E-commerce giant Snapdeal on Tuesday made a foray into the financial services sector by acquiring a majority stake in digital financial products platform, RupeePower, for an undisclosed amount.
“The deal is aimed at helping consumers who face difficulty while deciding and purchasing financial products/services. We have brought RupeePower into our family to help solve distribution challenges of the financial services ecosystem and make it more inclusive,” Snapdeal co-founder and CEO Kunal Bahl told reporters.
The company, however, did not disclose the financial details of the deal.
The domestic online financial services market is pegged at about Rs.4,500 crore.
Founded in 2011, RupeePower offers a digital distribution platform for loans, credit cards and other personal finance products. The company at present employs 40 people.
It planned to increase the headcount to about 200 people over the next one year, its founder and CEO Tejasvi Mohanram said.
RupeePower counts State Bank of India, ICICI Bank and Bajaj Finserv, among its partners.
Mr. Bahl said the platform enabled credit disbursal worth Rs.1,500 crore in 2014-15. “In the next 24 months, we expect this number to grow to about Rs.6,000 crore ($1 billion),” he added.
Asked about company’s plans to raise funds, Mr. Bahl said the firm was well capitalised for the next couple of years, and would not raise money just because it was 'fashionable'.
