, which will eventually be extended to consumer loans.
Umesh Revankar, Executive Vice Chairman of Shriram Finance, acknowledged the growing demand for retail credit in India, especially from young, digitally savvy consumers comfortable with mobile transactions. He emphasized Shriram Finance’s commitment to serving underserved populations and saw the collaboration with Paytm as an opportunity to do so.
Paytm CEO Vijay Shekhar Sharma voiced his satisfaction with the partnership, viewing it as a way to extend credit to small merchants and entrepreneurs across India.
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Shriram Finance manages assets worth ₹1,85,683 crore and has a wide network of 2,922 branches and 64,052 employees.
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